The Clinton Foundation
Fraud and corruption in Epic proportions!
Dr. A. H. Krieg
Why the IRS has taken no action against the Clinton Foundation is based on the identical reasoning why FBI Director Comey did not indict Hillary for the E-mail issue, why Loretta Lynch did not indict on the pay for play, graft Clinton Foundation issues, and why she did not indict the IRS Director Koskinen or Lois Lerner on felony lying charges, the entire government is corrupt. Too large to fail or indict would be Hillary Clinton, GM, Chrysler, AIG, and small enough to prosecute would be Martha Stewart, and Marine Major Jason Brezler and General David Petraeus. We are now surely a banana republic!
Comey, Lynch, Koskinen & Lerner should be fired without pensions!
Some four moths ago I penned a one-page synopsis titled “How the Clinton Foundation Works”. In that takedown I outlined eleven points of basic function that seemed to me to contradict honest charity operation which has always been Bill, Hillary’s and Chelsea Clinton’s claim. So that you don’t have to look this up let me briefly re-cap.
- They created two foreign bundling operations one in Norway the other in Canada, where funds from foreign donors were deposited. Norway and Canada were chosen because both nations do not report to foreign governments or bureaucracies about financial transfers. (To the IRS)
- Hillary while secretary of State had 18 mobile devices and 5 laptops as well as multiple servers. Obviously this was done to obscure State Department personnel from disclosure of relevant Clinton actions pertaining to Foundation financial transfers. Multiple Clinton’s aids were on the payroll of the State Department as well as the Clinton Foundation, in violation of federal laws. (Sworn testimony by Hillary Clinton (“I had only one device”)
- Bill gave speeches in Russia, China, Australia, Qatar, UAE, Saudi Arabia, Thailand, Norway, Kuwait, & Algeria and others that Hillary visited as Secretary of State all of which contributed to the Clinton Foundations, from $ 200,000 to $ 850,000 each. (Pay to play or graft)
- Foreign governments, dignitaries, kings, sultans and princes all contributed cash to the Clinton foundations or subsidiaries of them, in most cases not knowing what the funds actually were to be applied to. (No one gives away money expecting nothing in return!)
For the sake of clarity, let’s all understand; that there were $ 151 billion in brokered deals issued to 16 nations all of which made contributions to the Clinton Foundation. There were $165 billion of arms sales made to nations that made contributions to the Clinton Foundation. There were $163 billion in arms contracts granted to American military contractors that made contributions to the Clinton Foundation. This is called pay to play or graft!
Let’s take one of the most egregious examples Rosatom and how they became the world’s larges uranium mining operation. Rosatom had taken over Canadian Uranium One from 2009 to 2013 according to Canadian records. Cash donations from Rosatom and Uranium One flowed into the Clinton Foundation to the tune of $ 2.35 million. As Rosatom gained control of Uranium One and because uranium is a strategic asset and owns most of US uranium mining operations, the US State Department had to sign off on the deal Mrs. Clinton as Secretary of State singed off, and Bill gave a speech in St. Petersburg Russia for a fee of $ 500.000. (Pravda) (Frank Giustra a Canadian was the go-between) [Total funds to the Clinton Foundation on just this transaction was $ 2.85 million] Other large donors like Lebanese businessman Gilbert Chagoury who was denied entry into the US due to links to past terrorists gave $ 460,000 to the Foundation. This is called pay to play or graft!
More than half of the people outside government who met with Hillary Clinton as Secretary of State were contributors to the Clinton Foundation (AP Aug 23, 16) 85 out of 154 from private interests donated as much as $156 million to the Foundation. This is called pay to play or graft!
Charles Ortel is the NY analyst that uncovered the GE financial discrepancies that caused the GE stock to crash in 2008. The London Times called “Ortel one of the finest analysts on the planet”. Ortel has spent the last 18 moths analyzing the Clinton Foundation and his preliminary findings are startling. Let me be frank he went over public records, charities, federal and state tax returns, tax filings as well as donor disclosures, just about everything you can get your hands on. His conclusion is; “This is simply tax fraud.”
As in any tax evasion scheme it is purposefully confusing and instrumental in corporate structure of the Foundation, which has numerous offshoots such as the Clinton Healthcare Initiative, and the Clinton Global Initiative as well as foreign subsidiaries and of course the bundling operations in Canada and Norway. The real issue that came to light is that the donors in fact rarely had any idea what their funds were being used for, or what the Foundation did with their contributions. Funds that per example went from Australia to Norway where they were bundled with other donations, sent to Canada and from there to Little Rock AR and are virtually impossible to individually trace. Several individual donors said they did not know what was done with donated funds. It is also revealed IRS information that the Foundation failed to file tax returns for five years and then retroactively filed without a fine, just you try that. In 2015 the Foundation was forced to issue corrected tax filings for several years, to correct donation errors. The fact is that according to experts on finance, the Clinton Foundation is, “the largest unprosecuted charity fraud ever” [C. Ortel] The Clinton Foundation has never ever been audited by any independent auditors.
