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SDGOP Renews Threat to Sue TV Stations for Broadcasting Ugly Truths About Mike Rounds

South Dakota Republicans continue to respond to charges of crony capitalism in Mike Rounds's EB-5 program by attacking the press with cries of Defamation!

The Democratic Senatorial Campaign Committee this week pointed out that as governor, Mike Rounds "gave special tax breaks to a shady, offshore corporation" to keep his failing Northern Beef Packers project afloat. The DSCC made that statement in this broadcast ad:

The SDGOP sics Woods Fuller Shultz & Smith PC on KEVN and other TV stations that have broadcast the ad:

The "shady off-shore corporation", Epoch Star Limited, represented by a prominent Sioux Falls lawyer, petitioned the State Banking Commission to determine if it was subject to South Dakota laws regulating loan companies and mortgage lenders. The State Banking Commission, acting independently as required by South Dakota law, reviewed evidence presented to it and ruled Epoch's proposed loan to Northern Beef Packers did not subject it to the money lender or mortgage lender/broker statutes. The decision in effect meant that Epoch was not subject to the income tax South Dakota imposes on financial institution profits [William Taylor, attorney for South Dakota Republican Party, letter to KEVN, 2014.10.15].

First, the Woods Fuller lawyers and the SDGOP should get their candidate back on the script. He was bleating counterfactually to Denise Ross Wednesday that Epoch Star, "just like any other institution," had to "get licensed." (Someone on Team Rounds is trying to work up the guts to say, "Mike, do your homework, or shut up!")

Second, the fact that a "prominent Sioux Falls lawyer," Steven Sanford, represented Epoch Star does not render false the DSCC's statement. Epoch Star is shady—we have no idea who they are. Epoch Star is an offshore corporation, a shell inside a shell inside a foreign company.

Third, Mike Rounds did give Epoch Star a special tax break in 2010. Rounds appointed Roger Novotny banking director in 2004. Banking commissioners serve three-year terms, so Mike Rounds would appear to have appointed every member of the Banking Commission, which approved the Epoch Star tax break at the end of June 2010. And Rounds's own economic development chief, cabinet member Richard Benda, represented the Rounds administration before the Banking Commission to urge approval of the tax break to revive the Governor's stalled legacy project. The Rounds Administration made Epoch Star's tax break possible.

And in the common vernacular synecdoche in which we refer to an organization by its head, "Mike Rounds gave special tax breaks to a shady offshore corporation."

The South Dakota Republican Party launched a similar specious attack on the free press last week with its bogus assertion that auction is a fighting word. It's remarkable how whiny South Dakota Republicans get when faced with the ugly facts about their crony capitalism and corruption.

KEVN, other broadcasters, don't let Rounds and the SDGOP bully you. You are much better suited to recognizing and publishing the truth than they are.

I think we need to be grateful we live in a state where we can get this kind of thing done with dispatch.
—Steven Sanford, lawyer for Epoch Star, South Dakota Banking Commission hearing, 2010.06.29.

64 Comments

  1. jerry 2014.10.17

    This statement alone shows the complete disregard of law by the lawmakers themselves. South Dakota has been out of control regarding following the letter of the law then as well as now. This is truly the money quote "I think we need to be grateful we live in a state where we can get this kind of thing done with dispatch.
    —Steven Sanford, lawyer for Epoch Star, South Dakota Banking Commission hearing, 2010.06.29."

    If that does not reek of cronyism and corruption, nothing does. What I hear is that no matter how shady, no matter how corrupt of a deal it is, we can get the taxpayer funds for it because of who we are, legal or not. The criminals holding the purse strings, able to disperse funding as needed to quiet the onslaught, just like any other ponzi scheme.

    This lawyer, like the rest involved with this ponzi scheme, should be disbarred or at least censured for their involvement. This corrupted case is kind of a play on the words themselves. It has not been lost on me that it is epic and the shady, off shore company, is Epoch. How in the hell did the state of South Dakota even know about doing business with off shore companies? We must have done it before to have the business being done so casually. Birds of a feather.

  2. Bill Fleming 2014.10.17

    I can't imagine any self-respecting media organization folding on this. Most media we've dealt with on politicals vetts all ads in advance, before agreeing to run them. Most, if not all, require documentation to support any claims.

