Judicial Watch Uncovers USDA Records Sponsoring U.S. Food Stamp Program for Illegal Aliens

(Washington, DC) – Judicial Watch today released documents detailing how the U.S. Department of Agriculture (USDA) is working with the Mexican government to promote participation by illegal aliens in the U.S. food stamp program.

The promotion of the food stamp program, now known as “SNAP” (Supplemental Nutrition Assistance Program), includes a Spanish-language flyer provided to the Mexican Embassy by the USDA with a statement advising Mexicans in the U.S. that they do not need to declare their immigration status in order to receive financial assistance.  Emphasized in bold and underlined, the statement reads, “You need not divulge information regarding your immigration status in seeking this benefit for your children.”

The documents came in response to a Freedom of Information Act (FOIA) request made to USDA on July 20, 2012.  The FOIA request sought: “Any and all records of communication relating to the Supplemental Nutrition Assistance Program (SNAP) to Mexican Americans, Mexican nationals, and migrant communities, including but not limited to, communications with the Mexican government.”

The documents obtained by Judicial Watch show that USDA officials are working closely with their counterparts at the Mexican Embassy to widely broaden the SNAP program in the Mexican immigrant community, with no effort to restrict aid to, identify, or apprehend illegal immigrants who may be on the food stamp rolls. In an email to Borjon Lopez-Coterilla and Jose Vincente of the Mexican Embassy, dated January 26, 2012, Yibo Wood of the USDA Food and Nutrition Service (FNS) sympathized with the plight of illegal aliens applying for food stamps, saying, “FNS understands that mixed status households may be particularly vulnerable.  Many of these households contain a non-citizen parent and a citizen child.”

The email from Wood to Lopez-Coterilla and Vincente came in response to a request from the Mexican Embassy that the USDA FNS step in to prevent the state of Kansas from changing its food stamp policy to restrict the amount of financial assistance provided to illegal aliens.  In a January 22, 2012, article, the Kansas City Star had revealed that the state would no longer include illegal aliens in its calculations of the amount of assistance to be provided low-income Hispanic families in order to prevent discrimination against legal recipients.

The documents, obtained by Judicial Watch in August 2012, include the following:

  • March 30, 2012 – The USDA seeks approval of the Mexican Embassy in drafting a letter addressed to consulates throughout the United States designed to encourage Mexican embassy staffers to enroll in a webinar learn how to promote increased enrollment among “the needy families that the consulates serve.”
  • August 1, 2011 – The USDA FNS initiates contact with the Mexican Embassy in New York to implement programs already underway in DC and Philadelphia for maximizing participation among Mexican citizens. The Mexican Embassy responds that the Consul General is eager to strengthen his ties to the USDA, with specific interest in promoting the food stamp program.
  • February 25, 2011 – The USDA and the Mexican Consulate exchange ideas about getting the First Ladies of Mexico and United States to visit a school for purposes of creating a photo opportunity that would promote free school lunches for low-income students in a predominantly Hispanic school. Though a notation in the margin of the email claims that the photo op never took place, UPI reported that it actually did.
  • March 3, 2010 – A flyer advertises a webinar to teach Hispanic-focused nonprofits how to get reimbursed by the USDA for serving free lunch over the summer. The course, funded by American taxpayers, is advertised as being “free for all participants.”
  • February 9 , 2010 – USDA informs the Mexican Embassy that, based on an agreement reached between the State Department and the Immigration & Naturalization Service (now ICE), the Women, Infants & Children (WIC) food voucher program does not violate immigration laws prohibiting immigrants from becoming a “public charge.”

As far back as 2006, in its Corruption Chronicles blog, Judicial Watch revealed that the USDA was spending taxpayer money to run Spanish-language television ads encouraging illegal immigrants to apply for government-financed food stamps. The Mexican Consul in Santa Ana, CA, at the time even starred in some of the U.S. Government-financed television commercials, which explained the program and provided a phone number to apply. In the widely viewed commercial the Consul assured that receiving food stamps “won’t affect your immigration status.”

