Tag: scammers
'Joke Appointment': Trump Names Tax Credit Scammer To Run IRS

'Joke Appointment': Trump Names Tax Credit Scammer To Run IRS

One of President-elect Donald Trump's appointments has so far escaped the level of intense scrutiny applied to some of his more controversial high-profile nominations. But experts are warning Americans to not overlook the damage one particular potential Trump administration pick could cause.

The Daily Beast reports that tax experts are urging senators to vote against the confirmation of former Rep. Billy Long (R-MO), who Trump has tapped to be the next commissioner of the Internal Revenue Service (IRS). In addition to not having any experience as a tax enforcer (aside from a three-day course in Florida that allowed him to call himself a "Certified Tax & Business Advisor"), Long is also accused of running a scam aimed at bilking the federal government out of Covid-19 pandemic relief funds.

According to the Beast, Long — a former auctioneer who ran a failed bid for U.S. Senate after leaving the House —worked with Lifetime Advisors in Wisconsin and Commerce Terrace Consulting in Missouri to help clients exploit a loophole that rewarded businesses for keeping workers on company payrolls. He bragged on a 2023 podcast, titled "Secret Tax Credit That Could Put Thousands Back in Your Pocket with Billy Long," that even if a certified public accountant may not sign off on the scheme, would-be clients could instead "go back to Billy. Let Billy do it for you."

The loophole was initially projected to cost the IRS $55 billion. However, the financial blow climbed to $230 billion, and could even skyrocket to $500 billion despite the agency's efforts to close the loophole. Brookings Institution senior fellow Bill Galston told the Beast that Long's confirmation would mean "the end of tax enforcement as we know it."

"He’s an auctioneer – that’s just perfect. Tax credits to the highest bidder!! Going once! Going twice!!" Galston said. "I can’t even get mad, it’s so bleeping funny."

While current IRS commissioner Daniel Werfel is supposed to serve in his role until November of 2027, it's assumed Trump won't allow President Joe Biden's appointee to serve out the remainder of his term. Center for American Progress tax expert Brendan Duke said the IRS is actually a "really important law enforcement agency," adding that it was the IRS that ultimately nabbed notorious mobster Al Capone.

"They track money laundering and terrorism. This is not a joke job, but it is a joke appointment," Duke said. "This has flown under the radar... He’s just as bad as RFK Jr., but nobody is paying attention."

Reprinted with permission from Alternet.

'Crypto Coins': Why Trump Never Stops Scamming His MAGA Flock

'Crypto Coins': Why Trump Never Stops Scamming His MAGA Flock

With the election upon us, many voters are focused on Donald Trump's unravelling mental state and his radical plans to kill off the democracy. But there should be space to recall his scams victimizing ordinary people and his joy in pulling them off. That speaks to character.

Trump's latest fishy deal involves a crypto operation. But let's start about three decades earlier, in 1995. Trump's Atlantic City casinos were going under, and he needed suckers to bail him out. He thus hawked shares of Trump Hotels & Casino Resorts.

Sophisticated investors regarded a company built on two casinos that had already gone bankrupt as an obvious loser. And so Trump turned to the chumps who bought into his rich-man, spinner-of-gold act. They put $140 million into the company and became a joke on Wall Street.

Trump was stuck with a third casino that was also failing. He persuaded Trump Hotels & Casinos Resort to take it off his hands at a grossly inflated price. By 2004, the bankers had enough and sent the company into a Chapter 11 bankruptcy. For every $10 that his marks invested at that initial public offering, they had $1 left.

Trump's explanation for the collapse in stock price should sound familiar to anyone now listening to his usual excuses: "People don't understand this company."

You heard echoes when he recently appeared before the Economic Club of Chicago. The moderator, citing The Wall Street Journal, asked him about his growing pile of campaign promises that could add almost $8 trillion to the national debt. "What does The Wall Street Journal know?" Trump responded. "They've been wrong about everything."

The year Trump Hotels & Casino Resorts filed for bankruptcy, Trump incorporated Trump University. Students fell for Trump's promise to share his tricks for building a real estate empire. (They presumably were not current on Trump's recent casino fiasco.)

Trump University was "a massive scam," according to the conservative National Review. First off, it wasn't a university. Rather it was a bait-and-switch scheme whereby students were conned into paying a typical charge of $20,000 — "ALL PAYMENTS MUST BE RECEIVED IN FULL" — for basically nothing. They didn't even have their picture taken with Trump, as promised. Instead, they were posed next to a cardboard cutout of him.

Trump was sued up and down and finally agreed to pay a $25 million settlement.

Trump is now trying to draw believers into his sketchy cryptocurrency company, World Liberty Financial. The clear objective is to raise a pile of money through unregistered securities offerings. The tokens are supposed to be sold only to accredited U.S. investors. But as a financial writer for New York magazine reports, "I received an email pushing me to buy them, despite having no accreditation whatsoever."

New cryptocurrency ventures put out what's called a "white paper" detailing their project. Trump calls his a "gold paper." Its cover features a portrait of a stern Donald surrounded by a blotch of what looks like melting gold.

In clear language, it piously notes that Trump, his family and Trump Organization employees may not serve as "an officer, director, founder or employee of, or manager, owner or operator of Word (they didn't bother to check for typos) Liberty Financial."

Under that is a complexly worded paragraph explaining that 75 percent of the crypto coin revenue goes to the Trump family. Trump's son Barron, who just entered NYU as a freshman, has been named one of its "Web3 Ambassadors."

If Trump has so much money, why does he run these grifts? There's a simple answer: It's a game. In his moral universe, a successful scam targeting the little people who buy your story is just good fun.

Reprinted with permission from Creators.

Former President Donald Trump

How Trump Scammed Investors In His Last Public Stock Offering

Former President Donald Trump's Truth Social platform is set for its initial public offering (IPO) as soon as next week after its merger was approved by a special purpose acquisition company. But while Trump himself stands to reap a multibillion-dollar windfall, investors may not be as lucky given Trump's past IPO record.

According to NBC News, Trump's last attempt to go public crashed and burned relatively quickly, with investors getting soaked even as Trump reaped significant benefits. A few months before the 2016 presidential election, the Washington Post reported that when the business mogul took Trump Hotels and Casino Resorts public, it plummeted from a $14 per share IPO to a penny stock in less than a decade.

"In its short life, Trump the company greatly enriched Trump the businessman, paying to have his personal jet piloted and buying heaps of Trump-brand merchandise," the Post's Drew Harwell wrote at the time. "Despite losing money every year under Trump’s leadership, the company paid Trump handsomely, including a $5 million bonus in the year the company’s stock plummeted 70 percent."

NBC reported that Trump Hotels and Casino Resorts performed relatively well for a time, hitting a peak of $35 per share in 1996. However, once it purchased a casino for $100 million more than it was worth, the value of the company's shares started to slide precipitously.

"The year the stock peaked, it lost $66 million. In 1999, it lost $134 million," NBC reporter Dareh Gregorian wrote. "And in 2004 — when the company filed for Chapter 11 bankruptcy protection and was delisted from the New York Stock Exchange — it lost $191 million, according to a CNBC review."

Truth Social may end up suffering a similar fate after its parent company, Trump Media & Technology Group, debuts its IPO on the Nasdaq exchange. Even though Trump himself is expected to net roughly $3.5 billion from the deal, it may be a considerably more risky bet for mom-and-pop investors.

CNN reported that Truth Social is "hemorrhaging users" and has just roughly 860,000 active accounts. That's far less than other far more popular social media networks like Facebook, Instagram, Whatsapp, X/Twitter and TikTok. Truth Social is reportedly not even among the top 100 apps downloaded on Apple's App Store, and the company's own management worried it could go belly-up if its merger wasn't approved.

"It's grossly overvalued,” University of Florida finance professor Jay Ritter told CNN. "It qualifies as a meme stock for which the price is divorced from fundamental value."

All eyes are on Trump's finances as he struggles under the weight of multiple civil judgments nearing $600 million in total. The former president owes roughly $464 million in penalties and interest to the State of New York after Judge Arthur Engoron found him guilty of artificially inflating the value of his real estate portfolio. He also recently posted a $91 million bond in his appeal of writer E. Jean Carroll's defamation verdict against him. That judgment came down after a 2023 judgment in which Trump was found guilty in a separate civil case of sexual abuse.

Despite his pending $3.5 billion payday, Trump is prohibited from selling any of his shares for six months, meaning he won't have any immediate help from the IPO in paying his legal costs.

Reprinted with permission from Alternet.

School bus

Right-Wing Scammers Are Targeting Public School Kids Now

The right's war on public education has reached its inevitable conclusion: fighting back against supposed liberal indoctrination in schools by empowering an explicitly right-wing organization to expose schoolchildren to flagrant conservative propaganda.

PragerU is creating partnerships with Republican-controlled states to put videos from its PragerU Kids offshoot — which it bills as a counter to ”the woke and anti-American leftist narrative taught in most schools” — in their classrooms. Oklahoma’s Department of Education announced on Tuesday that it will join Florida in treating PragerU Kids’ propagandistic work as legitimate educational content.

More states will likely follow — PragerU hosts a petition on its website whose signers support allowing its videos “in classrooms nationwide,” and state officials often mimic the policies they see implemented elsewhere.

This marks a new twist on an old con. Right-wingers regularly denounce nonpartisan institutions as excessively left-wing, then establish explicitly ideological counter-institutions as a purported balance. At its most effective, that strategy brings political benefits for Republican politicians and financial profits for their propagandists. With PragerU Kids, GOP officials are using their power to ensure that the grifters get paid.

Education is the next frontier for right-wing grifters and propagandists 

For more than two years, the right has conducted a nationwide campaign targeting the purported influence of the academic framework known as “critical race theory” in public school systems. Conservative think tanks, advocacy groups, and media outlets identify, exaggerate, or fabricate discrete instances of alleged left-wing excesses in discussions of race across the nation’s approximately 130,000 schools, then blow them up into national stories in order to focus the movement’s mostly white adherents’ racial anxiety into political energy.

Republican politicians have largely responded to the incentives created by this campaign by enacting legislation to limit discourse and teaching on race in public schools, at times through laws that courts have blocked as unconstitutional.

But the anti-critical race theory campaign also presents right-wing organizations with opportunities to access public school resources and their large, captive audience — and PragerU is taking advantage.

PragerU is a right-wing propaganda factory which claims to have generated “7 billion lifetime views” for its massive archive of videos targeting college-aged viewers. While its name conveys the imprimatur of a nonpartisan educational facility, the organization describes itself as “focused on changing minds” to be more conservative. Founded in 2011 by Dennis Prager, a right-wing talk radio host with an array of extremist views who has argued that “either ‘studies’ confirm what common sense suggests or that they are mistaken,” the organization has been heavily funded by Dan and Farris Wilks, the extremely religious GOP megadonors who also backed The Daily Wire.

PragerU rolled out its PragerU Kids line in 2021 in direct response to the right-wing frenzy over critical race theory. As with its videos geared toward college-aged viewers, PragerU claims its kids content is intended to counter the left-wing material purportedly taught elsewhere.

According to PragerU’s most recent report for its donors, its “kids shows are created to inoculate children against the woke and anti-American leftist narrative taught in most schools.” What that actually entails, as my colleague John Knefel reported, is “right-wing propaganda” that seeks to “render history and its inheritances invisible, inert, and incapable of inspiring young people to seek a more equal and more just world.”

By putting these videos in their state’s public school classrooms, Republican politicians can garner accolades on the right. PragerU, in turn, gets to tell the donors who gave more than $65 million according to its last publicly available tax filing that the organization has been successful in finding a new, captive audience for its content.

The losers are the students, and parents who don’t want their kids watching content explicitly designed to make them more conservative.

The right manufactures rage against institutions, then props up its own

PragerU Kids marks the latest iteration of a decades-old strategy. Grievance by grievance, the right has torn down nonpartisan institutions and businesses and constructed an alternate set of brands for “lifestyle conservatives” to purchase.

First came the press. Republican activists and politicians spent decades attacking mainstream news sources as excessively liberal. As rank-and-file conservatives lost trust in journalists, movement leaders launched new right-wing alternatives: talk radio in the 1980s, Fox News in the 1990s, and digital outlets in the 21st century.

Much of the content on these outlets focuses on attacking the mainstream press, both as a way to “work the refs” and encourage them to provide more favorable coverage of the GOP and its causes, and as a business strategy to keep audiences ensconced in a closed information environment where they only hear from right-wing voices.

Then came social media. The right ran the same playbook against the likes of Facebook and YouTube, trying to garner special dispensation to break the rules by claiming the platforms were biased against them. At the same time, they stood up (with varying degrees of success) explicitly right-wing alternatives in Trump’s Truth Social, Trump aide Jason Miller’s Gettr, white nationalist stomping ground Gab, and Rumble, a YouTube knock-off backed by fascist billionaire Peter Thiel.

Then came everything else. Over the last few years, right-wing propagandists have denounced an array of American corporations as exemplars of “woke capital” and called for boycotts. At the same time, right-wing entrepreneurs (often the same people promoting the critiques) have launched right-wing analogues to those disfavored brands.

Right-wing culture warriors are urged to drink Ultra Right Beer instead of Bud Light and Black Rifle Coffee instead of Starbucks, shave with Jeremy’s Razors instead of Harry’s or Gillette, make phone calls on Pure Talk instead of AT&T, and eat Jeremy’s Chocolate instead of Hershey’s. As other figures on the right attacked Disney movies and popular children’s books as excessively “woke,” they prepped right-wing options to replace them.

It’s a long con, one designed to channel culture war issues into Republican votes so the party can redistribute wealth upward, while also putting money in the pockets of the party’s hack class. And now, GOP politicians are putting the power of the state behind their grifters.

Reprinted with permission from Media Matters.

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