You know that federal investigation of the South Dakota Governor's Office of Economic Development? It appears they are looking where I thought they'd be looking:
Dennis Hellwig, who stepped down as Northern Beef Packers’ general partner more than four years ago, and Bob Breukelman, the plant’s former construction engineer, told the AP they have been questioned by federal investigators about the idled Aberdeen plant’s financial dealings and the federal EB-5 program, in which foreign investors can secure permanent residency for as little as $500,000.
“There were some discrepancies in the way the EB-5 program was being handled,” Breukelman said.
Neither Hellwig nor Breukelman would go into detail about the agents’ questions or their responses ["Feds Looking into S.D. Beef Plant," AP via that Sioux Falls paper, 2013.10.31].
What's that I said yesterday about where we ought to look first for possible financial misconduct in state economic development activities?
South Dakota, operating through the privately incorporated South Dakota Regional Center, has used EB-5 money to fund numerous projects: the Dakota Provisions turkey plant in Huron, the Deadwood Mountain Grand Casino, the Veblen megadairies, and Northern Beef Packers.
The last two were the biggest projects the SDRC funded during the Rounds Administration. And without the advocacy of Mike Rounds and the financial wizardry of Richard Benda, Northern Beef Packers in particular never would have happened. The Veblen megadairies and Northern Beef Packers both made millions of dollars of EB-5 money disappear in apparent mismanagement and bankruptcy.
If there was any place for anything to go wrong with big money, the EB-5 visa program and the bankrupt projects it funded seem like the first place to look [Cory Allen Heidelberger, "Feds Investigate Governor’s Office of Economic Development," Madville Times, 2013.10.30].
What's that you hear, Pat? Drip, drip, drip....
funny how DWC spends more time ripping you Cory then talking about something that looks to be a big story. Which looks like it might not have a good outcome for Rounds
Just glanced at DWC and noticed the same thing that Owen has -- PP is trying to deflect attention away from his decision to not cover this story (and more importantly, what's motivating him to not give it any attention) by launching an attack on you, Cory. Pretty desperate move on his part. He's also using the "what more is there to write about?" excuse -- guess he kept asking himself that question today while posting hunting photos instead of trying to get in touch with the "spies" he loves to talk about and actually try some news reporting.
Nixon and Agnew used the attack the messenger approach during their numerous scandals, it didn't work for them
To be fair, no bloggers are "covering" this story. I don't really understand it all but it is the media that is covering it. Bloggers are just gossiping about it and razing each other. I sure wish Mr. H and Mr. PP got along better.
Baloney, Grudz. I've covered numerous aspects of this story—EB-5 visas, NBP, Veblen, Rounds, economic development—with evidence and analysis, not just copying and pasting from newspapers. I've always done much more than gossip and razzYour confuse my blogging with Pat's tactics. And yours.
It appears the now #2 South Dakota Political website is deleting posts and replies regarding this ongoing investigation and the questions it brings up. Some dismiss it as speculation but still for the federal government to get involved it definitely raises red flags and makes one question if this is under investigation what else happened that could have been a misuse of power. Unfortunately with one party having a majority in our state the check and balance valued in a democracy seems to be hampered.
I feel bad about the whole situation with the death of Richard Benda and my sympathies go out to his family, friends and his co-workers regardless of the circumstances of his death or involvement in this investigation. Life is way more precious than all of this.
My sympathy also goes out to those who were involved Northern Beef Packers Plant in Aberdeen. It has struggled since day 1 and many people put a great deal of hope, time and money into that facility from the Ranchers, workers, state & local community, investors, contractors, taxpayers that suffered along the way and are still trying to recover from it.
The Mega Dairy in Veblen and NBP in Aberdeen were supposed to be part of Value Added Agriculture efforts in South Dakota that had great promise but ended in great disappointment and frustration.
It will be interesting to see how this investigation plays out but as mentioned earlier it certainly raises questions
Troy Jones: call your solar system.
Troy Jones?
Good job reporting on this NBP fiasco, Cory. We all know DWC and other South Dakota right wing media would be covering this 24/7 if this had been an Obama project.
Troy is wrestling with Steve Hickey, maybe Stace Nelson, for the last Republican in South Dakota with a soul.
This should put to rest the question of whether or not Powers is a journalist.
