Thursday, November 26, 2009

What happens when the reins of justice are held by someone with a conflict of interest?

As details continue to unfold in the Tim Durham saga, citizens are getting a glimpse into how politics and personal friendships may play into the decision making process of some corporate executives. According to the Indianapolis Business Journal, Marion County Prosecutor Carl Brizzi didn't know whether or not he officially served on the board of Tim Durham's Fair Finance Company or not. If you believe that, I have ocean front property in Arizona to sell.

Surely Brizzi doesn't think the public would believe he didn't know whether or not he served on a board that is now under federal scrutiny. Either he did or he didn't, and the facts reportedly verify that he did. Would Brizzi accept such a lame excuse as a prosecutor? Surely he would demand the facts. Those facts make it clear that Brizzi was an official board member until he decided to resign when the IBJ began an investigation of the company's dealings.

"Brizzi said that Durham told him, 'This stuff is going on. You probably don’t need to be in the middle of all this,'" read a statement from the IBJ story.

That "stuff" reportedly involved questions as to whether or not Fair Finance was solvent enough to repay Ohio investors who had purchased nearly $200 million in investment certificates.

After reading the article, my perceptions are that Brizzi was totally unqualified to serve on this board, so what was the real reason behind his appointment? Since Brizzi has chosen to be evasive with his answers, we're left to speculate.

How likely would it be for Brizzi, a close personal friend and board member of Fair Finance Comany, to go after any allegations of wrong doing against a company for which he served as a board member? I think a snowball would have a better chance in hell before that would happen. Justice would likely turn a blind eye, and since Carl Brizzi is holding the reins of justice in Marion County, Durham would have nothing to worry about if such a situation ever presented itself.

We know that Brizzi brought absolutely nothing to the board table besides his position as friend and prosecutor, so what other reason could it be?

"Brizzi said he agreed to serve on the board because he was interested in learning more about finance from Durham, whom he described as “a buddy,” read a statement from the IBJ article.

How many CEO's appoint random people to serve on boards simply because someone is interesting in learning? That would certainly not be a sound business practice to place a novice in a decision-making position for something of which he knew very little, if anything, about.

"Durham also has been a major campaign contributor to Brizzi, who is in his second term as prosecutor," continued the story. "Campaign finance records show that Durham and his companies have donated more than $200,000 to Brizzi campaigns."

After learning these facts, can we conclude from this that Brizzi's appointment as a board member was more of a political move rather than a learning opportunity?

Integrity seems to be lacking here. A prosecutor should not even consider serving on a board for a finance corporation for obvious reasons. If there's any office that should avoid the smallest appearance of impropriety, it should be that of a prosecutor. Doesn't Carl Brizzi, the Marion County prosecutor, have enough on his plate, or is this why crimes in Marion County go unpunished, because he's too busy with these types of questionable extra-curricular activities?

And is justice blind in Marion County? Are there two sets of standards? One for Brizzi's friends and political allies and another for those with no political connections?

A few pesky FBI agents became flies in the ointment for Brizzi's short stint as a board member of a private corporation that is now under federal scrutiny. So why does it take federal agencies to protect Indiana citizens? Shouldn't local and state law enforcement be involved in going after allegations of white collar crime in our state? Apparently not when the reins of justice are held by someone with an obvious conflict-of-interest.

Attorney General Combats Public Corruption Leaving Many to Wonder Who's Next

This has to send shivers down the spines of white collar criminals in Indiana, leaving many to wonder who's next. The Attorney General is taking proactive measures to go after government corruption. In the past, the former AG claimed to be powerless when it came to white collar crime in Indiana. Attorney General Greg Zoeller is singing a different tune, and it has a very nice ring to it, at least to the common folks in our state.

Earlier this year Zoeller advocated for HB 1514, which brings the AG into the investigation process earlier when the State Board of Accounts discovers money is missing. Apparently, he's wasting no time in getting down to the nitty gritty.

The auditors at the State Board of Accounts are adept at weeding out public corruption. It's about time they get some back-up from people with the power to do something about it. For too long, negative audit reports were placed in filing cabinets away from public scrutiny. It seems those days are over.

If more local prosecutors were to act on these cases, perhaps it would send a wider message to would-be white collar criminals. They not only need to be held civilly liable for misuse of public funds, but they should also face criminal charges for their crimes.

