Topics: News, What's New from the Charities Directorate of CRA, Ethics and Canadian Charities, Avoiding 'Charity' Scams
The CBC in an article entitled "Charity tax fraud to cost brothers their freedom" how two brothers were each sentenced to over 4 years for being involved in charity fraud over nearly $5 million. It shows how the CRA is increasingly using criminal convictions instead of just revocations. The judge described the fraud as "industrial scale". The article notes "The total number of false claims over the life of the scheme was more than 1,700 for a purported $11.4 million of alleged donations." Keep in mind that this was only issuing $5 million in fraudulent receipts which is a tiny tiny amount compared to some other schemes out there.
If you Google search the brothers you will note that it appears that they were also involved in some other issues that are the subject of a 2012 article entitled "Fraud charges laid after senior pays $70,000 in lotto scam ".
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Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.