The man who once ran the now-defunct Franklin-based National Foundation of America is facing federal charges as part of an alleged scheme to defraud customers of $20 million.
…The federal charges stem from a scheme that started in 2006, according to the indictment. Olive offered investment contracts labeled as the foundation’s “installment plan agreement,” records allege.
Customers could buy the plan with cash or by transferring existing annuities or other assets. Although not referred to as charitable gift annuities, the foundation’s installment plans were marketed to provide the same type of benefits, according to the indictment.
As part of a charitable gift annuity, a charity receives cash or other assets from a donor in exchange for paying out a fixed rate of return. The donor can also receive a federal tax deduction.
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