Boston Charity Convictions - Quick Reminder, Quick Glimpse

By Bill West

As Andy Cochran notes in his post below, Care International, Inc. officials have just been convicted in US District Court in Boston of Federal fraud and related charges. The crux of the case, as presented by the Government, stemmed from the officials of the so-called charity concealing material facts from the US Government, primarily the Internal Revenue Service, to obtain tax exempt status for the organization, concerning the background and origins of the organization itself. That background related to its origins in a prior jihadist support group and the charity itself was involved in such support activities.

On the heels of the HLF and Liberty 7 mistrials in Dallas and Miami, respectively, this win for the Government is significant. It also reinforces the "Al Capone" investigative and prosecution theory of attacking significant threat organizations, be they criminal or terrorist, with any viable violations that are uncovered, even if those violations might otherwise be considered "second tier" charges. That tested concept, quite simply, works.

The prosecution victory also bodes well for other investigators and prosecutors who may be looking closely, or at least considering looking closely, at similarly situated organizations that perhaps enjoy tax exempt status and perhaps have a hidden background that was concealed on various official forms and, like Care International, had that background been known to the IRS, the tax exempt status might not have been granted. The ghost of Al Capone may yet be lurking over other shoulders.

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