Starr Foundation

=Themis:  SEPTEMBEROn September 10, U.S. Chamber Watch files charges with the IRS that the U.S. Chamber of Commerce “violated tax codes by laundering millions of dollars meant for charitable work from a group with ties to the insurance giant AIG.”September 10, 2010Chamber of Commerce Accused of Tax FraudBy ERIC LICHTBLAWASHINGTON — With a war chest rivaling that of the Republican Party itself, the U.S. Chamber of Commerce has emerged in the last year as perhaps the Obama administration’s most-well-financed rival on signature policy debates like health care and financial regulation.Critics on the left have long complained about the chamber’s outsize influence. But now they are taking on the business association directly, charging in a complaint filed Friday with the Internal Revenue Service that it violated tax codes by laundering millions of dollars meant for charitable work from a group with ties to the insurance giant A.I.G.The complaint was brought by a group called U.S. Chamber Watch, which was created four months ago — with the strong financial backing of labor unions — to scrutinize the Chamber of Commerce’s growing influence and provide a counterbalance.But chamber officials said they had complied with all tax laws and dismissed the complaint as a political ploy.A chamber spokeswoman, Tita Freeman, said its opponents “are desperately looking for opportunities to undermine the chamber’s efforts to promote free markets and economic growth.”The I.R.S. refused to comment on the complaint, citing the confidentiality of taxpayer records.I.R.S. regulators have often been wary of wading into political grievances, particularly after evidence emerged during the Watergate scandal that the Nixon White House had sought to use the agency for political purposes.But in recent years the agency has occasionally gotten involved in politically tinged controversies. In one high-profile case in 2004, Republican complaints led it to open an investigation into the N.A.A.C.P.’s tax-exempt status after the group’s leader criticized President George W. Bush in a speech. The I.R.S. concluded two years later that the remarks did not violate the group’s nonprofit restrictions on political activity.At issue in the complaint against the Chamber of Commerce is whether the group mixed funds for charitable and noncharitable political purposes in violation of tax codes.The chamber, often using expensive mass-market radio and TV spots, has weighed in on many major public policy debates in recent months, including the Obama administration’s health care policy, business regulations, campaign finance laws and Internet rules, as well as job creation and the threat of tax hikes. On many issues, it has pushed for less government regulation in favor of free-market incentives.Now the chamber’s political arm is turning to the November elections, and it expects to spend $50 million or more to push pro-business candidates, usually Republicans. As part of a wave of new commercials broadcast this week, the chamber’s California affiliate attacked Senator Barbara Boxer — a Democrat running for re-election against Carly Fiorina, the former chief executive of Hewlett-Packard — and accused Ms. Boxer of “destroying jobs” by voting against business.Cyrus Mehri, a Washington lawyer who brought the I.R.S. complaint on behalf of U.S. Chamber Watch, said in an interview that the chamber’s current political activities were, in effect, being underwritten with money intended for charitable work.The complaint focuses on loans and grants totaling about $18 million that were made beginning in 2003 to a nonprofit affiliate, the National Chamber Foundation, by theStarr Foundation, a charity started by the founder of A.I.G. and now led by Maurice R. Greenberg, the insurer’s former chairman.Lawyers for Chamber Watch said their research, based largely on public tax filings, found that none of the principal on some $12 million in loans had been paid back and that the money appeared to have been given to the chamber’s foundation for unrestricted use.The lawyers said that the money, in violation of nonprofit restrictions, was ultimately funneled to the chamber itself and used to finance broader political causes, including support for legal tort reform to shield companies like A.I.G. from liability. Mr. Greenberg himself had worked to promote restrictions on lawsuits, the complaint notes.“You have millions of dollars improperly going to the chamber,” said Mr. Mehri, who drafted the complaint with Gail M. Harmon, a Washington lawyer specializing in tax law. “This is not a technical violation.”But Stan Harrell, chief financial officer for the Chamber of Commerce, said in an interview Friday that the chamber’s lawyers and its accountants at Ernst & Younghad reviewed the Starr Foundation funding and found that it complied with all relevant tax law.=eric schniederman nuke option IRS // chamber watch: AIG CoC starr fdn big effort:<h1 class="gb-volume-title" dir="ltr" style="margin: 0px; background-color: rgb(255, 255, 255);">The Influence Machine: The U.S. Chamber of Commerce and the Corporate ...</h1>By Alyssa Katz<a href="https://books.google.com/books?id=XhadBAAAQBAJ">https://books.google.com/books?id=XhadBAAAQBAJ</a>When Americans hear the words “Chamber of Commerce,” many still think of the local business associations that spruce up Main Streets and sponsor Little League teams around the country. But the United States Chamber of Commerce is a different animal altogether. The Chamber was originally founded to give big business a voice during the long—and now almost inconceivable—period in American history that saw the rise of workers’ rights, consumer protections, and environmental awareness as national priorities. But over time, driven by an antigovernment ideology and its desire for financial and political power, the Chamber metastasized into a fighting force designed to protect the worst excesses of American industry.   The Chamber, through its veiled corporate sponsors, can take credit for some of the most disturbing trends in American life: the reversal of environmental protections, the destruction of unions and worker protections, the rise of virulent antigovernment ideology, the enlarged role of money in campaigns, and the creation of “astroturf” movements as cover for a corporate agenda. Through its propaganda, lobbying, and campaign cash, the Chamber has created a right-wing monster that even it struggles to control, a conservative movement that is destabilizing American democracy as never before.   The Influence Machine tells this history as a series of gripping narratives that take us into the backrooms of Washington, where the battles over how our country is run and regulated are fought, and then out into the world, where we see how the Chamber’s campaigns play out in real lives. In the end, Alyssa Katz reveals the hidden weaknesses of this seeming juggernaut and shows how its antidemocratic agenda can be reversed.

