Hearing on the Clinton Foundation

Subcommittee on Government Regulations

By Chris Hanrahan

First and Second Panels

December 13, 2018

The December 13 2018 testimony was brought to order at 2:24PM ET and lasted 2 hours, 42 minutes, and 9 seconds.  A total of 4 witnesses gave testimony during this time, and these notes reflect the hearing.

The U.S. Attorney for Utah was scheduled to attend but was not present (Mr. Huber)

The IRS was scheduled to attend but did not attend (Mr. Horton)

 

The Witnesses:

Mr. Tom Fitton

(Judicial Watch President)                                                            [@fittontom]

  • Judicial Watch is Nonpartisan
  • Is the most active FOIA investigator
  • Clinton Foundation  – Disclosure of Donors online
  • Bill Clinton – Speeches have never been disclosed.
    • 215 Speeches ($48 Million Dollars)
    • China, Russia, Egypt, Saudi Arabia, the U.A.E., Panama, Turkey, Taiwan, India, The Caiman Islands, and other countries had speeches by Bill Clinton during the time that Hillary Clinton was serving as the United States Secretary of State.
    • Doug Band Consultancy 
    • Cheryl Mills
  • Uranium One
  • Clinton Email Server – was found by the Judicial Watch FOIA.
  • The Clinton Foundation was protected by the Justice Department.
    • The Clinton Foundation was working actively under the Obama Administration to Target the Donald Trump Campaign.
  • Special favors for allies and supporters of the Clinton Foundation.
    • The appearance of “pay to play”.
    • It was hard to tell where the State Department ended, and the Clinton Foundation began.
    • Uranium One’s chairman made contributions to the Clinton Foundation.
      • Asking for documents regarding Uranium One, but there is already enough evidence to warrant this investigation.
  • The investigation about Russian Collusion is designed to investigate to the exclusion of any investigation of the Uranium One scandal.
  • Dossier against Trump was paid for by the Clintons.
  • Hillary Clinton is still being protected from the consequences of her behavior while she was Secretary of State RE: The Clinton Foundation.
  • (More details are in his written testimony)

 

Mr. Phillip Hackney

(Associate Professor of Law)                                                     [@EOTaxProf]

  • Non Profit Oversight his whole career.
  • University of Pittsburg Associate Professor of Law.
  • Worked for 5 years – Office of the Chief Counsel of the IRS.
    • Senior Technician Reviewer at the Internal Revenue Service.
    • 501(c) 1-20
    • 529’s
  • Right now, does the IRS have the right rules/ resources?
    • The IRS today has fewer than 10,000 auditors (lowest number since 1953). 
  • There needs to be a hearing on Nonprofit Oversight.
    • They are under-resourced.
    • What should the law be?
    • What should IRS Procedures and Policies be?
  • We don’t know who funds particular advocacy work, or supports certain candidates because of “dark money”.
  • Donor Advised Funds are a problem 
    • Public charities can be used to make a charity that would otherwise be a public foundation into a private charity.
  • Charity matters deeply, and it’s problematic when they take the money over a period of time and conduct political influence.
    • Wrote about this, and stands by what he wrote (question from Ms. Watson Coleman)

 

Mr. Lawrence W. Doyle

(Managing Partner DM Income Advisors)                    [@lawrencetdoyle]

  • Oversight of non-profit organizations
  • A specific case study – the Clinton Foundation
  • Graduate of the College of the Holy Cross
  • Today’s Hearing – there are currently 1.75 Million Not-for-profits.
    • 2/3 are 501-C-3 (Charities)
  • Macro Review of all Donors
    • Less than 1/10 of 1% of the donors donated 80% of the money
    • Followed the Money
  • Intentional misuse of donated Foreign Funds
  • An array of activities, both Domestically and Abroad
  • A closely held family partnership, not a charity
  • Donors responsibilities – the private foundations are subject to clawback unless they meet specific conditions.
  • The Foundation Library caused a concern – appeared to be far outside what they were improved for
    • Healthcare activities vs. being approved for a library

 

Mr. John F. Monyihan

(Principal at JFM and Associates)      

  • 501-C-3 (The Clinton Foundation) is the subject of an investigation that JFM and Associates have conducted
  • Graduate of the College of the Holy Cross
  • Never has been partisan
  • Follow facts – none of this is anything opinion related
  • Facts about the Clinton Foundation – a case
  • Apolitical, no-one has financed them
  • No affiliation to any political party
  • Forensic investigators
  • Former US Law Enforcement
  • 501-C-3’s have a lack of oversight, especially on the global front
  • Financed out of own pocket to examine the Clinton Foundation
  • Has not made any conclusions, and doesn’t have a lawsuit or a complaint against anybody
  • A submission of Probable Cause is on file with the IRS
  • FOIA and legal investigation tools have been used
  • A Tax Claim – indicating that the Clinton Foundation was operating outside of the bounds of approval granted by the IRS
  • Went to the 990’s first – the returns filed by the Foundation
    • Revenues and Expenses
    • Unable to reconcile
  • Looked at Consent Decrees from all the states the
    • Violations and penalties (consent decrees) paid to those states
  • The Foundation should have registered under FARA
  • Has been operating as an Agent
  • A European company in a dialogue with the Clinton Foundation before an MOU between a European country and an African country was negotiated – The Clinton Foundation Library
  • Public charities don’t make grants
  • In the case of the Clinton Foundation, the Global Fund became a hybrid between a private corporation and a public charity.
  • A facilitator and an agent of an entity outside of the Geneva Convention.

