Lawyer testifies heiress meant payments as gifts, not contributions, to John Edwards

Rachel "Bunny" Mellon's longtime attorney testified that Mellon gave hundreds of thousands of dollars to John Edwards out of "a deep friendship." NBC's Lisa Myers reports from Greensboro, N.C.

The lawyer for Rachel "Bunny" Mellon, the billionaire heiress who bankrolled payments to support John Edwards' mistress, testified forcefully Monday that Mellon considered the payments to be gifts to Edwards, not campaign contributions.


Lisa Myers and Stacey Klein of NBC News contributed to this report by M. Alex Johnson of msnbc.com. Follow M. Alex Johnson on Twitter and Facebook.


The distinction is critical. The government contends that those payments — and about $250,000 from a second wealthy supporter — constituted illegal and unreported donations to Edwards' 2008 presidential campaign. Edwards, who is charged in U.S. District Court in Greensboro, N.C., with six felony counts, argues that they were separate from the campaign and therefore legal.


Mellon, heiress to the Mellon banking fortune, made the payments, which were falsely labeled as being for furniture purchases, because of her deep friendship with Edwards and her desire to help him with a "personal problem," her lawyer, Alex Forger, testified.

After Mellon, who is now 101, lost her husband and her daughter, she had few close friends and took a liking to Edwards "as a person not because he was running for president," Forger said. "If he wanted to be president of Duke University, she would have supported that."

Forger also testified about a conversation with the middleman who handled the checks, Bryan Huffman, Mellon's interior decorator.

"He said the senator did not or should not know" about the money, Forger said, adding that he later thought the checks might have been a scam by Andrew Young, Edwards top aide at the time and now his chief accuser.

Former Democratic presidential candidate, John Edwards, has faced public and private challenges throughout his life and career.

As he left the courthouse, Forger signaled A-OK to the cameras, clearly pleased with how his testimony went.

It's not the first time a prosecution witness has ended up potentially helping the defense more than the government.

Last week, Huffman testified that Mellon knew about the affair and didn't care about it. She thought the payment scheme was "foolish" but was having a "wonderful time," Huffman said.

That came after another prosecution witness, Mark Kornblau, national press spokesman for Edwards' campaign, testified that when given the opportunity to sign an affidavit that he wasn't the father of Rielle Hunter's daughter, Edwards refused because it would be an illegal lie under oath.

Prosecutors said Monday that they may finish their case as early as Thursday. It remained unclear whether they intend to call Hunter to the stand.

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Obviously there is no case against him. The whole world knows what a scumbag he is...let him live with that for the rest of his life....next!

  • 20 votes
#1 - Mon May 7, 2012 3:32 PM EDT

I think it's a shell game... hard to prove anything,... just look at Ted Kennedy... let that girl die and still stayed in office till he died... they get to go by differnt rules.

  • 15 votes
#1.1 - Mon May 7, 2012 3:55 PM EDT

IF the Mellon money was a gift then wouldn't she have had to file a gift tax return? You can't just give anyone money over $13,000 without doing so. Always follow the money but in this case "follow the tax return". Just a thought. He is still a scumbag.

  • 22 votes
#1.2 - Mon May 7, 2012 4:04 PM EDT

Even Edward's lawyer admitted that his client was a scumbag, but that's not what this trial is about. Looks like Edwards will get the "not guilty" verdict, and well he should, all things considered.

  • 14 votes
#1.3 - Mon May 7, 2012 4:09 PM EDT

Oceanview Only -

Typical dip wad who brings up the Kennedy thing. "Left her to die'? You were there? As unforgivable as Kennedy's response to the accident might have been, there is nor has there ever been any evidence that he left anyone to die.

And, a shell game? Look up the definition. Jeez, what a dolt!

  • 7 votes
#1.4 - Mon May 7, 2012 4:15 PM EDT

Mary Jo's dead body in the car at the bottom of the creek with Ted back at the hotel room sleeping...that's not evidence he left her to die? Really?

LOL I'm sure Ted is looking down, or up, and is happy to see he still has defenders...

  • 11 votes
#1.5 - Mon May 7, 2012 4:25 PM EDT

Oh right, J.Camp! The official records, which include a cell phone video of the whole incident, show that valiant Teddy-boy dove back in and searched underwater for hours for his little concubine. And probably, somebody else was driving, right? Afterall, Teddy-boy was a Kennedy, true American royalty, who would only do the noble and honorable thing!

