In a brief filed with the U.S. Supreme Court today Texans for Public Justice joined with 19 reform organizations to urge the Court to uphold the historic ban on corporate campaign contributions. The future of the 100-year old federal and Texas state prohibition on corporate political contributions may be in jeopardy as the Court hears arguments in Citizens United v Federal Election Commission in a special September 9 session.
"Tearing down the wall against corporate campaign spending will hasten the selling of our government to special interests," said TPJ director Craig McDonald.
TPJ's brief and background information are available at Justice at Stake.
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Monday, July 27, 2009
Austin American-Statesman: Hutchison slices into Perry's donor base
Kay Bailey Hutchison, gearing up to run against Gov. Rick Perry next year, has chipped into Perry's rich donor base, taking in 21 percent of $6.7 million she raised from December through June from 35 of Perry's historically staunchest backers, a review shows. Hutchison's inroads with Perry's biggest financiers were gauged by comparing donors of $5,000 or more to Hutchison this year with a compilation of Perry's biggest donors from 2003 through 2008 by Texans for Public Justice, a nonpartisan group that tracks the influence of money and corporate power in Texas politics.Read the full posting at the Austin American-Statesman
AMERICAN-STATESMAN STAFF
Monday, July 27, 2009
Kay Bailey Hutchison, gearing up to run against Gov. Rick Perry next year, has chipped into Perry's rich donor base, taking in 21 percent of $6.7 million she raised from December through June from 35 of Perry's historically staunchest backers, a review shows.
All told, the big benefactors — most of whom previously gave to Hutchison's U.S. Senate campaigns — accounted for nearly $3.8 million of about $27.6 million Perry raised from givers of $25,000 or more from 2003 through 2008.
More than seven months out from the March primary, it's arguably premature and maybe even dicey to compare secretive jockeying for money between the Republican heavyweights poised to make history because of the rare spectacle of a sitting senator challenging a governor from her own party.
Besides, the early money — she has $12.5 million on hand and he has $9.3 million — indicates that both will have ample cash to stir voters.
Still, Hutchison has made inroads with Perry loyalists including former Gov. Bill Clements, Austin philanthropist Joe Long and some former Perry appointees to state boards, leading Bill Ceverha, a Dallas fundraiser on her side, to say: "Of course, it's meaningful. It's money he's not going to get."
But Perry, who raised $4.2 million in the nine June days that donors were permitted to give to state officeholders, retained a strong stake in high-dollar donors. They included individuals who have given to Hutchison's past campaigns and might be expected to consider her over him.
More than 40 previous donors to Hutchison's Senate campaigns stuck with Perry for governor in June; they'd given more than $5 million to his campaigns from 2003 through 2008, compared to less than $180,000 to hers since 1993. The gulf partly reflects that there are legal limits on donations to candidates for federal office but no caps for those aspiring to state offices in Texas.
Five big donors to Hutchison (including Houston Texans' owner Bob McNair) also gave to Perry, perhaps hedging or demonstrating fondness for both. For many Republicans, even discussing donations to the political powerhouses can prove ticklish.
Centerville rancher-businessman Richard Wallrath gave $10,000 to Hutchison and $12,500 to Perry, whom he gave nearly $160,000 from 2003 through 2008.
"Both these people are my friends, OK?" Wallrath said.
Clements was among seven donors who gave to Perry last year before ponying up for Hutchison this year. He was unavailable for comment. His wife, Rita, said: "We really don't want to get in the middle of this."
Ceverha and Hutchison's finance chairman, John Nau of Houston, said the Perry-to-Hutchison shifts were rooted in promises made to Hutchison when she bowed out of challenging Perry in 2006 and beliefs that she's a visionary leader equipped to guide the state toward improvements in education.
Nau, a former Perry appointee to the Texas Historical Commission, said he helped Perry backers dissuade Hutchison from challenging Perry in 2006. At the time, Nau said, Perry told him: "Next time is her time."
Nau said he was among activists who told Hutchison they would support her in 2010. "I gave my word," Nau said. "Obviously, I was surprised like everyone else when Gov. Perry announced that he was going to seek re-election" in 2010.
Similarly, GOP benefactor Louis Beecherl of Dallas, who gave Perry's campaign $150,000 from 2003 through 2008, told Hutchison he'd support her in 2010 if she bowed out in 2006, according to Ceverha, who advises Beecherl. Beecherl's wife still supports Perry.
"We all assumed Rick was not going to run" in 2010, Ceverha said. "He basically told us."
Many Republicans were surprised last year when Perry volunteered his intention to run again. Last week, Perry spokesman Mark Miner didn't directly comment on Ceverha's and Nau's recollections, but he said that he wasn't aware Perry ever said he wouldn't run a third time.
Perry's campaign noted that nearly 60 of his donors doubled their previous contributions to him, arguably an indication of intensified support.
And as of July, most of Perry's traditionally most generous donors — more than 300 individuals or groups that have given $25,000 or more since 2003 — hadn't written a check to Hutchison for governor.
San Antonio developer Gene Powell, a finance co-chair for Perry, suggested Hutchison's donors included people who felt obligated to the state's senior senator — some of whom have promised to give to Perry in the fall.
Nau said that since June, additional Perry backers have made hefty donations to Hutchison.
Powell said: "You never ever want to lose a major supporter, ever. But you're going to when you have two candidates who have worked essentially side by side."
Perry and Hutchison both won statewide office in 1990, when the political landscape was dominated by Democrats.
"It's just exactly like a divorce," Powell said. "Some of the friends end up with the husband; some go with the wife. All of the supporters can't go with one side or the other. We've lost very few."