This is quite the story. I just never thought us South Dakotans were smart enough to figure out the scheme, nor dumb enough to get caught...looks like I am wrong on both counts...keep digging Cory, I do not read DWC, just like I have Fox blocked on my DIRECTV. It is just simpler that way and my acid reflux stays under control.
The coverage of NBP is very fragmented. No coherent account of its many aspects has been compiled as of yet. That in part is because the state corporate code does not require a full accounting of the financial arrangements for corporations registered in the state.
In addition to the Korean investors, there are 80 Chinese EB-5 investors. Some of them sued the South Dakota Regional Center, but the suit was dismissed. No mention has been made of the TIF bonds and what happens to those who invested in them.
From the outset, NBP was beset by people with schemes, who are partially responsible for the many delays in trying to make the plant operational. The basic plan for the plant in tracking beef from calving to processing and providing grass-fed beef to specialty markets tapped into a growing trend, but by the time the plant actually started processing beef, those aspects of the operation seem to have been dropped, and the focus was on boxed beef for export to Korea and other Asian countries.
Some of us who had written about NBP over the years were contacted by a lawyer from Dallas who wanted to talk to us about the EB-5 arranged, and he even set an appointment. He didn't show, and we never heard form him again.
The financial juggling was frantic, but the investors aren't the only ones stung. Word circulated about the shortage of housing for the workers, and Aberdeen has constructed hundreds of apartment units during the past two years. No one has ventured much informed information about the effect of NBP's bankruptcy on them, although now the attention has shifted to hoping some firm grabs up the plant at a bargain price and gets it going. But as with the plant from its beginning, there is little sound information and a blizzard of hazy speculation.
Looks like Pat's 'drip' post has backfired. He's deleting comments faster than green grass through a goose.
In previous posts, Cory has done a good job of asking questions. Like the lack of disclosure on the Governor's Hunt etc.
The distinguished Newquist also raises good points on the news coverage, or lack thereof. I haven't looked, but was there anything at all in official announcements or stories about the EB-5 aspect of this story? Did it come up in any testimony to the legislature? Did anyone ask?
This also gives the Argus a "we told you it was important" moment. (Although the political blog discussion is on trick-or-treating at the Governor's mansion)
Where there's smoke (Smokeout) there's fire. Do you suppose there will be a forensic audit of all GOED activity that's made public?
Dave it's worse than that! PP has now distracted the state's highest attorney to discuss animal rights terrorism...oh the horror...oh that's right it's Halloween and we must strike fear into the hearts of South Dakotans.
It's fascinating that SDAG Marty Jackley would take the time to do an interview with the GOP mouth piece and #4 political blogger to take a stand on what could happen to people who abuse animals for profit.
Way to go Marty! You give us all confidence that you have your priorities for South Dakota perfectly in line!
So media, when Marty says he won't comment, he will. As long as you ask him the right questions. Then ask him why he has time to spew speculation to a 3rd rate political blogger hack and not to the citizens of South Dakota. Never mind, you already know the answer to that and it should scare the h*ll out of you as you look to report facts and truth.
Wait a minute. What did Jackley know and when did he know it?
Oh no! Now I feel bad. PP and the DWC (Daily WashingtonDC Claptrap) is a serious political blog...so someone must have pirated his site and is probably making him watch Jimmy Carter's Nobel Peace Prize award presentation for him not to weigh in on something so serious to his party and more importantly our state.
Free Pat Powers!
Given the lack of comments here from the usual GOP supporters, they may also be in harms way. Troy, Lee, DB, Hoffman etc...you guys OK?
Mr. Woster. (I know your reading) There might have been a better reason for Mike Rounds to have stood you up on your hunt...just saying he might not want to answer any hard questions right now. Of course it might have been that none of his hunting partners from the media had enough money to feed the campaign machine.
We need to track down the true amount that was spent including interest, infrastructure, etc...
http://articles.aberdeennews.com/2013-07-27/news/40837325_1_northern-beef-packers-certified-beef-program-beef-plant/2
The link is the time line of events for the northern beef packers
http://www.aberdeennews.com/news/beefplant/
Stephanie Strong
Will your "grand jury" be issuing subpoenas, questioning the culprits and asking for indictments?
