Reid's Land Deal (Philly Inquirer calls for Harry Reid to be replaced as Dem leader!)

The Philadelphia Inquirer ^ | October 13, 2006 | Editors

[Dems_R_Losers]

A lucrative land deal benefiting U.S. Senate minority leader Harry Reid (D., Nev.) deserves full scrutiny by the Senate ethics committee.

In 1998, Reid purchased undeveloped residential property on the outskirts of Las Vegas for $400,000. He bought one lot outright, and a second lot with a partner, Jay Brown. In 2001, Reid sold the land for the same price to a corporation created by Brown. Reid retained an ownership stake in the corporation and continued to pay taxes on the property. There was no written agreement; Brown told the Associated Press that the two had been friends for 35 years and didn't need one.

So the Senate Democratic leader engaged in a seven-figure handshake and didn't feel the need to disclose all the details. Experts on Senate ethics rules say Reid should have disclosed the sale in 2001 on his annual ethics report, and informed Congress of his part-ownership in Brown's corporation. Reid didn't.

After the land was rezoned for a shopping center, the corporation sold it in 2004. Reid received $1.1 million in the sale, turning a neat profit of nearly $700,000 in six years.

While now insisting he did nothing wrong, Reid is also offering to make a "technical change" to his earlier ethics reports if the ethics committee so desires. Simply giving the Democratic leader a mulligan is hardly the way to handle this case. When the Senate debated ethics reforms earlier this year, Reid was out in front to demand the toughest of standards from lawmakers.

"Americans have been shocked and even disgusted by revelations of corruption in our current system by Republican lobbyists, senior Bush Administration officials, members of Congress, and former congressional staff," Reid said in March. "The scandals have shown that some outsiders and insiders believed they could act with impunity."

That's how this case looks, too. Unless Reid comes up with a better explanation for this lack of disclosure, Democrats should not keep him as their leader in the new Congress in 2007.

[grandpa jones]

bttt

Reid Should Go (now)

[Lurking in Kansas]

This is a VERY complicated land deal...

Actually no. It's a not complicated at all. It was/is made to look complicated to hide the situation. This was a sweetheart deal, specifically done to benefit Reed. An ‘investment’ without having to ‘invest’. (Does PIAPS dealings in Arkansas 25 years ago ring a bell??). Same thing. They have to use smoke & mirrors to make it seem complicated to hide the truth of the deal.

[Cowboy Bob]

In 1998, Reid purchased undeveloped residential property on the outskirts of Las Vegas for $400,000...In 2001, Reid sold the land for the same price to a corporation...

Reid really is a putz to think he could get away with this deal.

[DCPatriot]

To keep his name out of the deal comes to mind.

Of course...I was being sarcastic.

He couldn't lobby for land-use classification change while owning anything outright.

The question here is who else and/or what else is held in silent interest?

[Labyrinthos]

Thanks for the clarification.

[Dems_R_Losers]

I think the Inquirer's editors are kind of good-government freaks, even more than they are liberals. They have done a pretty good job in the two years I have lived in PA of fairly pointing out the slobs and cretins in both parties. Remember, the Inquirer broke the latest story on Bob Menendez that forced him to disassociate himself from his closest political bagman. I expect the paper will endorse Tom Kean, Jr. in that race. They really hammered Jim McGreevey as well. It's kinda nice to see.

[TNCMAXQ]

How wild would it be if the Senate ends up at 50-50 after the election and Reid is forced to resign?! Let's hope Rep Jim Gibbons gets elected as NV governor so he could appoint a GOP successor. Oh how the left would howl.

[Bogeygolfer]

Someone needs to explain to me what the fuss is all about. As far as I can read this is a technical glitch in that he didn't report the sale/transfer in 2001. Everything else is fairly standard from where I sit. He bought the land for 400K with his own money. He sold the land to a corporation that was created for the purpose of holding the land and of which he owned a stake. That's basic stuff so far. Then the corporation sold the land for a nice profit and the owners received their share of the income. He paid the taxes throughout and now he will pay taxes on the gain. The hand shake deal is relative and involves his friends stake. The one who appears to have gotten the sweetheart deal is his buddy, not Reid. As far as I can see this is basic business 101. In no way is their tax fraud at this point or inappropriate business dealings. Unless something decidedly different from what I've heard so far this is overblown. I'm so tired of the MSM rail roading our guys for overblown charges and this is certainly a pleasant surprise to see it go the other way but don't get your hopes up. This is an ethics problem to be sure but I don't think it's a legal or a tax problem.

