Ric Grenell Uncovers $26 Million in ‘Fake Revenue’ at Kennedy Center — Vows Criminal Charges for Biden Appointees
President Trump’s choice to run the Kennedy Center has said he has found $26 million in fraudulent revenue.
Addressing several board members during a dinner in the White House’s State Dining Room, Grenell stated that a review of the center’s budgets from the past two years had uncovered what he described as “$26 million in phantom revenue—fake revenue.”
“It’s criminal,” Grenell said. “We’re going to refer this to the U.S. attorney’s office here.”
Why Would the Kennedy Center Report Revenue It Didn’t Have?
Organizations, especially non-profits like the Kennedy Center, might report inflated revenue for several reasons, often related to financial reporting and management:
Meeting Financial Targets or Expectations: Reporting higher revenue can make the organization appear financially healthier than it actually is. This can be crucial for maintaining donor confidence, securing future funding, or meeting internal or external financial targets.
Loan or Grant Applications: Inflated revenue figures can make the organization look more stable and capable of repaying loans or fulfilling grant conditions, potentially leading to approval of additional funding.
Avoiding Scrutiny or Intervention: By showing a stronger financial position, the organization might avoid closer scrutiny from oversight bodies, auditors, or regulatory agencies.
Internal Morale and Operations: Sometimes, reporting higher revenue can be an internal strategy to boost morale or justify certain operational decisions, even if it’s not accurate
How Does This Benefit Them?
Reporting phantom revenue can provide several benefits, albeit temporarily or deceptively:
Enhanced Reputation: A stronger financial appearance can enhance the organization’s reputation among stakeholders, including donors, sponsors, and the public.
Access to More Resources: With a seemingly robust financial statement, the Kennedy Center might attract more donations, grants, or loans.
Delaying Financial Distress: By masking the true financial situation, the organization can delay the need for drastic measures like budget cuts, layoffs, or program reductions.
Who Does It Defraud?
The act of reporting false revenue can defraud several parties:
Donors and Sponsors: If the Kennedy Center reported higher revenue to attract donations or sponsorships under false pretenses, it defrauds those who gave money based on misleading information.
Government and Regulatory Bodies: If public funds or tax exemptions are involved, misrepresenting financial health can be seen as defrauding the government or taxpayers.
Creditors and Lenders: If loans were secured based on inflated financials, lenders are defrauded as they are not getting the full picture of the organization’s ability to repay.
Stakeholders and the Public: The general public and other stakeholders, including employees and board members, might be misled about the organization’s financial health, affecting their decisions and trust.
Addressing several board members during a dinner in the White House’s State Dining Room, Grenell stated that a review of the center’s budgets from the past two years had uncovered what he described as “$26 million in phantom revenue—fake revenue.”
“It’s criminal,” Grenell said. “We’re going to refer this to the U.S. attorney’s office here.”
Why Would the Kennedy Center Report Revenue It Didn’t Have?
Organizations, especially non-profits like the Kennedy Center, might report inflated revenue for several reasons, often related to financial reporting and management:
Meeting Financial Targets or Expectations: Reporting higher revenue can make the organization appear financially healthier than it actually is. This can be crucial for maintaining donor confidence, securing future funding, or meeting internal or external financial targets.
Loan or Grant Applications: Inflated revenue figures can make the organization look more stable and capable of repaying loans or fulfilling grant conditions, potentially leading to approval of additional funding.
Avoiding Scrutiny or Intervention: By showing a stronger financial position, the organization might avoid closer scrutiny from oversight bodies, auditors, or regulatory agencies.
Internal Morale and Operations: Sometimes, reporting higher revenue can be an internal strategy to boost morale or justify certain operational decisions, even if it’s not accurate
How Does This Benefit Them?
Reporting phantom revenue can provide several benefits, albeit temporarily or deceptively:
Enhanced Reputation: A stronger financial appearance can enhance the organization’s reputation among stakeholders, including donors, sponsors, and the public.
Access to More Resources: With a seemingly robust financial statement, the Kennedy Center might attract more donations, grants, or loans.
Delaying Financial Distress: By masking the true financial situation, the organization can delay the need for drastic measures like budget cuts, layoffs, or program reductions.
Who Does It Defraud?
The act of reporting false revenue can defraud several parties:
Donors and Sponsors: If the Kennedy Center reported higher revenue to attract donations or sponsorships under false pretenses, it defrauds those who gave money based on misleading information.
Government and Regulatory Bodies: If public funds or tax exemptions are involved, misrepresenting financial health can be seen as defrauding the government or taxpayers.
Creditors and Lenders: If loans were secured based on inflated financials, lenders are defrauded as they are not getting the full picture of the organization’s ability to repay.
Stakeholders and the Public: The general public and other stakeholders, including employees and board members, might be misled about the organization’s financial health, affecting their decisions and trust.
Thanks -
What does the Kennedy Center do?
I reckon so do RINOs.