Since its inception, the Kabbalah Centre has been named in several civil lawsuits alleging fraud to the tune of tens of millions of dollars, involved in scandals where several millions of dollars have gone missing from their “Raising Malawi” and “Spirituality for Kids/Success for Kids” charities, and is currently the subject of a tax evasion investigation by the FBI and the IRS. One of the sons of the co-founders of the Kabbalah Centre and a co-director, Yehuda Berg, is also accused of sexual assault and making death threats against one of his followers.
“The Kabbalah Centre has engaged in a pattern and practice of raising funds … for the purpose of enriching itself and others associated with Kabbalah Centre,” according to a complaint filed in Los Angeles County Superior Court by Carolyn Cohen, a San Diego County real estate broker and president of the Solana Beach Chamber of Commerce.
These are just some of the news articles detailing the most recent of these accusations against the Kabbalah Centre:
“Madonna’s Malawi Disaster” – The Kabbalah Centre’s “Raising Malawi” foundation raised $18 million to build a school in one of the poorest countries in Africa, but imploded after only a fraction of the money raised was spent on Malawi, while $3 million was found to have been spent by the Los Angeles branch of the Kabbalah Centre according to Newsweek.
“Widow with dementia gave $600,000 to Kabbalah Centre charity” – She also borrowed millions to build a home in Beverly Hills. Her financial advisor, a key figure in the oversight of Kabbalah Centre finances, has been instrumental in those expenditures, public records and interviews show, according to the LA Times.
“Kabbalah Centre used Madonna’s charity donations for real estate deal” – In 2004, Madonna reportedly donated millions to open the Kabbalist Grammar School for Children in Manhattan. But Kabbalah leader Karen Berg turned the “K School” project into a highly profitable real estate deal netting herself $4.3 million, The Daily has learned.
The Daily lists several examples where generous donations made to the Kabbalah Centre by its devotees became the subjects of a very mysterious vanishing act – The Kabbalah Centre charity, “Spirituality for Kids” had raised $33 million since it was established in 2001. But federal sources told The Daily that SFK is under FBI scrutiny, and an ex-officer said the charity never seemed to have much money.
Kabbalah Centre has multiple income streams – An online resume posted by Nelson Boord Jr., a former chief financial officer who left the center in 2009, said it had annual revenue of $60 million, a $60-million investment fund and $200 million in real estate holdings around the world.
“Kabbalah Centre co-director Yehuda Berg ‘molested student then threatened to kill her’ – Jena Scaccetti suing Berg with claims that he drugged and groped her then made threats to attack her when she rejected his advances.