Charles Ortel is a well-known Wall Street analyst who did extensive research on the Clinton Foundation’s financial statements. The e-mails are very interesting and telling. But Ortel’s work dug into the Clinton Foundation’s legal standing, its paperwork and IRS filings, or lack thereof.
In April 2015, author Jerome Corsi, PhD, published the first of a number of articles in WND, featuring Ortel’s analysis, entitled “Wall Street Analyst Uncovers Clinton Foundation Fraud.” Never mind Hillary’s feverish accusations of a “vast right-wing conspiracy.” The Clinton Foundation is a vast criminal conspiracy that is only now being exposed through WikiLeaks.
In the preface to his 2016 book, “Partners in Crime: The Clintons’ Scheme to Monetize the White House for Personal Profit,” Corsi lays out the case, through Ortel’s research, for how “the Clinton family and their close associates have perpetrated ‘to defraud the general public, enrich themselves and entrench their political influence.”
“Ortel,” Corsi writes, “was the first to elucidate to me the criminal enterprise described by state and federal charity laws as ‘inurement.’ It’s a scheme designed by the operators of philanthropy to defraud donors by diverting their funds from the stated charitable purpose to personally enrich themselves and their associates.”
“The Clintons have advanced a criminal scheme since leaving the White House in 2000 that has enabled them to amass hundreds of millions of dollars in personal net worth, while building a $2 billion empire in the Clinton Foundation and raising an additional $1 billion to fund their political campaigns, including Hillary’s second run for the presidency.
“The victims are countless thousands of honest people who contributed their hard-earned money to what they thought were philanthropic causes, while the Clintons used the Clinton Foundation to exploit for their personal profit impoverished millions in the United States and around the world, victims of earthquakes in India and Haiti, and sufferers of HIV/AIDS in the Third World.
“Copying the World Economic Forum in Davos, Switzerland, the Clintons have held since 2005 the Clinton Global Initiative annual meeting in New York City as a personal public relations show funded by diverting philanthropic contributions. It’s a stage for Bill, Hillary, and Chelsea to promote Leftist ideologies, including climate change and “sustainability.”
Corsi recounts “how the Clinton family has diverted money from the Clinton Foundation to subsidize their global, five-star, luxury travel lifestyle. In the process, the Clintons have partnered with some of the most questionable criminal exploiters of Third World misery and international philanderers who subsidize Bill Clinton’s sex exploits in offshore hideaways known both as “Orgy Island” and, alternately, “Lolita Island.
He also proves “additional evidence to support the charges of ‘pay-to-play’ offenses commonly known as ‘bribery.’
Thanks to Peter Schweizer’s book, Clinton Cash, he advances the argument that “the Clintons are also guilty of the crime of inurement, the diversion of charitable funds for the Clinton’s personal profit, as well as for the financial gain of top aides and associates, including Doug Band, Ira Magaziner, Cheryl Mills, and Hillary Hand-Maiden, Human Abedin.”
Along with discussing the well-known Clinton scams, he provides a technical analysis of the Clinton Foundation’s accounting fraud and a recounting of the organization’s history of lying to federal and state regulators.
“The sordid tale,” he writes in the Preface, “includes suspicion of Enron-like fraudulent accounting practices by none less than ‘Big Four’ accounting firm PricewaterhouseCoopers.” Bill Clinton created “shell corporations” and “pass-through” bank accounts to hide millions of dollars he passed through secret corporations largely unknown to the American public, thinly disguised by a creative use of his initials to conjure up WJC LLC, WJC Investments, and WJC International Investments.
“The shell corporations also turned out to be convenient hiding places for the stock-option and percentage-participation side deals Bill Clinton cut in the process of providing favors to Clinton Foundation donors, including access to his wife via her private e-mail server for favorable public policy decisions at the State Department.”
Corsi reminds us that the day before Clinton left the White House, on Jan. 20, 2001, “Robert Ray, the head of the Office of Independent Counsel who had been investigating whether to charge Clinton with various crimes including perjury, reached a settlement with Clinton under which Clinton agreed he had lied under oath in the Paula Jones sexual misconduct case about his sexual affair with Monica Lewinsky.”
Clinton accepted a five-year suspension of his law license in exchange for avoiding criminal prosecution. On Jan. 19, 2001, in Pulaski County, Arkansas, where Clinton faced a trial after he left office on charges brought by a bar committee that he was unfit to practice law, “a circuit court judge accepted a $25,000 fine Bill Clinton paid to the Arkansas Bar Association in lieu of disbarment for having lied under oath that he ‘did not have sex with that woman, Monica Lewinsky.’”
