Finance

Appeals Court Wary of GOP Operative’s Campaign Finance Appeal

Published

7 months ago

February 12, 2024

Appeals Court Wary of GOP Operative’s Campaign Finance Appeal

A federal appeals court appeared unlikely to reverse a Republican political operative’s conviction for funneling political contributions from a Russian billionaire to former President Donald Trump’s 2016 presidential campaign.

A three-judge panel of the US Court of Appeals for the District of Columbia Circuit heard Jesse Benton’s challenge on Monday in a case that delved into complex campaign finance laws and communications to the jury at trial.

Benton, a one-time aide and grandson-in-law to Ron Paul, the former Texas GOP congressman and presidential candidate, is fighting his conviction on six counts of campaign finance violations and obstruction of justice. He was sentenced to 18 months in prison.

On appeal, Benton has challenged instructions given to the jury on how to consider a since-pardoned campaign finance conviction, and how a political contribution should’ve been defined.

Judge Florence Pan signaled she was inclined to find that Benton had missed his chance to challenge jury instructions at trial.

“I don’t see why you’re relieved of your obligation to contemporaneously object at the time the jury instructions are submitted,” Pan said. “You agreed to the jury instructions that were given, and now you’re challenging the same jury instructions that you co-sponsored.”

Judge Karen Henderson similarly questioned why Benton “couldn’t have lodged an objection to this” at the time.

Still, when questioning Justice Department lawyer, W. Connor Winn, she raised concerns about the instruction allowing the jury to consider Benton’s earlier campaign finance conviction in 2016 for which he was pardoned by Trump.

“I would think a lay juror would think, if he did the first one, he did this one,” she said.

Pan also appeared skeptical of Benton’s argument taking issue with the government’s decision to charge him under both the Federal Election Campaign Act and a financial recordkeeping law. Benton’s lawyer, Nicholas Harper of Gibson Dunn, told the judges that these statutes weren’t meant to overlap.

“The government routinely charges overlapping statutes,” Pan said. “What you’re proposing is extremely novel.”

Judge Bradley Garcia also said that the distance in time between when the two statutes were passed, and “what is going on” in the more recent recordkeeping statute, “might be a problem for you.”

Foreign Money

Benton was once a force in Republican politics. He also managed Senate campaigns for Kentucky Republicans Rand Paul, Ron Paul’s son, and Mitch McConnell, now minority leader.

Benton was indicted in 2021 after prosecutors said he solicited a sizable contribution from Roman Vasilenko, labeling it as consulting services and then giving some of the funds to Trump’s campaign committee.

According to prosecutors, Vasilenko wired Benton $100,000, and Benton in exchange arranged for Vasilenko to visit the US and attend a fundraising event for Trump, where the businessman could meet and take a photo with him.

Benton then sent $25,000 to Trump’s fundraising committee to cover Vasilenko’s ticket, and didn’t disclose that the money came from Vasilenko, prosecutors said.

Campaign finance laws prohibit foreign nationals from making contributions to political committees, or related to federal presidential elections.

Benton was initially indicted in the scheme alongside Douglas Wead, a former official in the George H. W. Bush administration. Wead died before trial.

At the appeals court, Benton’s lawyers honed in on Vasilenko’s intent when providing the funds to Benton.

In court filings, they argued that Vasilenko “had no interest” in US politics and didn’t provide the funds for the purpose of swaying the campaign, and that the government had provided “bare bones” evidence to the contrary. They also contended the jury had been “misled” in instructions related to this issue.

Benton’s team also took issue with the lower court’s decision to allow his prior conviction to be raised at trial.

“The district court’s decision to admit Mr. Benton’s prior conviction contravened the President’s judgment that he is innocent of those offenses and improperly swayed the jury to convict,” Benton said in court papers.

The government said in court papers that Benton had asserted a “novel argument” on the standard for a political contribution, and regardless, that they had presented “ample evidence” that Vasilenko intended to influence the election.

The case is: USA v. Jesse Benton, D.C. Cir., No. 23-3028 Oral Argument

Finance

Harris's proposed unrealized capital gains tax is unlikely to pass: CIO

Published

4 hours ago

August 31, 2024

Press Room

Harris's proposed unrealized capital gains tax is unlikely to pass: CIO

Unrealized capital gains tax proposals may be floating back into the zeitgeist as the Harris presidential campaign marches on, but for some, the noise around it is much ado about nothing.

“I don’t think this unrealized thing is going to have much momentum because it is a very onerous process to come up with those numbers,” Raymond James chief investment officer Larry Adam told Yahoo Finance Executive Editor Brian Sozzi on Yahoo Finance’s Opening Bid podcast (see video above or listen here).

