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McAuliffe car co. parent in off-shore tax shelter

By   /   April 29, 2013  /   News  /   174 Comments

Part 15 of 76 in the series Terry McAuliffe - Carmogul

By Tori Richards and Earl Glynn | Watchdog.org

AP photo

GREENTECH BUDDIES: At the 2012 GTA opening from left: unidentified man, Terry McAuliffe, Bill Clinton, Haley Barbour and Charles Wang.

The parent company of a “green” car venture with ties to the Obama administration and Democratic Party leader Terry McAuliffe is incorporated in the tax shelter country of the British Virgin Islands, Watchdog has learned.

Yet just nine months ago McAuliffe, former Democratic National Committee chairman and part owner of GreenTech Automotive Inc., blasted Mitt Romney over allegations the presidential candidate had an offshore bank account.

“You’re running for president,” McAuliffe told the Daily Caller. “People just don’t get that. I mean, why do you have an offshore bank account? So we’ve got a long way to go.”

Fledgling GreenTech was founded in 2009 by Chinese businessman Charles Wang, who owns Capital Wealth Holdings (CWH), an investment company incorporated in the British Virgin Islands.

According to court documents, GreenTech is a subsidary of CWH and McAuliffe obtained 25 percent of the stock. GreenTech’s headquarters were then incorporated in Virginia and its manufacturing plant was located in Mississippi. Next, it started recruiting outside investors – primarily from China – through a program called EB-5 that grants visas to foreign citizens in exchange for minimum $500,000 investments in U.S. companies.

Where did GreenTech come from? According to the Miss. Secretary of State, the British Virgin Islands

Where did GreenTech come from? According to the Miss. Secretary of State, the British Virgin Islands

“The Chinese government has the U.S. auto industry in its cross hairs and is using every ploy possible to get into the business via U.S. politicians and struggling entrepreneurs in the ‘green car’ industry,” said economist Greg Autry, who lectures on China and authored the book “Death By China – Confronting the Dragon.”

“A company wants to be in the BVI for one reason: TO AVOID PAYING US INCOME TAXES,” Autry said in an email exchange with Watchdog.

Further, the BVI has no taxes on foreign companies that put money there; no mutual treaties with the U.S. or anyone else to report income or assets; and has a very strong tradition of client privacy and asking no questions about the source of funds, Autry added.

The British Virgin Islands is the second largest source of capital investment flowing into China, an investigation by the International Consortium of Investigative Journalists has found.

CWH and GreenTech are private companies, but Watchdog learned through public documents that a third businessman planned to pour $6.5 billion into the green car venture. Court documents state that he spent $15.6 million before a falling out that led to the lawsuit.

At one point, GreenTech had 10 billion outstanding shares of stock, which were set to be sold at a penny a piece.

AP photo

Terry McAuliffe — A stake in an off-shore company.

A professor at Chapman University in California said it’s curious that GreenTech filed public documentation of its mergers given the companies are private.

“We can only speculate what they are trying to do,” said Fadel N. Lawandy, director of the C Larry Hoag Center for Real Estate and Finance. “It’s weird that they’re very transparent in what they are doing. What the holding companies are all about and why they are based out of the British Virgin Islands; that would be speculation.”

But the documents appear to be  “very straightforward” and clear that 25 percent of GreenTech belongs to McAuliffe.

“When two companies merge together (filing a stock share exchange document) is a method” of co-ownership, Lawandy said. “We can do it in cash where I give you cash or I can give you shares. There is no real common way of doing it. “

Either way, GreenTech apparently has the funds to pay for top talent. It has employed Obama aide Rick C. Wade as its Head of China Operations. Wade was assistant chief of staff at the U.S. Department of Commerce until he quit in 2011 to serve simultaneously as spokesman for Obama’s presidential campaign and work at GreenTech.

The green carmaker’s presidential connections don’t stop with Obama. Last year Bill Clinton attended the opening launch of its Mississippi car plant and his brother-in-law, Anthony Rodham, helps solicit EB-5 funds through Rodham’s company Gulf Coast Management. Both Gulf Coast and GreenTech share an office suite.

AP photo

GreenTech CEO Charles Wang at groundbreaking ceremony in Miss.

Obama’s crusade against Romney didn’t stop with the British Virgin Islands – his lead campaign adviser Robert Gibbs questioned investments in Bermuda.

At one point GreenTech’s majority owner Charles Wang was also director of Compass Pacific Holdings, a Hong Kong company incorporated in – where else? Bermuda. One of Compass Pacific’s missions was to pursue a hybrid car project.

“It was reported that Mitt Romney has taken pretty extraordinary steps to hide the fact that he has a shell corporation in Bermuda,” Gibbs said during an MSNBC interview. “We’ve got to know why he has that money there. The American people deserve to know if he’s sheltering this money somewhere or, quite frankly, is not paying the taxes that he owes.”

Contact Tori Richards at [email protected] or on twitter @newswriter2.

Please, feel free to “steal our stuff”! Just remember to credit Watchdog.org. Find out more


