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Greg Mortenson must pay $1 million to charity

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Mortenson’s haphazard control of the charity went largely unchallenged by CAI’s board of directors, which consisted of Mortenson and two people loyal to him, according to the investigative report.

“The result was a lack of financial accountability in which large amounts of cash sent overseas were never accounted for,” reports the AP. “Itemized expenses listed as program-related were missing supporting receipts and documentation. Employees and family members charged items such as health club dues and gifts to CAI credit cards.”

Among the financial mismanagement: Mortenson bought thousands of copies of his books, “Three Cups of Tea,” and “Stones into Schools,” from $3.96 million worth of charity money, reaping royalties that he kept for himself.

The report also found the CAI spent $4.93 million on advertising and promoting Mortenson’s books, a figure that was supposed to be split between the CAI and Mortenson, but never was.

The CAI also paid $2 million in charter flights for Mortenson’s speaking engagements until 2011. The report stated that Mortenson and his family charged $75,276 worth of personal items to the CAI between 2009 and 2010, including “LL Bean clothing, iTunes, luggage, luxurious accommodations and even vacations.”

Thanks to an April 2011 “60 Minutes” report that alleged Mortenson fabricated parts of his memoir and benefited financially from the charity, Montana’s attorney general began a yearlong probe into the CAI. The investigation found Mortenson’s oversight of the CAI grossly negligent and ordered a series of changes.

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