GOP Primary Pits Anti-Middle Class Republican Against Anti-Middle Class Republican

From Michigan Democratic Party:

Tomorrow’s Primary Election Doesn’t Matter Much — With Either Hoekstra or Durant, GOP Will Have Candidate with a Dogmatic, Out-of-the-Mainstream Ideology that Will Hurt Michigan Families

LANSING – Tomorrow’s GOP primary will finally determine whether Pete Hoekstra, an ex-Congressman who currently works at a Washington lobbying firm, or Clark Durant, a former Senate and Supreme Court candidate and currently a private school executive unlawfully collecting salary through a sham charity, has been more successful at appealing to the most out-of-the-mainstream elements of their party — and which will carry an agenda that will harm Michigan’s middle-class families into the general election.

As columnist Kyle Melinn wrote in his column last week, Hoekstra and Durant’s campaigns have been focused more on who can pander to the Tea Party the most than mounting a credible challenge to Stabenow. But starting Tuesday night, the winner will have to explain to general election voters why they support plans that would raise taxes on middle-class families, end Medicare coverage, do away with federal student loans and laws to help ensure fair pay for women. Hoekstra will also have to explain his plan to create a new government agency that would have CIA and FBI agents investigating presidential birth certificates, and Durant will need to explain his belief that public education is similar to slavery and that the income gap between the wealthy and the middle class “should be wider.”

“Clark Durant and Pete Hoekstra are two peas in the same out of touch pod,” said Mark Brewer, chair of the Michigan Democratic Party. “No matter who wins tomorrow, the Republican candidate will have an agenda that further rigs the rules for well-connected special interests, rather than fighting for middle-class families, stopping outsourcing or protecting Medicare and Social Security.  Hoekstra and Durant have both made very clear they are more concerned with a severely out-of-touch ideology rather than with doing what’s right for Michigan families.”

Of the one and only GOP debate, columnist Tim Skubick agreed on Friday that Hoekstra and Durant are “peas in a pod” and ruefully explained that in their only televised debate the candidates succeeded only in displaying how similar their agenda really is.

The phrase “middle class” was not mentioned a single time by either candidate during the course of the debate.

Michigan GOP candidate allegedly siphoned off 95 percent of charity’s money

By Eric W. Dolan/Raw Story

The Michigan Democratic Party has accused Republican Senate candidate Clark Durant of illegally profiting off a “sponsor-a-child” charity.

The charity, Genesis Foundation, was created to provide tuition for children attending Cornerstone Schools, a system of nonprofit schools Durant co-founded in Detroit. But tax returns showed that about 95 percent of all funds donated to the charity go directly to Durant and his daughter, Hope Durant Loomis.

“For that reason it does not appear that this Foundation is organized and operating as a tax-exempt charitable organization,” attorney Tammie Tischler explained in an IRS complaint filed on behalf of Democrats Monday. “Contributions come in from two donors and go directly to Mr. Durant and Ms. Loomis as compensation for program services.”

She said the Genesis Foundation “appears to be a complete sham organization.”

“Non-profit law prohibits the use of charitable assets for the private interests of founders, family members and board members,” Tischler concluded. “This is a blatant violation of the laws governing non-profit organizations.”

Under federal tax laws, charitable organizations are prohibited from being used for the benefit of private interests, such as profiting the organization’s creator. Those found to be in violation of the ban on private inurementcan face a 25 percent excise tax — which would amount to nearly $1.75 million for Durant. In cases where the charitable organizations has abandoned its charitable purpose, the organization can lose its tax-exempt status.

Michigan Democrats filed the complaint after the Detroit Free Press reported that Durant earned nearly half a million dollars per year.

“Clark Durant claims to be a rebel with a cause, but it turns out he’s siphoned off $1.4 million from a charity originally created to help Detroit kids afford school,” Michigan Democratic Party chairman Mark Brewer said. “It’s clear the only cause Durant cares about is his own. A man who unlawfully abuses charities and foundations for personal gain is not the kind of ‘rebel’ Michigan families need.”

Durant has claimed the allegations are baseless. He said the charity’s work had been “vetted by national attorneys.”

Durant, former U.S. Rep. Pete Hoekstra and Randy Heckman are all seeking the Republican nomination. Whoever wins the August 7 primary election will face incumbent Sen. Debbie Stabenow (D) in November. On Thursday, Durant was endorsed by the Tea Party Express.

