Source of Yu funds remain a mystery

Friday, May 9, 2014 8:07 PM
Last updated Saturday, May 10, 2014 12:05 AM
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ATLANTA — The source of funds that U.S. House candidate Eugene Yu has funneled into his campaign remain a mystery, and his campaign is not returning requests for comment.

Yu, who is in second place in the Repub­lican race in the 12th District according to the latest poll, had loaned his campaign more than $736,000 as of April 30. But he did not list that much in liquid assets on his personal financial disclosure, and the income from his investments are a fraction of that amount.

After declaring bankruptcy in 2007, he might not be the model applicant for a bank, although he did list bank mortgages on his home and an Atlanta condo. The residence already had a second mortgage before he started his Senate campaign and later switched to the U.S. House race in the 12th District.

“I hope that Mr. Yu will operate with full disclosure and explain how he was able to loan his campaign over $700,000,” said William Perry, the executive director of the government-watchdog advocacy Common Cause of Georgia.

Yu, reached by phone Thursday, referred all financial questions to his campaign chairman, Wayne Brown. Brown has not returned messages left Thursday and Friday at the campaign; at his corporation, WayneWorks LLC; or at the telephone number Yu supplied for him.

WayneWorks gave $15,000 to the campaign in August even though federal law prohibits congressional candidates from accepting corporate donations. The campaign cashed the check instead of refusing it, even though it is in the same building as the company.

Federal election rules say that if a corporate gift is received, the campaign must refund it within 30 days of discovery, but the Yu campaign exceeded that period and appeared to have used the funds based on expenditures and the cash on hand at the time.

“They should have known that it was an illegal, corporate contribution,” said Bryan Tyson, a campaign attorney with Strickland, Brock­ington & Lewis.

The campaign lists its address as the corporate offices of WayneWorks but reported only token “rent and postage” for it, even though federal candidates must pay the fair-market rate to corporate landlords to avoid accepting discounted rent as a contribution.

Brown personally contributed more than the legal limit to the campaign, and the campaign was slow in refunding him, according to his campaign reports filed with the Federal Elec­tion Commission.

Yu’s financial disclosure included no more than $50,000 in cash in a money market account.

“I think it is reason to be skeptical. If you don’t have liquid assets and all of a sudden you have liquid assets,” Tyson said.

Campaign finance lawyer Stefan Passan­tino, the head of the political law team at McKenna Long & Aldridge, notes that Yu is not required to update his personal financial disclosure form because he filed it less than 12 months ago. So there is no reason for him to disclose any personal loans he might have gotten or the source until next year.

“I don’t know any facts that would indicate there was wrongdoing here,” he said.

Yu has an office building on Bertram Road that he rents for $100,000 yearly at most. The value of the building is between $1 million to $5 million on the federal forms, which don’t require more precise figures.

He lists stock in two companies, one of which has effectively folded. The other was listed at no more than $250,000.

“I don’t really consider that a lot of assets,” said Kent Balch, a veteran financial planner with First Fidelity Financial Group. “His ace in the hole could be that building. If he could sell it at any given moment, somebody might lend on that.”

Repaying it could be difficult because a 5-year loan at current rates on that amount would total 60 percent more than he lists as income from the rent and his other investments.

If Yu got a loan, it could only be for personal reasons and not simply to fuel the campaign through the back door, according to Tyson. The same with anyone making an outright gift to him personally, although there is no limit on what a candidate can lend or give to his or her own campaign.

The motives for making a loan or gift directly to a candidate could spur the curiosity the Department of Justice’s Public Integrity Section, which is charged with policing what are known as straw donors. Those could be put to rest if Yu has written arrangements or documentation of long-standing personal connections to his funding source.

