David Brock's Media Matters Has Hidden $1,052,500 From The IRS Since 2010

Tyler Durden's picture

Submitted by Andrew Kerr via TheCitizensAudit.com,

  • Uncovered financial statements expose Media Matters.
  • The organization received $1,052,500 in sublet rental income from 2010 to 2014, but failed to report this income to the IRS.
  • Instead, key players pocketed this money for their own personal use.

David Brock, recently described by Politico as “the Democrats’ dark-arts master,” has some explaining to do.

His organization, Media Matters for America, has failed to report to the IRS over $1 million in sublet rental income from 2010 to 2014.

David Brock and his allies are most likely pocketing that money for themselves.

 

Media Matters shares office space with 13 separate organizations

The 13 organizations are documented in a previous report.

Media Matters holds the lease to the 6th floor of 455 Massachusetts Avenue NW in Washington D.C, and the other organizations sublease space from Media Matters.

For example, here’s a rent payment American Bridge 21st Century made to Media Matters in 2014.

There’s nothing wrong with over a dozen organizations sharing office space, but there’s a lot wrong with how Media Matters fails to report their sublet rental income to the IRS.

 

Financial Statements for Media Matters

Audited financial statements for Media Matters from 2007 to 2014 can be found in the Massachusetts non-profit document search database using the following credentials:

media-matters-massachusetts

In comparison to Media Matter’s IRS form 990 annual returns, these financial statements provide much more insight into how Media Matters operates.

By comparing these two sets of documents, we discovered how David Brock and his allies are pocketing sublet rental income.

 

Here’s what’s happening

This report will focus on fiscal year 2014. Media Matters is claiming two separate values for occupancy expenses in 2014.

To the IRS, Media Matters is claiming:

  • Total occupancy expenses: $924,454
  • Sublet rental income: $0

In their financial statements, Media Matters is claiming:

  • Total occupancy expenses: $1,214,454
  • Sublet rental income: $290,000

 

Here’s how

Media Matters reported to the IRS in 2014 that their  occupancy expenses were $924,454.

media-matters-2014-occupancy

IRS instructions state “Do not net any rental income received from leasing or subletting rented space against the amount reported on line 16 for occupancy expenses.”

However, Media Matters’ 2014 financial statements show that the reported occupancy expenses of $924,454 includes net of sublease income of approximately $290,000.

net-of-sublease-income-2014

This means that Media Matters broke IRS guidelines.

Already, this uncovers a massive discrepancy.

  • Media Matters claimed to the IRS in 2014 that their total occupancy expenses in 2014 were $924,454.
  • Media Matters claimed in their 2014 financial statements that their total occupancy expenses were $1,214,454.

Only one of these can be true.

 

What happened to the $290,000 in sublet rent income?

Well, Media Matters didn’t report any sublet rental income to the IRS in 2014.

The IRS provides two options in regard to reporting sublet rental income.

  1. Report sublet rental income as program-service revenue, or
  2. Report rental income as gross rents.

As we can see below, Media Matters reported $0 in both fields in their 2014 IRS form 990.

media-matters-reported-rental-income

 

How much did Media Matters really pay for occupancy?

This is the most likely scenario:

  • Media Matters total occupancy expenses for 2014 were $924,454.
  • David Brock and allies pocketed the $290,000 in sublet rental income for personal use.

Why is this the most likely scenario?

$1,214,454 is an unrealistic amount for occupancy expenses in the building Media Matters operates out of.

455 Massachusetts Avenue NW is a 12 floor, 242,366 square feet office building.  This amounts to an average of 20,197 square feet per floor.

General Services Administration, a government organization, signed a 10 year lease in 2009 for the entire 5th floor of 455 Massachusetts avenue (22,432 square feet).

GSA’s lease for the 5th floor is $942,021 per year. The lease agreement makes no mention of an escalation clause, and includes operating expenses and real estate taxes.


Also in 2009, Media Matters signed a 10 year lease for the entire 6th floor of 455 Massachusetts Avenue NW. However, they claim to spend a lot more in rent than GSA.