The link is the time line of events for the northern beef packers
http://www.aberdeennews.com/news/beefplant/
I wonder how Rapid City likes all of those Tif's they are giving out after learning this
http://rapidcityjournal.com/news/council-to-review-new-tif-for-eastside-development/article_6ed7d131-3fae-5caf-b9a2-31cdb12e50f8.html
http://rapidcityjournal.com/news/counties-want-more-say-when-cities-create-tifs/article_e06d656b-a0bc-552f-9c99-8072f1e48de9.html
http://rapidcityjournal.com/news/council-approves-new-presidents-plaza-tif/article_95064e36-a3c7-11e1-886f-001a4bcf887a.html
http://rapidcityjournal.com/news/million-in-tif-funding-for-presidents-plaza-ok-d/article_b1a83c16-09d5-11e1-883c-001cc4c002e0.html
and on and on. We cannot afford this corruption
Powers is deleting comments that are on-topic and conform to all of his policies. He's an absolute fraud.
Roger, to answer your question, the people are keen on setting the brush fires of freedom in the minds of men.
On the other hand, our hired servants prefer the status quo, thereby they're not too keen to receive the People back in control of the Peoples judicial and political processes. Lysander Spooner, author of Trial by Jury (1852) said: “any government, that is its own judge of, and determines authoritatively for, the people, what its own powers are over the people, is an absolute government, of course. It has all the powers that it chooses to exercise. There is no other, or at least, no more accurate definition of despotism than this”. Thomas Jefferson in writing the Declaration of Independence said: “That to secure Life, Liberty and the pursuit of Happiness, Governments are instituted among Men, deriving their just powers from the consent of the governed”. It is the People (Grand Jury) that consent to government.
To dismiss the Common Law Grand Jury is to dismiss the Bill of Rights and reject our founding document, the Declaration of Independence.
The Common Law Grand Jury is an unalienable right, protected under the Law by the Fifth Amendment. Common Law is synonymous with Natural Law which can never be codified or supplanted, for Common Law is our American Heritage, born of the Declaration of Independence. But four New York Supreme Court Judges would have us believe that Common Law can be superseded by four progressive judges in the (1961) case Wood v Hughes. To the contrary, in a stunning six to three (1992) Decision that went unnoticed, until now, Justice Antonin Scalia writing for the majority said: “The grand jury is mentioned in the Bill of Rights, but not in the body of the Constitution. It has not been textually
assigned, therefore, to any of the branches described in the first three Articles. “It is a constitutional fixture in its own right. In fact the whole theory of its function is that it belongs to no branch of the institutional government, serving as a kind of buffer or referee between the Government and the people”... “Our Founding Fathers presciently thereby,created a "buffer" the people may rely upon for justice, when public officials, including judges, criminally violate the
law.”… “The common law of the Fifth Amendment demands a traditional functioning grand jury”… “It is in effect a fourth branch of government governed and administered to directly by and on behalf of the American people, and its authority emanates from the Bill of Rights”. Thus, citizens have the unbridled right to empanel their own grand juries and present "True Bills" of indictment to the court, which is then required to commence a criminal proceeding.
Furthermore, on "Constitutional Issues" the United States Supreme Court rulings are the "Law of the Land" (unless repugnant to the same) and therefore over rules all State Supreme Court rulings.
I enjoy you and Powers needling each other. I hope it is in good fun even if it is serious at times because you each make each other better.
Mike, I haven't felt the fun from PP's side since his time in the Secretary of State's office. He deletes far too many comments and issues far too many personal attacks to be considered a cooperating member of the blogospheric family.
Dr. Newquist thank you for your informative reply on this subject and I enjoy reading your blog also! Some of the details I had forgotten since I lived out of state for a few years but this ordeal lasted such a long time and just dragged on. I remember the long list of contractors that were financially burdened with it taking a very long time to get paid plus the added legal expenses to help. The local investment made including apartment buildings going up in anticipation with this influx of workers. Then with everything else there were the plant workers who were the most vulnerable living paycheck to paycheck that took a chance and moved to Aberdeen
Going back and reading what happened with the Veblen Mega Dairy is incredible! What a mess! Besides the economic mess were they able to clean up the environmental manure spillage from that? Taxpayer expense?
I left an on-topic comment on DWC under his post that takes shots at Cory. I pointed out his wild speculation about Stephanie Herseth-Sandlin and Brendan Johnson and whether they will or will not run for office. And now because this latest state scandal involves Republicans, he won't speculate. Hypocrisy. But he deleted it. Heavy P doesn't like to hear the truth!
