Portal:Government corruption

High Costs Make Open Records Seem Closed

Last month Barry Rafkind, the volunteer editor of a Somerville news blog, sent a detailed request to city officials for information about parking tickets and the city’s responses to citizen complaints.

Somerville officials told Somerville Voices they would provide the information for more than $200,000 for officials to review the documents, delete personal information, and print them out.

“I guess they expect me to go away now,’’ said Rafkind, 28, of Somerville Voices. “Those are prohibitive costs that no one could afford to pay. They’re making no effort to respond to my request with good will.’’

Rafkind’s request was unusually broad, as he asked for all of the city’s electronic data on parking tickets, appeals, and towing contracts, among other items. According to average citizens and professional reporters, public agencies have increasingly flouted the state’s public records law by delaying records or by charging large fees.^[1]

Pennsylvania Judge Exempts School District Documents and W-2 Forms

Monroe County, Pennsylvania Monroe county judge, Ronald Vican, overturned two rulings of the newly founded Office of Open Records (OOR) this month, dealing a blow to Pennsylvania transparency and open records. The cases revolve around a number of school district documents including information packets and W-2 forms.

Critics Say Recovery Website Reveals Little

The Recovery website, Recovery.gov, discloses information such as the amount of ARRA money awarded to each state, the amount of ARRA money spent so far in each state, the number of jobs created by the ARRA in each state, the contracts that are funded by ARRA money, and the government agencies receiving ARRA money. The website discloses a wealth of information but critics say, however, that it is not enough^[2].

Oklahoma Supreme Court's Rule Prevents Bulk Release of Case Information

Tulsa, OK On October 8, 2009, the Supreme Court of Oklahoma modified their procedures for the release of the records of case information, in an attempt to bar the bulk release of case information.

The Court, which has historically maintained an online list of all criminal and civil court rulings through the Oklahoma Supreme Court Network and the On Demand Court Records websites, established a new internal rule which will prevent the disclosure of "all or a significant subset of electronic case information" ^[3]. The rule comes in response to a request from a business for all the Supreme Court records, which would have cost the business between $20,000 to $40,000 for the Courts to produce it. The court claims that the rule was made through consultation with the Oklahoma Open Records Act and the policies of supreme courts in other states. They also claimed that the rule was in compliance with current open records legislation and would not prevent future compliance.

Watchdog testifies about lack of TARP transparency

Barofsky, the independent government watchdog or Special Inspector General, was put in charge of overseeing the $700 billion program. His basic message in his testimony before Congress is that though government transparency has improved slightly under the Obama Administration, TARP is almost entirely opaque.

He thinks that the government’s “basic attitude” on the transparency and accountability of the program “remains a significant frustration.”

“TARP largely remains a program in which taxpayers are not being told what most of the TARP recipients are doing with their money and will not be told the full details of how their money is being invested,” Barofsky planned to say.

Treasury Department officials are beginning to release the results of TARP loans (i.e. total investments and returns). Details about how the money was invested by recipients, however, is absent from the report. Such a move ignores the recommendations of watchdogs.

The Treasury Department soon will start to report more details about TARP recipients' use of the money, such as the recipients' total investments and the repayments of debt obligations. It will not report on how specific firms allocate funds.

“We remain puzzled as to why Treasury refuses to adopt our recommendation to report on each TARP recipient’s use of TARP funds,” Barofsky said.^[1]

Open records request leads to hefty settlement against a state senator

Madison, Wisconsin: Because of information found on staffers' personal emails, state senator Dan Kapanke R-La Crosse, was ordered on September 11 to pay a fine in the amount of $100 for misallocating funds.^[4] The settlement added $38,000 in legal fees to be paid by Kapanke to the Democratic Party of Wisconsin, and it will be paid by the Department of Administration's risk management fund. Kapanke will personally pay the $100 fine.^[5]

The settlement in Dane County Circuit Court is a result of a public records request about an economic forum Kapanke held in June, 2009 that was originally intended to be sponsored by Kapanke's office, but ended up being paid for by campaign funds. The Government Accountability Board had ruled that one of Kapanke's staffers failed to request vacation time to work at the event.^[5] June 3 and June 8 emails referring to the forum were requested by the DPW who suspected that the event was campaign related. Kapanke's office responded to the order of the WGAB, claiming the emails did not exist. Further investigation by the Legislative Technology Services Bureau did find an email listing the event in Kapanke's chief of staff's personal email account.

Pennsylvania township votes to appeal ombudsman's ruling

YORK TOWNSHIP, Pennsylvania: The Board of Commissioners of York Township in York County, Pennsylvania voted on September 8 to appeal a decision of the Pennsylvania Office of Open Records. In a possibly unprecedented move, however, the Board of Commissioners will not foot the bill for the legal appeal; rather, one commissioner will personally pay for the legal fight.^[6]

The York Township Commissioners had denied several neighborhood housing projects early in 2009. The emails request was made to the Commissioners by the developer's attorney, but it was denied. The attorney then took the request to the state office of open records, who ruled that the township was required to turn over the emails. The developer responded by filing a lawsuit suggesting that two of the Commissioners were involved in an illegal conspiracy to stop the project.

The Board of Commissioners had twice previously voted not to appeal the directive to the York County Court of Common Pleas and had urged the two commissioners to turn over the personal and business emails. In a closed session, the 3-2 decision to fight the decision of the Pennsylvania Office of Open Records stipulates that no taxpayer funds be used in the legal battle.^[6]

Clark County Board of School Trustees meet away from public

It seems school board advisory committees and appointees are holding closed meetings as well.

The board of trustees organized the Bond Oversight Committee (BOC) in the late 1990s. It is an independent body with the purpose of providing financial, bond and investment oversight of the district's capital improvement program. It is supposed to assure the public of district accountability.

In April, school district staff moved school architect selection process to the Purchasing Department, which decided to put the usual, favored contract firms in with the smaller firms for modernization or renovation work. The Nevada Policy Research Institute reported that together the five prototype firms have received more than $145 million from new construction jobs in the last 10 years, compared to $10 million earned by approximately 30 smaller modernization companies.

Committee members requested the new architect selection process return to the committee for discussion and new recommendations to the board of trustees.

There had been no public resolution to the conflict until August 12, 2009, when the school district called a "staff meeting" in a closed session with no public access.^[1]

Houston airport-linked nonprofit has ’systemic problems,’

"The nonprofit agency through which the Houston Airport System builds and runs airports in other countries has “systemic problems” and could hurt the city’s bond rating, the city’s chief financial officer said Monday — an issue that could make it more costly for the city to borrow money."

Rep. Sylvester Turner, frequent critic of power providers, is lawyer for CenterPoint

"When people in Houston have problems with electric utilities, the person to whom they often turn is state Rep. Sylvester Turner, who has frequently criticized power providers. But Turner, a lawyer, is on retainer for CenterPoint. He discloses that fact on his annual state ethics form. The Democratic House member from Houston says it's not a conflict of interest."

No jail for Mr. Ross in $4 million scheme

John Ross and his wife created a fraudulent book scheme, extorting more than $4 million from Davis School District. John Ross was sentenced November 4 to pay a fine of $500, without jail time.

He will be required to forfeit almost $800,000 from bank accounts he and his wife, Susan Ross, own. The two are required to turn over two vehicles and homes in Layton, South Weber and Mountain Green.

Florida ophthamologist indicted for fraudulent PAC and lobbying scheme

Dr. Mendelsohn helped oversee three different PAC's in Florida. Most notably, he served as the chief fundraiser for the Florida Medical Association's PAC^[1]..

Dr. Mendelsohn allegedly told contributors to the PAC's that their money would be spent on political and media campaigns. The over two million dollars of contributions that he received, however, were not all spent for this purpose. Some three hundred and fifty thousand dollars was diverted by Dr. Mendelsohn for personal use^[2].

Washington teachers fined for not working

Judge Darvas, a King County Superior Court Judge, ruled that the teachers striking in what a September 3 hearing declared to be an illegal strike must pay $200 per day not in their classrooms. The teachers' union, the Kent Education Association, is fined $1,500 per day. All of these fines began September 14 and will be retroactive to September 8.

The district's 1,700 teachers were on strike between August 28 and September 14. The district's 26,000 students at its 40 schools didn't begin school on August 31 as planned.

The Evergreen Freedom Foundation was the first to report the judge’s order in detail using the social networking tool, Twitter, from inside the courtroom.^[3]

Former Pennsylvania judges face more indictments over scandal

The plea agreements that the judges were discussing collapsed, but they would have sent them to jail for 87 months on two counts. Now they are charged with racketeering, fraud, money laundering, extortion, bribery and tax violations for allegedly accepting $2.8 million from the owner and builder of two for-profit juvenile detention centers that made millions from county contracts with the judges’ help, read a U.S. Attorney’s Office press release.

The U.S. Attorney's Office did not make actual indictment public after it was handed down the evening of September 9, 2009 in Harrisburg. A spokeswoman for the U.S. Attorney’s Office, Heidi Havens, said the indictment will likely be posted September 10.^[3]

Los Angeles Judge and two others indicted

Superior Court Judge Harvey Silberman, 52, and two political consultants, Evelyn Jerome Alexander and Alan Randall Steinberg, have been indicted on charges of offering a bribe to Deputy District Attorney Serena Murillo. They were allegedly trying to drop out of the municipal election. The grand jury transcript detailing the alleged scheme has not been released.

The charges were solicitation of money or valuable consideration to induce a person not to become a candidate for public office and Silberman, Alexander and Steinberg each face up to three years in state prison if convicted.

Alexander and Steinberg are partners of SJA Strategies, a public affairs firm, and have pleaded not guilty.

Silberman, who on paid leave pending the outcome of the case, is awaiting arraignment, which has been postponed until a judge from another county is assigned to the case.^[3]

Riddle indicted in Detroit

Riddle had served as City Councilwoman Monica Conyers' assistant when the corrupt contract deal was made with Synagro Technologies, Inc between March 2006 and December 2007. He was charged with a seven-count indictment including conspiracy, extortion, bribery, mail fraud, and making false statements to the FBI. According to the indictment, Riddle conspired with Conyers in order to extort money from individuals having business before the Council and the pension board.

The indictment says he allegedly aided and abetted the councilwoman in receiving bribes in favor of the Synagro waste management contract with the City of Detroit. According to the indictment, Riddle and Conyers allegedly extorted $20,000 from the owner of a technology company seeking a multi-million dollar investment from the General Retirement System, extorted $20,000 from a Detroit restaurant owner who had business before the City Council, and extorted $25,000 from a company operating strip clubs seeking a change in licenses from the City Council.^[3]

Former Perry County, Kentucky officials plead not guilty to buying votes

Democrats Circuit Clerk Chester Jones and former Judge-Executive Sherman Neace pleaded not guilty Wednesday.

Last November, Neace, 68, ran for magistrate and Jones, 65, ran for a seat on the county school board. The former officials allegedly directed $7,500, which the state Democratic Party gave Perry County Democrats to improve voter turnout last November, to buy votes for themselves.

The indictment charged Jones with signing 75 $100 checks and leaving the payee information blank. Allegedly, the two then split them and handed out some to buy votes and gave some to others to buy votes for them.

Former circuit clerk and state representative Jones chairs the Perry County Democratic Executive Committee. Former Perry County judge-executive Neace served three terms before losing re-election in 1998.

Ohio employee pleads not guilty for tampering with kids' grades

Wyandot County prosecutors are charging Gilliland on 34 counts for allegedly tampering with her children's grades, all third-degree felonies, as her indictment categorized.

The indictment shows the alleged incidents occurred on or about March 26, 2008, June 2, 2008, June 3, 2008, Oct. 28, 2008, Nov. 10, 2008, and Feb. 13, 2009, the Advertiser-Tribune reported.^[4]

Former NYPD commissioner Kerik indicted

Kerik allegedly lied to the Bush administration about circumstances with contractors he worked with for a renovation of his home and prosecutors accuse him of receiving and concealing about $255,000 in renovations from contractors interested in doing business with the city of New York.

Kerik's lawyer is confident that his client will be vindicated from the charges.

Pineville Mayor resigns

"Pineville Mayor Bob Madon resigned after a city council meeting in the aftermath of being indicted on federal vote buying charges during the 2006 mayoral election.

Councilwoman Diana Anderson will act as the interim mayor.

Ecorse, Michigan city officials violated tax law for years

Governor Jennifer Granholm outlined several financial irregularities the state found and, in a five-page letter, announced that the state would appoint an emergency financial manager to run the city.

The review found that the city collected millions of taxpayer dollars for other entities, but it did not turn the money over. The review found that the city hasn’t submitted to the state a financial audit on time since 2003. It also found that Ecorse operates with a deficit, refusing to outline plans to correct the problem.

City officials responsible for the financial issues could face criminal charges.

“I have determined that a financial emergency exists within the city of Ecorse because no satisfactory plan exists to resolve a serious financial problem,” Granholm wrote in her letter to city officials.

Granholm's letter stated that city officials have gotten in a pattern of using money earmarked for specific purposes to pay for general city operations. This includes employee payroll.

Kirkland city leader admits personal emailing on city account

After some of his e-mails were made public Sternoff apologized at a city council meeting.

"The use of my city e-mail as it was used in this case was inappropriate. I apologize for that and the embarrassment that my actions have caused myself and the ones I love," he said.

Evergreen Freedom Foundation uncovered thousands of pages of Sternoff's e-mail, paid for by the city.

Evergreen Freedom Foundation's Scott St. Clair made a Freedom of Information Act request for city council e-mails, which are public record.

Later, St. Clair said Sternoff called him to say some of his e-mails might be embarrassing.

"I had no clue what I would find until it actually showed up," said St. Clair. "The conversation goes on to talk about the Kirkland citizen, her work and her sexual preference."

These e-mails were sent while the city council was in session and, according to the time stamps, at times when city council meetings and study sessions were being held.

"The time spent creating them was time not spent conducting the public's business or paying attention," St. Clair said. "My interest isn't in him, per se. It's in watch-dogging for the public to find out what's happening on their time with their public resources."

After a 4-to-3 vote, the Kirkland City Council voted to hire a counsel to investigate the e-mails.^[1]

Undercover reporting reveals corruption in ACORN

The two journalists, Hannah Giles (20) and James O'Keefe (25), dressed up as a prostitute and a pimp, respectively, before entering the Baltimore ACORN office. They claimed to hope to open a prostitution ring in a house that ACORN would help them mortgage. Two women advised them on how to evade paying taxes, how to disguise the prostitution business, how to effectively hide underage El Salvadorian girls in the house and business over the course of the interview.

The ACORN representatives suggested that the prostitution ring be coded a "performing arts" business and that they could write off about $7,000 of the estimated $8,000-$9,000 monthly income for taxes.^[2]

Rep. Charles Boustany (R-La) says the videos show multiple incidents of tax fraud and called for a hearing to investigate the group's tax filing assistance programs.

Rep. Boustany said he is seeking a hearing of the Oversight Subcommittee of the House Ways and Means Committee in order to investigate ACORN’s activities.^[3]

The Washington Examiner reported that they “found that ACORN has received at least $53 million in federal money since 1994.”^[4]

Did U.S. Sen. Kay Bailey Hutchison cross an ethical line by supporting a rail line that is a payday for her husband?

"In 2007, U.S. Sen. Kay Bailey Hutchison boasted how she helped secure $700 million in federal funding to expand a mass transit line in Dallas. But here’s what she forgot to tell you: The law firm of her husband, Ray Hutchison, worked on the bond financing for the same project, earning hundreds of thousands of dollars in hourly fees."

Houston City Council ethics forms published via an interactive map

"The Houston mayor and City Council members' 2009 personal financial disclosures are available at Texas Watchdog via an interactive map. Learn more about how your elected officials make their money by checking out these disclosures."

Tennessee bill backed by those with insurance interests will aid insurance companies

A bill in the Tennessee General Assembly would benefit some of the largest insurance companies in the country with substantial tax credits. Some of the bill's sponsoring legislators are somehow connected to some of these insurance companies.