FOR IMMEDIATE RELEASE
November 23, 2009
Attorney General Zoeller files suit against former Chesterfield officials
State seeks to recover more than $259,000 defrauded from town government by employees

INDIANAPOLIS – Today Indiana Attorney General Greg Zoeller filed a lawsuit demanding that five former officials of the town of Chesterfield – including the former clerk-treasurer and former town marshal -- repay more than $259,000 in public funds they allegedly defrauded from the town government. The Attorney General also is seeking temporary restraining orders against the defendants to protect assets from being disposed of or sold.

The lawsuit, filed in Madison County Circuit Court, is part of a stepped-up effort by Zoeller to combat public corruption and misuse of tax dollars by elected officials and government employees.

“The claim that the town’s former top fiscal officer and the town’s former police chief hatched a scheme to defraud the taxpayers who employed them appears to be the ultimate betrayal of the public’s trust,” Zoeller said.

The case stems from an Oct. 26, 2009, certified audit by State Board of Account examiners who found that five individuals, individually or together, allegedly defrauded the town government out of a total $259,626.07 by getting paid for false mileage reimbursement claims, phony automotive-repair and building-repair claims, and for hours never worked during 2007 and 2008.

Named as defendants in the Attorney General’s civil suit seeking recovery of public funds are:
Former town clerk-treasurer and town manager Christopher Parrish. The lawsuit alleges Parrish paid himself $31,535.91 in fictitious travel expenses and approved phony claims and improperly issued reimbursement checks for four other defendants. Parrish resigned from his town positions in January 2009.

Former town marshal James Kimm. The complaint alleges Kimm submitted falsified mileage reimbursement claims to Parrish for destinations to which he didn’t travel and was paid $52,553.06. He also allegedly received $1,700 in petty cash reimbursements from Parrish. The State Board of Accounts audit noted that Kimm’s description for most of the out-of-state travel was to pick up military surplus from the U.S. Defense Reutilization and Marketing Office. When examiners checked with the DRMO, they reportedly found no record of anyone from Chesterfield, including Kimm, obtaining equipment from a DRMO location, the audit said. Kimm resigned as town marshal in January 2009.

Joseph Brown, a former part-time police officer for Chesterfield who is half-brother of Kimm. The lawsuit alleges Brown participated in a scheme with Parrish and Kimm where Brown submitted phony claims for automotive repairs to town-owned vehicles that never were performed. The State Board of Accounts examiners reported that the street address of “Brown’s Automotive” listed on the invoices is a home in a residential neighborhood where there was no indication of commercial automotive work taking place. Brown received 24 checks totaling $115,391.44 between January 2007 and March 2008, the audit found.

Christopher Walters, a former town maintenance superintendent, and his brother James Walters, a former town maintenance employee. The suit alleges the two former employees were part of a scheme with Parrish where they were paid $37,600 for repair work to town government buildings that never occurred, according to the audit. The suit alleges James Walters owes $13,002.88 for hours he was paid but didn’t work and owes $2,850 for tools improperly purchased with town funds. Christopher Walters allegedly was overpaid by $4,992.76 for hours he didn’t work.

'The audit claims this fraud was brazen in its audacity and proportionately large in its scope. The quarter-million-dollar fraud represents a very sizeable portion of the town’s entire operating budget. That’s why we will be moving quickly in pursuing the defendants’ assets in order to protect the taxpayers and restore to the Chesterfield town treasury what was wrongfully taken,” Zoeller said.

The State Board of Accounts audit found that Parrish and the others executed the scheme without the knowledge of the Chesterfield Town Council. Parrish issued “manual” checks the council did not see, the audit found.

The complaint asking the court to order Parrish and the other defendants to return the public funds is a civil suit, not a criminal case. The Attorney General’s office has jurisdiction to file civil cases.

Beyond demanding repayment from the defendants, the lawsuit also seeks payment of the employee-theft insurance the town took out on the employees in 2007 and 2008 and to redeem surety bonds obtained on Parrish and Kimm. The suit seeks $60,000 from Fidelity and Deposit Company of Maryland and another $8,500 from Ohio Casualty Insurance Company.
If State Board of Accounts examiners audit a government office and discover theft, fraud or malfeasance, they refer the certified audit to the Attorney General’s office, which acts as collection agent to recover the missing funds.

Earlier this year, the Indiana General Assembly passed a new state law on public accountability that Zoeller had advocated, House Enrolled Act 1514. It requires public employees who handle money to carry larger bond amounts -- $30,000 – and brings the Attorney General’s office into the investigation process earlier when the State Board of Accounts discovers money is missing.
'The new law will allow us to freeze assets at the first indication public funds are at risk of being stolen, so they can’t be transferred while the audit is being completed,” Zoeller said. The Chesterfield case occurred before the new law took effect July 1.

