Polis Challenged To Explain Ties to Cayman Island Investment Fund

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POLS UPDATE: New Fitz-Gerald press release after the jump. Says campaign manager Mary Alice Mandarich, “Jared Polis still needs to explain to voters about his investments in power generation facilities, energy speculation, oil and gas development and war profiteering-and these investment connections to the Cayman Islands.”

On the heels of the recent Senate hearings on the evasive tax strategies of off shore funds in the Cayman Islands, yesterday the campaign of Senator Joan Fitz-Gerald challenged Jared Polis to explain his ties to an offshore fund in the Cayman Islands.

“Jared needs to fully explain his ties to, not only Jove Partners, but to Jove Master Fund registered in the Cayman Islands.” said Mary Alice Mandarich, campaign manager for Fitz-Gerald for Congress.

    *  In 2005 Jove Partners was established in Delaware and New York

   * Jared Polis lists himself is the managing director of Jove Partners [2008 Personal Financial Disclosure]

   * On SEC form 13D, Jove Partners acknowledges it is the investment manager for Jove Master Fund-a Cayman Island exempted corporation [2008 Personal Financial Disclosure]

   * SEC rules require any fund with control over $100 million in investments must file disclosure form 13F.

   * According to an SEC Form 13F filed on May 14, 2008, Jove Partners is heavily invested in power generation facilities, energy speculation, oil and gas development and war profiteering.  [2008 Personal Financial Disclosure]

   * For five years Jared Polis paid no personal U.S. income taxes for years 2001, 02, 03, 04, and 05

         o “I have paid a lot of taxes. I should have paid more, by the way.” [Jared Polis, Granby, 12/14/08]

Jove Partners, LP invests in multiple energy companies. According to the SEC, institutional investment managers who exercise investment discretion over $100 million or more in Section 13(f) securities must report their holdings on Form 13F with the SEC.

Company                        Shares Held

Rosetta Resources Inc.    110,000  

SAIC Inc.                          350,000

Transalta Corp.                125,000

          [SEC Form 13F, Jove Partners, LP filed on Feb. 14, 2008]

Company                        Shares Held

NRG Energy                     32,000

Reliant Energy Inc.           120,000

Rosetta Resources Inc.    110,000

SAIC Inc.                          175,000

Transalta Corp.                125,000

         [SEC Form 13F, Jove Partners, LP filed on May 14, 2008]

“Jared can not continue to say, as he has in the past, ‘I don’t manage the money’ because he lists himself as the managing director of Jove Partners,” said Mary Alice Mandarich. “As Jared talks about Big Oil, war profiteers and progressive values, he needs to explain the investments in this fund and his association with Jove Partners.”

The Senate Finance Committee just last Thursday [July 24] announced plans for new laws against offshore tax evasion. A new GAO report found American ties to thousands of firms registered in the Cayman Islands. The hearings were held by Sens. Max Baucus, D-Mont., and Charles Grassley, R-Iowa. The report showed as many as half of the 18,857 entities registered at single Cayman Island office. Offshore tax evasion costs Americans tens of billions of dollars every year.

The sourcing document is available at www.joanfitz-gerald.com/polisoffshorefund

FOR IMMEDIATE RELEASE                                          CONTACT: Matt Moseley

Wednesday, July 30, 2008                                                                              303-487-1111                                                                                                                       303-887-0826 cell

POLIS EVADES ANSWERING QUESTIONS

ABOUT CAYMAN ISLAND FUND AND JOVE PARTNERS

Polis claims ignorance about holdings;

Why not invest in America? Has he deferred tax payments?

WESTMINSTER, Colo.- Questions continue to surround Jared Polis and his involvement in Jove Partners and the Jove Master Fund in the Cayman Islands. Yesterday it was revealed that Jared Polis is the managing director of Jove Partners. On SEC form 13D, Jove Partners acknowledges it is the investment manager for Jove Master Fund-a Cayman Islands exempted corporation.

According to an SEC Form 13F filed on May 14, 2008, Jove Partners is heavily invested in oil and gas development, war profiteering, power generation facilities and energy speculation.”  

“Jared Polis still needs to explain to voters about his investments in power generation facilities, energy speculation, oil and gas development and war profiteering-and these investment connections to the Cayman Islands,” said Mary Alice Mandarich, campaign manager of Fitz-Gerald for Congress. “These are simple questions that Jared needs to answer:

·         “Why base your company in the Cayman Islands and why not invest in America?

·         “Since the establishment of Jove Master Fund, have you deferred tax payments in any year? Will you release your 2007 tax returns?

·         “What foreign investment has Jove Master Fund attracted?

·         “How many jobs did you create outside of America?”

At the close of market yesterday, just five of Jared Polis’ holdings in companies that profit from energy speculation, power generation and war profiteering were valued at nearly $14 million.

·         NRG Energy:  32,000 shares at  $35.84 = $1,146,850

·         Reliant Energy Inc.:  120,000 shares at $17.60  = $2,112,000

·         Rosetta Resources,  Inc.:   110,000 shares at $23.34 = $2,567,400

·         Transalta Corp.:  125,000 shares at $34.73 = $4,341,250

·         SAIC, Inc.: 175,000 shares at $19.14 = $3,349,500.

