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Three Cups of Tea author pays $1m for misusing charity he set up Three Cups of Tea author pays $1m for misusing charity he set up
(about 2 hours later)
Three Cups of Tea author Greg Mortenson has agreed to pay $1m to compensate his Montana-based charity, which he used to promote and pay for copies of his books, according to the state attorney general.

The settlement between Mortenson, leaders of the Central Asia Institute (CAI) charity he founded and Montana officials allows it to continue educational work in Pakistan and Afghanistan. The agreement calls for a new board to run CAI, based on a finding that it failed to meet its responsibilities in handling the relationship between the charity and Mortenson.		 Three Cups of Tea author Greg Mortenson has agreed to pay $1m (£630,000) to compensate his Montana-based charity, which he used to promote and pay for copies of his books, according to the state attorney general.

The settlement between Mortenson, leaders of the Central Asia Institute (CAI) charity he founded and Montana officials allows it to continue educational work in Pakistan and Afghanistan. The agreement calls for a new board to run CAI, based on a finding that it failed to meet its responsibilities in handling the relationship between the charity and Mortenson.
The case is another setback for an author and philanthropist once widely celebrated for his work.The case is another setback for an author and philanthropist once widely celebrated for his work.
Montana began investigating in April 2011 after a 60 Minutes report suggested Mortenson fabricated parts of his Three Cups of Tea and took benefits for himself from the charity. The Guardian interviewed people who disputed Mortenson's accounts of his dealings with them, including tribesmen who threatened to sue

Steve Bullock, the Montana attorney general, said the CAI had spent nearly $4m since 2006 buying copies of Three Cups of Tea and a sequel, Stones Into Schools.

The purchases generated royalties for Mortenson, and although he had agreed to provide a contribution to the Central Asia Institute equal to the amount of royalty payments he received from book purchases, he had not done so as of April 2011, Bullock's office found.		 Montana began investigating in April 2011 after a 60 Minutes report suggested Mortenson fabricated parts of his Three Cups of Tea and took benefits for himself from the charity. The Guardian interviewed people who disputed Mortenson's accounts of his dealings with them, including tribesmen who threatened to sue.

Steve Bullock, the Montana attorney general, said CAI had spent nearly $4m since 2006 buying copies of Three Cups of Tea and a sequel, Stones Into Schools.

The purchases generated royalties for Mortenson, and although he had agreed to provide a contribution to CAI equal to the amount of royalty payments he received from book purchases, he had not done so as of April 2011, Bullock's office found.
He also collected money from CAI for travel expenses related to his lucrative speaking engagements and the charity spent about $4.9m to promote the two books, the report said.He also collected money from CAI for travel expenses related to his lucrative speaking engagements and the charity spent about $4.9m to promote the two books, the report said.
CAI's stated mission is to advance literacy and education in Central Asia, especially for girls, and it has funded the construction and operation of schools there.CAI's stated mission is to advance literacy and education in Central Asia, especially for girls, and it has funded the construction and operation of schools there.
Bullock said his office did not probe allegations of fabrications or narratives in Mortenson's book that were raised by 60 Minutes and CAI spokeswoman Karin Ronnow stressed these were never part of the Montana investigation.

The book describes an unsuccessful attempt by Mortenson to climb the 8,611 metre K2 peak in south Asia and his encounter with impoverished Pakistani villagers who he said inspired him to build schools and other projects in the region.		 Bullock said his office did not investigate allegations of fabrications or narratives in Mortenson's book that were raised by 60 Minutes, and CAI spokeswoman Karin Ronnow stressed these were never part of the Montana investigation.

The book describes an unsuccessful attempt by Mortenson to climb the 8,611m (28,250ft) K2 peak in south Asia and his encounter with impoverished Pakistani villagers who he said inspired him to build schools and other projects in the region.
60 Minutes disputed Mortenson's account in Three Cups of Tea of being kidnapped in the Waziristan region of Pakistan in 1996. The show interviewed people who knew Mortenson or met him in south Asia.

CAI received $100,000 from Barack Obama's $1.4m Nobel peace prize award of 2009, as well as other support from high-profile backers. He took numerous awards before the 60 Minutes report.

Mortenson defended his account in Three Cups of Tea in a statement to Montana newspaper the Bozeman Daily Chronicle around the time the "60 Minutes" piece aired. "I stand by the information conveyed in my book," he said.		 60 Minutes disputed Mortenson's account in Three Cups of Tea of being kidnapped in the Waziristan region of Pakistan in 1996. The show interviewed people who knew Mortenson or met him in south Asia.

CAI received $100,000 from Barack Obama's $1.4m Nobel peace prize award of 2009, as well as other support from high-profile backers. He took numerous awards before the 60 Minutes report.

Mortenson defended his account in Three Cups of Tea in a statement to Montana newspaper the Bozeman Daily Chronicle around the time the 60 Minutes piece aired. "I stand by the information conveyed in my book," he said.
In June 2011 Mortenson had open heart surgery and temporarily stepped down as executive director of the organisation. In late 2011 he permanently gave up the position, Ronnow said. "He'll always be our founder – he's the heart and soul and he's not going anywhere. And thank God," she said. In June 2011 Mortenson had open heart surgery and temporarily stepped down as executive director of the organisation. In late 2011 he permanently gave up the position, Ronnow said. "He'll always be our founder. He's the heart and soul and he's not going anywhere. And thank God," she said.
Mortenson is being allowed by the state of Montana to continue working with CAI and remain as a non-voting member of the board.

"The humanitarian efforts of Greg Mortenson and CAI are impressive and even the greatest detractors would admit that together they've accomplished a tremendous amount to further education in Pakistan and Afghanistan," Bullock told reporters.

But lapses in CAI oversight could not be ignored, Bullock said. The investigation could have resulted in state officials dissolving the charity if a settlement had not been reached.		 Mortenson is being allowed by the state of Montana to continue working with CAI and remain as a non-voting member of the board.

"The humanitarian efforts of Greg Mortenson and CAI are impressive and even the greatest detractors would admit that together they've accomplished a tremendous amount to further education in Pakistan and Afghanistan," Bullock told reporters.

But lapses in CAI oversight could not be ignored, he said. The investigation could have resulted in state officials dissolving the charity if a settlement had not been reached.
"When charities take money given for specific purposes, it's essential it's spent as intended, otherwise public trust is eroded and tough to restore," Bullock said."When charities take money given for specific purposes, it's essential it's spent as intended, otherwise public trust is eroded and tough to restore," Bullock said.