Kwame Kilpatrick and his

[elizab]

Detroit's ex mayor (now in the clink) is having a bit of difficulty with his "fund"

http://www.freep.com/article/20100610/NEWS01/6100411/Video-shows-Kilpatrick-knew-of-IRS-regulations

Investigators are interested in Kilpatrick's remarks about the fund. He declared that the fund followed every Internal Revenue Service rule and that not "one penny" of its assets was used for his campaign.

Wayne State University law professor and former federal prosecutor Peter Henning said the feds may want the video to refute any claim Kilpatrick may make that he was ignorant of IRS regulations.

http://detnews.com/article/20070511/METRO/705110407/Did-mayor-s-fund-go-to-good-causes

Freeman saw no connection between the Civic Fund's purpose -- which according to its articles of incorporation is to support "voter education, social welfare and community improvement activities" -- and the trip by the mayor, his wife and three sons to the La Costa Resort and Spa in California.

Under the tax code, the nonprofit's funds cannot be used to benefit an individual person or officer, Freeman said, as appears to have happened here.


As a billboard in the Detroit area says: it's fun til ur caught.

 

[trompe le monde]

I see what you did there.

Poor Detroit. If there is a city that could use good leadership about now, its the Motor City.

I know it is slightly off topic, but a year ago the NYT published an article on the struggles of the auto industry and what impact it has on the erosion of Detroit's black middle class. Read it here if you like.

 

[Beech Mtn]

<snipped>

Under the tax code, the nonprofit's funds cannot be used to benefit an individual person or officer, Freeman said, as appears to have happened here.


As a billboard in the Detroit area says: It's fun till you're caught.

Very interesting, thanks for posting. So if I am understanding this right the tax code mentioned above would apply to all non-profits, all charities with non-profit status?

I believe I read that Novitzky was an investigator for the IRS before his current role at the FDA. Interesting.