IRS investigation: Madonna won't appear before a grand jury

Publié le par madonnafansworld

Enquête du fisc: Madonna n'apparaîtra pas devant un grand jury.

Madonna's charity Raising Malawi and the Kabbalah Centre hit with subpoenas as part of IRS investigation
Madonna charity subpoenaed
Last Updated: 3:27 AM, May 7, 2011
Posted: 2:10 AM, May 7, 2011

Madonna's charity Raising Malawi and the Kabbalah Centre were hit with subpoenas this week as part of an IRS investigation. But don't expect Madge -- or Kabbalah bigwig Karen Berg -- to appear before a grand jury soon. The subpoenas are for documents, not testimony, we are told. Also subpoenaed was Kabbalah charity Success for Kids. Sources say that behind the scenes, Kabbalists still blame a "disgruntled former member" for the media storm surrounding the organization, as well as the IRS investigation. Feds are probing the religious non-profit status of the Kabbalah Centre, according to sources. Kabbalah outside litigation council Mathew Rosengart said in a statement, "The centre and SFK intend to work closely with the IRS and the government, and are in the process of providing responsive information to the subpoenas." A rep for Raising Malawi added that the organization is, "actively cooperating with the investigation."

Source: NYPOST.

Kabbalah faces tax probe… and Madonna’s charity has been called to give evidence
By Daily Mail Reporter
Last updated at 9:19 PM on 6th May 2011

Madonna’s Malawi charity is to be scrutinised as part of a federal tax investigation into the Los Angeles Kabbalah Centre.
The Raising Malawi charity has been named in subpoenas as a subject of the grand jury probe examining whether the family that runs the spiritual group took funds for personal use.
The Internal Revenue Services is investigating whether non-profit funds were taken from the Kabbalah Centre’s estimated $260 million in assets by the Berg family, reported the Los Angeles Times.
For more than 40 years, the Berg family has controlled the spiritual group that preaches a little-known strain of Jewish mysticism.
The Bergs and the Kabbalah Centre were named in subpoenas alongside Madonna's Raising Malawi charity and Spirituality for Kids.
The charities have said they are cooperating with the New York-based investigation.
Madonna abandoned plans to build a girls' school in Malawi with the Kabbalah Centre earlier this year because of logistical problems.
She intended the school as a ‘gift’ for the country, where she adopted two of her children.
Her Raising Malawi charity has been brought into the probe despite cutting ties with the Kabbalah Centre in the spring.
We have tried to provide as much information as we can as quickly as possible to the people who are investigating and are very actively cooperating in every way we can,’ Trevor Neilson of Global Philanthropy Group, a consulting firm now managing Raising Malawi told the Los Angeles Times.
Madonna chaired the board of Spirituality for Kids, the other charity involved in the investigation, and donated more than $600,000 to the cause, according to tax filings cited by the Los Angeles Times.
The subpoenas do not indicate that she personally is under scrutiny.
The federal investigation follows several lawsuits about the Kabbalah Centre's finances.
One ongoing case alleges the centre wrongly cashed in on $2.9 million in a $68-million Ponzi scheme.
In another suit an heiress accused the Bergs and other Kabbalah Centre associates of defrauding her of $1.3 million.
A former member alleges she was pushed to invest hundreds of thousands of dollars in an Orange County branch and a home-schooling program that never came to fruition.
The Kabbalah Centre has called the suits meritless.

The Berg Family have controlled the Kabbalah Centre for more than four decades. They have seen it expand from one school of a little-known form of Judaism to a global brand.
Karen Berg, 68, became chief executive of the Kabbalah Centre after her husband, Philip, 81, who had been its head rabbi since 1969, suffered a stroke in 2004. She runs the organisation with the help of her sons Michael, 37, and Yehuda, 38.
The family have welcomed a string of A-list celebrities as followers including Ashton Kutcher and Gwyneth Paltrow. They have close ties with Madonna, whose decision to study at the centre in 1996, led to a period enormous growth.

Source: Mail Online.

Publié dans Charity

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