Tag Archives: Clinton Foundation

Trump’s charity admits to flouting IRS rules for self-benefit

President-elect Donald Trump’s charity has admitted that it violated IRS regulations barring it from using its money or assets to benefit Trump, his family, his companies or substantial contributors to the foundation.

The admissions by the Donald J. Trump Foundation were made in a 2015 tax filing made public after a presidential election in which it was revealed that Trump has used the charity to settle lawsuits, make a $25,000 political contribution and purchase items such as a painting of himself that was displayed at one of his properties.

The filing’s release, first reported by The Washington Post, comes as the New York attorney general’s office investigates whether Trump personally benefited from the foundation’s spending.

The filing also shows Trump’s foundation accepted money from a Ukrainian businessman who also gave money to one of Trump’s favored targets on the campaign trail: The Clinton Foundation. The charity also donated to a conservative group that backed Trump during his candidacy.

The 2015 tax filing was posted on the nonprofit monitoring website GuideStar on Nov. 18 by someone using an email address from the foundation’s law firm, Morgan, Lewis & Bockius, said GuideStar spokeswoman Jackie Enterline Fekeci.

In the tax filing, the foundation acknowledged that it used money or assets in violation of the regulations not only during 2015, but in prior years. But the tax filing doesn’t provide details on the violations.

Questions about the violations sent via email to Trump’s transition team weren’t immediately answered.

Marcus S. Owens, a partner at the Washington law firm Loeb & Loeb and a former director of the IRS exempt organizations division, said the lack of detail in the tax filing makes it difficult to determine the extent of the charity’s violations.

“There’s no way to tell for sure whether the self-dealing is small and trivial or large and a pattern of ongoing deliberate misuse of the charity’s assets,” Owens said.

Generally, he said, self-dealing violations require the violator to pay an excise tax equal to 10 percent of the amount involved in the transactions. The violator also would have to repay the foundation for the full amount involved. Owens also noted that self-dealing is a violation of New York state law, where the charity is registered.

New York Attorney General Eric Schneiderman, a Democrat, launched an investigation into the charity after reporting by the Post drew attention to some of the foundation’s purchases, three of which are listed in the latest filing: two portraits of Trump and a football helmet autographed by former NFL quarterback Tim Tebow.

As the Post reported previously, Trump bid $12,000 for the football helmet, and his wife, Melania, bid $20,000 for one of the portraits. The other portrait, which Trump bid $10,000 for, has been hanging on a wall at his golf course in Doral, Florida, according to the Post.

Despite the high-dollar price tags, the foundation’s latest tax filing now values them at a combined $1,675. The tax filing does not specify if any of the items are related to the self-dealing violations.

The foundation has previously said it amended its tax filings after it gave an improper $25,000 check to a political committee supporting Florida Attorney General Pam Bondi in 2013.

Charities are barred from engaging in political activities, and the president-elect’s staff says the check he signed was mistakenly issued following a series of clerical errors. Earlier this year, the Trump Foundation paid a $2,500 fine to the IRS over the check.

The latest tax filing shows two Trump entities gave to his foundation, a break from recent years when the foundation’s donations came mostly from other donors.

The Trump Corporation gave about $566,000 to the foundation, and Trump Productions LLC, the company which produced The Apprentice and Celebrity Apprentice, gave $50,000 in 2015.

Another large contributor was the foundation of Victor Pinchuk, a Ukrainian billionaire who has advocated for closer relations between the European Union and Ukraine. The Victor Pinchuk Foundation gave $150,000 to the Trump Foundation in 2015. Pinchuk’s foundation has also given between $10 million and $25 million to the Clinton Foundation.

The Trump Foundation’s tax filing shows that it also gave at least $10,000 to Project Veritas, a Trump-backing nonprofit group led by conservative activist James O’Keefe.

During the presidential campaign, O’Keefe’s employees posed as would-be Democratic donors and volunteers during a months-long ruse that captured one Democratic operative seeming to boast about his connections to Hillary Clinton’s campaign and claiming he hired people to provoke Trump rally-goers.

The undercover sting prompted the Democratic Party and liberal groups to cut ties with at least two operatives.

Associated Press writers Julie Bykowicz and Jeff Horwitz contributed to this report.

 

AP fact check finds numerous lies, distortions in Trump acceptance speech

TRUMP: “Decades of progress made in bringing down crime are now being reversed by this administration’s rollback of criminal enforcement. Homicides last year increased by 17 percent in America’s 50 largest cities. That’s the largest increase in 25 years.”

