A man who worked at Preventive Health Strategies says Annette Bosworth used the non-profit's resources to promote her campaign for U.S. Senate.
Dave Baumeister, who handled communications for PHS from September 2012 to July 2013, writes the following letter to the public, which drops these heavy shoes:
- Annette Bosworth and her husband Chad Haber have planned her entry into politics for years.
- Bosworth and Haber lied in advertising their second raffle as a benefit for military personnel and their families.
- Bosworth and Haber are using their non-profit resources for political purposes.
Here's Baumeister's statement, for the record:
I have tried to stay away from these people and their woes, but it seems “just when I thought I was out, I keep getting sucked back in…”
Of course I refer to the Bosworth-Haber team. I worked for them at Preventive Health Strategies from September 2012 to July 2013. I left shortly before she announced her candidacy, even though her intentions were clear two months prior.
Although I said I started in September, I didn’t receive the first checks I could cash until November 29, 2012. Chad Haber was a student and debater of mine, I knew his family, and when I moved back to Sioux Falls from Yankton that August, he wanted me to help him out at PHS. I believed Chad and I believed in the mission of PHS. Later, I learned that PHS was very poorly run, and I came to believe it’s altruistic nature was most likely a sham to set up a U.S. Senate run that was in the planning stages even before there was a PHS.
Of course, I did not know this at the time. Silly me, I thought we were trying to help people, and I proceeded in my work with that goal.
One of the first things I was tasked with was promoting a land raffle that had going on. I knew of their first raffle, and thought of that as a success, making sense why they would want to follow it up with another.
I am sick to my stomach when I think that I used my connections in the South Dakota Newspaper Association to help spread the word about the raffle that we all believed to be for returning soldiers. Last November, I learned that this was not possible under military regulations. And I told Chad to talk to the Air Guard JAG officer I had been in contact with. (I still think something could have been done through their family support group).
I do not believe he ever did this. Two months later when I asked, “whatever happened with the raffle,” he told me he received a cease and desist order from the military. I never saw the document, but I believed him, and insisted we contact all of the individuals who had purchased land raffle tickets letting them know the change in the raffle’s purpose.
Former PHS director Mathia Rall told me this month she had discussed the problem of the military angle with Chad and Annette in the summer of 2012. I am sure what she said is true, as she described going through the same steps that I later did. And if that was true, which I believe, then when Chad Haber approved the story on the raffle that I sent out to every newspaper in the state, he knew it contained false information (a.k.a. lies) about the purpose of the raffle.
When Annette Bosworth spoke on camera to KDLT about the raffle and its purpose to help “our heroes,” she was saying things she knew to be untrue, also.
For my own part, I believed my employers had done their due diligence when I came onboard. For that, and for any part I might have played in separating people form their money, I am sorry. I did things based on what I was told, and everything I did was approved by Bosworth and Haber.
In April of this year, Chad and Annette started to make public her run for U.S. Senate. Employees paid by their non-profit Preventive Health Strategies were being given tasks to do on the political campaign as part of their regular work during regular working hours.
I don’t believe the money for the raffle was ever held in escrow, as it is supposed to be, by law. It was going right into PHS operating expenses. So, essentially, Nathan Fluit’s money was being used on a political campaign.
Although “Mr. Bosworth” will, no doubt, say all of this is coming from a disgruntled employee who was fired, I resigned on July 9, and I have many witnesses who can testify I was going to do this on Friday, July 5, but the dynamic duo was out campaigning in the Black Hills, and none of the employees were paid.
I thought I would be paid on Monday, July 8, but Chad gave us excuses for not being paid. On Tuesday, July 9, I ended up snatching the check out of his hand, threw him my keys and left.
—Dave Baumeister, open letter, 2013.11.26
I welcome your thoughts, dear readers, on which parts of Baumeister's statement you find most significant.
Among my top takeaways: I raised concerns in June about the apparent illegal mingling of non-profit, 501(c)3 tax-exempt resources and political activities in Annette Bosworth's office. We now have on the record a man who worked in that office during the beginning of her public political activites who says he observed exactly such illegal activity.
Internal Revenue Service, Attorney General, isn't it time for you guys to step in and do some work for us bloggers?
Well done. Thank you CAH and Dave. This is getting beyond ridiculous. How many people is she going to be allowed to "recycle" through before they are stopped. It seems to me the only ones protecting South Dakotan's can be found on this blog.
I respected you as a colleague Dave, and I do even more so now.
Congratulations, Cory, for producing yet another news story which clearly fulltime news reporters are too "busy" to do. I just resubscribed to the newspaper after a six-month protest of its vacuous content and now realize I could have waited longer. Like maybe until after the 2014 general election.
Jackley is too busy doing everything possible to NOT investigate Mike Rounds for stolen SD tax dollars in the failed NBP; doing everything possible NOT to find evidence of Pat Powers running a campaign business out of the Second of State office, and too busy going after Gov Daugaard and GOP leadership's political opponent Dan Willard to investigate Bosworth's numerous felonious frauds.
Would not the use of non-profit funds toward a federal political campaign fall under the purview of federal law enforcement officials? I don't know, just asking. And if so, might Mr. Johnson be already involved?
I believe it is a violation that would be flagged by the IRS.