I have a feeling the investigation is not going to end well for the state and the GOP. Unless the partisan attorney general decides to cover it up.
Guess I'll have to check Sibby's blog since PP insists on deleting even innocuous on-topic comments I have made which provide information neglected in his posts. No sense wasting time there anymore.
Steve Sibson is going after the financial news in Pierre, but otherwise, he is still searching for truth in all the wrong places.
Pat spends more time deleting, excluding and defending these days: curious that he even allows comments at all anymore.
"Wait a minute. What did Jackley know and when did he know it?"
Or perhaps better, "When will Jackley know anything?"
Does anyone know who the outside agency is that is doing the investigation Governor D ordered for GOED? Are they investigating themselves? Are there forensic auditors looking at all transactions?
If not there should be. It's no secret that the governance of our state is incestuous, what will the Governor do to ensure we know the truth and not just information that is convenient for those who run the state?
Marty Jackley might want to just turn the whole investigation over to the FBI and let them sort it out. We'll see if he is committed to his oath or the SDGOP.
Marty Jackley says in the KELOLAND story that former Governor Rounds "was not, and is not, the target of the state investigation into the office of economic development."
Two things. First, the GOP clique will take care of their own. Secondly, he specifically did not mention Federal investigation.
Jackley has proven his view of the law and justice is dictated by the party.
In a state so dominated by so few, I would think he would invite the Feds to handle this at every level.
Need to be convinced that Jackley isn't trying to protect Rounds? Notice in his quote that he didn't refer to the cabinet level department by it's actual name. It is the "Governor's Office of Economic Development."
I don't believe that he just conveniently forgot that little fact.
How soon before the Daily WashingtonDC Claptrap yells SQUIRREL again.
Or maybe he'll mess up and yell SOLYNDRA and expose even more hypocrisy in the SD GOP.
BTW, why did Cory have to find the pictures of Governor Rounds with the EB-5 Chinese investors a Chinese news site. Why didn't the former Governor Rounds alert the media of the photo op with this beneficiary of Rounds largesse?
Who was his press secretary then? Maybe they can explain why they kept this aspect of the story away from the state's media that the citizens have to trust on to report 'on' the government and not 'for' the government.
Wait just a doggone minute. When Jackley said "Rounds was not, and is not, the target of the state investigation into the office of economic development."
What he's saying is "I'm" not investigating him...wow...seriously. The reporter didn't pick that up?
Maybe the next time a media person is given access to Jackley they should ask him why his office is not and has not investigated this.
Jana I'm well thank you. But for now everyone is speculating and I don't want CAH getting after me as he did for the birther speculation we all had fun with concerning President Obama; so I am not going to be joining in here.
I'll share one thought though.
When I met with Richard Benda at NBP he was gracious, honest, articulate, and looking forward to having a weekend with his daughter. A father is dead and his child is in shock. Please everyone show some respect for this person.
Free Pat Powers!
Could it possibly be that Jackley is being coy about this because he too is under investigation?
Often times it is the cover up and lies that nail politicians, it seems to be a pattern.
The Rapid City Journal only posted the two AP stories on this and will not post my comments. Do Mercer and Powers have that much influence over the Journal?
Charlie, you're damn right a public servant, man, father and friend is dead and the SD AG won't even investigate the man and the office who is central in the case?
BTW. Were you aware of the EB-5 visas being granted? What did you know about the loans of taxpayer dollars to NBP. Correct me if I'm wrong, but weren't you a lawmaker entrusted by the citizens of South Dakota during this period of time?
Charlie is right. A man is dead, but the silence isn't out of respect for Mr. Benda it is driven by CYA by everyone involved.
I would think that out of respect, there would be at least a little effort and introspection from the legislators, current Governor, former Governor and GOP to get to the bottom of this.
I hear ***crickets***
is janklow still dead?
I wonder if Rounds or any other members of the SD GOP boys club went to Benda's funeral? That's the least they could do. Does anyone know?
As far as I understand no one of any political significance went to his funeral. Rounds, nor Dugaard attended.
