Seth Tupper exposes our Congressional delegation’s lukewarm laziness on EB-5 reform. Then he reminds us how bad all the other players in South Dakota’s EB-5 scandal look… including Brendan Johnson.
Tupper recites the multi-million-dollar monkeyshines Joop Bollen committed as our EB-5 czar and wonders how Bollen hasn’t been brought to justice:
David North, a fellow of the Center for Immigration Studies in Washington, D.C., said he thinks some of the conduct revealed in the letter could be criminal. He wonders why an investigation into South Dakota’s handling of the EB-5 program by the FBI concluded in June with the announcement that no charges would be filed by the U.S. Attorney’s Office.
“How can the U.S. attorney, with a straight face, presumably knowing most or even just some of the things the USCIS found, how could he decide not to press a case?” North asked [Seth Tupper, “New Allegations About EB-5 Have Yet to Hurt Joop Bollen,” Rapid City Journal, 2015.11.08].
The FBI and current U.S. Attorney Randy Seiler decline to answer that question. Former U.S. Attorney Brendan Johnson says he knows nothing because he recused himself from the case:
Johnson told the Journal this week that when EB-5 allegations first crossed his desk as U.S. attorney, the political climate was such that he felt it was necessary to immediately recuse himself from the investigation.
That climate included the winding down of the U.S. Senate career of his father, Tim; designs on that Senate seat by former Gov. Mike Rounds, under whom the state’s EB-5 regional center was founded and flourished; and speculation — confirmed as accurate by Brendan Johnson in a Journal interview last week — that the he was mulling his own possible Senate candidacy.
“Having me involved in decisions that could cast aspersions or determine liability when it came to the governor’s office, it felt to me that it would give the appearance of being political,” Johnson said in explaining his recusal decision. He ultimately decided against running for the Senate [Tupper, 2015.11.08].
Johnson decided against running for Senate in May 2013, less than two months after the State of South Dakota received a federal grand jury subpoena for EB-5 records. The federal investigation continued for over two years, until the FBI closed it on June 1, 2015. Brendan Johnson’s political excuse for not exerting himself on the EB-5 investigation faded in May 2013; it completely evaporated on Election Day 2014. He could have unrecused himself and pushed for the justice that his counterparts at USCIS have found is needed (on evidence published in this blog and other South Dakota media back in late 2013).
Tupper gets more sweet nothings from Attorney General Marty Jackley:
“Based upon a state investigation of state crimes, we made a determination that there was sufficient evidence to move forward with grand jury proceedings on Richard Benda,” Jackley said. “There wasn’t sufficient evidence of other state criminal activity, but we certainly keep an open mind and review additional matters. Additional matters have surfaced, and we’re reviewing them” [Tupper, 2015.11.08].
…and Senator Larry Tidemann, who “led” the Government Operations and Audit Committee “investigation” of EB-5 in 2014:
“What he did as a public employee, that information we can review as GOAC,” Tidemann said. “What he did as a private entity is really between he and the federal (government). And if they feel that he’s done misdeeds, then it’s up to them. I can’t intervene at the federal level.”
The Journal asked Tidemann if he thinks Bollen did anything wrong during his time as a state employee or state contractor.
“I’m not going to comment on that,” Tidemann said. “I’ve already commented that we looked at the records when he was a state employee, we did the audits on the things that were part of the state. As a private entity, I don’t have access to go to look at all those things [Tupper, 2015.11.08].
Can’t look, won’t look, won’t even say… good grief, Larry! Let me show you how easy it is: Joop Bollen broke the rules (not just federal rules, Larry, but South Dakota rules). Joop Bollen hurt South Dakota. South Dakota should hold Joop Bollen accountable.
Governor Dennis Daugaard is at least squeezing Bollen with two civil lawsuits and laying blame on him for our shoddy EB-5 reporting to the feds. But he keeps portraying most of the malfeasance as something for the feds to deal with. Arrgghh! What ever happened to South Dakota self-reliance?
At best, the hesitance of all of these political figures, Brendan Johnson included, to call a spade a Maverick Spade suggests a lack of leadership as grave as that of our Congressional delegation on EB-5. At worst, it signals that the powers that be can’t afford to seek real justice on EB-5, because pulling the Joop Bollen thread would unravel a tapestry of corruption into which every big player is knit.