The bi-partisan Tennessee Small Business Investment Company Credit Act (House Bill 2083/Senate Bill 1203) would create a $100 million fund for small business investment in Tennessee and states that a private company would manage the money. This legislation creates the Tennessee Small Business Investment Company Credit or TSBIC wherein insurance companies can pay a $7500 fee and invest $500,000 or more to qualify for the credit.

The bill would make it so the insurance companies that participate in the fund would earn a tax credit that is 80 percent of their investment in the fund against their premium tax. The decreases in state revenue thanks to the tax credit program are estimated at over $5 million each year for a minimum of five years starting Fiscal Year 2013-2014.

A company most effected by this bill would be Advantage Capital Partners, a St. Louis, Missouri company with over $1 billion in small business and private equity lending ability, which has had success lobbying for similar bills in other states.

The bill sponsors include Senators Bill Ketron (R-Murfreesboro), Eric Stewart (D-Belvidere) and the lead House sponsor for the bill, Rep. Charles Sargent (R-Franklin), is a State Farm Insurance agent. State Farm is on the Advantage Capital Partners website as having invested in "one or more of the Advantage Capital family of private equity and venture capital funds.".

"State Farm 'doesn't know anything about this bill,' insofar as he has been able to determine thus far, but that he was still trying to validate that understanding," Venture Nashville Connections reported Sargent telling the subcommittee.^[1]

Makeup of social services audit panel criticized

The panel concluded that top Mecklenburg County managers took proper steps to address accounting failures, causing the makeup of the panel to come under scrutiny.

The two commissioners/panel members, County Manager Harry Jones and county general manager, John McGillicuddy, helped to write the report presented to the county board of commissioners this week.

Jones and McGillicuddy are the administrators on the committee and Commissioner Dan Murrey, commissioner Bill James and certified public accountant Ward Simmons join them on the committee.

“It seems odd to me that our county manager and an assistant county manager who reports to our county manager would be a part of a committee to make a determination about whether management responded appropriately,” Commissioner Harold Cogdell said. “It undermines to some extent … the appearance of what this committee is charged with having done.”

The members will look into whether they should remove administrators from the panel in the future, according to Murrey. Some commissioners have expressed concern that the arrangement undermines public confidence in the review as well as hinders the committee's ability zero in on the person to blame.

Supporters of allowing managers on the panel do not believe it compromises investigations. They think it allows administrators on the committee to give commissioners experienced knowledge about the daily workings of county government.

The Audit Review Committee was established in 1998 by county officials to oversee financial audits and make recommendations to the commissioners. In North Carolina, counties arrange the committee so that it must include two commissioners, two county administrators and a community member.

Hamburg officials say clerk and treasurer are not accomplishing basics

The Board of Trustees said Clerk Matt Skiba and Treasurer Pat Evon are not performing their duties and so the board discussed emergency measures. The board said Evon has failed to disburse library, fire bond revenue, and special assessment funds into appropriate accounts. Several duties have been taken off Skiba’s hands, including handling the senior center and parks and recreation operations and last week he submitted a letter of resignation from his duty as FOIA coordinator, typically one of the responsibilities of township clerks.^[1]

Supervisor Pat Hohl said about seven “significant” financial problems related to this neglect in the township may have a negative influence on the township’s audit and bond rating.

Evon works part time as treasurer. He said his office needed the board to approve a salary for his deputy, Cindy Pine, in order for it to run more efficiently. The board had questioned Pine's accounting and other credentials and voted against a $27,000 salary for her. Evon voted against this figure too, saying it was not sufficient. Pine recently resigned.

Deputy Clerk Michael Zeglevski still works without pay.

Skiba did not attend Tuesday’s meeting, having Zeglevski, who cannot vote as because he is not an elected official, sit in for him. Clerk Skiba was also absent at a special board meeting held last week.

Skiba has not produced minutes from the last three board meetings, according to Trustee Michael Dolan, putting the township in legal jeopardy.^[1]

Auditor faults Richmond schools’ human resources, payroll departments

Johns review of payroll information covered the period from July 1, 2006, to May 31, 2009 and found a number of problems, including overpayments to 19 employees, totaling $50,356.96, employees taking off time but not recording it and sloppy bookkeeping.

The biggest overpayment instance was to an employee on education leave who received $10,050. This employee has agreed to repay the extra salary in $50 increments over 201 periods, but the other overpaid employees are keeping their overpayments.

Richmond school district supervisor overpaid employee, falsified evidence

A letter from Umesh Dalal to Brandon does not include the name of the official but writes that the supervisor "either overpaid or failed to detect overpayment to the employee" and "created documentation after the fact to justify overpayment to the employee."

According to the letter, Brandon's payroll documentation was "very limited and incomplete," failing to coincide with time sheets and work schedules. Dalal said the overpayment for the year reached about $2,000.

Chicago Alderman helps expose bribery

Carothers helped the FBI as apart of an agreement between the two parties. In exchange for Carothers help in exposing local corruption, the FBI has agreed to reduce past corruption charges against him. In 2006, Carothers was charged for accepting a $40,000 bribe from a local developer who was pursuing city approval for a residential development.^[1]

In addition, Carothers later admitted in 2007 to having had received around $45,000 from Aiyash in exchange for his support of a proposal that granted Aiyash permission to develop in a certain area.^[2]

No jail for Mr. Ross in $4 million scheme

John Ross and his wife created a fraudulent book scheme, extorting more than $4 million from Davis School District. John Ross was sentenced November 4 to pay a fine of $500, without jail time.

He will be required to forfeit almost $800,000 from bank accounts he and his wife, Susan Ross, own. The two are required to turn over two vehicles and homes in Layton, South Weber and Mountain Green.

Former Butler County Commissioner indicted for corruption

The indictment revolves heavily around Michael Fox's alleged involvement with a close friend and the owner of NORMAP Telecommunications, Robert Schuler. As county commissioner, Fox is said to have used his political influence in order to secure a contract for NORMAP Telecommunications that was worth $1.8 million dollars. ^[3] The contract was for installing fiber optics across Butler County. After the contract was secured for NORMAP, the company was bought by Schuler. As owner of NORMAP, Schuler is alleged to have transferred $360,000 to Fox in 2002 in order to help him pay off his death. Schuler is also said to have transferred $100,000 to a consulting company that was owned by Fox. ^[4]

Prosecutor who oversaw Senator Steven's corruption case resigns

Last year, a jury found Alaska Senator Ted Stevens guilty for corruption. He was found to have failed to publicly disclose the over $250,000 dollars that he received from an Alaskan oil company C.E.O, Bill Allen, between 1999-2006. Bill Allen is currently being tried for bribing several Alaska politicians.^[5]

In April, however, Attorney General Eric Holder dismissed Steven's case. The case was dismissed on grounds that the trial was unfair. The prosecution collected notes from a key witness before the testimony of the witness. The testimony ended up conflicting with the notes. This information would have helped the case of the defense. The prosecution, however, never handed over the notes to the defense.^[6]

U.S. Representative from Alaska referenced in corruption investigation

The documents surfaced in the ongoing corruption case of Bill Allen. Allen was a CEO of the now-defunct oil service company V.E.C.O. While a C.E.O, Allen bribed state legislators and officials with the aim of garnering political support for his company in the legislature. The legislators were responsible passing or rejecting legislation that dealt with taxes for oil companies^[7].

Some of the politicians who have been tried for their involvement with Allen include former state House Speaker Pete Kott and former Representative Vic Kohring. Also, Senator Ted Stevens was tried and found guilty for receiving gifts from Allen without reporting the gifts. Steven's case, however, was ultimately dimissed because the prosecution withheld evidence that was favorable to the defense^[8].

Dallas City Council divided over ethics reform

The proposal for ethics reform comes in response to recent political corruption in the city council. A few weeks ago, Don Hill, a former city council member, was convicted for extortion and bribery. While serving on the council, Hill extorted real-estate developers. He threatened them that he would not grant approval of their zoning permits unless he received money from them. On many occasions, Hill successfully employed this extortion scheme to secure large sums of money from real estate developers^[9] .