  3. Bill Fleming 2014.10.17

    ...meanwhile, slow day at DWC. Powers can't talk about any of this stuff, so he's posting Kurtz's (redacted) nasty tweets and pretending to be disgusted. Earth to Pat, if you don't want your readers to see such things, use a darker redacting mark. Better yet, don't post it in the first place.

  4. mike from iowa 2014.10.17

    Jerry,dispatch is a loaded term. Benda comes to mind.

  5. larry kurtz 2014.10.17

    I was yelling at the radio so loudly a neighbor a quarter of a mile away called to see if i was okay.

  6. jerry 2014.10.17

    mike from iowa, good point. I am sure the rounds team will be celebrating that "dispatch" during mikey's early birthday bash. Only then they will be calling it freedom day...until November 4

  7. Roger Cornelius 2014.10.17

    SDGOP lawyers have got to love Democrat PAC ads. every time Rounds and team whine about them, the lawyers profit.
    And every time the SDGOP complains about the about the ads, they make headlines and draw more attention to the ad, Rick is getting some great free publicity when the SDGOP puts on its pouty face.
    By the time any threat of a lawsuit is somehow resolved, the ad has likely run its cycle.
    Un-ring the bell?

  8. Disgusted Dakotan 2014.10.17

    Ewwwwww! I'm telling! You're running the ad the Constitution loving (except 1st Amendment?), TEA Party (Express) endorsed, "Common Sense Conservative", "pragmatic" politician, moderate "Republican," Mike Rounds has forbidden be run!

    I bet his band of merry cronies are scrambling right now trying to find your mailing address!

  9. Lorri May 2014.10.17

    So I'm assuming this is the same SDGOP that did NOT put up a fuss when Angela Kenneke (sp?) of KELO-Land News kept interrupting Matt Varilek when he and Kristi NOem debated two years ago? Every time Matt tried to make a point, Angela would interrupt him and let Kristi ramble. Didn't hear a word from the Repubs. then. Hrm...

  10. Rae Lynn 2014.10.17

    I still am mad about &wondering whether Angela Kennecke so obviously favored Kristi because of R by her name, or was it because she was a WOMAN? Sure hope Angela won't be doing debates this year. Her favortism made me want to throw my shoe at TV!!

  11. Lynn 2014.10.17

    Keloland's news is like watching an infomercial on the Denny Sanford Center, Sanford Hospital and other things in Sioux Falls.

  12. tara volesky 2014.10.18

    Roger, you are a traitor against the Native Americans and SD.

  13. jerry 2014.10.18

    Someone is off their meds again

  14. Roger Cornelius 2014.10.18

    To be a called a traitor by someone who doesn't know what the hell she talking about 99.9% just maybe a compliment Jerry.
    Tara is taking out her frustrations on me since she is surely realizing by now Myers and her Freedom Slate don't stand a chance in hell of winning an election.
    She has fully demonstrated her lack of effectiveness as a campaign manager, if Myers were smart, which I don't think he is, he would have dumped her months ago.

  15. Roger Cornelius 2014.10.18

    She goes on Facebook and tells all her friends how much she detest Cory and those that comment on Madville Times, yet she can't stay away. Why she insist on being a glutton for punishment is beyond me.
    She has not convinced a single person here about Myers and her twisted political ideology, she refuses to read and comprehend, choosing to strike back and argue. What a way to win voters.

  16. lesliengland 2014.10.18

    Do you think John Lillibridge, Rounds appointee Banking Commiss., a 2014 participant on "Rounds for Senate", "Kristie for Congress", "RNC" ect., removed "constraints" for political purposes, or was this "independent 4-0 decision in line with legal authority; who was representing the commission at the time (no wonder Jackley can't adequately investigate this thing); and Taylor, show us the research, prior to Nov. 4 !?

    Joop is the "dude" explaining to the examiner--"constraits, constraints, you know my constraints." (The Big Lebowski satirizes this whole clusterfluck. Who's with me??)

  17. tara volesky 2014.10.18

    Roger can you post the comment where I said I detest Cory. Roger you are lying again.

  18. tara volesky 2014.10.18

    Roger, you are lying about Mike Myers to. He is a very smart man.

  19. Lynn 2014.10.18

    Tara please give it a rest. With your bull in a china shop behavior you have lost all credibility.

  20. jerry 2014.10.18

    I just posted it tara

  21. tara volesky 2014.10.18

    Lynn and Roger, you sound like PP over at SDWC. I am just trying to help you guys out a little bit, but I am not allowed in the club because a don't carry the D label. And Cory, I can like you and disagree with you no matter what Roger says. I think he's mad because Chad Haber is friends with Chase Iron Eyes and Annette Bosworth wants to move to the rez and take care of Native Americans.

