According to the Times, the IRS is looking into whether the Berg family, which runs the Kabbalah Centre, used "nonprofit funds [for] personal enrichment." Subpoenas have been issued to the Centre and to Spirituality for Kids, and Raising Malawi, another Madonna charity affiliated with the Berg family, is cooperating with the investigation.
The Times has one detail that doesn't bode well for the Bergs: Investigators have uncovered an August 2010 email from the Kabbalah Centre's former chief financial officer that basically lays out the case for fraud and tax evasion.
"I recently uncovered instances of income tax fraud at the Kabbalah Centre — instances which could bankrupt several of the directors involved … this is very serious business," the former CFO, Nicholas Vakkur, wrote in an email that circulated among high-level officials at the center. "I have little choice but to cooperate with the IRS and bring down the entire Kabbalah Centre," Vakkur wrote, adding a plea that "someone in authority" try to "reason" with center Chief Executive Karen Berg.
Sounds like she wouldn't listen to reason.
[Photo via Getty Images]