Gephardt Amendments Show Discrepancies in Home Loan, Tax
Archibald, George, The Washington Times (Washington, DC)
House Minority Leader Richard A. Gephardt has underscored tax and bank-loan discrepancies involving a luxury seaside home through amendments to his congressional financial-disclosure reports.
On Friday, the House ethics committee dismissed a complaint against the Missouri Democrat accusing him of inaccurate reports and other improprieties involving a million-dollar oceanfront home at Corolla, N.C.
In obtaining dismissal of the complaint by Rep. Jennifer Dunn, Washington Republican, Mr. Gephardt acknowledged that he did not report an outstanding $30,000 debt owed to a developer in 1991 for the Outer Banks lot.
The Democratic leader also acknowledged failing to report $25,000 to $50,000 in rental income from his three-story vacation home in 1992. The home, called "Northern Star" and advertised as one of the most exclusive rental properties at the Corolla resort, was built by Mr. Gephardt and his wife and two investment partners from Bethesda.
Mr. Gephardt told the House ethics committee that he did not believe he had to report the outstanding $30,000 loan from Outer Bank Ventures in 1991 "because the property did not then produce rental income."
Members of Congress must report all debts over $10,000, except mortgages on a primary residence, and all financial transactions exceeding $1,000.
Mr. Gephardt said disclosure of the rental income in 1992 was "inadvertently omitted."
He said he had previously not disclosed his April 1991 sale of a condominium at Duck, N.C., for $183,000, in exchange for the building lot at Corolla, saying the properties were for personal, non-rental residences.
In obtaining a $493,100 construction loan from CENIT Bank for his larger, 6 1/2-bedroom home at Corolla, Mr. …