Part of 76 in the series Terry McAuliffe - Carmogul
  1. VA: As he runs for governor, McAuliffe wheels and deals electric cars in Mississippi
  2. VA: Media echo Watchdog exclusive on McAuliffe’s electric car maneuvers
  3. No news here: PolitFact brands Terry McAuliffe’s electric-car claim ‘false’
  4. Experts question source of McAuliffe car-company funding
  5. Terry McAuliffe on business ventures: ‘Some work, some don’t’
  6. How McAuliffe’s car company failed the Virginia test, landed in Mississippi
  7. Virginia official wants probe of McAuliffe company ‘visa-for-sale’ program
  8. McAuliffe car company sues Watchdog in libel claim
  9. Barack Obama’s GreenTech connection: Rick Wade
  10. Silence, secrecy, cops follow GreenTech’s China deal
  11. McAuliffe hones China’s crony-capitalism model in U.S.
  12. Promises keep Tunica County afloat
  13. McAuliffe company’s China hook-up: Will it work?
  14. McAuliffe car lags in Domino’s delivery
  15. McAuliffe car co. parent in off-shore tax shelter
  16. Lawmaker gives feds one more week for EB-5 answers
  17. Bolling: McAuliffe’s Mississippi package ‘attractive’
  18. Inside, execs knew McAuliffe plan had ‘substantial risk’
  19. Union darling McAuliffe and his non-union car company
  20. Did Clinton aid the birth of ‘McAuliffe’ car company?
  21. McAuliffe feels heat over GreenTech resignation
  22. TV report: One year later, ‘party is over’ at GreenTech
  23. Months after he said he left company, McAuliffe kept talking GreenTech
  24. Clinton connection: More money for McAuliffe
  25. Terry McAuliffe used loophole to avoid key SEC oversight of his car company
  26. VA officials: McAuliffe green car more politics than biz
  27. McAuliffe car company announces it’s ready to roll — again
  28. Before Watchdog, McAuliffe blamed federal officials for money trouble
  29. McAuliffe gets cash from GreenTech exec, board members
  30. Watchdog report on McAuliffe spurs FOI request to Homeland Security
  31. McAuliffe leaves GreenTech questions hanging at debate
  32. Totally wired: McAuliffe went to Napolitano to expedite company funding
  33. McAuliffe bragged about GreenTech’s cash position while begging feds for faster processing of ‘cash for visas’
  34. Investigation targets Homeland official’s relationship to McAuliffe company
  35. Even before news of federal probe, McAuliffe ducked GreenTech questions
  36. McAuliffe company pressed Homeland official on 81 investor visas
  37. Rodham company sought visa for controversial Chinese exec
  38. Immigration official says he met with McAuliffe to discuss visas for foreign investors
  39. Whiners: Mayorkas says Gulf Coast ‘continues to complain’
  40. VIDEO: Ex-GreenTech employee says little happened at Horn Lake plant
  41. Online ad to Terry McAuliffe: Drop your lawsuit
  42. National security on ‘hold’: Lawmakers press McAuliffe for answers
  43. Citizens United documentary film delves into McAuliffe, GreenTech
  44. VIDEO: Terry McAuliffe’s 15 million-square-foot car plant … in China
  45. Feds call McAuliffe car company’s use of investment program ‘possible fraud’
  46. GreenTech courted Obama’s Solyndra aide
  47. GOP legislators call for McAuliffe to answer GreenTech questions
  48. McAuliffe ‘desperate’ over documentary, Citizens United says
  49. GreenTech weighed Fisker-style federal loan
  50. Group tells Terry: Follow ‘McAuliffe Standard’ on disclosure
  51. Car and Driver races into GreenTech controversy
  52. Congressman: McAuliffe owes Virginians explanation about White House meeting
  53. Feds loosen oversight as McAuliffe car company makes mysterious management change
  54. GreenTech execs use Times and ABC to throw McAuliffe under the (non-electric) bus
  55. Aide in union contribution swap hosts California fund-raiser for McAuliffe
  56. Despite denials, docs show McAuliffe company asked feds to fast-track visa for investor tied to spy list
  57. Former Democrat Party director was on GreenTech payroll
  58. More bad news for McAuliffe car company as GreenTech China venture stalls
  59. Clinton Foundation posts deficits on McAuliffe’s watch
  60. VIDEO: GreenTech record dogs McAuliffe at energy forum
  61. Auto industry expert labels McAuliffe electric car ‘preposterous’
  62. Democratic leaders have their own Bain pain in Mideast private equity deal
  63. Hillary PAC adviser served as GreenTech spokeswoman
  64. New emails add evidence McAuliffe pressed U.S. officials to approve GreenTech funding
  65. After endorsement, Post shrinks facts to cover Terry McAuliffe
  66. Ties that bind: Following the McAuliffe-Clinton money trail
  67. McAuliffe tilts at windmills; Chinese venture goes bust
  68. Federal investigations cast shadow over McAuliffe on Election Day
  69. DHS inspector over GreenTech-McAuliffe case is under investigation
  70. McAuliffe names former GreenTech employee secretary of commonwealth
  71. McAuliffe lawyers, accountants sort GreenTech stock amid federal investigations
  72. Nuking filibusters, Dems clear way for Mayorkas at Homeland Security
  73. U.S. judge hands Watchdog a victory over VA governor’s green-car company
  74. Attorney: McAuliffe is ‘100 percent divested’ of GreenTech
  75. Investigation finds Mayorkas used visa program to help White House allies
  76. Criminal investigation sought in McAuliffe-Mayorkas dealings


Tori formerly served as staff reporter for Watchdog.org.

  • Boris_Badenoff

    Typical lying corrupt politician…

    Politicians ARE the problem.

  • Jake

    I wonder if the CEO paid for his daughter’s wedding catering bill, let him vacation at his lake house, flew him in his private aircraft, or gave him the keys to his Ferrari?

  • dontcare4uatall

    Bet the dude gets a new job as Obama’s ACCOUNTABILITY CZAR! lol

  • None None

    Just another toad in the road. People are judged by the company they keep.

  • What would be left if we took money out of politics?

  • Sammy U

    This guy was always a grade A prik.

  • The dude is running for governor of Virginia.

  • Hawkdriver1961

    Hypocrisy of the left knows no bounds….

  • tightloops

    What’s so surprising here? Democrats with off-shore accounts——Who knew? Seriously the only ones surprised are stupid people who vote Democratic. Not saying the R politicians are different they just don’t go around bad-mouthing people who have off-shore accounts like the hypocritical Democrats. Perhaps Dem voters might do some research how many times Democrats have made and broken the same promises……..like since the 1940s maybe.

  • This guy is a big pile of DOG SHYT !!!! You trust a DEMOCROOK, you’re going to get your feelings hurt. For that matter trusting a Repub is about as bad, but not quite…..

  • tightloops

    Just go for the flat tax………….take away the tax incentives and there goes the corruption.

  • Democrats are impervious to scandal and they know it. That’s why you see bold stuff like this going on. They know the media has their back and the public gets too many handouts from them to care.

  • PittsburghTiger

    Should be a campaign commercial in this story…if Republicans were able to reach down and find a pair!

  • John (magnum)

    Just a T Y P I C A L leftist loon that refuses to pay his
    “F A I R S H A R E” !!!!

  • ChuckNoland

    Nothing to see here folks, move on. No double standards.

    War under Bush=Just like Nazi Germany

    War under Obama= Nobel Peace Prize.