American law on charitable foundations is clear; they must give 10% of collected annual funds to charity. What a deal! The maximum American federal income tax rate which, with the well over $ 100 million collected by the Clinton Foundation is 39.6% and the Clinton’s live in NY state that has an 8.82% income tax for a total of 48.42% income tax, so they pay 38.42% less tax. But it gets better because they do not pay any taxes on the residual income of the Foundation (from 2013 forward Bill Hillary & Chelsea Clinton Foundation) [501 (c) (3) Little Rock AR] total asset value of the Foundation is estimated at $2 billion.
An examination of 2013 is instrumental in gaining an understanding of the operational management of the Foundation. They took in just over $ 140 million in grants and pledges but spent only $ 9 million on direct aid, actually under the 10% as required by law. The majority of spending went to, administration, travel, salaries, (a staff of over 300) bonuses, and payouts to hangers on and family friends. The Foundation has the appearance of a huge slush fund for the Hillary for president campaign among other issues. Charity Navigator refuses to give the Foundation a rating and has placed it on its “watch list” of “problematic charities”. Sunlight Foundation’s Bill Allison goes further stating, “It seems like the Clinton Foundation operates like a slush fund for the Clinton’s”.
Executive summary of Ortel report:
Understanding the Clinton Foundation Public record in proper context; 1997 to present:
From 1997 forward, the Clinton Foundation appears to be a rogue charity that has neither been organized nor operated lawfully from inception to date. To be exact, the Foundation has never been authorized as anything except a presidential archive and research facility based in Little Rock Arkansas. Moreover independent trustees have never controlled its operations and nor have independent accountants ever audited its resulting documentation. The basic structure upon which the entire Foundation sits is bogus. The various Clinton Foundations and their ancillary organizations, domestic as well as foreign, illegally departed from their structural organizational charters and IRS authorized missions the day Bill Clinton departed the White House and stole $200,000 of furniture, artwork and china from the Nation’s House. It goes without saying that the Foundation web sites purposefully omit and obscure information relating to the operational structure as well as management and trustees thereof.
Many questions are impossible to answer because corroborative information likes board minutes, trustee reports, donor solicitations presentations, and after-action reports to donors, management reports, accountant’s audits, internal communications, and inter-corporate communications between ancillary organizations are all unavailable for scrutiny. Orel’s basic reports therefore only include such items as were available by forced IRS law from tax-exempt filing organizations within US federal jurisdiction. The basic report covers some 40 exhibits from October 23 1997 (date of foundation) to 2011 when attempts were made to reorganize the Clinton Foundation. The documents reviewed “demonstrate beyond doubt that the Clinton Charity Network was neither organized nor operated lawfully”.
IRS regulations clearly state, non-profit corporations must pass both an “organizational test” and an “operational test” in order to retain exemption from income taxes.
The dual test: Organizational and Operational:
- IRC 501 (c) (3) requires an organization to be both “organized” and “operated” exclusively for one or more IRC 501 (c) (3) purposes. If the organization fails either the organizational test or the operational test, it is not exempt. Reg. 1.501 (c)(3)-1 (a)(1)
- The organizational test concerns the organization’s articles of organization or comparable governing documents. The operational test concerns the organization’s activities. A deficiency in an organization’s governing documents cannot be cured by the organization’s actual operations. Likewise, an organization whose activates are not within the statute will not qualify for exemption by virtue of a well-written charter. Reg. 1.5021 (c) (3) (1) (iv)
The Clinton Foundation fails to pass both the operational as well as the organizational tests for a charity. The penalties are severe. Revocation of tax exempt status retroactively to day one, in this case 1997. They would be forced to pay income taxes based on federal and state rates of residence NY State (combined) 48.42% including any and all earnings, profits, from 1997 to present day plus penalties and fines. All American citizens who took tax deductions on contributions would have to re-file returns and pay taxes on deductions taken. Massive criminal and civil sanctions would ensue. Civil actions by contributors would be eminent.
Beginning in September www.charlesortel.com will begin releases of detailed extensive analysis about the Clinton Foundation. Don’t miss it!