McAuliffe’s company under an SEC investigation for misuse of EB-5 program and fraud

Democrat Terry McAuliffe, the Dem Virginia gubernatorial candidate for the elections this year, has been touting his work in private enterprise as his bona fides for job creation and for his leadership skills. Word now comes that his company, Greentech Automotive, is under investigation by the Securities and Exchange Commission (SEC) for misuse of a federal visa program and for investor fraud.

The electric-car company headed until last fall by Democratic Virginia gubernatorial candidate Terry McAuliffe and a sister company led by the brother of former Secretary of State Hillary Clinton are under federal scrutiny over how they used a foreign investor visa program.

Nearly 100 pages of newly released documents reveal the Securities and Exchange Commission in May subpoenaed records of GreenTech Automotive and Gulf Coast Funds Management, a partner in GreenTech’s efforts to establish plants in Mississippi. The inquiry is related to their use of a Department of Homeland Security program that grants permanent residency to foreign investors who invest $500,000 or more in economically struggling areas for ventures that create American jobs.

The program, called “EB-5", was actually held out by the company as a primary funding source. But let’s take things from the beginning. McAuliffe, after a long period of fundraising and general flackery for the Democratic National Committee, struck out to form his own company, GreenTech Automotive. When looking for a place to build the factory, McAuliffe said that Virginia showed no interest in it and, therefore, he took the business to Mississippi. (Quick aside: the “factory” has yet to be built in spite of promises that cars would be produced in short order. Reporters visiting the site can’t even see that any construction has so much as started.) McAuliffe worked with Gulf Coast Funds to raise the capital and they, too, are under SEC investigation.

McAuliffe’s claim that Virginia wasn’t interested in the factory is a blatant lie, shown to be so by literally years of e-mail and other correspondence in which McAuliffe was shown a variety of sites that would have welcomed him with open arms. When McAuliffe & Crew started to not return phone calls or answer legitimate questions, the localities in Virginia got less interested. The use of the EB-5 program as a primary funding source was also of great concern – correctly so, it now appears.

Virginia should take McAuliffe at his word, however. His work in GreenTech most certainly should be taken as proof of his abilities and his motivations. McAuliffe is only interested in what advances himself and his friends in the upper echelons of the DNC. Virginia is nothing more than a means to his ends and he has zero loyalty to the Commonwealth. He has the same “laws are for little people” attitude exhibited in such quantity by the Obama Administration and other large Dem-controlled governments around the country and he will bring to Virginia the same ruinous policies and antics that sank Detroit and threaten to do so to Chicago, California, and to the federal government. Terry McAuliffe decided he didn’t need Virginia. Virginia doesn’t need Terry McAuliffe.

We need to elect Ken Cuccinelli in 2013.

Advertisements