Washington, D.C. – Today, U.S. Senator Catherine Cortez Masto (D-Nev.) grilled Billy Long, President Trump’s nominee to lead the Internal Revenue Service (IRS), about his involvement in a tax fraud scheme in which he encouraged people to claim a fake Tribal tax credit. Long repeatedly failed to provide her with clear answers.
Long has close ties to Capital Edge and the White River Energy Corporation, which promoted Tribal tax credits that the IRS later confirmed do not exist. Long reported earning $65,000 for his work related to the scheme. Cortez Masto has repeatedly sounded the alarm about Long’s alleged participation in tax fraud. Last month, she called for a criminal investigation into this scheme, and last week, she demanded answers from the White River Energy Corporation. Long suddenly received thousands of dollars campaign donations from individuals employed by these companies shortly after he was nominated to serve as IRS Commissioner, which he used to pay off a personal loan to his campaign.
Cortez Masto pressed Long on his admission that he was involved in the scam, saying “In response to the question ‘How many Tribal tax credit referrals did you work on for Capital Edge and White River?’ […] you responded, ‘Less than ten close friends and acquaintances to Capital Edge.’ So, you did refer Tribal tax credits to individuals, correct?”
“I referred them to Capital Edge Strategies, yes,” Long replied.
“Knowing that they are illegal, and the IRS has said they are illegal, how do you stand here before this committee and tell the Chairman just a few minutes ago that you have no conflict of interest?” Cortez Masto asked.
Mr. Long did not provide a clear answer.
“We have asked the IRS to investigate these Tribal tax credits and the scam, and the companies that were involved, and some of the companies allegedly that were involved were [White River Energy Corporation], a company that you received compensation from,” Cortez Masto said. “How can you sit here today and say there’s no conflict knowing now that there is an investigation underway with the IRS and we’re asking them to look at this scam and it may involve a company that you are affiliated with?”
As the former top law enforcement official in Nevada, Senator Cortez Masto has been a leading voice fight fraud throughout her career. She sounded the alarm on increasing check fraud scams, which cost consumers millions of dollars each year. She introduced legislation to protect and support whistleblowers reporting wrongdoing to the Consumer Financial Protection Bureau, and her bipartisan legislation to deter disruptive and potentially harmful phone calls and texts was signed into law in 2020.
###