  • 5 votes
#1.6 - Mon May 7, 2012 4:31 PM EDT

Cell phone? I hope you are being sarcastic.

  • 6 votes
#1.7 - Mon May 7, 2012 5:20 PM EDT

LO of Delray

I'm thinking the same thing. Who will pay the taxes on it? I doubt the checks were in Edwards name and again the victim will pay (this is in no way implying Trayvon was a victim if that's what you think I mean). Edwards is the scumbag that should pay and I hope will with his career.

  • 3 votes
#1.8 - Mon May 7, 2012 5:51 PM EDT

LO - It was reported that gift tax returns were filed, see http://articles.latimes.com/2011/may/26/nation/la-na-edwards-20110526

Confussed - What do you mean Edwards "will" pay with his career? He already has, in a big way. If it was not for this, he would have been AG, or another very high profile position in the Obama administration.

  • 1 vote
#1.9 - Mon May 7, 2012 6:13 PM EDT

Camp no I wasn't there I was spending the evening traveling back and forth across a river on a ferry not knowing where I was hopping to be president. and a shell game is where you hide something under a shell and move it around hoping the other person cant guess where it is somewhat contributions you spend and then claim came from somewhere else, I sure even you can understand it you know hiding it.....

    #1.10 - Mon May 7, 2012 6:14 PM EDT

    Attention :The stuff maker 25 Of course you are being very facetious aren't you ? "Ted" is not looking down from anywhere.

    Likely he is running from the flames which would engulf his evil body and mind.

    This cretin did almost as much damage to the US of A as did Bush (recent).

    • 1 vote
    #1.11 - Mon May 7, 2012 6:16 PM EDT

    Simple, was a Form 709 Gift Tax Return filed ? If not, then it was not a gift. Federal Law requires a 709 Form to be filed.

    • 3 votes
    #1.12 - Mon May 7, 2012 6:54 PM EDT

    Josh Brogan:

    RE: your post #1.11

    You like playing God Josh? You know Ted Kennedy is in Hell? I know your "only kidding around", right? Most people I know who kid around this way are actually fairly simple-minded and thus they put forth BS as a cover for their ignorance! Have a GREAT day Josh and keep it simple!

      #1.13 - Mon May 7, 2012 7:33 PM EDT

      Lawyer testifies heiress meant payments as gifts, not contributions, to John Edwards

      The lawyer is a liar and so is Edwards. He is about as low as whale-@!$%#.

      • 2 votes
      #1.14 - Mon May 7, 2012 7:37 PM EDT

      You people shouldn't be passing justice on old teddy now because the good book says that the justice you giveout will be the measure of the justice you get on judgement day. If you believe the word, that is the way it is. So no matter if teddy was guilty or not, you're setting your standards.

        #1.15 - Mon May 7, 2012 7:45 PM EDT

        MM, you beat me to the question. I'd really love to see his tax returns for those years. Which penalty is worse for Edwards... campaign fraud or tax fraud?

          #1.16 - Mon May 7, 2012 9:13 PM EDT

          “I personally do not support gay marriage.” ~ John Edwards, 11/19/2003

            #1.17 - Mon May 7, 2012 9:18 PM EDT

            Bunny Mellon did report the money as a gift and paid the gift tax. Now whether she would have done this if the Bush appointed US Attorney had not started the investigation, or if her attorney had not discovered the money/gifts is a question no one will never know the answer to. But it has been conceded by the prosecution that Mellon paid the gift tax. Even if John Edwards had been faithful to Elizabeth he would not have been AG or had any cabinet level position within the Obama campaign. Edwards no doubt wanted the position, but Obama would not have appointed him to the position, as President Obama holds the AG position in too high a regard.

            • 1 vote
            #1.18 - Mon May 7, 2012 9:31 PM EDT

            This case could be over about 5 minutes after the Prosecution rests its case - when the Defense calls for a dismissal because the Prosecution didn't prove its case.

            Is Edwards a flake - YES.

            Did the Prosecution prove (beyond a reasonable doubt) that he was guilty of the alleged crimes? NO.

            What a waste of time and taxpayer money.

            • 4 votes
            #1.19 - Mon May 7, 2012 10:20 PM EDT

            $250,000?....and that 101 yr old woman did not get a little...sumpin/sumpin sugar from Edwards...Uh Huh...!