Charlie, I think you know that I find you mostly gracious, honest, and articulate. I respect you for, among other things, your willingness to come here, speak your peace, and take some guff. Nonetheless, if I learn you've damaged the public trust, I will call you on it, dead or alive.
That said, since we are talking about a public figure, can you define for me the parameters of the respect you're calling for, Charlie? Does it mean not talking about an official investigation of programs the man oversaw? Does it mean not discussing the suspicious circumstances of a death about which the county and state's silence only heightens suspicions? Does it mean not trying to figure out and fix what might be wrong with our state government? What is the practical expression of the respect you seek for Mr. Benda, Charlie?
Sibby. Dang. Sibby is on the job with two worthwhile posts on the GOED/EB-5/NBP investigation:
http://sibbyonline.blogs.com/sibbyonline/2013/11/i-found-the-south-dakota-regional-center-dairy-case.html
http://sibbyonline.blogs.com/sibbyonline/2013/11/so-will-this-economic-development-controversy-teach-troy-jones-a-lesson-on-how-the-new-world-order-w.html
O.K., one and a half worthwhile posts. Just skip the "New World Order" stuff.
Jackley says that Rounds is not the center or a part of the investigation, but what is the Feds position on this? Why are the Feds involved? The Feds are either involved to investigate State corruption or to inquire about irregularities in the bankruptcy filings for Northern Beef Packers, which could also lead to State corruption charges as well given the relationship between NBP and the Rounds administration. The EB-5 program is merely a financial conduit, which a bankruptcy filing could shed light on and how it may have been used in a "creative" way.
The State investigation appears to be narrow in scope with them zeroing-in on the Office of Economic Development, while the Federal investigation starts from a point of Federal jurisdiction, like bankruptcy, leaving the eventual findings to potentially be broader than the current State investigation suggests.
When one considers that Senator Johnson was failing in the polls last Spring to Rounds, and now Johnson's son is the lead Federal prosecutor, the political inertia is there for a broadening and in-depth investigation, which could easily go beyond Jackley's claim over the scope of the current State investigation.
Wow! Excellent and very damning information in those links. 3 cheers for that Miami attorney. Go!
Actually, Deb, if the lawsuit Sibby tracked down is the one I'm thinking of, it was dismissed when all parties withdrew or settled. I need to review....
The state is not investigating Mike Rounds, said Rounds appointee Marty Jackley. 'Nuf said. Keep an eye on the feds.
Mike, at peril of probing too far, from whom do you hear no one higher up attended the funeral?
But note that David Newquist talked about this lawsuit back in 2012: http://northernbeacon.blogspot.com/2012/02/trouble.html
It was filed in October 2011, dismissed in 2012.
It is my understanding that on the day of Benda's funeral, quite a number of federal interviews were being conducted with various people involved in this saga. That may explain the lack of attendance at the funeral.
Hmm... do the feds have no respect for the dead?
It sounds as though the feds may have more respect for the dead than the South Dakota state does.
I understand that you need to be careful when speculating on this type of case. However when all of the evidence is pointing towards something more then what is being told, you need to speculate and investigate. Something is there, whether Rounds and Daugaard is involved is besides the point.
I don't buy that, Amy. The pro-life candidate Rounds not attending a funeral to honor a man that worked in a prominent position under him is more likely a political decision. Stay away from the media, do not be seen at the funeral, too risky.
Especially when our most honorable Mary Jackley vocalized to the media that his GOP boys club president - err -Rounds - was not at the center of the investigation.
Marty Jackley
Cory I have been punched often in this ugly business of politics and know my meaningless value in the truly big scheme of things. But I'm just smart enough to figure out what I can win and not win and have to date never lost anything I've ran for. I'm not going to argue the points of contention the Feds are obviously persuing in the NBP eB5 program (Who has seen court documents charging anyone with anything?) but the whole matter appears politically driven. Cory if you or I were charged by a teen age girl with improper advances and then in court we were found to be innocent, a large percentage of the public would assume forever that we were guilty and our reputation would be damaged. On some certain level the players involved here are falling under that same scenario which apparently for Republican haters is all that matters. Surely an isolated incident of improper activity may have occurred by someone involved in the NBP's business model but charging everyone with guilt just by association is slanderous and shameful.
