The Internal Revenue Service is investigating financial improprieties at the tax-exempt Kabbalah Centre.
The Los Angeles-based spiritual group is run by the Berg family and is devoted to the study of ancient Jewish mysticism. In recent years, the group has attracted celebrity adherents, including Madonna, Gwyneth Paltrow, Ashton Kutcher, Demi Moore, Donna Karan, Sandra Bernhard and Roseanne Barr.
The IRS is reportedly investigating the center and several of its charities, according to the
The group has been accused by its own former CFO of financial improprieties. In an August 2010 email, former CFO Nicholas Vakkur wrote, “I have little choice but to cooperate with the IRS and bring down the entire Kaballah Centre.” He said he had uncovered instances of income tax fraud that could bankrupt several of the directors. Vakkur has reportedly already sat down with IRS investigators for a three-hour interview, according to the
The Kaballah Centre and Spirituality for Kids confirmed the IRS investigation and subpoenas. “The Centre and SFK intend to work closely with the IRS and the government, and are in the process of providing responsive information to the subpoenas,” the group said in a statement quoted by