Following the disastrous earthquake in Gujarat, India of 2001, former president Bill Clinton visited the tragedy-stricken region to flaunt his new nonprofit, the American India Foundation, formed in a response to the devastating earthquake that killed 20,000 and injured 166,000.. The foundation was formed as a partnership between Clinton and millionaire and family friend Rajat Gupta who later spent time in federal prison for illegal inside trading. Upon visiting India, Clinton promised to rebuild 100 villages through the fundraising efforts of the American India Foundation (AIF). But it turns out that the foundation came no where close to fulfilling this goal. And even worse, disaster victims received an extremely small amount of these relief funds meant to rebuild dozens of villages.
But it appears AIF followed the Clinton Foundation script in which Middle East oil sheiks, tycoons, and billionaire business magnates gave money to that foundation with the hope of gaining access and perhaps favors from the former president, his wife and their political allies.
“When you look at who were the principal contributors and trustees, there is a surprising number of convicted felons who are accused of illegal activity on a massive scale. It’s amazing,” Ortel told The DCNF. “This is another example of a purported charity being used, in my view, to enrich the principals associated with it.” Bill’s personal buddies who joined him at AIF look like a den of thieves — eight AIF officers, including two co-chairmen, five trustees and a director, are felons.
Years later, AIF’s annual reports were reviewed by the Daily Caller News Foundation and show only seven villages were partially rebuilt by Clinton’s group, and a mere $2.7 million of $53 million raised over a decade went to the earthquake victims. In stark contrast, published reports suggest the AIF has raised more than $1 billion with Bill Clinton’s assistance to aid victims of the 2001 Gujarat earthquake.
“Gupta and AIF co-founders President Bill Clinton, former vice chair of Citigroup Victor Menezes, venture capitalist Lata Krishnan, and former Citibank senior executive Pradeep Kashyap raised more than $1 billion to assist victims of the earthquake.”
On June 17, 2014, Forbes reported:
Rajat Gupta reported to the federal prison camp at Devens Federal Medical Center in Ayer, Massachusetts, to begin serving a two-year term for insider trading, which may help explain why the Clinton Foundation has boasted less in recent years of the enthusiastic support Clinton provided to Gupta in the wake of the 2001 earthquake.
Paltry aid for the victims notwithstanding, Clinton handsomely profited from the charity as AIF’s top officers poured millions into the Clinton Foundation and others generously gave to Democratic nominee Hillary Clinton’s political campaigns.
Wall Street analyst Charles Ortel, who has conducted an in-depth investigation of the Clinton Foundation’s finances, says:
“The Clinton Foundation financial fraud began with the illegal disaster relief efforts started in February 2001, when Clinton started chasing donations for Gujarat, India, without IRS authorization and subsequently substantial funds went missing, diverted from helping disaster victims by a bevy of scoundrels, including Rajat Gupta, now incarcerated.”
“All years from 2001 onward when the Clinton Foundation operated are not audited as required, so it is difficult to be precise, but total Clinton Foundation fraud runs to hundreds of millions of dollars, with diversions for political purposes and personal enrichment likely to exceed $200 million.”
Ortel said AIF has been a fraud from its inception.
“Instead of a charity, legally constituted and validly pursuing authorized tax-exempt purposes, it has been a false front that attracts donations, allows unknown sums to be diverted and then manufactures deductions for cronies,” Ortel charged. “Trustees and those involved include a star-studded cross-section of the elite in America, and not just immigrants from India,” Ortel noted. “How could such a mess happen and then remain unprosecuted for so long?”
In September, WND reported Ortel’s conclusion that the Clinton Foundation’s solicitation of “charitable donations” to fight HIV/AIDS in Third World countries traces back to a conversation Bill Clinton had with Nelson Mandala in 2002. However, the Clinton Foundation did not receive IRS tax-exempt authorization to fight HIV/AIDS until eight years later. Ortel is finalizing additional reports that show the Clinton Foundation illegally exploiting natural disasters, including fighting HIV/AIDS internationally, beginning July 2002; tsunami relief in January 2005; Hurricane Katrina in August 2005; and Haiti, beginning in 2009.
After an extensive examination of AIF audited financial statements and regulatory filings in the United States, Ortel charged that the AIF federal and state regulatory filings
“are missing or riddled with errors since inception in 2001, going forward to today.” “There is no evidence in Clinton Foundation public filings that Bill Clinton or the Clinton Foundation had IRS approval and legal authority to conduct earthquake relief efforts targeting victims in India starting in 2001,”
And there is no evidence that Bill Clinton or the Clinton Foundation had authority in key U.S. states to solicit for donations from the general public, yet they certainly did so, as the public record is amply clear.”