<h3>2010 Complaint</h3>

<a id="2010_Complaint" name="2010_Complaint">In September, 2010, two national watchdog groups, </a><a href="http://www.sourcewatch.org/index.php?title=U.S.Chamber_Watch" title="U.S. Chamber Watch">U.S. Chamber Watch</a> and <a href="http://www.velvetrevolution.us/stop_chamber/" title="http://www.velvetrevolution.us/stop_chamber/">StopTheChamber.com</a>, filed complaints with the U.S. <a href="http://www.sourcewatch.org/index.php?title=Internal_Revenue_Service" title="Internal Revenue Service">Internal Revenue Service</a> asking the agency to investigate the U.S. Chamber of Commerce for criminal fraud and money laundering. The groups allege that the Chamber illegally funneled donations from a wealthy charitable foundation into its political battles. Chamber Watch said that $12 million of an $18 million donation that the wealthy <a href="http://www.sourcewatch.org/index.php?title=Starr_Foundation" title="Starr Foundation">Starr Foundation</a> <a href="http://www.velvetrevolution.us/stop_chamber/images/irs_complaint_9_10_10.pdf" title="http://www.velvetrevolution.us/stop_chamber/images/irs_complaint_9_10_10.pdf">gave</a> (pdf) gave to the National Chamber Foundation was in the form of loans that have never been repaid. Chamber Watch says the money was diverted to finance political causes, including <a href="http://www.sourcewatch.org/index.php?title=Tort_reform" title="Tort reform">tort reform</a>, to shield companies like <a href="http://www.sourcewatch.org/index.php?title=AIG" title="AIG">AIG</a> from liability lawsuits. The <a href="http://www.sourcewatch.org/index.php?title=Starr_Foundation" title="Starr Foundation">Starr Foundation</a> was founded by <a href="http://www.sourcewatch.org/index.php?title=Cornelius_Vander_Starr" title="Cornelius Vander Starr">Cornelius Vander Starr</a>, the insurance entrepreneur who also founded <a href="http://www.sourcewatch.org/index.php?title=AIG" title="AIG">AIG</a>. The Foundation's Chairman of the Board of Directors is <a href="http://www.sourcewatch.org/index.php?title=Maurice_R.Greenberg" title="Maurice R. Greenberg">Maurice R. Greenberg</a>, former President and CEO of AIG. The Foundation's Director (and Treasurer) is Howard I. Smith, AIG's former Chief Financial Officer. StopTheChamber.com says it was contacted by a Chamber whistleblower <a href="http://www.velvetrevolution.us/stop_chamber/images/COC_DOJ_Letter8410.pdf" title="http://www.velvetrevolution.us/stop_chamber/images/COC_DOJ_Letter8410.pdf">who described</a> (pdf) how Chamber CEO <a href="http://www.sourcewatch.org/index.php?title=Tom_Donohue" title="Tom Donohue">Tom Donohue</a> is "scamming [business] clients to serve his own interests rather than the interests of the business community." The insider compared Donohue to <a href="http://www.sourcewatch.org/index.php?title=Jack_Abramoff" title="Jack Abramoff">Jack Abramoff</a> and <a href="http://www.sourcewatch.org/index.php?title=Bernie_Madoff" title="Bernie Madoff">Bernie Madoff</a>. He also alleged that Donohue does not fear the <a href="http://www.sourcewatch.org/index.php?title=Federal_Elections_Commission" title="Federal Elections Commission">Federal Elections Commission</a> or Congress, and has a plan set up to attack the <a href="http://www.sourcewatch.org/index.php?title=U.S.Department_of_Justice" title="U.S. Department of Justice">U.S. Department of Justice</a> if the agency ever tries to investigate him.<a href="http://www.sourcewatch.org/index.php?title=U.S.Chamber_of_Commerce#cite_note-5" title="">[6]</a>