              #1.20 - Tue May 8, 2012 12:01 AM EDT

              So what do we know
              He was dipping his small Willie in is lovers dark hole
              He got a $ gift from a friend
              This friend supports the democratic/lovers>< movement
              He's rich and doesn't need a new career
              He's a daddy again >ouch< cause this one hurts
              He was cheating on his wife
              He is a Democrap and fair minded
              Lawyers always take care of one-another
              There are a lot of If's butts and whys
              The reality is >>>>>the case is over unless there is something new..

              • 1 vote
              #1.21 - Tue May 8, 2012 12:15 AM EDT
              Reply

              John Edwards:

              A vile, classless boor.

              • 2 votes
              Reply#2 - Mon May 7, 2012 3:32 PM EDT

              The heiress thought she was doing what? Gift or not, either she was lied to or she was trying to help him hide the truth. Either way, the 'gifts' were a means to an end, and that end was to get Edwards elected. So how is it not a political contribution?

              • 13 votes
              Reply#3 - Mon May 7, 2012 3:35 PM EDT

              Prove it was a gift by showing a copy of the gift tax return filed for that year. Any gift over $13,000 in any year requires said return and will effect the taxable amount in her estate tax return if she ever dies.

              • 13 votes
              #3.1 - Mon May 7, 2012 3:43 PM EDT

              No one has asked just exactly why the woman would give Edwards such a big gift $$$$ unless there was a good reason like getting him elected President.........so I will ask "Why did this woman give you such a gift?"

              • 4 votes
              #3.2 - Mon May 7, 2012 7:11 PM EDT

              when they ask the heiress if she deducted the amount from her taxes for a gift or for a campaign contribution she will say "well I dont know that, I hire accountants for such matters. I knew my friend John needed some help to take care of a girlfriend issue and I was happy to help him out with a gift." So you are testifying that you in fact gave that money as a gift?

              "Well of course it was a gift, I dont see how helping a single woman out who needs help with her baby could possibly be interpreted as a campaign contribution."

              and then the jury nods their head in agreement

              personally I could care less if people want to toss their money away bailing out politicians. I cant believe edwards is facing 15 years of jail time for taking a willing woman's money to pay another willing woman for silence over things that we all are willing to do from time to time.

              • 3 votes
              #3.3 - Mon May 7, 2012 9:38 PM EDT

              OBXRon -

              I agree - why would Ms Mellon give Edwards this money?

              My question is was Edwards 'servicing' Ms Mellon as well as Ms Hunter? Edwards was obviously already a wealthy man - I just don't buy that it was "fun" giving Edwards money. She had a darn good reason to give it IMO. What was the reason.

                #3.4 - Mon May 7, 2012 9:47 PM EDT

                I agree with most the comments here. The check/s were intended as a gift - RIGHT - also I thought one of the checks were written for furniture, (Have to be hiding something was it a gift or furniture) They are definately trying to make this all disappear. There is allot of pants on fire in this case. Check the TAX returns and other official paperwork on the money transactions - It won't be consistent He'll get off with a slap on the hand - wait and see he's got to many $$$$

                  #3.5 - Mon May 7, 2012 10:12 PM EDT

                  The point is--none of the money ever went into the campaign fund--the "donations" were not campaign relatedd. The money was handled as "payments" for "things" that mostly went to buy the scumbag Andrew Young and his twit wife a new home. Andrew Yong is the one who can be tied directly to solicitation of and receipt of the "gifts" that John Edwards knew nothing about (because then he would have violated ethics and could not lie about it). Yes, it was shady. No, it is not illegal to give away money. The recipient of the gift is the one who must account. That was not John Edwards. It was Andrew Young and Ms. Hunter. Young is testifying to save his own butt--granted immunity for his testimony. The prosecutor is an idiot for filing this case and wasting tax payer funds when there is no case.

                  • 1 vote
                  #3.6 - Tue May 8, 2012 8:22 AM EDT

                  Suzq, how does one "service" a 90+ year old woman? I'm sure that you must know many wealthy people since you seem to know how they like to have "fun" with their money. As far as the reason, Ms. Mellon has stated that to her it was fun.

                    #3.7 - Tue May 8, 2012 1:46 PM EDT
                    Reply

                    This whole trial has been a sham from the very initial investigation by a Bush appointed lawyer.

                    Edwards is a slimeball, that I think is universally agreed upon, but this case is based on nothing. He should be vindicated and then he should have the right to go after the prosecution team for misconduct and sue to get the millions back that I'm sure this has cost him.

                    What's more revolting.....John Edwards or a group of politically motivated hacks trying to send someone to jail because they don't like him?

