Canada shuts down fake AIDS charity

TORONTO, May 11 (UPI) -- The Canadian Revenue Agency says it has shut down a fraudulent AIDS charity that took in about $15 million in donations in 2006 and 2007.

Donations to the Orion Foundation largely were used by founder James Arion, of Stouffville, and his board of directors to pay for trips to Las Vegas, home renovations, liquor and unexplained management fees, a federal audit found.

The foundation billed itself as a charity that was curing AIDS in Africa though lifesaving drugs funded by donors, The Toronto Star reported Tuesday.

The foundation operated through a complicated tax shelter that offered Canadian donors a tax receipt for as much as five times the amount donated, auditors said.

The twice-bankrupt Arion also ran side businesses involving high class escort agencies named Cachet Ladies and Cupid Escorts, authorities said.

Arion could not be reached for comment, the Star reported.