Powell said that Perry has presided over a vibrant state economy and, like the winning coach of the University of Texas football team, deserves to be retained.
Fred Meyer, a former state GOP chair raising money for Hutchison in North Texas, said Republicans want Hutchison atop their ticket in light of recent Democratic gains in legislative races and in Dallas and Harris counties. Republicans "are in danger of losing control of this state," Meyer said.
Among Perry donors who shifted, investor Bill McMinn of Houston said that he believes in term limits and that Hutchison can help Texas more as governor than by staying in the Senate. With Democrats nationally ascendant, McMinn said, "we're going to be looking at a lot of government intrusion. Kay Bailey having friends (in Washington) and knowledge of how Washington works (would be) far more beneficial to Texas."
He said of Perry serving again: "I don't have an answer for that. We still have some of the same problems that we had the first day he was elected," such as with education and immigration. "Some of those seem almost insurmountable. I don't think it hurts to have some fresh blood."
Hutchison's inroads with Perry's biggest financiers were gauged by comparing donors of $5,000 or more to Hutchison this year with a compilation of Perry's biggest donors from 2003 through 2008 by Texans for Public Justice, a nonpartisan group that tracks the influence of money and corporate power in Texas politics. The crosshatch of Perry's big-dollar donors and Hutchison's Senate campaign donors involved a search of a database kept by the nonpartisan Center for Responsive Politics, which tracks money in U.S. politics and its effect on elections and public policy.
MORE ON THIS STORY: PERRY DONORS WHO GAVE TO HUTCHISON
wgselby@statesman.com; 445-3644
Hutchison slices into Perry's donor base
Governor retains most of his big backers.
By W. Gardner SelbyAMERICAN-STATESMAN STAFF
Monday, July 27, 2009
Kay Bailey Hutchison, gearing up to run against Gov. Rick Perry next year, has chipped into Perry's rich donor base, taking in 21 percent of $6.7 million she raised from December through June from 35 of Perry's historically staunchest backers, a review shows.
All told, the big benefactors — most of whom previously gave to Hutchison's U.S. Senate campaigns — accounted for nearly $3.8 million of about $27.6 million Perry raised from givers of $25,000 or more from 2003 through 2008.
More than seven months out from the March primary, it's arguably premature and maybe even dicey to compare secretive jockeying for money between the Republican heavyweights poised to make history because of the rare spectacle of a sitting senator challenging a governor from her own party.
Besides, the early money — she has $12.5 million on hand and he has $9.3 million — indicates that both will have ample cash to stir voters.
Still, Hutchison has made inroads with Perry loyalists including former Gov. Bill Clements, Austin philanthropist Joe Long and some former Perry appointees to state boards, leading Bill Ceverha, a Dallas fundraiser on her side, to say: "Of course, it's meaningful. It's money he's not going to get."
But Perry, who raised $4.2 million in the nine June days that donors were permitted to give to state officeholders, retained a strong stake in high-dollar donors. They included individuals who have given to Hutchison's past campaigns and might be expected to consider her over him.
More than 40 previous donors to Hutchison's Senate campaigns stuck with Perry for governor in June; they'd given more than $5 million to his campaigns from 2003 through 2008, compared to less than $180,000 to hers since 1993. The gulf partly reflects that there are legal limits on donations to candidates for federal office but no caps for those aspiring to state offices in Texas.
Five big donors to Hutchison (including Houston Texans' owner Bob McNair) also gave to Perry, perhaps hedging or demonstrating fondness for both. For many Republicans, even discussing donations to the political powerhouses can prove ticklish.
Centerville rancher-businessman Richard Wallrath gave $10,000 to Hutchison and $12,500 to Perry, whom he gave nearly $160,000 from 2003 through 2008.
"Both these people are my friends, OK?" Wallrath said.
Clements was among seven donors who gave to Perry last year before ponying up for Hutchison this year. He was unavailable for comment. His wife, Rita, said: "We really don't want to get in the middle of this."
Ceverha and Hutchison's finance chairman, John Nau of Houston, said the Perry-to-Hutchison shifts were rooted in promises made to Hutchison when she bowed out of challenging Perry in 2006 and beliefs that she's a visionary leader equipped to guide the state toward improvements in education.
Nau, a former Perry appointee to the Texas Historical Commission, said he helped Perry backers dissuade Hutchison from challenging Perry in 2006. At the time, Nau said, Perry told him: "Next time is her time."
Nau said he was among activists who told Hutchison they would support her in 2010. "I gave my word," Nau said. "Obviously, I was surprised like everyone else when Gov. Perry announced that he was going to seek re-election" in 2010.
Similarly, GOP benefactor Louis Beecherl of Dallas, who gave Perry's campaign $150,000 from 2003 through 2008, told Hutchison he'd support her in 2010 if she bowed out in 2006, according to Ceverha, who advises Beecherl. Beecherl's wife still supports Perry.
"We all assumed Rick was not going to run" in 2010, Ceverha said. "He basically told us."
Many Republicans were surprised last year when Perry volunteered his intention to run again. Last week, Perry spokesman Mark Miner didn't directly comment on Ceverha's and Nau's recollections, but he said that he wasn't aware Perry ever said he wouldn't run a third time.
Perry's campaign noted that nearly 60 of his donors doubled their previous contributions to him, arguably an indication of intensified support.
And as of July, most of Perry's traditionally most generous donors — more than 300 individuals or groups that have given $25,000 or more since 2003 — hadn't written a check to Hutchison for governor.
