Suzanne Bump Issues a Statement Condemning Glodis’ Failure to Pay Taxes
Plus a list of Guy Glodis’ “top 10″ other Ethics Problems
The Globe published an article today about political campaign committees who have failed to pay taxes on earnings from the investments made with campaign money. Most of the candidates (Tim Cahill, Tim Murray, and Martha Coakley), have acknowledged the oversight and said they will pay their taxes immediately.
Guy Glodis’ campaign is also named, but he is taking a very strange position – he claims that it wasn’t an oversight – and he won’t pay.
Glodis argued that he did not have to pay federal taxes on income his committee earned. He asserted the Internal Revenue Service code governing political committees allows them to deduct fund-raising expenses, which in his case, he said, were greater than the interest income….”My committee sought opinions from two separate certified public accountants over a four-year period, both of whom advised the committee that there was no tax liability for interest earned on certificates of deposit because fund-raising expenses exceeded interest earned on the CDs, according to IRS instructions attached to the applicable tax form,” said Glodis, whose committee at times has held as much as $428,000 in certificates of deposit over the past four years.
This interpretation appears to conflict with the instructions accompanying IRS Form 1120-POL, the tax return for political organizations. It specifically states: “No deduction is allowed for general administrative or indirect expenses.” It does allow deducting for expenses incurred in making investments….
Secretary of State William F. Galvin, whose committee has paid $30,000 to $40,000 a year in state and federal taxes, said he has no doubt the IRS code does not allow deducting for administrative or fund-raising costs. “My reading of the instructions does not allow me to do that,” Galvin said. “Believe me, if I thought I was entitled, I would take it.”
(h/t BlueMassGroup )
Glodis’ Opponents are Quick to Make it a Campaign Issue
Glodis is wrong about his requirement to pay these taxes. But it is also very short sighted. He’s giving Lake and Bump a perfect platform to make an issue about his longstanding pattern of embarrassing ethical problems.
Lake is out with the video we posted above. Bump has released the following statement:
“What makes Guy Glodis believe he is not subject to the same rules which apply to everyone else?
And, more troubling, why, when caught red-handed in wrong-doing, does Guy Glodis refuse to take responsibility for his actions?
Today we add federal tax evasion to the growing list of apparent violations of the law involving Sheriff Guy Glodis.
OCPF and the State Auditor have already been determined that he has accepted illegal campaign contributions, put campaign donations into his own pocket, used his office to pay for political mailings, awarded public contracts without competitive bids, and provided illegal excessive benefits to his public employees, to name but a few of his transgressions. And, he has already paid thousands of dollars in fines to OCPF.
He has offered flimsy and inconsistent explanations and told outright lies about his failure to disclose that the real source of a $20,000 loan was a friend who was made a deputy sheriff four months later and is now in jail for investment fraud and about how receipt of that money was followed within days by deposits of $22,000 into his campaign account.
Now he says the law followed by all other candidates regarding federal taxes due on interest earned by his campaign war chest does not apply to him. He refuses to acknowledge and abide by, as all other candidates have, the plain language of the law, saying other unnamed people told him he could ignore it.
By now, the voters must be asking: What is wrong with this guy? And, how can we elect Guy Glodis, with this record of flagrant disregard for laws relative to political, public, and personal finance, to a position of public trust, especially that of State Auditor? I know that I am.
Lake is right about Glodis. He is too “ethically challenged” to be an appropriate candidate for auditor. The primary qualification for auditor has to be trustworthyness followed probably by a background in auditing.”
Lake and Republican Candidates Attacking Bump Unfairly
Lake’s video is mostly about Glodis. But Lake does echo an unfair criticism of Bump that we’ve heard from some of the Republican candidates – that Bump is in the same ethics category as Glodis because twenty years ago she was fined $600 for a relatively minor issue with failing to correctly categorize the nature of a dinner she had with her husband and a lobbyist.
Glodis’ ethics issues are part of a long standing pattern. YellowDogDem has been keeping a list which is just too perfect to improve upon. I hope he doesn’t mind that I include it here in full:
Guy Glodis is running for State Auditor as a self-described reformer, committed to transparency in government, and determined to make sure that every tax dollar is spent appropriately. Â We know all about Guy’s crude, rude, and boorish behavior from last week’s David Bernstein article in the Boston Phoenix, but what about the ethics of this purported reformer? Â Are there any blemishes in Guy’s past? Â Any clues from his background as to what kind of Auditor he would be? Â I’ve scrounged around and come up with my top ten list of Guy’s ethical issues. Â Feel free to add your own.
- According toÂ a report from the Office of Campaign and Political Finance, dated February 9, 2009, Glodis had three “serious breaches of the campaign finance law.” Â One of those breaches was his deposit of six campaign contributions into his personal bank account. Â Guy can’t figure out the difference between his campaign account and his personal account?
- Another rebuke from the Office of Campaign and Political Finance, dated, February 16, 2010, revealed that Glodis had been caught using Sheriff’s Office funds to pay for a political mailing. Â Isn’t that the kind of illegal activity that our Auditor is supposed to expose, not engage in?