===

The Starr Foundation is one of the wealthiest private foundations in the United States, with assets of approximately $1.25 billion.<a href="http://www.sourcewatch.org/index.php?title=Starr_Foundation#cite_note-0" title="">[1]</a> The Starr foundation was created by <a href="http://www.sourcewatch.org/index.php?title=Cornelius_Vander_Starr" title="Cornelius Vander Starr">Cornelius Vander Starr</a>, who is also the founder of the <a href="http://www.sourcewatch.org/index.php?title=American_International_Group" title="American International Group">American International Group</a>, better known as A.I.G. The Starr Foundation is led by former AIG Chief Executive Officer <a href="http://www.sourcewatch.org/index.php?title=Maurice_Greenberg" title="Maurice Greenberg" class="mw-redirect">Maurice Greenberg</a>. In September, 2010 it was reported that the Starr Foundation gave $18 million in loans and grants to the <a href="http://www.sourcewatch.org/index.php?title=U.S.Chamber_of_Commerce" title="U.S. Chamber of Commerce">U.S. Chamber of Commerce's</a> charitable, non-profit arm, the <a href="http://www.sourcewatch.org/index.php?title=U.S.Chamber_Foundation" title="U.S. Chamber Foundation">U.S. Chamber Foundation</a>, to be used for lobbying.

<ul>

<li class="toclevel-1"><a href="http://www.sourcewatch.org/index.php?title=Starr_Foundation#Laundering_funds">1 Laundering funds</a></li>

<li class="toclevel-1"><a href="http://www.sourcewatch.org/index.php?title=Starr_Foundation#Sourcewatch_resources">2 Sourcewatch resources</a></li>

<li class="toclevel-1"><a href="http://www.sourcewatch.org/index.php?title=Starr_Foundation#External_resources">3 External resources</a></li>

<li class="toclevel-1"><a href="http://www.sourcewatch.org/index.php?title=Starr_Foundation#Contact">4 Contact</a></li>

<li class="toclevel-1"><a href="http://www.sourcewatch.org/index.php?title=Starr_Foundation#References">5 References</a></li>

