March 22, 2007 – Tony Alamo Implicated in Charity Fraud
The Chronicle of Philanthropy
March 22, 2007
Nonprofit Group Sued for Selling Donated Katrina Mattresses
Tempur-Pedic International has sued a New Jersey nonprofit organization in federal court for $15-million, accusing it of selling half of the 8,000 mattresses the company donated to Hurricane Katrina refugees, reports the Fort Smith Times Record of Arkansas.
The company alleges that instead of distributing mattresses to New Orleans victims, officials at Waste to Charity, in Woodbury, N.J., negotiated side deals to sell 4,000 of them at drastically discounted prices, for a profit of $500,000.
The other half of the mattresses are reportedly sitting in an Arkansas warehouse owned by a cult leader and convicted felon named Tony Alamo, the newspaper said.
The company discovered the location of the missing goods when it sent an employee undercover, along with the original informant against the nonprofit group, to negotiate another illegal sale.
Officials of Waste to Charity were not quoted on their position on the allegations in the lawsuit.
The U.S. Magistrate Court has requested a report on activities surrounding the case by June 4, 2008, and set a trial date of January 7.