So we are left with a political decision to cover up and a political decision not to push an investigation.
They deleted the emails, they turned off the cell phones, the records have been misplaced, people are dead and millions are missing. Just another day in South Dakota. When will we be “shocked” by another one of these?
Is business as usual OK with you? Will anyone ever exceed my low expectations and tell me the truth about EB-5 or Platte?
Jeff: call out the cowards in SDDP.
All they need around here is a dead guy to blame everything on. Once they have that, everything else gets swept under the rug. The EB-5 investigation leads to Mike Rounds and his brother, and Republicans don’t want to go there. Politically ambitious Brendan Johnson didn’t want to rock the boat himself, but I suspect that he has something to do with the USCIS taking action.
Just like Gear Up, it takes a village to perpetrate such a large-scale scam.
The question of the day, which office is more corrupt, the SD Department of Education or GOED?
Maybe the NRA is handling the PR work for wingnuts in Dakota. Yeah,you need more scandals,not less,to fight the scandals you already have. The only way to stop a bad guy with a scandal is a good guy with a scandal. That’ll fick sit.
This is all country club business. These guys hunt together, drink together and generally are friendly with one another. Why would you rock the boat when you have lower level pawns that can be sacrificed? In the case of the US Attorney’s office, that is an enigma. What goods did they have on that office that it suddenly shut down? As good reporters have been able to find the pieces of the puzzle with effort, law enforcement should have been able to find the same with little effort. These investigators, Ross, Mercer, Cory, Seth and others, are to be commended for doing a job that the state and federal law enforcement should be doing. Jackley, Brendan Johnson and the laundry dude, should never ever be considered to hold any kind of public office in South Dakota or Washington. They are the problem, the crooks called them friends and they did everything in their power to shield them.
The lack of total outrage and lack of fists pounding on tables astounds me. Or maybe it doesn’t – since this is occurring in the state that gets an “F” rating when it comes to ethics, corruption, and transparency.
http://www.publicintegrity.org/2015/11/09/18693/only-three-states-score-higher-d-state-integrity-investigation-11-flunk
Wow, there are only 3 other states that are more corrupt than we are. Republican corruption rules! The Jackley-Daugaard team are trying their best to beat the little swindler they inherited it all from, to reach their goal of 50! Proud times indeed as it goes on with a yawn and a shrug of the shoulders to ignorant voters.
People in South Dakota are comfortable where they are. We can raise an eyebrow when a half dozen folk are killed now and then but we save our real outrage for things going on in DC, Chicago, Florida or Iran. Hey! It’s not like Charles Manson is on the loose! I got mine is our motto.
The City of Grand Junction, Colorado, and it’s Mayor, Reford Theobald, spent $64,000 of taxpayer money in 2001 to erect a “Cornerstone of Law and Liberty” plaza in front of city hall so they could display a monument of the Ten Commandments.
Reford Theobald led the fight to keep the Ten Commandments on city property.
So, guess who got caught breaking one of the Big Ten?
The mayor got busted for stealing 2-count ’em-twq candy bars from a Cabela’s Store. How far is Grand Junction from Pierre?
Former mayor and former councilman. My apologies to the candy bars.
We haven’t heard from Tory Jones lately so I’ll fill in for him:
Nothing to see here. Move along.
Rorschach,
He must also be on the editorial board of Sanford Leader.
Rors,
Troy Jones could easily explain the whole EB-5 scandal away, he is really good at that.
If I recall, TJ was as suspicious of Mr. Bollen as any of us. His hesitation was in extending that suspicion to Mr. Rounds and other GOP leadership. I’d be really surprised to see him try to defend Joop here.
I concur with Fleming’s recollection. Jones is no ally of Joop; he was just very skeptical of what looked to him like an effort by us Dems to drag Rounds into a scandal not of his making.
I appreciate skepticism, but I think the USCIS conclusions support the conclusions I was offering last year: Rounds made a mess allowing Bollen to run and privatize EB-5 in South Dakota.
this is really the big story in the state, imo. and it relates to westerhuis.
how do we obtain accountability and usher the republicans out the door? rachel maddow sees similarities in north/south carolinas and suggests it will take dems a few election cycles.
if we accomplish anything in this state, it should be this.
