http://money.cnn.com/2010/01/18/news/international/wyclef_haiti/
"In the largest transaction noted by The Smoking Gun, Yele Haiti's 2006 tax filing said it purchased $250,000 worth of "TV airtime and production services from Telemax, S.A which is a for-profit company located in Haiti and which two board members (Wyclef Jean and co-musician Jerry Duplessis) own a controlling interest in."
But tax experts say it's routine for individuals to charge their own charities, so long as services are being provided in return. "The tax rules do not prohibit related party transactions," said Marcus Owen, former chief of the IRS unit that oversees non-profits.
And the filing also stated that the charges were "below market." This is an important distinction supporting legitimacy, according to Owen, who said that rules require that they be at no more than market value.
Locke said that Yele Haiti used businesses affiliated with board members to get the cheapest rates, but he added that the organization would not be doing that again.
"On the books, it looks as though there was a benefit, but there was not," he said, at Monday's press conference. "It was not done with the intent to do anything other than be efficient."
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