Kickbacks for clothing alleged
NZPA-AP Philadelphia
Salvation Army officers are under criminal investigation in connection with a second-hand clothing dealer who allegedly paid them kickbacks to ensure a steady supply of clothing. A man and his son who ran a Philadelphia export company face federal conspiracy and mail fraud charges stemming from the sale of used clothing and rags overseas, according to documents filed in the United States District Court. Harry Usatch, aged 70, and Jerald Usatch, aged 45, formerly of west Philadelphia, paid kickbacks to several Salvation Army officials to assure a steady supply of good quality used clothing, said the document, which was filed this week. Several senior officials of the Salvation Army were still under investigation by United States Customs and the Postal Inspections Service in connection with the alleged kickbacks, David Warren, special agent in charge of criminal investigations in Philadelphia, told the “Washington Post.” At first, as many as 30 Salvation Army officers and employees were being investigated, the “Post” said. It quoted sources as saying the inquiry had narrowed to about 10 of the more senior
officials. While the “Post” did not identify the cities where the Salvation Army officials were being investigated, the “Philadelphia Inquirer” quoted sources as saying the inquiry centred on Salvation Army offices in Los Angeles, New York, Atlanta and Chicago. The assistant United States Attorney in Philadelphia, Mr Stephen Werner, refused to confirm whether Salvation Army offices in those cities were under investigation. He said that activities involving the Salvation Army were mentioned in the criminal information naming the clothing dealers and their export company. Frances Weiss, assistant director in the communications department of the Salvation Army’s national headquarters in New York, told the “Post” that the Salvation Army regarded the Philadelphia investigation as a pending legal matter and refused to comment. The practice of selling unwanted thrift shop clothing to dealers for resale in underdeveloped countries had been common for years, she said, adding that she had no knowledge of any Salvation Army officers receiving personal payments from clothing dealers.
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Press, 25 May 1985, Page 10
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342Kickbacks for clothing alleged Press, 25 May 1985, Page 10
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