$270 million meant for veterans and abused children disappears in massive charity fraud scheme: report

Former Florida congressman Matt Gaetz is highlighting allegations that roughly $270 million intended for charitable causes, including veterans and abused children, may have been diverted through a complex financial scheme, according to court filings.

Speaking about the case on OAN, Gaetz said the situation centers on a tax consultant who allegedly gained control of a large charity fund and moved the money into entities he controlled. The allegations stem from court records and an ongoing legal dispute involving several foundations.

The individual identified in the filings is Dallas-based tax consultant Mark Eric Patrick, who reportedly served for years as a consultant to a charity fund used by foundations in Dallas, Kansas City, and Santa Barbara. According to the court documents cited by Gaetz, Patrick helped design the financial structures that were supposed to safeguard the funds.

Investigators later alleged that Patrick abused that position to orchestrate a scheme that transferred control of the fund away from the charities and toward companies under his control.

Gaetz said investigators claim nearly the entire $270 million fund was moved into new entities controlled by Patrick without informing the organizations that owned the money. Instead of withdrawing the funds directly, the filings describe a series of transactions designed to mask the transfers.

According to the allegations, Patrick created a separate nonprofit entity called the DAF Charitable Foundation. Gaetz said the organization was operated as a one-man entity out of Patrick’s Dallas home.

Court filings cited in the discussion allege Patrick then altered the valuation method used to calculate the charity fund’s worth. The change reportedly reduced the fund’s value on paper from about $270 million to roughly $500,000.

After the revised valuation, Patrick’s charity allegedly purchased new shares that gave it majority control of the fund.

Texas congressman Lance Gooden said the case could represent one of the largest charity fraud schemes in US history and called for federal scrutiny. He noted that the funds were intended to support military families and veterans.

As of now, Patrick has not been criminally charged.