“When recently asked about the most important values in America, Joan Fitz-Gerald responded with “equality and justice.” Jared responded with “free enterprise.” This is indicative of how Jared puts profits ahead of people,” said Mandarich. “How can we trust Jared to represent the interests of all the people in the 2nd Congressional District when he will not be forthcoming about the nature and extent of his investments and his partners?”

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35 Community Comments, Facebook Comments

  1. Denver_Dem says:

    So Jared is trying to beat Joan up on taking committee money (which is limited to $5,000) while he is trying to buy the election with his fortune that has ballooned through oil profits and off-shore tax shelters?  The kicker is that Jared can continue to pour as much of this dirty money as he wants into the race to tout his green credentials and other progressive stances.

    And  wait, Jared’s campaign manager contends that Jared shouldn’t be held accountable for this simply because he’s not involved in the day-to-day operations?  It would be nice to have multiple stashes of $14 million funds scattered throughout the world and that I didn’t have the time or energy to concern myself with the details.  Sorry Jared, you can’t claim culpable deniability on this one.

    • RedGreenRedGreen says:

      that Democrats weren’t complaining about the source of the money when Polis joined Stryker, Gill and Bridges to bankroll the takeover of the Legislature.

    • Denver_Dem says:

      oh, forgot to mention, I calculated the value by taking yesterday’s closing price of each of the stocks in question.

      NRG Energy .  32,000 shares X  $35.84=  $1,146,850

      Reliant energy Inc.  120,000 X 17.60  = 2,112,000

      Rosetta Resources,  Inc.   110,000 X 23.34 = 2,567,400

      Transalta Corp.  125,000 X 34,73 = 4,341,250

      SAIC, Inc. 175,000 X 19.14 = 3,349,500.

    • Barron X says:

      .

      And if they do, I doubt they’ll care.

      .

      • RedGreenRedGreen says:

        It was on the front page up top on the web site this morning and is on page 8 in today’s paper. It’s here.

        The charges keep flying in the 2nd Congressional District. The latest: Joan Fitz-Gerald’s campaign on Tuesday challenged Jared Polis to “explain his ties” to an investment fund that includes an offshore account in the Cayman Islands.

      • Denver_Dem says:

        …about the person whom they choose to vote for or against.  Especially for someone like Jared who is running ads talking about renewable energy, which was ironically paid in part by the profits in these companies.

        • Barron X says:

          .

          I’m making a prediction about what I think they will do.

          .

          • mordantliberal says:

            to bring it to the voting public’s attention.  Perhaps a nice ad of Jared lounging on the beach in the Caymans sipping on a crude oil colada garnished with untaxed, $100 bills?  There is a lot a set of creative minds could do with this information.

  2. Danny the Red (hair)Danny the Red (hair) says:

    There are legitimate reasons to hold offshore accounts.  I used to run a few offshore funds and I could take you through it, However this looks serious.

    These funds look to be established for two reasons 1. tax evasion 2. Hiding investments you do not want public.

    The fact that the money is domiciled overseas means that he doesn’t even have to pay the 15% capital gains tax.  

    Holding money in offshore accounts is not illegal if he structured his corporations correctly unless he repatriated money without reporting.  One method people use/d credit cards drawn againt the account or paying domestic bills with offshore money, usually to an offshore billing address.

    Clearly this is an issue with regard to tax policy and the advantages the hyper wealthy enjoy.

    Even more disturbing is the use to invest in Oil companies considering his frequent attacks against JFG.

    Even if Polis did not egage in tax evasion, he definitely attempted to obfuscate his oil profiteering.

    • ohwilleke says:

      but those legitimate reasons (the biggest being allowing foreign investors to not have to pay U.S. income tax or file U.S. income tax returns on investment income) don’t mean that the Cayman Islands is an appropriate place to set up that account.

      Congress should be passing laws authorizing forfeiture of assets of any U.S. investments linked directly or indirectly to Cayman Island entities, hell, authorizing military action if necessary until it meets international financial norms (not unprecedented in U.S. history), not having members with Cayman Islands accounts.

      • Danny the Red (hair)Danny the Red (hair) says:

        less sketchy than the caymans or nassau, but the caymans are cheap.

        You are correct about the corporate use for global profits which is the appropriate purpose.

        I agree caymans/nassau need to get serious amout AML.  However, the offshore banks are critical to the Interbank liquidity market.

  3. redstateblues says:

    This could potentially destroy Jared Polis. I know him personally, and he is a great guy, but this makes me wary of him in Congress. If what this article is insinuating is true, then he is a massive hypocrite. If I was Will Shafroth, I would start hitting JP and JFG hard on the oil lobby issue. If he can get them both, while still touting his newspaper endorsements, then he might actually have a shot at this. We shall see.

  4. Jambalaya says:

    Wow, that Joan F-G is one smart cookie, with integrity to spare!  She has gathered some damaging quotes from the future with which to bash Polis.  She will be formidable in the US House!

    • Attentive5 says:

      Well I’m impressed. I think I saw an 80s movie about this stuff with Michael J Fox.