The proposed ethics reform is designed to prevent other city council members from engaging in the sort of political corruption for which Don Hill was convicted. Specifically, the proposed ethics reform would limit a city council's member control over permit granting. As it currently stands, a single city council member has great control over any permit granting in his district^[10] .

New indictment filed against former Massachusetts speaker of the house

The new indictment claims that DiMasi extorted his friends who owned a property management company, Genesis Management LLC. According to the indictment, the owners of Genesis founded the company in 2006 with the expectation that DiMasi would help their company secure government contracts. As a long-serving and well-connected state politican, DiMasi could use his political influence in order to help push through legislation that would secure government contracts. In exchange for helping the company, DiMasi was to receive a share of the company's profits^[11].

The indictment cites e-mails as evidence that DiMasi was involved in extortion. In e-mails concerning Genesis start-up in 2006, the company owners described how profits would be divided and how the owners, as well as DiMasi, would benefit from the company^[12].

The indictment, moreover, alleges that DiMasi ordered an unnamed official to help secure government contracts for Genesis^[13].

As a specific example of DiMasi helping Genesis secure contracts, the indictment discusses the details of a contract that put Genesis in charge of managing the Transportation Building, which is a government-owned building in Boston, MA. Shortly after Genesis was founded in 2006, it won the contract over another property management company that had been managing the Transportation Building since 1992. Genesis received millions of dollars from this contract^[14].

Former Dallas councilman convicted in extortion case

Don Hill, his associates, and his wife were convicted by a jury who had strong evidence against them. In the case, two real-estate developers testified against Hill. Both of the real-estate developers said they pursued city zoning approval, so that they could develop low-end housing in Hill's district. They said Hill indicated to them that he would not approve of their zoning permits unless he received payment ^[15].

In addition to the testimonies, the prosecution presented audio and video evidence that was collected by the FBI. In one conversation between Hill and his associate, his associate told Hill to delay a vote over zoning permits, allowing the associate more time to shake-down a developer. In another instance, photos show Hill receiving $10,000 from an associate who had, shortly before, received $20,000 from a real-estate developer ^[16].

Besides extorting money, Hill also secured questionable consulting contracts. His wife, for example, had a $14,000 per month consulting contract for her involvement in community development projects^[17].

New Jersey councilman pleads guilty to extortion

Kenny admitted to meeting the government informant on two separate occasions; March 23rd and 30th of 2009. At the meetings, Kenny was deceived into believing that the government informant was a real estate developer who had an interest in promoting a condominium project. The government informant offered Kenny two payments of $2,500 on the condition that Kenny would use his political clout to work on behalf of approvals for his buildings. Kenny accepted both payments. He then donated the money to his campaign fund ^[18].

In April, Kenny was appointed to fill a vacancy on the city council. He was subsequently elected to the position in May. He was not charged until October. ^[19].

Three Florida government officials arrested for extortion

The agents slipped more than $40,000 in cash to the politicians while posing as corrupt businessmen. The FBI released hidden tape recorders entangling Commissioner Eggelletion, School Board member Gallagher and former Commissioner Salesman, but more arrests are expected.

Agents went public and questioned many people involved in Broward County's lucrative school building program, including lobbyists, school district employees and construction contractors.

"We are not done," said acting U.S. Attorney Jeffrey Sloman.

No jail for Mr. Ross in $4 million scheme

John Ross and his wife created a fraudulent book scheme, extorting more than $4 million from Davis School District. John Ross was sentenced November 4 to pay a fine of $500, without jail time.

He will be required to forfeit almost $800,000 from bank accounts he and his wife, Susan Ross, own. The two are required to turn over two vehicles and homes in Layton, South Weber and Mountain Green.

Former Butler County Commissioner indicted for corruption

The indictment revolves heavily around Michael Fox's alleged involvement with a close friend and the owner of NORMAP Telecommunications, Robert Schuler. As county commissioner, Fox is said to have used his political influence in order to secure a contract for NORMAP Telecommunications that was worth $1.8 million dollars. ^[1] The contract was for installing fiber optics across Butler County. After the contract was secured for NORMAP, the company was bought by Schuler. As owner of NORMAP, Schuler is alleged to have transferred $360,000 to Fox in 2002 in order to help him pay off his death. Schuler is also said to have transferred $100,000 to a consulting company that was owned by Fox. ^[2]

Prosecutor who oversaw Senator Steven's corruption case resigns

Last year, a jury found Alaska Senator Ted Stevens guilty for corruption. He was found to have failed to publicly disclose the over $250,000 dollars that he received from an Alaskan oil company C.E.O, Bill Allen, between 1999-2006. Bill Allen is currently being tried for bribing several Alaska politicians.^[3]

In April, however, Attorney General Eric Holder dismissed Steven's case. The case was dismissed on grounds that the trial was unfair. The prosecution collected notes from a key witness before the testimony of the witness. The testimony ended up conflicting with the notes. This information would have helped the case of the defense. The prosecution, however, never handed over the notes to the defense.^[4]

U.S. Representative from Alaska referenced in corruption investigation

The documents surfaced in the ongoing corruption case of Bill Allen. Allen was a CEO of the now-defunct oil service company V.E.C.O. While a C.E.O, Allen bribed state legislators and officials with the aim of garnering political support for his company in the legislature. The legislators were responsible passing or rejecting legislation that dealt with taxes for oil companies^[5].

Some of the politicians who have been tried for their involvement with Allen include former state House Speaker Pete Kott and former Representative Vic Kohring. Also, Senator Ted Stevens was tried and found guilty for receiving gifts from Allen without reporting the gifts. Steven's case, however, was ultimately dimissed because the prosecution withheld evidence that was favorable to the defense^[6].

County assessor charged for tax evasion and mail fraud

As county assessor of Christian County, Sandra Bryant-Littles had the responsibility of ensuring that evaluations of property were fair. To have a fair evaluation of property, a property owner must fully disclose his or her pieces of property. But Sandra Bryant-Littles, however, is said to have purposely avoided disclosing some of her properties. She is said to have,for example, failed to disclose six of her vehicles she owns. These vehicles, thus, went untaxed. Now Sandra Bryant-Littles faces charged for her supposed tax evasion.^[7]

In addition to tax evasion, Sandra Bryant-Littles is being charged for mail fraud. She is said to have received a bill from the county collector that underrepresented the expenses she had to pay. Instead of informing the tax collector of the mistake, Bryant-Littles is said to have intentionally mailed the underrepresented amount back. The charge of mail fraud against Bryant-littles rests on this.^[8]

Cuyahoga County Reform Missing Restrictions on Campaign Donations

Issue 6 aims to remedy the problem of cronyism in the Cuyahoga County Comissioner's office. One of the current County Commissioners, Jimmy Dimora, has been investigated by the FBI for possibly helping individuals obtain county positions in exchange for campaign donations or kickbacks. Issue 6, supporters say, would counter such an abuse of power by requiring the county executive to be overseen by an eleven-member council. The county executive would need the council's approval before he or she could make any hiring decisions^[9]..

Undercover reporting reveals corruption in ACORN

The two journalists, Hannah Giles (20) and James O'Keefe (25), dressed up as a prostitute and a pimp, respectively, before entering the Baltimore ACORN office. They claimed to hope to open a prostitution ring in a house that ACORN would help them mortgage. Two women advised them on how to evade paying taxes, how to disguise the prostitution business, how to effectively hide underage El Salvadorian girls in the house and business over the course of the interview.

The ACORN representatives suggested that the prostitution ring be coded a "performing arts" business and that they could write off about $7,000 of the estimated $8,000-$9,000 monthly income for taxes.^[10]

Rep. Charles Boustany (R-La) says the videos show multiple incidents of tax fraud and called for a hearing to investigate the group's tax filing assistance programs.

Rep. Boustany said he is seeking a hearing of the Oversight Subcommittee of the House Ways and Means Committee in order to investigate ACORN’s activities.^[11]

The Washington Examiner reported that they “found that ACORN has received at least $53 million in federal money since 1994.”^[12]

Monroe County schools' superintendent's misconduct trial begins

Acevedo has been charged with three felony counts of misconduct. He allegedly covered up theft by his wife, former Adult Education Coordinator Monique Acevedo. Mrs. Acevedo is charged with four felonies alleging nearly $200,000 in theft of district funds and has a scheduled October trial date.