                    • 11 votes
                    Reply#4 - Mon May 7, 2012 3:39 PM EDT

                    George Holding, former Republican US Attorney, now running for Congress was hoping this would happen today because tomorrow is THE GOP PRIMARY.

                    Holding engineered this whole thing to break right now to help him get elected. He's a Jesse Helms former staff member, that's how he got the US Attorney job from George W Bush.

                    Holding was supposed to resign upon Obama's election but instead brought charges and spent the past 4 years prosecuting NC Governor Easley and preparing to prosecute Edwards. Both cases should never have been filed. Holding was told by federal election lawyers he had no case against Edwards.

                    Holding is a master bater not a master lawyer. So far millions of tax dollars spent for nothing

                    • 5 votes
                    #4.1 - Mon May 7, 2012 4:07 PM EDT
                    Reply

                    I worry about having grandchildren like this woman.

                    • 4 votes
                    Reply#5 - Mon May 7, 2012 3:39 PM EDT

                    Unless you're a multi-billionaire, you won't.

                    • 1 vote
                    #5.1 - Mon May 7, 2012 4:08 PM EDT

                    I have worked hard enough over time to worry about it.

                    • 1 vote
                    #5.2 - Mon May 7, 2012 4:23 PM EDT
                    Reply

                    Well if Mrs. Melon thought Edwards was her friend I guess she must have finally figured out that as long as she was keeping the checks coming they were like two fleas on a dog.

                    • 3 votes
                    Reply#6 - Mon May 7, 2012 3:41 PM EDT

                    I wish I had a friend like Bunny. She thought that she was having "fun" with Edwards, I would make her head spin : p

                    • 7 votes
                    Reply#7 - Mon May 7, 2012 3:41 PM EDT

                    so would I

                    • 3 votes
                    #7.1 - Mon May 7, 2012 4:20 PM EDT
                    Reply

                    Why are we going after this slimeball when he amounted to nothing? Cause he supposedly spent campaign contributions of his hooker? Does anyone really care? He lost the race and his character, let it go and move on. I dont see what convicting him will do for anyone at this point unless it is to settle some old vendeta.

                    • 4 votes
                    Reply#8 - Mon May 7, 2012 3:44 PM EDT

                    Hopefully it was to get George Holding elected to Congress...

                      #8.1 - Mon May 7, 2012 4:12 PM EDT

                      hopefully it won't &, hopefully, his opponent has more integrity. Holding would have been expected to resign with a new president 3 years ago. He brought these charges against Edwards to keep from joining the unemployment line for an extra 3 years, so Millions wasted. Holding has had his time at the public trough, the people of NC deserve far better.

                      • 1 vote
                      #8.2 - Mon May 7, 2012 9:25 PM EDT

                      Amen to that.

                        #8.3 - Tue May 8, 2012 1:47 PM EDT
                        Reply

                        Well if it wasn't a political contribution and if it really is a gift then I wonder if someone has reported the income on thier taxes.

                        Either way someone's in some big trouble. Let's see what the IRS has to say.

                        • 10 votes
                        Reply#9 - Mon May 7, 2012 3:44 PM EDT

                        Agree 110%. If was a gift and it needs taxed. Tax fraud on received gift = 1, Contribution = 0!

                        Edwards is in double trouble of his own making.

                          #9.1 - Mon May 7, 2012 5:31 PM EDT

                          Lets get the old lady's lawyer and accountant on the stand and see if they testify that they did not know they had to file gift tax returns.

                            #9.2 - Mon May 7, 2012 6:57 PM EDT

                            Actually it's the person that receives the gift that has to pay the income tax.

                              #9.3 - Mon May 7, 2012 7:24 PM EDT

                              Actually it is not the person who receives the gift that pays taxes on any gift. A person can give up to 13k a year to someone, any more than 13k is taxed. And the tax is the obligation the person making the gift not the person who is given the gift. Earlier articles have made it clear that Bunny Mellon paid the gift tax on the gift/donation.

                              • 1 vote
                              #9.4 - Mon May 7, 2012 9:38 PM EDT

                              Technically you are correct...in that the recipient doesn't pay the taxes. In this case, it is Young(s) that received the gift. I would have been in the best interest that Bunny gave it directly to Edwards who in turn could gift it to Hunter or directly from Bunny to Hunter. Bunny paid her share of the taxes, Edwards would have paid his and Hunter gets her payoff. Or Bunny paid her taxes and Hunter doesn't have to declare it.

