As we speculated might be the case, the tax implications of paying a call girl ring with corporate money has tripped up one Charlotte businessman. Will there be more?
For now The Charlotte Observer reports that James C. Smith, president of paving and contracting companies Red Clay Industries and Red Clay Aggregates, has pled guilty to a federal tax charge. Specifically, the feds said that Smith characterized monies paid to HushHush.com’s business front, Soft Touch Associates, as advertising expenses. Lemme guess, product launch? Hey now!
According to the Charlotte Chamber of Commerce’s list of million-dollar companies, Red Clay Industries had $11.2m. in sales and employed 45 in 2007. The company also sponsored an Arena Racing League car.
According to FEC records Smith gave $2000 to the Bush-Cheney campaign in February 2004. Listed as Smith’s home address was a home in a neighborhood of million-dollar estates just over the county line in Union County. In July 2005 Smith contributed $500 to the National Republican Congressional Committee.
State records indicate that Smith game $1000 to the NC Republican Executive Committee in November 2004 and $300 to a builders PAC in 2007.
More secrets to come?
Update: Here’s an odd thing. State records also show Smith contributed $100 to the Democratic candidate for state treasurer, Wake County state Sen. Janet Cowell back on May 3rd. This was months after the HushHush scandal broke and after it was clear that Sallie Saxon was dealing with authorities.
Cowell is beloved by the state’s lefty power elite and counts judges and insiders among her supporters. Why would a confirmed GOPer suddenly swing her direction?
