Audit Find's Al Sharpton's Non-Profit Near Insolvency

Hmmm, I wonder where all that money went? Anybody check the freezer?

Rev Al's National Action Network just underwent an audit and it appears its records are extremely chaotic and in total disorder, to the point of insolvency.

"The organization has suffered recurring decreases in net assets -- and has been dependent upon advances from related parties and the nonpayment of payroll tax obligations -- to maintain continuity," the firm KBL concluded in an April 2 audit of NAN's 2008 financial records, the most recent available.

KBL said it was "unable to form an opinion" on the accuracy of NAN's financial figures "because of inadequacies in the organization's accounting records."

Tax cheat? Rev Al?

Well yes, actually. Back in 2008, the feds decided to end a criminal investigation on Sharpton and NAN after Rev Al agreed to pay back more than $2 million in overdue personal and NAN taxes.

NAN still owed another $1.348 million in delinquent city, state and federal taxes and penalties at the end of 2008, and the IRS has filed dozens of tax liens against NAN over the years, including one in April 2010.

And then there's the $285,000 fine the Federal Elections Commission slapped Rev Al with for illegally using NAN funds for his 2004 presidential run...which hasn't been paid yet either.

Now, according to a NAN spokesmouth the back taxes will be paid per an agreement they made with the feds, but the audit itself leaves severe doubts that NAN can continue.

Based on the chaotic financial records and the fact that NAN has yet to file even its legally required 2009 report with the New York State Attorney General's charities bureau as well as the IRS, I'd wager better than even money that NAN has been used as a conduit to funnel cash to Rev Al and some of the boys at the top of the organization, an old Mafia strategy.

When it's done with something like a nightclub, a bar or a drycleaners, you simply burn the place down for a final payoff from the insurance and walk away to the next one. In the case of a non-profit, you simply rack up all the donations and guv'mint dollars you can, run up the bills and don't pay them and then shut it down when you can't run the scam anymore.

Being that Rev Al is a political sacred cow in Democrat circles in New York,no one will touch this and he'll likely walk away with a smile on his face.

(via memeorandum

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