The Pandora Papers: Puff and Point
by Thomas E. Simmons

Since Monday, there has been a buzz – to put it mildly – relating to the trust administration industry in South Dakota. The leaking of 11.9 million private financial records was very big news and it’s reverberating around the globe.

Let me say that again: eleven-point-nine-million financial records. How much data is that?

Simmons is a professor at the University of South Dakota’s Knudson School of Law and concentrates on trusts, estate administration, and the estate tax. Prior to becoming an academic, he was a partner with the Rapid City law firm of Gunderson, Palmer, Nelson & Ashmore, LLP.
I think it’s fair to guess that some financial records are more than just one page long. Let’s say on average – conservatively – a financial record comprises three pages. (The records include a variety of documents; emails, spreadsheets, contracts, etc.) At three-pages each, that amounts to 35 million pages.

A full set of the Encyclopedia Britannica is about 32,000 pages. So, that’s 1,093 sets of encyclopedias worth of leaked documents.

I don’t know about you, but – despite my ambitions as a young person – I never finished reading our family’s encyclopedia set. (We had the World Books at our home, which are a slightly easier read than the Encyclopedia Britannica.)

I never completed even a single volume, although I made it partway through “L” if I recall correctly. If a person could finish reading a full set of the Encyclopedia Britannica at the near-maniac speed of six months, at that rate, it would still take over 500 years to sift through the entire Pandora Papers. Maybe you delegate the task to 100 persons; that way it would only take five years.

The project to bring the Pandora Papers to light reportedly engaged 150 news organizations, and you would need that kind of workforce to make even a small dent within a reasonable period of time – otherwise the information would be too stale to be newsworthy. And some of the information is too stale to be of much interest as it goes back to as early as the 1970s.

My point is this: It’s a lot of documents. An almost unmanageable volume of documents. The Washington Post refers to it as a “massive trove.” They’re not kidding.

Nevertheless, journalists have somehow managed to summarize them for the public. What do they show?

Thus far, the Pandora Papers journalism has identified several bad actors who have utilized trusts. There are, for example, indications that a Cambodian antiquities dealer named Douglas Latchford used trusts to traffic in looted cultural artifacts. The Department of Justice caught up to him and he hadn’t utilized a South Dakota trustee but rather a trust company in Jersey (one of the Channel Islands off the coast of France). Latchford died last August.

For trusts administered in South Dakota, there are accusations, too. The journalists list 30 South Dakota trusts holding shares in companies which have been accused of “corruption, human rights abuses or other wrongdoing.” That’s a concern, and one which should be taken seriously by professional trustees and government regulators of trust companies alike. But it’s also important to note what the allegation says – and what it doesn’t say.

The allegation is that some trusts administered in South Dakota hold shares in companies which have been accused of wrongdoing.

My friend owns shares in Volkswagen AG, a Germany company not just accused of wrongdoing, but guilty of violating the Clean Air Act by fraudulently manipulating emissions test results (the “diesel dupe”).

I personally used to hold some shares in Wells Fargo Bank, N.A., an American company not just accused of wrongdoing, but actually guilty of an account fraud scandal of such staggering proportions that it generated a $3 billion dollar fine. (That’s billion – with a “b.”)

Those are examples of some pretty serious corporate wrongdoing and not mere allegations. Now, I could just as well own some Wells Fargo shares in trust, let’s say a college-savings trust I’m managing for my children’s future college costs. I’m pretty sure that would not make the front-page news.

There are some points in the Pandora Papers journalism which are emerging as concerns that deserve attention and perhaps even regulatory reforms. But, at least so far, there’s also quite a bit of puff. With such an enormous stack of documents, perhaps there are more serious concerns to come.

Or perhaps not.

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These are the views and opinions of the writer and not those of the University of South Dakota, its Knudson School of Law, or the South Dakota Board of Regents.

From the Standing Rock Sioux Tribe Facebook page, it looks like state Democrat Party Chair Randy Seiler has lost his second election in the last six months this week after the Standing Rock Sioux Tribe has voted him out as an Associate Justice of the Standing Rock Tribal Supreme Court:

Seiler also lost an election for Ft. Pierre City Council in April.

Associate Justice Michael Swallow was also voted out in Tuesday night’s election.

