Somebody paid $3.7 million cash, through an LLC, for a 12,663 square foot, 8-acre estate in December 2018 that was then transferred to California Gov. Gavin Newsom and his wife shortly before the First Couple obtained a $2.7 million cashout mortgage loan on the property.
No matter which explanation is the truth, the series of transactions is still problematic for the Newsoms since to this day there isn't a shred of evidence that they were the sole members of the now-dissolved LLC that purchased the home, the LLC hasn't ever been reported on Newsom's financial disclosure forms or, as far as we can determine, his federal tax forms, and given what we know about the Newsoms' and Scherer's income it's doubtful that either had $3.7 million in liquidity at the time.
To make it clear for the people in the back, Gavin and Jennifer Newsom were given the deed to a $3.7 million home from an LLC that they don't seem to own, and less than 90 days later took out a cashout refinance loan which provided them $2.7 million, tax-free.
What's the big deal? Well, if the person/people/entities who fronted/loaned $3.7 million for the purchase isn't an "Exempt" person for CA financial disclosure law purposes, Newsom broke the state's political ethics law, bigly.
Click said the Newsoms paid cash for the house and that the couple plan to sell their Marin County home.
In response, Newsom spokesman Nathan Click told The Bee that Newsom and his wife were the only members of the LLC that owns the home and that Newsom didn't need to disclose it on his statement of economic interest because elected officials are not required to report their residence on that form.
The question of who provided the $3.7 million to the Newsom/Scherer LLC to purchase what is now the Newsoms' estate is still completely unresolved.
Saturday, September 11, 2021
Somebody Paid $3.7 Million Cash for CA Gov Newsom's Estate - But Who?
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