  • Terry McAuliffe is a complete and total fraud.

  • genann59

    Gosh it is interesting how good the left is at being hypocrites. Like Obama, they are experts at do as I say, not as I do.

  • cristo52

    It’s the Democrat Party Economic Jihad, it doesn’t matter if you lie, as long as you are advancing toward your goal, which is making money for themselves while crashing the American economy. Nice job, Mr. Obama.

  • deerhound

    Democrats are a seemingly incurable venereal disease in government!

  • TXBH

    Perfect hypocrites…and the MSM isn’t calling them out on this. It’s as if they are benefitting from not reporting anything.

  • Lisa

    So, he wants to raise my taxes but he gets a tax shelter.
    …….he wants to take away my guns but has an armed escort.
    …….he wants me to pay for Obamacare, but he gets an exemption.
    Typical Politician, his stock just went up a notch,

  • Let’s just withhold “withholding” until the official tax due date of April 15th. Force the Fed to be lean and mean, like the rest of us. Can you imagine how humble and efficient the Fed would be, if it had to wait for its funding every year? Control the Fed’s ravenous appetite for your hard-earned tax dollars by eliminating their confiscation of your “taxes” BEFORE they’re legally due! Taxpayers must realize that THEY have the upper hand. Stop automatically handing over your tax money every paycheck…Opt out of withholding–it’s absolutely legal. The only caveat is that taxes must still be paid by April 15. Take control of your economic destiny one paycheck at a time!

  • genann59

    The MSM has become little but a PR branch for the left. Anyone expecting honest reporting from the MSM is not really in touch with reality.

  • jjca

    Doing in 8 years what the soviet union couldn’t do in 70 years.

  • I’m shocked.

  • genann59

    The vast majority of democratic voters see and care no further than their welfare payments. That is why so many of them are referred to as low information voters. If they watch “news” is is Jon Stewart or Bill Maher, and believe everything they hear.

  • JJSoteria

    Again proving that if it were not for double-standards, democrats would have no standards at all. The democrat party is a criminal operation.

  • elcal

    What? A hypocritical democrat? Oh, I’m so shocked!

  • genann59

    I have a friend who is an Obama supporter. Her entire family, she, her four kids, her six grandkids, two of whom are old enough to vote, her sister and her family. Before the last election I was asking her if she planned to vote as she had never bothered voting before. She said they were all required to register to vote to continue receiving their food stamps and other benefits. And she said they were all going to vote for Obama because they were afraid Romney might cut their benefits. I mentioned that if she was not aware, the money they received did not come off trees but was taken from people who actually worked and paid taxes which was then given people like her family, so basically sit around all day watching TV and/or playing video games. She really could have cared less. And the “facts” she told me about Romney were straight democratic party talking points, most of them either completely false or greatly distorted. Bought and sold voters. How he bought his reelection.

  • RT72

    Not if you are a Democrat and President. His company over the last 50 years would have kicked any other person out of contention for public office.

  • paul_vincent_zecchino

    Lickspittles to naked emporer wannabes.

  • elcal

    Where are all you liberals & democrats of any leaning defending this????
    Just a matter of time before Barry nominates him for a cabinet position.

  • Just another “Don’t do as I do, Do as I say” idiot. Nothing to see here, move along.

  • barbara

    This is the kind of “good ole boys club” crap that has got to stop. We need to take back the government from this kind of wheeling and dealing. But really, did we expect anything less from someone in Obama’s administration?

  • Solyndra

    Fuck ’em.

  • William

    ObamaNation and it’s minions are toxic to this country and our society.

  • William


  • Mark Talmont

    I watched the confirmation hearings for Treasury Secretary Lew on C-Span. When questioned about HIS Cayman Islands account–apparently at the same address as Mitt Romney’s–he said “he didn’t know much about it”. Didn’t see any reporting on this though. Google and Apple are both deep in offshore tax dodges. Eric Schmidt openly bragged about it (after the election was over). Not much media on this either, maybe they’re afraid of Google as of course they have all your searches. (Cue roaring silence from the Dems regarding Bernie Sanders actual proposal to do something about the offshoring they were all just complaining about in the last election.)

    Probably the biggest uncovered scandal of the past few years is how Clintonista Jamie Gorelick (after kiting $20 million off Fannie Mae for attending some board meetings and then going to work for BP in the middle of the Big Spill) came to the rescue of the Google executives (including Larry Page himself) who had gotten caught facilitating the sale of prescription drugs over the internet, fake prescriptions and all, and negotiated a $500 MILLION settlement to keep them out of jail. This was not covered in any media sources aside from the Wall St. Journal, and mentioned on the John Batchelor and Leo LaPorte radio programs. (Jamie now sits on the board at Google).

  • eeddggy

    Holder is getting right on this one. sarc/

  • american

    one part of the story that needs to be clarified.. the Chinese could care less about our auto market.. they just want to steal the technology!

  • Crony America


    America has been betrayed

  • eeddggy

    Moscow is erecting a statue of Obama to be prominently displayed at the Kremlin. Putin was overheard saying ” Stalin and Marx would have loved this Obama jack arse”. In addition he is reported to have said ” Wow, America has really turned into a county of pussys. I love that Public Education System Amerika has in place. Their schools actually teach that Socialism/Communism is superior to Capitalism”.

  • Joe Dutra

    Wow! Who would’ve thought?

  • nvcdude

    I’m confused here, it’s bad for Romney to have off shore accounts but it’s ok for McAuliffe? HHmmmm, hypocrisy much?

  • PurpAv

    Do as I say, not as I do

  • docwhocuts

    ah those progtard hypocrites.

  • Cooperwa

    We will hope the good people of the state of Virginia remember this when selecting their next Governor.

    This would make a good story on MSM news. Never gonna happen…

  • FL_Stingray

    “People just don’t get that. I mean, why do you have an offshore bank account? So we’ve got a long way to go.”

    Oh really? Guess what… I do not get YOU… someone who is obviously just another one of the f’n hypocrits from the Bammy crew telling US what is good and what is not.

  • Another screwed taxpayer

    Bend over America, Obama, and the rest are going to sell us all out.

  • Quick! Somehow make it an attack on George W Bush so John Stewart will talk about it!

