Documents: SEC Probing McAuliffe's Former E-Car Firm
Source: NBC4Washington (D.C.)
Documents: SEC Probing McAuliffe's Former E-Car Firm
By Bob Lewis
Friday, Aug 2, 2013 | Updated 9:14 PM EDT
The electric-car company headed until last fall by Democratic Virginia gubernatorial candidate Terry McAuliffe and a sister company led by the brother of former Secretary of State Hillary Clinton are under federal scrutiny over how they used a foreign investor visa program.
Nearly 100 pages of newly released documents reveal the Securities and Exchange Commission in May subpoenaed records of GreenTech Automotive and Gulf Coast Funds Management, a partner in GreenTech's efforts to establish plants in Mississippi. The inquiry is related to their use of a Department of Homeland Security program that grants permanent residency to foreign investors who invest $500,000 or more in economically struggling areas for ventures that create American jobs.
McAuliffe is a former chairman of the Democratic National Committee and close friend and chief fundraiser for the presidential campaigns of Bill and Hillary Clinton. He was a co-founder and chairman of GreenTech until he quietly resigned after announcing his candidacy for governor in November.
"I left the company in December of last year, and I don't know anything about it,'' McAuliffe said after participating in a forum in Wytheville, Va., with state Attorney General Ken Cuccinelli, his Republican opponent in the nation's only competitive governor's race this fall... MORE
Read more: http://www.nbcwashington.com/blogs/first-read-dmv/Documents-SEC-Probing-McAuliffes-Former-E-Car-Firm-218176922.html
Well this is just great. What crappy timing, too.
FarPoint
(12,309 posts)It does not have to be true...just raise suspicion....ring the bell. The GOP is trying desperately to level the playing field.
lynne
(3,118 posts)- I doubt that either party can command a Securities and Exchange Commission investigation as a political ploy.
they are just ringing bells and false alarms. Cause confusion.
SkyDaddy7
(6,045 posts)theHandpuppet
(19,964 posts)Have to admit, this makes me suspicious of just who launched this investigation.
http://www.sec.gov/News/Article/Detail/Article/1356125787012#.Ufz2ya_D-M8
rurallib
(62,401 posts)cosmicone
(11,014 posts)just as a compliance matter. It doesn't immediately mean wrongdoing -- unfortunately, the low-information Americans don't know this.
A doctor investigates by poking his finger in a lot of butts ... doesn't mean all of them have prostate cancer.
sulphurdunn
(6,891 posts)the criminal spotlight away from Gov. Bob the Bling McDonnell and his sidekick in crime, wanna be governor Kenny the Cucch Torquemada.
iamthebandfanman
(8,127 posts)and believe me id rather a democrat win the race but...
Lets not pretend Terry McAuliffe is a saint or even a good person :p
matthews
(497 posts)what the particular problem IS with GreenTech better than this does. Everytime I try I end up bungling it so I'll just use this seeing that it's pretty up-to-date and only describes events without assigning any guilt/innocence.