THE FACTS: A rollback? President Barack Obama has actually achieved some big increases in spending for state and local law enforcement, including billions in grants provided through the 2009 stimulus. While FBI crime statistics for 2015 are not yet available, Trump’s claim about rising homicides appears to come from a Washington Post analysis published in January. While Trump accurately quotes part of the analysis, he omits that the statistical jump was so large because homicides are still very low by historical standards. In the 50 cities cited by the Post, for example, half as many people were killed last year as in 1991.

___

TRUMP: “The number of new illegal immigrant families who have crossed the border so far this year already exceeds the entire total from 2015. They are being released by the tens of thousands into our communities with no regard for the impact on public safety or resources.”

THE FACTS: The pace of releasing immigrants is driven not by the Obama administration, but by a court ruling. A federal judge ruled last year that the government couldn’t hold parents and children in jail for more than 20 days. An appeals court partially rolled that back earlier this month, saying that parents could be detained but children must be released.

By the standard used by the government to estimate illegal border crossings – the number of arrests — Trump is right that the number in this budget year has already exceeded last year’s total. But it’s down from 2014.

___

TRUMP: “When a secretary of state illegally stores her emails on a private server, deletes 33,000 of them so the authorities can’t see her crime, puts our country at risk, lies about it in every different form and faces no consequence — I know that corruption has reached a level like never before.”

THE FACTS: Clinton’s use of a private server to store her emails was not illegal under federal law. Her actions were not established as a crime. The FBI investigated the matter and its role was to advise the Justice Department whether to bring charges against her based on what it found. FBI Director James Comey declined to refer the case for criminal prosecution to the Justice Department, instead accusing Clinton of extreme carelessness.

As for Trump’s claim that Clinton faces no consequence, that may be true in a legal sense. But the matter has been a distraction to her campaign and fed into public perceptions that she can’t be trusted. The election will test whether she has paid a price politically.

___

TRUMP: “The number of police officers killed in the line of duty has risen by almost 50 percent compared to this point last year.”

THE FACTS: Not according to the National Law Enforcement Officers Memorial Fund, which tracks police fatalities daily. The group found that the number of police officers who died as of July 20 is up just slightly this year, at 67, compared with 62 through the same period last year. That includes deaths in the line of duty from all causes, including traffic fatalities.

It is true that there has been a spike in police deaths from intentional shootings, 32 this year compared with 18 last year, largely attributable to the recent mass shootings in Dallas and Baton Rouge. But that was not his claim.

And overall, police are statistically safer on America’s streets now than at any time in recent decades.

For example, the 109 law enforcement fatalities in 2013 were the lowest since 1956.

___

TRUMP: “My opponent has called for a radical 550 percent increase in Syrian (refugees). … She proposes this despite the fact that there’s no way to screen these refugees in order to find out who they are or where they come from. I only want to admit individuals into our country who will support our values and love our people.”

THE FACTS: Trump persists in making the bogus claim that the U.S. doesn’t screen refugees. The administration both screens them and knows where they are from. The Department of Homeland Security leads the process, which involves rigorous background checks. Processing of a refugee can take 18 months to two years, and usually longer for those coming from Syria. Refugees are also subject to in-person interviews and fingerprint and other biometric screening.

For all that caution, U.S. officials acknowledge that the Islamic State group could try to place operatives among refugees. Last year, FBI Director James Comey said data about people coming from Syria may be limited, adding, “If we don’t know much about somebody, there won’t be anything in our database.”

___

TRUMP: “Two million more Latinos are in poverty today than when President Obama took his oath of office less than eight years ago. Another 14 million people have left the workforce entirely. … President Obama has almost doubled our national debt to more than $19 trillion, and growing.”

THE FACTS: Trump is playing with numbers to make the economy look worse than it actually is. The sluggish recovery over the past seven years has been frustrating. But with unemployment at 4.9 percent, the situation isn’t as bleak as he suggests.

Trump’s figure of 14 million who’ve stopped working since Obama took office comes from the Labor Department’s measure of people not in the workforce. It’s misleading for three reasons: The U.S. population has increased in that time; the country has aged and people have retired; and younger people are staying in school longer for college and advanced degrees, so they’re not in the labor force, either.

A better figure is labor force participation — the share of people with jobs or who are searching for work. That figure has declined from 65.7 percent when Obama took office to 62.7 percent now. Part of that decrease reflects retirements, but the decline is also a long-term trend.

On national debt, economists say a more meaningful measure than dollars is the share of the overall economy taken up by the debt. By that measure, the debt rose 36 percent under Obama (rather than doubling). That’s roughly the same as what occurred under Republican President George W. Bush.

