Pa. lawyer on trial in charity-fraud case

September 14, 2009 11:56:18 AM PDT
Allentown lawyer John Karoly (KAR'-ol-ee) is fighting charges he laundered $500,000 through two charities before using most of it for himself. Karoly has already pleaded guilty to evading taxes on $5 million in income.

Prosecutors say he gave the money to the Lehigh Valley Community Foundation but then steered it to a church that kicked most of it back to him.

They say Karoly spent about $30,000 of it on catering and funeral costs after his brother's 2007 death.

A foundation official testified Monday that Karoly talked of building a camp in the Poconos for disadvantaged youth, but never nailed down his plans. Prosecutors say he instead planned to build a retirement home.

The 59-year-old Karoly is well-known in the Lehigh Valley for taking on police-abuse cases.

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