In 2012, Judicial Watch reported that in a letter to USDA Secretary Tom Vilsack, Alabama Senator Jeff Sessions questioned the Obama administration’s partnership with Mexican consulates to encourage foreign nationals, migrant workers and non-citizen immigrants to apply for food stamps and other USDA administered welfare benefits. Sessions wrote, “It defies rational thinking,” Sessions wrote, “for the United States – now dangerously $16 trillion in debt – to partner with foreign governments to help us place more foreign nationals on American welfare and it is contrary to good immigration policy in the United States.”

“The revelation that the USDA is actively working with the Mexican government to promote food stamps for illegal aliens should have a direct impact on the fate of the immigration bill now being debated in Congress,” said Judicial Watch President Tom Fitton. “These disclosures further confirm the fact that the Obama administration cannot be trusted to protect our borders or enforce our immigration laws. And the coordination with a foreign government to attack the policies of an American state is contemptible.”

RELATED COLUMNS: 

Truth about welfare, food stamps, Obamacare buried in 2013 immigration bill

Judge says no to DHS ruling over immigration by executive order

Southern Poverty Law Center Exposed!

Joel Gehrke from the Washington Examiner reports:

Family Research Council (FRC) officials released [the below] video of federal investigators questioning convicted domestic terrorist Floyd Lee Corkins II, who explained that he attacked the group’s headquarters because the Southern Poverty Law Center (SPLC) identified them as a “hate group” due to their traditional marriage views.

“Southern Poverty Law lists anti-gay groups,” Corkins tells interrogators in the video, which FRC obtained from the FBI. “I found them online, did a little research, went to the website, stuff like that.”

The Washington Examiner’s Paul Bedard reported that Corkins, who pleaded guilty to terrorism charges, said in court that he hoped to “kill as many as possible and smear the Chick-Fil-A sandwiches in victims’ faces, and kill the guard.” As Bedard explained, “the shooting occurred after an executive with Chick-Fil-A announced his support for traditional marriage, angering same-sex marriage proponents.”

Robert Spencer from Jihad Watch states, “The SPLC, the well-heeled propaganda machine that smears conservatives for cash, is an integral part of the ongoing Leftist effort to demonize and destroy legitimate conservative voices — like our American Freedom Defense Initiative, which they also classify as a “hate group” — by lumping them in with the likes of the KKK. The SPLC turns a blind eye to the real hate that comes from the Left and Islamic supremacists, and offers with its hate group listings not only an incitement to violence, but a handy tool that lazy Leftist mainstream media journalists use to try to intimidate people away from supporting our message of human rights. The SPLC richly deserves its place on AFDI’s Threats to Freedom Index.”

Tom Trento, well known SE Florida radio talk show host, did a five part series on the SPLC. Trento states, “The TrentoVision Team launches an investigation into the so-called, Southern “Poverty” Law Center to find out why the Obama Administration works so closely with this “filthy rich” front group for the radical left! Our special guest is Tony Perkins, President of the prestigious Family Research Council. August 2012, Tony was the target of a radical homosexual activist who wanted to kill him and 14 others at FRC. Throughout this five-part series we will look at the finances, pro-gay agenda, pro-Islamic jihad agenda and the all around anti-American activities of the SPLC.”

Below is part one with special guest Tony Perkins, Executive Director of the Family Research Council, of a five part series on the SPLC:

Watch the other four parts of the series:

Monday April 22 – SPLC overview, with Tony Perkins, President, Family Research Council

http://www.youtube.com/watch?v=PI-Z1Y4G88Y

Tuesday, April 23 – Peter Sprigg, Homosexual Activism at the SPLC, Family Research Council

http://www.youtube.com/watch?v=8_gHRA_0EwU

Wednesday April 24 – Gen. General Boykin, SPLC & the Muslim Brotherhood, Family Research Council

http://www.youtube.com/watch?v=L6eI5kC6Y8E

Thursday April 25 – Charlotte Allen – SPLC finances – The Weekly Standard

http://www.youtube.com/watch?v=eniTNIVlkTo

Friday April 26 – Ken Klukowski, FRC and Andrea Lafferty, Traditional Values Coalition, TOPIC?