Taffy Howard’s other website (taffyhoward.com) apparently went live this afternoon.. including photos where they haven’t bothered to buy them yet to remove the watermarking from shutterstock:

Guessing it’s still under construction, as I don’t see the required federal disclaimer up on the site, and none of the links work.

In case any other candidates want your website to look kind of authentically westernish…

You can license the image here as well.

From the Federal Elections Commission, Taffy Howard filed her Statement of Candidacy today, as opposed to her statement of organization, which was filed a couple of months ago.

Taffy Howard f2n by Pat Powers on Scribd

Still waiting for her committee’s 3rd quarter report, which will tell us how much she raised and spent.

From the Argus Leader comes a story on a Sanford Health employee candidate challenging Janet Brekke in the Sioux Falls City Council race:

A Sioux Falls businesswoman and Sanford Health employee has filed paperwork to run for city council, seeking the seat currently held by Councilor Janet Brekke.

Bobbi Andera filed a statement of organization late Tuesday afternoon, declaring her intent to run for the seat in the April 12, 2022 election.

Read the entire story here.

According to my information Andera is a registered Republican, for those of you wondering.

 

Dusty Johnson is having a small fundraiser tomorrow morning at 8AM at Hy Vee in Sioux Falls. Participants are invited to meet up with Dusty and have donuts.

According to the note sent along with the graphic:

We have two “Donuts with Dusty” events scheduled- one in Sioux Falls & one in Rapid City- so again, we’re asking you to join the club and have a donut with Dusty soon!

It’s easy!

1. Just click the button below.
2. Sign up for automatic $6 or $12 monthly contributions (or whatever amount you choose).
3. Join us for “Donuts with Dusty” whenever you can, and
4. We’ll send you a cool South Dakota t-shirt, too!

We’d love to see you soon!

Kristie Moore
Finance Director
Friends of Dusty Johnson

The next event is on October 13th in Rapid City.

Meh.

As pointed out to me tonight, in what might be even a more anti-climactic announcement than Taneeza Islam announcing for Sioux Falls Mayor, I guess Taffy Howard is going to be done ‘exploring’ a run for Congress about October 12th?

According to her regular website, as opposed to the one that already blares “taffyhowardforcongress.com,” the website with just her name “.com” is apparently claiming that “Taffy Howard Congress” is coming soon.

Interestingly, it should also be coming at the exact same time that her her first FEC report is due (by 10/15).  I’m much more curious to see that than an  announcement for something we’ve already known.

Guest Column: How will you wield your wand?
by State Senator Jessica Castleberry

I have a magic wand. Anyone who has visited my office can find out a lot about me- places I’ve visited, friends and family closest to me, phrases I find inspirational, fairly typical office embellishments. However, one item that may seem unusual is a sparkly, delicately ribboned, pink magic wand.

Fifteen years ago, I was freshly divorced, with three children under the age of four and $3 in my checking account. At 24, I was alone, my first business was closed, my credit score was toast, and I was working five twelve-hour shifts a week as a patient care tech, living paycheck to paycheck and struggling to make ends meet.

I visited an office in Rapid City that offered credit counseling and other helpful services- debt consolidation, budgeting, a plan to help people in my situation to get on track.

I sat down in the dark, paneled office to visit with a credit counselor. I told her of my recent divorce, the big-on-dream-short-on-cashflow business closure, the damage done to my credit score, how I was working overtime and walking the three miles roundtrip to work every day trying to better my situation. I told her I was determined to work hard for a better life for myself and my kids. I told her I wanted to obtain a business degree to become a business manager and one day own a business of my own again.

She sat and stared at me for a long time in silence. What she said next, I will never forget.

“You will never accomplish any of that. No one will ever allow someone like you to manage their business.” Then she pointed to a wand she had hanging above her desk. “Do you see that?” she asked. I nodded, fighting back angry tears. She continued, “That is in my office so I can remind people to be realistic.”

Anyone who knows me well knows that telling me I’m incapable of doing something is the best way to ensure I do it. So, I worked for the next four years to advance my education and experience. In March of this year, I celebrated the 11th anniversary of my own small business in Rapid City, which grew from a small in-home operation to three commercial locations. Along the way, I was awarded the SD CEO Young Enterprising Entrepreneur of the Year Award in 2016, the Small Business Administration’s South Dakota Woman-Owned Small Business of the Year Award in 2018, and have become a Goldman Sachs 10,000 Small Businesses alumni. Heck, with the sincerest gratitude to my friends in neighbors in District 35, I even became a South Dakota State Senator along the way.

