Denis Calabrese, the former president of Arnold Ventures (f/k/a Laura and John Arnold Foundation) for eight years, according to a lawsuit alleging that he recieved millions of dollars of fund from kickbacks he received from grants he distributed as president of the Arnold Foundation.
“As director and President of LJAF, Calabrese covertly collected over $2 million in kickbacks from LJAF contractors in a web of offshore and domestic accounts,” a lawsuit from the Arnold Foundation states. “Despite annually attesting in writing to LJAF that he had no material financial interest in any entity with which LJAF did business, Calabrese fragrantly abused his authority by causing the retention of two contractors with which he had undisclosed financial arrangements.”
“Every dollar Calabrese recieved as part of his scheme was a dollar not spent in service of LJAF’s charitable mission,” the suit states.continued “Calabrese concealed his kickback scheme not only from LJAF, but also the IRS.”
Calabrese funneled the kickbacks to offshore accounts to conceal the money from the IRS, the suit states.
While Laura and John Arnold are not implicated in any of Calabrese’s crimes, the lawsuit raises serious questions about their leadership of the foundation – specifically, their oversight and decision-making.