Last updated on 2014.09.09
Word of the day: Capone!
Remember how last November I mentioned that EB-5/Northern Beef Packers scandal fulcrum Joop Bollen might have broken the law by lending money without a license and not paying bank franchise tax? I elaborated on that tax-evasion thesis last week.
And now Brown County Commissioner Tom Fischbach thinks there might be some there there:
Tom Fischbach wants his fellow Brown County commissioners to consider a resolution that might allow the county to collect $1.76 million in bank franchise taxes.
...SDRC Inc. doesn’t have a money lending license to legally make loans and does not pay the bank franchise fees, according to the resolution.
In that vein, the resolution said, SDRC Inc. “may have defrauded South Dakota of $2.4 million in bank franchise tax avoidance with a $480,000 ongoing annual tax avoidance.”
The bulk of the overall total would be owed to Brown County, according to the resolution [Scott Waltman, "Fischbach Calls for SDRC Investigation," Aberdeen American News, 2014.09.03].
Fischbach says he isn't sure whether SDRC Inc. qualifies as a bank, but his resolution asks the South Dakota Banking Commission to figure that out for us. Fischbach sprang the resolution on his fellow commissioners unannounced yesterday, so commissioners told him to keep his pants on until next week's meeting.
Did Joop Bollen run a bank without a license? Did Joop Bollen evade bank franchise tax? Those questions aren't just academic or blogospheric scandal-mongering. Those questions can tell us whether Joop Bollen, acting under the authority of Governor Mike Rounds and Governor Dennis Daugaard, cheated Brown County and South Dakota out of another couple million dollars.
I think those questions are worth answering. So does Commissioner Fischbach.