Mitch McConnell’s Freighted Ties to a Shadowy Shipping Company [View all]

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Mitch McConnell’s Freighted Ties to a Shadowy Shipping Company
After drugs were found aboard the Ping May, a vessel owned by his wife’s family’s company, Colombian authorities are investigating.
http://www.thenation.com/article/186689/mitch-mcconnells-freighted-ties-shadowy-shipping-company#

The seizure of the narcotics shipment in the Caribbean port occurred far away from Kentucky, the state in which Senator Mitch McConnell is now facing a career-defining election. But the Republican Senate minority leader has the closest of ties to the owner of the Ping May, the vessel containing the illicit materials: the Foremost Maritime Corporation, a firm founded and owned by McConnell’s in-laws, the Chao family.

Though Foremost has played a pivotal role in McConnell’s life, bestowing the senator with most of his personal wealth and generating thousands in donations to his campaign committees, the drug bust went unnoticed in Kentucky, where every bit of McConnell-related news has generated fodder for the campaign trail. That’s because, like many international shipping companies, Chao’s firm is shrouded from public view, concealing its identity and limiting its legal liability through an array of tax shelters and foreign registrations. Registered through a limited liability company in the Marshall Islands, the Ping May flies the Liberian flag.

McConnell has benefitted in many ways from his relationship with his in-laws.
The Republican Senate minority leader’s personal wealth grew seven-fold over the last ten years thanks in large part to a gift given to him and his wife in 2008 from James Chao worth between $5 million and $25 million (Senate ethics forms require personal finance disclosures in ranges of amounts, rather than specific figures). The gift helped the McConnells after their stock portfolio dipped in the wake of the financial crisis that year, and ensured they could pay off more than $100,000 in mortgage debt on their Washington home.

The generous gift made McConnell one of the wealthiest members of the Senate, with a net worth averaging around $22.8 million, according to The Washington Post’s review of his financial disclosures.

Following the gift, McConnell sent a letter of congratulations to an auditorium of Chinese officials in Shanghai who were gathered for an event honoring James Chao’s wife (McConnell’s mother-in-law, Ruth Mulan Chu Chao, who passed away in 2007). The Shanghai Mulan Education Foundation, created in her honor, regularly hosts students from the University of Louisville, where McConnell has a leadership academy bearing his name that sends students on trips to China.