I had a long drive yesterday, with plenty of time to think about Joop Bollen, Richard Benda, and their scheme to get rich funneling EB-5 money to TransCanada's Keystone XL pipeline. But it only took me about ten minutes out of the driveway to realize that the EB-5/KXL overreach was an outright violation of Bollen's contract with the state and the whole purpose of the state economic development office.

Recall the terms of Bollen's contract with the Governor's Office of Economic Development (the contract inked while Benda was GOED/DTSD chief, the contract that took Bollen's EB-5 operations private as SDRC, Inc., and out from under more strict state scrutiny):

A. DTSD is an agency and instrumentality of the State of South Dakota empowered and directed to promote economic development in South Dakota and to enter into public-private partnerships for the purpose of promoting economic development in South Dakota.

...D. DTSD desires to contract with SDRC for the pirpose of having SDRC administer the Regional Center and the EB5 Program and to market the EB5 Program for the benefit of South Dakota, all in conformity with applicable statutes and regulations [Department of Tourism and State Development, contract with SDRC, Inc., 2009.12.22].

Bollen and Benda sought to expand SDRC beyond South Dakota's borders in order to solicit EB-5 funds for stretches of the Keystone XL pipeline and pumping stations in Montana and Nebraska. The state contract allowed Bollen to work on EB-5 "within the Regional Center's territory," but the above text, GOED's mission statement, state law, and common sense make clear that South Dakota's state economic development authority is supposed to promote economic development in South Dakota. Let's look at the statute establishing GOED's purpose:

The Governor's Office of Economic Development shall forge a private-public partnership among state government, local communities, higher education, and the private sector to create jobs that create goods and services for use within the state and for export outside the state, which results in the creation of new wealth [SDCL 1-53-3].

Funding Bollen and Benda's EB-5 promotion to lay pipe in Montana and Nebraska would not "create jobs that create goods and services for use within" South Dakota.

Remember also the basic tenet of government promotion of economic development: we spend tax dollars to make things happen that wouldn't happen without government help. TransCanada has said it needs no government assistance to build Keystone XL. TransCanada is an oil company. They are stinking rich. They've planned to fund the pipeline out of cash flow. And they've planned to build Keystone XL through South Dakota all along.

TransCanada didn't need any government incentive or crutch to choose a pipeline route through South Dakota. Bollen and Benda's desire to divert EB-5 money to TransCanada would not have created a single job or cranked out a single dollar of tax revenue that TransCanada didn't already plan to plow into South Dakota. The only unique benefit of connecting EB-5 investment with Keystone XL would have been more money in the pockets of Joop Bollen, Richard Benda, and their friends in the EB-5 money machine.


The GOED/EB-5/Benda scandal has connections to Northern Beef Packers, mega-dairies, Hutterites, Hyperion, the Philippines, and Mike Rounds. Now we add Keystone XL.

Jonathan Ellis fills our Easter baskets with the revelation that Rounds pals Joop Bollen and Richard Benda were scheming to connect their money-making EB-5 visa program to TransCanada's tar sands oil pipeline:

Joop Bollen, SDRC’s founder, applied to the United States Citizenship and Immigration Services — which administers the federal EB-5 program — for permission to add TransCanada as a qualifying business under the program, which enables wealthy foreigners to get green cards for investing as little as $500,000 in qualifying projects.

Besides trying to help Trans-Canada, the same application asked to dramatically expand SDRC’s geographic area of coverage. Bollen sought federal permission to expand SDRC to Montana and Nebraska in a bid to provide financing to the Keystone XL pipeline from the Canadian border to Nebraska’s southern border. SDRC’s contract with South Dakota to run the EB-5 program was supposed to be “for the benefit of South Dakota,” according to the contract’s language [Jonathan Ellis, "Documents Link State-Sponsored Company, Keystone XL," that Sioux Falls paper, 2014.04.19].

