Wallis credibility attacked during public comments

Historic City News reviewed the tape of Monday’s meeting of the St. Augustine City Commission when a local attorney with the firm of Upchurch, Bailey and Upchurch, had his financial credibility attacked by outspoken local gadfly, Maureen L. Ortagus.

Donald W. Wallis, who serves as Chairman of First America Foundation, Inc., and, was not at the meeting to offer any rebuttal, was accused by Ortagus of not paying his taxes. Ortagus distributed a printed copy of a document that she said confirms that Wallis was not paying his taxes; with copies given to each city commissioner and city staff.

Wallis was expected to be in attendance to present a report to the commission on the activities of the foundation that received $275,000 from the City for what has been identified as “seed money” for the non-profit organization that has contracted to provide leadership and coordination of the City’s 450th commemoration events.

Ortagus’ motivation for making such public accusations about Wallis’ financial credibility is unknown; however, her timing for such an attack seems apparent.

Ortagus, who does not live in or pay taxes to the City, sternly admonished the commission to do a “better job of choosing who is going to handle taxpayer’s money in the future”. Ortagus, seemed an odd messenger of such an admonition; since she was, herself, discharged as a bankrupt debtor on December 12, 2003, in U.S. Bankruptcy Court for the Middle District of Florida in Jacksonville.

Prior to presentation of the foundation’s report by staff director Jamie Alvarez, City Manager John Regan and City Attorney Ronald W. Brown announced to the commission and audience that last year, Wallis took a dispute over the method the Internal Revenue Service used to calculate the amount of his tax liability to the United States Court of Appeals for the Eleventh Circuit.

Brown said that the dispute had to do with whether certain reported income should be taxed as “regular income” or “capital gain”. Brown said there was no indication that Wallis was attempting to evade payment of his taxes and that the action was not criminal in nature.

We found that in this matter, the court entered its judgment on August 11, 2010 as to the petition of Donald W. Wallis and Kathryn W. Wallis. On September 27, 2010, according to court records, the Wallis’ petitioned for a panel rehearing, however, on October 13, 2010, the court issued an order denying the request and the case was subsequently closed.

Wallis was the one to bring the dispute into court — not the other way around; as was inferred by Ortagus’ comments from the podium, and further, we found that the proper venue to appeal a ruling from the IRS is the US Court of Appeals.

Photo credits: © 2011 Historic City News staff photographer