New Koch problems for Cain?

There are more potential legal headaches for Herman Cain’s presidential campaign: The Internal Revenue Service is being asked to investigate allegations that the Cain campaign’s chief of staff improperly used $40,000 of funds from a tax exempt non-profit to pay for private jets, travel and computers for Cain’s presidential campaign. 

In a written complaint being filed today, the Center for Media and Democracy -- a Madison, Wisconsin based watchdog group -- charges that leaked financial records show that Block used a non profit group, called Prosperity USA,  to improperly pay Cain campaign expenses. If verified, the group says Prosperity USA – which was founded by Cain’s chief of staff Mark Block -- should be stripped of its tax exempt status.

“A charity founded by Mr. Block appears to have fronted tens of thousands of dollars to a political  campaign that was led by Mr. Block … This requires an investigation by the IRS into the charity’s activities and expenditures,” said Lisa Graves, the executive director of the Media and Democracy Group in an eleven page letter to IRS Commissioner Douglas Shulman.

The Cain campaign did not immediately respond to a request for comment Monday morning. The campaign’s lawyer last week told NBC News that the Cain campaign takes the allegations “very seriously” and had hired an outside counsel to review the issue ... The Center for Media and Democracy’s  letter is the second legal complaint in four days triggered by the publication of Prosperity USA internal financial records by a blogger, Dan Bice, who writes for the Milwaukee Journal Sentinel.  The IRS will investigate such complaints, but the probes – which can result in fines and a denial of tax exempt status – can often take years before they are resolved.  (On Friday, the Citizens for Ethics and Responsibility filed a complaint alleging election law violations with the Federal Election Commission.)

The leaked  records appear to show repeated financial dealings among Prosperity USA, the non profit headed by Block, the Cain campaign, and Americans for Prosperity -- a major political advocacy group founded by oil billionaire David Koch.

Koch, together with his brother, Charles Koch, have pumped tens of millions of dollars into conservative causes in recent years and are widely credited with helping to spawn the emergence of the Tea Party.

Cain, who used to serve as a paid speaker for Americans for Prosperity (AFP), has not shied away from his relationship with the Koch brothers. In a speech at an Americans for Prosperity Conference on Friday, he declared himself the Koch brothers’ “brother from another mother”-- a line that got a boisterously enthusiastic response from the  AFP activists at the Washington Convention Center.

But the legal complaints could turn Cain’s Koch connection into a problem for the candidate, even as he struggles to recover from last week’s sexual harassment allegations. (A spokesman for AFP last week said the group was reviewing unspecified “financial dealings” it had with the Cain presidential campaign).

Prosperity USA was one of a number of Wisconsin groups -- all with the name “prosperity” -- that Block started during a period he was serving as the executive director of AFP’s Wisconsin chapter. Entries from the leaked financial documents appear to show AFP funds flowing into Prosperity USA that were then used for the benefit of Cain’s campaign:  “From AFP- H.Cain travel- Hill Aircraft,” one of the entries reads.

Non-profits like AFP and Prosperity USA are barred by law from contributing to presidential campaigns. The Center for Media and Democracy’s letter to the IRS commissioner notes that Block has previously been fined for election law violations and was barred from participating in Wisconsin politics for three years.

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Your version of truth is a little disturbing.

    Reply#27 - Mon Nov 7, 2011 2:01 PM EST

    Read Machiavelli's the Prince. We have an African American president - so in opposition to that you set up an incompetent African American, and then encourage people to transfer their perceptions your incompetent African American - to your opponent. That's what hiring an African American to head the GOP was all about, and running Hermain Cain was all about. I wouldn't be surprised if all the bad stories about Cain are coming from his "brothers" the Koch boys.

    • 2 votes
    Reply#28 - Mon Nov 7, 2011 2:24 PM EST

    If Cain was ever a serious candidate he would have had staff in place in Iowa and New Hampshire. He never did. His campaign COO( that cool guy on the smoking ad) was a Koch employee who was BANNED from involvement in campaigning for a three year period due to voter fraud.

