BILL OF INDICTMENT

IS THE HUMANE SOCIETY OF THE UNITED STATES (HSUS) A BENEVOLENT 

"ROBIN HOOD" OR A MANIPULATIVE AND MENACING "ROBBING HOOD?"  

YOU BE THE JUDGE OF THE FOLLOWING  FACTS

by Frank Losey

1. The Parent Company of the Ringling Brothers Circus has a pending Lawsuit in the Federal District Court in the District of Columbia that alleges the following violations of the HSUS:  Racketeer Influenced Corrupt Organizations (RICO) Act; Money Laundering; Bribery; Obstruction of Justice; Mail Fraud; Wire Fraud; Illegal Witness Payments; Virginia Conspiracy Act;  Conspiracy to Harm a Business; Abuse of Process; Malicious Prosecution; and a Fundraiser Held in Furtherance of the Schemes.
2. At least eight Members of Congress have contacted the Internal Revenue Service (IRS) and requested a review of  the lobbying activities of the HSUS in order to determine whether the HSUS has exceeded the U.S. Tax Code "Too Much Lobbying" Prohibition  for a tax-exempt organization.  If the HSUS has, it may lose its "PUBLIC CHARITY" EXEMPTION.
3. The IRS has received 1,628 Pages of Documents that chronicle the extensive lobbying activities of the HSUS, such as the quotes of the President of the HSUS who has repeatedly claimed to be responsible for the passage of over 1,000 Laws, including more than 25 at the Federal Level.
4. The Office of the Inspector General of the Department of Treasury has assigned a Case File Number (55-1111-0027-C) to a Fraud, Waste and Abuse Complaint that alleges improper IRS employee misconduct in the IRS Whistleblower Office, such as "covering-up" HSUS lobbying activities and "leaking" information to the HSUS so that the HSUS could delete incriminating information from its Website and its future Tax Returns.
5. At least Five Members of  Congress have asked the Justice Department, on behalf of their constituents, to determine if the HSUS and its Senior Leadership are in violation of the Lobbying Disclosure Act of 1995 because none are currently registered as a "Lobbying Organization" or as a "Lobbyist" despite their extensive and direct contacts with "Covered" Members of the Executive and Legislative Branches of Government.   For example, in 2011 the HSUS hosted an Awards Banquet that honored the 146 Members of Congress who best supported the Congressional Legislative Agenda of the HSUS - - 146 "direct contacts." 
6. The two most Senior Officers of the HSUS are the two most Senior Officers of the Humane Society Legislative Fund (HSLF), which is the self-described "Lobbying Arm" Subsidiary of the HSUS.  The HSLF controls three Political Action Committees (PACs), which have contributed Millions of Dollars to Hundreds of Candidates seeking Elected Office to Congress.   The HSLF has submitted in excess of 2,300 pages of lobbying related documents to the Federal Election Committee.  However, neither the HSUS, nor the HSLF, nor their two most Senior Officers are currently registered as "Lobbying Organizations" or "Lobbyists" as is required by the Lobbying Disclosure Act of 1995 when more than one direct lobbying contact is made with "Covered" Members of the Executive and Legislative Branches of Government.  
7. Each year the HSUS conducts Lobby Day Workshops in State Capitals and in Washington DC to "train" many of its more than 11 Million Members and constituents on how best and most effectively they may "lobby" their elected representatives to support the Legislative Agenda of the HSUS.  
8. During the last five years, the HSUS, through the "functionality of its website," has orchestrated Federal and State Legislators receiving potentially more than One Billion E-Mails.  If those E-Mails were stacked  on top of one another, the stack would tower over 30 miles high.
9. The USDA Office of the Inspector General is conducting an on-going investigation as to whether an unlawful "Conflict of Interest" occurred when it hired a former HSUS Litigation Attorney to become the Chief of its Enforcement Branch.  Most significantly, the Enforcement Branch Chief  is responsible for ensuring compliance with the Animal Welfare Act by all who are licensed by USDA.  This former HSUS Litigation Attorney, who has been assessing unprecedentedly high fines against USDA Licensed Breeders, had worked in the very same HSUS Litigation Office that has filed a Freedom of Information Act (FOIA) Lawsuit against the USDA.  This Lawsuit seeks such things as "Tax Return Information" supplied to the USDA by every USDA Licensed Breeder in Missouri - - discriminatory "targeting" by the HSUS.
10. The HSUS has never acknowledged that Pet Breeder Organizations in the 10 States where over 80% of all USDA Licensed Breeders are located have "Publicly Condemned Substandard Kennels."
11. The HSUS has never identified a single breeder anywhere in the U.S., by name, as being a responsible breeder.  In a November 16, 2009 E-Mail, the HSUS President suggested  that all responsible breeders are "puppy millers" - - the equivalent of a racial or ethnic slur.    Additionally, he suggested that all family farmers are "factory farmers," and all responsible hunters are "poachers."
12. After Hurricane Katrina devastated the Gulf Coast in 2005, the HSUS asked the public to make extra donations to the HSUS so that it could help the animals on the Gulf Coast.  Of the more than $31 Million that the HSUS collected that was to be used to help animals on the Gulf Coast, the HSUS publicly reported spending only a little more than $1,000,000 to build two new shelters in Louisiana and Mississippi.  "WHERE DID THE REST OF THE $31 MILLION GO?" 
13. In the last 10 years the HSUS has received over ONE BILLION DOLLARS ($1,000,000,000,000) of tax -exempt contributions.  While some have reported that the HSUS, which does not operate a single shelter anywhere in the U.S., contributes less than 1% of its revenue to help shelters, the HSUS claims that it spends up to 20% of its revenue helping to care for animals.  Even if you accept the 20% representation of the HSUS at face value, which is a dubious claim, "WHERE DID THE OTHER $800 MILLION GO?"
14. When the HSUS President was repeatedly asked to explicitly and publicly condemn those who violate the Animal Enterprise Terrorism Act (AETA), he did not do so.  Instead, embraced the concept of "civil disobedience" in a written response dated January 18, 2008, and suggested that this Federal Terrorism Statute was an "unjust law."  "This nation has a strong tradition of civil disobedience where people in a transparent, peaceful, non-violent way take action to draw attention  to unjust laws."    NOTE:  A violation  of the AETA may occur without violence.
15. When the Missouri Governor and the State Legislature refused to be "bullied" by the HSUS, the HSUS President publicly condemned the Governor and State Legislators with such quotes as "Democracy Neutered;" "Subverting Democracy, Abusing the Process;" Some lawmakers are thumbing their noses at a statewide vote of the people;" "There's been some very ugly, unfair, cruel and anti-democratic work;" "Shameful example of politics at its worst, with a narrow majority of lawmakers and now the governor subverting a vote of the people; and the most intimidating and chilling of all quotes:  "We will hold accountable the public officials."