“We are proud to support Clark Durant because he represents the best of what the tea party movement stands for,” Tea Party Express Chief Strategist Sal Russo said. “Not only is he committed to reducing the size, cost and intrusiveness of the federal government, but he also supports the pro-growth policies that will restore American prosperity.”

Clark Durant and Daughter Siphoning Funds Through Sham Charity

From The Michigan Democratic Party:

Over 95 Percent of “Charity’s” Funds End up in Durant, Daughter’s Pocket; MDP to File IRS Complaint and Call for Investigation

LANSING – According to publicly available records, Clark Durant and his daughter are unlawfully misusing a charity connected to Detroit’s Cornerstone Schools for their own personal gain. The charity, Genesis Foundation, was originally formed to help educate children in Detroit, but the Detroit Free Press found that in recent years the charity has done little other than pay Durant and his daughter exorbitant compensations. Subsequent to the Free Press story, the MDP has found that 95 percent of the charity’s funds go directly into Durant family pockets.

KEY FINDING:

From 2009 to 2011, Durant and his daughter siphoned almost $1.4 million from the Genesis Foundation, a private charity founded in 1991 by Durant as a “sponsor-a-child” organization to help children in Detroit afford private school.

Statement from Mark Brewer, Chair of the Michigan Democratic Party:

“Clark Durant claims to be a rebel with a cause, but it turns out he’s siphoned off almost $1.4 million from a charity originally created to help Detroit kids afford school. It’s clear the only cause Durant cares about is his own. 

“A man who unlawfully abuses charities and foundations for personal gain is not the kind of ‘rebel’ Michigan families need.”

Legal finding from Tammie Tischler, an independent attorney specializing in non-profit and tax law:

“Based on the documents we have reviewed, The Genesis Foundation appears to be a complete sham organization used for the single purpose of paying Clark Durant and his daughter, Hope Loomis, more than $600,000 per year. 

“Large donations are made by two donors, and the tax returns show those funds go directly to Durant and Loomis in the form of compensation. Non-profit law prohibits the use of charitable assets for the private interests of founders, family members and board members. This is a blatant violation of the laws governing non-profit organizations.”

MDP LAUNCHES WEBSITE TO CHRONICLE DURANT’S ABUSE:

The Michigan Democratic Party today launched a website, www.ClarksCharityScam.com, to chronicle Durant’s history of charity abuse. Durant’s personal financial disclosure documents and publicly available non-profit filings can be found on the website.

DURANT’S VIOLATIONS OF THE LAW:

Durant and his daughter’s actions are unlawful with respect to at least two laws governing the behavior of charities and, specifically, private foundations.

• Self-Dealing: The first is “self-dealing,” which involves the payment of compensation by a private foundation or charity to “disqualified persons.” Durant and his daughter both fall into the disqualified person category because of Durant’s position as President and founder of Genesis.
• Private Inurement: The second violation is “private inurement,” which prohibits the use of charitable contributions for the benefit of individuals associated with a foundation. The compensation Durant and his daughter receive violates private inurement laws.

PENALTY FOR BREAKING TAX LAW:

• The IRS can impose an initial penalty equal to 25 percent of the unlawful compensations, as well as require Durant and his daughter to repay Genesis Foundation the full amount they have unlawfully taken. If Durant and his daughter do not repay the foundation within the time frame set by the IRS, Durant and his daughter would be subject to an additional penalty equal to 200 percent of the prohibited compensation. [IRS, Taxes On Self-Dealing, accessed July 16, 2012]
• Further, organizations that engage in this unlawful behavior can be stripped of their non-profit status. [Board Source, accessed July 11, 2012]

GENESIS FOUNDATION TIMELINE:

The “sponsor-a-child” foundation was inactive from 2001 to 2008. In 2008 Durant reopened Genesis with a new mission. Genesis now exists for the sole purpose of compensating its founder and President, Clark Durant, and his daughter, Hope Durant Loomis. According to records, 95 percent of Genesis Foundation revenue has gone to Durant and Loomis, in a gross violation of non-profit and charity law.

Read Tischler’s opinion by visiting the following link:

http://www.michigandems.com/tischleropinion.pdf