Legal News

Illinois demands shuttering of allegedly false charitable organization

By Richard Binder

Morrell Steven Neely is listed as the director of the Center for AIDS Prevention, which describes itself as a Beverly Hills-based nonprofit that provides information on HIV and AIDS. However, court documents filed last week in Illinois allege Neely was not registered as a charitable organization with the state when he advertised for donations in May on newspaper Web sites based there.

Consequently, Illinois Attorney General Lisa Madigan has requested in court documents that the Center for AIDS Prevention be dissolved, and for a receiver to oversee all money raised from Illinois.

According to court documents, Neely applied for charitable status for his group in 1987 and received it.  But because the applicant did not properly answer whether certain people involved had ever been convicted of a misdemeanor involving misuse of funds, the status was revoked a few months later.  Almost 20 years later, Neely filed another application with the state and gave a Chicago address.  The court documents allege that neither Neely or the organization was based at that address.

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Full post as published by Legal Pad | LA on July 29, 2009 (boomark / email).