Judicial Watch Victory Appeals Court Slams IRS in JW's Case Against Rossotti
A decision by the United States Court of Appeals will force the Internal
Revenue Service and Department of Treasury to turn over documents
to Judicial Watch regarding former Clinton-appointed IRS Commissioner
Charles Rossotti. The three-judge panel overturned an earlier decision
by U.S. District Judge Ellen Segal Huvelle, also a Clinton appointee,
who had let the agencies off the hook. JW launched an investigation
against Rossotti for awarding IRS contracts to a company in which
he held stock, while serving as IRS commissioner a clear criminal
conflict of interest.
"This is a major step in the effort to hold Rossotti accountable
for his criminal behavior," said JW President Tom Fitton. "With
this decision, the roadblock has been removed and the pursuit of
justice may commence unfettered by government interference."
Judicial Watch’s case involves Rossotti’s relationship
with American Management Systems, a company he co-founded. During
his reign as IRS Commissioner under Clinton, Rossotti’s IRS
awarded millions of dollars of contracts to AMS, while Rossotti
continued to hold a $100 million interest in the company. Furthermore,
Rossotti¹s wife also served as outside legal counsel for the
company, clearly benefiting from IRS favoritism.
Though this clearly constituted a criminal conflict of interest,
Bill Clinton’s Treasury Department granted Rossotti an "ethics
waiver," enabling him to maintain his interest in AMS. The
waiver was seen as a quid pro quo, securing Rossotti¹s involvement
in illegal IRS audits against Clinton’s perceived political
enemies.
Judicial Watch filed Freedom of Information Act requests with the
IRS and Treasury Departments to get to the truth in the matter.
Both agencies stonewalled, arguing that greater specificity was
required in JW¹s FOIA requests. Clinton appointee Judge Huvelle
ruled in favor of the agencies, before being overturned by the Appeals
Court.
"We cannot imagine what else Judicial Watch could have said
to satisfy the government’s appetite for specificity,"
the court ruled. The agencies must now respond to Judicial Watch’s
information requests.
Thanks in part to pressure from Judicial Watch through its investigations,
Rossotti eventually sold his interest in AMS. However, justice will
not be done until the former Commissioner is prosecuted to the fullest
extent of the law.
Not coincidentally, he is also the Clinton IRS Commissioner who
initiated illegal audits against many conservative groups and JW’s
clients like Gennifer Flowers, Paula Jonea and Billy Dale.