by Gary Snyder
Greg
Mortenson
has finally caught a break. A federal judge in Montana dismissed
a lawsuit filed by four readers who charged “Three Cups of Tea” author Greg
Mortenson engaged in a massive fraud by claiming his bestselling
books were works of nonfiction when some the events in the books are now
alleged to be fabrications.
The suit said the author and others engaged in
a pattern of racketeering to use fabricated or inflated claims in his books to
help portray Mortenson as a hero to boost book sales and increase donations to
the author’s nonprofit group, the Central
Asia Institute.
The complaint said
Mortenson and his co-defendants “continued to misrepresent that the contents of
‘Three Cups of Tea’ and ‘Stones Into Schools’ were true, nonfiction accounts of
what really happened, when, in fact, the contents were false and the accounts
did not happen.”
“The enterprise’s
fraudulent scheme was to make Mortenson into a false hero, to sell books
representing to contain true events, when they were false, to defraud millions
of unsuspecting purchasers out of the purchase price of the books, and to raise
millions of dollars in charitable donations for CAI,” the suit says.
Charges of fabrications in Mortenson’s books were raised last
year by author and mountaineer Jon Krakauer and the CBS News program, “60 Minutes.”
Last month, Montana
Attorney General Steve Bullock announced a settlement with Mortenson and CAI in
which the author is required to pay $1 million in restitution to his own
charity “for his past financial transgressions.”
According to the
attorney general, under Mortenson, CAI made bulk purchases of his books at
retail prices with charitable funds that were donated to build schools in
southwest Asia. At the same time,
Mortenson received and kept royalties from those sales.
CAI also used
charitable funds to pay expensive advertising costs for the books. Mortenson
also accepted travel fees from book event sponsors at the same time CAI was paying
all his travel expenses using charitable funds donated to build schools.
The Montana attorney
general did not examine the alleged fabrications in Mortenson’s books.
In dismissing the
complaint, Judge Haddon said the plaintiffs had failed to offer enough evidence of a
pattern of fraud to justify the legal action.
“Plaintiffs assert
they suffered concrete financial loss when they paid full price for a
nonfiction book when it was fiction,” he said.
"The complaint
does not state, nor is it possible to ascertain, whether plaintiffs would have
purchased the books if: (1) the books were labeled or marketed as fiction; or
(2) the readers knew portions of the books, as claimed, were fabricated,” he
said.
“Plaintiffs’ overly
broad statements that they paid approximately $15 for the books because they
were represented as true does not suffice,” the judge said. (link)
Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Vermont Public Radio, Miami Herald, National Public Radio, Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), FOX2, ABC Spotlight on the News, WWJ Radio, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, The Chronicle of Philanthropy, St. Petersburg Times, B, USA Today Topics, , Newsweek.com, Responsive Philanthropy Magazine, New York Times...and many more • Nonprofits: On the Brink (iUniverse, 2006)
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