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Pritzker says he doesn’t own that offshore company

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* From yesterday’s Tribune story on JB Pritzker’s finances…

Pritzker is the sole owner of Moreau Capital Holdings […]

To complete the $191,000 land purchase, Seadog and Entertainment Cruises [owned by JB and his brother Anthony Pritzker] filed required paperwork with the city disclosing economic interests behind the deal for public land.

* Pritzker campaign…

Reporters – please see below response from the Pritzker Campaign to several of your questions regarding Moreau Capital Holdings.

Despite the Tribune erroneously reporting that JB is the “sole” owner, JB is not the owner of Moreau Capital Holdings. He is a beneficiary of the trust that owns Moreau Capital Holdings. If you look at the document the Tribune posted in the article, they purposely failed to disclose the part of the document directly above the listing of JB’s name. It does not say that JB owns the entity.

Instead, it says that if the entity is a legal entity, please provide information for each person having a “direct or indirect beneficial interest (including ownership) in excess of 7.5%.” It goes on to give examples including the “interest of a beneficiary of a trust, estate or other similar entity.” Furthermore, their selective clips of the full document fails to mention that JB did not sign the affidavit saying he owned anything. The affidavit was submitted and signed by the foreign trust company in response to who had a beneficial interest in the property.

Additionally, as JB said last night, underlying assets in which he benefits are listed on his statement of economic interest, including Entertainment Cruises, which is on page 6 of the statement of economic interest.

I noticed some of this when I was perusing the Tribune’s document page. So, I Googled “Moreau Capital Holdings Limited” and got the whole city filing, which you too can read by clicking here.

* Tribune version…

* The full version, which shows that Pritzker has a direct or indirect interest or ownership (the Pritzker campaign explains it as an indirect ownership) in excess of 7.5 percent, but doesn’t show that he is the “sole” owner as the Tribune claimed…

* The Tribune didn’t post this part at all, which shows a disclosure form was filed by the foreign trust company and not Pritzker…

He did not sign that particular affidavit. If you click here you’ll see he did sign later affidavits that don’t mention the trust funds. I’m not yet sure why.

* Also, Entertainment Cruises is on page 6 of Pritzker’s economic interest statement. Click here for that.

posted by Rich Miller
Thursday, Mar 15, 18 @ 3:23 pm

Comments

Very odd……

Comment by Rocky Rosi Thursday, Mar 15, 18 @ 3:29 pm
More evidence that the tribune is corrupt. Instead of operating as a independent newspaper they operate as a member of the Rauner campaign.

Comment by Real Thursday, Mar 15, 18 @ 3:30 pm
First leaked FBI tapes and now this. I’d say Tronc is out to get him.

Comment by Da Big Bad Wolf Thursday, Mar 15, 18 @ 3:30 pm
Sneaky Tribune. Very sneaky.

It seems to me that those that don’t like Pritzker will brush this off as semantics, while those who like Pritzker will say this completely discredits the Tribune article. I’m not sure what this does for undecideds though, which is the whole ball game at the moment.

Comment by Chicago_Downstater Thursday, Mar 15, 18 @ 3:30 pm
The Seadog is kind of nickel-and-dime stuff for a multi-billionaire, is it not?

Comment by wordslinger Thursday, Mar 15, 18 @ 3:30 pm
This is the stuff that will continue after March 20, if he wins.

They know that, right?

Comment by Oswego Willy Thursday, Mar 15, 18 @ 3:31 pm
“Ducks Sink Pritzker”

Comment by Oswego Willy Thursday, Mar 15, 18 @ 3:33 pm
===This is the stuff that will continue after March 20, if he wins.===

What? Sloppy reporting? Yeah, that will probably continue for a long time.

Comment by 47th Ward Thursday, Mar 15, 18 @ 3:34 pm
Ya’ know - maybe if Pritzker would disclose his full taxes we’d know more? Or maybe if Pritzker would have actually answered reporters’ questions we’d know more?

Comment by SaulGoodman Thursday, Mar 15, 18 @ 3:35 pm
Pritzker certainly isn’t my first choice, but this seems like some questionable journalistic work being done by the Tribune.

Comment by Techie Thursday, Mar 15, 18 @ 3:38 pm
Nothing about this is sloppy reporting. It’s intention was to mislead.

Comment by Real Thursday, Mar 15, 18 @ 3:40 pm
Explaining = losing. No voter believes that Pritzker is hiding cash offshore for “charity” purposes.

Comment by john rawlssss Thursday, Mar 15, 18 @ 3:40 pm
===“Ducks Sink Pritzker”===

“Remember the Maine”

Capiche?

Comment by Oswego Willy Thursday, Mar 15, 18 @ 3:40 pm
As we know, truth is not a requirement for a Rauner hit ad.

Comment by Norseman Thursday, Mar 15, 18 @ 3:42 pm
There are lots of questions here.

Comment by Anonymous Thursday, Mar 15, 18 @ 3:42 pm
So wait, he discloses an ownership stake in Entertainment Cruises and actively particpates in it’s operations, right? Even though his stake only derives from a company owned by a trust for his benefit?

