{"id":23699,"date":"2016-05-25T18:14:39","date_gmt":"2016-05-26T01:14:39","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=23699"},"modified":"2016-05-25T18:14:40","modified_gmt":"2016-05-26T01:14:40","slug":"former-nba-player-indicted-allegedly-stealing-donations-charity-using-money-jewelry-entertainment","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=23699","title":{"rendered":"Former NBA Player Indicted For Allegedly Stealing Donations from Charity, Using Some Money for Jewelry and Entertainment"},"content":{"rendered":"<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><strong>WASHINGTON<\/strong><\/span><\/p>\n<hr \/>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">A federal grand jury sitting in Kansas City, Missouri, returned an indictment Monday, which was unsealed this morning, against a former professional basketball player and representative for the National Basketball Players Association, according to officials.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Jurors charged him with corruptly interfering with the internal revenue laws, conspiracy to commit wire fraud, obstruction of justice and aggravated identity theft, officials allege.<\/span><\/p>\n<figure id=\"attachment_23720\" aria-describedby=\"caption-attachment-23720\" style=\"width: 200px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-23720 size-full\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/05\/200_Kermit_Washington.imgcache.rev1287499579529.web_.jpg\" alt=\"200_Kermit_Washington.imgcache.rev1287499579529.web\" width=\"200\" height=\"231\" \/><figcaption id=\"caption-attachment-23720\" class=\"wp-caption-text\">Kermit Washington<\/figcaption><\/figure>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"> The indictment alleges that <strong>Kermit Alan Washington<\/strong>, 64, used a charity he founded and operated, <strong>Project Contact Africa<\/strong>, to defraud donors, eBay and PayPal and the IRS.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">In order to induce individuals, including former professional athletes, to make donations to Contact Africa, Washington falsely represented that 100 percent of the donations would go to Africa.\u00a0 <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">However, Washington diverted charitable donations from Contact Africa to buy gifts and pay personal expenses, including rent, vacations, jewelry and entertainment.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cIndividuals who use charitable organizations to defraud donors and evade tax obligations inflict substantial harm on every U.S. taxpayer and cause untold damage to well-intentioned charitable endeavors,\u201d said <strong>Acting Assistant Attorney General Caroline Ciraolo.<\/strong>\u00a0 \u201cThe Department is committed to identifying those engaged in such criminal conduct and holding them accountable.\u201d<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cThe federal indictment alleges this former NBA player used his celebrity status to exploit the good intentions of those who donated to a charity he founded, called Project Contact Africa,\u201d said <strong>U.S. Attorney Tammy Dickinson<\/strong>. \u201cAccording to the indictment, Washington profited by diverting hundreds of thousands of dollars in donations that was supposed to benefit a clinic in Africa for needy families and children, but instead bankrolled his own personal spending.\u201d<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">It is alleged that Washington referred professional athletes to <strong>Ron Mix<\/strong>, a former professional football player and an attorney licensed in the state of California, whose practice focused on the filing of workers\u2019 compensation claims on behalf of former professional athletes.\u00a0 <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">In exchange for the referrals, Mix made payments to Contact Africa and claimed those amounts as charitable deductions on his personal tax returns.\u00a0 Upon receipt of these payments, Washington diverted the funds for his own personal benefit.\u00a0 <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Washington filed false individual income tax returns for 2010 through 2013, failing to report the funds he diverted from Contact Africa and false Forms 990-EZ on behalf of Contact Africa..\u00a0 Washington also falsified Contact Africa\u2019s corporate minutes to obstruct the investigation and used the identity of another individual to perpetrate this scheme.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">It is further alleged that Washington conspired with others to defraud eBay and PayPal, customers and donors of Contact Africa by allowing the co-conspirators to use Contact Africa\u2019s name, tax-exempt status and IRS Employee Identification Number with eBay and PayPal so the co-conspirators could avoid substantial listing and registration fees incurred in operating online, for-profit businesses.\u00a0 <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Moreover, customers who made purchases falsely believed that 100 percent of the proceeds from the co-conspirators\u2019 online eBay sales benefited Contact Africa.\u00a0 In exchange for allowing the co-conspirators to use Contact Africa\u2019s tax-exempt status, Washington received payments from the co-conspirators.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Washington was arrested yesterday in Los Angeles and had his initial appearance in U.S. District Court in California. Washington was ordered to surrender his passport and released on bond and must wear a location monitoring device. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">If convicted, Washington is facing more than 40 years in prison.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Washington is presumed innocent unless proven guilty.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Washington played basketball for several\u00a0NBA teams including the LA Lakers and the Boston Celtics, according to published reports.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"> He was drafted by the Lakers in 1973 after graduating from American University. \u00a0He played from 1973 to 1982 and tried to make a comeback with the Golden State Warriors in 1987, but was only on the roster for eight games, according to sports reports.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A federal grand jury sitting in Kansas City, Missouri, returned an indictment Monday, which was unsealed this morning, against a former professional basketball player and representative for the National Basketball Players Association, according to officials.<br \/>\nJurors charged him with corruptly interfering with the internal revenue laws, conspiracy to commit wire fraud, obstruction of justice and aggravated identity theft, officials allege.<\/p>\n","protected":false},"author":1,"featured_media":19638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3],"tags":[2681,2680],"class_list":["post-23699","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-u-s-department-of-justice","tag-charity-fraud","tag-kermit-washington"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Former NBA Player Indicted For Allegedly Stealing Donations from Charity, Using Some Money for Jewelry and Entertainment<\/title>\n<meta name=\"description\" content=\"A federal grand jury sitting in Kansas City, Missouri, returned an indictment Monday, which was unsealed this morning, against a former professional basketball player and representative for the National Basketball Players Association, according to officials. 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