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.








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