Bollen applied to include Keystone XL in May 2011. Governor Dennis Daugaard knew nothing about it... which is what we would expect when Mike Rounds let his pals take the EB-5 program private and hide their work from public oversight.

The EB-5–Keystone XL connection makes perfect sense. Recruit Chinese investors to pour money into a pipeline that will bring North American oil to their homeland. Send a 10% commission to Bollen, Benda, and other friends of Rounds and Daugaard, who cheerlead the pipeline and do nothing to block TransCanada's eminent-domain predations on South Dakota landowners.

Ellis reports the cost of Keystone XL in South Dakota alone may be $920 million. That would have allowed Bollen and Benda to recruit up to 1,840 EB-5 investors at $500,000 a pop. Recruiting investors for a huge industrial project that's received oodles of global press and is guaranteed to make money would have been much easier than selling the merits of some local beef plant or a Deadwood casino that no one outside South Dakota has ever heard of. And those investors would have paid Bollen, Benda, and SDRC's lawyers $45,000 each, for a possible take of $82.8 million.

TransCanada, to their credit, said no thanks. As with Hyperion, Bollen and Benda just couldn't strike oil with their visa investment scheme. But the EB-5 story keeps on growing. Stay tuned.


If South Dakota won't go after corruption in the EB-5 visa investment program, maybe the private sector will. Scott Waltman reports that California firm Darley Commercial is subpoenaing the crap out of South Dakota's EB-5 program. Two rounds of EB-5 funding for the bankrupt Northern Beef Packers in Aberdeen, three rounds of EB-5 funding for the Dakota Provisions turkey plant in Huron, EB-5 money for the Deadwood Mountain Grand Casino and a handful of other favored projects—Darley wants pretty much every scrap of paper that Joop Bollen and the Hanul Law Firm of California can come up with.

Plus, Darley wants to depose Bollen, who ran South Dakota's EB-5 program through NSU's SDIBI and then through his own private corporation SDRC Inc. and several shell partnerships until the state yanked his contract last September amidst a federal investigation of financial misconduct in the program. That's a deposition I'd love to witness... although I expect there will be a lot of brief answers using the word "Fifth".

Waltman can't tell what Darley is after. Darley has been on Bollen's case for a few years. As reported last November, the California company worked for SDIBI through Hanul to recruit Chinese investors for EB-5 projects in South Dakota. When SDIBI failed to follow through on a fish farm project that Darley promoted to potential EB-5 investors, Darley pressed for payment. Bollen cleverly shifted operations to the private corporate umbrella of SDRC Inc. and got a California judge to rule in 2011 that Bollen as SDRC Inc. chief did not have to submit to arbitration to answer for violations of contract he may have committed as SDIBI chief. One might speculate that Darley is still pressing its case, trying to establish the simple fact that someone must still be around to answer for whatever monkey business went on in South Dakota's EB-5 program.

Darley, I hope you get a full response to your subpoena. And I hope you'll share that response with the thousands of South Dakotans who would like to know who's been profiting on this questionable federal intrusion into the free market.


John Tsitrian offers the best blogospheric summary of yesterday's noteworthy Legislative hearing on the Governor's Office of Economic Development and South Dakota's use of the EB-5 visa investment program. Tsitrian catches the two big bits of news to come from the the Government Operations and Audit Committee's four hours of testimony and questions:

  1. Three other federal agencies—the Treasury Department, the Department of Energy, and the Department of Housing and Urban Development—have joined the Department of Justice and FBI in investigating GOED's activities. Hmmm... is investigating too harsh a word? GOED chief Pat Costello says those departments have submitted "informational requests."
  2. The Daugaard Administration continues to preach irrational optimism with respect to Northern Beef Packers. Costello averred before the committee yesterday that the bankrupt EB-5 project is bound to bounce back, producing "a lot of jobs" and tax revenue within two years. Costello says the state has already recouped much of its $3.5-million investment in NBP through taxes on NBP construction, equipment, and operations.

