US lawyer facing 10 years for tax, charity fraud

May 08, 2010 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: News, Avoiding 'Charity' Scams

I thought this short article was interesting.  “Karoly had steered a $500,000 donation he made to the Lehigh Valley Community Foundation to his church - which forwarded most of it back to Karoly.”

Lawyer facing 10 years for tax, charity fraud
THE ASSOCIATED PRESS
Updated: 05/05/2010 08:01:04 AM MDT


PHILADELPHIA (AP) - An Allentown attorney who made millions from police-abuse cases is being sentenced Wednesday for tax and charity fraud.
Sixty-year-old John Karoly (KAH’-roll-ee) Jr. would serve 10 years if federal prosecutors get their way.

But the defense says Karoly is losing his law license and his reputation, and should not be harshly punished.

Karoly pleaded guilty to evading taxes on $5 million in income.

A judge later found him guilty of fraud and money laundering. Karoly had steered a $500,000 donation he made to the Lehigh Valley Community Foundation to his church - which forwarded most of it back to Karoly.

Karoly admitted on the stand he used that money for office expenses, clothing, pet care and catering costs for his brother’s funeral.

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