    Seriously, no one in VA wants this psychopath to be our governor. We just fixed the mess that ass Kaine made of it.

  • More like a malignant tumor slowly killing its host.

  • One of the most corrupt people in USA. He made $100 million when Clinton was in office – and didn’t work one day for it.
    Holder will protect him from any legal issues.

  • zagnut64

    Yet another great choice. Politicians are nothing more than ticks.

  • It seems this was actually a plan to sell citizenship to rich chinese. At 500, 000 per.

  • A. Levy

    If Romney and the republican establishment weren’t such impotent weaklings, they would have turned this around on both McAuliffe and the Marxist-in-Chief.

  • Problem is the current , I love more taxes, republican. He has done more than anyone to help elect a democrap.

  • Frizz

    Like all political/ruling elites, it’s “do as we say, not as we do”, and they always exempt themselves from the consequences of their own legislation. Voters, it’s time to thin the herds of the ruling class. TEA it up.

  • almighty

    Is anyone the is not a syncophant lib tard really surprised that Barry’s associates in the democratic party a bunch of soicopathic liars that are in it for themselves? All of those democrats “helping the poor” are LOADED! Super wealthy and they got that way because of governent. Reid land deals, Boxers husband CalPERS deals, Kerry parking his yacht in a different state to avoid taxes. American’s keep election democrats that fleece them and blame capitalism as the problem. Enjoy your poverty, because the leading democrats are enjoying their wealth.

  • Jim

    Rules only apply to conservatives. There are no lines for Democrats that cannot and will not be crossed.

  • Why do certain media outlets keep reporting irregularities by Democrats? What is the point? Democrats can do no wrong doncha know?

  • People like Terry McAuliffe are the crud of the earth. A democrats with any honor or integrity must be ashamed.

  • Typical scam to funnel money to politically connected people in exchange for influence. In simpler terms It is a big bribe. Obama at a later date will be able to exercise his stock options and make a bundle.

  • *GASP* You mean, to say, he’s an evil 1%-er like Mitt Romney?

    Do as I say, not as I do. Thanks for proving that there are no rules nor accountability for the friends of the President.

  • vikings4123

    Heaven above knows all.

  • Tax Lawyer

    Read the article again. It does not claim that McAuliffe has offshore accounts. It reports that GreenTech, a domestic corporation, has a shareholder that is incorporated in the B.V.I.

    This is a non-story, written by someone who obviously doesn’t understand tax law or corporate law. As a domestic corporation GreenTech pays United States corporate income tax, state corporate income tax, and employment taxes. Its employees pay United States individual income tax, state income tax, and their share of FICA. If GreenTech has a profitable year and its board of directors declares a dividend, then the shareholders receive taxable income (dividends are taxed at regular rates) — and they pay income tax on the dividend.

    The fact that B.V.I. has no corporate income tax and thus a corporate shareholder domiciled in the B.V.I. would not pay tax on the dividends it receives is a red herring. McAuliffe happens to reside in the United States, so he pays taxes on any dividends that are paid.

    Nothing to see here, folks.

  • Tax Lawyer

    How about you detailing for us how a shareholder of a domestic corporation is a “total fraud.”

    McAuliffe owns a 25% stake in a United States corporation with operations entirely in the United States and gross receipts (and ultimately, taxable income) 100% earned and taxed in the United States. GreenTech files United States tax returns — thus, disclosing to the government its income — and pays United States taxes and contributes to the United States’ Social Security system.

    Romney, on the other hand, has foreign-earned income that he would not disclose.

  • TtwoT

    As to McAuliffe running for the governor or Virginia, it shoud be noted:
    1) 78% of his campaign contributions – as of last week, were all from oustide the state of Virginia. This information was printed in one of the metropolitan newspapers.
    2) The Clinton’s have contributed $100,000 towards McAuliffe’s governor’s campaign in Virginia.
    He can’t do it with only funds that gets from within the state. So, he has to seek all of those outside donators to assist his campaign. I’m sure his appraoch to them is quite an easy one. All he needs to do is remind those contributors outside of Virginia how he may have assisted them in the past via his fundraising efforts, then they cut a check for his campaign. Sort of like a legalized blackmail.

  • Tax Lawyer

    Read the article again. It does not claim that McAuliffe has offshore accounts. It reports that GreenTech, a domestic corporation in which he is a 25% shareholder, has another shareholder that is incorporated in the B.V.I.

    Unfortunately, the author of this article doesn’t understand corporate law and therefore implies that there is something nefarious about owning stock in a corporation in which other shareholder(s) is/are foreign.

  • C. Adkins

    it’s not who ya know,…

  • daves

    with friends like that…..

  • He always was a slimeball

  • Nefertitit

    Democrats are teflon! No main stream media will touch a Democratic scandal or impugn Democratic integrity….of course there is no such thing as Democratic integrity, look at the Gosnell trial. The horrid butchering of newly born babies by a Democratic abortionist is a veritable house of horrors and ignored by the main stream media since it might give the ‘butchery of babies’ a bad name!! Ha!
    So too here, when Democrats have off shore corporations, they get ignored, when Romney has an account, he gets butchered, but not as badly as a new born baby. New born babies have their spinal cords severed before they can fight back. Gosnell made sure of that.
    Beware, America, those babies will return to haunt the Democrats..baby killers.

  • Jack_Kennedy

    nothing new about corrupt democrats……….or them being LIBERAL HYPOCRITES

    Just goes right along with their America hatred

    ah yes, the LIBERAL LIES, VITRIOL AND HATE toward America and the Real Americans

    same old thing from the obamabot mob ………………… as they foist and then celebrate America’s suffering

  • Jack_Kennedy

    goes right along with another 8 letter word for criminal………..democrat

    as in…………………another 5 letter word for crook………….obama

  • Tax Lawyer

    By opting out of withholding you are effectively raising your own tax rate by the Federal short-term rate (rounded upward to the nearest whole percentage) plus 3 percent. That is the penalty for failure to withhold and remit estimated tax under 26 U.S.C. section 6654.

    If I were you, I would cease giving advice that could result in costing someone a lot of money.

  • kingdad

    Democrats are liars and hypocrites!
    If they are accusing someone of something you can be sure that they ( the Democrat accusers) are the ones that are actually doing it.