BEHIND THE MASK OF DECEPTION WORN BY THE HUMANE SOCIETY OF THE UNITED STATES (HSUS)

·      Eight Members of Congress have requested the Inspector General of the Department of the Treasury to investigate "HSUS's apparent improper activities and its tax exempt status."  By letter dated April 18, 2011, six of these eight Members of Congress also asked the Treasury's Inspector General to "investigate IRS's potential failure to conduct a proper investigation pursuant to Congressman Leutkemeyer's March 23, 2010 letter."  The eight Members of Congress include Senator Lugar and Representative Visclosky from Indiana, Representative Young from Alaska, and Representatives Emerson, Hartzler, Long, Leutkemeyer and Graves from Missouri.

·      The Treasury's Inspector General for Tax Administration, by letter dated August 24, 2011, informed Senator Lugar from Indiana that his Office "recently initiated an audit to determine whether the IRS's Exempt Organizations function is accurately accounting for referrals of alleged violations of Federal tax law, acknowledging receipt to submitters, and tracking and monitoring the time frames for working referrals." 

·      During 2010 more than 6,000 concerned, tax-paying citizens from all 50 States wrote to the IRS and requested the IRS to investigate the excessive, prohibited, non-reported and under-reported lobbying activities of the U.S., which are the subject of 17 Formal Submissions to the IRS that are substantiated by 1,628 pages of incriminating and self incriminating documents.  These documents include:

1.   Extracts from HSUS Tax Returns that literally "brag" about all of its lobbying activities while claiming on other sections of its Tax Returns that none of its paid staff or volunteers lobby;

2.  Claims by the President and CEO of the HSUS that he and the HSUS are responsible for the passage of 1,000 laws - - some of the claims are recorded on CDs furnished to the IRS;

3.  Federal Election Commission Documents that reference nearly 3,000 pages of lobbying related documents that were generated by three subsidiary organizations and PACs of the HSUS which confirm that Millions of Dollars have been contributed to Hundreds of Federal Election Campaigns, and these expenditures do not include the Millions of Dollars expended by the HSUS at the State Level where it claims to be responsible for the passage of more than 525 State Statutes and Ballot Initiatives; and

4.   The failure to report any receipt of Membership Dues for the last five years, which could amount to more than $500 Million.

