The California Attorney General announces the settlement of their investigation against the Lithuanian Assistance Foundation and its directors. California’s investigation uncovered significant diversion of charitable assets. Properties donated to the charity by Lithuanian Americans to benefit Lithuania were never recorded on the charity’s IRS Forms and were quickly sold to insiders below fair market value. To add umbrage to injury, the charity was paid over time, acting as the lender and had no security interest in the properties. The charity is being dissolved, the directors are being banned from serving as directors and the settlement provides for the recovery of $ 7 million.
To see the settlement, visit: https://oag.ca.gov/sites/all/files/agweb/pdfs/charities/pdf/settlement-lithuanian-assitance-foundation.pdf?