Kerry's 'Personal' Campaign Loan Under Scrutiny

talon news/gopusa ^ | March 31, 2004 | Jim Hauser

[prairiebreeze]

WASHINGTON (Talon News) -- Democratic presidential candidate John Kerry could face an investigation by the Federal Election Commission (FEC) regarding secured loans he obtained for his campaign by using property he and his wife own as collateral.

Judicial Watch, a public interest group that investigates and prosecutes government corruption, filed a complaint with the FEC against John Kerry for President, Inc. earlier this month, for failing to report a campaign contribution that appears to be in excess of legal limits.

Late last year, Kerry took out a thirty year mortgage of $6.4 million on a house on Boston's Beacon Hill that he co-owns with his wife. The Mellon Bank appraised the property at $12.8 million which is almost double the city's $6.95 million property-value assessment.

Under the Campaign Finance Reform Act of 2002 (CFR), a candidate is only permitted to use 50 percent of jointly held property to finance his or her campaign. An inflated appraisal of the property would allow a candidate to obtain more money for his or her campaign by skirting the intent of the CFR law.

"If there is a serious question about the value of the house for the purpose of the loan, then he should release the appraisal documents," Lawrence Noble, executive director and general counsel of the Center for Responsive Politics told the Washington Times. "What seems to be happening is that there is some concern that the house is not valued at $12.8 million."

"The only way to resolve that question and the issues of the loan is to look at the [bank's] appraisal" added Noble.

If the Kerry property is indeed worth only $6.4 million, then it would make his wife, Teresa Heinz Kerry a campaign contributor according to the CFR which states that a loan guarantor is considered a contributor, subject to campaign contribution limits, until the loan is repaid. This regulation applies to a spouse as well as any other related or unrelated individual.

"This evidence suggests [John Kerry for President, Inc.] failed to report a campaign contribution from Mr. Kerry's spouse, Mrs. Teresa Heinz Kerry, to the extent that her property rights in the Kerry family home or any other jointly held property are pledged as collateral for any or all of the secured loans received by [John Kerry for President, Inc]," says the Judicial Watch press release. "It also suggests that her contribution is in excess of the $2,000 maximum aggregate campaign allowed by law."

The Kerry campaign says it has complied with all election-law requirements in its reporting of the loan, but has not said how the senator, who earns $158,000 from his Senate salary, intends to pay the roughly $200,000 in annual interest payments.

"Quite simply, Senator Kerry's loan raises questions and the FEC needs to investigate," stated Judicial Watch President Tom Fitton.

[prairiebreeze]

I think we need to cut KetchupBrain some slack on this one. All that dirty money must be hard to keep track of. I mean, Kerry's money, Teraazza's money, it's just so confusing!

Prairie (do I need the sarcasm tag?)

[prairiebreeze]

ping

[harpu]

On 3. 1, 2, 3 - awwwwwwwwwwwwhhhhhhhhh!

[Ron in Acreage]

Doesn't everyones mortgage exceed their income? This loan is as crooked as it gets.

[TXBSAFH]

When I first heard of this loan I smelled a small fury animal with a liking for cheese as well.

[TomGuy]

Maybe this will also touch the roughly $7 million the Kerry campaign records show was paid to RiverFrontMedia, LLC, Chicago, IL, that RiverFrontMedia denies by saying they have never had any connection with the Kerry campaign:

The Strange Case of Riverfront Media and John Kerry: Media Company Threatens Lawsuit Against Kerry

http://www.freerepublic.com/focus/f-news/1106264/posts

[BluH2o]

Judicial Watch, a public interest group that investigates and prosecutes government corruption, filed a complaint with the FEC against John Kerry for President, Inc. earlier this month, for failing to report a campaign contribution that appears to be in excess of legal limits.

Judicial Watch files complaints, initiates law suits, etc., and nothing seems to happen. Contributed to JW several years ago (during the Clinton years) realized the futility of it, and still get solicitations from them ... although I haven't sent JW a dime in 5 years.

[ClearCase_guy]

"It also suggests that her contribution is in excess of the $2,000 maximum aggregate campaign allowed by law."

Now, what are the odds of that $2000 limit being violated??

[rwfromkansas]

Hmmm.

I don't understand much of this financial stuff, but from what I do understandhe tried to get some quick cash for some reason, and the city appraised his house at a heck of a lot less than the bank.....perhaps the bank inflated their figures to get more money from a rich client.

This could be a small scandal here.

[eureka!]

Re#7 Likewise. Saw that a small percentage supported the litigation and said no more.Most of the $$ seems to be going to solicitations for more....

[prairiebreeze]

Oh yes! I remember reading about that Riverfront issue and thinking that John Kerry had been busy doing some laundry....

Prairie

[prairiebreeze]

That's not great news. I'm sorry to hear this from two posters.

Prairie

[eureka!]

Unfortunately for JW, we're not alone. While JW picked some good fights, it also picked many for presstime, IMHO. My $$ that used to go there goes to other, more important causes--like W's re-election campaign. On that, I have given almost more than I can afford. I'm saving more to give more too...

[BlessedByLiberty]

Usually there are mixed results with Judicial Watch. However, in this case the complaint is filed with the FEC. Now the FEC has this complaint and the two RNC complaints about soft money and the Kerry campaign and Moron.

The question is who did the appraisal for the bank and are the officers of this bank Kerry contributors?

FEC reportedly stopped Sharpie Sharpton's funds, so there may actually be action going on here and not after the election.

[crushkerry]

Here is an open letter sent to Kerry on this matter that was picked up by the Washington Times. Good to see someone else is finally looking into this.

[prairiebreeze]

Interesting site. I like the "Any" video especially.


Prairie

[Rudder]

The bank that provided the loan, Mellon Bank, is based in Pittsburgh as is the Heinze Co.

The plot thickens...

[Mo1]

.