By all measures, and no matter who you are supporting, this election is critical to the future of our country and of Utah. Voters are already returning ballots in large numbers – and that’s a good thing.
In Utah’s 4th Congressional District, Burgess Owens is challenging Rep. Ben McAdams. As it is the only competitive congressional race in our state, most Utahns have seen and heard something about the two candidates. However, with less than a week left until Election Day, we feel an obligation to sound the alarm about part of the Owens' story that we believe has been under-scrutinized.
On the campaign trail, Owens has often touted his founding of a non-profit organization, Second Chance 4 Youth (SC4Y), which he claims helps at-risk and incarcerated youth. As recently as late last month, the organization’s website still listed him as its president.
While this nonprofit sounds admirable on its face, a recent investigation by The Salt Lake Tribune uncovered disturbing questions surrounding Owens' organization and its use of charitable funds. According to records reviewed by The Tribune, SC4Y may have violated IRS regulations governing nonprofits, and payments Owens has received from the group may have violated federal election laws.
A filing Owens submitted to the U.S. House of Representatives states that Owens has “resigned day to day involvement as CEO” of the organization, yet has continued to receive his $70,000 per year salary from the charity. As The Tribune notes, such an ongoing salary is not permitted by federal law, which “prohibits corporations, both for-profit and nonprofit — from essentially paying a candidate to campaign.” As lawyers, we believe Owens' continued salary may constitute an illegal campaign contribution that has yet to be addressed.
Additionally, The Tribune’s reporting raised questions about what funds, if any, SC4Y has actually committed toward fulfilling the organization’s stated mission of helping incarcerated youth. As The Tribune wrote, “How much went directly to helping incarcerated youths? Zero, according to the records.”
Many questions remain about whether Mr. Owens or his non-profit violated the law. Evidence suggests possible illegal activity, and Utah voters deserve a full accounting. If Mr. Owens expects voters to put their trust in him to represent them in Washington, he needs to be transparent about what exactly happened with the hundreds of thousands of dollars in charitable contributions for which he was responsible.
We already know there are serious financial questions surrounding Mr. Owens' record and his candidacy. As Owens himself has admitted, his past includes multiple bankruptcies. Owens walked away from debts to the IRS and other creditors, leaving others to clean up the messes caused by his financial mismanagement.
Combined with the questions surrounding his nonprofit, this pattern of disregard for the rule of law is deeply concerning.
Mr. Owens has an absolute duty to answer the new questions about his non-profit raised by the Salt Lake Tribune, so that voters can assess his candidacy as soon as possible. If he refuses to do so and avoids transparency, then how can we trust him? And if we cannot trust him, then we should not vote for him.
Jonathan Ruga
Jonathan M. Ruga is a Salt Lake City attorney. This commentary is also signed by local attorneys Scott F. Young, Stephen E.W. Hale, Christina M. Jepson, Walter A. Romney Jr. and Jeffrey Eisenberg.