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January 16, 2010 @ 11:05 AM | Written by: Karen Civil

Wyclef Responds To Yele's Previous Financial Troubles

Since the tragedy that is the Haiti earthquake happened, Wyclef Jean has been the most vocal celebrity in support of the battered country. For good reason, too. ‘Clef, a Haitian himself, has always spoke tirelessly in support of Haiti and how much attention needed to be given to a country who is statsically the poorest country in the Western Hemisphere. Twitter users likely have seen the updates which broadcasted Wyclef’s charity organization, Yele. By texting “501501,” an additional five dollars would be charged to that person’s cell phone bill ultimately donating it to the relief fund.

The foundation has brought in hundreds of thousands of dollars and is expected to tally over $1M in its entirety. However, the foundation has had its flaws in the past. The Smoking Gun reports Yele Haiti Foundation has only has only filed tax returns for three years of its 12 year existence (2005, 2006 and 2007).

A $31,200 rent payment was also made in 2007 to Platinum Sound. The rent, tax returns assure, “is priced below market value.” The recording studio also was paid $100,000 in 2006 for the “musical performance services of Wyclef Jean at a benefit concert.” That six-figure payout, the tax return noted, “was substantially less than market value.” The return, of course, does not address why Jean needed to be paid to perform at his own charity’s fundraiser. But the largest 2006 payout–a whopping $250,000–went to Telemax, S.A., a for-profit Haiti company in which Jean and Duplessis were said to “own a controlling interest.”

The article and form(s) go on to explain other instances where there was suspicious movement of throughout the years for performances and appearances. Yet and still, this is not a plea to discontinue donating to Haiti during their time of need. If anything, it’s more of a call.

To read these entire piece, click here.

Hugh Locke, President of Yéle Haiti, countered the notion in a statement that was issued to AllHipHop.com early Saturday morning.

Wyclef Jean, the founder of Yéle Haiti has never profited from his organization. It’s a shame that during this international emergency, we have had to divert resources away from our response efforts to address these allegations,” Locke said.

Locke also told the Post, “I think people should be very comfortable that any money given to Yele Haiti is going 100 percent to emergency relief.” He also stated that Wyclef’s status in Haiti gives them more access to those that truly need the money.

Furthermore, Locke stated that the organization has used monies raised for scholarships, a soccer team, various educational trips, employs natives and also established a food program that distributed supplies after a 2008 hurricane.

At press time, the Yéle Haiti Foundation had raised over $2 million in contributions, largely through texted donations.

Locke, through Yéle Haiti’s PR company, sent AllHipHop.com a list of “Financial Facts,” which can be seen below.



Fact: Yéle Haiti, originally called the Wyclef Jean Foundation, filed a tax return in 2000 and then suspended activities until 2005 and so was not required by law to file a tax return until it resumed operation.

Fact: Yéle Haiti received a clean bill of health in independent external audits conducted in 2005, 2006, 2007 and 2008 by the firm of Tempesta & Farrell, P.C..

Fact: Yéle Haiti was guided by the firm of Grant Thornton LLP to ensure that all transactions involving board members Wyclef Jean and Jerry Duplessis were conducted to fully comply with both the spirit and letter of the law governing such matters.

Fact: Yéle Haiti offices are located in Platinum Sound, the recording studio owned by Wyclef and Jerry Duplessis in order to save money. The organization pays only $2,600 a month for the space and a shared reception service, instead of considerably more for the same arrangement in midtown Manhattan.

Fact: Wyclef Jean was paid $100,000 in connection with a benefit concert in Monte Carlo in 2006, which was organized by a for-profit organization. The vast majority of that amount went towards costs related to the performance, including the hiring of backing musicians and other costs related to the production.

Fact: Yéle Haiti purchased $250,000 of airtime on the commercial television station Telemax in Haiti that is owned by Wyclef and Jerry. We have documentation allocating the hundreds of hours of Yéle programming, over several years, that addressed a wide range of development and social issues in Haiti.