  • Tax Lawyer

    Huh? Please explain how McAuliffe is escaping from paying his fair share. He is an American, living in Virginia, and any income (dividends) that he receives from GreenTech Automotive is reported on his Form 1040 and taxed by the Feds, as well as the Commonwealth of Virginia. So I’d be interested to know how this constitutes “refusing” to pay taxes.

  • thefifthcolumnreport

    Libs always do what they want and never adhere to what they say; rules only apply to the stupid little people. Until Americans wake up to the lib tyrants, they get what they deserve.

  • Tax Lawyer

    Actually, four days ago the New York Times ran an article about Ken Cuccinelli’s poltical ad campaign that criticizes GreenTech’s decision to locate its plant in Mississippi rather than Virginia.

    There is no “story” on this fake tax issue, because GreenTech is taxed by both the Feds and the states of Mississippi and Virginia. The “story” is that the company took its jobs to another state. But it is false to claim that the MSM has not covered this.

  • cnnsucks

    Terry is a true sewer trout

  • GAWD

    What do you get when you mix a Chinese male with a democrat male?


  • cnnsucks

    He may end up on the Ed Show as a bofoon

  • hmmathis

    Trout? Maggot is my choice to describe McAuliffe.

  • NBA300lb_Gaylord

    A Chinese male and a democrat?
    Pull the other little yellow one……….and he will

  • Tax Lawyer

    Uh, the Democrat in this story, Terry McAuliffe, does not have an offshore corporation. The article is quite clear that GreenTech Automotive is incorporated in Virginia and its manufacturing facility is in Mississippi.

    A shareholder — in fact, the majority shareholder — is a foreign corporation. It happens to be incorporated in a tax haven. (The authors are loose on their terminology; a “tax shelter” is something entirely different from a “tax haven.” A shelter is a limited partnership or limited liability company that uses paper deductions, e.g., depreciation and investment tax credits, to leverage the time value of money paid as taxes.)

  • MSM has the Hillary attitude. What difference does it make now?

  • Tax Lawyer

    The article does not claim that McAuliffe has an offshore bank account. Read it again.

  • NotTheSheeple

    Terry McAuliffe, what a treasonous scumbag douche.

  • Logical

    According to the DNC, there is.

  • Gman51

    Oh, C’mon, I dont believe it – it’s only republicans that do this right? I mean that’s what obama told us, … wait a minute, that was around the time obama’s jobs council head, the GE guy, sent his whole X-Ray department to China… Geez, I’m confused. The demonrats wouldn’t LIE to us, would they?

  • Tax Lawyer

    What “tax shelter”? GreenTech is a domestic corporation that pays United States and state corporate income taxes as well as U.S. employment taxes on it employees who work at its headquarters in Virginia and its manufacturing facility in Mississippi.

  • timetogoO

    so what you are saying is that when the Dems screamed Romney wasn’t paying his “Fair Share” he really was?. I’d be interested to know if you wrote this same comment back then????

  • agreatsign

    It’s easy to be a giant crime syndicate and get away with it when you can print your own money, make your own laws, own the media and have the whole Dept. of Justice in your back pocket.

  • EightBall343

    The useful idiots who voted for Obama, will vote for McAuliffe, because of the (D).

  • Tax Lawyer

    How is investment of a 25% stake in a United States corporation “treasonous”? Please explain.

    BTW, the statute for treason is 8 U.S.C. § 2381. Go there to look for the definition and elements of the crime. Remember, you have to demonstrate how every single element is met, and you have to have two witnesses who saw it first hand.

  • Tax Lawyer

    Obama has options in GreenTech Automotive? How do you know? His investments are in a blind trust — even he does not know where they are invested.

  • Everyone is missing a big point

    outside investors – primarily from China – through a program called EB-5 that grants visas to foreign citizens in exchange for minimum $500,000 investments in U.S. companies.

    The US is for sale and China is buying us up..

  • None None

    Totally agree.

  • BB

    Hypocritical cronyism at its finest. Shockingly, the guy’s a progressive democrat! Oh yeah, he used to be head of the DNC. Corrupt criminals the lot of them.

  • tonytraveler

    The real question is: how many White Women, Blacks, and Hispanics will ever read this article, or even give a damn? This country is now all about J-Z and Kim Kardashian and MTV “Reality” TV shows.

  • They are never going to pay any taxes, because they are never going to show a profit. They are in the business of selling citizenship to Chinese investors who couldn’t care less about getting a return on the half million they pay to get in. Rodham is taking a cut to handle the paperwork to placate the Clinton wing of the democrat party.

    Tax Lawyer, can you really say that had this been the situation with Romney the democrats would have not demagogged the issue? What really stands out is that McCauliffe’s “investment” will suddenly be worth $25,000,000? Kind of like his investment in Global Crossing, the company he cashed out of just before it went bankrupt. He put $100,000 into GC, how much did he put into Green Tech. Every deal these democrats get into is wired to make them unrealistic profits, guaranteed, to buy their influence. influence that is gold when the democrats run the show.

  • Unless he used ca&h, he traded his connections for the 25%, which would meet the requirements for the “scumbag douche” accusation. As far as treason, selling out to a foreign government will exceed the provisions of a treasonous act once the subjugation of bed-wetting liberals and their enablers is complete and we have reestablished law and common sense to the republic.

  • I forgot to mention he took $18,000,000 out of Global Crossing before it went bankrupt. Great timing, wasn’t it?

  • Classic Democrat hypocrisy. These liars and thieves will do anything to advance their agendas and their pocketbooks. At least Mitt wasn’t trying to act like a domestic business.

  • Curly Bill

    Hypocrisy? From a dem? I am shocked and astounded!

  • jamesben

    For a hundred plus years Democrats and demagogues, well – same thing – have BASHED Republicans for starting businesses, creating capital, creating wealth and – sometimes – creating businesses which supply the Defense Dept., hence the old “Daddy Warbucks” caricature.

    Well, modern a**hole Democrats have “discovered” the ULTIMATE money spigot, call these various SHAM businesses “green,” get the Obama Regime, Dept. of Energy involved, then sit back and watch as the “FREE MONEY” FLOWS IN. It’s sickening.

