Religions > Atheism > GOP: The Party of Treason AND Corruption (San Diego Edition)
| Topic: |
Religions > Atheism |
| User: |
"Yang, AthD h.c, Kicking AWOLs Cocaine Snorting Ass" |
| Date: |
31 Jul 2005 12:54:05 AM |
| Object: |
GOP: The Party of Treason AND Corruption (San Diego Edition) |
$3.5 million of your taxpayer money went to a fake company thanks to
GOP congressman Duke Cunningham
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http://www.signonsandiego.com/news/business/20050729-9999-1b29contract.html
A Florida software company will ask a San Diego receivership judge
today to order an accounting of $3.5 million in federal money that
Rep. Randy "Duke" Cunningham helped a small group of political
contributors and constituents obtain through a contract with the
Internal Revenue Service.
Integrated Actuarial Services of Ormond Beach, Fla., says the Rancho
Santa Fe Republican, acting in his role as a member of the House
Appropriations Committee, pressed the IRS to pursue an auditing
project that led to a contract benefiting the San Diego group.
The group, which includes two residents of Cunningham's district,
incorporated in 1999 as First Auditors for the express purpose of
pursuing the IRS auditing contract. None of them had an accounting
background, and First Auditors had no other projects or clients.
IAS, the Florida company, claims that First Auditors acted as little
more than a shell company and used a Washington lobbyist and
Cunningham's help to win the contract. IAS also claims that First
Auditors improperly pocketed most of the money the IRS paid out in
connection with the auditing contract, despite having almost no
responsibilities under it.
First Auditors denies any wrongdoing but is resisting an audit of how
it spent the roughly $3.5 million it received from the IRS before the
agency decided not to renew the program earlier this year.
The cancellation came against the backdrop of IAS complaints to the
IRS that First Auditors was not making payments to IAS. The software
company had developed the specialized actuarial software needed to
complete the contract and, acting as a subcontractor, was doing all of
the work, including training, updates and support.
Kenneth Noorigian, a San Diego bankruptcy attorney and one of three
principals of First Auditors, said the company had assumed all the
risk and had borne the cost of waging a lobbying effort in Washington
to create the federal program.
An undetermined amount of the $3.5 million the IRS paid First Auditors
under the contract went to cover lobbying expenditures, legal fees and
travel costs incurred by First Auditors before the contract began, he
said.
First Auditors relied on loans and investors until 2003, when it
received its first disbursement under the IRS contract. It geared its
activities during that time toward building support in Congress and
the IRS for the auditing program that led to the contract.
After the IRS canceled the program and the contract, First Auditors
went into receivership. Today, IAS will urge receivership Judge John
Meyer to find out how First Auditors spent the taxpayers' money before
he closes the books on the company and its finances.
"There will be no final resolution of this until we find out where the
money went," said IAS Vice President James Kavanagh.
Kavanagh, a software writer, and his brother Brian, an actuary,
developed the actuarial software that is the basis for the program and
the contract. They are former residents of Coronado.
Cunningham, who wrote at least five letters to the IRS commissioner
between 2001 and 2003 urging the agency to sign a contract for the
program, wasn't available for comment. But his attorney, Lee Blalack,
who said he knew nothing of the project, said he was certain his
client would support an accounting by the judge.
"If public money is involved, then I am sure he would support an
accounting," Blalack said of Cunningham. "It's like asking if he
supports apple pie."
First Auditors' three principals and their Washington lobbyist donated
a total of $11,600 to Cunningham's campaign and political action
committee between 2001 and 2005.
Of the principals, Noorigian gave Cunningham's campaign $5,500. San
Diego attorney Michael Dicks contributed $2,000 to his campaign and an
additional $1,500 to his leadership PAC, American Prosperity PAC, and
Irwin Mandel gave Cunningham $1,000. Lobbyist Stephen Amitay, who
masterminded First Auditors' lobbying campaign, gave him $1,600.
Among the letters Cunningham wrote to two successive IRS commissioners
on behalf of First Auditors was one to Charles Rosotti dated May 16,
2001, in which he wrote, "I would like to request a meeting with you
on behalf of my constituents, the principals of First Auditors'
L.L.C., of San Diego."
Other Cunningham letters sought updates on the program, which he said
he was following "anxiously."
Cunningham was instrumental in getting language into the
appropriations committee report accompanying the annual IRS funding
bills in 2002, 2003 and 2004 that called on the agency to spend $3
million, $4 million and $4 million, respectively, on the project.
About $5 million was spent – including $3.5 million paid to First
Auditors and $1.5 million spent internally by the IRS – before the IRS
halted the program.
The program was supposed to save taxpayers potentially billions of
dollars each year by giving the IRS the ability for the first time to
audit deductions claimed by the insurance industry for money set aside
to pay off expected life insurance claims.
The IRS hasn't reported any savings under the program. Noorigian and
Amitay blame the failure on poor management by the IRS. Kavanagh
blames First Auditors for not making the payments so that IAS could
continue the needed support and updates.
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Yang
a.a. #28
AthD (h.c.) conferred by the regents of the LCL
a.a. pastor #-273.15, the most frigid church of Celcius nee Kelvin
EAC Econometric Forecast and Sorcery Division
Proudly plonked by Lani Girl and Crazyalec (aka aka Yang's little poltregeist *****)
The Bush 'balanced' budget: 1.6 trillion and worsening
The Bush 'economic' policy: 12.5 million FEWER jobs than Clinton and counting
The Bush Iraq lie: -1790 GIs, one friend's co-worker's son and mounting
Having Bush ***** up my country: Worthless
.
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