Recently, respected Wall Street analyst Charles Ortel has contended that in addition to filing financial reports filled with errors and misstatements, “Big Four” accounting firm PricewaterhouseCoopers (PWC) neglected to verify whether the Clinton Foundation obtained tax-exempt status for its various sub-entities, including its AIDS charity. Ortel’s six-month investigation indicated that the Clintons have diverted tens of millions of dollars donated for charitable purposes to personally enriching themselves and their close associates.
According to Ortel, PWC never exercised due diligence in fulfilling its professional responsibilities in conducting even the most basic inquiries necessary for an honest audit. He says that PWC failed to inquire whether the Clinton Foundation has applied 
for and received duly issued IRS tax-exempt determinations for its various sub-entities and activities, such as fighting HIV/AIDS globally under the auspices of the Clinton Health Access Initiavice Inc. (CHAI). Ortel notes that there was both an “old” and “new” CHAI that was created after Hillary Clinton became secretary of state. The foundation also launched the Clinton Global Initiative, and numerous foreign funds and endowments created, for example, in conjunction with George W. Bush to raise money for the victims of Hurricane Katrina in 2005 and the Haiti earthquake in 2010.
In Ortel’s draft report, he says that PWC’s work product concerning the 2013 Clinton Foundation is “riddled with errors”. Ortel documents each of these material deficiencies, but also poses an important preliminary question: whether or not PWC established that under applicable laws and regulations that the Clinton Foundation and its various sub-entities and charitable endeavours is duly constituted as a tax-exempt organization. Ortel insists that the question of whether or not the Clinton Foundation is validly constituted as a US tax-exempt organization is fundamental to any analysis of its financial statements. If it isn’t validly constituted, then ortel says that the organization and its directors will face substantial financial liabilities, in addition to other penalties that would severely impact, and even bankrupt, numerous parties. Moreover, if the Clinton Foundation isn’t validly constituted as a US tax-exempt organization, then the legal implications for the board of directors could be severe. He also says that there would be severe “tax consequences” for anybody who donated to what could be a fraudulent charity, even for those donors who weren’t part of any of the alleged shady activity.