Furthermore, Media Matters specifies that this amount does not include operating expenses and real estate taxes.

media-matters-operating-lease

media-matters-future-payments-2010

 

Media Matters is paying a lot more than GSA for rent, despite the fact they operate in the same building and lease the same amount of floor space

It just doesn’t make sense. Media Matters pays over $270,000 more than GSA, despite the fact that both organizations own the same amount of floor space, and Media Matters’ lease doesn’t include operating expenses and real estate taxes.

Media Matters is paying so much more, yet getting so much less than GSA.

It doesn’t add up.

Unless Media Matters can produce a lease agreement for our review, it’s safe to assume that their lease is comparable to GSA’s at around $924,000 per year.

 

What is Media Matters doing with the sublet rent income?

It appears that Media Matters is being truthful to the IRS when it claims it’s 2014 occupancy expenses were $924,454.

But Media Matters is lying to the IRS when they claim to collect $0 in sublet rent income in 2014.

Make no mistake, Media Matters is receiving rental payments. Here’s a rent payment from American Bridge 21st Century to Media Matters in 2014.

Media Matters is artificially increasing occupancy expenses in it’s financial statements, then ‘buying down’ by netting sublet rent income.

But IRS instructions prohibit organizations from ‘buying down’ occupancy expenses by netting sublet rent income.

The truth is, David Brock and his allies are most likely pocketing the sublet rent income for their own personal use.

 

How much has David Brock and his allies pocketed through this scheme?

Every year since 2010, Media Matters has reported $0 to the IRS in sublet rent income.

But Media Matters reports a significant amount of sublet rent income in their financial statements:

  • 2010: $115,000
  • 2011: $193,000
  • 2012: $237,500
  • 2013: $217,000
  • 2014: $290,000

Total: $1,052,500 in sublet rent income hidden from the IRS.

See for yourself by comparing Media Matters’ IRS form 990s and their financial statements found in Massachusetts non-profit document search database.

 

How do we know for sure Media Matters is being dishonest in its IRS form 990s?

American Bridge 21st Century sublet office space from the American College of Preventative Medicine in early 2014.

The ACPM operates out of the 2nd floor of 455 Massachusetts Avenue NW, and collected $8,920 in sublet rent payments from American Bridge in 2014.

american-college-rent-payment

 

In it’s 2014 IRS form 990, the ACPM demonstrates how to correctly report sublet rental income:

correct-sublet-income-reporting

This is the final nail in the coffin for Media Matters. They have no wiggle room left. It should be clear now that Media Matters is lying to the IRS by failing to report sublet rent income.

 

Birds of a feather flock together

  • From 2010 to 2014, financial statements show that Media Matters received $1,052,500 in sublet rental income from related organizations.
  • From 2010 to 2014, Media Matters reported $0 in sublet rental income to the IRS in their annual form 990s.
  • Media Matters has hidden over $1 million of income from the IRS since 2010.

This situation is strikingly similar to how Al Capone was convicted of income tax evasion.

Al Capone was hiding income from the IRS. Media Matters is hiding income from the IRS.

It’s that simple.

 

What’s next?

Please share this report, and consider signing our petition to the Department of Justice to investigate David Brock’s Media Matters for America.

We’ve barely scratched the surface with this report – The Citizens Audit will continue to expose findings from Media Matters’ financial statements.

When we are finished documenting all our findings, we will draft and submit official complaints to the IRS, the Federal Election Commission, and the Department of Justice in hopes to force an investigation into David Brock and his organizations.

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johngaltfla's picture

Well, since he is a FOB and FOO (Friend of Bill - Clinton and Friend of Obama) I seriously doubt he'll get the assfucking like the rest of us have from the IRS.

However, let's hope President Trump gives him the full monte without lube.

Jim Sampson's picture

MAN he looks like a douche!

Muddy1's picture

That's because he is a douche, actually a douche bag.  Maybe he'll end up in prision and get a brrrr haircut.