    Mr Cain is a motivational speaker and author who has run for office but never won. He had planned on taking 30 days off to promote his new book but his popularity caused him to combine his book tour with "politicking."

    We now have four woman who have stated he sexually harassed them. I can see one liar but now four, two of which were paid off to shut up.

    Its all a joke and the REPUKES dont seem to understand it makes their party a joke.

      Reply#29 - Mon Nov 7, 2011 3:12 PM EST

      T H E Y, S I M P L Y, D O N O T C A R E.

        #29.1 - Mon Nov 7, 2011 3:26 PM EST

        Cain is a dyed in the wool -- Libertarian. Nothing more. Read this:

        Libertarianism is advocacy of the maximization of individual liberty in thought and action. However, those who call themselves libertarians do not advocate any single or set of principles. They may be libertarian socialists, anarchist-socialist or anarcho-capitalists, supporting or opposing property rights. Some libertarians are Christian fundamentalist. Libertarians may embrace a variety of beliefs about political structures ranging from minimization of the state to complete abolition of the state. Others also seek complete elimination of any hierarchical imposition of authority and therefore oppose capitalism and other institutions viewed as coercive. The Encyclopedia of Philosophy describes the minimal state as providing law enforcement, a judicial assembly, and armed forces, and, also describes the anarcho-capitalist view which holds that a government is unnecessary because private companies working for profit should provide the court systems, military, and police forces.

        Note: Anarcho-Capitalist. Koch Brothers?????

        Note: Cain is not the ONLY Candidate to be behooving to the Koch Bros. The MAJORITY of the other Candidates are ALSO.

        • 1 vote
        #29.2 - Mon Nov 7, 2011 3:40 PM EST
        Reply

        The infamous Koch Brothers should be thoroughly investigated by the U. S. Government (FBI, NSA, DHS, and the CIA) for their supposed involvement with trading with black balled Countries such as Iran and, possibly, North Korea and with any other Country hostile to the U. S. Interests. If found true, all of the holdings should be confiscated and those within the Koch Empire should be arrested and charged with TREASON.

        Additionally, all Candidates (all Parties) should be investigated along with those of latter years, Congressmen, included, for collusion with the Koch Brothers in influencing past and present Laws and Regulations and their collusion in possible new Laws. The Koch Brothers are the main players in the bid to repeal present Agencies such as OSHA, EPA, FDA, etc. and in the push to nullify such acts as the Minimum Wage Stature.

        Why??? Because they have lost millions in fines to those Agencies for environmental violations, safety practices, etc. over the years.

        • 3 votes
        Reply#30 - Mon Nov 7, 2011 3:24 PM EST

        There is something about a Koch/Cain relationship that is just not right.

        • 4 votes
        Reply#31 - Mon Nov 7, 2011 3:30 PM EST

        See my comments!!~!!!~

          #31.1 - Mon Nov 7, 2011 3:48 PM EST
          Reply

          More fun and games from this sad little man running for President.

          • 2 votes
          Reply#32 - Mon Nov 7, 2011 3:31 PM EST

          Not just him! ALL of the CANDIDATES are behooving to the Koch Bros.

          • 1 vote
          #32.1 - Mon Nov 7, 2011 3:52 PM EST

          Not President Obama. :)

          • 1 vote
          #32.2 - Mon Nov 7, 2011 6:16 PM EST
          Reply

          “…The Internal Revenue Service is being asked to investigate allegations that the Cain campaign’s chief of staff improperly used $40,000 of funds from a tax exempt non-profit to pay for private jets, travel and computers for Cain’s presidential campaign…”

          Please tell me it “Taint So, Honey…” another crooked political campaign? Please tell me it “Taint, So...”

          Heaven help us, the next thing we'll probably hear is that Cain gave orders to skimp on the cheese and pizza sauce while CEO of Godfather's pizza chain.

          • 4 votes
          Reply#33 - Mon Nov 7, 2011 3:37 PM EST

          Ole Wormy Hermy needs to crawl back under what ever decayed log the Koch brothers found him under.

          • 5 votes
          Reply#34 - Mon Nov 7, 2011 3:42 PM EST

          I think this is Cain's cue to get back on the podium and sing "amazing grace" again.

