Sen. Tina Smith’s husband has an investment valued at up to $1 million in a hedge fund in Bermuda, according to recent financial disclosure forms.
As lieutenant governor, state law only required Smith to disclose her own assets or assets held jointly between her and her husband. However, since being appointed by Gov. Mark Dayton to temporarily fill former Sen. Al Franken’s seat, Smith has been required to include her husband’s assets in her financial disclosures, providing a more comprehensive look at Smith’s financial situation.
According to the financial disclosure, Smith has a wide-ranging investment portfolio valued at over $12 million. Most of the investments are held by her husband, independent investor Archie Smith, including a large offshore asset worth up to $1 million.
Journalist Brent Scher from the Washington Free Beacon was the first to call attention to the offshore asset. As Scher explains, Pine Grove Asset Management, the fund’s parent company, is based in New Jersey. However, research shows the specific fund Smith’s husband invested in is actually in Bermuda. Bermuda’s friendly tax laws–including no corporate tax, no income tax, and no capital gains tax–attracts investors looking for a tax haven.
When asked about the offshore asset, a spokesperson for Smith’s campaign said the investment is part of an individual retirement account, and claims Smith’s husband is in the process of selling the account.
Scher reports that it is unclear whether the divestment is due to the offshore aspect of the account.
According to a 2013 report, Minnesota loses nearly $2 billion a year to offshore tax havens, more than all but five other states.
Smith has also received backlash for her husband’s investments in pharmaceutical companies like Abbott Laboratories, which marketed the powerful opioid OxyContin. Smith has been called out for hypocritically condemning drug companies while receiving income from her investments in them.
