The conservative super PAC American Crossroads said Monday it filed a complaint with the Internal Revenue Service requesting an audit of the Clinton Foundation, following articles last week about how the foundation aided a for-profit company part-owned by people with ties to Bill and Hillary Clinton.
The complaint by the group—founded by Karl Rove, a former political adviser to President George W. Bush and a writer for The Wall Street Journal’s op-ed pages—cites a Journal article as well as a New York Post article that quoted government watchdogs criticizing the Clinton Foundation commitment.
The Journal article documented the Clintons’ ties to the owners of Energy Pioneer Solutions Inc. that benefited from a $2 million commitment coordinated by the Clinton Global Initiative, a wing of the foundation. Julie Tauber McMahon, a close friend of former President Bill Clinton, owned a 29% stake in the company, while Democratic National Committee treasurer Andrew Tobias owned 5% and Mark Weiner, a supplier to political campaigns and a longtime friend of the Clintons, owned 5%.
Under federal law, tax-exempt charitable organizations aren’t supposed to act in anyone’s private interest but instead in the public interest, on broad issues such as education or poverty.
The Clinton family foundation has been a focus of criticism over donations received from governments and corporations that had business before Hillary Clinton when she was secretary of state and that could be affected by decisions she would make if elected president.
“These two articles appear to provide ‘probable cause’ for an IRS investigation into whether the Clinton Foundation wrongly provided private benefits to close friends and supporters of the individuals who control the organization,” American Crossroads President Steven Law wrote in the complaint. “In fact, it is undisputed that the Clinton Foundation used its charitable assets to aid a for-profit corporation owned by people with direct personal and political connections with the Clinton Family, which in turns controls the Clinton Foundation.” He called the foundation “unlike any other family-linked charitable foundation in memory.”
The IRS didn’t respond to a request for comment. A spokesman for Mr. Clinton, Angel Urena, told the Journal last week that “President Clinton counts many CGI participants as friends. ”Clinton Foundation spokesman Craig Minassian called the commitment an instance of “mission-driven investing…in and by for-profit companies,” which he said “is a common practice in the broader philanthropic space, as well as among CGI commitments.” Mr. Minassian responded to a request for comment Monday with a link to a Medium blog post by the foundation defending its work and denying allegations of wrongdoing. He also pointed to a blog post by a University of Notre Dame Law School professor, Lloyd Mayer, that said the foundation had not broken any rules. The Clinton campaign didn’t immediately respond to a request for comment Monday.
American Crossroads, one of the biggest pro-Republican super PACs in the last presidential election, has so far played a limited role in the presidential race. It has spent just $136,000 on ads against Mrs. Clinton, currently the Democratic front-runner and has said it is planning for now to focus on Senate races.