                              However, it is what the Youngs did with the portion of the money that went to Hunter that becomes questionable. The Youngs did not have to report what they received but further down the line it either became money that the campaign paid Hunter -- which means the money was converted to campaign money and was then used for personal use, which has Edwards in the courtroom -- or it was gifted on Edwards behalf to Hunter which then means the gift tax was required to be paid by the Youngs and Hunter is required to show it came directly from the Youngs. Follow the money trail and see if Hunter was paid by the campaign or by the Youngs who must pay the gift tax.

                              All this comes from the IRS P525 which addresses reportable income. It directly addresses campaign contributions converted to private use, gift taxes and the third party transfer of gifted income. Most gifts are not generally reportable unless the law specifically includes/excludes what must be reported. It is at the point and time of what the Youngs did with their gifted money that becomes the questionable accounting.

                              Any way it goes, Edwards should have just used his own money or paid the taxes and walked.

                                #9.5 - Tue May 8, 2012 1:11 AM EDT

                                It has been reported that Ms. Mellon paid gift taxes. But, I wonder if she knew that it did not get to the intended ending.

                                  #9.6 - Tue May 8, 2012 1:48 PM EDT
                                  Reply

                                  I've said it before - it's a colossal waste of taxpayer money. The defense couldn't have come up with better witnesses than those the prosecution is presenting.

                                  • 6 votes
                                  Reply#10 - Mon May 7, 2012 3:46 PM EDT

                                  Okay, this broad gave tons of money to Edwards as a "gift" when Edwards just "happened" to be running for president but it "wasn't" a campaign contribution? Give me a break!!! Good thing I'm not on that jury. Edwards would swing!!!

                                  • 6 votes
                                  Reply#11 - Mon May 7, 2012 3:51 PM EDT

                                  Patrick, you would never have gotten on the jury since you had already formed an opinion. You decided to be the judge and jury and convicted the defendant before he had his day in court. Geez, whatever happened to "innocent until proven guilty". Seems to me that these days a person is guilty even before that person goes to trial. Patrick, if you have never done so, I suggest that you try to get on a jury sometime to see just how our justice system is supposed to work.

                                    #11.1 - Tue May 8, 2012 2:13 PM EDT
                                    Reply

                                    The Government needs to suck it up and drop all charges.

                                    • 7 votes
                                    Reply#12 - Mon May 7, 2012 3:51 PM EDT

                                    Any way you look at it...did he pay taxes for the MILLIONS he got if indeed it was a "gift". We would have had to...why do these people think they can get away with rules not applying to them. He would have had to report it on in income tax. Did he? I tend to doubt it.

                                    • 7 votes
                                    #12.1 - Mon May 7, 2012 4:25 PM EDT

                                    All you people bitching about the "gift taxes" and whether Edwards claimed them. Do you people read anything--the person who the checks were written and payable to was the prime prosecution idiot witness - ANDREW YOUNG - nothing went in Edwards name and NO MONEY was ever received by EDWARDS - just Young and the mistress.

                                    Yep--you people really have NO IDEA and NO SHAME about it!!

                                    • 4 votes
                                    #12.2 - Mon May 7, 2012 4:46 PM EDT

                                    However, it did then turn around and get "gifted" again to Hunter and Johnny. That's how the rules are written. That's why social security payments are taxed on money that has already been taxed. One gets taxed on money they receive -- each and every person that receives it. Follow the money flow -- it goes from Mellon to Young to Edwards to Hunter but the taxing doesn't stop at Young. Each person has to show their portion received on their taxes. The tax return of Young should show the original amount and then Edwards his reduced portion and Hunter hers and so on and so forth...

                                    We do have an IDEA and have no reason to have SHAME because some of us really do play by the rules and pay our taxes!

                                    Oh, and Bunny's tax return shouldn't show it as a charitable deduction but as a gift of furniture to Young?

                                      #12.3 - Mon May 7, 2012 5:40 PM EDT

                                      Why are you including Edwards in your little chain of taxation? He never touched it. Bunny's decorator friend gave it to the Youngs.

                                      How silly to suggest Bunny would have claimed it as a "charitable deduction." It wasn't to a charity - which she would know, since she's given to plenty of charities in her time.

                                      It's clear from the testimony of her associates that Mrs. Mellon was simply giving away a lot of money - and she had a good time doing it. If anyone has some explaining to do, I'd say it's the Youngs.