http://www.youtube.com/watch?v=Q9iOrvwzzqk

Florida legislature passes ethics and campaign finance reform bills

Dan Krassner, executive director of the independent government watchdog group Integrity Florida issued the below statement on the passage of historic ethics reform and campaign finance reform bills by the Florida Legislature:

“Lawmakers are beginning the process of cleaning up the government and restoring trust with Floridians. Senate President Don Gaetz and House Speaker Will Weatherford promised sweeping ethics and campaign finance reform and they have delivered. After a 36-year drought, Florida lawmakers should be commended for advancing good government reforms in our state Capitol. Integrity Florida is grateful to see most of our research recommendations included in the ethics and campaign finance legislation that has been passed. While there is still more work to do to make ethics laws stronger and to fix a broken campaign finance system, Florida is finally moving in the right direction on these issues.”

Integrity Florida wishes to thank Phil Claypool, the retried executive director of the Florida Commission on Ethics for his contributions to our research and expert legal analysis throughout the legislative process. We greatly appreciate our ethics reform coalition partners, including Progress Florida, The Tea Party Network and Common Cause Florida for their great work to improve the ethics reform bill. Former State Senator Paula Dockery paved the wave for ethics reform to be realized by advocating for the issue for many years and we are honored for her guidance and contributions to the cause,” stated Krassner.

Highlights of the ethics reform legislation (SB 2 and SB 4):

  • The public would have four new ways to start ethics complaints through U.S. Attorneys, State Attorneys, the Florida Department of Law Enforcement (FDLE) and the Governor’s Office. Those four entities could refer credible complaints to the Florida Commission on Ethics. While not the full self-initiation of investigations that the ethics commission should have, this process is a good step to fight corruption and reduce frivolous complaints since these agencies would provide an additional vetting process for higher quality complaints to reach the ethics commission. Integrity Florida encourages U.S. Attorneys, State Attorneys, FDLE and the Governor to create “report corruption hotlines” via phone, web and email to collect anonymous tips from the public to address public corruption.
  • Financial disclosure forms will be posted online in a searchable database for the public to access.
  • The Florida Commission on Ethics will begin moving towards an electronic filing system for financial disclosure to make the process smoother for filers and to provide better quality information for the public to access in an easier to read format.
  • More ethics training for public officials will be required.
  • Fine enforcement will be enhanced by allowing the ethics commission to garnish wages of officials owing fines to the commission and it extends the collection period from five to twenty years.
  • Voting conflict standards and disclosures have been strengthened.
  • Expands ethics code restrictions on gifts from vendors to state officials.
  • Strengthens revolving door rules to limit legislators from lobbying for two years after they leave office.
  • Creates new restrictions to prohibit officials from obtaining crony jobs based on their public office.

Highlights of the campaign finance legislation (HB 569):  

  • Raises contribution limits to $3,000 for statewide candidates and $1,000 for legislative and local candidates.
  • Requires 24-hour disclosure of contributions and expenditures in the final days of state-level campaigns and a more rapid filing schedule for campaign reports year-round for candidates and committees.
  • Streamlines independent committees by eliminating committees of continuous existence.
  • Directs the Florida Division of Elections towards creation of an enhanced statewide campaign finance database. 

Related Integrity Florida research:

Corruption Risk Report: Florida Ethics Laws
June 6, 2012

Corruption Risk Report: Financial Disclosure
July 30, 2012

Florida’s Broken Campaign Finance System – Integrity Florida Report to the Florida House of Representatives Ethics & Elections Subcommittee
January 16, 2013

Florida doctor loses license in botched abortion

Esther Rachwal in an email to WDW states, “Here is the story of a Florida doctor that loses his license over a botched abortion. Ironically people are led to believe that abortion is safe and legal, but there have been dozens of women who have either died or developed severe medical problems from so called “legal” abortions. This information is rarely reported.”