The trial is before Judge Mark Jones at the Freeman Justice Center in Key West, Florida. The judge said the media coverage of this case would be significant, including a potential radio simulcast and television coverage.

One of the charges against Acevedo results from a meeting with district finance director Kathy Reitzel in October 2007. In this meeting, Reitzel reportedly presented Superintendent Acevedo with a packet of information that detailed his wife's improper spending of the district's funds. Mrs. Acevedo allegedly purchased sunglasses, plane tickets and shoes with a district credit card.

Allegedly, Mr. Acevedo reimbursed the district with his personal checking account for the plane tickets.

Reitzel said that last February she delivered to Acevedo more evidence of roughly $30,000 in illegal credit card purchases made by his wife.

Prosecutors say Acevedo signed a letter in 2008 stating that he knew of no fraud happening in the district. Reitzel signed the document only after stating an addendum that her finance staff was looking over some of Mrs. Acevedo's charges.

Cedar Rapids, Iowa school employee charged with embezzlement

In Iowa, Cedar Rapids police say the 42-year-old May has been charged with first degree theft following an investigation.

May works in business services and is responsible for cash receipts. The district released that the police department made them aware of the possible embezzlement on August 18th. Subsequently, the district began an internal investigation. May is now on administrative leave pending her termination.

The district contacted the State Auditor's Office, asking them to conduct an independent audit, which could take several months. The missing funds from the embezzlement are covered by insurance.

Wisconsin school superintendent in battle over early retirement compensation

Klaus denied having direct involvement in the creation of a document that would allow him to receive a $267,209 retirement stipend before retiring. This denial could be pivotal in determining how the federal lawsuit he filed in July proceeds.

The school district can discredit Klaus' $1.19 million lawsuit if it can prove he directed someone to create the document. The school board placed a 10-month suspension on Klaus in his position, for the most part because of they believed he directed someone to write the letter in question.

On the other side, if Klaus' lawyers can prove there was distance between Klaus and the creation and backdating the document, it could help the federal case. The document is now known as the "Olson memo." It is named for former school board President Carol Olson because he admitted he signed and backdated it.

"[Klaus'] claims regarding the Olson memo are clearly a key in this lawsuit and a matter of great interest to us in our defense," said Kirk Strang, a Madison lawyer representing the school district. "We have a strong case, and we plan on presenting it."

Scott Winston is Kalus' attorney who filed the lawsuit on his behalf.

Klaus faced suspension by the Eau Claire school board from Aug. 11, 2008, through June 15 without pay for his alleged attempt to access his retirement stipend before he retired without official board approval.

The board launched an investigation, determining that in June 2007 Klaus had Olson sign and backdate the letter that would allow Klaus to begin receiving his monthly stipend payments starting August 2007.^[13]

Maryland state pension gap grows to $17.5 billion

Maryland will likely have to add $189 million to its teacher and employee pension funds by next year. Lawmakers learned this on November 4 as officials with the State Retirement Agency explained results from fiscal 2009.

The $17.5 billion needed to close the gap is in addition to the approximately $28.6 billion that the pension office already has set aside.

This knowledge was announced at a meeting of the General Assembly’s Oversight Committee on Pensions. It will likely have a big effect on the state’s budgeting process next year.

Although Maryland already has a deficit of more than $2 billion, officials will likely need to increase contribution to the pension funds from $1.2 billion to $1.4 billion.

California government pays more interest than companies

California collected about $80 billion in taxes in the fiscal year (ended June 30), compared with $3.6 billion in revenue for Houston-based Diamond. California has never defaulted on its debt. The state paid 1.5 percentage point more in interest, about $785 million in additional cost for taxpayers over the 30-year life of $1.75 billion in Build America Bonds.

California and many other states are not requiring municipalities to file timely financial information. The disclosure that state and local governments provide to investors is in the “dark ages,” said Gary Pollack, of Deutsche Bank AG’s Private Wealth Management unit in New York.

“The municipal bond market is the last bastion of hidden information,” said Timothy Koch, chairman of the finance department at the Moore School of Business at the University of South Carolina in Columbia, South Carolina.

U.S. taxpayers are paying as much as $6 billion a year because public officials’ financing is in the dark in the $2.8 trillion tax-exempt bond market, according to data and interviews from more than a dozen states. However, the recession is forcing municipal governments to cut spending or raise taxes.^[1]

Cincinnati officials get taxpayer-bought free stuff

Cincinnati Mayor Mark Mallory has accepted $7,800 in free tickets to the Macy's Music Festival at Paul Brown Stadium over the past four years.

Hamilton County commissioners gave themselves first access on buying Reds Opening Day tickets, at face value, to the county-owned suite at Great American Ball Park. Sometimes the commissioners paid for the tickets with campaign funds and used them to reward campaign volunteers.

Many more county employees have free use of the luxury suites to entertain business leaders at the baseball games, to reward foster parents and to provide incentives to recycle. The suites are a perk from the lease agreements agreed upon by the Reds and the Bengals, which also include free food.

In 2008, county taxpayers paid for more than $20,000 worth of concessions for guests in the suites, such as Montgomery Inn barbeque, Donato's Pizza and Graeter's ice cream.

Hamilton County Auditor Dusty Rhodes has said the county should give up its ticket perks, calling it "a witches' brew of problems," yet the commissioners disagree.

According to the Ohio Ethics Commission, whose job it is to police the state's conflict-of-interest laws, free tickets to sporting events could, in some cases, "affect the objectivity and independence of judgment" of public officials in dealing with the teams.

County commissioners in charge of the suites say they're just trying to make use of the county-owned facilities: the two stadiums that were built using money from a voter-approved, half-cent sales tax from 1996.

"They're very common. I've seen them in just about every stadium built in the last 10 years, or 15 years," said Paul Anderson, associate director of the National Sports Law Institute at Marquette University and an expert in stadium financing. "Typically those are used for charity, or when the city is trying to sell itself. It's not supposed to be for the personal use of county board members."

The tickets weren't intended to be free, as the lease requires the county to pay for all tickets. However, there is no record of the county paying for any tickets, according to the county auditor's office.

The Reds' agreement says that the stadium "provide a private suite for Hamilton County's private use."^[1]

Minnesota stimulus earmarks include iPods

Nearly 5,000 households in Minneapolis public housing high rises would benefit from this proposal. The provision is working to fill the gap created because these people are unable to receive the city's own public WiFi service without devices.

The proposal's summary states that residents of these public housing neighborhoods who graduate from the first level of the city's Broadband University "will be eligible to receive their choice of wifi-enabled devices--laptops or handheld iPod Touches," effecting an estimated 6,300.

The American Recovery and Reinvestment Plan provides $7.2 billion to expand access to and adoption of broadband services nationwide and "help bridge the technological divide and create jobs building Internet infrastructure."

In the first round of spending this money, $4 billion will be dispersed in the form of loans and grants. It remains unclear how many projects will be funded per state.

The proposals' executive summaries are online.^[1]

Public option fails in the Senate

America's Healthy Futures Act of 2009 is sponsored by Senate Finance Committee Chair Max Baucus, a Democrat from Montana. The Senate Finance Committee began marking up the bill and creating amendments to add to the bill on September 22, 2009.

Rockefeller’s "public option" amendment, the Consumer Choice Health Plan, would have created a government-managed health insurance plan. Rockefeller chooses not to call it a public plan, saying it supports the free-market.

“I don’t call it the public option,” stated Rockefeller. “I don’t see any reason why we don’t do this. I cannot understand why we wouldn’t do this. I think Adam Smith would have cooked up this amendment if I hadn’t.”

“Yes, it is started by the federal government and it has an administrator, but the administrator cannot have anything to do with what goes on – cannot set any rates, premiums, adjust up or adjust down," said Rockefeller. "And it’s optional; optional to the extent that most people say that less than 5 percent of people will avail themselves of this plan”

Rockefeller hoped the Consumer Choice Health Plan would pressure the health insurance industry enough to lower premiums.

