Got it? Winery? Open. Kid’s 25,000 a week private school? Open. Moving to a County magically not on the “Watch List”? Yup, got that too.
Then there is this bombshell uncovered by Jennifer Van Laar at Redstate:
- Gavin Newsom’s $3.7 million, 12,000 square foot mansion, on 8+ acres along the American River in Sacramento, was the area’s most expensive home sale in 2018
- The gated estate consists of a 6 bedroom/10 bath home, a guest house, a pool, a tennis court, and a wine cave
- An LLC registered to Newsom’s cousin, long-time business partner, and Co-President of PlumpJack, Jeremy Scherer, paid cash for the estate in December 2018
- Newsom’s spox, though, claimed in Jan 2019 that it was Newsom who’d paid cash for the home – puzzling, since Newsom still carried a $3.2 million mortgage on his prior home
- In Oct 2019 the LLC gifted the home to the Newsoms free and clear, claiming Newsom was a member of the LLC to avoid a $4,000 Transfer Tax
- In January 2020 the Newsoms received $2.7 million tax-free when they obtained a cash-out refinance
- Newsom’s financial disclosure forms don’t mention the LLC or the gifts, which far exceed the $500 limit
- In 2003, Newsom was cited for failing to disclose $11 million in real estate and business loans
With that knowledge, the Grant Deed giving the Newsoms title to the Fair Oaks property is evaluated in an entirely different light – it’s now a gift, according to corporate law attorneys RedState spoke to about the transaction. It’s not illegal for an LLC to gift property to a person who’s not a member, but the attorneys said they’ve never taken part in such a transaction nor would they ever allow a client to. Such a transaction raises major red flags for tax and regulatory agencies, they said, since it may indicate attempted tax fraud, money laundering, or a payoff/bribe.
Gavin Newsom has been an elected official in California for 23 years, so he’s been obligated to file annual financial disclosure reports under California’s Political Reform Act for 23 years, and is well aware of his legal obligations to report companies he owns a stake in and allowable/reportable gifts.
Yikes. Given that Gavin Newsom’s popularity is tanking, and that internal party leaders are not as enamored with him as they once were… you have to wonder when they will pull the ripcord on this guy.
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