The campaign of Republican gubernatorial candidate Ken Cuccinelli is bringing issue to media reports that a company formerly headed up by Democratic nominee Terry McAuliffe is under investigation by the Securities and Exchange Commission over its conduct in soliciting foreign investors.
Cuccinelli, the sitting attorney general, called on McAuliffe “step forward and answer questions regarding his efforts to secure visas for foreign investors, some of whom reportedly were a threat to our nation’s security, the ongoing Securities and Exchange Commission investigation and his continued refusal to release his tax returns demonstrating how much compensation he received from GreenTech Automotive. Virginians deserve answers and deserve them right now,” Cuccinelli said.
The Washington Post reported on Friday that GreenTech Automotive has been the subject of an SEC investigation since May, when the commission subpoenaed documents and bank records from a sister company to look into claims that the company guaranteed returns to foreign investors through a federal program that allows foreigners to gain special visas if they contribute at least $500,000 to create U.S. jobs.
McAuliffe, in a statement on the reports on the SEC probe, noted that he left GreenTech in December to focus on his gubernatorial campaign, and said that he first learned of the SEC investigation last week then the Post reached out to his campaign.
“I have no knowledge of the investigation other than what I have read in the papers,” said McAuliffe, who raised the specter of dirty politics in the leak of the report of the SEC probe, which came to light through the efforts of Republican Sen. Chuck Grassley of Iowa.
“I find it unfortunate that a Republican senator from Iowa – who has a long history of support for the EB-5 program – selectively released information for the purpose of partisan attacks instead of getting facts,” McAuliffe said.
More from McAuliffe’s statement:
“The EB-5 program is designed to inject capital into the American economy and to create American jobs. It has broad bipartisan support, including from every member of Virginia’s delegation and the current administration in Richmond. There has been widespread frustration, however, both inside and outside USCIS about the bureaucracy there and the pace of the investment program. Like many business leaders and political officials from both parties, I was among those who expressed frustration on several occasions to multiple individuals. I never asked for any preferential treatment, nor did I ever expect to receive any. Both Republican Senators from Mississippi also met with DHS to voice their concerns about the bureaucratic pace of the program.”
The Cuccinelli campaign responded to McAuliffe with a comment from campaign manager Dave Rexrode:
“Earlier today, in a press release that fell one step short of claiming a ‘vast right wing conspiracy’ against his candidacy, Terry McAuliffe insulted the intelligence of Virginians.
“The most significant point is not whether the Securities and Exchange Commission (SEC) investigation led to McAuliffe’s silent resignation from GreenTech Automotive, but that both the SEC and Department of Homeland Security are investigating actions taken by his company before he resigned as chairman. Tellingly, McAuliffe’s statement did not deny that central fact. The question is, what did McAuliffe andGreenTech do to warrant not one, but two federal investigations?
“The former Democrat National Committee chairman also deliberately misled Virginians when he addressed the EB-5 visa program. The question isn’t about the program itself, as even the best government programs are susceptible to fraud and reckless behavior, but the actions taken by GreenTech executives to fatten their pockets while risking national security.
“Rather than provide clarity regarding the situation, it’s unfortunate that Terry McAuliffe has decided to double down on denial, dishonesty and finger pointing.
“It is time for Terry McAuliffe to stop the political doublespeak and step forward and address this issue forthrightly. It is the minimum required from someone seeking the Commonwealth’s highest office.”
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