Paul files belated financial disclosure form

Increased $116,000 in last 4 months of 2009

habdullah@mcclatchydc.comJune 30, 2010 

WASHINGTON — In the last four months of 2009, Kentucky Republican Senate candidate Rand Paul's income as an eye surgeon increased about $116,000 and his rental income dropped by roughly $76,000, according to federal financial filings.

The Secretary of the Senate's office received Paul's updated financial disclosure form June 22, after the Bowling Green ophthalmologist missed a May 17 deadline to report new financial information. Under reporting requirements, candidates are given a 30-day grace period to submit reports detailing their personal financial status.

Paul's campaign filed a new report shortly after the grace period expired and might face a $200 late filing fee according to Senate ethics rules.

On the new form, Paul's income as a physician is listed as $163,000 — up from the $46,143 he reported in September. Paul's lower income last fall reflects the initial financial strain the ophthalmologist faced when he opened his medical practice, Jesse Benton, Paul's campaign manager, said earlier this month.

In the earlier part of the decade, Paul loaned himself roughly $100,000 and then an additional $80,000 in 2007, Benton said.

Paul tweaked his personal financial report after it was discovered that his campaign made mistakes in the earlier filing, including listing a self-financed loan to his medical practice as "rental real estate/royalties."

"Because the money is taxed at a different rate it was included as 'royalties,'" Benton said earlier this month.

According to the Senate ethics committee, candidates do not ordinarily list those types of loans in that manner.

The campaign was not immediately able to answer the Herald-Leader's questions about why Paul's income appeared to sharply increase in the last four months of the year, the decrease in rental income and the exact amount of rental income from several real estate properties listed.

The form lists income of $5,000 to $15,000 from a condo in Destin, Fla., and a rental property in Bowling Green. He garnered $50,000 to $100,000 from another property in Bowling Green.

Paul's total rental income, money accumulated from a family owned business called Alchemy LLC, is listed as $99,370 — down from the $176,223 on the prior disclosure form.

According to state tax assessment documents, one of the Bowling Green properties, an office building, is valued at $325,000 and another property, a residential home, is valued at $94,000.

Paul previously had criticized his Democratic opponent, state Attorney General Jack Conway, for receiving an August deadline extension to update his personal financial information with the secretary of the Senate — a requirement of candidates and elected officials seeking federal office. It is the same type of extension the Paul campaign later discovered it would also need.

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