The Shriners Summary - Two Years On
By Cassandra 'Sandy' Frost
Here is a brief explanation of this investigation
and resultant findings, from which you can draw
your own conclusions.
I began investigating the Shriners in March, 2006
after getting an email from a Shriner
whistleblower who was looking for a journalist
willing to listen to his allegations. It appears
that he came up against a media blackout of
sorts, as it took him three years to find someone
willing to evaluate his allegations. It just so
happened that I had finished up a three year
investigation into the claims of another non
profit group the month before and after checking
out the whistleblower and the online analysis of
Shriner tax returns done by a former IRS agent,
wrote back that I was able to hit the deck
In summary, there are two Shriners non profit
corporations. First is the fraternity made up of
about 390,000 red Fez wearing men who drive the
little cars in the parades and meet with secret
handshakes at their 191 mosques or temples. Their
exempt purpose is to "have fun while helping
kids" as they support and operate the charitable
corporation, the Shriners Hospitals for Children
(SHC), a network of 22 hospitals that provides
free medical care to crippled and burned
children. SHC is worth about $11 billion.
This series of articles has evolved from finding
evidence of temple crime, tax fraud and
retaliating against those who question them in
2006 to, in 2007, advancing the shameful
possibility that those holding offices of public
trust may have used their positions for private
Here is a list of findings to show how we got
from there to here.
2006 findings describe how:
* The Shriners failed to disclose on their 990
exempt organization tax returns (990s)
information about affiliations with other non
profit groups such as Masons, Knights Templar,
* The Shriners failed to disclose on their 990s
the misuse of charitable donations to fund
multiple real estate mortgages from the Shriners
Hospitals for Children to Shriner executives,
officers and employees.
* The Shriners failed to disclose on their 990s a
Congressional lobbyist and his activities that
include working on their behalf against the
* The Shriners failed to disclose on their 990s
changes to governing documents.
* The Shriners experienced huge cash losses after
an undisclosed change in governing documents.
* The Shriners fraternal described their
activities to the IRS as a "lodge system that
promotes brotherhood" while their by-laws filed
with the state of Iowa state they oversee and
control the Shriners Hospitals for Children.
* The Shriners Hospitals for Children reported
different answers to the same question asked by
the IRS and the State of Colorado Charitable
registration unit, which is where they are
* The Shriners network of 191 temples has been
granted over 1,900 non profit Employee
Identification Numbers or EINs, most of which are
not required to file tax returns
* The Shriners have, for over a decade, punished
and retaliated against those who question their
expenditures and finances.
* The Shriners used a defamation lawsuit to
silence a whistleblower and a tax analyst.
* Shriner leaders openly discussed crime, sexual
harassment, advised the members to break HIPPA
laws and told offensive jokes at their
Treasurer's Association meetings.
* Leaders advised the Treasurers Association to
"disclose the minimum to the IRS."
* Shriner executives prosecuted only 19% of known
crimes because "they don't want the bad press or
their names in the newspapers."
* Shriner treasurers learned of ongoing crimes at
the Treasurers Association meetings, some of whom
are sworn to uphold the law of the land but are
expected to turn a blind eye to protect the
2007 findings that describe how:
* The Shriners used "kangaroo courts" to punish
whistleblowers in an effort to intimidate them
into silence rather than punishing the criminals.
(This was also the subject of a New York Times
front page article that ran on March, 19, 2007)
* The Omar Shrine temple threw out the
subordinate Dorchester Shrine club's officers,
replaced them with their own "yes men" and
instead of sending money to the hospitals,
instead paid off the club's mortgage.
* The Omar Temple's potentate used the group's
newsletter for free advertising.
* The Shrine Treasurers meeting minutes were
taken offline after it was discovered that
ongoing crime is openly discussed at their
meetings but not prosecuted.
* The Gwinnett Shrine Club raised money "for the
hospitals" through illegal "Texas Hold 'Em"
tournaments without being registered as a Georgia
charity and without filing tax returns.
* The Yaarab Shrine Temple failed to report the
Gwinnett Shrine club's illegal fundraising on
their group tax returns.
* The Shriners used a suspended "for profit"
corporation to organize and hold their annual
* A secret group made up of invited Shriner
leaders, The Royal Order of Jesters, was the
subject of a complaint that accused them of
holding drunken orgies.
* The fraternity contributed only to 0.5% or one
half of one percent to the hospital's income.
* The Shriners used their tax-exempt status to
avoid paying over $450,000 in HQ property taxes.
* The Thirteenth Circuit Court of Hillsborough
County, Florida, filed a motion to dismiss after
the Shriners failed to do anything to "prosecute"
the defamation lawsuit filed against a
whistleblowers and a tax analyst.
* The Shriners used a defamation AKA SLAPP
lawsuit to circumvent reporter shield laws.
* Two Shriner Hospitals for Children received FDA
warning letters after pre-market inspections
found that they failed to obtain informed
consent, failed to report adverse effects, failed
to follow protocols, and failed to keep accurate
patient and device records.
* The doctor in charge of the clinical studies
apparently used the non profit resources provided
by both the University of Cincinnati and SHC,
Cincinnati, as well as government grants, to
invent and patent a burn treatment that he,
thorough his own biotech start-up company, sold
for $1.5 million with another $4.8 promised after
* This same doctor allegedly failed to recuse
himself as principal investigator after being
told to do so by the Institutional Review Board
overseeing his clinical study.
* A number of Shriner executive's mortgages were
repaid in unusually short times that also
"randomly coincide" with the "buy low, sell high"
activity of a company who has been marketing a
burn treatment co-developed with SHC.
This year holds the promise of more news digging.
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From http://sandyfrost.newsvine.com/ Copyright
© 2008 by Sandy Frost. Used by permission.
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Msgr. Jouin, 1930
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