- What about the time that Glodis went to Corporation Beach in Dennis, and tried to get out of paying a $15 parking fee, claiming that he didn’t have to because he worked “for the state?” Â One on-line commentator from Cape Cod diagnosed Glodis with “the Sheriff of Nottingham Syndrome . . . a highly contagious and progressive disease that afflicts members of the Worcester County Sheriff’s Department and is characterized by an uncontrollable urge to be treated differently from everybody else.” Â Why does Glodis, our potential Auditor, believe that he doesn’t have to pay for what all other taxpayers pay for?
- How about Amy Frigulietti, to whom, despite holding a desk job that primarily involves handling payroll, Sheriff Glodis provides a gas-guzzling Ford Explorer, courtesy of we the taxpayers, for her daily 100-mile commute back and forth to work from her home in Dorchester. Â According to Worcester Telegram writer Dianne Williamson, Frigulietti is also “allowed to use the black SUV on weekends to run errands, shop, and attend fundraisers for her boss, which I’m betting she’s er, driven to do. Â The only thing she’s not allowed is to pay for gas, maintenance and tolls. At a time when cash-strapped Americans are severely pinched at the pumps, Ms. Frigulietti is blithely raking up free mileage in an unmarked SUV.” Â Now that’s what I call watching taxpayers money!
- And let’s not forget Francis Sena, a friend of Glodis’s father, who had received $20,000 in extra money in his paycheck from the Massachusetts Division of Industrial Accidents. Â As a State Senator, Glodis filed legislation to give Sena $20,000 in back pay, in order to forgive Sena’s debt to the Commonwealth. Â The problem with the legislation, which thankfully was quashed, was that it could have allowed hundreds of other workers to get similar treatment and, according to the Boston Herald, would have cost taxpayers as much as $4 million. Â What a watchdog Guy Glodis will make!
- And what about Joseph T. Duggan, III, a close friend of big Glodis campaign contributor, Commerce Bank & Trust Chairman David G. “Duddie” Massad, who, along with his family, according to the Worcester Telegram & Gazette, gave Glodis $3,500 in campaign contributions over the last 5 years. Â Immediately after being placed in Sheriff Glodis’s West Boylston jail, Duggan was placed in a work-release program in violation of a departmental policy that had been approved by Glodis less than two weeks earlier. Â Wanna guess who Duggan worked for while on work-release? Â Duddie Massad? Â Correct! Â In total, Duggan spent just eight complete days in Glodis’s jail during his four-month sentence. Â Sure sounds like hard time. Â Who knew that Guy Glodis was so soft on criminals?
- And then there’s Amit Mathur, a Shrewsbury investment advisor charged by the U.S. Attorney’s Office with stealing $13 million from his clients. Â At Mathur’s trial, one of the witnesses testified that, among the payments he made on instructions from Mathur, was a $20,000 check payable to Glodis. Â While a spokesman for Glodis claimed that the $20,000 was a loan that was repaid, Glodis hasn’t revealed what the loan was for, how much interest he was charged, and why he was borrowing money from someone as sketchy as Mathur. Â Think Mary Connaughton isn’t going to ask those questions?
- Glodis may be a big supporter of organized labor, but he doesn’t treat his own workers all that well. Â The head of the union that represents correctional officers and sergeants at the Worcester County Jail recently criticized Glodis forÂ violating his own guidelines in promoting jail personnel, including political supporters. Â Rules are made for everyone else, but not you, right Guy?
- One thing that Glodis, who campaigned against the patronage of the former Sheriff, is getting better at is patronage. Â According to Worcester Magazine, of the 29 promotions Glodis doled out in 2005, only 17 went to officers who had donated to or helped Glodis on one of his past campaigns. Â By 2007, according to theÂ Worcester Telegram & Gazette, those numbers were up to a more respectable level — 21 of 29 promotions went to officer who gave cash donations to Glodis. Â If you want to find out who’ll be working in Guy Glodis’s Auditor’s Office, just check the campaign finance records.
- But you can’t say that Glodis isn’t experienced with the Auditor’s Office. Â A 2010 report by Auditor DeNucci’s Office found a multitude of problems with Glodis’s operations, including violating one of his own procurement policies by awarding more than $74,000 in consulting contracts without competitive bids. Â Is that the kind of experience you bring to the campaign, Guy?
Guy Glodis? Â A reformer with results? Â You be the judge.
Glodis is a Problem for Democrats
Glodis has a huge campaign warchest – over $800,000. And he is known as a very effective and tireless campaigner. The Glodis for auditor signs are everywhere. He is at so many Democratic campaign event you would think he must have duplicates.
He was pretty savvy at the Massachusetts Democratic Convention. Going in, he was the odds on favorite to win outright, and there was doubt that Lake would make it. He came in with a lot of support from Union delegates. But when it was clear to him that Bump might win ( and she did ) Glodis urged enough of his supporters to vote for Lake to ensure he would be on the ballot. Lake draws his support from the same progressive constituencies as Bump.
If Glodis does win the Democratic primary – as seems likely – it poses a big problem for Democrats. It will be an easy task for his Republican opponent – likely Connaughton – to attack him with his long list of ethics problems.
This is a problem not only for the Auditors race – but it will help keep alive all the other ethics issues facing Democrats this year. A matchup between Bump and Connaughton is much stronger for Democrats than one with Glodis.