San Antonio developer Gene Powell, a finance co-chair for Perry, suggested Hutchison's donors included people who felt obligated to the state's senior senator — some of whom have promised to give to Perry in the fall.
Nau said that since June, additional Perry backers have made hefty donations to Hutchison.
Powell said: "You never ever want to lose a major supporter, ever. But you're going to when you have two candidates who have worked essentially side by side."
Perry and Hutchison both won statewide office in 1990, when the political landscape was dominated by Democrats.
"It's just exactly like a divorce," Powell said. "Some of the friends end up with the husband; some go with the wife. All of the supporters can't go with one side or the other. We've lost very few."
Powell said that Perry has presided over a vibrant state economy and, like the winning coach of the University of Texas football team, deserves to be retained.
Fred Meyer, a former state GOP chair raising money for Hutchison in North Texas, said Republicans want Hutchison atop their ticket in light of recent Democratic gains in legislative races and in Dallas and Harris counties. Republicans "are in danger of losing control of this state," Meyer said.
Among Perry donors who shifted, investor Bill McMinn of Houston said that he believes in term limits and that Hutchison can help Texas more as governor than by staying in the Senate. With Democrats nationally ascendant, McMinn said, "we're going to be looking at a lot of government intrusion. Kay Bailey having friends (in Washington) and knowledge of how Washington works (would be) far more beneficial to Texas."
He said of Perry serving again: "I don't have an answer for that. We still have some of the same problems that we had the first day he was elected," such as with education and immigration. "Some of those seem almost insurmountable. I don't think it hurts to have some fresh blood."
Hutchison's inroads with Perry's biggest financiers were gauged by comparing donors of $5,000 or more to Hutchison this year with a compilation of Perry's biggest donors from 2003 through 2008 by Texans for Public Justice, a nonpartisan group that tracks the influence of money and corporate power in Texas politics. The crosshatch of Perry's big-dollar donors and Hutchison's Senate campaign donors involved a search of a database kept by the nonpartisan Center for Responsive Politics, which tracks money in U.S. politics and its effect on elections and public policy.
MORE ON THIS STORY: PERRY DONORS WHO GAVE TO HUTCHISON
wgselby@statesman.com; 445-3644
Sunday, July 26, 2009
McAllen Monitor: Could state lawmaker be saved by ethics loophole?
As state Rep. Ismael “Kino” Flores prepares to fight the criminal charges filed against him, the Palmview Democrat enters a battle he has fought and won before. At issue is whether Flores, who earns his income as a managerial consultant, is required by law to list his clients in his annual financial disclosure forms.Read the full post at the Monitor online
By Jeremy Roebeck
The Monitor
July 26, 2009
PALMVIEW — As state Rep. Ismael “Kino” Flores prepares to fight the criminal charges filed against him, the Palmview Democrat enters a battle he has fought and won before.
It’s a skirmish mired in the gray areas of state ethics rules and one where the points of law are anything but settled.
At issue is whether Flores, who earns his income as a managerial consultant, is required by law to list his clients in his annual financial disclosure forms.
A previous grand jury answered with a frustrated no in 2005. But this year, the Travis County District Attorney’s Office appears to be saying yes, his Austin-based attorney Roy Minton said.
“They’ve been after Kino for a couple of years now,” he said. “And this is the best they could come up with?”
ETHICS LOOPHOLE
Travis County prosecutors declined to discuss their interpretation of the law, citing the ongoing criminal case.
But in a series of six indictments, they allege Flores hid more than $847,000 in income, property interests and gifts from state ethics regulators over a six-year period — including payments he received from a handful of companies such as Houston-based Dannenbaum Engineering, McAllen Medical Center and Inter National Bank for which he did consulting work.
Flores said in a statement July 17 that he never “intentionally or knowingly violated any state law.” And he may have good reason to cling to that defense.
In an unusual move, the 2005 grand jury authored a report pointing out a loophole in state ethics laws that stymied their efforts to get to the bottom of “obvious misconduct” by an unnamed “high profile” official.
A lawyer from the Texas Ethics Commission had advised the legislator that he need not cite each business that hired him as a consultant on his financial disclosure forms, the grand jury noted.
“This prevents that public official’s constituents from full disclosure of sources of income, and it prevents them from being able to discover possible conflicts of interest,” the panel wrote.
At the time, the memo sparked controversy among state watchdog groups, who argued the loophole violated the spirit of the ethics commission’s charter. But they conceded that without new laws to tighten regulations, lawmakers could legally continue to accept private work behind a curtain that shielded prying eyes.
The grand jury never mentioned Flores by name, but several sources — including Minton — have said that his consulting work was the target of their investigation.
REPORTING
The advice of the ethics commission lawyer — while not a binding legal opinion — suggests Flores might credibly claim he thought he was acting within the law when he left the information off his financial disclosure forms.
The documents — which all elected officials are required to fill out annually — only have space for an officeholder to note who he works for and what his occupation is. Flores’ 2008 report, for example, lists himself as his employer. Under nature of occupation, he put “managerial consultant.”
“I think the ordinary person would hear that he failed to report and think he needed to put who he worked for and how much they paid him,” Minton said. “But there isn’t a requirement that he do so. If he’s an engineer, all he’d have to put down is engineer.”
Several other legislators, such as state Sen. Judith Zaffirini, D-Laredo, and Rep. James Murphy, R-Houston, also listed their occupations as self-employed consultants on their most recently available financial disclosure forms. None named individual clients.
WHY NOW?
