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Warrantless inventory search of vehicle not unreasonable, COA holds

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JENNIFER NELSON FOR WWW.THEINDIANALAWYER.COM

Despite a police officer’s failure to strictly follow relevant procedures for completing a written inventory of items found in an impounded car, the Indiana Court of Appeals affirmed that the warrantless search of the car was not unreasonable.

Robert Weathers was pulled over by Marion County Sheriff’s deputy Onsel Andre because the expiration date on the SUV was obscured. After pulling Weathers over, Andre learned that Weathers did not have a valid driver’s license and was not the owner of the car. He arrested Weathers for driving without a license and asked if someone could retrieve the car since it would block traffic. No one was able to do so within the time frame provided by Andre, so the deputy decided to impound the car. Weathers told Andre there was a handgun in the car, and Andre found it where Weathers said it would be.

Weathers was charged with Class A misdemeanor carrying a handgun without a license, elevated to a Level 5 felony based on a prior felony conviction, and Class A misdemeanor driving while suspended, and convicted on both charges. He sought to suppress all evidence stemming from the warrantless search of the car, but that was denied.

On appeal, Weathers maintained that the inventory search was unreasonable. Inventory search of an impounded vehicle is an exception to the warrant requirement, but the state bears the burden of proving the search was reasonable under the Fourth Amendment. The Court of Appeals agreed that the decision to impound the car was reasonable because the car would impede traffic.

The judges found that Andre did not comply with the department requirement that he compile a written inventory of all items found in the vehicle. But his failure to do so does not render the search unreasonable, Judge Cale Bradford wrote, citing Whitley v. State, 47 N.E.3d 640, 646 (Ind. Ct. App. 2015).

The purpose of the inventory requirement is to protect both the individual and the deputy. Weathers doesn’t contest the handgun was found in the car where he told the deputy it was located, and Andre could see the gun in plain view.

“Deputy Andre’s apparent failure to complete a written inventory had no bearing on any of these facts. As such, upon review, we are unable to see how Weathers was prejudiced by Deputy Andre’s apparent failure to complete a written inventory of all items found in the vehicle. We are also unconvinced that Deputy Andre’s apparent failure to complete a written inventory of all items found in the vehicle suggests that his rationale for completing the warrantless inventory search was a pretext for completing an unlawful search,” Bradford wrote.

The judges also affirmed there was sufficient evidence to support elevating the handgun charge to a felony because Weathers’ attorney stipulated to the fact he had a prior felony conviction within the statutorily proscribed timeframe.

The case is Robert Weathers v. State of Indiana, 49A04-1601-CR-3.

CURRENT ISSUES IN THE AREAS OF ESTATE, TAX AND PERSONAL AND BUSINESS PLANNING by RANDY CRAIG

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The information that follows summarizes some of the current issues in the areas of estate, tax and personal and business planning which may be of interest to you. Although this information is accurate and authoritative, it is general in nature and not intended to constitute specific professional advice. For professional advice or more specific information, please contact my office.

Tax Court Upholds Family LLC. In Estate of Purdue, TCM 2015-249, the Tax Court rejected an attack by the IRS on a family limited liability company (LLC). This case involved the transfer by a decedent and her husband to an LLC of a portfolio of marketable securities with a value of more than $20 million and their one-sixth interest in commercial real estate with a value of approximately $900,000. The real estate was managed by a management company and was subject to a triple net lease. Other assets were transferred as well. The couple then established a trust and made gifts to the trust over a period of several years. The decedent’s husband had died many years earlier, and then when she died, the IRS attacked the scheme and attempted to include the assets of the LLC in the taxable estate of the deceased widow for federal estate tax purposes and also took the position that the gifts were not eligible for the gift tax exclusion. Without getting into too much depth regarding the tax concepts involved, the biggest issue concerning family limited partnerships (FLPs) and family limited liability companies (LLCs) is that the transfer may not be treated as bona fide, and the decedent’s retained interest might cause the value of the entire entity to be brought back into the estate of the decedent for federal estate tax purposes. Some FLPs and LLCs involving marketable securities have faired less favorably than entities holding other assets, which predominantly would be real estate. However, in this instance, the Tax Court upheld the transactions because the proper legal formalities were followed, the documentation prepared was consistent with the transactions, and there were legitimate non-tax reasons in addition to tax reasons for implementing the series of transactions. This case provides clear support for the use of FLPs and LLCs in family estate planning. It also provides a road map for practitioners to follow when implementing such a plan.

