Overview

Carl R. "Spitz" Channell (1944-1990) was a conservative political fundraiser who operated the National Endowment for the Preservation of Liberty (NEPL), a tax-exempt organization that he used to illegally raise funds for the Nicaraguan Contras during the period when the Boland Amendment prohibited U.S. government aid to the rebel group. Channell became the first person convicted in the Iran-Contra affair. Channell worked closely with Oliver North and the Reagan White House to solicit wealthy conservative donors for the Contra cause. He organized private briefings at the White House where donors met with North and other officials, and then directed the funds through his tax-exempt organization to purchase weapons and supplies for the Contras. Because NEPL was registered as a 501(c)(3) charitable organization, donors received illegal tax deductions for what were effectively political and military contributions. In April 1987, Channell pleaded guilty to conspiracy to defraud the United States by using a tax-exempt organization for non-exempt purposes (conspiracy to defraud the IRS). He agreed to cooperate with Independent Counsel Lawrence Walsh's investigation and testified about the White House's role in directing the private fundraising network. Through NEPL and related entities, Channell raised an estimated $10 million, much of which was directed to the Contra supply operation managed by Oliver North and Richard Secord. Channell was sentenced to probation. He died in 1990 before the broader Iran-Contra prosecutions concluded.

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Controversies & Concerns

Related Investigations (1)

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Sources & Documentation

3 documented sources from official records, investigations, and reports