Congressional races heats up as Shapiro demands Buchanan disclose terms of yacht loan

Standing outside of Rep. Vern Buchanan’s office Thursday morning, Democrat challenger David Shapiro called on the incumbent congressman to release the terms of a controversial yacht loan.

Shapiro, a Sarasota lawyer running to unseat Buchanan, R-Longboat Key, in Florida’s 16th Congressional District, first inquired about the loan Buchanan used to purchase his yacht Tuesday. That’s when reports pointed out the loan was issued by a bank that spent at least $340,000 lobbying Congress for tax reform.

“What are the benefits to Vern Buchanan for that loan? What are the benefits to the people who lobbied in that foreign bank?” Shapiro asked, referring to BMO Harris, an American subsidiary of the Canadian Bank of Montreal. “We need to know it now.”

More than 50 supporters stood in solidarity with Shapiro as he spoke, holding up signs that read, “The people deserve to see the truth,” “Release the documents” and yacht-related puns.

A handful of counter-protesters and Buchanan supporters showed up, too. Their signs called Shapiro’s controversial stock holdings into question, a tactic the Buchanan campaign has used to accuse Shapiro of hypocrisy and deceit.

One counter-protester interrupted Shapiro’s speech to ask him about those stocks directly. The question went unanswered. Shapiro, instead, demanded transparency from elected officials, such as Buchanan.

“We need transparency in government. We need accountability in government, to the people we elect, who represent us,” Shapiro said. “We need the truth.”

Buchanan’s campaign says there was no evidence of wrongdoing but has come under fire for not disclosing the terms of the loan. His opponents are leery of the deal because of the timing of the loan and Buchanan’s involvement in drafting the Tax Cut and Jobs Act. The six-term congressman sits on the tax-writing House Ways and Means Committee and is the head of the tax policy subcommittee.

It’s not the first time critics have taken a hard look at the yacht purchase. Buchanan’s financial disclosure records revealed that he had purchased his yacht on the same day he voted for the passage of the tax bill. The link between the loan and lobbyists has made his adversaries all the more skeptical.

The Buchanan campaign has said that Buchanan was not lobbied by BMO Harris. According to the House Ethics Committee, it would be a violation of congressional gift law if the yacht loan, which is worth between $1 million and $5 million, was given at a below-market interest rate, but the public has not been told the particulars of the deal.

“I don’t know if Buchanan accepted a better rate but I want to find out,” Shapiro said in an interview after his speech.

He said he was pleased with the turnout from “enthusiastic” voters and hopes they keep the yacht loan in mind when they hit the polls.

“The voters should consider it. That’s the transparency part of it,” Shapiro explained. “Voters have a right to know what representatives are up to.”

Shortly after the event, Shapiro sent out a statement condemning “pay-to-play” politicians in Washington.

“The people of Southwest Florida deserve to know whether Mr. Buchanan got a sweetheart deal on his loan in exchange for favors in the tax bill,” Shapiro said in a release. “He should answer the call of residents and release the terms of his deal at once.”

Will the terms of the loan be released? Shapiro said he doesn’t know, but Max Goodman, Buchanan’s campaign manager, has an idea.

“We’d be happy to talk about that as soon as Shapiro sells his dirty stocks,” Goodman said, citing Shapiro’s individual investments in companies such as Exxon, Chevron and ConocoPhillips, which have been subject to criticism for their contributions to climate change — a key campaign issue for Shapiro.

Other Buchanan supporters called Shapiro’s speech a political stunt meant to shift the focus from his stock holdings.

“He’s trying to make a scene outside of Vern’s office? There are more productive things to be doing, like getting his facts straight,” said Sami Araboghli, who attended the event with his own protest sign that said “Sneaky Shapiro #Hypocrite.”

Goodman said Buchanan was not at his office as Shapiro’s demonstration took place. Instead, the representative was in Hillsborough County meeting with constituents on Thursday.

Frank Hedy, a Vietnam veteran and Buchanan supporter, said he wasn’t familiar with the latest yacht loan attacks but commended the Sarasota lawmaker for his ability to connect with voters.

“Buchanan is doing all he can to help and he’s doing a good job,” said Hedy, who fought back tears as he described all that Buchanan has done for veterans.

Some of Shapiro’s supporters frowned upon the loan deal. Karen Kates said the connection between the loan and political lobbyists was cause for concern.

“For him to get the loan from a bank that lobbied legislators is really low,” she said.

Carol Stone also attended the protest and said she believed it was possible for Buchanan to have accepted a loan in exchange for beneficial tax policy. She warned that voters should do their research and hold candidates and politicians accountable.

“You have to pay attention not just to what they say, but what they do as well,” Stone said.

Buchanan is running for re-election to the House of Representatives without Republican competition. As he waits for the general election, Democrat voters must choose between Shapiro and Sarasota attorney Jan Schneider on primary Election Day, which is Tuesday.

This story was originally published August 23, 2018 at 1:59 PM.