The Clinton Foundation is America's largest unprosecuted racketeering and charity fraud case. The only remaining pathway for due process was petitioning the Arkansas State Board of Public Accountancy to enforce AICPA professional standards against the Foundation's former national audit firm BKD, LLP.
BKD issued slapdash audits and tax returns (under penalties of perjury) for 13 years
- By dismissing AICPA professional standards and IRS compliance, the firm created a veneer of legitimacy for the Clinton Foundation
- Material Errors and Omissions in 990 Tax Returns
- Rampant Irregularities
- Trustee Oversight and Control Failures
- The Foundation's Board of Trustees engaged Simpson Thacher & Bartlett, LLP to review its "decadal" (or decadent) governance
- Their report was issued in late December 2011 and found severe organizational and internal control weaknesses jeopardizing the Foundation's tax-exempt status
BKD Prepared and Audited Foundation's Financial Statements
- BDK violated independence, integrity, and objectivity ethical standards by compiling and auditing the Foundation's financial statements
- Massive Accounting Errors
- The Foundation's agreement with the World Health Organization's Unitaid was to purchase reduced-priced medicines as an agent
- Accounting principles required the funds to be held in an escrow account, however, CHAI booked the Unitaid advances as charity revenue and payments as program expenses
- Gross Overstatement of Library’s Construction Cost
- Clinton Library cost is scandalously high when compared to equivalent high-quality Little Rock commercial buildings
- Failure to Audit Clinton Global Initiative
- Numerous states, including Arkansas, required CGI to be audited
Arkansas Consent Order.
- BKD signed the Arkansas State Board of Public Accountancy Consent Order acknowledging that it failed to "exercise due professional care in the performance of professional services," and that a licensee who performs auditing, review, compilation, management consulting, tax or other professional services shall comply with professional standards as defined in Board Rule 8.2."
- The firm also acknowledged it was first licensed with Arkansas in 2003, meaning it operated unlawfully for more than two years while providing services to the Clinton Foundation.
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