Chairman Pat Mullins letter to Chairman Judd:
On Wednesday, October 9, 2013, I became aware of a news report in the Providence [RI] Journal that said “Former Democratic National Committee Chairman Terry McAuliffe” was “among those who invested with Cranston estate planner Joseph A. Caramadre.”
The report goes on to say that federal prosecutors “cast Caramadre as the mastermind” of an approach to steal identities of terminally ill people and use that information to purchase investments that Caramadre and his clients profited from when those people died.
As disturbing as this entire scheme is, I’m writing to you today to inquire whether Terry McAuliffe’s investment in this despicable practice should have been disclosed on his statement of economic interests (SEI) in 2009.
The list of Caramadre’s clients that was released on October 9th indicates that the application date for a security purchased on Donald Duarte’s life and owned by Terry McAuliffe was December 20th, 2006.
According to the terminally ill individual’s obituary, he died just three weeks later, but McAuliffe did not receive the money from the death-put bond until 2009.
This indicates that McAuliffe’s investment was current in 2008, thus falling within the reporting period for his SEI filed with the Secretary of the Commonwealth in 2009.
My review of McAuliffe’s statement of economic interest available online via The Virginia Public Access Project’s website (www.vpap.org) finds no listing for any type of security related to this investment.
Importantly, the list of Caramadre’s clients includes both the names of both individuals and corporations. McAuliffe is named individually on that list.
That leads to the conclusion that his investment with Caramadre would not be owned by one of McAuliffe’s other business interests listed on his SEI. Additionally, it is clear that Caramadre’s company was operating in Virginia as McAuliffe is a resident, and other transactions potentially including pooled investments involved Genworth Financial of Richmond, VA which is one of the insurance companies Caramadre regularly dealt with.
Furthermore, according to the indictment, “Caramadre entered into profit-sharing agreements with some… outside investors.”
McAuliffe has not explicitly admitted to such an arrangement, but the evidence suggests that he could in fact have one. McAuliffe’s campaign has said that it donated $74,000 to the American Cancer Society.
Of that, $27,000 came from the campaign and the remaining $47,000 came from McAuliffe personally. $47,000 is the profit from what his spokesman told the Wall Street Journal was a $33,000 investment.
If McAuliffe invested $33,000 and profited $47,000, then he should have received a check for $80,000. However, under an itemized section in the 2011 federal indictment under “mail fraud,” is a check for $113,057 from Midland National to Terry McAuliffe.
Either McAuliffe invested or profited more than he has admitted, or he must have had a profit-sharing agreement or investment pooling arrangement with Caramadre that covers the remainder of that check. Such an agreement is effectively a partnership, security, or so-called death-put bond and therefore would necessitate SEI disclosure.
Based on this clear discrepancy in the amounts of investment and profits versus the check received, it’s clear that McAuliffe was involved in other transactions with Caramadre. One possibility may be that McAuliffe received referral fees for passing on the names of terminally ill individuals to Caramadre. Presumably, if in excess of $10,000, these referral fees should constitute wages that are required to be disclosed on his SEI.
Finally, though it seems to conflict with the record established above, McAuliffe has maintained that he was a “passive investor” in bonds or securities of some sort. I will admit that I’m not familiar with these types of investments, but should McAuliffe be telling the truth, wouldn’t such a security or bond need to be disclosed?
I am asking the State Board of Elections to investigate this matter. Though not nearly as troubling as McAuliffe’s participation in profiting for the demise of the terminally ill, it appears that he attempted to conceal the agreement mentioned above by intentionally filing an incomplete SEI.
I am aware that this is a very serious matter and that Election Day is just three weeks away, but I urge the Board to investigate and report with great urgency as Virginia voters deserve to know the truth.
Pat Mullins, Chairman
Republican Party of Virginia