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Making a Profit from a Non-Profit

|Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court|January 28, 2020|1 min read

Movita Johnson-Harrell, a member of the Pennsylvania House of Representatives, has resigned from office after being accused of using funds for personal items from a non-profit she created to help people struggling with addiction, poverty and mental illness. She founded the non-profit, Motivations, Education & Consultation Associates (MECA), after losing four family members, her father, brother, cousin and son, to gun violence.

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Johnson-Harrell is alleged to have spent more than $500,000 from the charity’s bank accounts to pay for vacations, private school tuition for her grandchildren, designer clothes, matching furs for her and her husband, and a Porsche. She also funneled money from the account into her state representative campaign. The disgraced politician took money from her clients’ government benefits, which the non-profit controlled to provide housing, and then covered it up by lying on her personal financial records, those of the non-profit and her campaign.

Attorney General Josh Shapiro claims that Johnson-Harrell committed tax fraud when she failed to report her MECA spending as income. In addition to making direct transfers to her bank account, Johnson-Harrell wrote numerous checks made out to ‘cash’ whenever she needed extra money. Johnson-Harrell is awaiting trial.

Gregory McCauley Jr., Esq.

About the Author

Gregory McCauley Jr., Esq.

Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court

Gregory McCauley Jr. is an experienced tax attorney who has personally represented more than 1,000 clients in matters ranging from civil tax controversy and IRS examinations to criminal tax defense, U.S. Tax Court litigation, and complex business disputes. His practice is built on a foundation his c...

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