Costello also continued the state's logical strategy of making dead and disgraced Richard Benda the fall guy for all that was ill and unholy in the GOED/EB-5 mess. (Cathy, are you sure you want to keep collaborating with a state to which Richard Benda is now nothing but easily exploitable damage control?)

The main policy response discussed yesterday, tightening the rules for state employees submitting vouchers for reimbursement, specifically targets Richard Benda's questionable voucher practices. The other, background checks for state employees, won't weed out decent guys who get into state government and then start misusing their power.

Rep. Kathy Tyler (D-4/Big Stone City) isn't on the operations and audit committee. But she says the committee and the rest of state government lack the will to get to the bottom of the GOED/EB-5 affair:

The big audit by the Department of Legislative Audit summarized major issues with SDRC, Inc, the EB-5 contractor, but nothing will be done.  The committee was lead to believe that the state can’t look into SDRC, Inc.’s records, but according to their contract, it can. Also, the rules that the regional center must abide by are listed in a document that was not presented to the committee.  It states that the regional center (our state) has oversight responsibilities for any project.

It’s a huge, horrible mess that I don’t think anyone in charge really wants to dig into, and that’s too bad. It’s a black mark on our state. The losers are the citizens of South Dakota and small business that lost in the bankruptcy; the winners are the managers and friends of SDRC, Inc., who have garnered millions of dollars from various aspects of the program and off the backs of hard working South Dakotans [Rep. Kathy Tyler, "Legislative Session #89, Week Eight," Kathy's Corner, 2014.03.08].

Rep. Tyler's pessimism finds support in the premature agnosticism of assistant majority leader and committee member Rep. Justin Cronin (R-23/Gettysburg), who says everything's fine, nobody's hiding anything, and we know all there is to know:

Republican State Representative Justin Cronin says any efforts by the committee to dig even deeper won’t result in new information.

“We haven’t started to correct the problems that were identified.   And, I don’t know that we can dig far enough find a problem that is going to require us to call all these folks back and basically chew them out, which is some of the feelings I’m getting here today.   That we have something that they’re hiding, and I don’t think anything that has been hidden here,” says Cronin [Charles Michael Ray, "State Government Committee Probes EB-5, GOED Audits," SDPB Radio, 2014.03.07].

Rep. Cronin evidently was not paying attention to his own committee hearing: Tweet-reporting live from the hearing, David Montgomery said that the Department of Legislative Audit looked at "third-party documents" in its investigation of GOED and EB-5 but signed confidentiality agreements, which by definition means somebody is hiding something.

The Government Operations and Audit Committee declined to set a date for another meeting. But Senator Larry Lucas (D-26/Mission) said he'd like to hear from big EB-5 player Joop Bollen. Sen. Larry Tidemann (R-7/Brookings) said eliciting testimony from Bollen "may require a little bit more than a letter of invitation." Let us hope we get at least one more hearing to test Bollen's willingess to speak.

*   *   *

§ 2-6-6. Refusal to testify or produce evidence before Legislature as misdemeanor.

Any person who, being present before either house of the Legislature or any committee thereof authorized to summon witnesses, willfully refuses to be sworn or affirmed, or to answer any material and proper question, or to produce upon reasonable notice any material or proper books, papers, or documents in his possession or under his control, is guilty of a Class 2 misdemeanor [South Dakota Legislature, Joint Rules, Eighty-Ninth Legislative Session, downloaded 2014.03.08].


More EB-5 alphabet soup...

When South Dakota began dabbling in the EB-5 visa investor program in 2004, the U.S. Customs and Immigration Service assigned the authority to administer that program to the South Dakota International Business Institute, a subentity of the Board of Regents operating on the campus of Northern State University. But by 2013, the program was run by SDRC, Inc., a private company created by SDIBI director Joop Bollen in 2008. How'd that change happen, and was it legal?

