1/10/2020, 1:04AM

Confederate group in Silent Sam deal accused of violating tax and campaign finance laws

BY CHARLIE MCGEE

For years, the pro-Confederate group that the UNC System dealt $2.6 million has been violating federal tax laws, operating a political action committee in violation of its tax-exempt status and facilitating political donations through illegal means, according to numerous individual first-hand accounts, a slew of internal communications provided to The Daily Tar Heel and multiple expert legal opinions.

The North Carolina Division Sons of Confederate Veterans Inc. struck a pair of backdoor deals last November with UNC System Board of Governors members. A predetermined lawsuit and settlement gave the group Silent Sam and $2.5 million in UNC System money for the Confederate monument’s “preservation and benefit.” A week previous, the system paid $74,999 to the SCV for an agreement to limit its display of Confederate symbolism on UNC System property.

Last month, multiple current members of the SCV spoke to The Daily Tar Heel, alleging financial improprieties among the group’s leadership, referencing intermingling with gangs and hate groups, and describing threats and slurs that have been issued toward members who raise questions, including about the settlement and its financial winnings.

Those members and others have since shared further information with the DTH. They have been granted anonymity based on personal safety concerns.

'Cigar box in the gun safe'

The SCV has held a federal and state tax-exempt status in North Carolina for over a decade, according to filings with the U.S. Internal Revenue Service. The group’s 501(c)(3) nonprofit status legally defines it as having been formed for charitable, religious or educational purposes.

The mechanized cavalry, a nationwide subgroup of motorcycle-riding SCV members, filed for its own 501(c)(3) status in March 2019 under the name “SCVMC 2nd Bn Co B 1st Plt,” according to the N.C. Department of the Secretary of State’s website.
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