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Thursday, March 29, 2012

Report: DOJ to Indict SC Gov. Nikki Haley on Tax Fraud Charges

Nikki_HaleyPalmetto Public Record:

Two well-placed legal experts have independently told Palmetto Public Record they expect the U.S. Department of Justice to issue an indictment against South Carolina Gov. Nikki Haley on charges of tax fraud as early as this week.

A highly ranked federal official has also privately confirmed rumblings of an investigation and possible indictment of the governor, though the official was not aware of the specific timeframe.

Yesterday, Palmetto Public Record exclusively reported that the Internal Revenue Service has been investigating since March of 2011 the Sikh worship center run by Gov. Haley’s father. At least five lawsuits have been filed against the Sikh Society of South Carolina since 2010, alleging that the group bilked contractors out of nearly $130,000 for the construction of a new temple.

Gov. Haley is reported to have managed the temple’s finances as late as 2003, and our sources believe any indictment would center on what happened to the missing money.

Update:

http://taxprof.typepad.com/taxprof_blog/2012/03/report-.html

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Comments

Blame it on turbo tax. There is a precedence.

Posted by: traye | Mar 30, 2012 5:00:01 AM

Sounds like an anti-Sikh, anti-Conservative, anti-White indictment to me. After all, the Justice Department has turned into a Black Racist Criminal Conspiracy since Obama and Holder have been running it.

Posted by: crypticguise | Mar 30, 2012 5:39:13 AM

Really???

2003????

Well, this is one way to bump her off the VP consideration list. Sounds like BS to me.

Posted by: patch | Mar 30, 2012 7:24:56 AM

1. According to reports linked here, Haley is denying the rumors.

2. Over the years, including during Haley's run for governor, I've seen news that puts SC politics in an...unflattering...light.

3. The Obama administration strikes me as the sleaziest since Nixon's.

4. Nothing above exonerates Haley, but it makes me hesitant to draw conclusions.

Posted by: gs | Mar 30, 2012 7:30:39 AM

Wouldn't an indictment normally come from the IRS?
If the DOJ is issuing it, does this imply that it is a politicized issue rather than an actual, you know, tax violation?

Posted by: Jim,MtnViewCA,USA | Mar 30, 2012 8:06:58 AM

Well gs, as those with memories extending beyond last week may recall, Strom Thurmond denied the existence of his partly African-American daughter for many years. At any rate, that's one Romney endorsement down the drain.

Posted by: Publius Novus | Mar 30, 2012 8:21:31 AM

Dear DOJ:

Consider the karma.

Posted by: Kevin M | Mar 30, 2012 8:21:58 AM

criptiguise:

I am confused as to whether you are arguing that she is being indicted because she is Sikh or because she is white?

Or perhaps you could wait for the indictment and see if it has merit, rather than assuming that Obama's and Holder's race had something to do with it.

Posted by: Junior | Mar 30, 2012 9:04:10 AM

The letter that Palmetto Public Radio "exclusively" reported on is a standard non-profit audit letter. The vast majority...say 99.9% do not result in a referral to C.I.D. The fact an organization is under audit gives us no insight as to whether criminal actions took place.

Second, what an odd juxtaposition. First Palmetto Public Radio sensationalizes the standard letter which has to do with a tax audit. With the fact that there were disputes over a construction contract? Why the use of the word "bilk?" That makes them sound kind of shady, doesn't it? What does one have to do with the other?

Third, what are their sources? A intern? Media Matters? How about giving us a clue?

Fourth, how did we jump from purported tax evasion to an indictment for embezzlement? A mere year after the audit commenced? Sorry, that's too hard to swallow. Process works a little bit more deliberately.

This looks to be a professional hit job....there is that "Public Radio" after "Palmetto," so maybe that has something to do with it.

--- AEP

Posted by: Tax Lawyer | Mar 30, 2012 10:01:40 AM

We must clear the way for Hillary, can't allow any competitors to get close otherwise we will lose our corner on minority representation. We did away with Sarah for the very same reason. Republican women beware, don't even think about it.

Posted by: Nan231 | Mar 30, 2012 10:01:40 AM

'Wouldn't an indictment normally come from the IRS?'

Absolutely, not. The IRS does investigations, the DoJ does indictments.

'This looks to be a professional hit job....there is that "Public Radio" after "Palmetto," so maybe that has something to do with it.'

I find it hard to conceive that a tax lawyer can apparently misread radio for record.

But I agree this is a little odd. It may be that the indictment (if one exists) is for

Posted by: erg | Mar 30, 2012 10:58:09 AM

Tax Lawyer--relax and re-read the piece. It's Palmetto Public Record, not Pametto Public Radio. You listen to the latter and read the former.

Jim,MtnViewCA, USA--civics lesson. Federal indictments, ALL federal idictments, are returned by federal grand juries after presentation by the Department of Justice. The IRS investigates, the DOJ prosecutes.

Posted by: Publius Novus | Mar 30, 2012 11:46:53 AM

So for the DOJ NBPP good, Sikh bad. Helps to know the rules.

Posted by: Bill M | Mar 30, 2012 12:07:27 PM

isn't there a seven year statute of limitations on tax matters ...

Posted by: B | Mar 30, 2012 12:43:28 PM

If she was involved in 2003, I would think the statute of limitations might have run out. I don't know tax law, but at the same time the IRS escalation procedure is well known.

For her to have been involved would put her career and reputation on the line as well as her liberty. Is this a Herman Cain moment or is it political?

Posted by: matt | Mar 30, 2012 1:46:52 PM

Well gs, as those with memories extending beyond last week may recall, Strom Thurmond denied the existence of his partly African-American daughter for many years. At any rate, that's one Romney endorsement down the drain.

Posted by: Publius Novus | Mar 30, 2012 11:21:31 AM

Huh?

Soooo...Nikki Haley is Strom Thurmond's love child? /

Posted by: gs | Mar 30, 2012 8:15:34 PM