Squid-puppets a-go-go's picture

"1,214,454 is an unrealistic amount for occupancy expenses in the building Media Matters operates out of"

Well, lets not jump to conclusions. As Alefantis' boyfriend, or ex, he may have expenses like cages, dungeons, chains, torture equipment. Cleaning expenses. Security etc - it all adds up

Joe Mama 3's picture

not a lot of pizzagate talk at te hedge. seems like quite a few folks here don't follow it or know much about it. not a lot of comments noticing that brock was a butt buddy of Alefaggot. I'm suprised no one has "pizza'd" john, tony, the jew spirit cookin bitch or alefaggot. now, when i say "pizza" i don't mean killing them or anything, i really mean pizza, like in their e-mails !!!!!!!!!!!!!!!

NotBuyingIt's picture

We talk about pizzagate all the time here on the Hedge. As in "Do you think I'll do better playing dominos on cheese than on pasta?" and "Hi John, The realtor found a handkerchief (I think it has a map that seems pizza-related. Is it yours?)" And how about that "hot dog stand" of Podesta's in Hawaii.

We are on it! We talk about it all the time. The Hedge was pretty good about posting (and stickying) expose stories about pizzagate being banned from Reddit, too. Hedgers want to see this bunch of pedo pricks fry.

Glassport's picture

I'm rather fond of the New Jerseyism - Douche Nozzle.

NotBuyingIt's picture

Excellent term! My Texas ass loves it :-)

nmewn's picture

"Already, this uncovers a massive discrepancy.

  • Media Matters claimed to the IRS in 2014 that their total occupancy expenses in 2014 were $924,454.
  • Media Matters claimed in their 2014 financial statements that their total occupancy expenses were $1,214,454.

Only one of these can be true."

But according to Harry Reid, the NYT's, Hillary Crony, the Washington Post...et fucking cetra...Trump is a tax cheat! for taking LEGAL carry forward losses?...lol.

Herodotus's picture

He looks like Moses in the movie, The Ten Commandments, when he was unable to enter into the Holy Land, parted with his wife and Joshua, and went up into the mountain to die.

 

SILVERGEDDON's picture

Aww, shucks, it's only money, small change at that.

EuroPox's picture

That sort of cash buys a LOT of pizza.

Mr Pink's picture

Maybe Trump will get the sickos Capone style. Then they all will get prison justice

EuroPox's picture

That's a great thought - they really deserve it.

Taint Boil's picture

Fake news? .... now I'm confused ...... where is my "safe space" ... ohhh the pain

Arnold's picture

Dear District of Columbia Police:

 

  Please place crowd limiting fencing, to secure the building address in our letterhead.

We feel the casual Tourists strolling by carrying Scythes and Pitchforks may pose an undefined threat.

They also smell Russian.

Your prompt attention in this matter is expected.

 

Sincerely,

DB

Herodotus's picture

In his case, he can use the money to buy several dozen hot dogs.

equity_momo's picture

Thats a lot of hotdogs.

 

^Robertsons Jam guy beat me to it!

shimmy's picture

Democrats skirting the tax system? Never. They are all about paying their fair share. 

 

AlexCharting's picture

That looks like allot of pizzas and hotdogs unaccounted for. 

Mercuryquicksilver's picture

Only patriots need be concerned with the IRS.  Pedophiles need not worry.

Lyman54's picture

Looking at the clown I would have thought he was leasing retail space for pizza gate franchises.

Miss Expectations's picture

David Brock, the founder of the liberal media watchdog organization Media Matters, was blackmailed for $850,000 by his gay ex-lover who threatened to reveal information about the nonprofit group's finances to donors and the IRS, according to dueling lawsuits. 

...

In a lawsuit, Brock says his former lover of 10 years, William Grey, contacted him three times after their breakup and demanded payment or he would embarrass him to his donors and report him to the IRS. 

Read more: http://www.dailymail.co.uk/news/article-2107394/Media-Matters-founder-David-Brock-accuses-gay-ex-lover-blackmailing-850K.html#ixzz4SrH6OdXB 

buttmint's picture

a bunch of fudgepackers...!!!

darteaus's picture

No wonder s/he is shrieking so loudly about Trump's election - s/he is going to have to pay tax + penalty + interest.

Miss Expectations's picture

Photos of David Brock and James Alefantis at Camp Rehobath in 2002

http://www.camprehoboth.com/letters/2002/march-8-2002-camp-shots-2-1

Disgruntled Goat's picture

Is it me, or do all those guys look gay?

SmedleyButlersGhost's picture

Have to say - you can read the articles but pictures like that just communicate it better. WTF

RightLineBacker's picture

For the uninformed;

"CAMP Rehoboth Mission

CAMP Rehoboth is a 501(c)(3) nonprofit community service organization dedicated to creating a more positive environment in Rehoboth Beach and its related communities. We seek to promote cooperation and understanding among all people, as we work to build a safer and more inclusive community with room for all.
.
.
.
... "and giving aid to artists and craftspeople with an emphasis on the works of lesbians and gay men."

MissCellany's picture

Oh, THAT kind of camp. As in campy.

WillyGroper's picture

Cherry Pink Party in DC...WTF?

i think we know what that means.

BabaLooey's picture

Jesus H. Christ.

It's a target-rich environment for asskicking.

This cunt Brock needs his kicked hugely.

quax's picture

I thought it was $1,052,500 and 57 cents?

For Ages We Shall Reign's picture

Andrew Kerr! No! You have so much to live for! Don't duct-tape your hands behind your back, shoot yourself in the back of the head 3 times, encase your body into cement, and then throw yourself into the river!

You have so much left to live for!

Suicide is not an option!

Herdee's picture

Audit the moron.

Berspankme's picture

$1m over 4 yrs for these bloodsucking pricks? Chickenfeed. They steal more than that on a Saturday afternoon. IRS will fine them a Jackson

The Chief's picture

He shall be dealt with harshly.

south40_dreams's picture

The IRS should attack this leftist hate group with gusto

RightLineBacker's picture

True... but wait, Obama's IRS is a radical leftest hate group. Dang.

Crash Overide's picture

Hey, what ever happened to Lois Lerner...?

 

oh yeah, nothing.

Pigeon's picture

Another job for Lois Lerner.

/Obama Adminstration

Clara Tardis's picture

Okay, so the IRS (lois-lost'm lerner) is corrupt for overlooking her lying, thieve'n buddies
Attorney General (Lowrenta) and Justice Dept is corrupt
Sec of state of office (hil rodent ) is corrupt
fbi (commey et al) is corrupt
Cia (the whole freakin'lot) is corrupt
WH (halfRican) is probably a poor black child from Indonesia(may find out from Sheriff Joe tomorrow)and corrupt
Congress mostly pedophiles and blackmailed/bribed are corrupt
I know there's more but it's cocktail hour.....

economessed's picture

Nice forensic accounting there, CitizensAudit.  The swamp just got a little bit drier.

Dark Daze's picture
Dark Daze (not verified) economessed Dec 14, 2016 7:06 PM

Yeah, a terrific piece of investigation, but the article needs to be trimmed by 50%. I got the idea in the first three paragraphs

Andrew Kerr's picture

I hear you. Biggest challenge for me in documenting this stuff is balancing out the technical argument and readability.  If I don't include enough supplemental details, the argument looks weak.  If I add too much, the article becomes an unreadable mess.  Still trying to work out the sweet spot in that regard.

RightLineBacker's picture

Your article is excellent and your inclusion of the pertinent analytical detail was important to most readers.
Thank you. Great work.

NotBuyingIt's picture

There you are, Rock Star!!! I just tweeted you. Great Job, young Sir! I first ran across your work a few months back, then I saw your Hagmann & Hagmann interview last week. What a GREAT JOB you are doing.

Did you hear David the Prick Brock Fake Cry in his Politico interview? Brock, being interviewed by hack Glenn Thrush, tearfully (LOL!) expressed how happy he was that "no one got hurt" in that whole Pizzagate thing. Guess he wasn't thinking about all the kids.... (It's at the 50 minute mark in the interview podcast. Note how fast he "recovers" from his "distress". What a scumbag phony.)

Stay safe! These people are scummy satanists who have no ethics or morals.