I believe every word Dave shared in his letter to be true. I was privy to Dr. Bosworth's interest in running for senate long before her announcement because another of her employees, who was present at the clinic staff meetings where it was discussed on more than one occasion, filled me in at a lunch date one day. Do you suppose they were holding paychecks in order to build a defense that 'if they're not getting paychecks, they're not really being paid to discuss senate issues'?
I can also tell you that Dave was not the only employee who threw his keys at Mr. (and I use that title with little respect) Haber almost immediately after receiving a final paycheck.
It could be flagged by the IRS, but it is most likely a federal issue (Brendan Johnson's office). Its probably a state issue as well but I doubt Jackley would touch it.
I might forward this letter to the U.S. State's attorney's office
Thank you to Dave Baumeister for writing this letter. I hope it encourages others to come forward.
It takes courage to tell the truth. Thank you for being brave today!
These two are delusional and I bet they sing the loudest at church. I just wonder if stace can pick up her 12% of the vote and tighten things with cardboard mike.
Ha Ha - 12% of the vote. Very funny Jim.
...I love it how intrepid blogger/journalist, campaign expert PP has to just whistle by the graveyard on this and eb-5. It's got to be driving him nuts, to think how he could blog on this if only Annette and eb-5 were dem problems.
Info for inquiring minds:
Marty J. Jackley, South Dakota Attorney General
Brendan V. Johnson, United States Attorney
http://www.irs.gov/Individuals/How-Do-You-Report-Suspected-Tax-Fraud-Activity%3F
…suspect misconduct or wrongdoing by an exempt organization or employee plan
Use IRS Form 13909
http://www.irs.gov/pub/irs-pdf/f13909.pdf
Form 13909 Department of the Treasury — Internal Revenue Service
Tax-Exempt Organization Complaint (Referral) Form
…
3. NATURE OF VIOLATION:
• Directors/officers/persons are using income/assets for personal gain
• Organization is engaged in commercial, for-profit business activities
• Income/assets are being used to support illegal or terrorist activities
• Organization is involved in a political campaign
• Organization is engaged in excessive lobbying activities
• Organization refused to disclose or provide a copy of Form 990
• Organization failed to report employment, income, or excise tax liability properly
• Organization failed to file required federal tax returns and forms
• Organization engaged in deceptive or improper fundraising practices
• Other (describe):
South Dakota Codified Laws
§22-25-25. Bingo and lotteries permitted for restricted purposes--Conditions.
The game, bingo, as defined in § 22-25-23, or lottery, as defined in § 22-25-24, may not be construed as gambling or as a lottery within the meaning of § 22-25-1, if:
(1) The bingo game or lottery is conducted by a bona fide congressionally chartered veterans' organization; a religious, charitable, educational, or fraternal organization; a local civic or service club; a political party; a volunteer fire department; a local industrial development corporation as defined in § 5-14-23; or a political action committee or political committee on behalf of any candidate for a political office which exists under the laws of the State of South Dakota;
(2) The proceeds therefrom do not inure to the benefit of any individual;
(3) No separate organization or professional person is employed to conduct the bingo game or lottery or assist therein;
(4) No compensation of any kind in excess of the state minimum wage per hour or sixty dollars, whichever is greater, in value is paid to any person for services rendered during any bingo session in connection with the conduct of the bingo game or in consideration of any lottery. …;
…
(5A) The actual value of any lottery prize is stated before any chances for the lottery are sold. …;
(6) The organizations authorized under subdivision (1) of this section, before conducting a bingo game or before selling any chances for a lottery give thirty days' written notice of the time and place thereof to the governing body or designated administrative official of the county or municipality in which it intends to conduct the bingo game or lottery, and the governing body does not pass a resolution objecting thereto. However, any organization that conducts a lottery and tickets or shares for such lottery are sold state-wide shall provide written notice of such lottery pursuant to this subdivision only to the secretary of state and to the governing body where the drawing for such lottery is held. …; and
(7) No organization authorized to conduct a bingo game or lottery under subdivision (1) of this section may enter into any lease or agreement with any other person or organization to provide equipment or services associated with the conduct of a bingo game or lottery. However, this subdivision does not apply to any lease or agreement with a distributor licensed pursuant to §§ 22-25-28 to 22-25-51, inclusive, to provide bingo or lottery equipment and supplies.
Concerned, good work and very thorough, but you may give them more idea. I can hear the wheels grinding in certain hairless brains now, "Hey, that's it! We could get a big tin building, set up tables and chairs, and for $1,000 a card, people can play 'BOZZO' [Pronounced Boz-Oh, although another pronunciation may well apply]. And we'll make our sons run around to tables selling more cards and emptying old ladies' ash trays…"
Once again Cory has gone over the top with Dave's help.
The two things I came away with from this account is that an escrow account for the raffle funds was not established and that if any of those funds were used for the Bosworth campaign there would almost certainly be a violation of federal campaign and finance laws.
I would really like to see exactly what she has reported to the feds on her campaign finances. Who has written her checks for the campaign?
When is the first campaign finance report due? Probably not soon enough.
Oh, Deb, we have that report. Bosworth's Q3 report showed that...
(1) her campaign consultant Patrick Davis was lying when he said her campaign war chest included none of her own money;
(2) Bosworth was already $37K in debt, including $20K to SSC of Florida, which filmed and posted her first campaign ad in September, then yanked it from online circulation this month;
(3) her landlord Rod Fitts contributed $2500.
Thanks Cory. Good grief. Bosworth and Haber are so messed up!