“This one little consumer choice plan will cause people in the health insurance industry to reconsider the premiums they’re doing because there is the competition,” said Rockefeller. “Because of consolidation there is not now genuine competition. They’re getting away with banditry. I feel so strongly about it because it makes so much sense.”

Accountability in Colorado after wasteful spending

Jones paid $940 to the state for 2.5 years of personal calls he made on his state cellphone. The media looked into and asked about his expenses and exposed the extraneous spending.

The payback was almost half of the total $2,227 billed to Jones' cellphone since he started the job. Later, reports about expensive meals and new office furniture were billed to Jones' expense account at a time of severe state budget cuts.

The Department of Education requires its employees to reimburse the state monthly for anything more than the occasional, short personal call.

"He knew about the policy, and he just hadn't done it," said department spokesman Mark Stevens. "It was an oversight."

Denver delays HUD grants

Since the award, an additional 4,000 Denver homes have been foreclosed. The city says it is working on contracts with nonprofit groups for the program's execution and hopes to start spending money on homes in October or in November. Notice of the grants first hit the Federal Register on October 6, 2008, but officials say Denver did not get a formal contract from the Housing and Urban Development department (HUD) until March 2008.

Aurora won $4.5 million from the first round of the same program and so far has spent $2.6 million buying and repairing 21 homes.

The $6 billion NSP was intended for the American communities hit hardest by the recession. Experts say there are similar problems in other cities are caused by a dense bureaucracy.

West Virginia Aviation Division has revenue shortfall

The Legislative Auditor’s Office released a report on September 16, 2009 recommending that the Aviation Division’s revenue shortfall be appropriated by the Legislature instead of through inter-agency fees on automobile fleet rentals.

The Aviation Division is managed by the Department of Administration (DOA) and has this revenue shortfall despite charging agencies for using the state’s five aircrafts. The DOA's Fleet Management Division charges a Fleet Management Administrative Fee of $92 a month to agencies for lease of DOA vehicles in addition to the monthly leasing fee each state agency pays, helping to make up the $2 million shortfall.

Many of the fee-paying agencies either rarely use or never use state aircraft. On the other side, many of the agencies, including Division of Highways, the West Virginia State Police, the Division of Natural Resources, the Division of Forestry, the Department of Agriculture, the Higher Education Policy Commission and the higher education governing boards and their institutions, that use the state’s aircraft are exempt from paying fee.

For example, the Department of Health and Human Resources paid $47,180 in the Fleet Management Administrative Fee in 2008, but logged only 4.1 hours on state aircraft.

The report states:

“During FY 2007-2009 five agencies (Alcohol Beverage Control Administration, Department of Labor, the Public Service Commission, Division of Motor Vehicles, and Miners Health Safety & Training and Administration) accounted for $1,018,595 in payment of the Fleet Management Administrative Fee. During that time period none of these agencies used the aircraft in the Aviation Division, although they paid 21.87 percent of the total Fleet Management Fees collected.”

“The fee is inequitable, exceeds the Legislature’s delegation of authority to the DOA, and causes funding to be redistributed away from activities supporting agency mandates toward the funding of the aircraft fleet. Legislative Services legal counsel finds this arrangement inappropriate, stating that the delegation of authority to charge fees granted by West Virginia Code §5A-3-48&52 is expressly tied to vehicle usage and cannot be used for other purposes.”^[1]

New Mexico loses $27 million in Marc Correra deal

Marc Correra was a third-party marketer in a 2006 investment deal with a Chicago-based firm to which the state lost $90 million after it went sour.

The State Investment Council (SIC) is writing off $27 million of another $55 million investment made in 2006 with a different firm, SIC spokesman Charles Wollman. Correra shared in $576,000 in fees paid out in the latest deal, with Northstar SIC Holding LLC.

“This is a $27 million write down,” Wollman said.

Correra is under scrutiny for the $22 million fees that he shared in more than six years at the time he helped arrange several investment deals. These deals included the SIC and the New Mexico Educational Retirement Board.

Marc Correra is the son of Anthony Correra, a friend of the governor. Marc Correra's father was involved in hiring State Investment Officer Gary Bland. Bland is the top staff member at the State Investment Council, published reports showed.

The SIC and the New Mexico Educational Retirement Board write off $90 million they had invested with Chicago-based Vanderbilt Financial Trust. A lawsuit Correra is involved in encompasses his shared $2 million in fees for helping to arrange that deal.^[1]

No one accused Correra of wrongdoing and in the past, his attorneys said he worked hard to earn the fees. However, in recent months outrage has ensued from state lawmakers and others over the $22 million in fees Correra has shared at the same time that some investments have failed, while costing the state money.

In the latest deal involving Correra, the SIC invested $55 million of a $90 million commitment in 2006 to Northstar SIC Holdings LLC. Northstar invested that money in two other projects, one a “high-risk, high-return” real estate development in Connecticut called Antares Investment Partners. This one later soured, Wollman explained.

A recent SIC report shows the market value of the agency’s SIC original $55 million investment is $12 million. Wollman said the SIC recovered $16 million of its original investment.

In order to get a greater return, the SIC invests money from the state’s four permanent funds. Leasing fees, taxes collected on the extraction of minerals in New Mexico and money from the national tobacco settlement, contribute to the permanent funds. The permanent funds are about 15 percent of the state’s annual budget and without them, each household in the state would pay an average of $800 more in taxes every year, according to the SIC’s website, the New Mexio Independent reported.^[1]

Houston airport-linked nonprofit has ’systemic problems,’

"The nonprofit agency through which the Houston Airport System builds and runs airports in other countries has “systemic problems” and could hurt the city’s bond rating, the city’s chief financial officer said Monday — an issue that could make it more costly for the city to borrow money."

Sen. Rockefeller accepts donations from health insurance companies

With the health insurance reform debate going on in both the U.S. House of Representatives and the U.S. Senate, the Democratic Party and the Republican Party disagree about whether the United States needs a government-run health care “public option.” However, both sides are in agreement about the need for reform and health professional and insurance industries give millions of dollars to representatives on both sides of the political spectrum.

The health professional industry donated at total of $95,185,139 in 2008 and the insurance industry, which includes health insurance companies, gave $46,832,136. With Democrats lining up behind a public option plan, one would be surprised which elected official representing West Virginia received the most money from these industries.

Rockefeller received $107,174 from the insurance industry between 2003 and 2008. Of that total, $32,950 came from individuals and $74,224 came from Political Action Committees (PAC). Rockefeller also received $258,950 from the health professionals industry, of which $133,050 came from individuals and $125,900 came from PAC donations.

The largest donor to Rockefeller between 2007 and 2009 was the Pharmaceutical Research and Manufacturers of America. The organization donated $500, while $15,000 came from 17 lobbyists the group hired.

Sen. Rockefeller connected to SEIU

The SEIU strongly supports government-run health insurance just as Rockefeller is a staunch public option supporter, having recently pushed for the public option amendment to the Senate Finance Committee Chairman’s Mark of America’s Healthy Futures Act of 2009.

Rockefeller accepted $10,000 from SEIU in his 2008 re-election campaign, a substantial increase in donations to Rockefeller from the $1,000 SEIU donated to his 2002 re-election campaign.

On the night of the November 2008 election, SEIU issued a press release congratulating Rockefeller on his re-election stating, "Members and leaders of the nation’s strongest and fastest growing union, Service Employees International Union, tonight extend their congratulations to Senator John Rockefeller on his re-election to the U.S. Senate."

