CREW Files IRS Complaints against VA Gov. Bob McDonnell, Maureen McDonnell, and VA AG Ken Cuccinelli Business Wire WASHINGTON -- July 23, 2013 Today, Citizens for Responsibility and Ethics in Washington (CREW) called on the Internal Revenue Service (IRS) to investigate whether Governor Robert McDonnell (R-VA), his wife, Maureen McDonnell, and Attorney General Kenneth Cuccinelli (R-VA) violated tax law by failing to report and pay taxes on income received from Jonnie R. Williams, Sr. and Star Scientific, Inc. CREW Executive Director Melanie Sloan stated, “Their tax returns may turn out to be the McDonnells’ and Attorney General Cuccinelli’s Achilles’ heels. Even if prosecutors have a tough row to hoe proving willful and knowing violations of gift and bribery laws, tax violations may be easier to pursue. Al Capone, after all, was convicted not of extortion or murder, but tax evasion. The IRS should investigate immediately.” In the past two years, Gov. and Mrs. McDonnell have received at least $166,150 in payments, goods, and services from Mr. Williams, a trust he controls, and his company. At the same time, Gov. and Mrs. McDonnell repeatedly promoted Anatabloc, a dietary supplement critical to Star Scientific’s success. Additionally, Mrs. McDonnell hosted a luncheon at the governor’s mansion to launch Anatabloc and touted it to potential investors. Since 2009, Attorney General Cuccinelli has received at least $18,893 in goods and services from Mr. Williams, including lodging for several family vacations at Mr. Williams’s lake house, trips on his private jet, and a box of Anatabloc valued at $6,711. During the same period, the attorney general purchased nearly $20,000 worth of Star Scientific stock, and his office oversaw the investigation and prosecution of the governor’s former chef, who revealed alleged misconduct by Mr. Williams and Gov. and Mrs. McDonnell. The Internal Revenue Code requires taxpayers to report all income received. A gift can only be excluded from income if it was genuinely given out of generosity with no expectation of receiving a benefit in return. Similarly, only a bona fide loan — one the borrower expects to pay back and the lender expects to be repaid — may be excluded from reported income. Failing to report all income and pay taxes can result in fines and criminal liability. Sloan continued, “Given everything the McDonnells failed to disclose and all Attorney General Cuccinelli ‘forgot’ to disclose, it seems highly unlikely they would have declared the income on their tax returns. Further, it defies credulity to believe Mr. Williams expected no benefit in return for the many gifts he bestowed on Virginia’s most powerful politicians. Attorney General Cuccinelli has been quick to criticize his Democratic gubernatorial opponent, Terry McAuliffe, for failing to release his tax returns. Perhaps he’d like to allow journalists to re-examine his own returns so the public can learn whether he accurately reported his income.” CREW also requested the IRS investigate whether Mr. Williams or Star Scientific violated the tax code by failing to report the supposed gifts, failing to pay potential taxes on those gifts, or improperly deducting the gifts as business expenses. Read the IRS complaint against Gov. and Mrs. McDonnell *Read the supporting exhibits Read the IRS complaint against Attorney General Cuccinelli *Read the supporting exhibits Read this release on CREW’s website Citizens for Responsibility and Ethics in Washington (CREW) is a non-profit legal watchdog group dedicated to holding public officials accountable for their actions. For more information, please visit www.citizensforethics.org or contact David Merchant at 202.408.5565 or firstname.lastname@example.org. Contact: CREW David Merchant, 202-408-5565 email@example.com
CREW Files IRS Complaints against VA Gov. Bob McDonnell, Maureen McDonnell, and VA AG Ken Cuccinelli
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