Leaving Retirement Benefits To A See-Through Trust. The biggest issue affecting retirement benefits being paid to a trust is whether the trust meets the IRS requirements for the minimum distribution trust rules. If so, then the benefits can be paid out over the life expectancy of the beneficiary. If it meets these requirements, the trust is referred to as a “see-through trust.” The pay-out period will be the life expectancy of the oldest trust beneficiary. In general, it is probably better to avoid paying IRAs and other retirement benefits to a trust. However, when appropriate, it is very important to assure that the trust meets the see-through requirements. The trust should not allow using the

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retirement benefits for the payment of the participant’s debts or probate expenses, unless there is no other source for payment (in which event the payments should be limited to the specific amount required to pay those expenses). There should not be a charitable beneficiary of a see-through trust. It may also be appropriate to exclude adult adoptees from the definition of “issue,” since all beneficiaries of the trust must be identifiable. Since the trustee of the trust must supply certain documentation to the plan administrator, it may be a good idea to spell out specifically what it is contemplated the trustee will do. It may also be a good idea for the trust to be a conduit trust, which means generally that the trustee is required to pay out the withdrawn minimum distributions to the specific trust beneficiaries. People should always be careful when a trust is designated as the beneficiary of retirement benefits.

Business Succession (Cont’d). The last newsletter addressed some of the preliminary basics regarding business succession planning. It may now be appropriate to address other succession planning and family concerns. Statistics show that only about 30 percent of family businesses last beyond the first generation, and only a little more than ten percent last beyond the second. Almost none survive to the fourth generation. It should be noted that there is a difference between ownership succession and management succession. Even before the business passes down to the next generation, consideration should be given to management’s withdrawal, or management’s “exit” from the management of the business, even though ownership may not change immediately. The family and other successors might become involved in the active management of the business many years before the control of the business may change. As you begin to think through and plan for these issues, it is important to consider whether there are children of family members or others who are interested in and capable of succeeding to a position of management or ownership, and to begin to help them develop the skills necessary to take an active roll. Obviously, the family is integral to this process. They must be groomed for that involvement and they must feel confident that the parent or ancestor is serious about the transfer of ownership or management control, and their vision must match that of the business owner who is beginning his or her exit from the enterprise. Consideration should be given to involving them in the management process for a period of time through participation on the board of directors or a management committee, and perhaps placing them in a limited ownership position that they can augment over time. Additional thoughts pertaining to these business succession issues will be offered in the next edition of this newsletter.

Meaning Of “Devise” And “Bequeath.” People frequently ask why the words “give,” “devise” or “bequeath” are used in wills. Under the English Common Law, real estate was the proper subject of a “devise,” and a “bequest” covered personal property. A “gift” could be made of any property. The difference between one and the other does not really matter much in modern times, but wills are still generally drafted to include that phraseology. Often a will provision referencing cash or personal property will say “I give and bequeath,” while if real property is involved, the provision might say “I give and devise.” Residuary provisions are typically phrased as “I give, devise and bequeath.”

Additional Information. Future issues of this Newsletter will address other issues of current interest. Please contact my office with any questions that you might have.

Adopt A Pet

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Stewie is a 6-year-old male Schnauzer/Poodle mix. He only weighs 14 lbs. His owner passed away, and then he lived alone for 6 months while someone came once a day to feed him and let him out. He’s had a sad few months, but thankfully now, he’s at VHS where he gets plenty of love and attention from staff, volunteers, and visitors. His $120 adoption fee includes his neuter, microchip, vaccines, and more. Call (812) 426-2563 or visit www.vhslifesaver.org for ad

Highland Elementary to Host Back to School Bash and Cruise In

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Highland Elementary School is welcoming students back to school by hosting a Back to School Bash and Cruise In, Friday, August 19, from 5 to 8 p.m. The event, sponsored by Highland PTA, is open to anyone in the community. Cost for the event is $10 per adult and all children are free. At the event, families will be able to enjoy inflatables, food and music as well as classic cars. The Dream Car Museum is sponsoring trophies, dash tags and also will be on site with a super-car.

