Elections

EXCLUSIVE: Conservative Org Files Ethics Complaint Over John Fetterman’s Land Purchases

(Photo by Michael M. Santiago/Getty Images)

Michael Ginsberg Congressional Correspondent
Font Size:

The Center for Accountability and Government Ethics (CAGE) filed a complaint on Oct. 24 alleging that Democratic Senate candidate John Fetterman violated Pennsylvania non-profit law through his purchase of several properties in Braddock, Pennsylvania.

Fetterman, who served as mayor of Braddock from 2006-2019, owns eight properties in the area. They include several vacant lots, and are the subject of a watchdog complaint filed by the Foundation for Accountability and Civic Trust (FACT). CAGE alleges in its complaint, obtained exclusively by the Daily Caller, that Fetterman bought and sold one of the properties in a way that violated Pennsylvania non-profit law and his organization’s charter.

CAGE, a new venture of the CPAC Foundation, will serve as a right-leaning ethics watchdog.

Braddock Redux served as a conduit for a real estate deal conducted by Fetterman and Braddock deputy mayor Jebediah Feldman, the non-profit’s vice president, the complaint, filed with the Pennsylvania Secretary of the Commonwealth and the state Ethics Commission, alleges. Feldman initially purchased a vacant commercial lot in 2007 for $75,000, according to the Allegheny County Real Estate Portal. Feldman sold the lot to Braddock Redux in 2011 for $1, and Fetterman purchased it from the non-profit in 2014 for $1,100.

Feldman appears to have taken a $74,999 loss on the property. The lot is part of a block that houses three artistic projects, The Braddock Community Oven, UnSmoke Systems Art Space, and barebones productions. A Washington Post report describes Braddock Redux as a way for Fetterman “to implement his vision of a revitalized Rust Belt community of artists and other urban homesteaders.”

Feldman did not respond to questions from the Daily Caller on why he was willing to take such a massive loss on the land deal. (RELATED: John Fetterman, A Democratic Senate Candidate, Pulled A Shotgun On An Unarmed Black Jogger In 2013)

In its 2011 and 2014 tax filings, Braddock Redux claimed that its real estate deals did not involve “a current or former officer, director, trustee, or key employee.”

“They might just have missed this. It happens to everybody. But the fact remains when you sign a tax form as head of an organization, you’re signing it with the force of law. Usually the IRS allows you to amend, but the question remains, ‘why didn’t they disclose a relation in the 990?’ The silence is deafening,” CPAC Foundation Senior Vice President and General Counsel David Safavian told the Daily Caller.

The purchase appears to violate Braddock Redux’s articles of incorporation. They prohibit any of the organization’s “net earnings” from “inur[ing] to the benefit of or be[ing] distributable to any contributor, director, [or] officer,” unless they are part of a “reasonable compensation for services rendered,” according to documents included in the complaint. The sales violate this provision because the property was sold to Fetterman below market value, Safavian added.

Read the complaint here:

Fetterman Complaint as Filed 10252022 by Michael Ginsberg on Scribd

“Fetterman got this property for 16 cents a foot, while the comps in the area went for two dollars per square foot. That would seem to be a clear indicator he generated value to himself by engaging in this transaction,” he explained.

The complaint also alleges that Braddock Redux’s board violated Pennsylvania non-profit law by not having disinterested board members approve the real estate deal. Any such deal must be “fair” to the non-profit, and neither requirement appears to have been met. Pennsylvania allows for the revocation of a non-profit’s charter if the organization engages in activities that violate state law.

“Nowhere in the record … does it appear that Braddock Redux or Mr. Fetterman complied with these requirements,” the complaint says.

Braddock Redux did not respond to the Daily Caller’s request for comment on the complaint.

Fetterman and his communications team have repeatedly highlighted Republican opponent Mehmet Oz’s extensive property holdings on social media and during their one debate. Oz owns at least 12 residential properties, Business Insider reported in September, although ethics complaints against his property holdings have not been reported.

The Fetterman campaign denied any wrongdoing in a statement to the Daily Caller. (RELATED: John Fetterman Attends Ritzy Hamptons Fundraiser While Continuing To Duck Debates)

“This is a frivolous and ridiculous complaint filed by a radical, far-right dark money group supporting Dr. Oz. John started Braddock Redux nearly two decades ago to help disadvantaged young people in Braddock and the surrounding area, and to create a community center for them. He is tremendously proud of what they accomplished while he was involved in terms of creating opportunities for Braddock youth, combating economic insecurity, helping reduce crime and gun violence, fostering a local arts resurgence, saving and restoring historical properties, and creating the Nyia Page Community Center to serve as a gathering and activity space for Braddock,” campaign spokesman Joe Calvello said.

Safavian argues that the entirety of Fetterman’s real estate portfolio is worthy of suspicion. The candidate did not note several parcels of land in a financial disclosure submitted to the U.S. Senate, according to the FACT complaint.

“Fetterman has bought up all the property on this one block,” he said. These purchases “raise two different questions. Either Braddock Redux is giving a significant benefit to Fetterman by selling him a parcel below market value, or this may be a case of the cover-up being more significant than the underlying activity,” he explained.

“Fetterman is either a sloppy manager, or he’s hiding something,” he added.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel