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REPORT: Perdue Sold Pricey D.C. Townhouse Off Market to Finance Industry Official Whose Organization Lobbied on Bill Before His Senate Committee

Four Local Real Estate Experts Agree––Price Perdue Garnered Was Above Market Value

Latest Perdue Conflict Of Interest In Washington Potentially Another “Violation of His Ethical Obligations”

A new ProPublica investigation uncovered a fresh set of potential new ethics violations for corrupt Washington politician Senator David Perdue. Perdue sold his D.C. townhouse in an off market deal to a finance industry official whose organization, the Financial Industry Regulatory Authority (FINRA), falls under the jurisdiction of Perdue’s Banking Committee. ProPublica found that the off market deal raises “serious suspicions as to whether the sale was in fact at fair market value” and multiple local real estate experts agree “that the almost $1.8 million sale price Perdue garnered seemed high.”

Perdue made the off market deal around the same time FINRA was lobbying the Senate about a bill being considered by the Senate Banking Committee. ProPublica notes that “ethics experts are generally troubled when politicians enter into transactions with people who have business before them.” If Perdue’s off market sale was above fair market value, he would be required under Senate Ethics rules to disclose it as a gift. Notably, “Perdue did not disclose any such gifts” and his office “declined to say” if he notified the Senate Ethics Committee prior to the sale. One ethics expert called the deal a potential “violation of his ethical obligations and an opportunity for those with business pending before Perdue’s committee to curry favor.”

The bombshell report follows weeks of continued scrutiny over Senator Perdue’s prolific self-dealing and favors to his special interest donors that have raised questions about the ultra-wealthy corporate insider’s conflicts of interests and suspiciously well-timed stock trading.

“This new report is just the latest in a seemingly never-ending series highlighting Senator Perdue’s ethical conflicts of interest in Washington,” said DSCC spokesperson Shea Necheles. “Time and time again, Perdue has shown Georgians he is nothing but a corrupt politician who abuses his office for shady self-dealing and crooked behavior.”

IN CASE YOU MISSED IT

ProPublica: Sen. David Perdue Sold His Home to a Finance Industry Official Whose Organization Was Lobbying the Senate

By Robert Faturechi

Key Points:

  • Sen. David Perdue, R-Ga., sold his Washington, D.C., home last year to a brokerage industry official whose organization is under the purview of a committee Perdue sits on.
  • The deal was made off market, without the home being listed for sale publicly.
  • Ultimately, congressional ethics experts said, their concern was that Perdue sold privately and to someone whose organization that he oversaw as a senator.
  • “Determining fair market value is always a gray area, unless the sales are done in a competitive open market,” said Craig Holman with the watchdog group Public Citizen. “Since the purchase and sale of this property by Sen. Perdue was not done on the open market, it raises serious suspicions as to whether the sale was in fact at fair market value.”
  • If the price was above fair market value, Holman said, “this would be a violation of his ethical obligations and an opportunity for those with business pending before Perdue’s committee to curry favor.”
  • Perdue has faced multiple allegations that he has mixed his private financial interests with his official work. The most prolific stock trader in the Senate, he bought and sold shares in companies that the committees he sits on have jurisdiction over. Some of his trades came at fortunate times. Earlier this year, the Justice Department investigated him and other lawmakers for possible insider trading. Perdue denied the allegations. Prosecutors ultimately decided not to bring charges against him.
  • Perdue’s home buyer in October 2019 was Hillary Sale, a board governor for the Financial Industry Regulatory Authority, a privately funded self-regulatory body for the securities industry. The organization falls under the purview of the Senate Banking Committee, which Perdue sits on. Earlier in 2019, FINRA was lobbying on a bill out of the banking committee that would have required the organization to establish a fund to pay investors bilked by brokers.
  • Perdue may have saved thousands by not putting his house on the open market.
  • At the time of the sale, FINRA was lobbying the Senate, according to its disclosure forms, and earlier that year its lobbyists were specifically focused on a bill that would have required the organization to establish a relief fund to provide investors with arbitration awards that went unpaid by FINRA’s brokerage firms and brokers.
  • The committee had also held hearings that included harsh assessments of how well FINRA was policing its own.
  • Perdue’s office declined to answer questions about where the senator stood on the bill, which did not pass, or whether he took any actions on it.
  • Ethics experts are generally troubled when politicians enter into transactions with people who have business before them. The legality of this sale hinges on whether the home was purchased at fair market value. If it was purchased for more than that, it would be considered a gift. Gifts of significant value to senators are required to be publicly disclosed. Perdue did not disclose any such gifts.
  • In order to avoid the appearance of a conflict, members of Congress who are buying or selling properties should do so on the open market to help ensure the price paid is fair and to avoid deals with people who have business before them, ethics experts say.
  • One agent, assuming Perdue did not make significant improvements to the property while living there, priced the home at around $1,650,000. That would mean Perdue sold for about 8% over market.
  • A second agent said the price also seemed high. A third agent said it seemed slightly above market. A fourth said the expected range for that property at the time would have been between $1.75 million and $1.785 million, a shade under Perdue’s $1.789 million sale price.

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