VANDERBURGH COUNTY FELONY CHARGES

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Evansville, IN – Below is a list of the felony cases filed by the Vanderburgh County Prosecutor’s Office today.

Michael Avon Eastwood Maintaining a common nuisance – controlled substances, Level 6 felony

Zachariah York Kemper Maintaining a common nuisance – controlled substances, Level 6 felony

Unlawful possession or use of a Legend Drug, Level 6 felony

Possession of a controlled substance, Class A misdemeanor

Stacy Marie Kurtz Maintaining a common nuisance – controlled substances, Level 6 felony

Michael Joseph Titzer Possession of methamphetamine, Level 6 felony

Roseanna Marie Gibbs Possession of methamphetamine, Level 6 felony

Possession of paraphernalia, Class C misdemeanor

Kelton Kane Casteel Resisting law enforcement, Level 6 felony

Operating a vehicle while intoxicated endangering a person, Class A misdemeanor

Operating a vehicle with an ACE of .08 or more, Class C misdemeanor

John David Joseph Beck Operating a vehicle while intoxicated, Level 6 felony

Operating a vehicle with an ACE of .08 or more, Level 6 felony

Kerry Louis Knollman Unlawful possession of a syringe, Level 6 felony

Operating a vehicle with an ACE of .15 or more, Class A misdemeanor

Dakota Michael James Auto theft, Level 6 felony

Possession of a controlled substance, Class A misdemeanor

Randall Joshua Benefield Domestic battery, Level 6 felony

Zouzhou Zhang Rape, Level 3 felony

George Robert Payne Dealing in a narcotic drug, Level 3 felony

Dealing in a narcotic drug, Level 4 felony

Dealing in a narcotic drug, Level 4 felony

Dealing in a Schedule II controlled substance, Level 4 felony

Dealing in a Schedule II controlled substance, Level 5 felony

Possession of methamphetamine, Level 6 felony

Maintaining a common nuisance – controlled substances, Level 6 felony

Kenneth Forrest Murray III Battery resulting in bodily injury to a pregnant woman, Level 5 felony

Battery resulting in bodily injury to a person less than 14 years of age, Level 5 felony

Battery resulting in bodily injury to a person less than 14 years of age, Level 5 felony

Domestic battery, Level 6 felony

Amber Nicole Martin Attempted aggravated battery, Level 3 felony

Aiding, inducing or causing attempted aggravated battery, Level 3 felony

Megan Leeann Mellinger Theft, Level 6 felony

Possession of a narcotic drug, Level 6 felony

Unlawful possession or use of a Legend Drug, Level 6 felony

Unlawful possession or use of a Legend Drug, Level 6 felony

Robert E. Hartwell Dealing in methamphetamine, Level 2 felony

Dealing in methamphetamine, Level 2 felony

Dealing in a Schedule IV controlled substance, Level 6 felony

Maintaining a common nuisance – controlled substances, Level 6 felony

Willie Charles Steverson Aggravated battery, Level 3 felony

Resisting law enforcement, Class A misdemeanor

False informing, Class B misdemeanor

Nicholas Jerome Hurse Operating a vehicle as a habitual traffic violator, Level 6 felony

Kiyel Darron Langley Attempted murder, Level 1 felony

Attempted aggravated battery, Level 3 felony

Jason Matthew Bates Theft, Level 6 felony

Darren Desmon Stogsdill Unlawful possession of a firearm by a serious violent felon, Level 4 felony

Possession of a controlled substance, Class A  misdemeanor

Resisting law enforcement, Class A  misdemeanor

Public intoxication, Class B misdemeanor

Brandy Renee Harwell Dealing in methamphetamine, Level 2 felony

Dealing in methamphetamine, Level 2 felony

Dealing in methamphetamine, Level 2 felony

Maintaining a common nuisance – controlled substances, Level 6 felony

Eliazar Avila AKA Jose Rodriguez Domestic battery on a person less than 14 years old, Level 6 felony

Domestic battery on a person less than 14 years old, Level 6 felony

Domestic battery, Level 6 felony

Gerald McCrae Jr. Attempted aggravated battery, Level 3 felony

Attempted aggravated battery, Level 3 felony

AUGUST 17 “READERS FORUM”

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WHATS ON YOUR MIND TODAY?