“You start putting biases of what you think [something] is worth versus the reality,” said Adam. “That becomes a very difficult equation to really put into a place.”

We’ve seen unrealized capital gains tax proposals before, but they’ve met plenty of resistance.

Most recently, the Biden administration proposed an unrealized capital gains tax for those with a net worth of over $100 million. The proposal could affect more than 10,600 people in the US, according to estimates.

But, unlike a capital gains tax, which is imposed on a sold item, deploying an unrealized capital gains tax is a trickier move.

Stifel chief Washington strategist Brian Gardner said in a recent client note that under an unrealized capital gains tax system, “ranking illiquid assets would not only be complicated but controversial,” adding that there would also need to be a way to provide taxpayers with “rebates for future losses.”

While analysts scratch their heads about the subject, an unrealized capital gains tax also has plenty of tomato throwers. Donald Trump called it “beyond socialism,” telling a crowd of small-business owners, “You will be forced to sell your restaurant immediately.”

Trump’s onetime US Commerce Secretary, Wilbur Ross, concurred.

“Frankly, I think it’s a ridiculous proposal,” Ross said on Opening Bid.

Tesla (TSLA) CEO Elon Musk also had negative statements to share on the topic, proclaiming an unrealized capital gains tax would lead to “bread lines and ugly shoes.”

While Trump and Musk might deliver their messages to pack a wallop and make voters think, concerns aren’t necessarily unfounded.

Raymond James’s Adam has considered tax proposals made by both candidates, and thinks that regardless of the administration in office, higher taxes could impact households by almost $2,000. “[It] could be a big impact and a drag on the economy,” he said.

Both Harris and Trump face challenges given the expiration of a significant portion of the 2017 tax cuts at the end of 2025. Trump has proposed an additional extension of provisions from 2017 and potentially more tax cuts.

Harris proposed expanding the child tax credit and supported no increase in the capital gains tax, while taxing those making over $400,000 annually more.

While the presidential race is anyone’s game at this point, Adam isn’t that worried about an unrealized capital gains tax and the potential market losses. “[There’s] a low probability of it passing,” he said. “It’s pretty hard to mark to market every single year for your taxes.”

Three times each week, Yahoo Finance Executive Editor Brian Sozzi fields insight-filled conversations and chats with the biggest names in business and markets on Opening Bid. You can find more episodes on our video hub or watch on your preferred streaming service.

In the below Opening Bid episode, former Trump nominee to the Federal Reserve Judy Shelton shares her outlook for the economy.

Click here for in-depth analysis of the latest stock market news and events moving stock prices

Read the latest financial and business news from Yahoo Finance

Finance

Insider Sale: President Brian Hole Sells Shares of Willis Lease Finance Corp (WLFC)

Published

14 hours ago

August 31, 2024

Press Room

Insider Sale: President Brian Hole Sells Shares of Willis Lease Finance Corp (WLFC)

On August 30, 2024, President Brian Hole sold 1,187 shares of Willis Lease Finance Corp (NASDAQ:WLFC), as reported in a recent SEC Filing. Following this transaction, the insider now owns 96,589 shares of the company.

Willis Lease Finance Corp specializes in the leasing of spare commercial aircraft engines, aircraft, and other aircraft-related equipment to airlines, aircraft engine manufacturers, and maintenance, repair, and overhaul providers worldwide.

Over the past year, Brian Hole has engaged in multiple transactions involving the company’s stock, selling a total of 24,570 shares and purchasing none. This recent sale is part of a broader trend observed within the company, where there have been 82 insider sells and no insider buys over the past year.

Shares of Willis Lease Finance Corp were priced at $106.17 on the day of the transaction. The company currently holds a market cap of approximately $772.655 million. The price-earnings ratio stands at 8.41, which is below the industry median of 17.98.

According to the GF Value, the intrinsic value estimate for Willis Lease Finance Corp is $63.35 per share, making the stock significantly overvalued with a price-to-GF-Value ratio of 1.68.

The GF Value is calculated based on historical trading multiples, a GuruFocus adjustment factor, and future business performance estimates provided by Morningstar analysts.

This sale by the insider might be of interest to current and potential investors, providing insight into insider confidence and valuation perspectives at Willis Lease Finance Corp.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.

Finance

Super Micro Confirms It Will Delay Annual Financial Filings

Published

1 day ago

August 30, 2024

Press Room

Super Micro Confirms It Will Delay Annual Financial Filings

(Bloomberg) — Super Micro Computer Inc. said that it won’t file its annual financial report while a special board committee reviews internal controls, confirming a statement earlier this week that sent the shares on their worst drop in almost six years.