Nonprofit news roundup for Aug. 8, 2008

Hospital executive, shelter director arrested for fraud

FBI agents arrested Rudra Sabaratnam, the top executive of a hospital, and Estill Mitts, the operator of a homeless shelter, in Los Angeles, Calif., on charges the two used homeless people to commit insurance fraud, CNN reported Aug. 7 (see homeless story). The indictment alleges that Sabaratnam and Mitts lured homeless people by offering to pay them for acting as hospital patients and billed the government for the unnecessary treatments.

Australia’s richest man vows to leave fortune to charity

Andrew Forrest, Australia’s richest man and owner of Fortescue Metals Group, says he’ll give away nearly all of his $8-billion fortune to charity before he dies, PerthNow reported Aug. 5. Forrest, who already has donated millions of dollars to the Australian Children’s Trust and Aboriginal causes, did not say which charity would receive his fortune.

New Orleans nonprofit bills $1.8 million for unmade repairs

Nonprofit New Orleans Affordable Homeownership Corp. (NOAH) suspended operations last week amid allegations that it billed $1.8 million for repairs that its contractors did not make to hurricane-damaged homes, The Times-Picayune reported Aug. 6 (see hurricane story). Documents suggest the organization billed for remediation services done by volunteers.

In brief:

* Kristin Bailey, policy strategist and philanthropy specialist for the Senate Finance Committee, left her post to join Sen. Barack Obama’s Democratic presidential campaign, Government and Politics Watch reported Aug. 6.

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