·      The Treasury's Inspector General has received a Documented Complaint that one or more IRS Employees has been improperly "leaking" portions of the above referenced 17 Submissions to the IRS to the HSUS.

·      The Office of the U.S. Attorney for the District of Columbia has received a Documented Complaint that the HSUS and Members of its Senior Leadership are in violation of the Lobbying Disclosure Act of 1995 because they have never registered as a Lobbying Organization or as Lobbyists with the two Houses of Congress, notwithstanding 1,000s of direct "lobbying contacts" for the purpose of influencing legislation.  In contrast, the President and CEO of the HSUS is a Registered Lobbyist in MO. 

         NOTE:  If the HSUS and its Senior Leadership had registered with both Houses of Congress, the          HSUS would be admitting that it has done excessive lobbying, which in turn, could result in        the IRS rescinding its tax-exempt, public charity status, and the HSUS could become subject to        the IRS assessing Tens of Millions of Dollars in back taxes, penalties and interest.

·      The Parent Company of the Ringling Brothers Circus has filed a Lawsuit against the HSUS, and alleged the following violations:  Racketeer Influenced Corrupt Organizations (RICO) Act; Money Laundering; Bribery; Obstruction of Justice; Mail Fraud; Wire Fraud; Illegal Witness Payments; Virginia Conspiracy Act;  Conspiracy to Harm a Business; Abuse of Process;  Malicious Prosecution; and a Fundraiser Held in Furtherance of the Schemes.

HAS THE HSUS “HIJACKED” THE APHIS OFFICE OF ENFORCEMENT?!

In May of 2010 the Inspector General of the USDA released a scathing report that criticized APHIS for placing too much emphasis on education and not enough on enforcement.  One of its recommendations included creating an Office within APHIS that would specifically focus on enforcement.  And the person who was hired to fill the new position was an attorney who had specialized in Animal Law Issues.  Her name is Ms. Sarah L. Conant, and she has been issuing a number of “enforcement” letters to dog breeders, and to at least one rabbit breeder with assessed fines up to $50,000 or more.  A sampling of some of Ms. Conant’s “legal qualifications” that may have been considered by the USDA when she was selected to fill the newly created APHIS position, which may give all responsible breeders a reason to say “OMG,” is set out below:

·     Ms. Conant was employed by the HSUS as a Litigation Attorney immediately before she was hired by the USDA.

·     Ms. Conant first became associated with the HSUS when she was designated as an HSUS Litigation Fellow.

·     In 2007 Ms. Conant was featured and quoted in a Virginia Law Publication entitled “Humane Society Lawyers Fight Culture of Cruelty, Government Bureaucracy.”  One of her quotes included the statement that “Humane Society lawyers are working with legislatures and in the courts to change laws that affect the lives of farm animals,” and that “they are forced to go state by state in this effort because there are very few federal laws regarding farm animals.”

·     Ms. Conant was employed by the HSUS in the same HSUS Litigation Office which was so actively involved in the Litigation last year that challenged placing the Proposition B Ballot Initiative on the November 2011 Ballot in Missouri.

·     Ms. Conant’s “Name” has appeared as Counsel of Record for the HSUS on Lawsuits and Complaints filed against Federal Agencies such as the Federal Trade Commission and the U. S. Department of Agriculture, which now is her current employer.  (Here it is significant to note that on at least one Lawsuit document that may be found on the HSUS Website, the name of “Sarah L. Conant” was no longer listed as one of the Counsel of Record, even though the originally filed document filed listed her name.  Surely the HSUS would not engage in a “COVER-UP!”  Or would it?!?!?!?!?!?)

·     Ms. Conant worked in the same HSUS Litigation Office that sued the USDA under the Freedom of Information Act last October.  This Lawsuit seeks personal, confidential and business sensitive information on every USDA Licensed Breeder in Missouri.