Among the great piles of documents the Legislature's Government Operations and Audit Committee will begin reading in their opening EB-5/GOED hearing on Friday is a Memorandum of Understanding (MOU), dated Janaury 15, 2008. I present images of that MOU's five pages here:

MOU-SDIBI-SDRC 20080115 p1 MOU-SDIBI-SDRC 20080115 p2 MOU-SDIBI-SDRC 20080115 p3 MOU-SDIBI-SDRC 20080115 p4 MOU-SDIBI-SDRC 20080115 p5

This Memorandum of Understanding is a creative legal fiction in which Joop Bollen talks to himself. The MOU shows James Park, lawyer for the Hanul Professional Law Corporation of California and South Korea, signing as the director of SDRC Inc. However, the only person mentioned on SDRC Inc.'s articles of incorporation on January 10, 2008, and on SDRC Inc.'s December 30, 2008, annual report is Joop Bollen. Park was made the registered agent of SDRC Inc on April 7, 2009, but a June 2009 corporate amendment names Bollen as the only director. Park's name appears on no subsequent SDRC Inc. corporate document in the Secretary of State's public corporate database.

Park did collaborate with Bollen in recruiting and processing EB-5 investors for South Dakota. But having Park sign this MOU appears to be a convenient way to make Bollen's shell corporation look, in the USCIS's eyes, like a separate entity. And as we've seen, creating SDRC Inc. gave Bollen cover from legal liabilities incurred by the SDIBI.

But if courts can buy the argument that pieces of paper like this memorandum can make Joop Bollen into two separate legal persons who are not responsible for each other's actions, then let's look closely at the language of this piece of paper. The memorandum reminds us that SDIBI was an approved and designated EB-5 Regional Center. As far as I've seen, SDIBI is the only South Dakota entity ever so recognized by Customs and Immigration and Homeland Security. The MOU says the SDRC Inc. was "organized for the purpose of creating an EB-5 Alien Entrepreneur Investment Project within SDIBI" [emphasis here and subsequently mine]. The MOU says SDIBI's director will have amongst his/her principal duties and responsibilities the ongoing coordination, oversight and liaison" for EB-5 recruitment. The MOU says SDRC Inc. will provide "assistance" to the EB-5 project "within" SDIBI.

This language suggests that SDRC Inc. was to operate as a subsidiary of SDIBI. Paragraph 6 does declare that SDRC Inc. "will act in an independent capacity and not as officers or employees of SDIBI/DEDR or the State of South Dakota," language intended to shield Bollen and the state from scrutiny and liability. But the overall language of the MOU makes clear that SDRC can engage in EB-5 activities not by dint of its own designation as a Regional Center but only in its subsidiary relationship to the Regional Center of record, SDIBI.

Here's the problem: SDRC Inc. continued to do EB-5 business under the Rounds and Daugaard Administrations even after SDIBI ceased to exist. Joop Bollen quit his job as SDIBI director on December 21, 2009. He took nearly all of SDIBI's EB-5 records. The next day, the Department of Tourism and State Development contracted directly with SDRC Inc. to conduct EB-5 activities for the state. In that contract, signed by Bollen (not Park) and DTSD Secretary Richard Benda (there he is!), the Department erroneously claimed unto itself the Regional Center designation that USCIS issued specifically and solely to SDIBI.

And in 2010, the Board of Regents axed the SDIBI director from its budget, ending the functional existence of SDIBI and leaving no one in South Dakota authorized by USCIS to do EB-5.

It thus appears that SDRC Inc. engaged in EB-5 activities without legal authorization. The contract under which SDRC Inc. operated from December 22, 2009, to September 19, 2013, came from a state agency that did not have the authority to grant it.


Hat tip to David Newquist for irony of the week!

Joop Bollen has made a living by coordinating government intrusions in the marketplace. For nearly twenty years, as director of the South Dakota International Business Institute under the Board of Regents and as boss of private contractor SDRC Inc., he has marshaled state and federal resources to secure foreign investment in favored businesses.

But let local government express a desire in stimulating activity in a business sector where Bollen has a stake, and Bollen suddenly views government as a sloppy, ill-informed interloper that has no business challenging his market position.

