Shocker: Smoking Gun say Wyclef’s Charity Has ‘Funny Money’, Has Used Money To Pay for Platinum Studios Rent & Performances Services at Benefit Concerts

Source: 57th Ave

I hate to put out this story about Wyclef and Yele. But the Smoking Gun has forced my hand and it is my duty to post this story. This is not to say he is not helping with the current devastation, but the business practices are a bit shady before this tragedy. To save face Wyclef and Yele need to account for every dollar that people contributed over the last couple of days which has climbed into the millions. The official documents are on Smoking Guns Website :

via Smoking Gun

JANUARY 14–The Haiti earthquake has already triggered hundreds of thousands of donations to musician Wyclef Jean’s charitable foundation, which expects to raise upwards of $1 million a day in the disaster’s wake. However, Internal Revenue Service records show the group has a lackluster history of accounting for its finances, and that the organization has paid the performer and his business partner at least $410,000 for rent, production services, and Jean’s appearance at a benefit concert. Though the Wyclef Jean Foundation, which does business as Yele Haiti Foundation, was incorporated 12 years ago–and has been active since that time–the group only first filed tax returns in August 2009. That month, the foundation provided the IRS with returns covering calendar years 2005, 2006, and 2007–the only periods for which it has publicly provided a glimpse at its financial affairs. In 2006, Jean’s charity reported contributions of $1 million, the bulk of which came from People magazine in exchange for the first photos of a pregnant Angelina Jolie (the actress reportedly directed that the publication’s payment go to Jean’s charity, not her personally). As seen on the following pages from the foundation’s 2006 tax return, the group paid $31,200 in rent to Platinum Sound, a Manhattan recording studio owned by Jean and Jerry Duplessis, who, like Jean, is a foundation board member.

A $31,200 rent payment was also made in 2007 to Platinum Sound. The rent, tax returns assure, “is priced below market value.” The recording studio also was paid $100,000 in 2006 for the “musical performance services of Wyclef Jean at a benefit concert.” That six-figure payout, the tax return noted, “was substantially less than market value.” The return, of course, does not address why Jean needed to be paid to perform at his own charity’s fundraiser. But the largest 2006 payout–a whopping $250,000–went to Telemax, S.A., a for-profit Haiti company in which Jean and Duplessis were said to “own a controlling interest.” The money covered “pre-purchased…TV airtime and production services” that were part of the foundation’s “outreach efforts” in Haiti. No further description of these services was offered, though the return claimed that “the fees paid are below market” and that the use of Telemax was the “most efficient way of providing these services.” The group’s tax returns also report “consultant” payments totaling $300,000 between 2005-2007, while the 2006 return reported nearly $225,000 in “promotion and PR” costs. These expenses are not itemized further in the IRS returns. (6 pages)

2 thoughts on “Shocker: Smoking Gun say Wyclef’s Charity Has ‘Funny Money’, Has Used Money To Pay for Platinum Studios Rent & Performances Services at Benefit Concerts

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