·       Ms. Conant is listed as the Vice Chair of the Animal Law Section of the DC Bar, and is listed as representing the HSUS with no reference to the position that she currently holds with USDA.

While some may suggest that Ms. Conant has appropriate qualifications to act as the Chief of the Enforcement Section of APHIS, I personally and professionally believe that an egregious “Conflict of Interest” exists.  In this regard, Rule 1.11 that is published by the American Bar Association specifically addresses “Conflicts of Interests For Former and Current Government Officers and Employees.”    The relevant language states: “a lawyer currently serving as a public officer or employee shall not participate in a matter in which the lawyer participated personally and substantially while in private practice or nongovernment employment, unless the appropriate government agency gives its informed consent, confirmed in writing.”    This is why a FOIA Request was submitted for a copy of the USDA “Informed Consent Document,” or a comparable “Conflict of Interest Document.”   In the Practice of Law, some would consider a Breach of the “Conflict of Interest” Standard to represent a serious issue that involves “Legal Ethics.”

Three Little “Dashes” of Potentially “Good News:”: 

·      First Dash:  On Monday, July 11, 2011, I received confirmation from the IRS that it had assigned a Case File Number (2011-010153) for the American Society for the Prevention of Cruelty to Animals (ASPCA).  Perhaps, just perhaps, someday the ASPCA will look back in the next year or so and wish that it had not thrown its “lot” in with the HSUS; that it had not contributed nearly $600,000 to the Proposition B Campaign in Missouri; that it had not been a Charter Supporter of the current and on-going “Your Vote Counts” Ballot Initiative Campaign in Missouri; and that it had not “hired away” from the HSUS Ms. Nancy Perry to fill its newly created position of Senior Vice President for Government Relations for the express purpose of overseeing the lobbying activities of the ASPCA in all 50 States, as well as at the Federal Level.

·      Second Dash:  On Tuesday, July 12, 2011, I received confirmation that the Inspector General of the USDA (USDA IG) had received a Fraud, Waste and Abuse Complaint that included a Freedom of Information Request for a “Conflict of Interest” Statement concerning Ms. Sarah L. Conant.  While there is no guarantee that the USDA IG will find wrongdoing on the part of Ms. Conant, the potential exists that the revelation about the specific duties that she performed on behalf of her prior employer could prove to be a major source of embarrassment for the USDA, and could “taint” the integrity of every single adverse action and all assessed fines against Breeders that occurred on “her watch.”    In this regard, Government Employees are expected not only to avoid “Conflicts of Interest,” but are expected to avoid any appearance of a “Conflict of Interest.”   This scenario raises Issues of “Legal Ethics” - - both for the USDA and Ms. Conant who is an attorney.

·      Third Dash:  On Wednesday, July 13, 2011, I received confirmation that the APHIS FOIA Office had received a FOIA Request for “information” concerning Ms. Conant, and that the APHIS FOIA Office has assigned Case File Number 11-645 to this FOIA Request with a suspense date of August 10, 2011 for its response to the FOIA Request.  Since it has been the HSUS that was submitting all of those FOIA requests for information about Missouri Breeders, it sure will be interesting to see if the HSUS objects to the release of information concerning Ms. Conant’s duties while she worked for the HSUS.  My oh my, won’t it be interesting to see how APHIS responds to a FOIA Request that might prove to be more than a “bit embarrassing.” 

When a breeder does not comply with the “Rules,” there are consequences.  When a Government Employee does not comply with the “Rules,”…………………….. Well, we’ll just have to wait and see!!!!!

Three Little “Dashes” and a “Pinch” of a “No I am not dreaming!”  The second Week of July brought a big smile to my face!    