The Hispanic population has risen since Obama while the poverty rate has fallen. The Pew Research Center found that 23.5 percent of the country’s 55.3 million Latinos live in poverty, compared with 24.7 percent in 2010.

___

TRUMP: “Another humiliation came when President Obama drew a red line in Syria, and the whole world knew it meant absolutely nothing.”

THE FACTS: Trump’s reference is to a threat by Obama for retaliatory strikes if Syrian President Bashar Assad used chemical weapons against rebels — and he’s basically on target. When Assad crossed Obama’s “red line” in 2013 by using chemical weapons, the U.S. president backed down.

Obama’s two secretaries of state, Hillary Clinton and John Kerry, pushed for intervention, as have a former defense secretary and CIA director. But Obama as commander-in-chief has the last word, and nothing has swayed him thus far.

___

TRUMP: “When that same secretary of state rakes in millions and millions of dollars trading access and favors to special interests and foreign powers, I know the time for action has come.”

THE FACTS: That’s a somewhat overheated take on a legitimately troublesome issue for Clinton.

Although financial disclosures show she earned only her government salary as secretary of state, she made more than $21 million afterward, over three years, for speeches and appearances for private companies. None of those speeches was paid for by foreign governments, but some groups she addressed could be counted as special interests.

As well, the Clintons’ family charity, the Clinton Foundation, received millions of dollars in donations while she was secretary of state, some from foreigners. And Bill Clinton earned millions making appearances and speeches for foreign corporations and organizations while his wife was at the State Department.

___

TRUMP: “After four years of Hillary Clinton, what do we have? ISIS has spread across the region, and the entire world. Libya is in ruins, and our ambassador and his staff were left helpless to die at the hands of savage killers. Egypt was turned over to the radical Muslim Brotherhood, forcing the military to retake control. Iraq is in chaos. Iran is on the path to nuclear weapons. Syria is engulfed in a civil war and a refugee crisis now threatens the West. … This is the legacy of Hillary Clinton: death, destruction, terrorism and weakness.”

THE FACTS: It’s an exaggeration to suggest Clinton, or any secretary of state, is to blame for the widespread instability and violence across the Middle East.

Clinton worked to impose sanctions that helped coax Tehran to a nuclear deal with the U.S. and other world powers last year, a deal in which Iran rolled back its nuclear program to get relief from sanctions that were choking its economy.

She did not start the war in Libya, but supported a NATO intervention well after violence broke out between rebels and the forces of dictator Moammar Gadhafi. The country slid into chaos after Gadhafi was ousted and killed in 2011, leaving it split between competing governments.

Clinton had no role in military decisions made during the 2012 attack on the U.S. diplomatic post in Benghazi, Libya, that killed U.S. Ambassador Chris Stevens and three other Americans. Republicans’ claim that high-level officials in Washington issued a “stand-down” order delaying a military rescue in Benghazi has been widely debunked.

On Iraq, Clinton as a senator voted in 2002 to grant President George W. Bush authority to invade Iraq, but has since said it was a “mistake.” Many in the Middle East do not regret Saddam’s ouster and regional allies allowed U.S. bases in their country to support the war. But many also now fear the Islamic State group, which rose in the chaos of Syria’s civil war and Iraq’s security vacuum.

TRUMP: “America is one of the highest-taxed nations in the world.”

THE FACTS: Trump continues to repeat this inaccuracy. The U.S. tax burden is actually the fourth lowest among the 34 developed and large emerging-market economies that make up the Organization for Economic Cooperation and Development. Taxes made up 26 percent of the total U.S. economy in 2014, according to the OECD. That’s far below Sweden’s tax burden of 42.7 percent, Britain’s 32.6 percent or Germany’s 36.1 percent. Only three OECD members had a lower figure than the U.S.: Chile, South Korea and Mexico.

TRUMP: “My opponent wants to essentially abolish the Second Amendment.”

THE FACTS: Hillary Clinton has not proposed any revocation of the constitutionally protected right to bear arms. She does support a ban on certain military-style weapons, similar to the law President Bill Clinton signed in the 1990s. That ban expired after 10 years and was not renewed. Clinton also backs an expansion of existing criminal background checks to apply to weapons sales at gun shows. The checks now apply mainly to sales by federally licensed gun dealers.

Associated Press writers Josh Boak, Stephen Braun, Deb Riechmann, Jim Drinkard and Alicia A. Caldwell in Washington and Elliot Spagat in San Diego contributed to this report.