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November 21, 2006, 02:10 PM ET
Former NBA Player's Charity in Financial Turmoil
A charity founded by Charles D. Smith Jr., a former professional basketball player, has misspent some of its funds and amassed a $1.2-million debt, its former interim director told The Connecticut Post.
The Charles D. Smith Foundation owes $428,000 in back taxes going back to 1999, spent $71,000 in grants it received from the Fannie Mae Foundation on operating costs instead of programs, and operated without mandatory liability insurance for two years.
Mr. Smith says the charity is taking steps to make up for misdeeds. “We are 85 percent out of the woods. We have restored our standing with the state and our audits are now completed.”
Nonetheless, the charity’s financial woes have resulted in the scrapping of some programs, including popular after-school and mentor services.
Connecticut Attorney General Richard Blumenthal, who is investigating the foundation, said, “It’s really nothing short of a tragedy for a very worthwhile organization.”
Mr. Smith previously played for the Los Angeles Clippers, the New York Knicks, and the San Antonio Spurs.
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