Senate Minority Leader Harry Reid Didn’t Disclose Real Estate Earnings
Land deeds obtained by The Associated Press during a review of Reid’s business dealings show:
_The deal began in 1998 when Reid bought undeveloped residential property on Las Vegas’ booming outskirts for about $400,000. Reid bought one lot outright, and a second parcel jointly with Brown. One of the sellers was a developer who was benefiting from a government land swap that Reid supported. The seller never talked to Reid.
_In 2001, Reid sold the land for the same price to a limited liability corporation created by Brown. The senator didn’t disclose the sale on his annual public ethics report or tell Congress he had any stake in Brown’s company. He continued to report to Congress that he personally owned the land.
_After getting local officials to rezone the property for a shopping center, Brown’s company sold the land in 2004 to other developers and Reid took $1.1 million of the proceeds, nearly tripling the senator’s investment. Reid reported it to Congress as a personal land sale.
The complex dealings allowed Reid to transfer ownership, legal liability and some tax consequences to Brown’s company without public knowledge, but still collect a seven-figure payoff nearly three years later.
Reid hung up the phone when questioned about the deal during an AP interview last week. . . .
Senate ethics rules require lawmakers to disclose on their annual ethics report all transactions involving investment properties _ regardless of profit or loss _ and to report any ownership stake in companies.
Kent Cooper, who oversaw government disclosure reports for federal candidates for two decades in the Federal Election Commission, said Reid’s failure to report the 2001 sale and his ties to Brown’s company violated Senate rules.
And it looks like more developments may be coming:
Other parts of the deal _ such as the informal handling of property taxes _ raise questions about possible gifts or income reportable to Congress and the IRS, ethics experts said.
And it looks like this Brown guy is a pretty shady character:
Brown befriended Reid four decades ago, even before Reid served as chairman of the Nevada gaming commission and decided cases involving Brown’s clients.
Brown’s name has surfaced in federal investigations involving organized crime, casinos and political bribery since the 1980s.
This past summer, federal prosecutors introduced testimony at the bribery trial of former Clark County Commission chairman Dario Herrara that Brown had taken money from a Las Vegas strip club owner to influence the commission.
You’ll remember that previously Reid got in hot water for accepting free boxing tickets as he worked on legislation concerning the boxing industry.
This isn’t good for Reid’s “culture of corruption” campaign against Republicans in Congress.
