قالب وردپرس درنا توس
Home / Business / Kodak’s privileged scholarship donation raises new concerns about the company’s government loan

Kodak’s privileged scholarship donation raises new concerns about the company’s government loan



On July 29, the high point of Kodak’s recent 2,757% figure, a member of the company’s board of directors, George Karfunkel, and his wife made a donation of 3 million shares of Kodak shares. Kodak – valued at more than $ 100 million at the time – to a synagogue called the Chemdas Yisroel Inc. Congregation, according to a stock register. The synagogue is registered as a charity in New York State.

The donation, which could be claimed as a tax deduction, came amid strong Kodak stock trading that sparked news that the company will receive a $ 765 million loan from the U.S. government to help to manufacture pharmaceutical ingredients.

The timing of the announcement and the issuance of some options on executive actions have led to federal scrutiny. House Democrats requested documents and information on the issue from Kodak, according to a letter sent last week.
The newspaper and Mother Jones first reported on Karfunkel̵
7;s donation.
Kodak said Friday that an internal review conducted by an external law firm will review potential loan-related activity. The company said a special committee of independent directors would oversee the internal review.

A Kodak spokesman told CNN that the Karfunkels’ donation is “within the scope” of this review. The Karfunkels could not be accessed for comment.

Kodak’s website describes George Karfunkel as an expert in financial planning and investment strategy who has held the position on the company’s board of directors since 2013.

On the day of the donation of his wife and wife, Kodak shares reached a minimum of $ 17.50 per share and a maximum of $ 60, meaning the donation could be worth more than $ 100 million. .

On Friday, the agency behind the loan said the deal would be suspended. “The latest allegations of non-compliance raise serious concerns,” the United States International Development Finance Corporation tweeted. “We will not proceed further if these allegations are not resolved.”
On Monday, Kodak stocks halted temporarily after falling as much as 43% earlier in the day.

Laurie Styron, executive director of nonprofit CharityWatch, described the situation involving Karfunkel’s donation. His position on Kodak’s board may have given him “special knowledge that allowed him to predict possible fluctuations in Kodak’s share price,” he said.

He also said that many charities and religious organizations that offer tax deductions are controlled to prevent the emergence of property.

“With Karfunkel with a firm foot on both Kodak and the religious organization receiving the scholarship donation, it is unclear whether there was enough independence from the board for this donation to be properly reviewed and approved at arm’s length before be accepted, “Styron said.

The 2019 New York Charitable Archives describe the Chemdas Yisroel Congregation as an Orthodox Jewish synagogue that uses funds exclusively for religious, charitable, and educational purposes. The documents list George Karfunkel as president of the congregation.

Representatives of the Congregation, Chemdas Yisroel, were unable to comment.




Source link