Last updated on 2018.06.13
The Legislature's Government Operations and Audit Committee submitted several questions to former Governor Mike Rounds concerning his involvement with the illegal activities conducted by his EB-5 coordinator Joop Bollen. The second set of questions ended with this query:
When you were served legal matters of the Darley petition in July of 2009 to force South Dakota into arbitration because of Joop Bollen's actions, why didn't you fire Joop Bollen and why didn't you initiate legal action against SDRC, Inc. which had pledged to hold harmless and indemnify the state of South Dakota? [question from Senator Larry Lucas, sent by Senator Larry Tidemann, chairman, Government Operations and Audit Committee, letter to Mr. Michael Rounds, 2014.09.16]
The governor's office "was not served". The BOR was. See #3 and the letter to GOAC dated June 16, 2008 regarding your personnel questions [M. Michael Rounds, response to GOAC, 2014.09.22].
Rounds's recollection appears to have faltered.
On July 23, 2009, Bob Duncan, agent for American Legal Support Services, Inc., filed a Proof of Service of Summons, attesting under penalty of perjury that he served several documents, including a notice of hearing on October 14, 2009, at 9:30, relating to Darley International LLC vs. South Dakota International Business Institute, on "Mike Round, Governor" at 500 E Capitol Ave, Pierre, SD. The document says Duncan left these papers with "Nyla Navotony, Assistant to Governor" (actually Nila Novotny) on July 14, 2009, at 3:30 p.m. and informed her of the general nature of the papers. Duncan also mailed copies of these papers to the Governor on July 22, 2009, from Los Angeles. Duncan indicates his fee for this service was $145.
Mike Rounds says he was not served in Darley v. SDIBI. The official proof of service says Mike Rounds was served.
We've already discussed that one of the state's primary arguments against Darley's initial suit against SDIBI in federal court was that Darley failed to serve the Governor and the Attorney General, the only officials authorized to receive service in lawsuits against the Board of Regents. We've already discussed that when Darley wound up for a second legal pitch in Los Angeles Superior Court, it was highly unlikely that Darley would make the same mistake.
Now we have the documentary evidence that, yes, Darley served Governor Rounds.
We also have documentary evidence that Mike Rounds made at least one false statement to the Legislature's Government Operations and Audit Committee.
The next logical question for a duly inquisitive Government Operations and Audit Committee should be, Mr. Rounds, how many more false statements have you made to us?