Preliminary ruling in favor of charities for the California AG’s cease and desist order for GIK valuation – part 3

March 20, 2019, 7:48 am

Image courtesy of Adobe Stock.

Introduction to this series of posts explained the Administrative Law Judge (ALJ) hearing the appeal of the California AG’s Cease and Desist order against three charities has decided in favor of the charities.

The basis for his decision, as mentioned yesterday, was that the charities’ expert witnesses were more persuasive than the government’s expert witness.

Are the charities’ appeals misleading?

The remaining issue in the case is whether the charitable solicitations were misleading to donors.

The state alleged that the financial statements did not comply with GAAP and as a separate matter that solicitations to donors were misleading.

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Preliminary ruling in favor of charities for the California AG’s cease and desist order for GIK valuation – part 2

March 19, 2019, 7:19 am

Image courtesy of Adobe Stock.

Introduction to this series of posts yesterday explained the Administrative Law Judge (ALJ) hearing the appeal of the California AG’s Cease and Desist order against three charities has decided in favor of the charities.

Preliminary ruling

The ALJ concluded that the testimony from the charities’ expert witnesses was more persuasive than that of the AG’s expert witness.  On that basis, the ALJ concluded the AG did not prove its case that the financial statements were in violation of GAAP.

I will summarize and quote some of the comments in the transcript and provide select quotes on the assumption many of my readers won’t download and read the transcript for the day. As a matter of my style choice, I will only use the first letter of the last name of witnesses and attorneys.

The basis for conclusion is whose arguments were more persuasive. The ALJ decided the charities had better expert witnesses.

He said:

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Preliminary ruling in favor of charities for the California AG’s cease and desist order for GIK valuation – part 1

March 18, 2019, 9:45 am

Image courtesy of Adobe Stock.

On December 11, 2018, the administrative law judge (ALJ) hearing the case by the California Attorney General against Food for the Poor (FftP), MAP International (MAP), and Catholic Medical Mission Board (CMMB) announced his preliminary determination.

The ALJ concluded that the state did not prove its claim that the financial statements of the three charities violated GAAP.

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Friendly tip to people planning a felony: don’t do it. And if you still want to, you might want to avoid planning your escapade with the internet or your phone.

January 21, 2019, 8:33 am

Image courtesy of Adobe Stock.

If you are planning to do something that our society says is a felony, or even thinking about it, please don’t.

Please change your plans. You won’t like the result.

If you are still pondering something that our society says is a felony, you might want to avoid using electronic devices that record your planning. Definitely don’t use your phone in commission of the actual crime.

Here are a few examples of what not to do, for amusement of people who are inclined to read my blog.  People likely to go ahead with felonious plans probably are not in my audience.

 

Tip #1

Don’t take along your location recording fitness device while conducting reconnaissance to plan an assassination and definitely don’t take it along for the ‘hit’:  Runners World -1/17/19 – This Runner is a Hitman. His GPS Watch Tied Him to a Mob Boss Murder

A competitive distance runner who moon lighted as a contract hit man took along his fitbit watch as he conducted recon and planning runs for two different assassinations. Also wore it for one of the actual hits. Police looked at the recorded location information on the watch which showed him making recon runs and placed him at the scene of the hit.

Result: Life in prison.

 

Tip #2

Don’t conduct an Internet search with questions of whether your plans are illegal: Cleveland.com – 10/19/18 – Brooklyn Woman falsely accused Parma Heights police chief of rape, investigators say.

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Deserter from the U.S. Air Force apprehended and tried.

January 10, 2019, 4:09 pm

William Howard Hughes, Jr. (U.S. Air Force photo)

A 1983 deserter from the U.S. Air Force was arrested in 2018 and has now been tried and sentenced.

I was advised today by the Air Force Office of Special Investigation that the now-former officer has been tried and dismissed from the service. I’m working to find out the results of his trial and his current status. As more details are learned, updates will be posted.

Desertion

Back in July 1983, while the Cold War was still running, USAF Captain William Howard Hughes Jr. deserted after returning to Albuquerque from a TDY in Europe. He did not report to his duty station on August 1, 1983.

He was last seen making 19 withdraws from his bank account totaling $28,500. That may have been around a year’s gross salary at the time. Would have allowed him to run and hide for a while as he worked on his new identity. His car was abandoned at the Albuquerque airport.

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Standard mileage rates for 2019

December 17, 2018, 7:45 am

Image courtesy of Adobe Stock.

The IRS has published the 2019 standard mileage rates. New rate for transportation and reimbursements is 58 cents, which is up from 54.5 cents in 2018. That is an increase of 3.5 cents.

New rates from the IRS, along with some comments on the impact of TCJA legislation are found in Notice 2019-02: Read the rest of this entry »


Recap of known state and federal interest in medical GIK

December 7, 2018, 9:29 am

Superior court facade in downtown Los Angeles, California. Image courtesy of Adobe Stock.

There are a number of state and federal actions visible for financial reporting by charities. Focus of the efforts currently is valuation of GIK and the impact of those valuations on fund raising appeals. Perhaps a recap of those efforts will provide some helpful context to the charity community.

Update: End of this post describes the change in accounting over the last seven years in terms of how to value meds that legally may not be distributed in the U.S.  Hint: a 180 degree change.

Today is the 9th day of out of 15 days scheduled for hearings on the California AG’s cease and desist order (C&DO) for MAP International (MAP), Food for the Poor (FftP), and Catholic Medical Mission Board (CMMB).

Here is the list of publicly visible Attorneys General who are focusing on financial statements of the large medical GIK charities:

California:

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