  • Curly Bill

    Let me guess, tax lawyer; you are a registered democrat, right? And thanks for that mini law school class. We all really appreciate it. It was very important for you to display your legal education to we the unwashed masses, especially the way in which you detailed how one must prove all of the elements of the offense. We all stand in awe of your knowledge and wisdom, tax lawyer. You truly are a credit to the bar and to our country. Indeed, your post makes us wonder where the country would be without all of the registered democrat tax lawyers such as yourself. We really owe you an immeasurable debt of gratitude. Thank you, democrat tax lawyer, thank you.

  • Of course he didn’t. Drones have no mind of their own. Facts are irrelevent to them. And Hypocrisy is only for the Republicans unless they are RINO’s. After all, “Only Little People (and future generations) pay taxes.”

  • jamesben

    Yep, ignorant and “placated” morons – placated with other people’s money.

    “Low information voters” are destroying the country, and they don’t even know it – and if the did, they wouldn’t care – as long as “American Idol” is on and a bag of chips are in their lap.

  • jamesben

    A “U.S. corporation” in NAME ONLY. How can you read this piece and DEFEND a PIG like McAuliffe? Did you read the story?

    You don’t understand the concept of “influence peddling?”

  • mitch_Pawl

    This guy is a scumbag just like the current Oval Office occupier. They both should move to the BVI

  • Curly Bill

    What a truly awful thing to say about a sewer trout . . . or a maggot.

  • Curly Bill

    They get rich because they do all that “public service” stuff with YOUR money — suckers!

  • Tax Lawyer

    Do you see the word “Romney” in my comment?

    I notice that you didn’t answer my question. Let me repeat it. Huh? Please explain how McAuliffe is escaping from paying his fair share. He is an American, living in Virginia, and any income (dividends) that he receives from GreenTech Automotive is reported on his Form 1040 and taxed by the Feds, as well as the Commonwealth of Virginia. So I’d be interested to know how this constitutes “refusing” to pay taxes.

    timetogoO — what is YOUR response? How is McAuliffe not paying his “fair share” when the corporation in which he invested pays U.S. taxes on its earnings (at the corporate rate) and, if it pays a dividend to its shareholders, how the shareholders are not paying their “fair share” when the corporation reports those dividends on its annual return, Form 1120 and Forms 1009-DIV?

  • Curly Bill

    Thank you, thank you, thank you again for the education, democrat tax lawyer. Your guidance is immeasurably important to we who do not understand the delicate intricacies of the tax code in which you spend your glorious career. We who simply PAY taxes are in awe of you. Again I ask, where would the country be without so many wonderful democrat tax lawyers? Anyone?

  • Tax Lawyer

    “she”. And since you don’t know me, you are not qualified to speak for me.

    Conservatives can be tax attorneys — in fact, most tax attorneys are conservative. That does not mean, however, that we perpetuate myths like the one in this article.

    And, to answer your question, the purpose of an offshore bank account in a tax haven is to hide foreign income from U.S. taxation. So you tell me, why does Romney have offshore accounts? Republicans who are accountants, lawyers and who otherwise understand banking, tax and finance know the answer.

  • Curly Bill

    Ahh. Once again the democrat tax lawyer rushes to the defense. This land would be so much the poorer without democrat tax lawyers. Am I wrong?!

  • Curly Bill

    Careful, Stingray, Tax Lawyer is poised to pounce on you and defend any and all things that his beloved democrats do. He is skilled in the art of the tax code, and will twist you into knots with his tax code logic. May the State bless the democrat tax lawyer.

  • Oh I am shocked. A Fascist-0-CRAT did exactly what he criticized a real American for doing. They can’t ever have a scandal. To have a scandal, you have to have standards.

  • When Romney did it, it was taboo. Nobody said “illegal” except those on Obama’s side who continually insinuated it.

  • Curly Bill

    Ahh. A democrat tax lawyer. Always the voice of coolness and reason in any discussion. Now pipe down proles and pay your taxes. Tax Lawyer has more important things to do that continuing to educate you — like figuring out new ways to shift more of the tax burden to you and away from wealthy democrats.

  • Tax Lawyer

    Link, please, or it didn’t happen.

    The DNC claimed that ROMNEY has offshore bank accounts. This article does not claim that McAuliffe has offshore bank accounts. It claims that another shareholder of a U.S. corporation was incorporated in a tax haven. Since any dividends that are paid to a foreign individual or entity are reported to the IRS and withholding must done, then the B.V.I. shareholder is not escaping U.S. taxation.

    Any foreigner who has income sourced in the U.S. must pay U.S. taxes. If their home country also taxes the same income, it gets a foreign tax credit against its U.S. tax. In this case, the B.V.I. shareholder doesn’t pay B.V.I. tax, therefore the dividends are taxed 100% by the U.S.

    It’s all in the Internal Revenue Code, if you care to live up to your screen name and educate yourself.

  • This is so funny,sad thing is I have a better chance of winning the power ball lotto than seeing this story on the evening news with drunk sawyer

  • Curly Bill

    Amazing!! Not only is Tax Lawyer an expert in tax law, he is an expert in corporate law!! We stand in awe of you, Tax (and Corporate) Lawyer. It is YOU who makes our country great.

  • The Eagles have a song (Get over it) that says “Old Billy was right, lets kill all the lawyers, kill them tonight”. Just sayin.

  • Tax Lawyer

    Where is McAuliffe’s opponent, Republican Ken Cuccinelli, attacking this?

    He isn’t, because he’s an attorney and understands corporate and tax law.

  • We need to pressure our state governments to disallow campaign funding from other states.

  • Curly Bill

    Please thank your friend for allowing us to support her, her kids, her grandkids, her sister, and her sister’s family. It is truly an honor to do so.
    Hey! Tax Lawyer! Can we claim these people as dependents since we are feeding, sheltering and clothing them?

  • Curly Bill

    . . . you get obama as president.

  • Curly Bill

    By its own people.

  • Curly Bill

    I gues you haven’t read Tax Lawyer’s posts.

  • you need to read some other articles that refer to his offshore bank accounts. Practically all politicians have them but if it’s a democrat, it’s fine.

  • So does Obama. And Hillary and Bill. Care to share with us why Hillary was “FIRED” from her government job as an assistant attorney after The Watergate investigation? Stealing documents and replacing them with her own should of not only disbarred her, but had her thrown in jail.