                                      • 3 votes
                                      #12.4 - Mon May 7, 2012 7:31 PM EDT

                                      Look beyond just the testimony in the trial. The public can do so because we aren't part of the jury. We get to see a bigger picture.

                                      Edwards is included because he is the one with the minor as the dependent for tax purposes. Whether or not the child is on his tax return or just Hunter's, the support came from Edwards for all intents and purposes -- he has even admitted that he has momentarily supported the child -- to keep it from Elizabeth. Either the money trail for supporting the child must come from Edwards thru the Youngs and was personal or it came thru Edwards campaign to Youngs to Hunter. He can claim all he wants that the money went from Bunny to the Youngs and directly to Hunter but he must prove it either to the jury or to the IRS.

                                      Either he is lying about the money to the jury, he is lying to the IRS or he is lying about the monetary support being from him as the father of the baby. Now we all know he is a one big lie, but the question remains, which law(s) did he break with his lies -- campaign financing, IRS or deadbeat dad.

                                      The IRS even has a special place for child support paid/received so follow the money trail from Bunny to the babe. Where does each dollar end its travels...

                                        #12.5 - Mon May 7, 2012 8:23 PM EDT

                                        I can't see Hunter nor Young getting a dime from Mellon, without an Edwards running for President. Mellon's financial history would show my idea wrong if over the course of her years of gift giving there were on the list unwed mothers and advisors with no political influence. Her gift, to my philosophical thinking, falls in the same category as parents giving ( bailing out ) money towards their children's debts, so their grandchildren aren't living poorly. It's similar in nature, but because Edwards is not Mellon's child, her money should be " taxed " as gift money over the limit of gifts, or found to be a campaign contribution. Mellon's in the game of political influence, and had this scandal not come to light and Edwards were elected, you can be sure Mellon would have reminded Edwards of his bastard child and mistress living on her money every time there was a political interest of Mellon's up for vote in Washington.

                                        • 1 vote
                                        #12.6 - Mon May 7, 2012 9:31 PM EDT

                                        But all you people seem to forget--IT IS NOT ABOUT WHETHER JOHN HAD A BABY WITH HUNTER--it is the money trail.

                                        The prosecution CAN NOT tie any of that money given to Young and Hunter to the Edwards campaign. NONE OF IT. It doesnt matter that you dont like any of them. It doesnt matter that Bunny Mellon gave this money as gifts because she likes John. You cant prosecute BAD TASTE. If we only COULD!!!

                                        As for all you trying to tie Edwards in because you think he is SCUM, get over it.

                                        As for the TAXES--that is up to the IRS not the courts. Again, you cant prosecute just because you dont like -- otherwise -- I have a LONG LIST of people that need to go before the courts!!!

                                          #12.7 - Tue May 8, 2012 12:43 PM EDT

                                          How can Edwards pay taxes on the money when, according to many of the people involved, it never got any farther that the Youngs. My question would be, did the Youngs and Hunter pay gift taxes. One wonders why the Youngs were granted immuity for their testimony if in fact they were clean.

                                          • 1 vote
                                          #12.8 - Tue May 8, 2012 1:52 PM EDT

                                          Oh Susie-- there you go again -- using facts and and questioning the true meaning of this farce. You are leading one to believe that you actually think for yourself and use your brain for more than a hat holder!

                                          You go girl!

                                            #12.9 - Thu May 10, 2012 4:24 PM EDT
                                            Reply

                                            So let me get this straight, a president invades another country with known lies as a pretext, uses torture and spies on his own citizens and yet he is walking about happily as ever, another guy running for the same job, cheats on his wife, and doesn't report a gift and may get 20 years in prison???? America, America, how low have you fallen? No wonder the rest of the world laughs at us and hates us!

                                            • 5 votes
                                            Reply#13 - Mon May 7, 2012 3:57 PM EDT

                                            Kinda reminds me of some guy who has an effective tax rate of 13%...while us (non-millionaires) pay more than twice that rate. Wild, isn't it!

                                            • 3 votes
                                            #13.1 - Mon May 7, 2012 9:47 PM EDT
                                            Reply

                                            Gift? Last I knew you could give anyone money...child, wife, brother or bar tender. Problem is tax consequences. I think it's limited to $20K a year.

                                            I wonder if Edwards and Mellon reported it to the tax man!

                                            • 5 votes
                                            Reply#14 - Mon May 7, 2012 3:59 PM EDT

                                            13K

                                            • 1 vote
                                            #14.1 - Mon May 7, 2012 4:05 PM EDT

                                            It is $13,000 a year.