So why was Flores indicted now for behavior that was deemed non-criminal in 2005? Craig McDonald, director of the legislative watchdog group Texans for Public Justice, suspects the difference could stem from the fact that the companies paid Flores directly for his work rather than paying a consulting firm.
“If Kino or any other legislator had a consulting firm, he would not — for the purposes for the state financial disclosure — have to report that money,” McDonald said. “If they are paying him directly, they would.”
The lawmaker owns an Edinburg-based consulting company named Atlas Valley Consultants. But it was established in February 2007 — four years after the first illegal activity alleged in the indictment.
Accusations that Flores also omitted seven different properties he owned or sold from 2003 to 2008 as well as gifts given to himself and his son could prove harder to dispel. But Minton maintains the criminal counts stemming from those charges are weak as well.
On the same day that Flores was indicted, Lt. Gov. David Dewhurst voluntarily amended two years of past financial filings to disclose previously withheld information regarding his stake in several investment funds.
“Mistakes happen,” Minton said. “I am right now representing a number of people in high public office that haven’t put down things that they should. When it’s pointed out, they amend it. They’re not prosecuted.”
Flores currently faces 16 counts of tampering with government documents and three counts of perjury. If convicted, he could face up to two years in jail and thousands of dollars in fines.
____
Jeremy Roebuck covers courts and general assignments for The Monitor. You can reach him at (956) 683-4437.
Could state lawmaker be saved by ethics loophole?
By Jeremy Roebeck
The Monitor
July 26, 2009
PALMVIEW — As state Rep. Ismael “Kino” Flores prepares to fight the criminal charges filed against him, the Palmview Democrat enters a battle he has fought and won before.
It’s a skirmish mired in the gray areas of state ethics rules and one where the points of law are anything but settled.
At issue is whether Flores, who earns his income as a managerial consultant, is required by law to list his clients in his annual financial disclosure forms.
A previous grand jury answered with a frustrated no in 2005. But this year, the Travis County District Attorney’s Office appears to be saying yes, his Austin-based attorney Roy Minton said.
“They’ve been after Kino for a couple of years now,” he said. “And this is the best they could come up with?”
ETHICS LOOPHOLE
Travis County prosecutors declined to discuss their interpretation of the law, citing the ongoing criminal case.
But in a series of six indictments, they allege Flores hid more than $847,000 in income, property interests and gifts from state ethics regulators over a six-year period — including payments he received from a handful of companies such as Houston-based Dannenbaum Engineering, McAllen Medical Center and Inter National Bank for which he did consulting work.
Flores said in a statement July 17 that he never “intentionally or knowingly violated any state law.” And he may have good reason to cling to that defense.
In an unusual move, the 2005 grand jury authored a report pointing out a loophole in state ethics laws that stymied their efforts to get to the bottom of “obvious misconduct” by an unnamed “high profile” official.
A lawyer from the Texas Ethics Commission had advised the legislator that he need not cite each business that hired him as a consultant on his financial disclosure forms, the grand jury noted.
“This prevents that public official’s constituents from full disclosure of sources of income, and it prevents them from being able to discover possible conflicts of interest,” the panel wrote.
At the time, the memo sparked controversy among state watchdog groups, who argued the loophole violated the spirit of the ethics commission’s charter. But they conceded that without new laws to tighten regulations, lawmakers could legally continue to accept private work behind a curtain that shielded prying eyes.
The grand jury never mentioned Flores by name, but several sources — including Minton — have said that his consulting work was the target of their investigation.
REPORTING
The advice of the ethics commission lawyer — while not a binding legal opinion — suggests Flores might credibly claim he thought he was acting within the law when he left the information off his financial disclosure forms.
The documents — which all elected officials are required to fill out annually — only have space for an officeholder to note who he works for and what his occupation is. Flores’ 2008 report, for example, lists himself as his employer. Under nature of occupation, he put “managerial consultant.”
“I think the ordinary person would hear that he failed to report and think he needed to put who he worked for and how much they paid him,” Minton said. “But there isn’t a requirement that he do so. If he’s an engineer, all he’d have to put down is engineer.”
Several other legislators, such as state Sen. Judith Zaffirini, D-Laredo, and Rep. James Murphy, R-Houston, also listed their occupations as self-employed consultants on their most recently available financial disclosure forms. None named individual clients.
WHY NOW?
So why was Flores indicted now for behavior that was deemed non-criminal in 2005? Craig McDonald, director of the legislative watchdog group Texans for Public Justice, suspects the difference could stem from the fact that the companies paid Flores directly for his work rather than paying a consulting firm.
“If Kino or any other legislator had a consulting firm, he would not — for the purposes for the state financial disclosure — have to report that money,” McDonald said. “If they are paying him directly, they would.”
The lawmaker owns an Edinburg-based consulting company named Atlas Valley Consultants. But it was established in February 2007 — four years after the first illegal activity alleged in the indictment.
Accusations that Flores also omitted seven different properties he owned or sold from 2003 to 2008 as well as gifts given to himself and his son could prove harder to dispel. But Minton maintains the criminal counts stemming from those charges are weak as well.
On the same day that Flores was indicted, Lt. Gov. David Dewhurst voluntarily amended two years of past financial filings to disclose previously withheld information regarding his stake in several investment funds.
“Mistakes happen,” Minton said. “I am right now representing a number of people in high public office that haven’t put down things that they should. When it’s pointed out, they amend it. They’re not prosecuted.”
Flores currently faces 16 counts of tampering with government documents and three counts of perjury. If convicted, he could face up to two years in jail and thousands of dollars in fines.
