Operator of bogus charity pleads guilty to defrauding multiple companies
ATLANTA – Kai Brockington pleaded guilty in federal court to mail fraud and tax fraud for running a bogus charity that duped multiple large corporations into sending him hundreds of thousands of dollars.
“Brockington defrauded a number of companies that were seeking to better their communities through charitable donation matching programs,” said U. S. Attorney Byung J. “BJay” Pak. “Rather than using the money to provide healthcare for low- income individuals, he selfishly spent the money on himself and his family.
“Legitimate charities rely on the generosity of donors to carry out their humanitarian missions. Because of his audacity to seek personal benefit, Brockington’s undermined the benevolent intentions of every charity,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI hopes his upcoming sentencing will send a message to anyone with similar intentions.”
“It is our mission to deter the illegal use of the mail for any criminal activity,” said Craig Goldberg, Postal Inspector in Charge of the Denver District. “We are committed to working together with our law enforcement partners to bring to justice those who would attempt to mask their criminal activity through the use of the mail.”
“Conspiring to defraud the government with an elaborate scheme to falsify charitable deductions is unlawful,” stated Gabriel L. Grchan, Acting Special Agent in Charge of the IRS Criminal Investigation St. Paul Field Office. “Mr. Brockington’s plea serves as an important reminder that the U.S. Attorney's Office and IRS Criminal Investigation are committed to bringing to justice those who commit and undertake such fraudulent schemes. Corporate officials hold positions of trust not only in their companies, but also in the eyes of the public. IRS CI will do everything we can to hold individuals accountable to the same tax laws that they are subject to, ensuring that our tax system is fair to everyone."
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 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.
From 2013 through 2017, these large companies donated approximately $668,000 to Our Genesis Project through charitable matching programs. Instead of using the donations for charitable endeavors, Brockington spent the funds on himself and his family members to purchase jewelry, expensive clothing, trips to Italy and Disney World, as well as making renovations to his family home and paying for other living expenses.
During this time period, Brockington repeatedly filed false tax returns with the IRS. This included false federal income tax returns that failed to account for the money he was earning from this scheme, as well as charity returns that falsely claimed Our Genesis Project was donating these funds for 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 earned from this fraud scheme.
Kai Brockington, 36, of Dallas, Georgia, pleaded guilty on May 23, 2018 to mail fraud and willfully filing a false federal income tax return. His sentencing is scheduled for August 22, 2018.
This case is being 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 is prosecuting the case. Assistant U.S. Attorney Timothy C. Rank, of the District of Minnesota, provided invaluable assistance during the course of the investigation.
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.