“SEIU members proved that they make politics work and elected a candidate who not only talks the talk, but walks the walk,” said SEIU Secretary-Treasurer Anna Burger. “Now, instead of sitting back and waiting to see what happens, members are staying out in the streets and holding our new leaders accountable for the promises they made over this past campaign season on affordable health care and rebuild the middle class by restoring workers’ freedom to join unions.”^[1]

West Virginia has two SEIU chapters. SEIU Local 1199 is located in Huntington and SEIU Local 553 is in Ranson

Rockefeller Family Fund

The fund supports groups that fall into one of four categories: citizen participation and government accountability, economic justice for women, environment, and institutional responsiveness. As of Dec. 31, 2007 the fund has over $98 million in assets and awarded over $6 million in grants.^[2]

Rockefeller family aides anti-coal movement twice

The family foundation of former West Virginia governor Sen. Rockefeller, the Rockefeller Family Foundation (RFF), has donated almost $500,000 to anti-coal, pro-cap and trade groups in one year, in addition to the funds that he donated to the Tides Foundation, which made their way into anti-coal efforts.

The RFF is run by the fifth generation of the Rockefeller dynasty. It is a multi-million dollar fund that has continuously supported stopping coal plant construction, including in West Virginia, the state that Sen. Rockefeller represents.

South Carolina divided over taxpayer-funded lobbying for in-state universities

Many of the public universities in South Carolina use tax dollars to employ lobbyists. The expense for these lobbyists is in the hundreds of thousands of dollars. The College of Charleston, for instance, employs two lobbyists; with salaries of $81,600 and $85,000 respectively. Other universities that employ highly-paid lobbyists include Clemson University, the University of South Carolina, and The Medical University of South Carolina ^[3].

Report concludes Tennessee cities overspending on lobbying

Taxpayer-funded lobbying in Tennessee, the report warns, leads to a dangerous cycle of overspending. When lobbyists for cities and other government agencies in Tennessee lobby at the state or federal level, they are intent on creating new taxes or raising existing taxes, and expanding their influence over the public. The money generated from new taxes, in turn, is used by Tennessee local entities to fund more taxpayer-funded lobbying ^[4]

ACORN funded political groups

Senator Chuck Grassley (R-IA) released an analysis by his tax staff on Thursday showing that leaders of the ACORN's network transferred the funds, more than half their charitable and public money, in 2006 to pay ACORN affiliates rather than to low income housing efforts.

Grassley called the transactions a "big shell game," urging the Internal Revenue Service to take a closer look. On September 23, 2009, the Internal Revenue Service severed ties with ACORN.

Grassley's report says charities "are being used to raise monies which are then funneled to other charities or to other organizations for purposes other than what the donor may have intended. . . . Dollars raised for charitable [purposes] appear to be used for impermissible lobbing and political activity."

ACORN officials said Grassley's accusations are based on financial transactions that occurred before a leadership change in 2008. Co-founder and longtime director Wade Rathke was pushed to resign and Bertha Lewis took over after concealing from the full board that his brother, Dale Rathke and CFO of ACORN, embezzled almost $950,000 from ACORN between 1999 and 2000. According to Lewis, ACORN has shut down dozens of affiliates.

"Senator Grassley made up his mind, and he didn't bother about the facts," Lewis said in an interview. "He's dealing with a lot of outdated information and decided to frame it with a predetermined conclusion. Yes, we had problems under Wade Rathke. . . . And we have been overhauling how we do things ever since."

There have been many criticisms of ACORN since its creation.^[5]

Category:ACORN

ACORN sues journalists

ACORN said it has suspended its tax program.

“We had already made that decision to not deliver those services,” said Bertha Lewis, ACORN chief executive officer.

ACORN and the two employees, fired after the incident, from the Baltimore, Maryland office filed a multimillion-dollar lawsuit against the makers of the video. The suit contends the journalists gathered the audio illegally because Maryland law requires consent from both parties to record private conversations.^[6]

Tonja Thompson and Shera Williams were the employees in the video and were fired after it was posted. They are plaintiffs in the lawsuit, which says they suffered “extreme emotional distress with attendant physical symptoms and injury to their reputations.”

James O'Keefe, III and Hannah Giles, who played the pimp and prostitute in the video, are defendants in this suit. Conservative columnist and blogger, Andrew Breitbart, posted the videos on his website, Big Government, and is listed in the suit papers.

Breitbart told The Associated Press that he looked forward to a lawsuit. He expects more negative details about ACORN to be discovered in the process of the suit.

The lawsuit says the videos damaged ACORN’s reputation and seeks barring further distribution. The suit is seeking $2 million as compensation for damages, $1 million for ACORN and $500,000 for each of the former employees. It also seeks $1 million in punitive damages from O'Keefe, Giles and Breitbart.

“While everyone, including them, agrees that some of the things they said were dumb,” Andrew Freeman, the former ACORN employees' lawyer, said, “in Maryland we have a right to say dumb things in the privacy of our homes and offices without fear of being taped and without fear of being splashed all over the Internet.”^[5]

See also Internal Revenue Service severed ties with ACORN

Internal Revenue Service severed ties with ACORN

After undercover journalists revealed illegal practices at ACORN offices, the Internal Revenue Service has severed its ties with the organization.

The tax agency announced it would no longer include ACORN in its volunteer tax-assistance program. The program provided free tax advice to about three million low- and moderate-income tax filers in spring 2009.

The agency said ACORN provided help on about 25,000 of those returns. The House and Senate voted this month to ban federal financing to ACORN. The Census Bureau has severed its ties with the group for the 2010 census.

Acorn, meanwhile, said it had already suspended its tax program.

“We had already made that decision to not deliver those services,” said Bertha Lewis, the Acorn chief executive.

Former Butler County Commissioner indicted for corruption

The indictment revolves heavily around Michael Fox's alleged involvement with a close friend and the owner of NORMAP Telecommunications, Robert Schuler. As county commissioner, Fox is said to have used his political influence in order to secure a contract for NORMAP Telecommunications that was worth $1.8 million dollars. ^[1] The contract was for installing fiber optics across Butler County. After the contract was secured for NORMAP, the company was bought by Schuler. As owner of NORMAP, Schuler is alleged to have transferred $360,000 to Fox in 2002 in order to help him pay off his death. Schuler is also said to have transferred $100,000 to a consulting company that was owned by Fox. ^[2]

Three Florida government officials arrested for extortion

The agents slipped more than $40,000 in cash to the politicians while posing as corrupt businessmen. The FBI released hidden tape recorders entangling Commissioner Eggelletion, School Board member Gallagher and former Commissioner Salesman, but more arrests are expected.

Agents went public and questioned many people involved in Broward County's lucrative school building program, including lobbyists, school district employees and construction contractors.

"We are not done," said acting U.S. Attorney Jeffrey Sloman.

Broward County School Board member arrested

Beverly Gallagher is a school board member for Broward County Public Schools, Florida, representing District 2. Her term is supposed to expire in 2012, which may change pending these charges.

Gallager is also the administrator for the scholarship foundation funded by the Community Blood Centers of South Florida, which recently revealed that its scholarships had not been distributed to students.

She was arrested for extortion, wire fraud and bribery after undercover FBI agents passed $12,500 to her in return for making arrangements for them to get school construction contracts.

According to the Federal Complaint, in 2005, Gallagher met with the undercover officers and told them "they could make a lot of money together." The charges say that in one meeting, she put $2,000 in a day planner and in another she left with $1,500. According to the charges, Gallagher helped steer a $71 million building contract for Hollywood Hills High School to supposedly benefit the undercover agents.^[3]

Florida scholarship fund failed to deliver $484,000 to students

South Florida Community Blood Centers, based in Lauderhill, funded the scholarship fund. It announced it will try to contact high school graduates dating to 2007 who were supposed to receive the college scholarships, but did not.

The Sun Sentinel used information provided by the blood bank to compile an online list of about 540 students from Broward, Palm Beach and Miami-Dade counties who are eligible for the aid.^[4]

Key document reveals early airport evidence in Sansom case

Prosecutors have made public nearly 16,000 pages of evidence against the former state House speaker as Sansom is preparing for his trial on felony official misconduct and perjury charges. Sansom and Bob Richburg, the Northwest Florida State College president, had denied that Odom was going to store planes in the building and that it was going to be used for classrooms. However, another piece of evidence in the mountain of paperwork against the former Florida House Speaker is a testimony from the man who oversaw Destin Airport saying he contacted the Federal Aviation Administration to say that the building would have classrooms as well as serve as storage and maintenance space for Destin Jet, a company owned by Odom.^[5]

Top 50 earners in Clarkstown work for police

"The top 50 wage earners in the town of Clarkstown worked for the police department and collectively made about $10 million in 2008.