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  1. Tweets that mention KarenCivil.com — Topsy.com

    January 16, 2010 @ 11:18 AM

    [...] This post was mentioned on Twitter by khal, Knotti. Knotti said: Wyclef Responds to Fraud Allegations http://bit.ly/916gsD (via @karencivil) thanks for this Karen! [...]

  2. uberVU – social comments

    January 16, 2010 @ 11:25 AM

    Social comments and analytics for this post…

    This post was mentioned on Twitter by knsocial: Wyclef Responds to Fraud Allegations http://bit.ly/916gsD (via @karencivil) thanks for this Karen!…

  3. President of Yele Haiti Responds to Accusations | Miss Jia: She ain’t for everybody…

    January 16, 2010 @ 12:41 PM

    [...] Source var linkwithin_site_id = 38577; (function () { var elem = document.createElement('script'); elem.type = 'text/javascript'; elem.src = 'http://www.linkwithin.com/widget.js?rand=' + Math.random(); document.getElementsByTagName('head')[0].appendChild(elem); })(); tweetmeme_url = 'http://missjia.com/president-of-yele-haiti-responds-to-accusations.html';tweetmeme_source = 'missjia';tweetmeme_style = 'compact'; [...]

  4. dogdz

    January 16, 2010 @ 3:29 PM

    Doing business with yourself or your relatives and business associates out of a charity will never look good and cannot but be suspect.

    It’s no good claiming everything was legal; there are chatrites that do everything according to the law and yet end up using 95c of the $ for ‘expenses’.

    No excuse as far as I’m concerned.

  5. President of Yele Haiti Responds to Accusations | Generation-Hiphop.com

    January 16, 2010 @ 3:39 PM

    [...] Source [...]

  6. [video] Wyclef’s speaks on Smoking Gun’s accusations against ‘Yele Haiti’ « STREET KNOWLEDGE MEDIA

    January 16, 2010 @ 6:02 PM

    [...] [video] Wyclef’s speaks on Smoking Gun’s accusations against ‘Yele Haiti’ Source: Karen Civil [...]

  7. p-LO

    January 17, 2010 @ 8:46 PM

    Just because they are scammers out there not to be trusted doesn’t mean everyone is th same. GET YA INFORMATION CORRECT!! STOP THE ACCUSATIONS!!
    HE IS HELPING HIS COUNTRY…MY COUNTRY AND I BELIEVE IN HIM SO BECAUSE THE COUNTRY IS GETTING SO MUCH ATTENTION (CAUSE IT’S IN NEED OF HELP) YOU’RE GOING TO START SHIT!!
    NOOOO NOT GONNA HAPPEN.

    THEN IF YOU CAN’T DONATE THEN SHUT YOUR TRAP AND PRAY FOR US DAMNNN!!

  8. pat

    January 18, 2010 @ 2:30 PM

    You know, it is important that while we recognize what Wyclef is doing (actively involved in cleaning out bodies in Haiti) we don’t lose of track of the financial mess that his organization is in.
    ** First, let’s admit that it does not look good that they failed to file tax returns until 5 months ago.
    ** Another thing that bothers me is that a lot of the money is channeled to to businesses that Wyclef and his business partner own.
    ** On their 2007 fiscal statement, we see that they take in $79,000 in public support, and spend $54,711 in travel expenses, with only $503K cash while claiming $956K in liabilities. WHAT???

    Can we please be appreciative without being BLIND? Since when are celebrities with no experience are the best people to manage nonprofit organizations?

  9. johh

    January 18, 2010 @ 4:21 PM

    one thing i like to know , did you recover jimmy o ’s body when is the funeral ?

  10. Hugh Locke, President of Yéle Haiti Releases Statement & Financial Facts « The Queen's Pen

    January 22, 2010 @ 1:49 PM

    [...] Source [...]

  11. The Foxx Files » Blog Archive » Russell Simmons stands by Wyclef & Yele

    January 22, 2010 @ 9:44 PM

    [...] All made a point to share their thoughts on the allegations against Wyclef and Yele foundation. Wyclef’s response via KarenCivil.com [...]

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