Former CEO of Utah charity sentenced to prison for ‘secret arrangement’ with donor
FARMINGTON, Utah (ABC4) — A Utah man was sentenced Thursday to one year and one day in prison after evading taxes on $1.3 million he was paid as part of a “secret arrangement” with an alleged donor to the charity where he worked.
According to court documents and statements made in court, Ashley Robinson, of Farmington, was the CEO of a Salt Lake City-based charity that collected and distributed medical supplies overseas, the Department of Justice said.
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“As a CEO, Robinson entered into a secret arrangement with a purported donor, Gurcharan ‘Jazzy’ Singh,” the DOJ said. “Singh provided medical supplies to the charity, making it appear as if these supplies had been donated to the charity.”
Robinson then reportedly arranged for the charity to sell the goods to a third-party, passing most of the sale proceeds back to Singh. As compensation, the DOJ said Singh then paid Robinson up to 10% of the total proceeds.
From 2013-2019, Robinson personally received $1.3 million from this scheme. The DOJ said Robinson did not report this income on his federal tax returns or pay tax on it, but instead used the funds to pay off the mortgage on his principal residence, as well as buy multiple luxury vehicles, including a Maserati, a Mercedes Benz, and an Audi for a co-worker.
Robinson caused a tax loss to the IRS of $485,982, the DOJ said, which he was ordered to pay to the U.S. in addition to his prison sentence.
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