  • Curly Bill

    I think that Logical is probaby intimidated by your wisdom and knowledge and cannot hope to debate you on the intricacies of the IRC. The nation owes a deep debt of gratitude to all of the democrat tax lawyers who have made the IRC (how many pages are we up to, TL?) the wonder of complexity that it is.

  • Tax Lawyer

    Ahh. You can’t attack the substantive message so you resort to personal attacks. So which one of these applies to you?

    (1) You, too, misread the article and now you’re embarassed to admit it.

    (2) You don’t understand taxation, so you cannot response in a substantive, constructive manner.

    (3) You missed those articles in the MSM, including the NYT.

    (4) All of the above.

  • Tax Lawyer

    Ding! Ding! Ding! Folks, we have our answer. Mr. Nagle READ the article and understood what the real issue is with GreenTech. It offers entre into the U.S. on visas (not citizenship, sorry).

    Mr. Nagel, you are correct that the company will likely never pay taxes — or dividends. The economies of scale have rarely been achieved by “green” companies, and therefore they generally are not profitable.

    Since the value of an intangible asset (like stock) is measured (1) by a multiple of EPS or (2) using a discounted income stream analysis, then I’m not sure how you think McAuliffe will recoup $25 billion from his investment in GreenTech. Perhaps you can explain that. I could use a return like that on my penny stocks.

    I have no idea whether the Democrats would have demagogued “the situation” (which situation?) had Romney been the shareholder. They certainly demagogued his foreign assets tucked away in Swiss accounts, and to some success, you have to admit.

    Since GreenTech is a private company, we don’t know how much he put into it. Perhaps the company will in the future do another pubic offering and the prospectus will disclose that.

    What are you intimating about his cash out of GC? That he has inside information and traded on it? If so, and you have evidence, I would strongly urge you to report it to the SEC.

    At least it is refreshing to have a dialogue with someone who “gets” it. Thank you for your civil (i.e., not ad hominem) approach.

  • Tax Lawyer

    Yes, it was. Are you suggesting insider trading? The SEC has a hotline to report that sort of thing, you know.

  • GAWD

    20 bucks wang is 6 inches

  • Tax Lawyer

    Do you have evidence that he didn’t pay cash? Perhaps he did a like-kind exchange. Not all investments are paid with cash. If you are suggesting that he did trade connections for stock, then you need to report that to the SEC, since that is illegal under the Foreign Corrupt Practices Act.

    It is not, however, a violation of 8 U.S.C. § 2381 (the statute for “treason”) and I am wondering how you come to that conclusion. You didn’t really address the question posed. As I posted, under criminal law, you have to have evidence (beyond a reasonable doubt) that Every. Single. Element. of the statute has been met. You still have not done that, nor has Mr. Sheeple.

    Perhaps you are just expressing your frustration with the current Administration by carelessly tossing out terms like “treason.” Did you mean it literally or figuratively?

  • Death_To_Traitors

    Hey Terry you crook…why don’t you STFU!

  • Meh. Everyone should have an offshore bank account. Some of us are at least honest about it, unlike the political class.

  • Tax Lawyer

    How is a corporation that it incorporated in Virginia and all of its operations in Mississippi a “U.S. corporation in name only”?

    Yes I read the story. I understood it, too. Perhaps you can point out where I “defended” McAuliffe. Where did I defend “influence peddling” because I’d sure like to know. You couldn’t be exaggerating, could you?

    My posts have corrected the misinterpretations of corporate and tax law — most people here seem to believe that GreenTech is the corporation in the tax haven. It isn’t, and the article makes no such claim. Why don’t you show me where I’ve been wrong about the law?

  • Darling, NOBODY would take my conjecture as “tax advice”! What a funny thing to say! The concept must have ruffled YOUR feathers though to elicit such a stern rebuke! Anyone who would not first research the archaic labyrinths of the U.S. tax code, before choosing a tax strategy, is insane! Allah forbid that you and yours shouldn’t get your percentage first! Imagine that!

  • scum of the earth – they all hang together! now let’s see if the scummy media reports this the way they screamed about romney! DOUBTFUL!!!!!

  • GarandFan

    Just more of that liberal hypocrisy.

  • Tax Lawyer

    Mighty thin skin you have there, Curly. That, or you are shouldering a substantial boulder. How does it feel to walk around with all that insecurity?

    Too bad you guessed wrong. Registered Independent.(Actually, in my state, it’s called “undeclared”.) You are most welcome for the free education in tax law. Ordinarily clients pay $400 per hour for it. I let you have it gratuitously, but you seem to resent that.

    Promulgating misinformation and myths is not the way to win the middle ground voters. If I were a Republican — I assume you are a Republican, yes? — I would still stand up and correct an article that is misleading. You seem okay with falsehoods, though, and that certainly is your prerogative.

    Anyway, though you are trying to be facetious, I’m not. You are most welcome to be educated by it, or not. Your choice. Others may feel differently.

  • Tax Lawyer

    A country without tax lawyers would be a country with taxpayers paying more taxes than they should. Or being forced to defend audits or go to Tax Court all by their lonesome.

    Anyway, you’re welcome. You needn’t be in awe of me, however. Save that for our soldiers and sailors.

  • Obama himself is only in it for the money. In 2007, before the election his net worth was reported at aprox $2 million. In 2011, before the election, his net worth was reported at over $11 million. How does a guy making $400k/yr, make $9 million in 4 years? And in a horrible economy!

  • Tax Lawyer

    Yes, you are. You failed to demonstrate that Obama holds options in GreenTech Automotive.

    Perhaps you should keep up with the conversation. Sarcasm does not befit you. It merely makes you look stupid because you have nothing substantive to offer to the dialogue.

  • thwapper

    hey moron the republicans are not screaming about the off shore accounts,the libs are,it’s called good buisness noob

  • WoodsyHowell

    Gosh, a bunch of leftists in bed with the Chinese communists … what a surprise.

  • JWales

    Simply put, the Dem Party is a criminal syndicate that skims billions of taxpayer dollars for themselves and their crony friends plus uses billions more to buy votes from low info, low intelligence voters…they are bleeding the country dry.