Honestly, I wonder how JB makes his money period. Where’s a guy who only makes $15m a year get all that cash for this campaign?

Comment by LakeviewJ Thursday, Mar 15, 18 @ 3:43 pm
Charity is the worst lie you can come up with pritzker

Comment by Anonymous Thursday, Mar 15, 18 @ 3:43 pm
It says Jay Robert Pritzker owns 100% of Moreau.

So is JB arguing that being a 100% owner doesn’t make him the sole owner?

Professor Biss may disagree with the big man on that one.

Comment by Fax Machine Thursday, Mar 15, 18 @ 3:44 pm
When did the city decide to sell the property? Did JB approach them first or was it on market? City approves everything including an ordinance then publishes for 3 weeks to see if any other buyers with plans out there. Of course none and JB gets property. Not JB fault but the way it is handled makes certain right buyers get property

Comment by DuPage Saint Thursday, Mar 15, 18 @ 3:46 pm
It says 100% under percent interest in the disclosing party.

That means he is the sole owner.

JB - stop lying.

Comment by Fax Machine Thursday, Mar 15, 18 @ 3:47 pm
Ahh, The Chicago Tribune.
When it’s not heartily endorsing Gary Johnson for president, it’s busy fabricating lies about Rauner’s strongest opponent.

Comment by Northsider (the original) Thursday, Mar 15, 18 @ 3:47 pm
As much as I’d like to make a snarky comment about this being a Kristen & Kass Production, seriously these errors, on the journalism scale, as big Whitewater and the Iraq War.

Comment by Smitty Irving Thursday, Mar 15, 18 @ 3:54 pm
JB doesn’t own that company, a trust whose sole beneficiary is JB owns that company.

And, and that company just happened to invest in one of JB’s ventures. A happy coincidence, I’m sure.

Comment by truth Thursday, Mar 15, 18 @ 3:54 pm
It’s propaganda, not journalism, to selectively use evidence to conveniently leave out the evidence contrary to the story line.

Comment by anon2 Thursday, Mar 15, 18 @ 3:59 pm
F. Scott Fitzgerald: “The rich are different from you and me, Ernest.

Comment by don the legend Thursday, Mar 15, 18 @ 4:00 pm
Says 100%, how does he not own the whole thing?

And if this is what they believe, why didn’t they have it prepared yesterday? Amateur hour.

Comment by Lil Lebowski Urban Achiever Thursday, Mar 15, 18 @ 4:08 pm
Moreau Trust provided the Pritzker foundation $22 million of the $100 million that went to the Northwestern Law School, and the US address they use is the same South Dakota address of other entities that have been tied to him. So I guess my main question would be whether he is “a” beneficiary of the trust or “the” beneficiary of the trust.

(Seriously, if he had just been transparent about things like that, then there would be far fewer questions.)

Comment by Juice Thursday, Mar 15, 18 @ 4:12 pm
The Trib is owned by a plutocrat Rauner-backer named Michael Ferro. It is run by the loyal servant of plutocrats, Bruce Dold. A return to the yellow journalism of old is all this is.

Why anyone would want to pay money to read it, and why Democrats still grovel for its endorsements like it’s a fair arbiter of truth rather than a partisan house organ, I don’t understand.

Comment by Moe Berg Thursday, Mar 15, 18 @ 4:17 pm
Not a big deal. I mean, who among us can keep track of all the companies we own? /s

Comment by Ron Burgundy Thursday, Mar 15, 18 @ 4:17 pm
I’m not quite sure that I see the big distinction between being the owner of Moreau Capital Holdings and being the beneficiary of the trust that owns Moreau. Maybe it’s a legal distinction that makes a difference on whether he has a legal defense to a charge that he improperly disclosed, but to regular people I’m not sure I see the difference. He gets money — directly or indirectly — from a Caribbean trust not created by his grandfather.

I’m with the posters who say that if he had just been transparent about his finances this would not look bad. I don’t know that this shows he’s corrupt or bad, but it provides unnecessary fodder to Rauner should Pritzker be the nominee.

Comment by You could say that, I couldn't Thursday, Mar 15, 18 @ 4:21 pm
Beneficiary isn’t the same as owner. If you have an IRA I bet they ask you to list some beneficiaries. That doesn’t mean they can help themselves to your IRA.

Comment by Da Big Bad Wolf Thursday, Mar 15, 18 @ 4:27 pm
@You Can Say -

1) the beneficiary of the trust has no control, the trustees do.

2) the argument of tax evasion falls on its face if he is not the trustee, but only the beneficiary. The beneficiary has no liability for taxes arising out of the operation of the trust.

Legally, it’s like arguing all Anhueser Busch employees are tax dodgers because their employer is headquartered oversees.

Comment by Thomas Paine Thursday, Mar 15, 18 @ 4:28 pm
==I’m not quite sure that I see the big distinction between being the owner of Moreau Capital Holdings and being the beneficiary of the trust that owns Moreau.==

If you own something, you control it. If you’re the beneficiary of the trust that owns something, you don’t control it, the trustee does.

