Author Greg Mortenson of “Three Cups of Tea” has agreed to pay more than $1 million “in restitution” to his charity after a 60 Minutes investigative broadcast highlighted the humanitarian and best-selling author for mismanaging and personally benefiting from the funds of his charity. The Central Asia Institute (CAI) was created by Mortenson and builds schools in remote villages of Afghanistan and Pakistan. The investigation also questioned the accuracy of some of the most dramatic tales in the best-selling book, which has aided Mortenson to raise millions for his charity and attain a cult-like status on a rewarding lecture circuit. An investigation was launched by Montana Attorney General Steve Bullock into Mortenson’s financial conduct days after the 60 Minutes broadcast last spring.
The findings of the investigation were released on Thursday and concluded that Mortenson had failed to reimburse his organization for more than $1 million in travel and book-related expenses going back several years. Bullock reported that Mortenson “had significant lapses in judgment resulting in money donated to CAI being spent on personal items such as charter flights for family vacations, clothing and internet downloads.” Mortenson has resigned as the charity’s executive director and all its board members will step down within a year, according to Bullock. Under the legal terms of the settlement, Mortenson is permitted to remain as an employee of the charity, but banned from holding any positions involving financial oversight.
