FSC Files IRS Complaint Over AHF Ballot Measure Spending

FSC Files IRS Complaint Over AHF Ballot Measure Spending

CANOGA PARK, Calif. — The Free Speech Coalition has filed a formal complaint with the IRS over the tax-exempt status of the AIDS Healthcare Foundation, the organization said this morning.

The FSC said it lodged the complaint following a report in the LA Weekly that “detailed the nonprofits’ abuse” of its tax-exempt 501(c)(3) status.
 
Under the leadership of the group’s president, Michael Weinstein, the AHF has spent more than $23 million on measures ranging from antidevelopment initiatives to the adult film initiative Proposition 60, the LA Weekly reported.
 
“Michael Weinstein is using millions of dollars intended for people living with and affected by HIV on dubious political campaigns that benefit his bottom line,” said Eric Paul Leue, executive director of the Free Speech Coalition.

“This is not only a gross violation of IRS limits governing non-profit political spending, it’s an absolute abandonment of his organization’s moral imperative.

“Weinstein is robbing underserved communities that need treatment and education dollars to fuel anti-science moral crusades. We’re asking the IRS to immediately begin an investigation.”
 
AHF is currently being sued in Florida over an alleged $20 million in Medicare fraud, and has previously been sued for overbilling Los Angeles County by $5.2 million.
 
Several of the new violations could cost AHF its tax-exempt status, the FSC said.
 
Among the alleged violations included in the FSC complaint submitted to the IRS:

  • AHF has spent more than $19.7 million on political campaigns in 2016. IRS limits an organization of AHF’s size to $1 million per tax-year on political campaigns;
  • AHF has spent well over the $6 million allowed for a 501(c)(3) over the four-year period 2012-2015;
  • AHF dramatically underreported spending on Measure B in 2012 to the IRS. While AHF reported spending $2.3 million on the Measure B campaign alone to the California Secretary of State, but only reported $1.6 million in total political spending to the IRS that same year; and,
  • AHF has engaged in direct political attacks on political opponents, including multiple mailers targeting state Senate candidate Scott Wiener, violating the Internal Revenue Service’s clear restriction on political campaigning.

“Michael Weinstein’s out of control political spending is putting his organization's non-profit status at risk,” Leue said. “We also have reason to believe they are misusing federal 340B funding intended for uncompensated care to help finance political campaigns and for-profit business development.”

Prop 60, an initiative on the November ballot in California, would allow private citizens, including Weinstein, to file lawsuits against adult performers for not using condoms and collect 25 percent of any fine assessed on each successful prosecution.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Wicked Premieres 1st Installment of Seth Gamble's Erotic Drama 'Love/Hate'

Wicked Pictures has released the debut installment of multi-XMAs winner Seth Gamble's latest feature, "Love/Hate."

AV Bulletin: Loopholes and Lawsuits

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Utah 'Porn Tax' Bill Will Head to Governor's Desk

A bill that would tax adult websites and make them liable if minors circumvent geolocation has passed the Utah state legislature and will soon head to the office of Gov. Spencer Cox for signature or veto.

Aleksa Mink Fronts Latest From Reality Kings

Aleksa Mink stars with Dick Dealer Don in the latest release from Reality Kings.

Angie Lynx Toplines Angelo Godshack's 'Hardcore Gangbangs 6'

Angie Lynx headlines the sixth volume of director Angelo Godshack's "Hardcore Gangbangs," from Evil Angel.

Flirt4Free Co-Founder Gregory Clayman Passes Away

Gregory Clayman, a pioneering figure in the live cam sector and cofounder of the long-running webcam platform Flirt4Free, has passed away.

Pornhub to Restrict Access in Australia as AV Rules Take Effect

Pornhub parent company Aylo will restrict access to its free video-sharing platforms in Australia in response to new age verification regulations, the company confirmed Thursday.

ASACP Announces F2F as 1st Gold Sponsor

The Association of Sites Advocating Child Protection (ASACP) has announced Friends2Follow (F2F) has upgraded its sponsorship and become the organization’s first Gold Sponsor.

House Committee Approves Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce on Thursday passed the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

Segpay Adds 'Pay by Bank (UK)' Payment Solution

Segpay has added the Pay by Bank (UK) option to its direct payments solutions.

Show More