“Even now with the Gosnell trial going on 5 weeks, with gruesome details, there is very little reporting. Yet in today’s paper (Monday), a Wildlife Sanctuary of NW Florida held a baby shower for young animals, as reported in the Pensacola News Journal. About 700 visitors brought various things and food donations to help care for the animals. And on April 7th, a large article reported on the abuses of farm animals which were video taped by animal rights activists. These tapes drew swift response from Federal prosecutors in Tennessee. Local authorities in Wyoming charged farm employees with cruelty to animals. So, can you imagine how media would have covered this Gosnell story if it were animals beheaded, and their spinal cords severed while alive?” notes Rachwal.

Cheryl Sullenger | Tallahassee, FL | LifeNews.com | 4/22/13 3:11 PM

The Florida Board of Medicine took action to suspend the medical license of late-term abortionist James Scott Pendergraft, IV on Friday after he failed to pay the board fines from a previous disciplinary action that totaled over $120,000.

The settlement agreement reached between the board and Pendergraft orders that his medical license “shall be indefinitely suspended until such time as [Pendergraft] complies” with the order to pay his fines.

This is the fifth time that Pendergraft’s medical license has been suspended by the Florida Board of Medicine. He continues to operate five abortion clinics in Florida, primarily in the Orlando area.

The fines resulted from a 2010 case where Pendergraft was heavily fined and placed on suspension related to a 2006 botched elective 19-week abortion.

Patient S.B went to Pendergraft for the second trimester abortion on Feb. 3, 2006. He prescribed doses of Cytotec, a drug that is known to cause severe and unpredictable uterine contractions and sent her home for three days to take the medication on her own. Pendergraft did not have a valid DEA number at the time.

When S.B. returned to the clinic, he further illegally administered doses of Cytotec, Demerol, and Phenergan. He attempted the abortion before the patient was adequately dilated, lacerating her cervix and sending her to the hospital where she underwent an emergency hysterectomy.

At the hospital, staff delivered the remains of S.B.’s baby and found that it was missing a lower limb. Efforts were made to locate the limb in the abdominal cavity to no avail. There were no indications on the patient’s chart. Later, it was discovered that the limb had been removed at the clinic. This lack of documentation caused issues in providing the patient with proper emergency care.

Pendergraft was suspended and ordered to pay fines in excess of $122,000. Pendergraft failed to pay, resulting in another disciplinary case attempting to seek payment. Finally, Friday’s action suspended his license until further notice.

Pendergraft has a long history of abortion abuses. An Operation Rescue undercover investigation discovered that he was working illegally in Maryland with another abortionist Harold O. Alexander, to offer late-term abortions while his license was under suspension in Florida and filed complaints. Alexander was later disciplined for destroying patient records related to his business with Pendergraft, closing down Pendergraft’s Maryland operation.

In 2011, Pendergraft was hit with a whopping civil medical malpractice judgment of $36,737,660.16 in compensatory and punitive damages in a case involving a botched 20 week abortion that resulted in the live birth of a child physically damaged by Pendergraft’s incompetent abortion process amid what was described as “third world conditions” with virtually no counseling.

Kermit Gosnell

“Pendergraft is a prime example of how an abortionist operating outside the law in a manner that is reminiscent of the Kermit Gosnell murder case. He is proof that Gosnell is not an outlier, but is a snapshot of degenerate nature of the abortion cartel in America today,” said Troy Newman, President of Operation Rescue. “Pendergraft belongs in prison just as much as Kermit Gosnell, but the reticence of the Board to revoke his license means he will be back to wrecking more havoc on women. People wonder how Gosnell continues to operate for so long, but the Pendergraft case explains it. Oversight agencies are just too slow to revoke abortion offenders.”

More about Pendergraft’s sordid background can be found at AbortionDocs.org.

