The charity is the fundraising arm of a school whose director was indicted on theft and money laundering charges
LAKEWOOD -- A Lakewood charity that raised $4.6 million over five years didn't register with the state as required by law, according to a report on APP.com.
Services for Hidden Intelligence is the fundraising arm of the School for Children with Hidden Intelligence, whose director was indicted earlier this year on charges of theft and money laundering.
The nonprofit Services for Hidden Intelligence's expenses exceeded its revenue each year from 2010 to 2015. It also spent hundreds of thousands a year paying interest on a loan from an unspecified creditor, the report said.
It faces a fine of $10,000 for a first violation of the state's charity registration law and a $20,000 penalty for each subsequent offense.
Rabbi charged with stealing public funds
An audit has also found that SCHI overcharged public districts that send students there by about $340,000.
The school for special needs and handicapped children, whose tuition is about $97,000 per year, receives $23 million a year in public funds.
SCHI receives $1.8 million a month in public tuition from the Lakewood school district to teach students with special needs. Authorities said the founder and director, Rabbi Osher Eisemann took $430,000 of that money for a personal business venture, the clothing company TAZ Apparel, LLC.
Authorities said Eisemann also laundered an additional $200,000 of the funds in a scheme "intended to make it appear that he was repaying debts he owed to the school using personal funds."
Jeff Goldman may be reached at jeff_goldman@njadvancemedia.com. Follow him on Twitter @JeffSGoldman. Find NJ.com on Facebook.