Wednesday, August 21, 2013

Wife of Virginia’a Gov. Robet McDonnell Bought Stock in Company Aided by Gov and Wife – She Claims Gov. Had No Knowledge of Putchase

Believe That and We Have a Bridge in Brooklyn to Sell You

The scandal in Virginia is pretty straight forward.  The Governor of the state and his wife openly and actively promoted a company in return for gifts, loans and other benefits.  Now it is purported that the Governor’s wife bought stock in the company without the knowledge of her husband.

First lady Maureen McDonnell purchased stock in troubled nutritional supplements maker Star Scientific twice in the past three years without the governor's knowledge, according to an attorney representing her in an ongoing federal investigation into ties between Virginia's first family and the company and its chief executive.

And what Mrs. McDonnell did is kinda revealing.

Bill Burck, a Washington lawyer representing Maureen McDonnell in the criminal investigation, said late Friday that Maureen McDonnell bought 6,000 shares worth about $30,000 in the summer of 2011 for herself and her children. She then sold it in December 2011 at a substantial loss, $15,000, the attorney said.

Okay then what did she do?

Then, in January of 2012, the first lady bought back the shares.

So we know two things.

  1. Mrs. McDonnell sold the stock to avoid reporting ownership at the end of the year.  She may also have been motivated to create a tax loss, and presumably did not violate wash sale tax rules, but who knows with these folks.

  1. Mr. McDonnell knew about the stock ownership because it would have showed up on the joint tax return.

Well we also know a third thing.  The McDonnell are a greedy unscrupulous couple.  But then we knew that before this latest revelation.

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