Christian charity founder confesses to using donated funds for sex addiction, debts
The president and founder of a nongovernment organization confessed that he used the group's funds to spend for his sex addiction.
Jon S. Petersen admitted that he struggled with sex addiction for years, and he used donations from the charity to indulge in it. He also used some of the money to pay for home equity and credit card debts.
Federal prosecutors said Petersen pleaded guilty on Monday, May 16 for failing to declare an amount of $114,000 in 2013, which he transferred to his personal checking account as taxable income. If found guilty of filing a false tax return, the 55-year-old can face up to three years in prison without the possibility of parole.
He could also be asked to pay a fine of up to $250,000 and to pay back the money he took from the charity's funds. Upon release, Petersen could be given up to one year of supervised release.
Petersen and his wife founded World Ambassadors, Ltd. in July 1993. The organization was listed as a domestic nonprofit organization and was registered in Cedar Rapids. At present, it is listed as an active organization and enjoys a good standing with the Iowa Secretary of State.
The group's purpose was to conduct Christian outreaches to international college students. World Ambassadors received financial support annually from more than 30 people.
Petersen said that from 2010 to 2014, he transferred a total of $475,000 worth of donations from the organization to his personal account. The amount he used almost depleted the organization's funds. However, the prosecutors did not give specific information as to how the money was used.
In 2010, the IRS removed the organization's tax exempt status for not being able to file details about its annual income and spending.
Petersen has been released from custody. His sentencing hearing is yet to be scheduled.
