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Another ATF scandal, millions of dollars worth

Story at Legal Insurrection. Federal statutes require that (unless there is a specific exemption) all money brought into an agency be turned over to the "General Fund," rather than become part of the agency's funds. Some eleven years ago, tho, ATF agents essentially merged with a tobacco supplier, with the original objecting of finding interstate tobacco smugglers trying to get around local taxes.

Soon, however, it became a very profitable enterprise, and was itself buying untaxed cigs and reselling them at a high profit.

"The secret fund became known as a "management account," and word spread quickly among A.T.F. agents that if you needed something, Mr. Lesnak could get it without red tape.

As Mr. Lesnak described it, senior officials in Washington frequently sent agents to him for untraceable license plates, credit cards and more. Automobiles, particularly luxury cars, were hot items. "We had so many vehicles that we actually set up a company just for leasing," Mr. [Christopher] Small [Carpenter's business partner] said in a deposition.

Agents relied on the management account for routine expenses, and Mr. Small said hotel bills and gas alone could run to $23,000 a month. "We had 14 or 15 agents carrying American Express cards that we paid the bill on," Mr. Small said."

One informant alone got $6 million from the account. Hundreds of thousands were steered to selected organizations. "The money in this account paid for a $21,000 at a NASCAR race and a trip to Las Vegas."

From what has been discovered, no one in the agency every really authorized the creation of this secret, multi-million slush fund. It just "came to be."

hat tip to Jeff Harris....