State Rep. Tyrone Brooks Sr. indicted on fraud and tax charges – Atlanta Business Chronicle

The indictment charges two fraud schemes, the first involving a tax-exempt charity, Universal Humanities, Inc., that Brooks established in the early 1990s. From at least 1995 through 2012, Brooks solicited contributions for Universal Humanities from corporate and individual donors purportedly to combat illiteracy in disadvantaged communities in Georgia and across the southeastern United States, eventually raising more than $780,000. Donors included the Coca-Cola Company ($400,000), Georgia Pacific Company ($140,000), Northside Hospital ($240,000), and others who gave smaller amounts. Brooks made specific false representations in his written solicitations about the work that Universal Humanities was doing to combat illiteracy and how the donated funds would be used, claiming that Universal Humanities had established literacy programs and was conducting workshops and tutoring and mentoring students. He also falsely claimed that Universal Humanities utilized a staff and operated under the direction of a board of directors.

The indictment alleges that in reality, Brooks did not use the donations to promote and address literacy in Georgia or elsewhere, or to retain a staff, occupy office space, fund workshops, hire instructors, or conduct programs attended by students. Instead, Brooks used the money to pay personal expenses for himself and members of his family, including home repairs, furniture, lawn service, life insurance, entertainment, personal credit card expenses, utility bills, food and clothing, dry cleaning, electronic equipment, jewelry, and payments on personal loans, among other personal expenses.

Brooks generally accomplished the diversion of funds by depositing the solicited donations into a bank account he established in the name of Universal Humanities, then almost immediately transferring the funds to a personal account, from which he paid personal expenses. At times, Brooks paid personal expenses directly from the Universal Humanities account.

A second related scheme charged in the indictment alleges that Brooks also diverted charitable donations he solicited on behalf of GABEO and used much of the money to pay personal expenses for himself and his family. GABEO is an organization of state, county, and municipal elected officials that promotes voter registration, crime prevention, literacy and economic empowerment initiatives.

via State Rep. Tyrone Brooks Sr. indicted on fraud and tax charges – Atlanta Business Chronicle.