Congresswoman charged with fraud in charity scam

For those absolutely devoid of scruples, charity fraud is the field par excellance, in which you can simultaneously harvest kudos for your humanitarianism and make off with vast bundles of untaxed cash. Convictions for charity fraud are so rare as to be nonexistent, so any criminals operating in other fields of endeavor are incurring unnecessary risks.

Congresswoman charged with fraud in charity scam

Postby admin » Tue Oct 04, 2016 10:03 pm

Congresswoman charged with fraud in charity scam
By Associated Press
July 8, 2016

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Rep. Corrine Brown (D-Fla.) speaks with reporters in August 2015. Photo: AP

JACKSONVILLE, Fla. — US Rep. Corrine Brown of Florida and her chief of staff have been charged with multiple counts of fraud and other federal offenses in a grand jury indictment unsealed Friday after a federal investigation into a fraudulent charity with ties to the congresswoman.

Brown, a 69-year-old Democrat, was to appear later Friday in Jacksonville federal court on charges of mail and wire fraud, conspiracy, obstruction and filing of false tax returns. She has represented a Jacksonville-based congressional district since 1993 — one of the first three African-Americans elected to Congress from Florida since Reconstruction — and is seeking re-election in a newly redrawn district.

The indictment comes after an investigation into the charity One Door for Education Foundation Inc., which federal prosecutors say was purported to give scholarships to poor students but instead filled the coffers of Brown and her associates.

Also charged in the 24-count indictment was Elias “Ronnie” Simmons, 50, of Laurel, Maryland, who has served as Brown’s chief of staff since 1993. It wasn’t immediately clear from court records whether Brown and Simmons had attorneys to represent them.

Earlier this year, One Door president Carla Wiley pleaded guilty to one count of conspiracy to commit wire fraud after it was determined that she had deposited $800,000 into the foundation’s account over four years. Over that time, federal prosecutors say it gave one scholarship for $1,000 and $200 to an unidentified person in Florida, while Wiley transferred herself tens of thousands of dollars.

“Congresswoman Brown and her chief of staff are alleged to have used the congresswoman’s official position to solicit over $800,000 in donations to a supposed charitable organization, only to use that organization as a personal slush fund,” Assistant US Attorney General Leslie Caldwell, chief of the Justice Department’s criminal division, said in a statement.

“Corruption erodes the public’s trust in our entire system of representative government,” Caldwell added.

The indictment says that Brown, Simmons and Wiley “used the vast majority” of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts.

According to the indictment, more than $200,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament, lavish receptions during an annual Washington conference and the use of luxury boxes for a Beyoncé concert and an NFL game between the Washington Redskins and Jacksonville Jaguars.

One Door money was also used for such things as repairs to Brown’s car and vacations to locations such as the Bahamas, Miami Beach and Los Angeles. In addition, House of Representatives money was used to pay a “close family member” of Simmons identified as “Person C” more than $735,000 between 2001 and 2016 for a job in Brown’s office that involved little or no work, according to the indictment. Simmons allegedly benefited from some of that money.

Documents previously obtained by the Associated Press from Orlando Mayor Buddy Dyer’s office show that he received an invitation bearing the seal of the House of Representatives to a July 13, 2013, golf tournament called the “Corrine Brown Invitational.” It was sponsored by the One Door organization and coincided with a freight and rail industry symposium in Jacksonville.

Potential donors attending the tournament received letters from One Door with Brown’s signature and official House seal asking them to give from $125 up to $20,000 to One Door, according to Wiley’s plea agreement.

The invitation said the donations would benefit a scholarship fund for the Jacksonville chapter of the Conference of Minority Transportation Officials and other charities. Authorities say none of the charities received any of the money raised.
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