LifeNews.com Note: Cheryl Sullenger is a leader of Operation Rescue, a Kansas-based pro-life that monitors abortion practitioners and exposes their illegal and unethical practices. The group is known for serving as a watchdog of Planned Parenthood and other abortion businesses.

Pinellas County politicians wasting money defending themselves in lawsuit to limit their terms

Philip Blumel from Florida Term Limits Blog reports:

May 2nd is approaching and four Pinellas County commissioners are worried. In December, a circuit court judge refused to dismiss the suit against them for violating their legal term limits. Now they face a judge again on May 2 in the final hearing of the case.

In 1996, 73% of Pinellas voters passed 8-year term limits but these renegade commissioners refused to insert the term limits amendment language into the charter as required by law. Then when term limits went into effect 8 years later, they refused to step down.  After all, the language isn’t in the charter!

Citizens were outraged and, after friendly court decisions around the state including a unanimous Florida Supreme Court decision that term limits are constitutional, they filed suit. The three plaintiffs on the people’s side represent diverse political, ethnic, professional and geographical faces of Pinellas County. This is appropriate as term limits are not a Republican versus Democrat issue but one of the people versus unchecked political power.

Shortly after the adverse decision in December, the commissioners doubled their legal team adding four additional lawyers. Yes, that’s right, they spending an enormous amount of the people’s money to fight the clearly expressed will of the people. And why? To directly benefit themselves.

In addition to lawyering up, commissioner Ken Welch publicly declared in February that he is seeking another position in local government and may not serve his full term. One of the reasons, he said, is that the judge may decide he cannot serve his full term. The plaintiffs hope part of the reason also is that he knows resigning is the right thing to do. Fellow scofflaws Karen Seel, John Morroni and Susan Latvala should follow Welch’s lead.

Citizens may attend the hearing at 1:30 p.m. on Thursday, May 2nd at the Pinellas County Courthouse, 315 Court Street, Courtroom C, Clearwater.For more detail on the case, go here.

Of Florida’s 20 charter, or “home rule” counties, 12 have term limits. Miami-Dade voters just approved 8-year limits last November. In all but one of the dozen, the popular term limits laws are respected and enforced. It is hoped that on May 2 the citizens will triumph and a decade of political corruption in this beautiful county will be swept away.

(Pictured, the three plaintiffs Maria Scruggs, H. Patrick Wheeler and Beverley Billiris.)

Illegal aliens receive $Billions Yearly via IRS Loophole

As part of National Tax Burden Month WDW –  Florida presents this column with videos of well known and documented tax fraud.

NBC Eyewitness News 13 in Indiana reports on a massive IRS tax loophole which provides over $4 billion per year in tax credits to millions of illegal aliens. In many cases recipients of American taxpayers’ misused monies have never set foot in the United States.

Watch this exposé put together by News 13 investigative reporter Bob Segall. He spent three months looking into this tax loophole:

Indiana is approximately 1700 miles northeast of the Mexican border.

A device known as the Additional Child Tax Credit is being used to pay for children living in Mexico — who have never lived here. One illegal admitted through an interpreter that his address is being used to file tax returns for numerous children, including multiple nieces and nephews. “If the opportunity is there and they give it [to him] why not take advantage of it?” he asked in Spanish. As a stunning example, thousands in tax credits have been awarded to an illegal alien who claimed 20 children live in a single trailer, that actually housed just one little girl.

“Our tax code should not reward those who enter the country illegally,” said Rep. Vern Buchanan (FL-13). “This is unacceptable, which is why last year I voted to immediately end the abuse of the Child Tax Credit by requiring those filing a claim to provide a Social Security number – a requirement that would save taxpayers $10 billion over the next decade.”

The IRS is aware of the magnitude of this fraud yet has done nothing to rectify it. In fact, this is the IRS website giving ten tips on how to apply. The application forms are easily downloadable.

J. Russell George, Treasury Inspector General for Tax Administration says report after report sent from his office has been ignored by the IRS. 

