Wednesday, April 3, 2013

Khloe Kardashian speaks out after husband Lamar Odom is accused of 'operating a fraudulent $2.2 million cancer charity'

Khloe Kardashian speaks out after husband Lamar Odom is accused of 'operating a fraudulent $2.2 million cancer charity'

By Daily Mail Reporter

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Khloe Kardashian has spoken out to slam allegations her husband Lamar Odom has been operating a fraudulent cancer charity.

On Monday Lamar was accused by ESPN for failing to give considerable money raised to children in need following an investigation.

But now Khloe has written messages to her online fans rubbishing the claims.

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Scandal: A new shocking investigation has reportedly revealed that a charity set up by Khloe Kardashian's husband Lamar Odom has allegedly failed to give considerable money raised to children in need

Scandal: A new shocking investigation has reportedly revealed that a charity set up by Khloe Kardashian's husband Lamar Odom has allegedly failed to give considerable money raised to children in need

Slammed: Khloe Kardashian has written on Twitter and on her blog insisting the allegations are false

Slammed: Khloe Kardashian has written on Twitter and on her blog insisting the allegations are false

She first of all wrote to one fan on her Twitter page: 'I would never do anything like that point blank. But hey. People will believe whatever they want no matter what you do.'

The 28-year-old then posted a note on her own website to set the record straight.

She wrote on Tuesday night: 'It is unfortunate that my husband has been the target of an attack on athletes’ charities, although he has personally contributed approximately $ 2.2 million to his foundation, Cathy’s Kids, to fulfill its charitable purposes that include helping underprivileged inner-city youth.

Speaking out: Khloe turned to her own blog to speak out about the allegations, insisting they haven't committed any fraudulent behaviour

Speaking out: Khloe turned to her own blog to speak out about the allegations, insisting they haven't committed any fraudulent behaviour

'The millions of dollars personally contributed by Lamar constituted more than 90% of the money raised by the foundation. All of the funds donated by Lamar and the other contributions to Cathy’s Kids were used for one of the foundation’s intended charitable purposes. Not one penny went to help Lamar personally or any member of his family.'

She went on: 'No charitable funds were misused, and the IRS has repeatedly given Cathy’s Kids a clean bill of health, confirming that there were no improprieties.'

Her comments come on the same day Khloe and her husband removed all of the items for sale on their eBay store - coinciding with the 'fraudulent' allegations.

The ESPN investigation, called 'Outside The Lines', claimed that none of the $ 2.2 million accumulated had been given to any cancer-related causes since Cathy's Kids was founded in 2004.

'Zero items': Khloe and Lamar have now deleted all items from the eBay store, which had said each item will have a portion go towards the charity

'Zero items': Khloe and Lamar have now deleted all items from the eBay store, which had said each item will have a portion go towards the charity

And as the findings of the investigation were released, the star couple then seemed to delete all items up for auction on their joint eBay store.

Up until they removed the items on Tuesday, Khloe and Lamar had been selling everything from pre-owned clothes, including sports bras of Khloe's, as well as sunglasses and other accessories.

According to Radaronline.com, they had made thousands of dollars through the store, with a total of $ 1,425.06 after their last day of sale on Monday.

On the site the couple state on each item that 'a portion of the proceeds benefit Cathy's Kids', which was founded by Lamar in 2004.

Ceased trading? The couple removed the items on the same day the investigation was revealed, having formerly made thousands from auctioning their clothing and accessories

Ceased trading? The couple removed the items on the same day the investigation was revealed, having formerly made thousands from auctioning their clothing and accessories

But by Tuesday the shop was empty, with the message that there is now 'currently no items for sale', with a returned entry of '0 items'.

A representative for the couple has been contacted by the MailOnline for comment on the decision to remove the items.

Earlier this week questions were raised about the use of the money after investigators rifled through eight years of the NBA player's tax records.

Instead of funds going to cancer-related patients, it has reportedly been mostly used to finance two elite youth basketball travel teams.

But Khloe has again defended this decision and complaint, writing on her blog: 'Cathy’s Kids was formed with several purposes in mind, including benefitting underprivileged youth and cancer research. A decision was ultimately made that the charity should focus on one of those purposes â€" to help enrich the li ves of underprivileged inner-city youth.

'It accomplished that goal. Cathy’s Kids helped fund multiple AAU basketball teams providing underprivileged youth with opportunities enriching their lives, providing financial support for coaching and travel to tournaments, helping inner-city youth on a path toward success and leading many participants to go on to college.'

Involved: Khloe has been heavily involved with the charity by setting up a personal eBay account with her husband in which they have been selling off personal effects to raise funds

Involved:  Khloe has been heavily involved with the charity by setting up a personal eBay account with her husband in which they have been selling off personal effects to raise funds

ESPN says it uncovered that at least 60 percent of the $ 2.2 million has helped fund the AAU teams.

The sole employee on the books for the charity is said to be Lamar's high school coach and best man at his wedding to Khloe, Jerry DeGregorio.

Acting as secretary for Cathy’s Kids - named in honor of Odom's late mother who died of stomach cancer - from 2004 to 2011, he was reportedly paid a median annual salary of around $ 72,00, despite the charity operating at a loss since it was created.

Cathy's kids is currently $ 256,000 in debt largely due to a loan Odom made to the charity, according to his business manager and charity’s treasurer, Lester Knispel.

The new ESPN revelations now allegedly see Odom in danger of violating tax law as, as ESPN states, if a charity spends funds not consistent with its stated mission, including paying someone like DeGregorio a salary, it could be considered as fraud by the IRS or state attorney general’s office.

It's my money: ESPN has apparently since sought a comment from Odom about his charity's spending habits and the basketballer is reported to have simply responded with: 'It¿s my money'

It's my money: ESPN has apparently since sought a comment from Odom about his charity's spending habits and the basketballer is reported to have simply responded with: 'It’s my money'

If fraudulent activity is found, prosecutors could in turn file charges against the LA Clippers star.

ESPN has apparently since sought a comment from Odom about his charity's spending habits.

The basketballer reportedly simply responded with: 'It’s my money.'

Lamar's wife Khloe has been heavily involved with the charity by setting up a personal eBay account with her husband in which they have been selling off personal effects, including items from Khloe's designer wardrobe, to raise funds.

She has even taken to her own personal blog to promote the charity and gush about her husband's efforts.

Gushing: Khloe has taken to her own personal blog to promote the charity and gush about her husband's charitable efforts

Gushing: Khloe has taken to her own personal blog to promote the charity and gush about her husband's charitable efforts

'Every time I see him working with Cathy Kids. I fall more and more in love with him,' she once wrote.

'He’s made me a better person and has taught me that anyone can make a difference if you have the desire and passion to do so.'

The Outside The Lines report also investigated more than a hundred other charities attached to high profile athletes.

It revealed that 115 of the big name charities were not handing out raised profits effectively o r properly.

It found that more than 74 percent were not operating under the Better Business Bureau and the National Committee for Responsive Philanthropy standards.

MailOnline has reached out for a comment from Khloe and Lamar's representatives, but have yet to get a response.

Employee: The sole employee on the books for the charity is said to be Lamar's high school coach and best man at his wedding to Khloe, Jerry DeGregorio, seen here walking down the aisle with Khloe's maid of honour Kim

Employee: The sole employee on the books for the charity is said to be Lamar's high school coach and best man at his wedding to Khloe, Jerry DeGregorio, seen here walking down the aisle with Khloe's maid of honour Kim 

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