Shaking Wyclef’s Foundation?

Just when it seemed Wyclef Jean couldn’t get anything other than positive press, The Smoking Gun has unearthed IRS records showing that the musician’s Yele Haiti Foundation has sent hundreds of thousands of dollars to Wyclef himself or companies in which he has a controlling interest.

The Haiti-born musician has been in the news a lot lately for his part in relief efforts following the 7.0 earthquake that devastated the small island nation that once was his home, killing scores of thousands and destroying much of its already-fragile infrastructure.

Those watching from home were urged to send a text message containing the word “Yele,” which would authorize a $5 phone bill charge and go to toward relief efforts through his Yele foundation.

Jean even reportedly landed in the capital of Port-au-Prince the day after the quake hit Jan. 12 to provide assistance in person.
However, The Smoking Gun’s findings put his foundation’s ethics into question.

At issue in tax returns covering the calendar years between 2005 and 2007 are $250,000 that went to Telemax S.A., a Haiti-based company in which Jean and business partner Jerry Duplessis “own a controlling interest,” according to the tax filings.

The explanation in the filing says the fee was below market level and using Telemax was “the most efficient way of providing” outreach services in Haiti.

Also in the filing is $100,000 paid to Jean himself for performing at a benefit concert in 2006, which the return also said was “significantly below market value.” The money went to a Manhattan recording studio called Platinum Sound, owned by Jean and Duplessis.

Also mentioned in the 2006 filings are $300,000 worth of “consultant” payments and nearly $225,000 in promotion and PR costs. These are not explained further in the filing.

Apparently, much of the $1 million the Yele foundation received in 2006 was from a pregnant Angelina Jolie, who sold exclusive photos of herself to People magazine under the condition that the money go to Jean’s charity.

The Wyclef Jean Foundation, which operates as the Yele Haiti Foundation, has apparently operated for 12 years but has only filed tax returns in 2009, according to The Smoking Gun.

The foundation provides scholarships for students as well as disaster relief.