Aberdeen has had a tough time providing housing. A November 2010 housing study found a need for more income-based and low-income rental housing. A study completed last month finds the need persists. To address this need, the Aberdeen Housing Authority would like to build a 40-unit subsidized apartment building to serve low-income folks in the over-55 age range.

Joop Bollen, who lost his economic development contract with the state in September and now must rely on his extensive rental property holdings to keep him and his wife Charisse jetsetting, is raising all sorts of objections to this effort to help Aberdonians find decent places to live. He tells the Aberdeen City Council the housing study must be flawed:

Joop Bollen who owns various properties in Aberdeen, including the Fifth Avenue Apartments, said he is concerned with the validity of the study.

“I’m very concerned that the study is skewed,” Bollen said questioning whether the study takes into account recently constructed apartments in Aberdeen and the recent closure of the beef plant.

“You should review the study and make sure it’s accurate,” Bollen said. “If you sign off on that letter, you state you’ve seen the study and feel there’s a need. My concern is whether or not there’s a real demand” [Elisa Sand, "Landlords Disagree with Need for Housing Authority Request," Aberdeen American News, 2014.02.19].

Giggles turn to guffaws when Bollen turns on his old profession and declares his private market off-limits to government subsidy:

In addition to concerns about the study, Bollen also questioned whether it’s the city’s role to subsidize public housing [Sand, 2014.02.19].

Mayor Mike Levsen can't leave that silly assertion alone:

“The idea that government has a role in housing is established policy for the past 50 years,” Mayor Mike Levsen said [Sand, 2014.02.19].

David Newquist finds both irony and self-serving counterfactuality in Bollen's protest:

Many students, especially single parents, found help in subsidized housing, which made it affordable for them to attend college.  The real complaint that some landlords have about subsidized housing is that they may have to lower their rents to compete.  City housing makes it possible for many people to live decently, something that is of no concern to the private rental market.   The study shows that there is a 3.9 percent vacancy rate in Aberdeen.  The private landlords want to be subsidized by eliminating the competition provided by the city [David Newquist, "Watch Out: Here Comes a Huge Load of Irony," Northern Valley Beacon, 2014.02.19].

Bollen has raised alarms of convenience against government intervention in his marketplace before. In 2008, Aberdeen code enforcement officer Mike Holsten found a plague of rental units in abominable conditions. When the city proposed a plan for annual inspections, Bollen leapt to opposition:

However, some local landlords think the ordinance is too drastic. Joop Bollen, who owns more than 300 rental units, said requiring annual inspections would be a logistical nightmare and might not be as necessary as the city thinks.

“From a management standpoint, who's going to be there to do these inspections?” Bollen asked. “Do I have to take time off work? What if (the tenant) isn't home?”

Bollen said he can't form an opinion until his questions are answered. He also thinks paying for more than 300 annual inspections could be a financial burden. The city should first determine whether there is a problem, Bollen said.

Anyone can create a slide show portraying a big problem - just choose the worst pictures, he said [Jackie Burke Grumish, "Rental Housing Horrors," Aberdeen American News, 2008.02.03].

If Joop Bollen is sincere about his free-market conservatism, he should go apologize to the small dairies he's put out of business, the workers whose hopes he raised and dashed, and the foreign investors whose millions he made disappear with his rabid promotion of government intervention in the market with the EB-5 visa investment program.


"The plot has become much thicker," writes journalist Bob Mercer on reading the audit report on the Governor's Office of Economic Development. Indeed, the Department of Legislative Audit finds significantly more GOED/EB-5 mischief conducted under the Rounds administration (and carried over into the Daugaard era) than Attorney General Marty Jackley noticed or admitted following his "investigation."

The DLA's audit paints a Governor's Office of Economic Development that has allowed sloppy financial oversight and unchecked conflict of interest. The audit report confirms what we have suspected since the first announcement of a federal investigation into GOED's activities: that GOED's problems revolve around the EB-5 visa investment program run by Joop Bollen, promoted by Richard Benda, and launched to its greatest heights by Governor Mike Rounds.