____
Jeremy Roebuck covers courts and general assignments for The Monitor. You can reach him at (956) 683-4437.
Friday, July 17, 2009
Houston Chronicle: Lt. Gov. Dewhurst amends financial disclosures
Multimillionaire Lt. Gov. David Dewhurst, who has drawn criticism for revealing scant details about his vast wealth, amended past financial filings Friday and disclosed information including his stake in several investment funds. The lack of detail prompted a complaint by Texans for Public Justice, a liberal watchdog group based in Austin. Director Craig McDonald applauded Escamilla's review but said the ethics commission should levy civil penalties for the lieutenant governor's "noncompliance with the disclosure laws over the past years."Read the full post at the Houston Chronicle
Houston Chronicle
July 17, 2009
AUSTIN, Texas — Multimillionaire Lt. Gov. David Dewhurst, who has drawn criticism for revealing scant details about his vast wealth, amended past financial filings Friday and disclosed information including his stake in several investment funds.
The Republican sent the Texas Ethics Commission two corrected financial statements covering 2007 and 2008 filings. The new disclosures show Dewhurst holds a stake in several funds, including assets managed by Goldman Sachs, Lehman Brothers and the TCP Investment Fund II LP.
A watchdog group filed a formal complaint with Travis County prosecutors in September after The Associated Press raised questions about the lack of detail in his personal financial statements. Travis County Attorney David Escamilla, a Democrat who investigates allegations of misdemeanor offenses by public officials, said his probe is finished.
"By them agreeing to move forward and file the amended reports, we believe there is no question that they're in compliance," Escamilla said.
Escamilla said he hired a forensic accountant to pore over Dewhurst's tax returns to determine whether he had violated the law. Escamilla said he found no "intent to deceive" on Dewhurst's part but called on the ethics commission or Legislature to clarify often vague legal requirements.
Dewhurst said his failure to disclose the information was "inadvertent" and stressed he had carefully followed lawyers' advice of in filing his financial disclosures.
"I appreciate the professional and thorough manner in which the County Attorney conducted his review," Dewhurst said in a written statement.
Earlier disclosure documents did not reveal that the former CIA agent, through a privately held trust, was a major shareholder in a Houston energy and investment company. There also was no mention of Dewhurst's far-flung cattle ranches, private bank investments or luxury condo. Nor was there any word of the hedge funds, stocks and bonds or publicly traded fuel distribution company he acknowledges are or have been part of a trust fund estimated to be worth up to $200 million.
It just said the David Dewhurst Trust is valued at "$25,000 or more."
As lieutenant governor, Dewhurst presides over the state Senate and wields tremendous influence over legislation. He is considering a run for higher office next year. He has for years kept most of his wealth hidden in a trust whose major assets were not disclosed.
The lack of detail prompted a complaint by Texans for Public Justice, a liberal watchdog group based in Austin. Director Craig McDonald applauded Escamilla's review but said the ethics commission should levy civil penalties for the lieutenant governor's "noncompliance with the disclosure laws over the past years."
"(Lt.) Governor Dewhurst's financial disclosures fall under the category of better late than never — and better something rather than nothing," McDonald said.
The fresh disclosures mark the second time this year Dewhurst has changed how he reported wealth. In April, Dewhurst announced he was forming a blind trust. Though previous statements had revealed existence of the David Dewhurst Trust, it wasn't a blind trust — an investment tool designed to create a legal firewall between public service and personal business dealings.
Dewhurst's brother Eugene and longtime business associate Martin Young were installed as trustees of the newly created David Dewhurst Blind Trust. Both have signed sworn affidavits saying they would not reveal detailed information about the blind trust to Dewhurst.
In the corrected financial statements released Friday, Dewhurst revealed he owns a stake in several "blind-pool funds" managed by professional investment firms. Among them were funds managed by Goldman Sachs, including GS Global Alpha Fund; GS Global Equity Opportunities Fund, LLC; GS GMS Alpha Plus Portfolio; GS Capital Partners V Institutional, LP; Archon Core Plus Real Estate Fund 2005, LP; and Caribbean Real Estate Opportunity Fund 2005, LP.
Dewhurst earlier this year disclosed a stake in Falcon Seaboard Investment Company, LP.
Lt. Gov. Dewhurst amends financial disclosures
By Jay RootHouston Chronicle
July 17, 2009
AUSTIN, Texas — Multimillionaire Lt. Gov. David Dewhurst, who has drawn criticism for revealing scant details about his vast wealth, amended past financial filings Friday and disclosed information including his stake in several investment funds.
The Republican sent the Texas Ethics Commission two corrected financial statements covering 2007 and 2008 filings. The new disclosures show Dewhurst holds a stake in several funds, including assets managed by Goldman Sachs, Lehman Brothers and the TCP Investment Fund II LP.
A watchdog group filed a formal complaint with Travis County prosecutors in September after The Associated Press raised questions about the lack of detail in his personal financial statements. Travis County Attorney David Escamilla, a Democrat who investigates allegations of misdemeanor offenses by public officials, said his probe is finished.
"By them agreeing to move forward and file the amended reports, we believe there is no question that they're in compliance," Escamilla said.
Escamilla said he hired a forensic accountant to pore over Dewhurst's tax returns to determine whether he had violated the law. Escamilla said he found no "intent to deceive" on Dewhurst's part but called on the ethics commission or Legislature to clarify often vague legal requirements.
Dewhurst said his failure to disclose the information was "inadvertent" and stressed he had carefully followed lawyers' advice of in filing his financial disclosures.
