Sons of Confederate Veterans broke state and federal law
A new report is raising questions about federal tax and campaign finance law violations by NC Sons of Confederate Veterans, the white supremacist group which benefitted from the UNC Board of Governors’ “Silent Sham” settlement and multi-million-dollar payout.
The Daily Tar Heel published internal SCV documents that show the group making illegal political donations and operating a political action committee in violation of its tax-exempt status.
John Wallace, former assistant attorney general in the N.C. Department of Justice's antitrust division told the DTH that under no circumstances is a 501(c)(3) organization legally permitted to create and operate an active PAC.
“The SCV misrepresented their eligibility to serve as a sponsoring organization for the purportedly affiliated committee,” Wallace said.
“Misrepresenting its qualification to the State Board staff results in violations both of state law and the C3 status of SCV. Further, SCV has accepted contribution as deductible when in fact such contributions should not be deductible by their donors, given the political activity of SCV.”
An affiliated motorcycle club called the Mechanized Cavalry, also run by SCV leader Kevin Stone, was found to have violated the same tax and campaign laws.
The report shows evidence that both groups funneled membership money into a political action committee called the NC Heritage PAC, which illegally donated to GOP lawmakers who are sympathetic to the groups' neo-Confederate ideals.
The Daily Tar Heel sued the UNC Board of Governors last week over the Silent Sam bribe, alleging that the BOG violated state open meetings laws by making secret deals with the Sons of Confederate Veterans behind closed doors without any public input.
Bottom Line: The UNC Board gave millions to a neo-Confederate group which appears to be illegally funneling endorsement money to state lawmakers. North Carolina deserves leaders who will not put special interests before the people -- especially the interests of white supremacist groups like the Sons of Confederate Veterans. The UNC Board, NCSCV, and the state lawmakers who received illegal donations should be held accountable.