Reply #14: and the bogus "Corrections Fund" [View All]

[maddezmom]

Kerik has also dodged numerous financial scandals during his career. One such controversy involved a little-known foundation operated by the New York City Department of Corrections under Kerik authority.

According to an investigation by the New York Daily News back in early 2003, nearly $1 million from sales of cigarettes to Rikers Island inmates was diverted to the Correction Foundation, an organization created and headed by Kerik himself. The money -- which was tobacco companies provided in place of rebate merchandise that previously went to inmates -- was spent with apparent disregard for rules governing public funds, reported the Daily News. Although no one was criminally charged despite apparent IRS rules violations, one board member told the Daily News he quit in protest after requested access to the suspect financial records went unanswered.

Though Kerik has always denied any knowledge of unlawful activity in connection with the Foundation, the diverted funds remain unaccounted for to this day. Newsday reports that one of Kerik’s aides, highly-paid Fred Patrick, is now serving a one-year prison sentence for misusing tobacco funds donated to the Correction Foundation.

http://newstandardnews.net/content/?action=show_item&itemid=1285