"I appreciate the professional and thorough manner in which the County Attorney conducted his review," Dewhurst said in a written statement.
Earlier disclosure documents did not reveal that the former CIA agent, through a privately held trust, was a major shareholder in a Houston energy and investment company. There also was no mention of Dewhurst's far-flung cattle ranches, private bank investments or luxury condo. Nor was there any word of the hedge funds, stocks and bonds or publicly traded fuel distribution company he acknowledges are or have been part of a trust fund estimated to be worth up to $200 million.
It just said the David Dewhurst Trust is valued at "$25,000 or more."
As lieutenant governor, Dewhurst presides over the state Senate and wields tremendous influence over legislation. He is considering a run for higher office next year. He has for years kept most of his wealth hidden in a trust whose major assets were not disclosed.
The lack of detail prompted a complaint by Texans for Public Justice, a liberal watchdog group based in Austin. Director Craig McDonald applauded Escamilla's review but said the ethics commission should levy civil penalties for the lieutenant governor's "noncompliance with the disclosure laws over the past years."
"(Lt.) Governor Dewhurst's financial disclosures fall under the category of better late than never — and better something rather than nothing," McDonald said.
The fresh disclosures mark the second time this year Dewhurst has changed how he reported wealth. In April, Dewhurst announced he was forming a blind trust. Though previous statements had revealed existence of the David Dewhurst Trust, it wasn't a blind trust — an investment tool designed to create a legal firewall between public service and personal business dealings.
Dewhurst's brother Eugene and longtime business associate Martin Young were installed as trustees of the newly created David Dewhurst Blind Trust. Both have signed sworn affidavits saying they would not reveal detailed information about the blind trust to Dewhurst.
In the corrected financial statements released Friday, Dewhurst revealed he owns a stake in several "blind-pool funds" managed by professional investment firms. Among them were funds managed by Goldman Sachs, including GS Global Alpha Fund; GS Global Equity Opportunities Fund, LLC; GS GMS Alpha Plus Portfolio; GS Capital Partners V Institutional, LP; Archon Core Plus Real Estate Fund 2005, LP; and Caribbean Real Estate Opportunity Fund 2005, LP.
Dewhurst earlier this year disclosed a stake in Falcon Seaboard Investment Company, LP.
Thursday, July 16, 2009
Dallas Morning News: Former donors of Gov. Rick Perry backing Kay Bailey Hutchison
At least 26 past major donors to Gov. Rick Perry are now giving to rival Kay Bailey Hutchison, contributing more than $1 million to the senator in the last six months. Among some of the largest defections from the Perry camp are businessmen and one-time supporters whom the governor appointed to prime positions on state boards and agencies.Read the full posting at the Dallas Morning News
Dallas Morning News
July 16, 2009
AUSTIN – At least 26 past major donors to Gov. Rick Perry are now giving to rival Kay Bailey Hutchison, contributing more than $1 million to the senator in the last six months.
Among some of the largest defections from the Perry camp are businessmen and one-time supporters whom the governor appointed to prime positions on state boards and agencies.
Ned Holmes of Houston, a Perry appointee to the Texas Transportation Commission, gave $77,000 to Hutchison, campaign finance reports released Wednesday show.
Robert Rowling of Dallas, who gave $100,000 to Hutchison, was on the University of Texas Board of Regents, and Charles Tate of Houston, also a $100,000 giver to Hutchison, used to be on Perry's Council for Science and Biotechnology.
The candidates' reports also indicate that some Republican families are choosing different sides as Texas' two biggest political titans prepare to face off in the March GOP primary for governor.
Rob Mosbacher of Houston, an unsuccessful candidate for lieutenant governor in 1990, gave $10,000 to Hutchison, but his stepmother, Mica Mosbacher, was Perry's largest donor, giving him $225,000.
Oil man Sid Bass and his wife, Mercedes, gave $2,600 to Hutchison, while brother Lee and his wife, Ramona, are on the Perry financial team to raise money for his re-election.
Investor Louis Beecherl of Dallas has given $100,000 to Hutchison. His wife, Julie, is listed as a member of the Perry campaign's financial team.
In the reports that show donations from January through June, Hutchison raised a total of $6.7 million while Perry brought in $4.2 million.
The governor, who is precluded from raising money during a legislative session, had only nine days to gather money.
The report shows that $2.65 million of his total, 63 percent, came from 41 donors who wrote checks of $25,000 or more.
Mark Miner, a spokesman for Perry, pointed out that many of the governor's supporters also had once been donors to Hutchison's senatorial campaigns, but are now picking Perry in the head-to-head race.
"Governor Perry is very pleased with the financial support he has received, especially considering the limited amount of time he was able to raise funds," Miner said.
Said Hutchison's spokesman, Hans Klingler: "We are proud to have over 6,500 donors from across the state including some who formerly supported our opponent. Plainly they all believe Kay Bailey Hutchison is the leader who will bring results not politics."
As the race heats up, some prominent Republicans have yet to choose between the two. Houston Texans owner Robert McNair gave $25,000 to both Perry and Hutchison.
Oil and gas businessman Dan Duncan also gave $50,000 to each, and rancher Richard Wallrath gave $10,000 to Hutchison and $12,500 to Perry.
Former donors of Gov. Rick Perry backing Kay Bailey Hutchison
By Christy Hoppe and Emily RamshawDallas Morning News
July 16, 2009
AUSTIN – At least 26 past major donors to Gov. Rick Perry are now giving to rival Kay Bailey Hutchison, contributing more than $1 million to the senator in the last six months.