Watch the below video as the Honorable J. Russell George, Inspector General, Treasury Inspector General for Tax Administration, delivers his opening statement at an oversight hearing on Administration of the First-Time Homebuyer Tax Credit. October 22, 2009.

Florida Senator Abruzzo (D-District 25) accused of cronyism

Senator Joseph Abruzzo, Democrat – Senate District 25.

Daniel B. Krassner, Executive Director Integrity Florida in a letter to Florida Senator Joseph Abruzzo, Democrat – Senate District 25, states, “We understand that your request for the review of Palm Beach County’s Ethics Commission came less than a week after your legislative assistant, Philip Massa, failed to get the Ethics Commission’s executive director job.  Your financial disclosures indicate that you work for a law firm that represents the City of Boca Raton as a client, an entity under the jurisdiction of the Palm Beach County Ethics Commission.”

Cronyism is defined as, “Favoritism shown to old friends without regard for their qualifications, as in political appointments to office.”

Krassner’s letter ends with, “We respectfully request that you petition President Gaetz to withdraw his directive for an OPPAGA review of the Palm Beach County Ethics Commission, which would likely save Florida taxpayers thousands of dollars and increase public trust.”

According to Krassner, “An OPPAGA review of the Palm Beach County Commission on Ethics, which was created in May 2010, would be premature for such a new entity and a massive waste of taxpayer resources. As you know, OPPAGA projects often take between 1500-2000 hours of staff time at an average rate of $75 per staff hour plus expenses for travel and other needs. An OPPAGA review of such a small entity seems more than overkill.”

“In fiscal year 2011-2012, the Palm Beach County Commission on Ethics expended just eighty-eight percent of budgeted expenditures, a savings of four percentage points over projected savings, a savings of approximately $70,000 to taxpayers. In 2011, the National Association of Counties presented its Achievement Award to Palm Beach County for its sweeping ethics reform measures. With just five full-time staff and a budget of approximately $500,000, the Palm Beach County Commission on Ethics has delivered significant results and earned a reputation for honesty, integrity and character,” noted Krassner.

On November 29, 2012, Florida State University’s LeRoy Collins Institute (LCI) and Integrity Florida released the latest Tough Choices report that analyzes Florida’s local governments’ ethics reforms and policies. While Florida’s statewide ethics laws have been essentially frozen in time since Governor Reubin O’D. Askew championed reform in the 1970s, the report finds ethics reforms at the county and city level are alive and growing.

According to U.S. Department of Justice data, from 2000 – 2010, Florida led the nation in federal public corruption convictions.

While some of these convictions have been of state officials, many of these corruption scandals have involved local government officials. Florida Counties Bridge the Ethics Policy Gap analyzed survey results on ethical programs and reforms in 45 of Florida’s 67 counties focusing on the areas of ethics policy, ethics enforcement, lobbying, campaign financing and procurement.

Read Integrity Florida’s County Ethics Report “Tough Choices” here.

Rubio: States need a refund

Congress should authorize them to return federal spending to pay down the debt.

While American families everywhere are cutting costs, Washington still can’t seem to rein in its reckless spending, leaving our national debt skyrocketing to the detriment of future generations. This neglect of our fiscal health is unacceptable. It is imperative we begin paying down the debt — starting yesterday.

Excessive and ineffective spending is an important cause of our growing debt, yet states have little say in what happens to federal money if they choose not to spend it. They essentially have two choices: use it, or lose it to someone else. There is no option to stop those funds from being spent elsewhere, which is why I am reintroducing the Returned Exclusively for Unpaid National Debt, or “REFUND,” Act next week in the Senate.

The REFUND Act will allow states to identify and return unwanted federal funds to the federal treasury for the specific purpose of paying down the national debt. This prevents the Treasury from continuing its current practice of spending the returned funds elsewhere, which provides no real incentive for states to turn away federal funds.

