From July 2012 to June 2016, falsely claimed in its public financial reporting and on its website that 99 percent of donations goes to direct aid.
In fact, GHC has two subsidiaries, Giving Hope International and International Clinic Aid. The latter bought pharmaceuticals worth less than $225,000 from a wholesales in the Netherlands. After the transaction, both subsidiaries donated the same pharmaceuticals to GHC, which reported that the total value of the pharmaceutical as $34.9 million.
According to the Attorney General’s office, GHC failed to submit documentations proving that it distributed the pharmaceuticals as part its mission. Therefore, the actual value of those pharmaceuticals should be zero.
Charitable organizations like GHC inflate their financial reports to appear larger and more efficient than their actual size and ability. The scheme allows them to attract more donors.
