Dean Phillips’ Cayman Islands hedge fund…
Business Insider reports that Congressman Dean Phillips invested between $250,000 and $500,000 in the Cayman Islands, the “most notorious tax haven on earth.”
Phillips claims he didn’t direct the investment and is now moving all of his investments to a blind trust, but let’s be honest, that’s always what politicians say when they get caught.
NRCC Comment: “Dean Phillips supports raising taxes on hardworking Americans but stashed his cash in the world’s most notorious offshore tax haven.” – NRCC Spokesman Mike Berg
In case you missed it…
Phillips explains investment in Cayman Islands fund
Business Insider
Dave Levinthal
April 5, 2020
https://www.businessinsider.com/congress-stocks-markets-investments-cayman-islands-facebook-2021-4
Rep. Dean Phillips is one of Congress’ wealthiest members with his money invested in hundreds of stocks, bonds, and other financial vehicles, according to the Minnesota Democrat’s most recent annual personal financial disclosure filing.
One investment stands out, if only for its name: “CD&R Fund X Private Investors, Cayman LP,” in which Phillips disclosed investing between $250,000 and $500,000. (Lawmakers are only required to list the value of such assets in broad ranges.)
During 2019, the investment generated between $15,001 and $50,000 in “partnership income,” his disclosure states.
No further details are listed.
Financially speaking, the Cayman Islands are notable for their long history as a tax haven for wealthy individuals and companies. The particular Cayman Islands fund in which Phillips is invested was created in 2017 by J.P. Morgan Private Investments Inc., according to US Securities and Exchange Commission records.
Insider this week posed several questions to Phillips’ office about this investment. Among them: why did Phillips make this investment, does he reap tax benefits from it, and does he or a financial advisor manage his investment portfolio?
Bryan Doyle, Phillips’ communications director, replied with a statement.
“Congressman Phillips receives no special tax benefits for this investment, which was made by financial professionals at J.P. Morgan in 2017, not at his direction. As a member of the Ethics Committee, Dean adheres to the highest ethical standards, which is why he does not accept PAC money, federal lobbyist money, or donations from other members of Congress,” Doyle wrote.
“He has not initiated any investments — directly or by proxy — since becoming a member of Congress in 2019, and is in the process of placing all eligible investments into a blind trust, which is currently under review at the Ethics Committee,” Doyle continued. “The only aspect of his financial life that he plays an active role in is as the owner of Penny’s Coffee, a local chain of coffee shops in the Twin Cities area.”