The Dirt Within The Clinton's Taxes. Cronies Funnel Money To Bill AND Hillary- Plus Tax Havens

There's a core of cronies giving money to both Bill AND Hillary. This may not be "illegal" but it's dirty money.

snip
The considerable crossover between the couple's decades of political fundraising and their personal profit also extended at times to the former president's charity work and his presidential library, though many records related to those remain secret. What is clear is that numerous financial patrons -- individuals as well as large corporations -- repeatedly emerge in the Clintons' circle.

Chief among them is Burkle, the founder of the Yucaipa investment firm, who not only has provided Bill Clinton with a hefty source of income during his post-presidency but also ranks as one of Sen. Clinton's "Hillraisers," a title given to those who raise more than $100,000 for her presidential bid. Burkle has held fundraisers for her at his Beverly Hills estate, and also made six-figure donations to independent political groups, such as Emily's List, that are supporting her.

The tax returns show Bill Clinton's partnership with Burkle, at various arms of his Yucaipa firm, yielding in excess of $1 million a year, starting in 2003. In 2005, Clinton collected $5 million from those investments, and more than $2.5 million in each of the past two years. The former president served as a senior adviser to the private firm, helping Burkle land investors and identify business opportunities. The Wall Street Journal reported that Clinton started to unwind the relationship earlier this year and could ultimately receive a payout worth about $20 million.

Another recurring character is InfoUSA founder Vinod Gupta, who has contributed to the Clinton library, donated money to Sen. Clinton's White House bid and hired the former president as a consultant. Last year, InfoUSA paid Bill Clinton $400,000. Legal papers that surfaced last year showed that he earned more than $3 million from the firm, which sells consumer data to telemarketers and other businesses.

The former president's speaking career also gave supporters opportunities to boost the couple's bottom line. Even as Sen. Clinton campaigned for office, her husband earned more than $10 million for his speeches. But the tax returns do not reveal who hired him to speak.

Sen. Clinton's financial disclosure forms have offered a glimpse into her husband's speaking career and the nexus between his clients and her campaign donors. The New York investment giant Goldman Sachs paid him $650,000 for four speeches in recent years. Its employees and its political action committee have donated more than $440,000 to the senator's presidential campaign, putting the firm second on the list of her most generous political patrons, according to the Center for Responsive Politics.

snip

The banking firm Citigroup, whose employees and PAC rank third among Hillary Clinton's campaign donors, with more than $388,000, paid her husband $250,000 for a speech in France in 2004. In 2006, the firm committed $5.5 million to the Clinton Global Initiative, which encourages entrepreneurship and financial education among the poor.

While the tax returns offer the most illuminating look to date at the Clintons' finances, the picture is incomplete. They sought an extension for their 2007 return and disclosed a breakdown compiled by their tax attorney.

In 2006, tax returns detail $2.65 million in income from Bill Clinton's partnership with Burkle. But Sen. Clinton's campaign did not release a separate filing known as Schedule K-1, which could reveal more income after write-offs, said Dean Zerbe, national managing director of Alliant Group tax consultants.

The Clintons' 2006 tax return shows that, through a blind trust, the couple acquired an interest of an undisclosed size in a private investment fund known as the Quellos Alpha Engine, based in the Cayman Islands. At the time, the fund was controlled by the Quellos Group of Seattle, one of the world's largest managers of mutual funds made up of hedge funds. Hollywood mogul Haim Saban is one of the biggest investors in Quellos and is also one of Hillary Clinton's most prolific fundraisers.

A 2006 investigation into abusive tax shelters by the Senate Permanent Subcommittee on Investigations reported that Quellos used offshore shell companies to engage in fake transactions that generated billions of dollars in capital losses on paper. One series of transactions, the report said, erased more than $2 billion in capital gains that would have been taxed, costing the U.S. Treasury hundreds of millions of dollars in revenue.

A Quellos official was quoted at the time as saying that lawyers had approved the transactions and that the Senate findings were unfair. There is no indication that the Clintons benefited from the transactions criticized in the report. In October, BlackRock acquired the Quellos Group. The Clintons have sold off all of the investments from their blind trust.

Should Sen. Clinton reach the White House, her husband's ability to continue to tap many of these income sources will be severely limited. From a legal standpoint, accepting money from any company that is regulated by the federal government could create problems, said Robert K. Kelner, an ethics specialist with the D.C. law firm Covington & Burling.

The tangle of relationships would make it "very complicated," he said. "I would say it's largely a question of appearances, public relations and politics, and less a matter of Hillary Clinton actually suffering any legal liability because of his action.