The audit finds that GOED did not adequately monitor the EB-5 program as run by SDRC Inc., the private firm Joop Bollen spun out of his state job on the NSU campus:

  • Bollen sent GOED monthly e-mails reporting balances in the indemnification funds and the expense fund his December 2009 contract established, but he provided no bank statements or other documentation to prove those balances were correct or that he was reporting all of the money he and Benda touched in the course of business.
  • DLA couldn't find the documentation Bollen was supposed to submit to GOED to show that he was doing his contractual and legal duty to provide the EB-5 books, records, and reports to the U.S. Customs and Immigration Service.
  • SDRC's expense fund was a bucket with big holes:

Inadequate internal controls existed over the payment of expenses from the Expense Fund. Five disbursements were made from the Expense Fund totaling $67,259.97. The invoices were signed by the former Secretary of the DTSD [Richard Benda] and the DSTD’s Administration Director [I believe that's Marty Davis]. The invoices identified the expenses as being for meals, lodging and transportation. Other than the information contained in the invoices, there was no supporting documentation retained to evidence that the expenses were incurred, who incurred the expenses, or the purpose of the expenses [Department of Legislative Audit, "Governmental Funds of the South Dakota Governor's Office of Economic Development: Audit Report," 2014.02.12].

  • GOED left the state funds managed by SDRC off the books for three years, until FY 2013.

DLA says this lack of oversight created "a potential for the loss of assets." That's a brilliant euphemism for theft.

Governor Dennis Daugaard took the surest corrective action to these problems last September, when he terminated Bollen's SDRC contract. Bollen surrendered the $28,240 left in the expense fund to the state on January 30. Per the GOED-SDRC contract, Bollen hangs onto the $989,946 left in SDRC's Indemnification Fund One until November 2019. The audit report says GOED intends to audit that fund "if and when the funds were reverted to the State."

DLA mentions a second SDRC indemnification fund that reverts to the shareholders of SDRC, who from SDRC's 2014 annual report appear to be no one other than Joop Bollen and his mysterious pal from Georgia Pyush Patel. You know, I don't think SDRC is done fleecing us or the EB-5 investors yet.

Who allowed this mismanagement to take place? The man who wants to be your next Senator, Mike Rounds.

In its second finding, the audit report says that GOED allowed Richard Benda to use his state position to set himself up for personal enrichment:

On December 2, 2010 Secretary Benda discussed a draft employment contract between Secretary Benda and the SDRC Inc. or a related entity for providing loan monitoring services related to NBP. On December 23, 2010, Secretary Benda amended two Future Fund grant agreements with the South Dakota Development Corporation (SDDC) for the purpose of making loans to Northern Beef Packers LP (NBP) which increased the aggregate total of the two agreements by $600,000 (from $1,450,000 to $2,050,000). On February 1, 2011, $1,200,000 of these funds was disbursed to NBP by the SDDC. $850,000 was returned to the Future Fund.

Secretary Benda’s employment with the State of South Dakota ended on January 8, 2011. On January 13, 2011, subsequent to his employment by state government, Mr. Benda was notified by e-mail that he could pick up a check written by the State of South Dakota to NBP for payment of a $1,000,000 grant to NBP for reimbursement of construction costs. This check was deposited by NBP on January 26, 2011 [DLA, 2014.02.12].

Who wrote the checks to underwrite Benda's conflict of interest? Mike Rounds.

