Posted on 11/03/2022 6:19:29 AM PDT by Red Badger
The Center for Accountability and Government Ethics (CAGE) filed a complaint on Oct. 24 alleging that Democratic Senate candidate John Fetterman violated Pennsylvania non-profit law through his purchase of several properties in Braddock, Pennsylvania.
Fetterman, who served as mayor of Braddock from 2006-2019, owns eight properties in the area. They include several vacant lots, and are the subject of a watchdog complaint filed by the Foundation for Accountability and Civic Trust (FACT). CAGE alleges in its complaint, obtained exclusively by the Daily Caller, that Fetterman bought and sold one of the properties in a way that violated Pennsylvania non-profit law and his organization’s charter.
CAGE, a new venture of the CPAC Foundation, will serve as a right-leaning ethics watchdog.
Braddock Redux served as a conduit for a real estate deal conducted by Fetterman and Braddock deputy mayor Jebediah Feldman, the non-profit’s vice president, the complaint, filed with the Pennsylvania Secretary of the Commonwealth and the state Ethics Commission, alleges. Feldman initially purchased a vacant commercial lot in 2007 for $75,000, according to the Allegheny County Real Estate Portal. Feldman sold the lot to Braddock Redux in 2011 for $1, and Fetterman purchased it from the non-profit in 2014 for $1,100.
Feldman appears to have taken a $74,999 loss on the property. The lot is part of a block that houses three artistic projects, The Braddock Community Oven, UnSmoke Systems Art Space, and barebones productions. A Washington Post report describes Braddock Redux as a way for Fetterman “to implement his vision of a revitalized Rust Belt community of artists and other urban homesteaders.”
Feldman did not respond to questions from the Daily Caller on why he was willing to take such a massive loss on the land deal.
In its 2011 and 2014 tax filings, Braddock Redux claimed that its real estate deals did not involve “a current or former officer, director, trustee, or key employee.”
“They might just have missed this. It happens to everybody. But the fact remains when you sign a tax form as head of an organization, you’re signing it with the force of law. Usually the IRS allows you to amend, but the question remains, ‘why didn’t they disclose a relation in the 990?’ The silence is deafening,” CPAC Foundation Senior Vice President and General Counsel David Safavian told the Daily Caller.
The purchase appears to violate Braddock Redux’s articles of incorporation. They prohibit any of the organization’s “net earnings” from “inur[ing] to the benefit of or be[ing] distributable to any contributor, director, [or] officer,” unless they are part of a “reasonable compensation for services rendered,” according to documents included in the complaint. The sales violate this provision because the property was sold to Fetterman below market value, Safavian added.
Read the complaint here:
Fetterman Complaint as Filed 10252022 by Michael Ginsberg on Scribd
DOCUMENT AT LINK..................
“Fetterman got this property for 16 cents a foot, while the comps in the area went for two dollars per square foot. That would seem to be a clear indicator he generated value to himself by engaging in this transaction,” he explained.
The complaint also alleges that Braddock Redux’s board violated Pennsylvania non-profit law by not having disinterested board members approve the real estate deal. Any such deal must be “fair” to the non-profit, and neither requirement appears to have been met. Pennsylvania allows for the revocation of a non-profit’s charter if the organization engages in activities that violate state law.
“Nowhere in the record … does it appear that Braddock Redux or Mr. Fetterman complied with these requirements,” the complaint says.
Braddock Redux did not respond to the Daily Caller’s request for comment on the complaint.
Fetterman and his communications team have repeatedly highlighted Republican opponent Mehmet Oz’s extensive property holdings on social media and during their one debate. Oz owns at least 12 residential properties, Business Insider reported in September, although ethics complaints against his property holdings have not been reported.
The Fetterman campaign denied any wrongdoing in a statement to the Daily Caller. “This is a frivolous and ridiculous complaint filed by a radical, far-right dark money group supporting Dr. Oz. John started Braddock Redux nearly two decades ago to help disadvantaged young people in Braddock and the surrounding area, and to create a community center for them. He is tremendously proud of what they accomplished while he was involved in terms of creating opportunities for Braddock youth, combating economic insecurity, helping reduce crime and gun violence, fostering a local arts resurgence, saving and restoring historical properties, and creating the Nyia Page Community Center to serve as a gathering and activity space for Braddock,” campaign spokesman Joe Calvello said.
Safavian argues that the entirety of Fetterman’s real estate portfolio is worthy of suspicion. The candidate did not note several parcels of land in a financial disclosure submitted to the U.S. Senate, according to the FACT complaint.
“Fetterman has bought up all the property on this one block,” he said. These purchases “raise two different questions. Either Braddock Redux is giving a significant benefit to Fetterman by selling him a parcel below market value, or this may be a case of the cover-up being more significant than the underlying activity,” he explained.
“Fetterman is either a sloppy manager, or he’s hiding something,” he added.
“Feldman initially purchased a vacant commercial lot in 2007 for $75,000, according to the Allegheny County Real Estate Portal.
“Feldman sold the lot to Braddock Redux in 2011 for $1,
“and Fetterman purchased it from the non-profit in 2014 for $1,100.”
“In its 2011 and 2014 tax filings, Braddock Redux claimed that its real estate deals did not involve ‘a current or former officer, director, trustee, or key employee.’”
The statements made in the years 2011 and 2014 apply to those years in and of themselves.
Joe Walsh!.....................
Nothing to see here people! It’s just a normal Democratic transaction to better the community...... Move along..... OH, OH LOOK, Paul Pelosi just got attacked by a MEGA right winger in his underwear........ This is just typical of MEGA, attacking the spouse of a successful Democratic politician who is working hard to make the country better and overturn those EVIL Orange man actions.........VIDEO? Of course not! Who would think to shoot a TicToc video at 2:30 in the morning when they are being attacked by MEGA! ...... Now let’s talk about the new homeless park in a San Francisco opening tomorrow.....
“Feldman initially purchased a vacant commercial lot in 2007 for $75,000, according to the Allegheny County Real Estate Portal.
“Feldman sold the lot to Braddock Redux in 2011 for $1.”
Perhaps it was easy to get financing in 2007 during a real estate boom, but much harder in 2011 during the bust.
Perhaps a donation tax deduction was more worthwhile than a capital gains loss deduction.
“Paul Pelosi just got attacked by a MEGA right winger in his underwear”
Have the Democrats even tried to explain the “in the underwear” bit?
The left always accuses others of what they are guilty of.
It’s San Francisco, no one has to explain walking around in their underwear
These NON PROFIT rules are VERY CLEAR & NOT COMPLICAtED.
The rules seem to be rocket science for BLM. First thing any reasonable business or not-for-profit does is hire a CPA. Forms and quarterly filings must be done on time. Failure to do so will bring the IRS down on you like a ton of bricks.
Money laundering just like obama did with a home in Chicago.
These purchases “raise two different questions. Either Braddock Redux is giving a significant benefit to Fetterman by selling him a parcel below market value, or this may be a case of the cover-up being more significant than the underlying activity,”
Could get interesting...
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