May 17, 2016

Clinton Global Initiative Hit With An IRS Complaint

Last week the Wall Street Journal published a blockbuster report that the Clinton Global Initiative used charitable funds to benefit a for-profit company owned by friends of the Clinton. Now the IRS is being asked to take a look into the shady arrangement.

Under federal law, tax-exempt charitable organizations are not allowed to act for the benefit of private interests. Yet, the Clinton Global Initiative gave $2 million to a company owned by Clinton cronies:

The Journal article documented the Clintons’ ties to the owners of Energy Pioneer Solutions Inc. that benefited from a $2 million commitment coordinated by the Clinton Global Initiative, a wing of the foundation. Julie Tauber McMahon, a close friend of former President Bill Clinton, owned a 29% stake in the company, while Democratic National Committee treasurer Andrew Tobias owned 5% and Mark Weiner, a supplier to political campaigns and a longtime friend of the Clintons, owned 5%.”

In response to this news, American Crossroads asked the IRS to investigate the Clinton Global Initiative for possible violations of federal law. For American Crossroads President Steven Law the Wall Street Journal article clearly provides the IRS with “probable cause” to investigate CGI:

“These two articles appear to provide ‘probable cause’ for an IRS investigation into whether the Clinton Foundation wrongly provided private benefits to close friends and supporters of the individuals who control the organization,’ American Crossroads President Steven Law wrote in the complaint. ‘In fact, it is undisputed that the Clinton Foundation used its charitable assets to aid a for-profit corporation owned by people with direct personal and political connections with the Clinton Family, which in turns controls the Clinton Foundation.’ He called the foundation ‘unlike any other family-linked charitable foundation in memory.’”

The questions swirling around the Clinton’s foundation activities have long been identified by Clinton allies as one of her biggest vulnerabilities. These new actions will only intensify that concern, especially as Clinton continues to fail to unity the Democratic Party.