In its third finding, the DLA says Benda's $5,559.80 double dip on plane ticket reimbursements was not an isolated incident. DLA finds Benda submitted six invoices totaling $14,700 for "translation services." This money supposedly covered writing up EB-5 pitch materials in other languages. Ping, ping, ping goes the scam radar:

All six invoices indicated that the payment on the invoice was to be made in cash. Five of the payments totaling $13,500.00 were associated with invoices from an individual that had handwritten on them “only invoice available” and the instruction on the invoice was to “pay by cash when next trip”. One invoice for $1,200.00 was on the letterhead of a Philippine hotel and had handwritten on it four names, “USD Cash $1,200.00”, “translation and interpretation”, and “only invoice available”. No receipts were included with the travel vouchers to support that payment was tendered for the services provided on the invoices. As a result, $14,700.00 in expenditures paid from the General Fund was not properly supported [DLA, 2014.02.12].

Cash only, for services at a Philippine hotel, recorded only on a handwritten note... and wait: how many investors did SDRC and GOED recruit from the Philippines? My translation: Richard Benda is toast.

Who let those expenses fly? Mike Rounds.

In its fourth finding, DLA confirms what Rep. Peggy Gibson learned a year and a half ago: GOED does a poor job of following up on the Future Fund money it hands out to businesses. In its fifth finding, DLA says GOED has been violating state law by not depositing receipts greater than $500 within one day.

Who allowed this poor oversight to be the status quo? Mike Rounds.

The audit doesn't mention the $550,000 Benda and Bollen diverted from from Future Fund Grant #1434 to SDRC Inc. ($450,000 of which went to Richard Benda's pocket; the remainder has not yet been fully accounted for). Auditor General Marty Guindon says in his cover letter to the audit that the diversion did not violate state law. But Guindon's conclusion on this matter isn't exactly exonerative:

Based on the evidence gathered during our audit, we did not determine that there was any noncompliance with state law on the part of DTSD in the issuance of this grant or noncompliance on the part of DTSD or NBP with the terms of the grant. Our audit does not provide a legal determination regarding this matter. Any criminal findings that may be associated with this matter are the purview of the state and federal criminal investigations being conducted and are not within the scope of our audit responsibilities. We do report a material weakness in policies and procedures concerning potential conflict of interest related to this matter in the audit finding on page 35 of the report. Finally, we believe that the use of the $550,000 is a matter between private parties and consequently not within the scope of our audit [DLA, 2014.02.12].

These findings tie Richard Benda to more suspiciously used tax dollars. Add the bankruptcy of Northern Beef Packers and the failure of his gamble on the Hyperion refinery, and we start to see a much bigger picture about the stress that Governor Daugaard says drove Richard Benda to kill himself. We also see why Joop Bollen has taken the Fifth in the press since November.

But more importantly, we see a much larger picture of a state economic development program run like a lemonade stand, without rigorous control of state finances. We see mistakes and abuses that reflect more than two employees' machinations. They reflect an institutional sloppiness and corruption that lie at the feet of the man in charge.

The man in charge of the Governor's Office of Economic Development is the man with the apostrophe s, the Governor.

The DLA Audit report raises a lot more questions for Richard Benda's friend and Governor, Mike Rounds.


In December, I speculated that Richard Benda and Joop Bollen had their eyes on Hyperion's proposed refinery in Elk Point as one of South Dakota's next great EB-5 visa investment projects. A document from the Governor's Office of Economic Development shows that I wasn't just speculating.

In January 2008, the South Dakota International Business Institute asked the U.S. Customs and Immigration Service to amend the state's regional center status to include projects beyond dairy operations into a variety of fields, including petroleum and coal products manufacturing. The request included this statement referring to Hyperion:

SDIBI Amend 2008 refinery clip1

The amendment request packet includes an attachment that makes the Hyperion–EB-5 connection explicit:

SDIBI Amend 2008 refinery clip NYT

That 2007 New York Times article announcing the Hyperion project makes clear EB-5 director Joop Bollen and GOED chief Richard Benda intended to help the Dallas entrepreneurs build their fantastic Elk Point refinery on cash from immigrants from China and other countries seeking to buy their green cards.