  22. tara volesky 2014.10.18

    Thank you Jerry, I don't know how to post. One thing Roger is right about, is that I am not very smart.

  23. larry kurtz 2014.10.18

    Monty said he believes Rounds' floor is around 33%: "as if Satan had an 'R' after his name running for US Senate from South Dakota."

  24. jerry 2014.10.18

    33% is half of 66%. Add another 6 and what do you have? Can it be larry, can it be that Rounds is actually a name we only speak of regarding paint?

  25. Roger Cornelius 2014.10.18

    Jerry,
    That was a funny link, it wasn't the Tara was hoping for however.

  26. tara volesky 2014.10.18

    Roger, than I would appreciate it if you would not insinuate that I detest Cory because I don't. I don't even detest you. I would love to team up, but the problem is the SD Republicans will never vote a Democrat for Governor. Just look at the history. There have been highly qualified candidates who couldn't break 40%. It's the culture of SD. I feel not as a voter his platform is much more in line with the working class than Susan and Dennis. I guess you would have to compare them. They are just to Different. Nothing against Susan. She is a wonderful woman, but Mike will fight big insurance and hospitals and develop an insurance cooperative which will be owned by the people. Susan and Dennis have gotten campaign contributions from the health care industry and they are against patients choice.

  27. caheidelberger Post author | 2014.10.18

    How did we get this far off track? The point here is that the SDGOP's defamation claim is bogus. The TV stations have no reason to fear legal retaliation for broadcasting the DSCC ad. Most importantly, the Republicans have no direct response to the substance of the claims, that Mike Rounds supported corruption, mismanagement, lawbreaking, and cronyism, so the Republicans have to manufacture these false defamation charges to distract everyone from Mike Rounds's unfitness for office. None of Tara's comments (or attempts to advertise a bogus website without paying) have any impact on this story.

  28. Roger Cornelius 2014.10.18

    That is the reason the SDGOP wants the ad pulled, Cory.
    It is on target and they can't dispute or parse the word "auction" as in previous ads.
    When they pull these stunts they draw more attention to the ad and that serves Rick purposes.
    Even if they are successful in pulling the ad, they can't un-ring that bell, the message has bent sent and received.

  29. Roger Cornelius 2014.10.18

    Tara,
    Hopefully this will be the last comment I have for you, Sanford and Avera are not issues for western South Dakota, most voters out this way have no idea what Myers is talking about when he addresses healthcare.
    It is not a broad enough or statewide issue that us westerners grab ahold of.

  30. owen reitzel 2014.10.18

    I know off topic Cory, however.... Tara you want to join with us only if we go a long with you and agree with everything you want. If we won't do that then we're the enemy.
    You have to realize Tara that we don't to be associated with Bosworth or Haber.

  31. tara volesky 2014.10.18

    Be careful what you say Owen. Remember Rick is a Populous.

  32. Bill Fleming 2014.10.18

    Tara, it's 'Populist'.

  33. Lynn 2014.10.18

    Why does Owen need to be careful what he says? What does it have to do with Rick Weiland being a Populist?

  34. Bill Fleming 2014.10.18

    http://www.merriam-webster.com/dictionary/populist

    It doesn't have anything to do with it, does it Lynn? And, Earth to Tara, your candidates aren't populists. Nor are they just plain old common folk. They are very... um... unique people, amirite?

  35. Roger Cornelius 2014.10.18

    South Dakota is hardly a populous state, not even close.

  36. Lynn 2014.10.18

    Roger it's just Tara. Steve and Angelo are off tonight. lol

  37. Roger Cornelius 2014.10.18

    Lynn,
    I haven't seen anything from Angelo since you posted his mug shot, now if you could only find one of Sibson.

  38. JeniW 2014.10.18

    Angelo left in a huff because no one would play along with his anti-Obama game, no would anyone play the way he wanted us to play.

    Tara's posting of his mug shot will probably keep him a way for a while.

  39. tara volesky 2014.10.18

    ok, I disagree. SD will wake up and be a populist state. Please don't exclude anybody outside the Democrat party.

  40. Roger Cornelius 2014.10.18

    Rick Weiland is the only populist running for office this year.

