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Friday, April 19, 2024 | Back issues
Courthouse News Service Courthouse News Service

Ex Top Exec Says AARP Evades Taxes

WASHINGTON (CN) - AARP fired its director of international affairs from her $140,000 job "because she refused to assist in the commission of unlawful acts": AARP's abuse of its tax-exempt status to evade federal taxes, Line Vreven claims in Federal Court. She claims the tax dodge is related to AARP's wholly owned subsidiary, AGN.

"AGN was founded, and is wholly owned and operated by AARP," but is not otherwise defined in the federal complaint. Vreven says she was fired to retaliate for her "expressed concerns to her supervisors regarding AARP's relationship to AGN, and that the relationship and transactions between the two entities placed AARP's tax exempt status in jeopardy." She says she also "expressed concerns to her supervisors regarding AARP employees' mishandling and improper spending of AARP funds, and inadequate audit procedures."

The complaint states: AARP terminated Vreven's employment because she objected to AARP's abuse of its structure and tax-exempt status resulting in AARP's evasion and avoidance of taxes pursuant to the Internal Revenue Code. AARP terminated Vreven's employment because the refused to assist in the commission of unlawful acts. ... The sole reason for Vreven's termination was her reporting of AARP's illegal activities to her supervisors."

Vreven says AARP hired her on May 17, 2006 and fired her on May 15 this year.

She is represented by Edward Tolchin of Fairfax, Va.

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