      I mean, what happens if Jared sees this and then changes his mind and DOESN’T say that on 12/14/08. It could screw up the whole future timeline and Biff might find out who wins the 2008 World Series and make a fortune betting on it in the Cayman Islands…………

  5. mordantliberal says:

    to have spend some quality time on a Cayman beach with your off-shore, tax-sheltered accounts worth millions, while raking in profits from Big Oil.  It’s the good life, enjoy Jared.

    • Jambalaya says:

      …maybe you need to update your handle.  As for me, I’m glad that somebody, FINALLY, has exposed the fact that Jared is rich, rich, rich.  How has he kept a secret for so long?

    • redstateblues says:

      Scary sunding music

      Narrator: What do we really know about Jared Polis?

      Camera zooms in on his laughing face.

      Narrator: Did you know Jared Polis is rich, and loves laughing on the beach? Did you know he’s a tax cheat, and he wants to destroy public education? Jared Polis also personally consumes 27% of the world’s crude oil by drinking it to refuel his evil, robotic, millionaire body.

      Evil Laughter

      Narrator: In this important election year, can we really afford an evil millionaire in Congress? Vote Joan Fitz-Gerald on August 12th.

      • Danny the Red (hair)Danny the Red (hair) says:

        JFG should use this photo

        Scary sunding music

        Narrator: What do we really know about Jared Polis?

        Camera zooms in on his face. [grey scale]

        Narrator: What do we know about Jared Polis? We know he’s rich, but did you know he paid no income tax in 2002, 2003, 2004 and 2005. None, $0.  How can he do that? BY using offshore tax havens to shield his money and forcing the government to raise taxes on working Americans.

        Everyone hates taxes, but the government takes money to run.  The real question is who pays the taxes. Not Jared Polis in 2002,3,4,and 5.

        If working people people pay taxes, shouldn’t a multi-millionaire?

        • RedGreenRedGreen says:

          Except I don’t think that’s why Polis didn’t pay taxes in certain years, and I don’t think anyone’s making that accusation.

          As to the earlier point that oil and defense contractors make up only a portion of the portfolio, so do oil and mining contributions to the JFG campaign, but the Polis campaign certainly treats that as meaningful and runs with it.

        • Dabee47 says:

          why would JP have been paying income tax in years where he had no official income.

          • Danny the Red (hair)Danny the Red (hair) says:

            He owns a US company which owns a foriegn company (the investment pool).  The foriegn company makes money in a place with no corporate/investment taxes.  As long as the foriegn company doesn’t upstream income to the US company there are no income taxes even though the foriegn company is making money.

            What I am not sure about is whether Jared reports income as cap gains, or distributions (dividends) both are 15%.

            This is exhibit 1. of what is wrong with our tax structure.

            • RedGreenRedGreen says:

              IIRC, Polis losses in the years he paid no income tax vastly outweighed anything he might have made with this fund. I’m sure the JFG campaign has done the math, and if what you’re alleging occurred, it would’ve been part of the press release. It’s guilt-by-association with recent Cayman troubles, and hypocrisy over the oil and defense profits while lambasting JFG. That’s plenty.

              • Danny the Red (hair)Danny the Red (hair) says:

                And I think JP even confirmed a real tax rate of 15%.

                I am not alleging anything.  It is in the facts of his tax disclosure.

                I am not saying Polis has done anything illegal, I am saying the tax structure is wrong because of its very regressive structure for the uber wealthy.

              • Danny the Red (hair)Danny the Red (hair) says:

                http://www.dailycamera.com/new

                $18.5 million on $120 million income which is a little over 15%.  Either he was taking distributions or capital gains.  Its not an accusation.

                His nominal tax rate 15%

                Most middle class americans are 25-28%, hence very regressive.

  6. Fidel's dirt nap says:

    and I am glad I voted for Joan.  This is just icing on the cake.

    • sxp151 says:

      It’s shocking how some progressive people can so easily forget that the rich live by different rules from the rest of us. There are your beliefs on the one hand (those things you say in your commercials), and then there are the things you actually do to get more money.

      And some people are shocked, shocked, that Jared Polis would turn out to be just as disingenuous about the difference as every other rich guy.

      • Fidel's dirt nap says:

        I give him that and certainly don’t begrudge his wealth.  What really bothered me is the fact he went after JFG so hard on the oil and gas thing and it turns out he actively has holdings in the very same area, in an offshore account no less.  And it’s not that he owns those shares, its the hyporcrisy.

      • BoulderDem says:

        and I have nothing against Joan. But you should know that Joan and her family are very very rich too. As is Will. You can’t take a year off from work to campaign full time if you’re not.

        • mordantliberal says:

          I would read Richistan, an interesting book by Robert Frank, in which Jared is highlighted.  Jared is in the stratosphere of mega-rich, far removed from the rest of us.  He has chartered private jets to fly off to Miami (and other places), how many of us can claim the same?  He has set upoff-shore accounts to disguise profits from oil companies.  Joan and Will will never be the subject of a chapter in a nationally published book on their retirement accounts, to put them in similar categories of wealth as Jared is a bit off-the-mark.

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