Senate report outlines Reed money laundering scheme

Gainesville, GA (June 22, 2006) - A report released by a Republican-led U.S. Senate committee today provides full details on a complex money laundering scheme Ralph Reed engineered to funnel funds through non-profit groups, describing the groups as "conduits to pay Reed."

   Specifically, the report outlines numerous examples of Reed and Abramoff directing funds through non-profits to Reed's firm, subcontractors he recruited, or such personal perks for Ralph as a posh golf trip to Scotland. Those groups include the National Center for Public Policy Research, Americans for Tax Reform, The National Conservative Alliance, The Faith and Family Alliance and the American International Center.

   The report also provides proof that Reed specifically located and set up tax exempt organizations solely in order to hide the source of funds he received from convicted felon Jack Abramoff and his clients. All told, Reed and Abramoff laundered millions through non-profit groups.

   "Non-profit organizations receive special tax status specifically because they are set up to benefit society as a whole rather than enriching a single individual. Ralph Reed apparently thinks the purpose of tax-exempt organizations is not to better mankind, but to put money in this pocket. By funneling millions through non-profits, Ralph thumbed his nose at the same tax laws the rest of us are forced to follow," said Cagle spokesman Brad Alexander.

   "If Ralph's conduct in this matter is not illegal - and it may well be
- then it should be. We strongly encourage the Senate Finance Committee to follow this evidence wherever it may lead, and to refer appropriate issues to criminal investigators and the IRS," Alexander continued.

   Full details of the report are available on line at www.indian.senate.gov .