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Is Terry McAuliffe’s Million Car A Year Factory Completely Phony?

Terry McAuliffe
’s Michael Patrick Leahy has burst the bubble surrounding the Democratic Party of Virginia's gubernatorial nominee, close Clinton confidant Terry McAuliffe.

In an explosive article datelined Saturday, August 10, Leahy details how “In a 2009 Private Placement Memorandum, the company said that invested funds ‘will permit GreenTech Automotive to purchased its optioned property [in Tunica County, Mississippi] and then build and operate an automotive plant that produces between 200,000 and one million automobiles each year’."

Wow, a million cars – that’s more than Chrysler’s total sales of domestic cars and trucks!

(click here to see The Wall Street Journal’s analysis of the American automobile market for a base by which to judge McAuliffe’s claims.)

According to Leahy’s reporting, GreenTech Automotive officials will not reveal details of the company's capital structure, but Breitbart News has been able to put together this summary of investments in GreenTech Automotive from published reports and publicly available records, which totals $37.5 million:

$7.5 million from Chinese national EB-5 investors before the Department of Homeland Security's US Citizenship and Immigration Services (USCIS) California regional center director halted the issuance of I-526 petitions to GreenTech EB-5 investors in July 2010.

$5 million in loans from the state of Mississippi. $3 million was loaned directly to GreenTech Automotive, and $2 million was loaned to Tunica County to acquire the 100 acre field from a local businessman. That 100 acres was subsequently transferred to GreenTech by the Tunica County Economic Development Foundation. Breitbart News confirmed with the Mississippi Development Authority on July 22 that these loans have been completely disbursed.

$25 million in EB-5 investments made by 50 Chinese nationals made subsequent to a September 1, 2011, decision in which USCIS director and current Obama administration nominee to become the next Deputy Secretary of Homeland Security Alejandro Mayorkas overruled career DHS officials and removed the halt on I-526 petitions placed in July 2010.

Also on Friday, August 9, The New York Times’ Trip Gabriel reported that "[i]n 2011, Mr. Mayorkas overruled two lower officers in his department, Citizenship and Immigration Services, which allowed GreenTech to recruit more Chinese investors." This "reversal of his subordinates in favor of GreenTech was issued on Sept. 1, 2011, records show. It cleared the way for more than 50 green cards worth $25 million in Chinese investments."

Alejandro Mayorkas issued the rulings after been bombarded by a steady stream of demands from McAuliffe and his lawyers and The New York Times reported that, “When a meeting finally took place in 2011, the official [Mayorkas] seemed to burn with resentment that Mr. McAuliffe went over his head, recalled Charles Wang, the president of the car company. In his first interview since Mr. McAuliffe began his campaign for Virginia governor, Mr. Wang spoke about his former partner’s use of his political connections. He also discussed the role of a brother of Hillary Rodham Clinton, whom Mr. McAuliffe, 56, a Democratic fund-raiser close to the Clintons, brought to the company.”

As their meeting was wrapping up, Gabriel reports Secretary of Homeland Security Janet Napolitano “popped into the room to say hello” and that later, Mr. Mayorkas issued a favorable ruling that cleared the way for GreenTech to recruit more foreign investors.

Employees of the Homeland Security Department whom Senator Charles Grassley of Iowa calls whistle-blowers have leaked to him internal documents the senator suggests show Mr. Mayorkas bending to pressure on behalf of Mr. McAuliffe.

Grassley is now to trying to derail the nomination of Alejandro Mayorkas to become the top deputy to Secretary of Homeland Security Napolitano and in line to succeed her when she steps down in September.

Leahy says it is unclear how much of this additional $25 million has been disbursed to the company. Some or all of it may remain in escrow.

However, according to Leahy’s explosive expose, “The fair market value of the 100 acres the company owns was estimated at $1.8 million by a reliable real estate broker prior to the county's acquisition of the property. Documents filed with the IRS in 2011 by the Tunica County Economic Foundation confirm that value at the time it transferred ownership of the land to GreenTech Automotive. [See page 13 through this link] Let's give the company the benefit of the doubt and accept the claim that it's spent $6.6 million on the site. Add to that a generous estimate of $2.4 million in manufacturing equipment located in the rented Horn Lake, Mississippi production facility, and that brings the company's total assets to $9 million.”

Where did the other $28.5 million go?

Breitbart News has posed that question to the McAuliffe campaign and officials at GreenTech Automotive. According to Michael Patrick Leahy's reporting, spokesperson for GreenTech Automotive emailed this statement to Breitbart News on Saturday: "We are a private company and, like other private companies, we do not share our financial data."

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