Lamar Odom cancer charity Cathy’s Kids accused of fraudulent use of $2.2 million
Cathy’s Kids, a cancer charity set up by Lamar Odom, has failed to give considerable money raised to children in need, a new investigation has revealed.
According to ESPN, which conducted an investigation called Outside The Lines, Cathy’s Kids foundation has not given $2.2 million accumulated to any cancer-related causes since it was founded in 2004.
Questions were raised about the use of the money after investigators rifled through eight years of Lamar Odom’s tax records.
Cathy’s Kids, a cancer charity set up by Lamar Odom, has failed to give considerable money raised to children in need
Instead of funding cancer-related patients, the money has reportedly been mostly used to finance two elite youth basketball travel teams.
According to ESPN investigation, at least 60% of the $2.2 million has helped fund the AAU teams.
The sole employee on the books for the charity is Lamar Odom’s high school coach and best man at his wedding to Khloe Kardashian, Jerry DeGregorio.
Acting as secretary for the Cathy’s Kids – named in honor of Lamar Odom’s late mother who died of stomach cancer – from 2004 to 2011, Jerry deGregorio was reportedly paid a median annual salary of around $72,000, despite the charity operating at a loss since it was created.
Cathy’s Kids is currently $256,000 in debt largely due to a loan Lamar Odom made to the charity, according to his business manager and charity’s treasurer, Lester Knispel.
The new ESPN revelations now allegedly see Lamar Odom in danger of violating tax law as, as ESPN states, if a charity spends funds not consistent with its stated mission, including paying someone like Jerry DeGregorio a salary, it could be considered as fraud by the IRS or a state attorney general’s office.
If fraudulent activity is found, prosecutors could in turn file charges against Lamar Odom.
ESPN have apparently since sought a comment from LA Clippers star about his charity’s spending habits.
Lamar Odom reportedly simply responded with: “It’s my money.”
His wife Khloe Kardashian has been heavily involved with Cathy’s Kids by setting up a personal eBay account with her husband, in which they have been selling off personal effects, including items from her designer wardrobe, to raise funds.
Khloe Kardashian has even taken to her own personal blog to promote the charity and gush about her husband’s efforts.
The Outside The Lines report also investigated more than a hundred other charities attached to high profile athletes.
The investigation revealed that 115 of the big name charities were not handing out raised profits effectively or properly.
It also found that more than 74% were not operating under the Better Business Bureau and the National Committee for Responsive Philanthropy standards.