The highest paid among them was Capt. Thomas Purtill, who earned $335,676.88 in 2008 while working two days a week because of a disability. Purtill, who retired in March after 35 years in the police department, spent three days a week receiving physical therapy."

Full-time pension, part-time hours for 5 local town attorneys?

"Five town attorneys in the region have been collecting credits toward public pensions as though they were full-time town employees, even though each also works for a private practice or represents more than one municipal client.

Public records obtained by the Times Herald-Record show that the towns that employ these lawyers regularly credit them with full-time service when submitting monthly reports to the New York State and Local Retirement System, the taxpayer-funded pension plan for public employees."

Local businessman challenges USD 259 bond award

"A local businessman says he's growing increasingly frustrated in trying to find out why the Wichita school board awarded a multi-million dollar project to a Dallas based company over him.

The bid to install the synthetic turf is the first contract awarded for the new bond issue.

The CEO of ATG sports says he and his attorney already filed a formal protest and open records request last week but heard nothing."

Quincy superintendent addresses pay raises

"At the same time the Quincy school district is talking cuts, we're hearing questions about recent salary increases for administrators in the district.

We received several calls from viewers concerned that the district was giving hefty pay raises to the district's top salaried employees, even while the district plans to whack $2 million dollars in the coming school year.

KHQA investigated to find out if raises were given, how much, and why they were approved for this KHQA FactFinder report."

Lawmakers may take aim at school superintendent contracts

"Lawmakers on both sides of the aisle want to blow the lid off "hidden benefits" in educator salaries now that some superintendent salaries in the state have climbed past $400,000.

Several legislators said they would like to see itemized breakdowns of school administrator salaries. Currently, the Illinois State Board of Education only releases an overall annual salary figure.

Now-retired Supt. Neil Codell, who oversaw two schools for north suburban Niles Township High School District 219, was the highest paid educator in the state last year, taking home $411,500, according to a report in last week's Chicago Sun-Times."

Cuyahoga County Reform Missing Restrictions on Campaign Donations

Issue 6 aims to remedy the problem of cronyism in the Cuyahoga County Comissioner's office. One of the current County Commissioners, Jimmy Dimora, has been investigated by the FBI for possibly helping individuals obtain county positions in exchange for campaign donations or kickbacks. Issue 6, supporters say, would counter such an abuse of power by requiring the county executive to be overseen by an eleven-member council. The county executive would need the council's approval before he or she could make any hiring decisions^[1]..

Cicero's boards are full of the president's relatives

Cicero Town President Larry Dominick offered his brother a spot in the town's government.

"We were just talking and he said, 'How would you like to sit on a town board, get full health insurance and make a thousand bucks a month?'" Richard Dominick said. "I told him, 'Do you think I'm nuts? Yeah, I'll take that.'"

Richard Dominick was a window salesman with no experience in law enforcement who served on the Cicero Board of Fire & Police Commissioners after the conversation with his brother.

The Chicago Tribune discovered that 121 appointed board and commission members in Cicero are paid salaries, totaling $1 million of taxpayer money each year. These employees are also offered health and dental insurance that includes their families.

The town has a population of about 85,000 with a history of nepotism and was once the criminal headquarters of Al Capone. Ernest Hemingway was also born in this town.

Richard Dominick has since transferred to the town's building board, but was fired in the spring for "asking too many questions."

"These boards are a joke," Richard Dominick said. "It's all about political payback. Have you ever heard of a town that gives board members that much money and health insurance? Some of these board members don't even live in town."

Other Dominick relatives served on Cicero town boards in 2009 including Lillian Dominick (Larry Dominick's mother, who serves on the Animal Welfare Board), and Brian (Larry Dominick's son) and Wayne Wente (Dominick's nephew) who both serve on the Housing and Real Estate Board. Additinoally, Larry Dominick's first wife, Carol Bernhard, serves on the Cultural Affairs/Historic Sites Commission and Ryan Chlada, son-in-law of Larry Dominick's second wife, is on the Youth Commission and works as director of special events. Cindy Dembowski, who is Larry Dominick's sister, served on the Animal Welfare Board in 2008 and now is deputy liquor commissioner.

Each member of the 121 person board is paid $7,500 to $12,000 a year and is eligible for insurance benefits, Montenegro said.

Salaries of the board members would amount to $907,500 to more than $1.4 million a year if each member was paid as Richard Dominick was paid, yet Cicero officials would not disclose exact salaries that were requested under the Freedom of Information Act.^[2]

More stimulus money has gone to Obama-supporting areas

About $17 billion of the package can be tracked locally and November’s Obama-supporting counties are receiving twice as much from the federal aid stimulus as those counties that voted for Sen. John McCain, the USA TODAY reports.

"There's no politics at work when it comes to spending for the recovery," White House spokesman Robert Gibbs says.

The USA TODAY’s reports show "the 872 counties that supported Obama received about $69 per person, on average. The 2,234 that supported McCain received about $34." The places receiving the larger split of federal grants and contracts typically get more grants than other areas, as guided by formulas that have been in place for decades.

The targets for the money include aid to repair military bases, improve public housing and college financial aid.

Adam Hughes, director of federal fiscal policy for the non-profit OMB Watch, leans away from the possibility that this is a result of political tinkering.

"Even if they wanted to, I don't think the administration has enough people in place yet to actually do that," Hughes says. "Most of what they're doing at this point is just stamping the checks and sending them out,"

State Sen. Rodney Ellis' private firm stands to profit from bond package he championed for HISD

"The Houston lawmaker gave the Houston Independent School District’s 2007 public bond campaign a final-leg push, and his firm, Rice Financial Products, stands to make a mint from it."

Tickets? VIP shields elite

"Dozens of private citizens and government officials received thousands of "free" parking tickets when their license plates were logged into a secretive Albany Police Department program that dates back years.

A recent Times Union analysis of 5,000 tickets issued to vehicles on the VIP list since Jan. 1, 2003, using documents obtained through a Freedom of Information Law request, revealed that most of the cars are or were owned by the city police force."

Bonuses boost council staff pay

"The City Council has been awarding large bonuses to members of its staff, quietly boosting the pay of some political appointees to levels that are well beyond the salary ranges authorized for those positions in city statutes, according to a Globe review of public records."

DHR consultant’s pay probed

"The head of the state Department of Human Resources, whose hiring practices have drawn past scrutiny, is facing new allegations of preferential treatment of an employee.

Georgia’s inspector general is investigating the employment of Cynthia Tate after an anonymous complaint said Tate was a “personal friend” of B.J. Walker, commissioner of the department, when Tate was hired.

The complaint also alleged that Walker allowed Tate to charge the state for hours not worked to compensate for her travel costs to and from Chicago, where she lives while commuting regularly to Georgia for her work. The Atlanta Journal-Constitution received a copy of that complaint, made anonymously by a DHR employee."

Records show high spending by Atlanta City Council

"Expense reports show that several Atlanta City Council members have spent tens of thousands in taxpayer money to hire their relatives and pass out gifts and food to constituents.

The Atlanta Journal Constitution obtained the records under Georgia's Open Records Act."

Councilman’s use of brother’s company questioned

"Atlanta city councilman and mayoral candidate Ceasar Mitchell authorized $49,223 in payments from his taxpayer-funded expense account to a company owned and operated by his brother and former campaign manager, according to records obtained under Georgia’s Open Records Act."

Former Florida Speaker of the House indicted

Late in the 2007 budget session, Sansom put $6 million dollars into the budget to fund the building, which is located near Northwest Florida State College at Destin Airport, next to Odom's private jet business. Sansom said he had no idea that, at the same time, Odom was seeking $6 million to build a hanger he planned to share with local emergency officials.

Sansom's official misconduct charge is for creating false budget documents, which gave the building the appearance of "multi-use educational facility," when it was nothing more than a hanger. For example, he referred to office space in the building as classrooms.^[3] Richburg, indicted for his part in the scheme, was also indicted for perjury after lying to the jury over plans for the building.