What More Needs to Be Done to Hold the HSUS Accountable for Its Actions?:  Create a “FLOOD” of E-Mails from all 50 States to be sent to your respective U.S. Representative and your two U.S. Senators which will ask them to do what Seven Members of Congress have already done - - requested investigations by the Treasury’s Inspector General into the HSUS’s “apparent improper activities and its tax-exempt status.  THESE THREE E-MAILS WILL MAKE A DIFFERENCE; THEY WILL GENERATE MORE CONGRESSIONAL LETTERS THAT WILL PUT EVEN MORE PRESSURE ON THE IRS TO EXPEDITIOUSLY INVESTIGATE THE HSUS; AND THEY SHOULD TAKE NO MORE THAN 20 MINUTES TO DO THE FOLLOWING SIX THINGS:

1.     To send an E-Mail to your U.S. Representative, Log onto www.house.gov/writerep/

2.     Fill in your state and ZIP Code on the prompt that appears.

3.     Add your name, address and E-Mail address on E-Mail Form for your U.S. Representative; and on the Subject Line add: Request the Inspector General and the IRS Investigate the HSUS; and then add then add the message set out below.

4.     To send an E-Mail to your Two Senators, Log onto:    www.senate.gov/general/contact_information/senators_cfm.cfm

5.     Click onto the E-Mail Address for each of your two U.S. Senators.

6.     Add your name, address and E-Mail address on E-Mail Form for your U.S. Representative; and on the Subject Line add: Request the Inspector General and the IRS Investigate the HSUS; and then add then add the message set out below.

Suggested Text of E-Mail Message

“The IRS has received voluminous documentation that substantiates that the Humane Society of the United States (HSUS) - - a Public Charity - - has engaged in excessive, prohibited, and under-reported lobbying activities, and may have under-reported its revenue by over $500 Million. Significantly, the HSUS President and CEO has repeatedly stated that he has “helped to pass perhaps 1,000 laws.”

 Treasury Department, Six U.S. Representatives (Hartzler, Emerson, Luetkemeyer, Graves and Long from Missouri, and Young from Alaska) stated: “we write to request investigations by the Inspector General into HSUS’s apparent improper activities and its tax-exempt status.”  They further stated:  “If the HSUS is not complying with the law, it should be investigated and disciplined just like any other organization.”

With a National Debt of Trillions of Dollars, our Government needs to maintain the integrity of the U.S. Tax Code.  As your constituent, I am requesting that you confirm that you have sent a similar letter on my behalf to the Inspector General of the Department of the Treasury.

Thank You.”

Collectively, we can make a difference, and put the HSUS on the defensive.  If the HSUS can generate Millions of E-Mails to Members of Congress, surely we can generate hundreds of E-Mails from each and every State.  Let’s do it!

June 2011 Call to Action by Frank Losey

JUNE 2011 CALL TO ACTION:  NOW is the time for a “FLOOD” of E-Mails to be sent to your respective U.S. Representative and your two U.S. Senators.  THESE THREE E-MAILS WILL MAKE A DIFFERENCE; THEY WILL GENERATE MORE CONGRESSIONAL LETTERS THAT WILL PUT EVEN MORE PRESSURE ON THE IRS TO EXPEDITIOUSLY INVESTIGATE THE HSUS; AND THEY SHOULD TAKE NO MORE THAN 20 MINUTES TO DO THE FOLLOWING SIX THINGS:

1.  To send an E-Mail to your U.S. Representative, Log onto www.house.gov/writerep/

2.  Fill in your state and ZIP Code on the prompt that appears.

3.  Add your name, address and E-Mail address on E-Mail Form for your U.S. Representative; and on the Subject Line add: Request the Inspector General and the IRS Investigate the HSUS; and then add then add the message set out below.

4.  To send an E-Mail to your Two Senators, Log onto:    www.senate.gov/general/contact_information/senators_cfm.cfm

5.  Click onto the E-Mail Address for each of your two U.S. Senators.

6.  Add your name, address and E-Mail address on E-Mail Form for your U.S. Representative; and on the Subject Line add: Request the Inspector General and the IRS Investigate the HSUS; and then add then add the message set out below.

Suggested Text of E-Mail Message

“The IRS has received 1,628 pages of documents that substantiate that the Humane Society of the United States (HSUS) - - a Public Charity - - has engaged in excessive, prohibited, and under-reported lobbying activities, and may have under-reported its revenue by over $500 Million.  For example, the HSUS President and CEO has stated that he has “helped to pass perhaps 1,000 laws.”

In a Joint Letter dated April 18, 2011, which was addressed to the Inspector General of the Treasury Department, Six U.S. Representatives (Hartzler, Emerson,  Luetkemeyer, Graves and Long from Missouri, and Young from Alaska) stated: “we write to request investigations by the Inspector General into HSUS’s apparent improper activities and its tax-exempt status.”  They further stated:  “If the HSUS is not complying with the law, it should be investigated and disciplined just like any other organization.”

