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SD Democrats Call For Subpoenas Regarding EB-5 Scandal

SD Democrats Call For Subpoenas Regarding EB-5 Scandal

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SIOUX FALLS, S.D. (AP) — South Dakota Democratic lawmakers are calling on a legislative committee to issue subpoenas for Gov. Dennis Daugaard, former Gov. Mike Rounds and others involved in the state’s program that administered an investment-for-green-card program.

Lawmakers say the Government Operations and Audit Committee should issue the subpoenas to seek answers regarding allegations of financial misconduct at the Governor’s Office of Economic Development.

A state audit found that before Richard Benda left his job as head of that office in 2010, he tacked on an extra $550,000 to a grant agreement to help a struggling beef plant. A report from Attorney General Marty Jackley showed the same amount was improperly diverted to SDRC Inc., Benda’s new employer.

SDRC administered the state’s investment-for-green-card program.

Benda committed suicide in October.

Both governors are Republican.

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