Wednesday, November 25, 2009

Could FBI raid on Indy business be a warning sign for corrupt politicians in Indiana?

Here's an interesting story on Gary Welsh's blog, Advance Indiana, followed by this one.

The FBI has reportedly taken Indianapolis business tycoon Tim Durham into custody after raiding his offices in Indianapolis and Ohio yesterday. Durham reportedly has close personal ties to Indianapolis Prosecutor Carl Brizzi and has contribted over $150,000 to his campaign fund. Fox 59 News reported last night that they were unable to get a response from Brizzi. They described Durham as a "high flyer in Indianapolis" who "loved to show off his wealth." Here is a photo of Durham at a lavish Halloween party that he threw for his political buddies and friends.

Stories like this one only adds to the speculation that Indiana is becoming known for Chicago-style corruption. And how can citizens have confidence in its prosecutor when he is rubbing elbows with high-flying, show off millionaires? Aren't we known by the company we keep, or in this case the politically-connected?

I suppose we can all be thankful that the Feds are starting to look into allegations of corruption in Indiana, because in the past we certainly haven't been able to count on state officials to do it. We may be starting to get a glimpse into the reasons why.

Here's another interesting read from the Indianapolis Times entitled, Carl Brizzi and the Company He Keeps. After reading this I'm beginning to understand why he didn't have time to respond to a letter I wrote him a few years ago alerting him to corruption. He was too busy fraternizing with Tim Durham. Or then again, maybe his political connections got in the way of his job in that situation too.

Inside the life of Tim Durham (from CNBC):
http://www.cnbc.com/id/25099682?slide=2

UPDATE from Advance Indiana: A criminal defense attorney for Durham, John Tompkins, confirms that Durham was questioned by FBI agents in LA yesterday, but he says he was never taken into custody as suggested by Fox 59 News' report last night.

Wednesday, November 18, 2009

Indy Star uncovers dirty little lobbying secrets at the statehouse

I hope Indiana legislators are realizing that citizens are no longer going to put up with the lack of ethics at the statehouse. Members from both parties are guilty of allowing themselves to be influenced by lobbyist power brokers who put special interests above the interests of the people to the point that it's become a cancer in our state. In some cases, out-of-state interests have been promoted at the expense of Indiana businesses and taxpayers.

I was thrilled to see that the Indianapolis Star is making ethics reform their pet project during this legislative political season. Politicians are running for cover as the newspaper-watchdog team of journalists are now reporting the perky little details that were once well-kept dirty little secrets.

Governor Mitch Daniels knows there is a real problem with influence peddling at the statehouse. Rex Early quoted Daniels in his book, It's a Mighty Thin Pancake, about the subject.

"When Governor Mitch Daniels was first deciding whether to run for governor, we had a meeting. During that meeting, Mitch made mention of how the big law firms have an inordinate amount of influence with both the state and city government. I agreed with him," Early wrote. "This is still true today; maybe more so."

There's no maybe about it, Rex. I saw this ugly monster up-close-and-personal last year when Tremco-funded lawyers attempted to derail a bill aimed at eliminating perceived loopholes in the public works laws. The laws were being twisted, which resulted in taxpayers being mega-gouged for millions of dollars worth of school roofing projects.

Indiana businesses were complaining about being unfairly and illegally shut out of the competition for school roofing projects while taxpayers were screaming about being stuck with bloated bills for overpriced roof jobs.

It was a no-brainer. Simply put, Senator Weatherwax was attempting to prevent schools and an Ohio-based company from circumventing our state's bidding laws. Hucksters from the educational industry were getting "money back" for every school roof job sold while taxpayers were getting the shaft throughout the state.

After the first reading of Weatherwax's bill, there appeared to be unanimous bi-partisan support. The former Chairman of the Education Committee announced there would be no further testimony at the second hearing. That was before the Ohio-based roofing corporation sent in lobbyists to thwart the proposed legislation.

Lobbyists were successful in derailing Weatherwax's bill. Taxpayers and Indiana business interests took a back seat to an Ohio-based multi-million dollar coporation with political connections. Tremco apparently hired the right law firms. Governor Daniels knows about influence peddling too.

Here's what Rex Early said about that subject in his book.

"When Early first became involved in politics, he says the 'power and influence was vested in the party'. Today, he says that law firms have become "more influential and powerful". Early refers to the influence peddling as "Mickey Mantle" politics. He says that the lawyers can "hit from the right or the left side," referring to the fact that they have influence with both Democrats and Republicans."They can switch-hit faster than a cat can scratch its butt," says Early. "Except for the inconvenience, they probably don't care whether the Republicans or the Democrats win."