With a National Debt of over $61 Trillion, our Government needs to maintain the integrity of the U.S. Tax Code.  As your constituent, I am requesting that you confirm that you have sent a similar letter on my behalf to the Inspector General of the Department of the Treasury.”

Thank You.

NOTE:  If your U.S. Representative is either Representative Hartzler, Emerson, Luetkemeyer, Graves or Long from MO, or Representative Young from AK, your E-Mail Message should simply say: “THANK YOU for your Joint Letter to the Treasury’s Inspector General!!!!”

SIX MEMBERS OF CONGRESS JOIN THE CALL FOR IRS ACTION

THE SPEED OF THE IRS INVESTIGATION OF THE HSUS MAY 

BEGIN TO MOVE MORE QUICKLY!

An Update and Report by Frank Losey

A “Congressional Cavalry” of Six Members of Congress has now formally asked the Inspector General of the Department of the Treasury (IG) to “re-evaluate the tax-exempt status of the HSUS under the applicable legal standard” and to “investigate IRS’s potential failure to conduct a proper investigation.”  These requests were included in the signed Joint Letter that was dated April 18, 2011.  

The Six Members of Congress who signed the Joint Letter included Congresswomen Vicky Hartzler and Jo Ann Emerson from Missouri, Congressmen Blaine Luetkemeyer, Sam Graves and Billy Long from Missouri, and Congressman Don Young from Alaska.  Significantly, Congressman Young issued a Press Release dated March 30, 2011 in which he refused to accept an Award from the HSUS, and went on to say:  “HSUS are hypocrites, plain and simple, and I will not join them by accepting this award.”

In addition to attaching to the Joint Letter illustrative examples of documentation that showed the magnitude of the excessive lobbying by the HSUS, the Joint Letter also contained the two following, riveting quotes:  “We believe that HSUS’s own public documents show beyond question that lobbying is a ‘substantial part’ of its activities, and feel that IRS’s failure to act is attributable to the politically sensitive nature of HSUS’s activities.  Due to this, we write to request investigations by the Inspector General into HSUS’s apparent improper activities and its tax exempt status.” . . . “If the HSUS is not complying with the law, it should be investigated and disciplined just like any other organization, as taxpayers would be effectively subsidizing a political organization.”   Not only is this letter “HUGE,” but it could “breed” supplemental letters being sent to the Treasury’s IG from other Members of Congress.  

The pressure on the IRS to investigate the HSUS has never been greater!!!!!

When the Treasury’s IG is briefed by his Senior Staff about the April 18^th Congressional Joint Letter - - SUCH BRIEFINGS OCCUR WHEN A JOINT CONGRESSIONAL LETTER IS RECEIVED - - and learns that several thousand concerned citizens have also contacted the OIG Hotline Office by E-Mail or Phone, the room  temperature will rise in the Treasury’s IG Office!!!!!!  And this BRIEFING is an additional reason for another wave of E-Mails and Phone Calls to the OIG HOTLINE OFFICE to occur within the NEXT 30 DAYS.  Even if you have already sent an E-Mail or Called, do it again.   And encourage those who have not done so to E-Mail or Call.  NUMBERS DO MATTER, especially when such a high level Senior Official in the Treasury Department begins asking hard questions and is briefed  on  the  fact that the HSUS may have under-reported its revenue by over $500 Million; that over 6,000 tax-payers from all 50 States asked the IRS to investigate the HSUS; that a new wave of E-Mails and Calls is being received by  the OIG HOTLINE OFFICE; that the HSUS  claims credit for the passage of over 550 Federal and State Statutes; and that the IRS assigned a Tax Fraud Case File Number (29-92012) to the HSUS in November 2008 - - 29 months ago! 

E-MAIL ADDRESS for OIG:  Complaints@tigta.treas.gov   

(Subject:  OIG Case File 55-1005-0025-C)

OIG HOTLINE PHONE:  1-800-366-4484 (Press 5)

 (May be anonymous if you choose)

Suggested Short Message: 

“Would you please do what Six Members of Congress asked the Inspector General to do in their 

Joint Letter dated April 18^th.”  

Each E-Mail or Call will make a difference!