Black Lives Matter facing defrauding scrutiny is clearing moment for Black America
Color Us United spokesman Christian Watson says defrauding allegations against the national Black Lives Matter organization means the end of a era.
Black Lives Matter tax documents show executives within the organization raked in millions while the group overall ended the year nearly $9 million in the red.
The Black Lives Matter Global Network Foundation ended the financial year with a deficit of $8,559,748 while still paying companies owned by people close to the organization millions, a number that represents a staggering decline from the $42 million it banked last year after expenses, The New York Post reported Wednesday.
Tax documents posted online show the group raked in about $8.5 million, but spent roughly $17 million on expenses. A large chunk of the money was spent making payments to companies owned by individuals close to the group, including $1.69 million "for management and consulting services" paid to a company owned by Shalomyah Bowers, who replaced embattled former leader Patrisse Cullors amid financial scandals of her own.
BLACK LIVES MATTER DONATIONS DRASTICALLY PLUMMETED BY NEARLY $70 MILLION
A woman holds a Black Lives Matter flag during an event in remembrance of George Floyd. (Kerem Yucel / AFP via Getty Images)
Black Lives Matter Grassroots, a sister of organization of Black Lives Matter, has accused Bowers in a lawsuit of "siphoning" millions of the organization's dollars to his company.
"Instead of using the donations for its intended purposes, Mr. Bowers diverted these donations to his own coffers," the lawsuit says.
But Bowers wasn't the only person to benefit from the group's large expenditures, with board member Danielle Edwards' company receiving $1,063,500 for "consulting services," according to an auditor review of the documents.
Patrisse Cullors, co-founder of Black Lives Matter. (Jerritt Clark/Getty Images for NILC)
BLM CO-FOUNDER'S NONPROFIT FLOODED WITH SECRET CASH FROM TECH TITAN FUND
Meanwhile, Cullors' brother, Paul Cullors, saw his security company Black Ties LLC paid a total of $756,330, which was on top of his $125,000 salary and $15,000 that was listed as "other compensation."
"A sibling of the former Executive Director owned a security and protection company, which was paid $1,602,185 for security services," the auditor noted, pointing out that Paul Cullors' security firm was paid a similar amount the previous year.
Black Lives Matter also paid $600,000 to an unidentified former board member’s consulting firm "in connection with a contract dispute."
A Black Lives Matter flag is displayed during a demonstration in Los Angeles. (Stanton Sharpe/SOPA Images/LightRocket via Getty Images)
CLICK HERE TO GET THE FOX NEWS APP
The large financial hit left the organization with only $30 million in assets, down $11.75 million from the start of the year. Overall, Black Lives Matter has spent about $60 million of the $90 million it has raised.
Black Lives Matter did not immediately respond to a Fox News request for comment.
The hottest stories ripped from the headlines, from crime to courts, legal and scandal.