  41. mike from iowa 2014.10.18

    9 out of 10 beavers prefer poplar to other popular beaver treats in populist beaver colonies.

  42. tara volesky 2014.10.18

    Myers is a populist and if you don't think he is prove me wrong.

  43. JeniW 2014.10.18

    Ooops, my mistake, it was Lynn who posted Angelo's mug shot.

    I apologize for my error.

  44. Roger Cornelius 2014.10.18

    I've never seen or heard anything about Myers being a populist, does he use that in his campaign?
    Myers must be extremely pleased with Rick Weiland candidacy if he is a populist.

  45. Roger Cornelius 2014.10.18

    I've been right here Tara, can't you see me.

    Honestly, I've never heard that about Myers and was surprised, is that my fault for not knowing or Myers for not messaging it successfully?

    Tara, you have mentioned a number of times about Democrats being exclusive, there are not requirements for membership in the Democratic Party, all you have to do is register to vote, its that simple. Democrats don't have a Hubble Rule.

  46. tara volesky 2014.10.18

    The Hubbel rule was done by the Republican establishment to destroy Lora Hubbel because she knows how corrupt they are having served in the legislature. I hope the Democrats don't behave like the Republican machine. You will understand me Roger, but now is not the time.

  47. Roger Cornelius 2014.10.18

    I seriously doubt that the SDDP would never adopt such a thing as the Hubble Rule, Democrats want full participation from registered voters, even the ones that get a little kinky from time to time.

  48. Roger Cornelius 2014.10.18

    Lynn,
    I'm curious too, why does Tara tell Owen he has to be careful what he says?

  49. grudznick 2014.10.18

    Ms. Volesky, in Ms. Hubbel's 2 years in the legislatures she only ended up as a laughing stock. I really don't think the GOP would adopt such a rule for a nice young insaner than most woman like her.

    They need to adopt some rules that go for that chiseling, lying, tax-cheating, overgodding, money-grubbing monstrosity Mr. Howie though. Oh yes they do.

  50. caheidelberger Post author | 2014.10.18

    For Pete's sake! We have Mike Rounds on the ropes! Tara, focus! Help the populace realize they are populists, tell them to vote for Rick Weiland to keep corruption out of the Senate!

  51. grudznick 2014.10.18

    Mr. H, I think it highly likely that Mr. Rounds will keep rope-a-doping you and your fellows a bit longer. I don't think Mr. Pressler can catch him at this point unless Mr. Weiland bails out and throws all his support behind Pressler.

    I really suspect that after election night when Governor Daugaard and Senator Elect Rounds and that Sattgast guy and Barnett and even Jackley, who has no Democrat running against him but just a Liberatarian, when all these fellows take office you will snap and lash out at me.

    Because I just called the election. Bet you a breakfast and a beer.

  52. Roger Cornelius 2014.10.18

    grudz,
    Beer and breakfast, that doesn't sound very appetizing.
    Rick is not going to drop out of this race, he is splitting the Republican vote three ways. Rick will win this race.
    grudz, what we have to look forward to after the election, regardless of who wins, is what the FBI and other federal investigations have to reveal about those corrupt Pierre politicians. It might not be pretty grudz.

  53. tara volesky 2014.10.18

    Cory, excuse me, I am focused. I am like a bull in a China cabinet. You guys need to get focused.

  54. Roger Cornelius 2014.10.18

    Tara's Freedom Slate* to stop corruption.

    Governor - Myers/Hubble
    Congress - None - "No Freedom Here"
    Secretary of State - Lori Stacey
    Attorney General - Chad Haber
    PUC - Wayne Schmidt
    State Auditor - Kurt Evans
    Comm of Schools - John English

    *I don't understand this Freedom thing

  55. tara volesky 2014.10.18

    Roger, first time I heard of that. There you go again. Making things up.

  56. Roger Cornelius 2014.10.19

    You posted it on your Facebook page, Tara.

  57. Bree S 2014.10.19

    I remember when I was a kid and wanted to watch a movie.. I'd pop the VHS tape in and there'd be nothing but fuzz.

    Sure enough I'd left it sitting next to a magnet.

  58. tara volesky 2014.10.19

    Roger, that was an endorsement by the SDAP. Why not post it?

  59. Bill Fleming 2014.10.19

    P.s. Sorry to interrupt your little snit, Tara. But it was time to get back to the main topic, don't you agree?

  60. Bill Fleming 2014.10.19

    Thank you, Tara. :-)

Comments are closed.