A lawyer for Kermit Washington Thursday blasted the former National Basketball Association player’s arrest in Los Angeles on financial fraud charges scheme as a “travesty” and said her client is innocent of the allegations.
The indictment, returned this week by a federal grand jury in Kansas City, Missouri, alleges that Washington used a charity he founded and operated, Project Contact Africa, to defraud donors, eBay, PayPal and the Internal Revenue Service, according to U.S. Attorney Tammy Dickinson of the Western District of Missouri.
Washington, 64, is charged with corruptly interfering with the internal revenue laws, conspiracy to commit wire fraud, obstruction of justice and aggravated identity theft, according to the U.S. Department of Justice.
Washington’s attorney, Karren Kenney, said that although prosecutors “convinced” a grand jury to return the indictment, her client is innocent.
“Given the secretive, biased and unfair nature of the federal grand jury process, with no right to have a defense attorney be involved in the proceedings, the indictment is suspect,” she said. “The prosecutor controls what the grand jury hears — and doesn’t — and there have been plenty of examples of overzealous prosecutors who are not interested in true justice, using the grand jury process for their own personal motives.”
Federal authorities contend that in order to induce former professional athletes and others to make donations to PCA, Washington falsely represented that 100 percent of the donations would go to Africa.
Instead, the government alleges, Washington diverted charitable donations from PCA to buy gifts and cover personal expenses, including rent, vacations, jewelry and entertainment.
“Individuals who use charitable organizations to defraud donors and evade tax obligations inflict substantial harm on every U.S. taxpayer and cause untold damage to well-intentioned charitable endeavors,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
The indictment also alleges that Washington referred former professional athletes to former San Diego Chargers star-turned-attorney Ron Mix, whose practice focused on the filing of workers’ compensation claims on behalf of ex- athletes.
“In exchange for the referrals, Mix made payments to PCA and claimed those amounts as charitable deductions on his personal tax returns,” according to a DOJ statement.
Mix, a member of the Pro Football Hall of Fame, pleaded guilty Monday in federal court in Missouri to a tax fraud charge in connection with the case. He faces a potential sentence of three years in prison and $250,000 fine.
Mix played for the Chargers from 1960 to 1969 and then two years for the Oakland Raiders. Many of his clients are former professional athletes who made claims for injuries suffered during their playing days, usually years after their careers ended, the San Diego Union-Tribune reported.
Washington played for the Los Angeles Lakers from 1973-78; for the then- San Diego Clippers from 1978-79; and later for the Portland Trail Blazers until his retirement in 1982.
Washington’s NBA career was best remembered for punching opposing player Rudy Tomjanovich during an on-court fight in 1977, almost killing Tomjanovich.
Washington, who was arrested Tuesday in Los Angeles and made his initial appearance at the downtown federal courthouse, was ordered to surrender his passport. He was released on bond and must wear a location monitoring device.
His next court date is tentatively scheduled for June 16 before a U.S. magistrate judge in Missouri.
—Staff and wire reports