[richlevy]

From here and here

The short version is that the charity attempted a SLAPP suit to keep two disgruntled whistle blowers quiet.

Of the numerous complaints, the most interesting one is where an executive of the the company donating the phone cards delivers $6 million dollars worth of phone cards to an unmarked loading dock following the directions of a charity executive and doesn't take note of the address or a get a receipt. The executive of the charity was being paid $155K by the charity but also received a fee from the phone card company through a consulting company. The USO, who was supposed to receive the cards, denies receiving them.

A New York court has dismissed a lawsuit in which a controversial veterans charity headed by self-described "nonprofit entrepreneur" Roger Chapin sought a court order to bar two fired employees from revealing information.

In it, the coalition acknowledged in effect that the original filing contained false and misleading information--much of it first brought to public attention by Forbes and the Better Business Bureau's Wise Giving Alliance, a leading charity watchdog. The amended return also held out the prospect that the reported revenues and expense figures were still off by as much as 50%.

The coalition's original tax return for calendar year 2006, filed in August 2007, said 75% of the roughly $25 million in contributions and expenditures concerned a gift of 1.5 million sports-scores-only telephone calling cards, produced by EZ Scores LLC of Silver Spring, Md. The coalition has said 1 million cards, which it valued at $12.50 each, for a total of $12.5 million, were handed to the USO of Metropolitan Washington for delivery to U.S. troops oversees.
But when later queried by the BBB and Forbes about such a large single transaction, the USO denied it received the cards, ruefully saying it erroneously sent the coalition an acknowledgment letter. A BBB report that faulted the coalition on various good-governance grounds says there's also insufficient evidence that the other 500,000 were distributed

In an interview, O'Donnell told Forbes he personally delivered cards designated for the USO to an address given him over the telephone by Chapin associate Meyer. O'Donnell described the point of delivery as a staffed loading dock at the rear of an unmarked office building near Route 50 inside the Beltway (east of Interstate 495) in Northern Virginia. Although a native of the Washington area, O'Donnell said he's been unable to find the address again. He acknowledged he didn't get a receipt.
The USO has said its only facility for receiving donated goods is at Fort Belvoir, Va., a good 10 miles south of the Route 50 corridor and outside the Beltway.

Well into 2006, Meyer, a former coalition executive director, served as a board member. Yet his name and compensation were absent from the original 2006 tax return, despite IRS instructions on the form itself requiring the listing of any officer or board member for any part of the year. In another key change, the amended return finally named Meyer as a board member, employee and consultant who received total compensation of $155,200 in 2006.
Disclosure of that relationship is important because, for much of the year, Meyer was paid 5 cents for each calling card for which he could find a qualified recipient. The fees went to Meyer's wholly owned APM Consulting Group LLC. The arrangement developed at a time when Chapin was trying to improve the coalition's financial efficiencies to win a favorable BBB rating.