I don't see where there is a charge that EVERYONE is being accused of improper conduct. But when a man is found dead, and shortly thereafter is found to be under investigation by the federal authorities, it raises suspicions on how business is done in Pierre, Mr. Hoffman. I for one highly doubt there I some "grand conspiracy". However, if misdeeds occurred under Mike Rounds administration, then Mike Rounds owns it. The buck stops at the top. That goes for republican or democrat, from watergate to behngazi, IMHO.
Isolated incident, Charlie? Even if it's just NBP, we're talking millions of public dollars lost, lots of workers not getting paid, a federal immigration program abused, and a good business plan wrecked by greed and incompetence.
And then there's the Veblen dairy violating environmental regulations and screwing local suppliers.
And then there's Dakota Provisions, the Huron turkey plant, with immigration issues and a police chief fired for blowing the whistle on them. How's their business model?
And then there's Richard Benda.
This doesn't feel like an isolated incident. This doesn't play like one legislator flirting with an intern. The EB-5 program feels like a big pot of money that no one has been watching closely enough and that has led a lot of characters to questionable actions.
Just an observation, if this scandal (and yes, that's what it's looking like more and more) was happening in MN, I'm pretty sure MPR would have covered it on the Daily Circuit (an hour long daily news program that covers state and national events in detail) by now. I looked all through the SDPR website and there's no mention of the NBP Feds investigation anywhere, not even Dakota Midday. If I was still living in SD, I would be demanding why it's not being reported. Has anyone found any reporting of it on SDPR anywhere?
http://minnesota.publicradio.org/features/npr.php?id=206884484
MPR is even nice enough to educate us on state corruption. Cory, you'll find this interesting. A study on state corruption found that states with isolated city capitals have been found to have more corruption than states with less isolation. Definitely fits in with the nice and cozy geographical location of Pierre.
Thanks, Jenny!
Pierre, Aberdeen, Huron -- all far away from major media scrutiny.
Aberdeen was especially hurt badly by this scandal. Would be interesting to just sit in a cafe there all day long and listen to the coffee talk. Could be revealing.
Consider for a moment that the AG's office had/has the constitutional duty providing legal advice to the office of the governor and the GOED. Consider whether it may be a conflict of interest for the AG's office in the context of such advice, if any was given, should have been given, for the same AG's office to 'investigate' on the same or substantially similar subject matter. If so, we may anticipate results of any such investigation may read, 'nothing to see here folks, move along.' We likely need the feds to investigate the entire kit-and-caboodle.
Jenny, I happen to entirely agree with you. I was only stating that I know for fact there were individuals being questioned on that day.
PP has to pooh pooh this, or he might not get another fistful of mike's war chest. He further sets himself up to ignore the story by suggesting that if there were to become a worthwhile story, it might all be adequately covered by the mainstream media. PP, remember when you thought you were a journalist? He should change his motto to: DWC - No. 1 in the No. 2 business.
Now KELOLAND brings us this.
http://www.keloland.com/newsdetail.cfm/sd-cancels-contract-with-eb-5-center/?id=155498
It would be good to see the history and the state officials who were behind this and the legislators who shepherded the funds to support the center.
If the powerful in Pierre didn't know about this, why? How long has the administration had oversight of this center? I know they are working overtime to run away from the problem, but they are ultimately involved and responsible. Even if it is from a level of ignorance or apathy about where and how tax payer money has been spent.
Jana: huge!
Amy: which ones? Where? About what? What did you hear?
Charlie Hoffman, as a representative of the citizens of South Dakota, will you commit to empaneling a legislative investigation and hearing on this issue?
Will you or any of your counterparts in the GOP have the courage to publicly call for a full forensic audit of the Governor's Office of Economic Development?
Not to pick on Charlie...sorry Charlie.
We should first call on the Governor to convene a public hearing on this matter.
While we wait for his staff to ignore this request, everyone should be asking their own elected representatives to push for this action and a full public hearing on what has transpired and why it was allowed to happen without the full knowledge of the legislature.
Jana, if there's a public hearing, I'm going to work overtime so I can buy a plane ticket. I want a front row seat.
And indeed, at what point does this sort of suspicious activity rise to the level of warranting an independent investigation by the Legislature? Can we even do that kind of thing in South Dakota, something comparable to the Iran-Contra hearings back in 1987?
Cory - I don't havs details on that; frankly I'm cautious about knowing much right now, so I didn't ask . The source was Hellwig.