Noem under fire for omitting $80K payment from financial disclosure forms

Homeland Security Secretary Kristi Noem is facing scrutiny after failing to disclose an $80,000 payment from a dark money group in her required government financial forms.

This lack of disclosure from Noem has sparked questions concerning compliance with financial reporting laws, but was defended by the secretary’s legal counsel, as the Washington Examiner reports.

Noem has found herself at the center of a controversy involving an undisclosed financial transaction. The payment in question was made by a political advocacy organization known as American Resolve, which is categorized as a dark money group.

This term refers to political organizations that can receive unlimited donations from corporations, individuals, and unions, and are not required to disclose their donors.

Details emerge about payment

According to a report by ProPublica, American Resolve made the $80,000 payment to Ashwood Strategies. This company, incidentally, is owned by Noem and was founded on June 22, 2023, in Delaware.

According to information provided by American Resolve, the payment was a 10% fee of the total of $800,000 that Noem was able to raise for them during 2023.

In an intriguing side note, both Ashwood Strategies and American Resolve were formed on the same day, a fact that’s brought up due to the unusual timing and shared birthplace of these companies. Furthermore, Ashwood Strategies shares its name with one of Noem’s horses, a point that has captured the attention of many following the story.

American Resolve describes its mission as promoting “Kristi and her team” in key political races across the U.S. They appear to be heavily involved in supporting Noem’s initiatives, making the nature of their financial dealings particularly relevant to her public disclosures.

Noem’s lawyer responds

An added layer to this story is the fact that South Dakota’s disclosure laws allowed Noem to keep the creation of Ashwood Strategies under wraps until her Senate confirmation. When she finally filed her disclosure forms, Noem listed her involvement in non-governmental activities and cited a $140,000 advance for a book she was writing.

Significantly absent from the disclosure forms, however, was any mention of the $80,000 payment from American Resolve. When inquiries were directed to the White House and the Department of Homeland Security for clarification, both deferred to Noem’s lawyer, Trevor Stanley.

Stanley stood firm in his statements, asserting that “then-Governor Noem fully complied with the letter and the spirit of the law.” He further emphasized, “Secretary Noem fully disclosed all of her income on public documents that are readily available.”

History of financial allegations recalled

The situation is complicated further by Noem’s history with allegations regarding the misuse of taxpayer funds. Past accusations have suggested that she used government resources for personal gain.

Although Noem consistently denies these claims, they provide a backdrop that has intensified public interest in the current disclosure issue.

Noem’s ongoing contention with these allegations highlights the challenges public figures often encounter when balancing transparency and privacy. As a high-ranking official, public scrutiny of her financial dealings is heightened, reflecting the importance of trust and accountability in public office.

Despite Noem’s assurance of her compliance with fiduciary laws, the lack of transparency in her financial disclosures with the $80,000 payment raises fundamental questions about the effectiveness and enforcement of current disclosure laws.

Delaware incoporation under microscope

One significant aspect of this story is the incorporation of both Ashwood Strategies and American Resolve in Delaware. This choice is often notable as Delaware offers corporate-friendly laws that can provide a level of anonymity for businesses, something which figures into the concerns regarding transparency brought to light in this situation.

The potential implications of Noem’s undisclosed financial connections underscore the need for a robust dialogue around campaign finance, disclosure requirements, and the role of dark money in politics. The involvement of advocacy groups like American Resolve illustrates the complex interplay between fundraising, support, and political positioning.

This ongoing issue highlights the importance of a comprehensive understanding of political and financial regulations. As more information unfolds, the story continues to be one of significant interest, reflecting wider discussions on ethics and transparency within political spheres.

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