Ex-NBA player Kermit Washington indicted on charges of misusing charity donations
Former NBA player Kermit Washington was indicted this week by a federal grand jury on charges he evaded taxes and defrauded donors to his charity, according to documents unsealed in federal court on Wednesday.
Washington faces more than 40 years in prison if convicted of the four charges: corrupt interference with the internal revenue laws, conspiring to commit wire fraud, obstruction and aggravated identity theft. He also could be fined up to $1 million.
Washington took in nearly $200,000 in donations earmarked for two charities he ran — Project Contact Africa and The 6th Man Foundation — from 2010-2015, according to the indictment. Prosecutors allege that despite assurances by Washington that 100% of the funds would go toward helping needy families and children in Africa, Washington instead diverted the fund to purchase gifts and cover his personal expenses.
“Individuals who use charitable organizations to defraud donors and evade tax obligations inflict substantial harm on every U.S. taxpayer and cause untold damage to well-intentioned charitable endeavors,” Acting Assistant Attorney General Caroline Ciraolo said in statement. “The Department (of Justice) is committed to identifying those engaged in such criminal conduct and holding them accountable.”
Washington’s NBA career spanned more than a decade, although he’s best known for punching Rudy Tomjanovich in an on-court altercation in 1977. He was a regional representative for the the National Basketball Players Association from 2005-2015 and the union donated $25,000 to The 6th Man Foundation in 2012.
NBPA spokesperson Daren Jenkins declined comment when reached by USA TODAY Sports.
Prosecutors claim a good portion of the funds PCA took in came from California attorney Ron Mix, a former NFL player whose practice focuses on filing workers' compensation claims against pro leagues on behalf of former athletes. Washington funneled clients in his direction and Mix, in turn, made contributions to PCA.
“Upon receipt of these payments, Washington diverted the funds for his own personal benefit,” the Department of Justice said in a news release.
Along with diverting funds for his own gain, Washington allegedly filed false income tax documents from 2010-2013.
Washington and alleged co-conspirator, Reza Davachi, also used eBay and PayPal to "unjustly and fraudulently enrich themselves," according to the indictment. Washington allegedly provided Davachi with items sold on charity merchant accounts on eBay and PayPal, which meant they avoided paying listing and transaction fees that would have been accrued if they were sold by a for-profit business.