Imagine if you will that you are a rich bank owner with a couple of kids to send through college. Also as a CPA you can find loopholes, or play with the books, to make their tuition a write off helping your bottom line with tax breaks. Hard for most of us who work for a living to imagine but a real life scenario nonetheless.
Take Katie King, and her dad Metro Council President Jim King for example. King is owner of the King Corporate Group which owns King Southern Bank, his CPA firm, and Peoples Bank in Nelson County. It has been said that Katie received paychecks from her dad for work she supposedly did on behalf of King Corporate Group or specifically King Southern Bank. Matter of fact what were her qualifications and what work did she actually perform?
Reasonable questions to be sure.
A great way to pay for college and get the write off huh? I mean Katie had all kinds of time to work at King Southern while attending school full time AND playing volleyball. Kind of hard to find where she would have time for a job isn't it? Good way to give money to the kid for college AND get the write off too. Not exactly legal so perhaps it should be investigated for merit.
Strike One.
Let's look at Katie's living arrangements shall we? She resides at 2440 Tyler Lane, a public record, and though the house is in her name the tax bill is sent to where? You guessed it 2900 Newburg Rd or King Corporate Group headquarters. So now King also pays the tax bills on property Katie owns.
Hmm. Strike two?
Finally this. According to mortgage records on file Katie has a mortgage on her house through People's Bank in Nelson County. Who owns the bank? Why none other than Metro Council President Jim King of course. Nelson County bank opens branch in Jefferson CPA office - Business First of Louisville:
Why would the mortgage be out of County in Nelson through a different bank then the one he owns here? Perhaps there is more to the financing than we know. Either way it is very interesting to say the least. It would also be interesting to note that she got a mortgage of $145,000 in 2002 on this property yet what was she doing for income at that time? Were mortgage guidelines followed in this regard since her dad owns the bank?
Strike Three.
For now we know that Katie reportedly received a paycheck from King while a student for work that probably was not performed thus enabling him to write off at least a portion of her tuition. This seems awful close to illegal action. We also know that Katie has her mortgage through daddy's bank, in another County, of which the tax bills get paid through King Corporate Group not Katie herself which makes one wonder again about the write off being given to daddy King.
And finally a mortgage one wonders who is really paying for, Jim King or Katie. Was it taken out of County to be harder to track and question? Makes you wonder doesn't it?
Questions should abound about possible tax evasion, possible lending violations, and many more.
Kind of makes you wonder how she has gotten by on her County Attorney salary doesn't it?
And of course we believe she had $194,000 to lend her own campaign to buy an election.
Time to seek answers.
There will be more to come.
Friday, December 12, 2008
6 comments:
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Keep working on this Ed, great stuff
ReplyDeleteWith a guy like Jim, I can't believe King Southern didn't get the contract to do the city's banking. The city gave it to Republic instead. I bet King has his hand in the jar somewhere in city government. It's his nature. He's a sneak and a bad one at that.
ReplyDeletehmm, a rich daddy giving his kid money, what a scandle
ReplyDeleteInteresting comment and of course anonymous as usual. Tis ok I will bite.
ReplyDeleteThere is nothing scandalous about a parent giving their child money. Not at all. As a matter of fact I give my kids money when they need it. I give it to them out of my net income from my pocket. You know my disposable income.
With that being said there is plenty SCANDALOUS if the money given them is an illegal scheme for tax write offs. Putting them on the payroll as a "ghost" employee complete with paychecks that are business write offs so that money is spent on college or living expenses is indeed illegal.
From your personal pocket is not.
Financing a home on paper through dad's bank with possibly no payments being made is another way to hide taxable income.
Is Jim King doing this? I am not accusing I am simply stating that it should be looked at to make sure these financial dealings are above board considering the money involved with family.
Interestingly enough Katie's salary at the time she quit was $41,000 a year. How many can make payments on a $145,000 mortgage, plus payments on thousands in loans that she then channeled to her campaign. All the money from daddy's bank.
If these loans were given by daddy through his bank for the purpose of funding her campaign it is indeed illegal. Matter of fact were the loans given based on the same lending practices fairly offered to all applicants? There is a possibility that based on income they were not.
If this is the case then King very possibly has also violated fair lending practices governed by law.
Read this for more. It is very enlightening:
http://cityroom.blogs.nytimes.com/2008/12/10/new-judge-is-charged-with-campaign-finance-fraud/
Sure he has - how could she even qualify for that loan when she wasn't working at the time? I know he owns the bank, but doesn't he have a board of directors?
ReplyDeleteI would suspect that the board of directors are Jim, Jim Jr. Katie, and who knows who else. So does that constitute a independent and intelligent board of directors?
ReplyDelete