I tend to agree that Troy’s comments have been in good faith. Indeed, I would not be surprised if he left the “dark side,” given his compassion and empathy for folks hurt by the conservative behavior these days.
There are a whole lot of Democrats who share some blame in the EB-5 mess. Two years ago, when Kathy Tyler called for an investigation into the EB-5, before the 2014 legislative session got started, she had no one and I do mean no one even from her own party to stand with her and demand that investigation.
As far as Brendan Johnson not wanting to look political and so recuse himself from the investigation, he committed a political act by doing so. IMHO he disqualified himself for future consideration for public office, elected or appointed. He didn’t have enough courage to do his job when he was appointed.
jerry, I called the US Attorney’s office here in SF in the spring of 2014 to ask when we would get some information on that office’s investigation into the EB-5 corruption. (I typed summer first, but then remembered that it was spring, because I wanted the information out before the Republican primary in June, as I was supporting Stace Nelson in the primary and hoped that he would take MMR out in the primary.)
I was essentially stonewalled. If memory serves, I put something on one of Cory’s blogs suggesting that more people call and I even gave the phone number that they should call.
bearcreekbat, “given his compassion and empathy for folks hurt by the conservative behavior these days.”
Where did you see signs of that?
King: “it takes a village”—I’m going to borrow your borrowed line. Thanks!
It take a village to corrupt a state.
Nah, Cory. It takes a lot of villages to corrupt a state. A lot of villages of people not paying attention, and just voting the party line.
Lanny, I agree that Dems bear some responsibility for the corruption rampant in the state. Tim Johnson backed EB-5. Going deeper, Johnson stood next to Rounds at the grand opening for Dakota Provisions, which later became a big EB-5 recipient.
For what it’s worth, Dems did back Kathy Tyler and push on EB-5 in fall 2014 at the statewide level, but I’m not convinced Dems worked hard enough at the local/legisaltive candidate level to push EB-5 as a voting issue. (I’m open to correction from candidates who did make the case.)
But now, Lanny, we get a chance to take another shot at EB-5, now in tandem with other scandals. We start with the theft of a historic state flag—in what universe does that theft happen?—then start telling the full story of overconfidence, lack of oversight, and rank greed and corruption that runs through Gant, GEAR UP, and GOED.
Cory, it was in the fall of 2013, that Kathy Tyler pressed for an EB-5 audit and investigation and got no backing.
Okay, I am back from my bike ride. The point that I am trying to make, is that if other Dem legislators had joined with Kathy in the fall of 2013 demanding an investigation and audit, maybe some of the Republicans would have joined in and said yes we do need to look at what happened. With only one speaking about it, the Republicans were able to do what someone on here said earlier that Troy Jones said, “nothing to see here, let’s move on.”
So what happened, we elected a US Senator, that now may have to resign and or be removed from office. Then the next result, one of his compadres in crime gets to appoint the next US Senator, who will then have to run in 2016, but can do so as the incumbent, as Chris Nelson did for PUC in 2014, after being appointed to the job in 2012, when Dusty Johnson resigned to take over as Daugaard’s chief of Staff.
The Dems need to be ready in 2016 with two good US Senate candidates and a great House candidate. If they play it right they can retake all the major posts from SD in DC.
Lanny, I have enjoyed debating Troy on this blog, on Madville, and through exchanging emails. Although we differ on many (perhaps most) public policy issues, I was always left with the impression that Troy cares deeply for fellow humans.
I think it legitimate to challenge the effectiveness of some of his positions, but I have seen nothing that would make me question his motives.
lanny-great comments. tim was not at fault introducing EB5, and there is nothing really wrong with a program from the 90s in theory but the execution in SD and some other immature states has been horrendous. I find tim’s son’s action atrocious. it didn’t fit his timing. most problematic was the depth and complexity of the issue, and others like it that take years to get on top of. perhaps I expected too much from Brendan. but I think USICS (and SEC scrutiny in EB5 matters) action is coming from the very top. SD and its EB5 and Medicaid shenanigans have not gone unnoticed in the WHITEHOUSE (RICH-on another thread) imo
Thank you Leslie. My biggest political regret of my lifetime is that I was not able to affect any change in the election of MMR and DD in 2014. To me they are the epitome of what is wrong with politics in the USA.
Brendan is the epitome of our problem in SD and both parties. The puppets only act when the strings are pulled.