Well, well, well….what do we have here? According to multiple sources, Khloe Kardashian and her husband Lamar Odom are running some sort of charity scam. Apparently their charity “Cathy’s Kids” has been raising money for cancer research, except, none of the money actually goes to help children.
According to sources, when Lamar was asked about these allegations, he reportedly said, “It’s my money.” Yikes.
According to a new report, Lamar and Khloe’s charity raised over $2.2 million dollars since 2004, and hasn’t given ANY money to cancer-related causes.
ESPN conducted its “Outside The Lines” investigation of more than a hundred charities attached to top athletes, including Odom. It uncovered 115 of these high-profile charities were not passing out raised profits effectively or properly, with more than 74 percent not operating under standards upheld by the Better Business Bureau and the National Committee for Responsive Philanthropy.
According to ESPN, in the case of Odom, 33, eight years of tax records revealed that his charity, Cathy’s Kids – named in honor his late mother who died of stomach cancer – has not given any money to cancer-related causes since its creation in 2004, despite raising an estimated a whopping $2.2 million.
In addition, the investigation says it found the charity primarily existed to finance two elite youth basketball travel teams. Of the $2.2 million raised by the charity, ESPN reports that at least 60 percent — $1.3 million — went to those AAU teams.
Shockingly, the charity paid only one executive — Jerry DeGregorio, Odom’s high school coach and best man in his wedding to Kardashian, says the report. DeGregorio — now an assistant coach with the Golden State Warriors — was secretary of Cathy’s Kids from 2004 through 2011, for which he was paid a median annual salary of about $72,000, while the charity operated at a loss since its creation.
ESPN reports that its 2011 tax returns show Cathy’s Kids is $256,000 in debt, mostly due to a loan Odom made to the charity, according to his business manager Lester Knispel, who is also the charity’s treasurer.
When approached in a locker room by “Outside the Lines,” Odom responded to the charity’s spending habits by saying, “It’s my money.”
Khloe has been involved in raising funds for the controversial charity as well. Khloe and Lamar set up an eBay account together, selling items from their “personal collection” to benefit the charity, according to their own description.
ESPN notes in its story that if a charity spends money — including paying someone a salary as in the case of DeGregorio — on activities not consistent with its stated mission, that could be a violation of tax law that could draw the ire of the IRS or a state attorney general’s office. If fraud was found, prosecutors could file charges.
In 2010, Kardashian, 28, blogged about her and Odom’s passion for the cancer charity on her official website, which, ESPN notes, the couple has also used to promote multiple eBay auctions of the reality star’s clothes to also raise money for the charity.
“Every time I see him working with Cathy Kids. “I fall more and more in love with him,” Kardashian wrote. “He’s made me a better person and has taught me that anyone can make a difference if you have the desire and passion to do so,” she said.
Neither Odom or Kardashian have yet to publicly comment on the ESPN investigation.
Wow, this is really sad news. I hate when I hear about things like this. Where is the money going, if it’s not going to charity? Lamar’s reps issued a statement last night. “It is unfortunate that Lamar Odom has been the target of an attack on athletes’ charities, although he has personally contributed approximately $2.2 million to his foundation. The millions of dollars personally contributed by Lamar constituted more than 90% of the money raised by the foundation. All of the funds donated by Lamar and the other contributions to Cathy’s Kids were used for one of the foundation’s intended charitable purposes. Not one penny went to help Lamar personally or any member of his family.”
Posted Wednesday, April 3rd, 2013 at 8:08am
Filed under Khloe Kardashian
, Lamar Odom