“IS IT TRUE” will be posted on this coming THURDAY

Todays READERS POLL question is: Please take time and read our newest feature articles entitled “HOT JOBS” and “LOCAL SPORTS” posted in our sections.

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City County Observer has been serving our community for 15 years.

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Indiana Closes Fiscal Year on Strong Financial Footing

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State Ends Fiscal Year 2016 With A $50.6 Million Surplus; Reserves At Highest Amount Ever

Indianapolis – Lieutenant Governor Eric Holcomb joined State Auditor Suzanne Crouch today to discuss the state’s fiscal condition following the close of Fiscal Year 2016 (FY 2016). They released the state’s 2016 Closeout Report, which highlights Indiana’s accomplishments in the last year and demonstrates Indiana’s sound fiscal health.

The report shows that the state ended FY 2016 with a structural surplus of $50.6 million, despite revenues that were below forecast, primarily because of low gas prices. Reserves are at the highest amount ever in Indiana, at more than $2.24 billion. This was achieved in spite of the fact that Indiana’s total revenue growth in FY 2016 is $111.3 million below the most recent, downward revised forecast and $78.5 million below actual revenue collected in FY 2015.

“Hoosiers should be encouraged that Indiana’s financial record remains strong and their tax dollars are being used wisely,” said Governor Mike Pence. “In the last year, we provided additional funding to strengthen Indiana’s roads and bridges, prioritized education, and bolstered regional collaboration and economic development by investing in our Regional Cities Initiative. We are able to cut taxes while still funding our priorities and maintaining our highest reserve level yet because of our prudent fiscal management and commonsense policies.”

“Hoosiers deserve to know their hard-earned dollars are being spent in a responsible manner,” said Lieutenant Governor Eric Holcomb. “In Indiana, every tax dollar is spent with serious consideration and respect for the individuals who earned those dollars. By keeping prudent reserves and identifying areas of potential growth, we can continue to make Indiana a fiscal leader.”

Indiana remains fiscally strong and is one of only 12 states in the nation to maintain a AAA credit rating with all three major credit rating agencies. Standard and Poor’s reaffirmed Indiana’s AAA credit rating in April, and Fitch Ratings reaffirmed the state’s AAA credit rating in June.

“Serving as Indiana’s Chief Financial Officer, my office accounts for and reports on our state’s income and expenditures,” said State Auditor Suzanne Crouch. “By operating with a balanced budget and living within our means, Indiana has maintained strong reserves as well as our AAA credit rating. Focusing on maximizing efficiency and ensuring every dollar is spent in a transparent and accountable manner, I’m proud to report back to hard-working Hoosiers that once again, Indiana remains a model of fiscal integrity.”

The Governor signed into law the biennial budget for fiscal years 2016-2017 on May 7, 2015. The budget is honestly balanced, holds the line on spending, reduces state debt, and maintains reserves while also making historic investments in education, innovation, and reform.

Did Hillary Commit Perjury By Lying to The FBI? Or to Congress?

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Did Hillary Commit Perjury By Lying to The FBI? Or to Congress?

The FBI is expected to release notes from its July 1 interview with former Secretary of State and current Democrat presidential nominee Hillary Clinton about her use of private email servers to transmit and store top secret, classified information. According to the FBI, the interview wasn’t electronically recorded and was conducted just three days before FBI Director James Comey announced charges would not be brought against Clinton despite her “extremely careless” mishandling of classified information.

Now, House Oversight Committee Chairman Jason Chaffetz and House Judiciary Chairman Bob Goodlatte are making the case Clinton committed perjury by either lying to the FBI or lying under oath during Congressional testimony.

In a letter sent to U.S. Attorney for the District of Columbia Channing Phillips Monday, Chaffetz and Goodlatte outlined their case by highlighting numerous examples of Clinton’s own conflicting statements about her private email server.