                                              #14.2 - Mon May 7, 2012 4:06 PM EDT

                                              reported by giver, not receiver

                                              • 2 votes
                                              #14.3 - Mon May 7, 2012 4:07 PM EDT

                                              Receiver also has to report over the $13,000. If not then it is the receiver who is looked into...

                                                #14.4 - Mon May 7, 2012 5:44 PM EDT

                                                To clarify the above post about the receiver of a gift...

                                                My post is not to insinuate that the amount over $13,000 gets taxed against the receiver of the gift. It is only to state that the amount over the taxable limit is supposed to be declared as a gift by the recipient. That's the way the IRS does things -- show one positive column and one negative column. Whatever the difference between the two....Standard accounting 101 :-).

                                                  #14.5 - Mon May 7, 2012 5:57 PM EDT

                                                  It is $13000 a year but at the time this happened it may have been $12000 a year. Gifts over that amount are subject to tax .

                                                  • 1 vote
                                                  #14.6 - Mon May 7, 2012 7:06 PM EDT

                                                  A person who receives a gift does not have to report it. It is not income, it is not taxable, and the person who receives the gift is not required, and has never been required to report the gift, or file anything. Anyone who gives in excess of 13K in a year to an individual must file a gift tax declaration with their taxes (Bunny Mellon did this, as has been reported previously) Whether a person giving someone a gift in excess of 13K in a tax year must pay a gift tax depends upon their own individual financial/tax situation.

                                                  John Edwards is scum, but even if he had received the money directly he would not have violated any tax laws, which is why no one was charged with any tax violation.

                                                  • 1 vote
                                                  #14.7 - Mon May 7, 2012 9:58 PM EDT
                                                  Reply

                                                  What was he (Edwards) doing the 101 year old billionaire broad too? YYYUUUCCKKKKKKKK!!!!!!!!!

                                                  • 1 vote
                                                  Reply#16 - Mon May 7, 2012 4:15 PM EDT

                                                  It paid well !

                                                  • 2 votes
                                                  #16.1 - Mon May 7, 2012 7:01 PM EDT
                                                  Reply

                                                  Bunny was living the old days and remembering what she and her husbands did when they were young. The Prosecutor/FBI were told this years ago before Elizabeth Edwards died. Bunny said the money was a gift for what ever John wanted to do with it and she knew about the affair. Now Mr. Young and his wife saw a way of paying for their 1.5 million dollar home by taking the money. The prosecutors knew this but it was a personal attack on John Edwards. Young was given no charges for the crimes he committed as long as he testified again Edwards. The big winner is Mr. and Mrs. Young. Wealthy people live different and morals don't matter money takes care of everything. Bunny has so much money even the government doesn't know. Bunny has an airport, 7 homes in 7 countries and 9 homes across the USA. Look for John to be in her Will. If nothing else this gave a 101 year old woman a good laugh at the common folks. Elizabeth Edwards knew Bunny and the matter was cleared up with both women. If it is still confusing just ask Mitt Romney what the rules and secret life that wealthy people have.

                                                  • 2 votes
                                                  Reply#17 - Mon May 7, 2012 4:21 PM EDT

                                                  Nothing will happen to Bunny the Money Giver if she did not report it to the IRS. She is a Democrat. Give money to the Obama campaign and move along...nothing here to see.

                                                  • 3 votes
                                                  Reply#18 - Mon May 7, 2012 4:23 PM EDT

                                                  Just like Mark Rich pardoned by Clinton for CRIMINAL tax conviction on the advice of Obama's current Attorney General Eric Holder.

                                                  • 2 votes
                                                  #18.1 - Mon May 7, 2012 4:29 PM EDT

                                                  CoCo-1551796:

                                                  You are not up to date informationwise. She paid a gift tax on this money, so it was reported as given to Edwards. "She is a Democrat" is not the issue. It is becoming obvious it was not contributed to his campaign. So, as it did not go to the campaign for a campaign expense, but was used to for non campaign purposes, such as supporting a woman who obviously set Edwards up, and he fell for it.

                                                  • 1 vote
                                                  #18.2 - Mon May 7, 2012 6:02 PM EDT
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                                                  So have her produce the gift tax returns for the years in question

                                                  If the money is not listed it would be a contribution.

                                                  Contributions are not listed on gift tax returns.

                                                  Gifts are listed on gift tax returns.

