There is no question that by writing Three Cups and setting up Central Asia Institute, lives were bettered.

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The riveting story led to the creation of the Central Asia Institute, an organization that endeavors to improve girls' education in Pakistan and Afghanistan.

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But Attorney General Steve Bullock said his office's investigation did find "serious internal problems in the management" of the Bozeman, Montana-based Central Asia Institute that Mortenson helped create.

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He also claims that Mortenson, a former mountaineer, has mismanaged and misappropriated hundreds of thousands, if not millions, in donations to his Central Asia Institute which builds the schools.

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The Central Asia Institute's two other board members will step down after a transitional period of 12 months and a new seven-member board will be appointed in its place, according to the settlement.

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"I think it's a fair settlement that it's in the best interests not only of the charity, but of the children of Afghanistan and others that the Central Asia Institute serves, " said Bullock.

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While he can remain an employee of the Central Asia Institute, Mortenson can "no longer oversee financial aspects of the charity or serve as a voting member of the board of directors, " according to the attorney general's office.

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The government of Uzbekistan in particular is likely to "drive a fairly hard bargain" in negotiations with the U.S. over moving military cargo over its territory, said Frederick Starr, chairman of the Central Asia-Caucasus Institute at Johns Hopkins University.

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