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soapy_725
43676
Points
soapy_725 05/10/14 - 08:06 am
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Who spends millions to get a $175K job? Career politicians.
Unpublished

Who spends millions to get a $175K job? Career politicians.

soapy_725
43676
Points
soapy_725 05/10/14 - 08:07 am
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0
Mr. YU already belongs to someone. Bought & paid for. Oh YU!!
Unpublished

Mr. YU already belongs to someone. Bought & paid for. Oh YU!!

soapy_725
43676
Points
soapy_725 05/10/14 - 08:09 am
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0
YU. All American, hometown boy. Patriot. Businessman. POLITICO
Unpublished

YU. All American, hometown boy. Patriot. Businessman. POLITICO

soapy_725
43676
Points
soapy_725 05/10/14 - 08:10 am
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0
YU. Intrusive at BoJangles. Litter bug on highway right of ways
Unpublished

YU. Intrusive at BoJangles. Litter bug on highway right of ways

soapy_725
43676
Points
soapy_725 05/10/14 - 08:11 am
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Then there is the ALLEN Mafia. No shame. Stupid voters.
Unpublished

Then there is the ALLEN Mafia. No shame. Stupid voters.

445
Points
Lakeside95 05/10/14 - 12:46 pm
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Yu

Evidently Eugene Yu has already been given the 'How to be a (felon) Congressman' orientation.
With a skill not normally seen in new legislators, Yu has demonstrated the ability to creatively finance his campaigns. Yes, plural. Yu started the 2014 election cycle as a candidate in the GOP Senate primary to replace Saxby Chambliss who is retiring.

Yu switched races and qualified to run as a GOP candidate for GA12, the seat currently held by Democrat John Barrow. His ethics were immediately questioned since prior to his switch, Yu had endorsed and contributed to GA12 candidate Rick Allen. While this behavior is not technically illegal, it does serve as an anecdotal character assessment.

Earlier in the election season there were questions regarding the money donated to him while he was a Senate category. Some Yu supporters were unhappy by his change from Senate to Congressional race because at the time they contributed to Yu, they supported Allen for Congress. Now they were in a dilemma - who to support for GA12? Several donors did not change their support for Allen. There is no rule to require Yu to return contributions.

Yu's finances had been questioned early in the race due to his explanation for a bankruptcy. Yu shared that his military surplus supply business had a contract with the Venezuelan government to supply military surplus; the Venezuelan government failed to meet their contractual requirements and Yu lost money. (Big surprise that the Venezuelan government can't be trusted.)

Now we have this new information that Yu has accepted and spent illegal contributions to his campaign. Yu has also failed to be truthful on his campaign disclosures.

Yu has touted his public service experience, especially his time as a police officer. Obviously Yu believes he is above the law and has no problem with lying to suit his personal needs. In his campaign literature he says 'Washington could use some good Georgia values.' He also touts himself as a 'Principled Conservative'.

As we all know even criminals have principles - Yu's principles seem to be very different than most GA12 citizens.

Little Lamb
45379
Points
Little Lamb 05/10/14 - 04:07 pm
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0
Shady

Yu's former business down on Mike Padgett Hwy. was shady from the get go. Many, many, many transactions were cash only, and we are talking serious cash.

The IRS will never know how much personal and corporate income went unreported. You've got to admit he is slick.

fedex227
11179
Points
fedex227 05/10/14 - 05:10 pm
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0
$736,000 ??
Unpublished

Pfhh. I've got that much in my sock drawer. What's the big deal?

Lee Benedict
1572
Points
Lee Benedict 05/11/14 - 01:58 pm
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0
Yu is a joke sent by the

NRCC (as was Delvis Dutton) to dilute the Rick Allen - John Stone race since both have said that John "Coppertone Crybaby" Boehner needs to be removed as Speaker, and, who basically staffs the NRCC...why that'd be Boehner and Cantor and their associates. Stone's campaign fired a .22 in to its foot by spouting off lies at a Stone function about another candidate IN ANOTHER CONTEST and I know for a fact that it cost him several votes.

Perhaps Eugene Yu and Ron Cross have been exchanging ideas and strategy since they act quite similar.

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