Clinton Sleaze: Bill's foundation violated its own articles of incorporation
The Clinton Global Initiative articles of incorporation state that its purposes are "exclusively charitable," yet Bill used the CGI to steer a $2 million donation to a private company with ties to his close friend and neighbor, Julie Tauber McMahon.
Prior to 2009, the CGI was operated as a program under the William J. Clinton Foundation (WJCF), which is a 501(c)(3) charity under the IRS code. According to the WJCF website, the White House required the CGI to be operated as a separate legal entity but still under the control of the WJCF. In late 2009, Clinton attorney, confidante and CEO of WJCF filed papers for the incorporation under the laws of the State of Arkansas.
The articles of incorporation for the CGI provide in Article VII as follows:
The purposes for which the corporation is established are exclusively charitable, as specified in Ark. Code Ann, § 4-33-201, and shall include engaging governmental, corporate, and non-profit leaders, as wel1 as college students and on-line participants, in the development of concrete and measurable commitments to action to address some of the world's most pressing challenges.
The management of CGI included some Wall Street alumni: the CEO was Robert S. Harrison, a former partner and Managing Director at Goldman Sachs (which paid Hillary $675,000 in speaking fees) and the Director of CGI International and Finance and Operations was Lisa A. Rickert, a former Vice President of investment banking Lehman Brothers, which went bankrupt prior to her joining CGI. Several directors are aides and/or friends of Bill.
The purpose of the CGI was to bring like-minded people together to solve global problems and they did so at lavish, splashy meetings. As reported by the Wall Street Journal, at a 2010 meeting in New York, Bill Clinton arranged for a "commitment" by Kim Samuel, a philanthropist and owner of the Samuel Companies, to invest $2 million in Energy Pioneer Solutions, a private company. While the CGI did not make the investment itself, it did pay substantial sums for the venue to close the deal. This alone should raise eyebrows since a tax-exempt charity is facilitating an investment in a for-profit company, which in this case was clearly in violation of the CGI articles of incorporation. The kicker is that one of the major investors in this company was Ms. McMahon who is Bill's neighbor, a frequent visitor and by some accounts, his mistress. (There are no reports in the media yet which describe this alleged liaison as a “Bimbo eruption,” the term used during Bill’s impeachment for the many women touched one way or another by him.)
This is another example of the sleaze that permeates everything involving the Clintons from Whitewater, Monica Lewinsky, Travelgate, Clinton Cash (involving the WJCF) and the list goes on. It is not clear if the FBI probe has looked into this episode of the long running Clinton soap opera, but there appears to be plenty to investigate about Bill and Hillary.