Thursday, December 10, 2009

SOS shuts down another bogus charity

Update: Apparently Mr. Potts is NOT a CPA. The State Board of Public Accountancy confirmed this afternoon in a telephone call Cullen Potts is not a licensed CPA in Mississippi. Mr. Potts is also not licensed in Tennessee. So it appears a phony CPA ran a scheme with a bingo operation and charity that paid him nearly $300,000. Nice jack if you can get it.

Copy of Cease and Desist Order

The Securities and Charities Division of the Mississippi Secretary of State's office issued a Cease and Desist order on December 1, 2009, against another charity which ran a bingo operation. The Division fined the Union Center/Theo Volunteer Fire Department $354,124 and revoked UCT's charitable exemption after a hearing was held by the Division earlier this year on the charity's actions.

The hearing officer stated the charity was a "non-profit, volunteer fire department" in Corinth, MS and that it "fundraises through a charitable gaming operation known as Corinthian Bingo." The Cease and Desist Order stated UCT paid $20,749 of Corinthian Bingo's expenses. Mississippi law requires a bingo operations' funds should support a charity, not the other way around as apparently happened in this case.

The Order also singled out a Cullen Potts as being a prime beneficiary of the charity's um, donations. It states:

1. UCT paid Mr. Potts, "a CPA", $95,250 to keep the books for both operations and 85% of this for his work on the bingo operation, in violation of the law.
2. The charity overpaid Mr. Potts by $11,639 for other services.
3. UCT "falsified expenses of the fire department" and the total amount of the fictitious expenses was $252,328. The Order further states UCT created these bogus expenses so it could move $252,328 from the charity to Corinthian Bingo in violation of the law while appearing to be in compliance. In other words, UCT committed fraud and the goal of the fraud was to "trick the Mississippi Gaming Commission into renewing UCT's bingo license."
4. UCT's financial statements show that while the money was "never transferred to Corinthian Bingo", they do show the money was given to its accountant, Cullen Potts, "who deposited the money into his personal checking account at Renasant Bank" and that Potts kept the money for himself instead of transferring it to Corinthian Bingo even though the accounts state the money went to the bingo operation.
5. The charity also used its funds to build a fire department on land that belonged to someone else. Hmmm... what kind of kinfolk deal took place in that transaction?

This seems like hypertechnical stuff, after all, who cares about bookkeeping at charities and bingo halls? However, too often charities are used to prey upon good-hearted people who seek to help others but often are taken in by smooth-talking shysters. This is the second Cease and Desist order Mr. Hoseman's office has issued this year to a charity linked to a bingo operation.


Anonymous said...

All CPAs licensed in the State of Mississippi are listed on the State Board of Accountancy's Cullen Potts listed.

Not a CPA.

Anonymous said...

This is on the NEMS360 business directory.

Cullen V Potts Cpa Pa662-287-1092608 E Waldron St Corinth MS 38834

Anybody in North MS - go by and look at his signage - is he holding himself out as a CPA?

Surely this is a violation of the CPA standards.

Anonymous said...

He's not a CPA and the Board of Accountancy should take action, also.

Anonymous said...

He could be licensed in another state and his license reciprocates to MS.

Anonymous said...

Perhaps I'm jaded, but I thought the charity link was a way to make bingo legal when gambling was frowned upon and bingo considered gambling by some, not that bingo was a way to support charities .

I suspect the folks playing bingo aren't there to support their favorite charity,but to have fun and win prizes/money.

Anonymous said...

The sign on his door says "Cullen V. Potts Public Accountant".

Anonymous said...

Maybe the V stands for Very Rich

Anonymous said...

This is not true I actually happen to be related to him! He is a liscened accountent. Maybe if you worried about your self and not other people you wouldn't come up with lies like this!

Anonymous said...

And btw he is a cpa so please stop talking about him like that.

Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel


Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).

Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.

In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS