Attorney: Donor knew money wasn't for Edwards' campaign

[alp227]

Source: CNN

The attorney for a 101-year-old billionaire donor, whose money is at the center of John Edwards' corruption trial, told jurors Monday that his client knew the hundreds of thousands of dollars she gave the former U.S. presidential candidate was not a campaign contribution.

Alex Forger said his client, Rachel "Bunny" Mellon, "liked John Edwards as an individual" and supported him, giving the ex-senator $725,000.

But he said Mellon had "no doubt" that not all of her contributions were for his political campaign, strengthening Edwards' position that Mellon was not only supporting him in his effort to get elected, but in other endeavors as well.

Mellon's donations, at least in part, were used to try to conceal the former senator's mistress, Rielle Hunter, with whom he later admitted to having an affair and fathering a child with while seeking the Democratic Party's 2008 presidential nomination.

Read more: http://www.cnn.com/2012/05/07/justice/north-carolina-edwards-trial/index.html

[no_hypocrisy]

1. Wouldn't that kind of admission open up Bunny Mellon to penalties for not paying a gift tax?

If the money wasn't intended for a true political contribution, wouldn't it be a gift? And aren't gifts valued more than $11,000 taxable?

[leveymg]

2. Hush. Don't bother us with issues of law, and Mellons are off-limits here.

Such details might distract us from the Morality Play. On with the trial! We have sex crimes to uncover!

More seriously, it seems that Edwards was being handed a very long rope by a member of a robber baron family that's long been notorious for attempting to cover and manipulate every possible angle of the US political process.

[Tunkamerica]

5. It is an issue of law, no doubt.

But, the specifics are exactly opposite. The gifter has no tax obligations on money given and the giftee wasn't actually John Edwards although it was "for" him.

[leveymg]

10. That's what I thought, too.

Seems that Edwards never actually had control over the funds, hence no tax obligation. Seems to be a lot of misinfo out there about this case.

[ieoeja]

3. I'm pretty certain the recipient, not the giver, has to pay that tax.

Next : can Edwards point out that he was just a go-between for the money from Bunny to Mistress? In that event only the Mistress would be guilty of tax evasion if she failed to report this gift. And Edwards should be in the clear.

[magical thyme]

4. since the money never entered Edwards' bank account

that should seem entirely likely. He didn't receive the gift. Young was the actual go between, as the money passed through Young's account...with apparently the majority of it never making it to Hunter after all.

[ieoeja]

6. Gov Len Small (R-IL) tried that defense.

Since he deposited 50% of tax checks directly into his accounts instead of taking them afterwards from the State's accounts, he wasn't actually stealing from the state.

His jury did agree and find him not guilty. Of course, they did have a little help from Al Capone coming to that conclusion.

[magical thyme]

11. not quite the same thing...nor even close

Edwards never received any of the money at all. Young and Hunter received all the money. Edwards only received the side benefit of Hunter's silence, which I suspect is not taxable.

And now Mellon's attorney has said that she knew the money was intended for personal help, not a campaign contribution.

The money was a gift; not theft. And it went to Young and Hunter, not Edwards. Taxes are owed by recipients of gifts, not people who arrange gifts. For example, if my friend convinces my father to give me a large gift, which I will use to help my friend, the friend does not owe taxes, I do. And it is not stealing, even if my father doesn't know that I intend to use it for my friend. Because it is a gift. Once I have it, it is mine to do with as I please.

Mellon may have given Young money expecting it to be spent on Edwards. But once it was given to Young, it was Young's to do with as he (and his wife) pleased.

[1monster]

8. From what I've read, gift taxes WERE paid on the contributions to the the "hide

Rielle Hunter fund."

http://www.talkleft.com/story/2012/5/7/154815/7220

He also testified that he amended Mellon's 2008 tax return to address the payments, which were included as gifts to Huffman, and pay the related gift tax.

"Is there any doubt in your conversation with her that you said this could not be a campaign contribution?” defense lawyer Abbe Lowell asked.

"No doubt," Forger replied.

"Is there any doubt she said it was not a campaign contribution?” Lowell asked.

"No doubt," Forger again replied.

[karynnj]

9. Not only that, can anyone give a generous gift to any candidate they want to befriend

Can one of the Koch brothers give - say - $ 10 million to his favorite candidate. (Remember this was before Citizens United.) I also remember the press and other Democrats being very clear in their opinion that Teresa Heinz Kerry could not give millions to her husband. Where that was extreme and unprecedented, letting everyone give millions makes a mockery of tracking campaign contributions.

[tawadi]

7. Whatever

Many other donors didn't know.