Charity closed after bad books revealed

[leviathan74666]

A bogus AIDS charity that claimed it was curing disease in Africa with more than $200 million in life-saving drugs has been shut down by the Canada Revenue Agency.

By night, the twice-bankrupt Arion used dummy corporations with mundane names like Neodec Services to process payments from johns who did not want the wife or a company auditor spotting a credit card payment from Cachet Ladies, Cupid Escorts or other agencies.

James Arion set the foundation up (he called it the Aryan Foundation) in 1986, purportedly to run an unnamed orphanage and assist “children in distress”. It did nothing of the sort.


http://www.thestar.com/news/investi...7607--charity-closed-after-bad-books-revealed

 

[Xzara]

Surprised took authorities so long to catch on to his scheme.

 

[cheese puffs00]

The Orion Foundation, whose boss had a sideline business involving high class escort agencies, was operated for the “private gain” of the boss and fellow directors, a federal audit concluded.

He the owner of Cachet and Cupids?

 

[sharpz]

Is cupids still in operations?.

 

[??A Sohma at heart!??]

From what I understand, the tax scheme was one thing that this guy was running, and this is what CRA investigated.

The credit card processing business was another thing that he was running. This business had a merchant account with the credit card companies and was acting like a collection agent where escort agencies would hire him to run charges through his company. His company would charge a 20% premium for the service, which was passed on to the client. He would then keep the 20% and send the rest back to the escort agency. I don't think that he owned any of the agencies. There was an expose in the star about 1 year ago talking about all this.