(Bill Clinton) “certainly is and was a person ‘in position to exercise significant influence’ over the American India Foundation from February 2001 to present. However, Bill Clinton’s role as ‘Honorary Chairman’ to the AIF was never declared on Clinton Foundation 990s from 2001 forward, despite IRS regulations requiring the disclosure of affiliated charitable activities on properly prepared and filed 990s.”
As many as eight AIF officers are convicted felons accused of illegal activity on a massive scale. Among these eight felons are two co-chairmen, five trustees and a director.[box type=”shadow” align=”alignleft” ]Clinton’s handpicked AIF co-chairmen — Rajat Gupta, then head of McKinsey & Company and Victor Menezes, then Citibank chairman — were both convicted of insider trading. Gupta served 19 months in federal prison and Menezes was fined $2.7 million. Gupta was close to the Clintons. He hired Chelsea Clinton right out of college for a six-figure salary to work at McKinsey and he donated between $10,000 to $25,000 to the Clinton Foundation.
Raj Rajaratnam was perhaps the most notorious AIF trustee. He was convicted of 14 counts of security fraud in one of the largest and most spectacular Wall Street prosecutions in decades. He is currently serving serving a sentence of 11 years in prison. Gupta passed on insider tips to Rajaratnam.
Then there’s Vinod Gupta, an AIF director who the Securities and Exchange Commission helped remove as CEO of InfoUSA because he used company funds to support a lavish lifestyle. He was forced to resign and pay $9 million in restitution. Vinod also bestowed large financial rewards to Clinton. He paid Bill $3.3 million and gave him 100,000 stock shares of his company without prior approval from the board of directors. Vinod allowed the Clinton family to use the company’s jet, also without board approval. The Clintons got $900,000 worth of air travel. And Vinod gave between $1 million and $5 million to the Clinton Foundation. Vinod had spent a night in the White House Lincoln bedroom when the Clintons opened it up to donors.
Sant Singh Chatwal, another AIF trustee, pleaded guilty in 2014 to funneling more than $180,000 in illegal contributions to candidates for federal office, including Hillary. The Times of India reported the close relationship Chatwal had with the Clintons. “Chatwal and his wife Daman were regular visitors to the White House during the Clinton presidency. A fortnight after the Clintons left for their new home in Chappaqua, New York, Sant Singh Chatwal and his elder son, Vikram, dropped in to meet them,” the newspaper wrote. Naveen Jain, an AIF trustee, was accused of buying and selling stocks with insider knowledge as CEO of InfoSpace. He eventually paid $107 million in a civil suit over insider trading.
Ajay Shah, another trustee was forced to pay $14.8 million for contributing to the collapse of the Trust Bank of Kenya. He fled the country to avoid the Kenya High Court decree. Sudesh K. Arora, president of Natel, entered the criminal plea for a major Department of Defense fraud investigation. He settled and his company paid a $1 million fine.[/box]
The three final felonious trustees of the Clinton run organization are Naveen Jain, Ajay Shah and Sudesh Arora. Jain had allegedly been buying and selling stocks with insider knowledge while CEO of InfoSpace. A civil suit was brought against him which resulted in the paying of a $107 million settlement. Shah was made to pay $14.8 million for his contributions to the collapse of the Trust Bank of Kenya. And Arora settled a major Department of Defense fraud investigation by paying a $1 million dollar fine.
Philanthropy expert Leslie Lenkowsky told TheDCNF that the Red Cross scandal “created a furor. It resulted in the resignation of the president of the American Red Cross and to a change of policy so when they raise money for a particular disaster, they now have to ask donors if they can use the money for other disasters.”
Apprised of Clinton’s actions with AIF, Rep. Marsha Blackburn, the Tennessee Republican who is vice chairman of the House Energy and Commerce Committee — which also investigated the Red Cross scandal — told TheDCNF, “From what we know, it appears they have used natural disasters and human suffering to personally enrich themselves, while doing very little to help victims.”
The Clinton’s “appetite for self-serving philanthropy and false altruism appears to know no bounds,” Blackburn said. She added that AIF’s actions should be referred to the Federal Trade Commission because “we must be consistent in how we deal with sham charities.”
The AIF stated to the IRS when it sought tax exempt status that it was a genuine disaster relief organization: “The American India Foundation was formed to render financial and managerial assistance to the disaster relief and rehabilitation effort in India following the Gujarat earthquake.”
Lenkowsky said, “If this organization raised money for earthquake victims in the villages, but used the money on other purposes that was unrelated to those victims, it’s not a good practice.”
“It comes as no surprise that the Clintons and Clinton Foundation are once again doing business with convicted felons and con men,” said Blackburn.
A spokesman for the AIF did not respond to TheDCNF’s request for comment.