Prosecutors and tax documents say the mastermind of a wide-ranging college admissions scandal set up a charity that wove a deep web of deception and fraud to mask bribes.
William “Rick” Singer is accused of funneling millions of dollars through the tax-exempt organization under the nose of U.S. officials.
Singer has been charged with funneling money from wealthy parents through the Key Worldwide Foundation, then using it to bribe coaches and others to get their children into elite universities.
Prosecutors said the foundation also accepted donations from clients to help their kids get admitted through cheating. The scheme allowed the parents to claim tax deductions for themselves.
Nonprofit experts are renewing criticism of the Internal Revenue Service’s limited ability to police wrongdoing.
The IRS says it’s investigating the so-called donations.