Corsi tells us that the Associated Press reported that the Clintons faced legal bills possibly as high as $10 million, incurred in defending themselves in Whitewater and other scandals. But the AP also reported that Hillary had received an $8 million book advance in December 200 for the 2003 publication of her memoirs, Living History.
“PolitiFact pointed out that in 1999, the Clintons bought a five-bedroom home in Chappaqua, N.Y., for $1.7 million. Then, in December 2000, just as they were leaving the White House, they bought a seven-bedroom house near Embassy Row [which Hillary named “White Haven”] in Washington, D.C., for a closing price of $2.85 million, on which they put” down $855,000.”
The author continues that “Forbes reporter Agustino Fontevecchia puzzled over how Bill and Hillary Clinton, who ‘left the White House essentially broke in 2001,’ managed to make what he estimates to be $230 million ‘over the next 14 years through speaking engagements, book deals and consulting gigs. To our own astonishment,’ he wrote, speaking for himself and fellow staff writer Dan Alexander, ‘their latest public disclosure lists a maximum of $53 million in assets [we valued them at $45 million].’
“The Clintons made it crystal clear that despite disclosure requirements by the Federal Election Commission and the Office of Government Ethics, and even adding voluntarily revealed tax filings, the relationship between money and power remains fraught with obscurity. To a certain extent, financial transparency is an illusion in Washington. Leaving the highest offices a public servant can aspire to, such as the Presidency or the State Department, can be exceptionally fruitful.”
“Dan Alexander himself documented that since the Clintons left the White House in 2001, they have earned more than $250 million, with Forbes estimating their combined net worth is $45 million. ‘Where did all the money go?’ he asked.”
Before the Clintons left the White House, they took some souvenirs with them. “In February 2002, at the conclusion of a year-long investigation, the House Government Reform Committee concluded that the Clintons took $360,000 worth of large gifts [silver, china, vases, etc.] with them when they left the White House in January 2001.
The Clinton Foundation started out life, after the White House, as a modest non-profit foundation authorized only to accept tax-deductible contributions to build the William Jefferson Clinton Library (and Museum) in Little Rock, Ark. When Nelson Mandela inspired Clinton to begin his own charitable organization to take donations to raise money for AIDS/HIV research, Corsi tells us, “no new Form 1023 application was sent to inform the IRS of a change in organizational purpose. Not being notified, the IRS did not revise the original determination letter of write a new one to add HIV/AIDS as an additional purpose for which the foundation is allowed to solicit tax-deductible charitable contributions.”
“Through this critical period of time [2002-2003, during which the Clinton Foundation was still officially named the William J. Clinton Presidential Foundation], when the foundation was transitioning to being an HIV/AIDS health powerhouse internationally, its auditor remained the relatively small, regional accounting firm BKD, headquartered in Little Rock, Ark.
“Remarkably, the Clinton Foundation through the end of 2015 still fails to list on its website a complete set of audited financial statements and IRS Tax Form 990s from inception in 1997 through 2004. From 2002 through 2004, the Clinton HIV/AIDS program operated under the title Clinton HIV/AIDS Initiative, or CHAI.
“A copy of the BKD 2004 audit for the William J. Clinton Presidential Foundation, Inc., was found on the Massachusetts Attorney General’s website for searching documentation by submitted by non-profit organizations and charities registered in the state. At the end of 2015, this document was not archived for public view on the Clinton Foundation website.
“The BKD 2004 audit did not restrict the Clinton Foundation to the purpose of building the Clinton library. ‘The mission of the William J. Clinton Foundation currently focuses its work in five critical areas,’ the BKD audit states in a paragraph titled, ‘Nature of Operations.’
“The five areas specified were: (1) economic empowerment of poor people; (2) racial, ethnic, and religious reconciliation; (3) health security, specifically combating AIDS; (4) leadership development; and (5) citizen service.
“BKD specified the foundation had $44, 529,126 in revenue from contributions in 2003 and $61,774,446 in 2004 but failed to provide any detail on where the contributions originated. The largest expenditure listed for the year ending Dec. 31, 2004, was $43,522,300 as a grant or transfer to the National Archives, an expenditure not related to fighting HIV/AIDS, but to building the Clinton presidential library.
