24 Mar 2009

Chris Dodd’s Humble Irish “Cottage”

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WSJ:

The story starts in 1994, when the Senator became one-third owner of a 10-acre estate, then valued at $160,000, on the island of Inishnee on Galway Bay. The property is near the fashionable village of Roundstone, a well-known celebrity haunt. William Kessinger bought the other two-thirds share in the estate. Edward Downe, Jr., who has been a business partner of Mr. Kessinger, signed the deed as a witness. Senator Dodd and Mr. Downe are long-time friends, and in 1986 they had purchased a condominium together in Washington, D.C.

Mr. Downe is also quite the character. The year before the Galway deal, in 1993, he pleaded guilty to insider trading and securities fraud and in 1994 agreed to pay the SEC $11 million in a civil settlement. The crimes were felonies and in 2001, as President Clinton was getting ready to leave office, Mr. Dodd successfully lobbied the White House for a full pardon for Mr. Downe.

The next year — according to a transfer document at the Irish land registry… — Mr. Kessinger sold his two-thirds share to Mr. Dodd for $122,351. The Senator says he actually paid Mr. Kessinger $127,000, which he claims was based on an appraisal at the time. That means, at best, poor Mr. Kessinger earned less than 19% over eight years on the sale of his two-thirds share to Mr. Dodd. But according to Ireland’s Central Bank, prices of existing homes in Ireland quadrupled from 1994 to 2004. …

In his Senate financial disclosure documents from 2002-2007, Mr. Dodd reported that the Galway home was worth between $100,001 and $250,000. However, Mr. Rennie reports that in 2006 and 2007 the Senator added a footnote that reads: “value based on appraisal at time of purchase.”

Mr. Dodd had good reason to add the qualifier. Senate rules call for valuations to be current and anyone who looked into the estimate would immediately spot Mr. Dodd’s lowballing. A June 17, 2007 feature in Britain’s Sunday Times did just that. “Diary” observed that in Roundstone “a two-bed recently made E680,000 ($918,000) and a cottage is currently on offer for E800,000.” Noting Mr. Dodd’s estimate of his property — between E75,000 and E185,000.

Toby Harnden at the Telegraph:

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One Feedback on "Chris Dodd’s Humble Irish “Cottage”"

Brid Caomanaig

I’d be interested in known, if I could stay in Christopher Dodd’s Irish Cottage when visiting County Galway, Ireland?



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