Tronc probably doesn’t mind that it got found out on the second day, it already got Kennedy saying JB should drop out.

Comment by Arsenal Thursday, Mar 15, 18 @ 4:30 pm
I want to give Pritzker the benefit of the doubt here but am legit confused how the campaign’s proof he is not the sole owner is a second doc showing him having 100% interest in the company.

If Pritzker survives he needs to respond to every money hit with a Rauner counterpunch because these convoluted explanations just raise more questions.

Comment by hisgirlfriday Thursday, Mar 15, 18 @ 4:31 pm
== am legit confused how the campaign’s proof he is not the sole owner is a second doc showing him having 100% interest in the company==

It’s because it’s an *indirect* interest as he’s the beneficiary.

Comment by Arsenal Thursday, Mar 15, 18 @ 4:34 pm
==the argument of tax evasion falls on its face if he is not the trustee, but only the beneficiary.==

This part is true, too.

Doesn’t matter. Trib did what it wanted to do.

Comment by Arsenal Thursday, Mar 15, 18 @ 4:36 pm
You would think we all learned our lessons after voting in Blago twice but now the electorate is again about to be snookered by money bags J.B.

Comment by Sue Thursday, Mar 15, 18 @ 4:49 pm
Trib with egg on it’s face. They can’t drop a story like this less than a week before the election, while voting is going on, without either triple checking the facts or losing credibility.

And those selectively cropped images suggest they didn’t triple check the facts.

Comment by Anonymous Thursday, Mar 15, 18 @ 4:53 pm
Wait, his explanation is that the trust owns it, not him?

My Parents set up a trust for their assets, does that mean that they don’t own them?

Comment by ChrisB Thursday, Mar 15, 18 @ 5:01 pm
That was hilarious watching that broken record spin at the debate

Comment by Thomas Zane Stepp Thursday, Mar 15, 18 @ 5:06 pm
Who are the trustees, if JB is the sole beneficiary?

Comment by SammyG Thursday, Mar 15, 18 @ 5:39 pm
Chris B, it depends. In your parents’ case, did their lawyer set it up so their assets would go to you and your siblings? How was it set up? Who is the beneficiary?

Comment by Da Big Bad Wolf Thursday, Mar 15, 18 @ 5:45 pm
What I can’t figure out is - this is an entity worth beaucoup bucks, but they’re filling out the forms by hand?

Comment by West Side the Best Side Thursday, Mar 15, 18 @ 6:20 pm
===What I can’t figure out is - this is an entity worth beaucoup bucks, but they’re filling out the forms by hand?===

No electronic footprint.

Comment by Oswego Willy Thursday, Mar 15, 18 @ 6:22 pm
=== My parents set up a trust for their assets, does that mean they don’t own them? ===

Correct. The trust owns those assets now. The trustee of the trust controls the assets. Now, one or both of your parents are likely the trustee, but Pritzker makes it clear he is not a trustee.

Have the reporters gone into their bunkers on this one? Where is the Tribune lawyer that signed off on this? How about the business reporter they comsulted with?

This seems to be bad — really bad — factchecking.

Comment by Thomas Paine Thursday, Mar 15, 18 @ 7:12 pm
Thomas Paine -
Perhaps the Tronc writers consulted with Jeff Gerth or Susan Schmidt or Judith Miller?

Comment by Smitty Irving Thursday, Mar 15, 18 @ 7:20 pm
=== My parents set up a trust for their assets, does that mean they don’t own them? ===

Correct. The trust owns those assets now. –

Revocable and irrevocable are key words here.

Trump, like Rauner, tried to imply that he had set up a “blind trust” like other presidents have, but he knows everything that he owns, can track its progress and it is revocable so he can take direct control at any time.

Plus, two of the three trustees are his sons. Not exactly an arms-length arrangement.

Comment by wordslinger Thursday, Mar 15, 18 @ 7:28 pm
Isnt this the trust set up by Pritzker? What purpose would there be to set up a trust with yourself as the sole beneficiary and only person with an ownership interest (see 2nd doc) - other than tax minimization? There’s nothing wrong or immoral about this. He should just acknowledge it.

Comment by Anon Thursday, Mar 15, 18 @ 8:40 pm
The Tribune knows estate planning is common but can be complicated, so they published it 5 days from the election to attempt to disrupt and distract.
Any proof of illegality ? Nope.
Any proof of misrepresentation or lies ? Nope.
Complicated estate planning ? Maybe.
Wide eyed, screeching Chris Kennedy ? Definitely.

Comment by Scott Fawell's Cellmate Thursday, Mar 15, 18 @ 8:51 pm
For those inclined to wade through mind-numbing financial stories, I think the assessor story on the other thread has way more legs.

Two billion in tax liability transferred from the top 10% to everyone else is pretty, pretty, pretty easy to understand and will boil anyone’s blood.

I imagine Berrios is going to get beat like a rented mule. And what’s the point of a county chairman who can’t get himself re-elected?

Comment by wordslinger Thursday, Mar 15, 18 @ 10:01 pm