Only one of the billionaire Koch brothers supported Donald Trump’s 2016 campaign: William Ingraham Koch. Bill Koch even raised money for Trump, his nearby neighbor in Palm Beach, Fla.
That same year, IRS criminal agents began an investigation after receiving nearly 1,000 pages of documents detailing what were described as multiple tax frauds at Bill Koch’s companies. The documents, which we call the Koch Papers, came from a deeply knowledgeable source: Charles Middleton, who had been one of the companies’ top tax executives.
The IRS investigation went cold after Trump assumed office, documents obtained by DCReport show.
Michael Galdys, an IRS criminal investigation agent in West Palm Beach, gave no explanation as to why he was no longer pursuing the case when he sent a June 13, 2017 email to one of Middleton’s lawyers, William Cohan, in Rancho Santa Fe, Calif.
Cohan, and Middleton’s Seattle lawyer, John Colvin, both say the IRS and Justice Department stopped acknowledging their calls, emails and letters after Trump became president.
Koch’s company, in a written statement, said Bill Koch “has not approached President Trump to discuss any significant Company business issues, tax-related or otherwise.” The company also said it discharged Middleton “for cause” and noted that the IRS closed an audit of the company’s 2011 and 2012 tax returns without making any changes.
The Koch Papers detail what Middleton and his lawyers say were multiple tax dodges over many years. The biggest involves profits from selling petroleum coke, a residue from oil refining that is among the dirtiest of all carbon fuels.
Two of Bill Koch’s better known and much richer brothers, Charles and David, are also heavily invested in carbon industries and in promoting their libertarian political philosophy. In 1983, Bill, who is David’s twin, sold his shares in the family business and set up his own operations under the Oxbow moniker. Charles and David have no involvement with Bill Koch’s company.
While his brothers are worth more than $50 billion each, according to Bloomberg magazine, Bill Koch, 79, is worth about $4.1 billion. He holds a Doctor of Science and two other chemical engineering degrees from the Massachusetts Institute of Technology.