“The evidence collected by the Federal Bureau of Investigation (FBI) during its investigation of Secretary Clinton’s use of a personal email system during her time as Secretary of State appears to directly contradict several aspects of her sworn testimony,” the letter states. “During a House Select Committee on Benghazi hearing on October 22, 2015, Secretary Clinton testified with respect to (1) whether she sent or received emails that were marked classified at the time; (2) whether her attorneys reviewed each of the emails on her personal email system; (3) whether there was one, or more servers that stored work-related emails during her time as Secretary of State; and (4) whether she provided all her work-related emails to the Department of State.”

“Although there may be other aspects of Secretary Clinton’s sworn testimony that are at odds with the FBI’s findings, her testimony in those four areas bears specific scrutiny in light of the facts and evidence FBI Director James Comey described in his public statement on July 5, 2016 and in testimony before the Committee on Oversight and Government Reform on July 7, 2016,” the letter continues.

The Ted Cruz Speech and the Attack on the Conservative Movement

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The Ted Cruz Speech and the Attack on the Conservative Movement

By Richard Moss MD

The great controversy of the Republican Convention recently over Senator Ted Cruz’s failure to endorse Donald Trump and the media pile-on that followed was a well-orchestrated ruse that served one purpose. To attack and marginalize the conservative movement and concentrate power in the hands of Reince Priebus, chairman of the Republican National Committee (RNC) and the RNC itself. It succeeded, much to the detriment of the party and the country. In effect, the GOP establishment has joined with and co-opted the Donald Trump Presidential campaign for the purpose of trampling the conservative base, which the party apparatus despises. Conservatives are the real target of the RNC, not Democrats or the left. It is not a good harbinger for the country, or Republican election prospects in November. And while it may benefit Trump temporarily, it will not last if he loses in November.

The controversy centered around the Texas Senator’s speech in which he spoke of general conservative principles, an uplifting speech that dwelled on themes that should resonate with the audience at a Republican National Convention. They included such conservative ideas as inalienable rights, liberty, freedom, and the Constitution, popular concepts amongst Republican voters. He also advised the audience to “vote your conscience,” something that should not be controversial in the least. Yet it was at that moment that the uproar against Cruz reached a crescendo.

The lead-up to the speech demonstrated just how coordinated this was. Three days before Cruz gave his speech, he met Trump, the man who invited him to speak in the first place, and told Trump he would not endorse him. Trump was okay with this. Trump, his team, and the media had a copy of Cruz’s “embargoed” speech the day before or sooner and still agreed to allow him to speak. Reince Priebus and the RNC also had a copy of the speech. So did Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan. So did his surrogates including Newt Gingrich, Mike Huckabee, and Chris Christy. There was no surprise. Everyone knew he was not going to endorse Trump but agreed to allow him to speak anyway.

But this was much ado about nothing. This is, after all, America not a banana republic. No one has to endorse anyone, even at a convention. Ronald Reagan never endorsed Gerald Ford at the 1976 convention or beyond. Reagan and his wife Nancy were angered by Ford’s rhetoric bashing Reagan as a warmonger. Cruz of course was angry at Trump for the personal attacks on him, his wife, and father. Trump accused Cruz of having an affair with five women. He questioned his US citizenship. He insulted his wife’s looks and association with Goldman Sachs. He mentioned, based on a National Enquirer story and photo, that Cruz’s father was involved with Lee Harvey Oswald in the assassination of JFK.

The orchestration of attacks by Trump surrogates and the media was full throated. Paul Manafort, the Trump Campaign Manager, along with Newt Gingrich, Chris Christy, Mike Huckabee, and others, all parroted the same contentious rhetoric. “Cruz did not keep his pledge to endorse the Republican nominee,” they said. They questioned his “integrity and loyalty.” None remembered that on March 29 2016, Trump himself in an interview claimed that he might not keep his pledge and endorse the Republican winner. “It depends,” he said. Further, they conveniently overlooked that Trump had insulted Cruz’s wife and father, and so Cruz could not in good conscience endorse him. Forgotten also was that not only did John Kasich, Jeb Bush and other prominent Republicans and presidential candidates not endorse him, they did not even show up. Nor did John McCain and Mitt Romney, the two Republican Presidential candidates in 2008 and 2012.