[Grampa Dave]

When did Pelosi know that Reid lied. Off with Pelosi's Botoxed head. Treat her the way the rats wanted Denny treated.

[LikeLight]

Reid's land WAS deeded over to the LLC. And apparently checks exist to show Reid thereafter did pay property tax at seom point on that property.

And there's the unreported gifting! If Reid paid tax bills on property in which he had no legal interest, he was GIFTING the money to the true owner (the LLC?)! And he would have been required to file Federal Gift Tax Returns for each such gift. Which I presume he did not?

[concerned about politics]

To keep his name out of the deal comes to mind.

So he could use his political power "under cover" to get zoning and environmental laws changed to sell the land for profit. Once he got laws changed because of "who he is", then he got the land back in his name and sold it.

This way, there's no "conflict of interest" when getting laws changed (the protected tortoise living on that land made it an unusable environmental area). He's as white as snow in the deal - on paper - according to his bogus Senate report, anyway.

[GoBucks2002]

Simply giving the Democratic leader a mulligan is hardly the way to handle this case.

Bill Frist and Ken Mehlman, call your office!

[mewzilla]

Pretty amazing editorial in one of the nation's most liberal papers.

It must be really, really, really bad....

[brothers4thID]

The story may have legs, but I doubt it influences the elections much at all. Congressional election cycles are all about "politics is local" and "what have you done for me lately". Reid isn't up for re-election and can't even taint the Senator who IS up for re-election in Nevada, since they are from opposite parties. People in Minnesota or Maryland aren't going to give a rat's petard if Reid was engaged in a shady land deal when it comes down to which candidate they vote for.

As with the Foley thing, the only people up in arms- and willing to exert the energy to get that way- are the people who are already rabid political types. The votes of such people aren't going to change radically anyway. No pro-abortion, anti-war, screaming lesbian is going to change her vote to Republican because Harry Reid made 1.1 million on some land in Nevada.

The only time this will matter is after the elections when the party sits down to decide who should be in the leadership. If the story is still a big deal then it might affect Reid's chances at retaining his leadership.

[Be Free]

With multiple liberal rag-sheets now calling for Reid's head, one has to wonder who is next in line? Is this less about booting Harry, and more about promoting #2?

[savedbygrace]

He didn't sell it, he transfered it to an LLC in which he claims he was a partner. Even though there was no paper trail of his partnership in the LLC. If you or I tried that, the IRS would nail us bigtime.

IMO, the tax payments made by the mob lawyer are the real problem for Reid. Bacause there was no paper trail proving that Reid was a partner, they look like a gift, pronounced bribe.

[Carry_Okie]

This background story details more of Reid's land machinations.

[Suzy Quzy]

What's PIAPS?

[Dems_R_Losers]

I personally think this is much, much worse than it looks and we have only seen the tip of the iceberg. He is up to his keister with some of the worst land swindlers and organized crime figures in Nevada, and so are his sons. There is a blog story today that suggests that his son, who is a member of the Clark County Commission, may have engineered the rezoning of this piece of property while knowing his dad was part-owner of it. The son may be even more corrput than the father. Harry Reid took more money from Jack Abramoff than Tom DeLay did and has still not answered for it. Even his protectors in the local media there cannot fend off the national media hounds anymore.

I believe Harry Reid will end up not only stepping down as senate Democratic leader, but resigning his Senate seat. You heard it here first.

[Tulsa Ramjet]

"Oh c'mon. That's like Clinton rewriting his "Plan for Terror" (after Burglar stole it out of the national archives) and making it read like he actually "Tried , really tried to get Bin Laden"."

Does anyone know exactly what Berger stole? Has that ever been revealed?