These influence peddlers would have had their way, too, had it not been for the grit and determination of an ordinary housewife coupled with the help of statesmen like Tom Weatherwax, Ron Alting, David Long, Phil Boots, and a few others.

It's too bad that there is a need at all for special legislation designed to legislate honesty and integrity.

I never feel safe when the legislature re-convenes each year. I'm sure I'll be spending dozens of hours at the statehouse, honing my skills as a citizen watchdog, and making sure the no-bid scheme does not rear its ugly head again. Interested parties from all around the country have been watching this situation very closely. Many are gaining a full understanding of how the political scheme works, and others are attempting to dismantle it in their own states as well. This blog has become a valuable resource to many.

I'd much rather be baking cookies with my grandchildren, but there are too many legislators who need to be reminded that they were elected to serve the people, and not to be influenced by the highest bidder.

Friday, November 13, 2009

Website Devoted to Teacher Crimes

Wow, it's gotten so bad that there are now websites dedicated to alerting the public about sex crimes committed by teachers. Indiana has its own page.

Check it out here. I'm making it a permanent link to the left.

Veteran West Lafayette school teacher face drug charges

James R. Page, 61, a Klondike Middle School school teacher was charged today with two counts of possessing and growing marijuana. Page was also arrested on suspicion of dealing marijuana within 1,000 feet of a day care center in addition to cultivating the drug. According to reports, Page also admitted to using marijuana.

Page, a 39-year veteran, who was reportedly once named Teacher of the Year, resigned shortly after his arrest.

This particular moral failure of a school teacher is especially painful since I know one of Page's former students. The young girl was devastated to learn that her beloved teacher had allegedly committed such a crime.

"Teachers tell us not to use drugs and then they do it themselves," said the disgusted and confused student.

There was a time in our country when teachers were expected to be above reproach. In fact, the standards for teachers were set so high that in early days they were forbidden to marry. Parents expected teachers to conduct their lives so as to be exemplary examples to their young charges.

Another day....another poor example..another wrong message...another double standard. Is it any wonder that homeschooling is on the rise and enrollment at private schools is up?

Thursday, November 12, 2009

Gay Activists Target Purdue Professor/Christian Blogger

Update: Looks like my predictions are coming true. This story is starting to circulate. It's been published by the Indianapolis Star, Chicago Tribune, and the USA Today.

What part of the First Amendment do a handful of gay activists at Purdue University not understand? According to a report in today's Journal and Courier, gay activists are demanding that Christian blogger and professor Bert Chapman be fired simply because they don't agree with an opinion he expressed on a personal blog that he calls the Conservative Librarian.

Chapman, a 15-year professor at Purdue, authored a blog post entitled, "An Economic Case Against Homosexuality." Chapman believes money invested on AIDS would be better spent on other public health initiatives, such as cancer or heart disease. He says the current health care debate needs to address the economic costs of homosexual behavior.

Whether or not one agrees with Chapman's viewpoints is not the issue. Chapman has a Constitutional right to express his ideas. I was comforted by the fact that at least one member of the gay community spoke out against the actions of the narrow-minded campus thought police.

"We must have a free trade in ideas in order for democracy to work," said Yvonne Pitts, an assistant professor of history who specializes in constitutional history. Pitts, a lesbian says she supports Chapman's right to express his views, even if she doesn't agree with them.

"I would be disturbed if he lost his job because I would fear that my job could be in jeopardy for my activism," she said. "It is really good for students to be having this debate. But you can't call for his job. And I totally disagree with everything he wrote."

As far as Purdue's position on the matter, spokeswoman Jeanne Norberg said that Chapman was "acting within university policy by making it clear his viewpoints do not necessarily reflect those of the university."

"There are many things on the Internet that would be offensive to many but that are protected by the First Amendment," said Norberg.

Apparently, most J&C readers agree with Norberg. Judging from the comments posted at the end of the story, readers are outraged that a group of people would target someone's job for doing nothing more than expressing an opinion on his own time. How would these radicals feel if we took down the names of those who signed the petitions, tracked down any public opinion they shared, and then ask their future employers to fire them because we don't agree with what they've said? Maybe then they might actually get the fact that the Constitution works for everyone.

It always amazes me that those who demand tolerance from others are the least able to demonstrate it themselves.

I always look for silver linings in stories such as this one. The irony of it all is that these errant gay activisits did more harm to their cause by popularizing Bert Chapman's blog. Now, his viewpoint will likely be read around the world as I suspect this story will eventually get national coverage. I'll do my part for Bert. I've added his blog to my blogroll.