Among some of the largest defections from the Perry camp are businessmen and one-time supporters whom the governor appointed to prime positions on state boards and agencies.
Ned Holmes of Houston, a Perry appointee to the Texas Transportation Commission, gave $77,000 to Hutchison, campaign finance reports released Wednesday show.
Robert Rowling of Dallas, who gave $100,000 to Hutchison, was on the University of Texas Board of Regents, and Charles Tate of Houston, also a $100,000 giver to Hutchison, used to be on Perry's Council for Science and Biotechnology.
The candidates' reports also indicate that some Republican families are choosing different sides as Texas' two biggest political titans prepare to face off in the March GOP primary for governor.
Rob Mosbacher of Houston, an unsuccessful candidate for lieutenant governor in 1990, gave $10,000 to Hutchison, but his stepmother, Mica Mosbacher, was Perry's largest donor, giving him $225,000.
Oil man Sid Bass and his wife, Mercedes, gave $2,600 to Hutchison, while brother Lee and his wife, Ramona, are on the Perry financial team to raise money for his re-election.
Investor Louis Beecherl of Dallas has given $100,000 to Hutchison. His wife, Julie, is listed as a member of the Perry campaign's financial team.
In the reports that show donations from January through June, Hutchison raised a total of $6.7 million while Perry brought in $4.2 million.
The governor, who is precluded from raising money during a legislative session, had only nine days to gather money.
The report shows that $2.65 million of his total, 63 percent, came from 41 donors who wrote checks of $25,000 or more.
Mark Miner, a spokesman for Perry, pointed out that many of the governor's supporters also had once been donors to Hutchison's senatorial campaigns, but are now picking Perry in the head-to-head race.
"Governor Perry is very pleased with the financial support he has received, especially considering the limited amount of time he was able to raise funds," Miner said.
Said Hutchison's spokesman, Hans Klingler: "We are proud to have over 6,500 donors from across the state including some who formerly supported our opponent. Plainly they all believe Kay Bailey Hutchison is the leader who will bring results not politics."
As the race heats up, some prominent Republicans have yet to choose between the two. Houston Texans owner Robert McNair gave $25,000 to both Perry and Hutchison.
Oil and gas businessman Dan Duncan also gave $50,000 to each, and rancher Richard Wallrath gave $10,000 to Hutchison and $12,500 to Perry.
Wednesday, July 15, 2009
El Paso Times: Graduation party for state Rep. Norma Chavez was paid for
Seventeen lobbyists paid more than $3,500 for an elaborate graduation party for state Rep. Norma Chávez in Austin. Though it is legal -- and not unusual -- for lobbyists to host parties for lawmakers and ply them with food, drinks and gifts, Capitol watchdog groups said the party for Chávez took the practice to a different and more personal level. And, they said, it raised questions about whether Chávez would feel indebted to lobbyists who would later seek her vote.Read the full posting at the El Paso Times
El Paso Times
July 15, 2009
EL PASO -- Seventeen lobbyists paid more than $3,500 for an elaborate graduation party for state Rep. Norma Chávez in Austin.
Though it is legal -- and not unusual -- for lobbyists to host parties for lawmakers and ply them with food, drinks and gifts, Capitol watchdog groups said the party for Chávez took the practice to a different and more personal level. And, they said, it raised questions about whether Chávez would feel indebted to lobbyists who would later seek her vote.
Claudia Russell, a lobbyist for El Paso County, said she was one of the lobbyists who sponsored Chávez's party in May. She said she put in about $150 after Chávez's staff requested a contribution.
"I don't know if I wanted to," Russell said. "I just kinda felt it was my duty to."
But, she said, the request was not out of the ordinary. Russell said lobbyists often help throw birthday parties for lawmakers, some that are extravagant nighttime affairs with DJs at downtown Austin clubs.
"Honestly, it didn't strike me as unusual," she said.
Chávez walked across the stage at the University of Texas at Austin this spring and received her bachelor's degree in government, an achievement 25 years in the making.
"She made a big darn deal out of it as one of the highlights of her life, so those that contributed are going to be on her good buddies' list," said Tom "Smitty" Smith, director of Public Citizen in Texas.
Dozens of professors, lawmakers, Capitol staffers and even some of Chávez's classmates celebrated her graduation at a reception. The event came complete with a Longhorn ice sculpture, mariachis, a barbecue lunch and cake.
Lobbyists paid $3,529 for the shindig, according to information Chávez provided to the El Paso Times. She declined to identify the lobbyists who sponsored the party.
By law, lobbyists often are required to report their spending on lawmakers to the Texas Ethics Commission. But because the cost of Chávez's party was split among numerous lobbyists and because a number of lawmakers attended the event, no itemized reporting of the expenditures was required.
Chávez also said she spent about $1,600 of her own money, mostly to pay for lodging and transportation costs for her family from El Paso to attend.
She said the lobbyists' generosity would not affect her vote on any issues that might come before her as a lawmaker.
"In 13 years of service, I've made great friends with members of the Legislature, staff and with lobbyists," Chávez said. "Many of them came together to support me, and they said, 'How can we help?' "
The graduation party, she said, was no different from any other lunch, reception or birthday event that lobbyists often host for lawmakers.
For Chávez, though, her graduation was a momentous occasion. She often spoke with lawmakers and reporters about her classes and about how much the accomplishment meant to her. House Speaker Joe Straus filed a resolution in her honor. And in a rare speech on the House dais, Chávez said she hoped to become an example to others who had abandoned higher education in their youth to return to school.
