By Jerome Corsi, WND
NEW YORK – Along with filing financial reports filled with errors and misstatements, “Big Four” accounting firm PricewaterhouseCoopers neglected to verify whether the Clinton Foundation obtained tax-exempt status for its various sub-entities, including its AIDS charity, contends respected Wall Street analyst Charles Ortel.
As WND has reported, Ortel’s six-month investigation indicates the Clintons have diverted tens millions of dollars donated for charitable purposes to the personal enrichment of themselves and their close associates.
He says PWC neglected to exercise due diligence in fulfilling its professional responsibilities in conducting even the most basic inquiries required of an honest audit.
PWC, he says, failed to inquire whether the Clinton Foundation has applied for and received duly issued IRS tax-exempt determinations for its various sub-entities and activities, including fighting HIV/AIDS globally under the auspices of the Clinton Health Access Initiative Inc., also known as CHAI.
He notes that there as an “Old CHAI” and a “New CHAI” that was created after Hillary Clinton became secretary of state. In addition, the foundation launched the Clinton Global Initiative and numerous foreign funds and endowments created, for instance, in conjunction with George W. Bush to raise money for the victims of Hurricane Katrina in 2005 and the 2010 earthquake in Haiti.
In his draft report, Ortel says PWC’s “work product concerning the Clinton Foundation in 2013 is riddled with errors.”
Ortel documents “each material deficiency in appropriate detail,” but he also poses an important preliminary question: “Did PWC, as part of its 2013 audit, establish that under applicable laws and regulations that the Clinton Foundation, including its various sub-entities and numerous charitable endeavors, many of which have been foreign based, is duly constituted as a tax-exempt organization?”
PricewaterhouseCoopers has not replied to numerous requests from WND, by email and by telephone, to comment. Ortel also asked PWC a number of questions based on his investigation and has received no reply.
Ortel insists the question of whether the Clinton Foundation is validly constituted as a U.S. tax-exempt organization is “fundamental to any analysis of its financial statements.
If it is not validly constituted, he says, “the organization and its directors face substantial financial liabilities as well as other penalties that would severely impact, even bankrupt numerous parties.”
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“Moreover, if the Clinton Foundation is not validly constituted as a U.S. tax-exempt organization, the legal implications for the board of directors may be severe,” Ortel writes.
In addition, there would be severe “tax consequences for those who donated to what may be a fraudulent charity, including thousands of ordinary individuals and families worldwide, as well as for wealth foundations, foreign donors, foreign governments, and possibly even the U.S. government for all contributions the U.S. government entities have made to the Clinton Foundation since inception.”
Tax-exempt purpose: To build Clinton library
As WND has previously reported, the Clinton Foundation’s initial IRS tax-exemption determination was obtained for the purpose of building the Clinton presidential library
While the Clinton Foundation’s IRS determination letter dating back to the foundation’s creation in 2001 is not archived on the Clinton Foundation website, its 2002 IRS Form 990, Part III filing makes clear the organization’s “primary exempt purpose” in narrowly defined terms: “to design, construct, and initially endow a presidential archival depository to house and preserve the books, correspondence, documents, papers, pictures, and other memorability of President Clinton.”
WND has also reported that the idea to morph the purpose of the Clinton Foundation from building the Clinton presidential library to fighting HIV/AIDS worldwide arose from a conversation Bill Clinton had with Nelson Mandela, which is recounted in Clinton’s 2007 bestselling book “Giving: How Each of Us Can Change the World.”
While the discussion led in 2002 to the creation of the Clinton Health Access Initiative Inc., it is not clear the Clinton Foundation sought or received a new tax-exempt determination letter from the IRS to expand the foundation’s purpose from building the Clinton presidential library to fighting HIV/AIDS worldwide.
“The Clinton Foundation has yet to produce definitive and compelling evidence that it was ever authorized appropriately by the IRS to do more than serve as an archival records repository based in Little Rock, Arkansas for the papers and related memorabilia of President Bill Clinton,” Ortel charges.
“It is true that an application to form a companion entity called Clinton Health Access Initiative, Inc. (“New CHAI”) as a tax-exempt organization was approved by the IRS on 15 March 2010,” Ortel acknowledges. “However, the application posted on the Attorney General of New York State Charity Bureau website is incomplete, false, and misleading, so it is difficult to understand why it was approved, less than three months following its submission on or around 31 December 2009, and whether CHAI can reasonably continue to operate having procured IRS tax-exempt approval fraudulently.”