|
 |
|
|
According to courthouse documents signed by 3ABN board chairman Walt Thompson, Danny and Linda Shelton bought a house from 3ABN on September 25, 1998, for a mere $6,139. One week later the Sheltons sold the very same house for $135,000. Danny Shelton's raking in a nearly $129,000 profit in just seven days from this real estate deal raised several questions:
Since 3ABN's Form 990's are publicly available documents, we can now answer the fourth question above. The attachment to the 1998 Form 990 has the following entries:
The above figures claim that the house was sold at a $46,652.05 loss, the very house that the Sheltons sold one week later at a nearly $129,000 profit. The attachment to the 1998 Form 990, as can be seen below, also shows Danny Shelton as making $49,862.66 in 1998, and Linda Shelton as making $44,334.10. Given these amounts, and given the fact that the 990 claims the house as a loss, it seems apparent that 3ABN's "gift" of the house is not being reported as part of the Sheltons' compensation. Thus, according to 3ABN:
By reporting the sale as a loss rather than as compensation to the Sheltons, 3ABN hid from the IRS the fact that this sale was personally benefiting officers and directors of this 501(c)3 non-profit corporation. We hope this was unintentional. One is led to ask why Danny Shelton, who as president of 3ABN should have been looking out for 3ABN's best interests instead of his own, did not have 3ABN sell the home at the hefty profit instead of himself. If the 990 does not report the "gift" of the house as compensation, it seems highly unlikely that Danny's W-2 reported it as part of his compensation either. This leaves us with just two questions remaining of our original four:
|
|||||||||||||||||||||||||||||||||||||
|
Save-3ABN.com
|
 |
