Officer's interest in public contract as misdemeanor. No public officer who is authorized to sell or lease any property, or make any contract in the officer's official capacity may become voluntarily interested individually in any sale, lease, or contract, directly or indirectly with such entity. A violation of this section is a Class 2 misdemeanor unless the act is exempted by law [South Dakota Codified Law 3-16-7].
Bollen's immediate superiors, Northern State University president James Smith and then-Board of Regents director Tad Perry, say they had no idea Bollen owned (Bollen was) the company to which he outsourced the functions of his state office. But the Rounds Administration knew of Bollen's ownership full well when it approved Bollen's privatization of the state's EB-5 visa investment program.
Try out your smell tester: suppose your local mayor bought a garbage truck and signed a contract giving his new garbage company the city's trash business. Suppose your school business manager formed a painting business and hired herself to paint the high school cafeteria. Suppose Mike Rounds had signed a contract with his own insurance company putting state employees' life insurance under his personal management. There'd be more than a partisan uproar. The press and everyone else would freak out. Employees of the state lottery get fired for doing such a thing. Public employees just don't use their public power to place money in their private pockets.
But that's what Joop Bollen did. Even if it's just a misdemeanor, Bollen broke state conflict-of-interest law, just as he broke Board of Regents policies and may have broken state banking laws. Bollen operated South Dakota's EB-5 program with obvious disregard for lots of rules...
...and Mike Rounds kept rewarding him with contracts and opportunities for cash. Mike Rounds keeps rewarding him with political cover. Why?