The reality was that Cruz gave an excellent speech. He congratulated Trump on his victory and then spoke of bedrock Republican principles. For his trouble, he was booed off the stage and trashed in the media. Of the many speakers who addressed the convention including Trump himself, none spoke of such principles. Nor was there a word anywhere by Trump or anyone else about faith, family, traditional values, and protection of the unborn.

The purpose of this attack on Cruz by the Trump Campaign and the RNC was to discredit him and the conservative movement. It was a concerted effort to split the party and cut it off from its conservative base rather than unify it. The GOP, in other words, does not want to be a conservative party. It wants to be something else. A liberal, progressive, “populist,” big government party. But not a conservative party.
Furthermore, the Republican establishment never attacks Obama, Clinton, the Democrat Party and the left the way they attack Cruz and conservatives. The reason is simple.

Republican Party leaders are threatened by the conservative base far more than by Democrats, hence hostile to it, for conservatives seek the one thing Party Elders fear more than anything else, even more than Democrats: to shrink the power of the federal government and thus halt the gravy train that Party Elders and their preferred candidates, lobbyists, and crony capitalists all feed from. Democrat victories do not concern them. They will still have a place at the table. Elections and issues come and go. What matters is continued access to power, even if Rome is burning. Tea Party Constitutional types that actively seek to diminish the federal government and devolve power back to the states, balance budgets, and pay down the debt – now that is a threat. They prefer instead to continue the charade, the borrowing, spending, and growing of government, heaping massive burdens of debt upon future generations until the laws of economics assert themselves, and the federal enterprise collapses, leaving vast social upheaval in its wake. But by then the ruling class will be long gone, and our children and grandchildren will be left to reap the whirlwind. (Paraphrased from an earlier writing)

Principles such as liberty, limited government, the Constitution and Bill of Rights, and preserving our culture and heritage mean little or nothing to the Republican Establishment beyond election year sloganeering. They are not discomfited by the lurching of the nation to the left, the size of government, the debt, the broken entitlements, the expanding welfare state, open borders, the unchecked power of the administrative state, the judicial oligarchy, Obamacare, the EPA, the assault on our culture, institutions, and values, and the breakdown of the civil society. Rather they have funded and supported it, often enabling Democrats to get more than they could have on their own.

The issue for conservatives is that the party that was supposed to be the vehicle for conservative principles, the Republican Party, has failed us over and over again and has done so now for 28 years, since the end of the second Reagan term. Not only have they not moved the ball forward on countless issues important to us, they have acquiesced and cooperated with Democrats in advancing fully their agenda.

As for our issues such as limiting the size of government, liberty, restoring Congress and the separation of powers, defending the Constitutional system, the Bill of Rights, free market capitalism, and traditional values, they have been inept and uninterested.

Even on crucial cultural issues where the left has pursued a radical social engineering agenda that has undermined our traditions and civil society, Republicans have been missing in action. The federal government has imposed such controversial policies as gay marriage, mixed-gender frontline combat units, requiring women to register for the draft, and the transgendering of bathrooms, showers, and lockers in schools throughout the land. There has been a federal assault on religious liberty, in particular the Christian faith, and an attempt to nationalize (and smear) our local police and suburbs, while undermining the rule of law.

Much of this has been achieved through the bureaucracy or the courts, without a single vote in Congress, a breakdown in our constitutional system – and no discernable pushback from pulseless Republicans.
It is time to recognize that the conservative/liberty movement does not have a political party, a vehicle with which to press its agenda. With the union of the GOP and the Trump team (which is already fraying), and the shenanigans at and after the Republican Convention, it is clear that conservatives have no place in today’s GOP.

Brief Bio: Richard Moss MD is a practicing Ear Nose and Throat Surgeon, author, and columnist who resides in Jasper IN. He recently lost his bid for the Republican nomination for Congress in Indiana’s 8th district. Find more of his essays and blog posts at exodusmd.com. Also find him on Facebook, Twitter, YouTube, and Instagram.