Supposedly, the Clintons would argue that the contributions had gone to their original purpose, of building the library. Over $100 million – to build a library?
“A separate 2004 Annual Report for the William J. Clinton Foundation (published dropping the word ‘Presidential’ from the foundation’s title), explained the foundation’s HIV/AIDS accomplishments:
Expanded the Clinton HIV/AIDS Initiative (CHAI) into a number of new partner countries in the Caribbean, Africa, Asia, and Eastern Europe. Together, CHAI’s partner countries represent more than 33 percent of all HIV/AIDS cases in Africa, 95 percent of all cases in the Caribbean, and 85 percent of cases in Asia. CHAI helps its partner countries plan and implement large-scale integrated prevention, care and treatment programs by providing technical assistance, mobilizing financial and human resources, negotiating antiretroviral drug agreements and facilitating the sharing of best practices.
“The financial summary in this document broke out the contributions for the foundation for 2004 as $5,747,324 and the contributions for the AIDS/HIV initiative at $4,077,122 for a total 2004 contribution of $61,744,446. Again, no information as to whether the contributions came from foreign governments or individuals was included in the report.
“An IRS Tax Form 990 for the Clinton HIV/AIDS Initiative, Inc., was also found on the Massachusetts charities website. The form was separate from an IRS Tax Form 990 filed for the William J. Clinton Presidential Foundation for 2004. The 2004 Form 990 filed for CHAI listed total contributions for the year at $5,863,349, a number that differed from the financials presented in the 2004 annual report. The major expenditures were listed for travel, $2,369,202; consulting fees, $1,475,875; and compensation of officers and directors, plus salaries and wages, listed at $1,173,182.
“What this 2004 CHAI Form 990 makes clear is that combating HIV/AIDS was not a major 2004 expense. Ira Magaziner is not listed in this Form 990 as being among the CHAI directors or officers receiving compensation.
“The available records of Clinton Foundation audited financials and IRS Tax Form 990 reporting for the years through 2009 strongly suggest Bill Clinton impulsively seized the Mandela suggestion to morph the Clinton Foundation into a new, special purpose, somehow deciding that the millions raised and spent did not need to be documented in audited financial statements or reported to regulators. For law enforcement investigators experienced with charitable organization audit and regulatory reporting requirements, these types of failures to record and report are clear signs of financial fraud.
“After Ortel began publishing on his website his various analyses of the Clinton Foundation, a second IRS Form 1023, dated Aug. 9, 2010, and a second IRS determination letter dated Oct. 6, 2010, suddenly appeared on the Clinton website. Both were filed not by the William J. Clinton Presidential Foundation under any of the various names the organization has operated since inception, but under the auspices of the Clinton Global Initiative, Inc., or CGI, Inc.
“Interestingly, the IRS determination letter makes it clear the IRS was granting tax-exempt authority to CGI, Inc., but the letter was open-ended, failing to specify any particular charitable purpose for which the corporation was allowed to solicit tax-deductible contributions.”
Eventually, CGI organized and reorganized under a malleable agreement between Barack Obama and Hillary Clinton before he would appoint her to be the Secretary of State and after which, he would turn a blind eye to the many-tentacled Clinton Foundations acts of inurement.
Corsi’s book is food for financial buffs looking for the tangible goods on the Clintons. He spells it all out in IRS forms, shell corporations, and pass through accounts. Pass-through meaning Clinton would deposit a specific amount of money from an unspecified source into the account and then check it out again to another shell corporation in the cluster, to then be distributed to whomever, wherever.
At the same time the Clintons were fighting off these charges of fraud, Obama’s IRS was chasing after the dangerous Tea Parties and their non-profit organizational status. They accused the Tea Parties of being political action committees disguised as non-profits.
Hillary has unbelievable nerve in everything she does. She was a fraud in Arkansas, she was a fraud in her husband’s White House. She was a fraud in the Senate and a fraud at the State Department. Nothing has changed. Now she is a fraud running for President of the United States.
How stupid does America have to be to even think about voting for this abusive, foul-mouthed, lying, cheating harridan? We’re better informed this time around, fortunately. Corsi’s suggestion is that if you’ve donated money to one of the Clinton Foundation’s charities, to contact your state attorney general and file a formal complaint against the Clinton Foundation.
Read Corsi’s book, Partners in Crime, and you’ll have all the ammunition you need.