In Part 1 of this story on the decline and fall of the Vanguard Public Foundation, we reported on how Vanguard's leadership became involved with apparent conman Samuel "Mouli" Cohen, and how millions of dollars disappeared into a get-rich-quick scheme, resulting in Vanguard's closure. In this concluding article, we explore how it was possible for a respected foundation to have come to such an inglorious end.
In August 2010, in a television-like drama, a limo was pulled over in Los Angeles by unmarked sedans and some 20 federal officers emerged -- some with guns drawn -- and arrested Samuel "Mouli" Cohen. A sealed indictment listed 19 counts of wire fraud, 13 counts of money-laundering, and accusations of defrauding 55 investors of $30 million.
The chief victims of this apparent con game? The Vanguard Public Foundation and its major donors.
Today, the Vanguard Foundation -- once a daring, progressive leader -- is little more than a telephone number, with its donors, leaders, and Cohen involved in multiple federal and state lawsuits.
The courts will eventually determine what Cohen did or didn't do and how much insiders at Vanguard -- including CEO Hari Dillon -- are to blame. What concerns us here are the questions on everyone's minds: What should the . . .