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McAuliffe's role in GreenTech, which he has touted as proof that he has executive experience to be Virginia's governor, has been heavily scrutinized by the media and lambasted by Ken Cuccinelli's campaign, and has become a major issue in the 2013 race.[22] In December 2012, McAuliffe was questioned as to why he chose to locate the factory in Mississippi as opposed to Virginia. McAuliffe claimed that he wanted to bring the factory to Virginia but the Virginia Economic Development Partnership, the state's business recruitment agency, chose not to bid on it.[23] However, in January 2013, PolitiFact declared McAuliffe's claim to be false, reporting from emails obtained from VEDP under the Freedom of Information Act that VEDP was interested in building the factory in Virginia, and its representatives toured potential sites with GreenTech representatives, but GreenTech went ahead with the Mississippi plant before VEDP could complete its due diligence.[23] VEDP was skeptical of GreenTech's business proposal, and when it asked the company to address its concerns, received no response.[23] The Associated Press also examined the documents and found that GreenTech never supplied the required data to VEDP.[24] McAuliffe said he disagreed with PolitiFact's report, and said other GreenTech executives made the decision, but did not offer specifics as to how the report was mistaken.[24]
In April 2013, Watchdog.org obtained more emails and in a series of extensive reports on GreenTech and McAuliffe revealed that VEDP was wary of GreenTech's financing because it relied heavily on the EB-5 visa program which provides green cards to foreign nationals who invest money in the United States. A VEDP official wrote that she was concerned that GreenTech's project was "a visa-for-sale scheme with potential national security implications."[22] Further concerns were raised when GreenTech failed to pay its taxes on time on the site it owns in Mississippi where it plans to open a new facility in 2013.[22] Watchdog.org quoted an investment adviser as saying the company was a "fraud investment" because of its use of the EB-5 program.[18] In April 2013, McAuliffe's campaign began referring questions about GreenTech to the company.[18] On April 12, 2013, GreenTech filed an $85 million lawsuit against Watchdog.org, alleging libel and saying the site's reports jeopardized millions of dollars in investments.[18] Watchdog.org has denied that it committed libel. McAuliffe's campaign has declined to comment and referred questions to GreenTech.[18]
**
In July 2013, McAuliffe's role in GreenTech became a national issue after President Barack Obama's nominee for Deputy Secretary of the Department of Homeland Security came under investigation by the department's inspector general for mismanaging the EB-5 program and was accused of giving special treatment to McAuliffe and GreenTech.[25]
18)a b c d e f Kunkle, Fredrick (2013-04-12). "Car company founded by McAuliffe files $85 million suit over Web site articles". Articles.washingtonpost.com. Retrieved 2013-07-29
22) a b c Vozzella, Laura (2013-04-10). "Democrat Terry McAuliffes role in GreenTech scrutinized". Articles.washingtonpost.com. Retrieved 2013-07-29.
23) a b c "Terry McAuliffe says Virginia officials "decided not to bid" on his electric automobile plant". Politifact.com. Retrieved 2013-07-29.
24) a b Fredrick Kunkle. "Cuccinelli raps McAuliffe over location of green car plant". Washingtonpost.com. Retrieved 2013-07-29.
25) Ben Pershing and Tom Hamburger (2011-02-25). "Homeland security deputy nominee says he didnt give Terry McAuliffe special treatment". Washingtonpost.com. Retrieved 2013-07-29.
http://en.wikipedia.org/wiki/Terry_McAuliffe
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The guy made 18 million out of a hundred thousand dollar investment in Global Crossing. He's parlayed his relationship with the Clintons into a personal fortune. He's a political trollop of the worst kind. We can't do better than this raging opportunist? He is about as respectable and trustworthy as Max Baucus or Diane Feinstein. We need to start facing the facts. If the Democratic Party keeps fronting for people like this, we look pretty damn silly calling the Republicans or anyone else names for their less that 'stellar' candidates and office holders. But this is one of the biggest drawbacks of 'professional' politics and politicians. They're far more concerned in feathering their own nests than they are with what is happening to the rest of us.
I've never doubted for a minute that McAuliff won't be able to find a way to screw this election up.
Dawson Leery
(19,348 posts)Dawson Leery
(19,348 posts)"Documents posted on the website of Sen. Charles E. Grassley, R-Iowa and the ranking member of the Senate Judiciary Committee, show that the SEC's subpoena sought unspecified documents from GreenTech and banking records from Gulf Coast. "
Sounds like a political hit job by the little scumball.
Dawson Leery
(19,348 posts)Federal authorities have not implicated McAuliffe or his former company in wrongdoing. McAuliffe's campaign dismissed Tuesday's news of the Mayorkas investigation and Cuccinelli's bid to exploit it.
"The investigation does not involve Terry and we hope that it is completed in a timely matter,'' McAuliffe campaign spokesman Josh Schwerin said. "Cuccinelli's attacks are an attempt to distract from his ties to the Star Scientific scandal.''