</ul>

</td></tr></tbody></table>

<h2><a name="Laundering_funds" id="Laundering_funds">Laundering funds</a></h2>

<a name="Laundering_funds" id="Laundering_funds">In September, 2010, the consumer watchdog group, </a><a href="http://www.sourcewatch.org/index.php?title=U.S.Chamber_Watch" title="U.S. Chamber Watch">U.S. Chamber Watch</a>, filed a complaint with the <a href="http://www.sourcewatch.org/index.php?title=Internal_Revenue_Service" title="Internal Revenue Service">Internal Revenue Service</a> against the U.S. Chamber of Commerce alleging that the $18 million in loans and grants given to the <a href="http://www.sourcewatch.org/index.php?title=U.S.Chamber_Foundation" title="U.S. Chamber Foundation">U.S. Chamber Foundation</a> by the Starr Foundation made its way into the coffers of the U.S. Chamber of Commerce, where it was illegally used for lobbying. U.S. Chamber Watch alleges that $12 million of the $18 million was given in the form of loans that have never been repaid, and that this money was apparently given to the Chamber Foundation to be used as unrestricted funds. The money was then, in turn, funneled towards support for legal <a href="http://www.sourcewatch.org/index.php?title=Tort_reform" title="Tort reform">tort reform</a>, to shield companies like A.I.G. from liability. <a href="http://www.sourcewatch.org/index.php?title=Starr_Foundation#cite_note-1" title="">[2]</a>

<h2><a name="Sourcewatch_resources" id="Sourcewatch_resources">Sourcewatch resources</a></h2>

<ul>

<li><a name="Sourcewatch_resources" id="Sourcewatch_resources">   </a><a href="http://www.sourcewatch.org/index.php?title=American_International_Group" title="American International Group">American International Group</a></li>

<li><a href="http://www.sourcewatch.org/index.php?title=U.S._Chamber_of_Commerce" title="U.S. Chamber of Commerce">U.S. Chamber of Commerce</a></li>

</ul>

<h2><a name="External_resources" id="External_resources">External resources</a></h2>

<ul>

<li><a name="External_resources" id="External_resources">   </a><a href="http://www.velvetrevolution.us/stop_chamber/images/irs_complaint_9_10_10.pdf" class="external text" title="http://www.velvetrevolution.us/stop_chamber/images/irs_complaint_9_10_10.pdf" rel="nofollow">2010 Complaint</a> (pdf) to the Internal Revenue Service by U.S. Chamber Watch alleging that the Starr Foundation violated it's charitable status</li>

</ul>

<h2><a name="Contact" id="Contact">Contact</a></h2>

<a name="Contact" id="Contact">The Starr Foundation

399 Park Avenue – 17th Floor

New York, NY 10022

Tel. (212) 909-3600

Fax (212) 750-3536

Web site:</a><a href="http://www.starrfoundation.org/index.html" class="external free" title="http://www.starrfoundation.org/index.html" rel="nofollow">http://www.starrfoundation.org/index.html</a>

<h2><a name="References" id="References">References</a></h2>

<li id="cite_note-0"><a name="References" id="References">   </a><a href="http://www.sourcewatch.org/index.php?title=Starr_Foundation#cite_ref-0" title="">↑</a> Starr Foundation <a href="http://www.starrfoundation.org/" class="external text" title="http://www.starrfoundation.org/" rel="nofollow">Starr Foundation Home Page</a>, accessed September 17, 2010</li>

<li id="cite_note-1"><a href="http://www.sourcewatch.org/index.php?title=Starr_Foundation#cite_ref-1" title="">↑</a> Joshua Holland <a href="http://www.alternet.org/economy/148174/how_the_chamber_of_commerce_allegedly_laundered_millions_in_charity_dollars_to_beat_back_financial_reform_and_reelect_republicans" class="external text" title="http://www.alternet.org/economy/148174/how_the_chamber_of_commerce_allegedly_laundered_millions_in_charity_dollars_to_beat_back_financial_reform_and_reelect_republicans" rel="nofollow">How the Chamber of Commerce Allegedly Laundered Millions in Charity Dollars to Beat Back Financial Reform and Reelect Republicans</a>, Alternet.org/Economy, September 13, 2010</li>

</ol>

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