Operator of bogus charity sentenced for defrauding multiple companies
ATLANTA – Kai Brockington, the former operator of a bogus charity, was sentenced to federal prison for defrauding multiple large companies that donated hundreds of thousands of dollars.
“Brockington stole funds that could have gone to legitimate charities that helped those in need,” said U. S. Attorney Byung J. “BJay” Pak. “His prison sentence is a just punishment for his greed.”
“The FBI is hopeful that Brockington’s sentence will send a strong message to anyone who would try to take advantage of the benevolent intentions of donors,” said J. C. “Chris” Hacker, Special Agent in Charge of FBI Atlanta. “Brockington undermined every legitimate charity’s work to carry out humanitarian missions with his disregard for their generosity to satisfy his own personal greed.”
“Officials who operate non-profit entities designed to assist charitable endeavors hold positions of trust not only in their companies, but also in the eyes of the public and we at the IRS owe it to every American taxpayer to use all lawful means to identify and prosecute those who evade their taxes as well as engage in other financial crimes”, stated Gabriel L. Grchan, Acting Special Agent in Charge of the IRS Criminal Investigation St. Paul Field Office. “It is our hope that Brockington’s sentence sends the strong message that tampering with the integrity of our nation’s tax system will result in prison time."
“Charity fraud, like many financial crimes, erodes the integrity of honest, noble charitable organizations, and threatens the financial health of our communities,” said U.S. Postal Inspector in Charge Kevin Rho of the Denver Division. “This sentence is the culmination of a successful joint investigative effort to protect vulnerable individuals and businesses from charity fraud and its effect on our communities, by ensuring the integrity of the U.S. Mail.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Brockington was the primary operator of “Our Genesis Project,” a non-profit entity that supposedly provided healthcare to underprivileged recipients. In reality, Our Genesis Project never conducted any actual charitable work. Beginning in 2013, Brockington caused employees of several large companies to falsely tell their employers that they had donated money to Our Genesis Project. These large companies had programs that permitted their employees to donate money to a charity and request that the company match those donations. As a result, the companies donated substantial sums of money to Our Genesis Project.
From 2013 through 2017, Brockington caused several large companies to donate approximately $668,000 to Our Genesis Project through their charity matching programs. Instead of using these donations for charitable endeavors, Brockington spent the funds on himself and his family members, including purchases of jewelry and expensive clothing and shoes, trips to Italy and Disney World, as well as updates to the family home and other living expenses.
During this time period, Brockington repeatedly filed false tax returns with the Internal Revenue Service, including false federal income tax returns that failed to account for the money he was earning from his scheme as well as returns that falsely claimed Our Genesis Project was spending the funds on community grants, community activities, and community expenses. Additionally, Brockington filed for personal bankruptcy in 2015 and failed to disclose the substantial sums of money he had earned from this fraud scheme.
Kai Brockington, 36, of Dallas, Georgia, was sentenced to three years, five months in prison, to be followed by three years of supervised release on August 22, 2018. He was also ordered to pay restitution to the victim companies. Brockington pleaded guilty to charges of mail fraud and willfully filing a false federal income tax return on May 23, 2018.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation Division, and the U.S. Postal Inspection Service.
Assistant U.S Attorney Thomas J. Krepp prosecuted the case, with invaluable assistance from Assistant U.S. Attorney Timothy C. Rank of the U.S. Attorney’s Office for the District of Minnesota.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.