Latest Developments:
- A Federal Grand Jury in Tennessee saw top state lawmakers, including the current state-House speaker, testify this week amidst a years-long “investigation [of]…a case involving the creation of a political vendor that gave kickbacks to lawmakers,” according to The LA Illuminator. Additionally, Nashville 5 reports that, as part of the probe, it is alleged that “former House Speaker Glen Casada received ‘kickbacks’ in exchange for steering business to that company, Phoenix Solutions…[which] was secretly controlled by longtime Casada aide.”
- Federal Prosecutors in Arkansas announced a settlement on Thursday in which a health care non-profit “agreed to forfeit more than $6.9 million to the federal government and pay more than $1.1 million in restitution to Arkansas.” The organization, Preferred Family Health Care, “admitted that its former officers and employees conspired to embezzle funds from the charity and bribe Arkansas legislators.” Arkansas Business reports that several former executives from the charity, former Arkansas legislators, and others have pleaded guilty in federal court as part of the corruption probe, including a lobbyist for the organization who pled guilty in 2019 to bribery and was sentenced to seven years in prison.
- The Hawaii Commission to Improve Standards of Conduct, commissioned by the state legislature, issued its interim report in which it suggested several legislative proposals to “improve standards of conduct among elected officials and employees as safeguards against the further erosion of public trust and confidence in government.” As Hawaii Public Radio reports, the Commission was formed in the wake of two former lawmakers charged with bribery and proposed such legislation as increasing fines on Super PACs that raise more than $10,000 from a single source, increase state Attorney General staff for prosecution of public corruption crimes, and prohibit fundraising during the legislative session, among others.
In Case You Missed It:
- Colorado PAC’s Phantom Funds: The Colorado Secretary of State Elections Division has agreed to look further into a Colorado Springs party official’s complaint that a PAC made contributions to local candidates that it apparently did not have the money to cover. According to the notice, the PAC “reported no contributions since July 2016 and showed an on-hand balance of only $850…[yet] made two prohibited $5,000 contributions to two candidate committees for county office in October 2021, which were not reported in Respondent’s required disclosure reports.” While the candidates returned the part of the contributions in excess of the legal limit, the Colorado Springs Independent distills the larger question as, “[w]here did the 10K come from?”
- Pelican State Campaign Practices: The Advocate is reporting on Louisiana state AG Jeff Landry’s decade-long campaign practice of paying a staffing business he owns for campaign related expenses, estimated at more than $420,000 over the last 15 years. Public records show that “Landry is the sole owner of [the recipient] firm and earns more than $200,000 in annual income from it.” Good government watchdog groups in the state contend that the practice obscures who is being paid by the campaign for services. At the same time, “Louisiana law doesn’t directly address whether political candidates may spend campaign cash on their own companies.”
- Old Line Campaign Funds for Legal Defense: We reported last week on state attorney Marilyn Mosby’s alleged campaign irregularities in that deceased relatives’ names were listed as campaign contributors years after their demise. This week, The Baltimore Sun reports that the embattled official received a favorable determination regarding another campaign finance complaint. Facing “federal charges of perjury and making false statements following a nearly yearlong probe into her personal finances and campaign spending” the Maryland State Board of Elections determined that her and her politician husband’s “use of campaign funds for the legal defense…did not violate state election law.” While state law prohibits campaign funds from being used for lawsuits not immediately related to the campaign, the Mosby’s argued that “the investigation…‘inserted itself into almost every aspect of their lives — including their respective campaign committees’”.