  • way2confused

    This behavior is perfectly fine if you are a Progressive. However, if you are a Conservative, it is unacceptable and you should immediately fall on your sword, and be vilified for eternity..

  • Joe_E_in_the_IE

    Well, at least all that Hollywood wealth won’t be lonely.

  • JBRoux

    Everyone knew that Mr. Romney was honest, was intelligent, didn’t really make offshore investments, didn’t leave a former employee’s wife to die, etc. They voted (as many times as they could) against him because he would have started tightening the belt, and cutting the fat.

  • BananaCharger

    Stinking lib hypocrite. That’s OK it doesn’t matter, because they care SOOOO much for the peons, unlike the evil Republicans. I wish the media would occasionally point out the double standard, but they have their noses so far up the dems…

  • The media in this country needs to be wiped out and reborn,liberals are destroying our once great country.
    There is a special place in hell reserved for Obama and his minions

  • happtakytrails

    America is the land of stupid corrupt liberals.

    America sucks anymore. I hate it and will never again support it.

    I will vote for Democrats, the liberal the better to help bring down this disgusting liberal country.

  • You might as well save your breath, talking to Teabaggers is like talking to a wall, reasoning is impossible, which is why we are in a stalemate in Washington..

  • I would be in favor of that, but have you checked with your Koch Bros to see if it’s ok with them?

  • You lie!!!

  • You mean like the only poor people on public aid and food stamps are black? Yeah, heard that from the right quite a bit.

  • Don’t insult their “intelligence” with the facts!

  • How’s those teabaggers working for you on winning elections?

  • Funny you talk of drones, yet all I read here are nothing but a bunch of right wing drones crying because life is so unfair, oh, and repeating the same talking points their overlords have preached to them. You want to talk about hypocrisy, why not look at yourselves? Tax Lawyer is trying to explain something to you, yet you don’t care about the facts, only the rant.

  • Hawkdriver1961

    No, if you look at raw numbers there are more whites on food stamps than blacks. But as far as percentages of each group that are on welfare, blacks are by and large have the largest percentage of their group on welfare….that is called fact…..that is never reported….

  • i can go one further Alex …i meant Mr. Keith: Terri is a lying snake in the grass …oh wait, goodness gracious he done crawled out from the bushes and is about to bake in the sun. 🙂

  • obtw, everybody here knows that his royal illustrious highness and terri’s bedroom buddy (if you are a little slow and don’t know who that is? look it up 🙂 ) is watching and recording and storing everything you say here.

    i’m just saying

  • Mark Talmont

    Ever watch any C-Span? There I saw Secretary of the Treasury Jack Lew acknowledge that he had an offshore account at the same address as Romney. “I don’t know much about it” said Lew. Yet: he was confirmed and there were no media jackals screeching about it. The point is, grotesque hypocrisy with respect to the Democrats and the pathetic excuses for humanity posing as “journalists” when anybody seeks out the unedited facts knows they are operatives for the DNC.

  • Mark Talmont

    Try talking to the Black Caucus, the Latino Caucus…even if you leave out the big words there is the uncomfortable matter of actual logic….these people have been in charge of all our big cities for decades, which is why they are pretty much open sewers; witness the latest goings-on in the District of Columbia itself, you know, where all the rich liberals are afraid to send their own kids to school despite the highest per pupil spending the nation? And the worst test scores BTW. And the problem is always not enough money!

  • Mark Talmont

    This story and some of the comments dismissing it reminded me of something. (I came across it while looking for this little tidbit about Google)

    It took a lot of web-searching (that in and of itself is significant) but here it is:

    Of course, Google has been accused of worse — and has paid the price. A
    January 25, 2012 front page story in the Wall Street Journal detailed
    how a Federal task force was actually preparing criminal charges against
    the company and its executives in mid-2009 for knowingly accepting ads
    from illegal pharmacies promoting not just fake drugs but real doses of
    human growth hormone, steroids, weight-loss pills, and controlled
    narcotics such as oxycodone. The story relates that the task force had
    served grand jury subpoenas and collected more than 4 million pages of
    evidence; one U.S. Attorney is quoted stating that now-CEO Larry Page
    “knew what was going on” and that “this was a corporate decision to
    engage in this conduct”. Google retained former Clinton Administration
    Deputy U.S. Attorney Jamie Gorelick, who subsequently engaged in two
    years of negotiations leading to a $500 million settlement — the amount
    equaling Google’s own profits from the ads plus what the Feds claimed
    were the revenues generated to the illegal pharmacies.

    for full story, which is well worth a look as it has insight into the horrific unequal treatment under the law with this admin–criminal liberalism’s favorite thing is selective enforcement. (come see how California tortures small businesses while rolling out the red carpet for illegals, no matter what their crimes).

    It is very difficult to find this story. The WSJ site won’t let you see it unless you are a subscriber. The only places I found out about it were from the radio shows by Leo “The Tech Guy” LaPorte and also John Batchelor.

    The “news” media are nothing of the sort. They are tools of the corpocracy, they make the stooges who used to work for Pravda look like paragons of integrity. They have got some nerve giving each other prizes.

    Ironically one of the only outlets that gets outside of these media blackouts is the Russia Today channel! Of course they have their own agenda.

    Hey tax lawyer–stick this in your briefcase. Maybe Jamie Gorelick will let you lick her stiletto heels (she’s on the Google board now don’t you know; this is after running interference for BP during the oil spill, after grabbing $20 mill for sitting on the FNMA board for a while before the bubble burst.)

  • RV Mike

    Funny you point out the “minorities” here, but white people draw most of the welfare paid out in the US, and the reasons many of the big cities are sewers are because the International Corporations have been allowed to move jobs out of this country. What are you supposed to do with your population if there are no jobs? Dealing drugs is illegal, but it is a job and it does provide income for many. No, I don’t condone it, nor do I condone the super rich to be allowed to rape the rest of the citizens of this country with the Teaparty’s help. Reaganomics has created this mess, time to fess up and let the liberals get America back on track like we did in the 30’s.

  • RV Mike

    They also have more people incarcerated by percentage than whites too, so would you say they as a race of people are just “no good”?

  • robocop33

    Just another Democrat crook.Most politicians are up to their ears in taking advantage of their positions to at least some degree. The Dems just take this to another level!