          • 1 vote
          Reply#35 - Mon Nov 7, 2011 3:59 PM EST

          And if the TeaPublicans do this with campaign funds, just think what they would do if they got their thieving hands on the U.S. Treasury! Just look at what the Bush/Cheney regime did.

          • 1 vote
          Reply#36 - Mon Nov 7, 2011 4:32 PM EST

          It's not so much the money spent by the candidates, it's the fact that so many citizens are swayed by it and don't actually realize what's being done to their minds. It's almost sad to watch. Almost.

            Reply#37 - Mon Nov 7, 2011 5:46 PM EST

            Isn't it interesting that some of these politicians *know* (they have to - how stupid would that have to be to not .... certainly too dumb to represent any of us) that at least a percentage of this stuff is going to be publicized. Certainly, when there is a legal settlement or attorneys are involved, it's a given that somebody is going to find out about it. And yet, when a politician looks like a deer caught in headlights or loses their cool when asked about it, you have to wonder if they are fit to serve if they can't offer a rational explanation. Especially when they have had 10+ years to prepare and are surrounded by a supposedly professional staff ... and as we see from this story, paid for by large pools of corporate cash. This guy just ain't ready for prime time - unless it's a cable talk show.

              Reply#38 - Mon Nov 7, 2011 6:43 PM EST

              He is a write-off for the Koch. Who is Herman Cain? And the jeopardy answer is correct.

              • 1 vote
              Reply#39 - Mon Nov 7, 2011 10:50 PM EST

              Cain is the Koch brothers version of Pinocchio. I will let you fill in what part of his body is growing.

                #39.1 - Tue Nov 8, 2011 8:28 AM EST
                Reply

                So Herman Cain and Rick Perry were having a spelling contest. Perry won because Cain thought harass was two words.

                • 2 votes
                Reply#40 - Mon Nov 7, 2011 11:37 PM EST

                Bravo, good play on words.

                • 1 vote
                #40.1 - Tue Nov 8, 2011 8:29 AM EST
                Reply

                Cain is a real gem.

                There is no way on earth he is getting elected to the presidency. He should step down now,...for the sake of the GOP.

                He is a major distraction,...a sideshow attraction,...that makes the GOP look all the more disreputable.

                • 1 vote
                Reply#41 - Tue Nov 8, 2011 7:23 AM EST

                Where in the world does the Republican party dig up these clowns from? They have reduced the presidential election to clown election. To allow two idiot brothers to shanghai the Republican party does not speak much about the Republican party in the first place. Besides, "Republican" rhymes with "Money" which rhymes with "Greed" which has a special place reserved in hell. Beware those who turns a blind eye to your fellow man while your pursue you God on Earth "money".

                • 1 vote
                Reply#42 - Tue Nov 8, 2011 8:25 AM EST

                Herman, Checkmate, there's no where to go, its time for your "Weiner Moment". Forget the back of the bus, the GOP is throwing you under the bus. Ironic that Koch ryhmes with crotch.

                  Reply#43 - Tue Nov 8, 2011 8:45 AM EST

                  When you pull back Cains curtain you will find two Oz pulling the levers.

                    Reply#44 - Tue Nov 8, 2011 9:00 AM EST

                    As someone said on an earlier post about the Koch Bros.........Fools and their money are soon parted. We can only hope that they continue to be fools. They wouldn't have anything if it were not for their father. More often than not, kids spend their inheritance like crazy because they didn't have to work for it.

                    • 1 vote
                    Reply#45 - Tue Nov 8, 2011 9:09 AM EST

                    Going down this page I laughed harder than I have In a long time...More than at colbert,stewart,maher, and some of my other favorites I am so glad for the internet in the days when the corner is gone...Growing up in philly I used to be able to get this comedy in person on the corner but like I said thanks again guys and girls..But it is a shame that these are the people running for president it makes us the laughing stock of the world because of the far right..........They actually support these candidates.

                    • 1 vote
                    Reply#46 - Tue Nov 8, 2011 10:27 AM EST
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