"We were shouting it from the rooftops" she said.
Mike Higgins, a lobbyist for the State Association of Firefighters, would not say how much he contributed for Chávez's party. He said he chipped in because she has been a friend to firefighters.
Higgins said he also admired Chávez's achievement, finishing a bachelor's degree at age 48.
"We have such a long relationship with Norma, I feel like it's something we did as a friend," he said.
The personal nature of Chávez's graduation party, though, creates a larger perception of indebtedness than an expensive lunch or a big birthday party, said Smith with Public Citizen.
Chávez drew a great deal of attention to her graduation during the legislative session, and she invited more than 100 lawmakers, lobbyists and others to her party.
"When lobbyists who are seeking favors from legislators pay for a party for somebody's personal triumph like a graduation, then you're going to get a big debt of gratitude from that legislator," Smith said.
Ethics laws in Texas, he said, should be changed to prohibit lobbyists from buying meals and gifts and subsidizing entertainment for lawmakers.
Andrew Wheat, research director with the watchdog group Texans for Public Justice, said human nature causes people to feel obligated to reciprocate favors, and that is a dangerous situation when it comes to the relationships between powerful lawmakers and lobbyists.
"It might have been far more in the public interest to scale back the size of the party," Wheat said. "People graduate all the time without lobbyists paying for ice sculptures at their graduation parties."
Brandi Grissom may be reached at bgrissom@elpasotimes.com; 512-479-6606.
Graduation party for state Rep. Norma Chavez was paid for
By Brandi GrissomEl Paso Times
July 15, 2009
EL PASO -- Seventeen lobbyists paid more than $3,500 for an elaborate graduation party for state Rep. Norma Chávez in Austin.
Though it is legal -- and not unusual -- for lobbyists to host parties for lawmakers and ply them with food, drinks and gifts, Capitol watchdog groups said the party for Chávez took the practice to a different and more personal level. And, they said, it raised questions about whether Chávez would feel indebted to lobbyists who would later seek her vote.
Claudia Russell, a lobbyist for El Paso County, said she was one of the lobbyists who sponsored Chávez's party in May. She said she put in about $150 after Chávez's staff requested a contribution.
"I don't know if I wanted to," Russell said. "I just kinda felt it was my duty to."
But, she said, the request was not out of the ordinary. Russell said lobbyists often help throw birthday parties for lawmakers, some that are extravagant nighttime affairs with DJs at downtown Austin clubs.
"Honestly, it didn't strike me as unusual," she said.
Chávez walked across the stage at the University of Texas at Austin this spring and received her bachelor's degree in government, an achievement 25 years in the making.
"She made a big darn deal out of it as one of the highlights of her life, so those that contributed are going to be on her good buddies' list," said Tom "Smitty" Smith, director of Public Citizen in Texas.
Dozens of professors, lawmakers, Capitol staffers and even some of Chávez's classmates celebrated her graduation at a reception. The event came complete with a Longhorn ice sculpture, mariachis, a barbecue lunch and cake.
Lobbyists paid $3,529 for the shindig, according to information Chávez provided to the El Paso Times. She declined to identify the lobbyists who sponsored the party.
By law, lobbyists often are required to report their spending on lawmakers to the Texas Ethics Commission. But because the cost of Chávez's party was split among numerous lobbyists and because a number of lawmakers attended the event, no itemized reporting of the expenditures was required.
Chávez also said she spent about $1,600 of her own money, mostly to pay for lodging and transportation costs for her family from El Paso to attend.
She said the lobbyists' generosity would not affect her vote on any issues that might come before her as a lawmaker.
"In 13 years of service, I've made great friends with members of the Legislature, staff and with lobbyists," Chávez said. "Many of them came together to support me, and they said, 'How can we help?' "
The graduation party, she said, was no different from any other lunch, reception or birthday event that lobbyists often host for lawmakers.
For Chávez, though, her graduation was a momentous occasion. She often spoke with lawmakers and reporters about her classes and about how much the accomplishment meant to her. House Speaker Joe Straus filed a resolution in her honor. And in a rare speech on the House dais, Chávez said she hoped to become an example to others who had abandoned higher education in their youth to return to school.
"We were shouting it from the rooftops" she said.
Mike Higgins, a lobbyist for the State Association of Firefighters, would not say how much he contributed for Chávez's party. He said he chipped in because she has been a friend to firefighters.
Higgins said he also admired Chávez's achievement, finishing a bachelor's degree at age 48.
"We have such a long relationship with Norma, I feel like it's something we did as a friend," he said.
The personal nature of Chávez's graduation party, though, creates a larger perception of indebtedness than an expensive lunch or a big birthday party, said Smith with Public Citizen.
Chávez drew a great deal of attention to her graduation during the legislative session, and she invited more than 100 lawmakers, lobbyists and others to her party.
"When lobbyists who are seeking favors from legislators pay for a party for somebody's personal triumph like a graduation, then you're going to get a big debt of gratitude from that legislator," Smith said.
Ethics laws in Texas, he said, should be changed to prohibit lobbyists from buying meals and gifts and subsidizing entertainment for lawmakers.
Andrew Wheat, research director with the watchdog group Texans for Public Justice, said human nature causes people to feel obligated to reciprocate favors, and that is a dangerous situation when it comes to the relationships between powerful lawmakers and lobbyists.
"It might have been far more in the public interest to scale back the size of the party," Wheat said. "People graduate all the time without lobbyists paying for ice sculptures at their graduation parties."
Brandi Grissom may be reached at bgrissom@elpasotimes.com; 512-479-6606.
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