I am passionate about trying to help everyone, whether it’s the generational ag producer or the single parent trying to obtain a technical college degree. This is why I work to help small businesses, why I’m dedicated to addressing taxation, why I support workforce development, why I support alternative education pathways. This is why I will always do my best to help the struggling dreamers in South Dakota. I see you because I am you.

Sitting in that dark-paneled cube in 2006, I vowed that one day when I had my own office, I too would have a magic wand on my wall. Not to point out to others how they were insufficient, incapable, or “less than.” But to use my wand to encourage others that through diligence, grit, and hard work, we can all pursue a better life. That’s how I wield my wand; how will you wield yours?

—

Senator Jessica Castleberry is a member of the South Dakota Senate Transportation Committee and a small business owner from Rapid City.

Rounds on Senate Floor: President Biden owns the Afghanistan debacle and history will not judge him kindly

WASHINGTON—U.S. Senator Mike Rounds (R-S.D.) delivered remarks on the floor of the Senate today regarding the withdrawal of U.S. forces from Afghanistan.

Click here or on photo above to watch Senator Rounds’ remarks

In his remarks, Rounds highlighted a South Dakota veteran from Belle Fourche, who reached out to Rounds’ staff in hopes of evacuating her Afghan interpreter. Rounds also spoke in detail about President Biden’s decision to reject the professional advice of his military advisors to complete a conditions-based withdrawal rather than a date certain withdrawal. Read or watch Rounds’ full remarks below.

Governor Noem Appoints Brian Sandvig and Joy Nelson to Board of Technical Education

PIERRE, S.D. – Governor Kristi Noem has appointed Brian Sandvig and Joy Nelson to the Board of Technical Education. Brian Sandvig will replace the late Bob Faehn and serve the remainder of Faehn’s term. Joy Nelson will replace Ed Mallett effective November 1, 2021.

“South Dakota’s technical colleges are among the very best in America thanks to the Board of Technical Education’s important work,” said Governor Kristi Noem. “I am confident that Brian and Joy will continue that legacy. Both have a long history of excellent work and service to our state, and I am thrilled that they’ve accepted the call to serve South Dakota students.”

Brian Sandvig currently works as the CFO at Valley Queen Cheese Factory in Milbank. He joined Valley Queen in 2007 after 10 years as a banker to dairies, farmers, and agribusinesses throughout South Dakota and neighboring states.

Sandvig serves on the South Dakota State Historical Society, South Dakota Junior Achievement, the South Dakota Chamber of Commerce and Industry, the Grant County Economic Development Corp., and the City of Milbank Parks and Recreation. He teaches Sunday school at Living Word Lutheran Church and is an assistant coach on the Milbank High School football team.

Sandvig is a graduate of Aberdeen Central High School and the University of North Dakota. Brian and his wife, Janel, live in Milbank, South Dakota, and have three children, Jacob, Jack, and Ella. A photo of Brian Sandvig can be found here.

Joy Nelson is a lifelong resident of South Dakota. She began her career at Farmers and Merchants Bank in Watertown in the real estate and student loan lending departments. She entered the real estate business in 1982 and is the broker-owner of Haugan Nelson Realty, Inc. in Watertown. She has been engaged in residential, commercial, and agricultural real estate for the last 38 years.

Nelson is the founder and beneficiary of Joy Ranch outside of Watertown, a non-profit facility whose mission is to serve people with disabilities and medical issues, as well as veterans, through equine therapy. She was awarded the National ALDE Award in 2013 for philanthropy, the National Association of Realtors Good Neighbor Award in 2018, and is an inductee to the South Dakota Hall of Fame and the Watertown Hall of Fame.

Nelson currently serves on the Sanford Medical Center Board of Directors, the Lake Area Technical Institute Strategic Advisory Council as President, the Village Harmony Hill Board of Directors, the GLC Foundation Board of Directors, and is the past president of both the Prairie Lakes Hospital Foundation and the Lake Area Technical Institute Foundation.

Nelson currently resides at the Joy Ranch, where she enjoys spending time helping with the equine programs. A photo of Joy Nelson can be found here.

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