 

The Democrats said this:

Rep. Gerald Connolly D-VA 11th District                        [@GerryConnolly]

  • This is an attempt to smear the Clinton name.
  • “Individual Number 1 – directed illegal activity” (from court records)
    • Russian Influence in a US Election should be the focus.
  • Clinton Foundation and the Trump Foundation both have “serious allegations” against them.
    • Criminal investigations about the Trump Foundation are going on
      • Court evidence about this is what we have
    • Not about the Clinton Foundation
      • “No there there”
  • No Trump Justice Department representation at the hearing
    • Suspects that they would say “know there’s no there there”.
  • Internal reports being used to underpin these allegations were already leaked to WikiLeaks.
    • “Not a scandal nor new” – “no there there”
  • No evidence exists of quid-pro-quo.
    • This is the “umpteenth” hearing on the latest Clinton conspiracy.
    • He debunks Mr. Kessel’s assertion that he “knows where the bodies are buried” as nonsensical and unverified.
  • There are many things we should be investigating about Trump.
  • Refers to the new evidence as a “so-called investigation”.
  • States that mismanagement challenges were already leaked by WikiLeaks several years ago.
    • The Clinton Foundation has already made efforts to correct these short-comings.
    • 2 years ago, John Solomon wrote a news piece in “The Hill”
    • Professor James Fishman summed up the allegations against the Clintons at that time as “Minor infractions equivalent to reporting someone who issued a parking ticket for parking 15 inches from the curb instead of 12 inches”.
  • Highly doubts the claims of “explosive evidence” from “a confidential informant”.

 

Rep. Bonnie Watson Coleman D-NJ 12th District                 [@RepBonnie]

  • In 2015 she became the first black woman in Congress from NJ.
  • Has Tom Fitton ever worked for the Government or any party?
    • No
  • Last month the Trump Foundation was ruled against by a Judge.
    • A finding in the public record currently.
    • A major issue with private foundations when wealthy individuals use money to buy political influence.
  • Sourced Contracts, MOU’s, email exchanges between foreign offices and foreign governments. 

 

Rep. Carolyn Maloney D-NY                                                    [@RepMaloney]

  • Clinton Foundation is located in D.C.
    • The Foundation has supported PE programs in 149 schools
    • Restoration of NY Harbor
    • Free job training for homeless females
    • Other articles RE: charity put into the record
  • Clinton Foundation is headed by 2 people who are out of office
  • The Trump Foundation and the Whitaker Foundation should be investigated also.
  • Donor Advised Funds need to be changed in the law.

 

Cong. Delegate Eleanor Holmes Norton D-DC               [@eleanornorton]

  • The absence of a standard is what is at fault here
  • It can appear as though favoritism was being bought and sold
  • Looked at internal reviews by the Clinton Foundation
    • Timely reporting was noted as a struggle by the Foundation
    • These were voluntary reviews
    • They reformed their investing and gift policy
    • Conflict of Interest policy
    • Some raised concerned of a quid pro quo
      • No evidence was found that this was in fact the case
    • Clinton Foundation has received many positive ratings and met all 20 standards for governance of a fundraising organization.
  • Why has a copy of this Probable Cause submission been withheld from this committee?
    • Not everything that their investigation involves is covered in the submission.
  • Was a copy of the submission given to the Republicans?
    • No, Monyihan and Doyle did not provide these documents to the staff.
    • The staff was given the documents by a reporter, John Solomon on his own initiative.
    • Both sides have the same materials – at this time.
  • Did the FBI in any way confirm that this information would be used as part of an ongoing criminal investigation?
    • Monyihan and Doyle – No
  • Are you a whistleblower?
    • An outside whistleblower, not an inside whistleblower
    • We are not adverse in our submission to the Clinton Foundation
    • We are seeking a monetary reward (10 to 30% payout)
      • On $450M to $2.5B
  • Have you ever worked for the Clinton Foundation or had access to their internal files?
    • Monyihan and Doyle – No.

 

The Republicans said this:

Chairman Rep. Mark Meadows R-NC 11th District     [@MarkMeadows]

  • Question from the Chairman:
    • Is there enough in the public domain to warrant an investigation
      • Yes. A high likelihood of false statements in a return.
      • Based on the public record.
  • Answer from Mr. Hackney – YES
  • Is it likely that the special counsel is also looking into things other than Russian Collusion and President Trump
  • Answer from Mr. Hackney – YES
  • Why would Attorney General Eric Holder not have looked at some of the issues as it related to the Uranium One deal?
    • The investigation was supervised by Rosenstein and McCabe.
    • This is an issue.
  • Do you believe there is probable cause of wrongdoing?
    • Monyihan and Doyle – yes.
    • None of what is said in this hearing will effect the financial claims with the IRS.
    • This committee will protect a legitimate claim, and he requested that it be shared with the committee to go forward.
      • They will not be providing those materials, but will answer questions.
      • The documents have been submitted to the IRS and FBI
        • The hearing is about getting to the truth and the Committee is compelling that the documents be produced
      • Are you going to potentially be bringing a civil lawsuit against the Clinton Foundation.
  • Do you believe that there was a criminal element to the Clinton Foundation?
    • Yes
    • What alleged criminal activity?
      • Mr. Clinton on a regular basis mixed his personal business with the Foundation.
      • Expenditure of donated funds.
  • Do you have a confidentiality agreement with someone you interviewed for evidence?  What was their position?
    • A senior member of the Clinton Foundation (part of CHI)
      • Allegations of funds being used for private travel and personal expense.
      • Mr. Clinton’s relationship with one of the Clinton’s biggest donors, Bill Gates
        • Clinton HIV Initiative – Pre-2002 
        • Clinton Health Access Initiative – new title
          • Schedule G was answered “no” under the question of whether the CIH was a continuation.  This was false.
      • The informant advised friends to stop donating to the Clinton Foundation because it was so bad.
  • Do you believe there is an open criminal investigation on the Clinton Foundation?  Out of what field office?
    • Yes, out of the Little Rock Arkansas field office.
    • This might explain why [Huber] wasn’t here.
      • Can’t comment on an ongoing investigation.

 

Rep. Rod Blum R-IA 1st District                                             [@reprodblum]

  • Quid Pro Quo – “something for something”
  • FARA Laws – Department of State violated its duty
    • Morocco
    • International Youth Foundation
    • Uranium One deal – $140 Million to the Clinton Foundation
  • An Iowa saying goes: “If It looks like a pig, and smells like a pig, it’s probably a pig”
  • What percentage of a normal 503-c-3 is charitable funds
    • 85%
  • What was the percentage found on the Clinton Foundation
    • 60%
  • Did you discover what appeared to be pay-to-play
    • We discovered outside of the boundaries evidence which could suggest this

 

Rep. Jim Jordan R-OH 4th District                                            [@Jim_Jordan]

  • Jim Jordan has 327 videos in the C-SPAN Video Library
  • Federal Budget implication.
  • This hearing is an attempt to try to stop the double standard that exists in our rules today.
    • The politically connected class – and the non-politically connected are subject to a different set of rules.
  • Political targeting of conservative points of view by the IRS.
  • What was the agreement that Hillary Clinton had, during the time she was in office with respect to not being involved in the business of the Clinton Foundation
    • Thy didn’t follow this agreement (per Tom Fitton)
  • Cheryl Mills signed an agreement before turning over evidence to the FBI RE: Hillary Clinton and the Clinton Foundation.
    • The FBI had its hands tied
    • The Department of Justice did not prosecute the abuse.
  • Investigation names even showed bias in the approach and standards.
    • Crossfire Hurricane – Trump Campaign Russia Investigation
    • Vs. the Midyear Exam – Clinton Investigation
  • Clarifying that Mr. Monyihan is not here to file a lawsuit
  • Did anyone hire Mr. Monyihan to begin this investigation?
    • No
    • This is the first time that they’ve filed a Probable Cause submission
  • Agent of a foreign government – what did you mean by that?
    • Mozambique – emails have shown that this was not a Clinton Foundation program per se.
    • They were brokering money and brokering pharmaceuticals

 

Rep. Paul Gosar R-AZ 4th District                                                [@repgosar]

  • Political operatives in the Clinton Foundation business.
  • Sidney Blumenthal
  • Foreign Agent Registration Act requirements
  • Soros donations subsidized in part by US Tax Dollars
    • [Tom Fitton’s answer]
  • Exorbitant travel for the Clinton Foundation another area of concern

 

Rep. Jody B. Hice R-GA 10th District                           [@congressmanhice]

  • He is an American politician and syndicated radio show host.
  • Was the Justice Department actively involved in putting their thumbs on the scales for the Hillary Clinton campaign?
  • We need the information to investigate and do oversight
    • We need cooperation
  • Have you been in contact with Huber or anyone on his investigation team?
    • First communication with Salt Lake office was in November
    • Friday November 30th.
    • No communication prior to that.
    • Nature of the phone call – we are reviewing the materials
    • Based upon the Justice Department’s questions, Monyihan and Doyle believe that an investigation is currently ongoing.
  • Do you find any indication that there was ever a quid-pro-quo going on at the Clinton Foundation?
    • Yes.

 

 

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