                                                  Federal senate campaign contributions are not deductible so they would not be disclosed on a personal income return either.

                                                  Tax returns are confidential outside of the court so simply filing the return would not have disclosed why she gave him the money, only that she made a gift.

                                                  The absence of reporting the amounts on a gift tax return would be, by itself, damning to Edwards who had the obligation to report the contributions.

                                                  Case closed.

                                                  • 4 votes
                                                  Reply#19 - Mon May 7, 2012 4:27 PM EDT

                                                  Amendments are not just for the Constitution - she can amend her tax returns. Boooyaa!!!

                                                    #19.1 - Mon May 7, 2012 4:32 PM EDT

                                                    Sorry to disappoint, statute of limitations has expired

                                                    • 1 vote
                                                    #19.2 - Mon May 7, 2012 4:37 PM EDT
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                                                    if this dough was a gift then edwards needs to pony up the taxes due on this 'gift'

                                                    • 1 vote
                                                    Reply#20 - Mon May 7, 2012 4:32 PM EDT

                                                    Maybe Edwards needs to amend his tax returns for that year as well.

                                                      #20.1 - Mon May 7, 2012 4:36 PM EDT

                                                      Statute also expiired, raise you a booyaaa

                                                      • 3 votes
                                                      #20.2 - Mon May 7, 2012 4:40 PM EDT

                                                      Statue of limitations doesn't expire on murder or fraud!

                                                        #20.3 - Mon May 7, 2012 5:54 PM EDT

                                                        It does on ammending a tax return

                                                        • 2 votes
                                                        #20.4 - Mon May 7, 2012 6:17 PM EDT

                                                        Then, if they didn't claim the gift and the window closed to amend, they filed a fraudulent claim.

                                                        If the Feds can make a case they intended to subvert the campaign finance laws; they can be charged with a R.I.C.O. violation. Which is far worse than anything Edwards is currently charged with!

                                                          #20.5 - Mon May 7, 2012 9:05 PM EDT
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                                                          Shame! Shame! Edwards is an attorney and he lies big time. Now he has another attorney lying for him. LOL! The worst part is Bunny Mellon was helping him cheat on his wife. What kind of person can she be? I think I just answered my own question. Poor Elizabeth... what a tragic end she had.

                                                          • 3 votes
                                                          Reply#21 - Mon May 7, 2012 4:44 PM EDT

                                                          Just think, 4 short years ago, John Edwards was the democrats new Kennedy. Looks like they were closer to truth than they knew. Any retractions for our democrat posters?

                                                          • 1 vote
                                                          Reply#22 - Mon May 7, 2012 4:56 PM EDT

                                                          I think I could use $250,000 worth of furniture to help me with my "personal problem"......

                                                          • 1 vote
                                                          Reply#23 - Mon May 7, 2012 5:00 PM EDT

                                                          More evidence of a political prosecution. The GOP prosecutor is the criminal in this case.

                                                          • 2 votes
                                                          Reply#24 - Mon May 7, 2012 5:03 PM EDT

                                                          Does anyone know if Bunny Mellon declared the payments as a campaign contribution?

                                                            Reply#25 - Mon May 7, 2012 5:09 PM EDT

                                                            You don't declare campaign contributions. Candidates are obligated to declare contributions they receive to the FEC. Bunny Mellon declared the amount given to Edwards via Young as a gift. John Edwards is scum, but there is no tax violation.

                                                            • 1 vote
                                                            #25.1 - Mon May 7, 2012 10:29 PM EDT
                                                            Reply

                                                            Mellon, heiress to the Mellon banking fortune, made the payments, which were falsely labeled as being for furniture purchases, because of her deep friendship . . . blah blah blah.

                                                            I can understand this and sympathize with old Mellon "Bunny"-money-bags . . . everytime I write a check for hundreds of thousands of dollars I oftentimes get confused about what I'm spending it on and mis-label it on the check memo . . . they're such paltry sums afterall . . . I don't care whether John Edwards is found guilty or not -- his sentence will be served in the court of public opinion . . . all of his other achievements are greatly diminished as a result. When people see this man all they're going to see is a desperate slimebag that cheated on his dying wife and took old Bunny Mellon for a financial ride . . . but remember, she did it because of her deep friendship with John -- not for any political sway . . . Rich people!!! One will lie and the other will swear to it.

                                                            • 4 votes
                                                            Reply#26 - Mon May 7, 2012 5:16 PM EDT
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