Recent Comments

  • Jenny on "Your Choice in Novem...": Daugaard is also protecting insurance company prof...
  • Lanny V Stricherz on "Mobridge Reporter Li...": I guess the weakest answer that Ravensburg gave, w...
  • Deb Geelsdottir on "Contest of Rich Ideo...": I read the CNBC article, and note one of the first...
  • Deb Geelsdottir on "Contest of Rich Ideo...": John, I don't think appreciation of nuance is a st...
  • John Tsitrian on "Contest of Rich Ideo...": Okay, railing against ruling elites, as Weiland's ...
  • Disgusted Dakotan on "Rhoden Sticks It to ...": @CAH I should have not allowed "TG" to draw me int...
  • grudznick on "Your Choice in Novem...": I was really hoping somebody had a movie of Ms. Hu...
  • Roger Cornelius on "Rhoden Sticks It to ...": Disgusted, Who were the principals in the shiel...
  • JeniW on "Your Choice in Novem...": Are the Board of Directors of either or both hospi...
  • Lanny V Stricherz on "Your Choice in Novem...": Jeni is right. It was Mike Myers and he did 20 on ...

Support Your Local Blogger!

  • Click the Tip Jar to send your donation to the Madville Times via PayPal, and support local alternative news and commentary!

Hot off the Press

South Dakota Political Blogs

Greater SD Blogosphere

South Dakota Media

Visit These Sponsors

Come learn with us at Rutland School
Vote for Stace Nelson for U.S. Senate
Conversation and Lunch with Democrats!
New Hope Horse Shelter, Crooks, SD
Join Stan Adelstein's conversation about South Dakota's past and future

SD Mostly Political Mix

Greater SD Blogosphere

  • Tramplingrose
    Homemade Tomato Soup: I think I’ve mentioned several times on the blog that I absolutely cannot stand condensed, canned tomato soup. It’s nasty. I have never liked it–As a kid, I’d rather have Continue Reading → The post H…

  • shelboese.org
    From Internet Monk: Icebergs, Onions and Why You’re Not As Simple As You Think: iMonk Classic: Icebergs, Onions and Why You’re Not As Simple As You Think  internetmonk.com by iMonk From April 24, 2008. “My theology is simply what I read in the Bible.” Sure it is. “What I believe…

  • South Dakota Magazine
    Gas, Pop, Eggs ... and 1,000 Guns: Kones Korner is a hunter's paradise in Hamlin County.…

  • Dennisranch's Weblog
    Busy: Chance and I replaced the cylinders I bent on the loader this morning… little bit more of a job than we planned… had to take them all over to Red Owl and use Kevin’s press, to push out the bushings in…

  • Cinema South Dakota
    Dust of War gets distribution deal: "Dust of War," the post-apocalyptic film from the plains of South Dakota will be distributed worldwide soon and Sci-Fi Magazine has taken note. Here's an excerpt of Sci-Fi Magazine…

  • Lakota Voice
    BIA Superintendent Position – Rosebud Sioux Tribe Not Included in Decision?: April 22, 2014 By Ann-erika White Bird SICANGU LAKOTA OYATE — During the April 15, 2014, Council meeting, mention was made of a March 10, letter Council received after the BIA superintendent position…

  • Dakotagraph
    Happy Earth Day from Good Earth: Happy Earth Day from Good Earth State Park at Blood Run, South Dakota's newest state park just outside of Sioux Falls.These pictures were taken over the Easter weekend.…

  • A Progressive on the Prairie
    America’s credulousness: This weekend again left me bewildered about how, in the 21st Century, American belief systems remain so knowingly blind to science and the exercise of reason. It’s almost as if the scientific revoluti…

  • a story
    In the moments: It had been another tough day. Applications, postings and cover letters fluttering in and out. My job search was still quite new but I felt that I was not getting anywhere. How foolish I had been to t…

  • The MinusCar Project
    Video Shooting: Last week we shot some safe biking video for use in various places. I'm not completely sure of all the intended uses. It was fun setting up for avoiding door zones and avoiding right hooks.Here i…


Enter your email to subscribe to future updates

Madville Monthly