The legislation would also end today’s “use it or lose it” mentality, which encourages states to take debt-financed money from Washington. For example, two years ago, the state of Florida was allocated $2.4 billion in federal stimulus funds for a high-speed-railway project, but turned down the money because it would have put the state on the hook for more spending in the long run. The money was then offered under a new bidding process for other states to fund their own high-speed-rail programs. Under the REFUND Act, Florida would have been able to use that money toward paying down our $16 trillion debt.

The national debt is a crushing burden to our children and grandchildren; many state officials and leaders realize this and want to make responsible decisions to help alleviate that burden. These fiscally responsible states should be allowed to divert Washington’s spending spree toward debt reduction and do their part to end the practice of spending money we don’t have.

Read more at National Review Online.

VIDEO: Buchanan Tax Reform panel raises disturbing future without major changes

Congressman Vern Buchanan (FL-13) hosted a panel on Tax Reform on March 29, 2013. Buchanan is the only member of the powerful US House of Representatives Ways and Means Committee from Florida. The panel members were:

  • Neal Boortz is a former nationally syndicated radio talk show host who co-wrote the Fair Tax Book with former Congressman John Linder. The book calls for the replacement of the income tax with a consumption tax.
  • Dan Mitchell is a senior fellow with the Cato Institute, which is a public policy research organization dedicated to the principals of individual liberty, limited government, free markets, and peace. Mitchell is an expert on tax reform and a strong advocate of a flat tax.
  • National Federation of Independent Business (NFIB)/Florida Chairman Jerry Pierce. The NFIB is is the leading small business association representing small and independent businesses. The NFIB supports modifications to provide tax relief and certainty to small businesses.
  • Susan Nilon is the general manager of WSRQ radio, a radio show host and writer who advocates a progressive tax that taxes wealthy individuals at a higher rate than low income individuals.

The forum was moderated by WWSB/ABC 7 news anchor John McQuiston.

Watch the METV video of the entire panel discussion:

Every panel member opened by saying the current income tax system is broken. Susan Nilon asked if there was the political will to actually fix it. Each panel member addressed their solution to fix the system, ranging from repeal of the Sixteenth Amendment (which created the progressive income tax) to returning to a simpler form of taxation.

Of note was all agreed the current progressive tax system has failed. Boortz pointed out that progressive taxation was first outlined in the Communist Manifesto. Boortz, speaking for the Fair Tax, said that repeal was the best solution long term. Both CATO’s Dan Mitchell and NFIB’s Jerry Pierce agreed. Pierce noted that this was not the official NFIB position but his alone.

John McQuiston, the moderator, asked if changing the current system in any meaningful was was politically possible. Mitchell noted that during the 1990s Congress passed meaningful welfare reform and likened the tax reform challenge as doable. Congressman Buchanan indicated that from his meetings with President Obama and others that there is a six month window of opportunity to make meaningful changes.

The Fair Tax was most discussed by panel members. Mitchell noted that even though he was on the panel to represent the flat tax he had debated in favor of the Fair Tax. Nolan was concerned that the low income taxpayers would be negatively impacted. Boortz pointed out that under the Fair Tax, those making minimum wage would see a negative 23% tax while those making $31,000 would have a zero tax bill.

The issue of tax loop holes for corporations came up  repeatedly. Corporations like GE have lobbyists who are paid to insure they pay no taxes and these lobbyists have been successful. Boortz pointed out that corporations pay no taxes. Rather individual stockholders and the consumers bear the burden of the taxes levied on the products and services provided by corporations.

The question of charitable deductions came up. Mitchell pointed out that all academic studies of charitable giving show that two things drive individuals to give – wealth and disposable income. For example the bill signed by President Obama in January limits itemized deductions for those making over $450,000 to 3%. The closing of loopholes already includes limiting deductions for high wealth individuals.

During the presentation the audience showed its appreciation for the panel and Rep. Buchanan by their applause. Boortz pointed out this type of event is critical if tax reform is to take place. Without the power of the people nothing will happen. Boortz pointed out that with the implementation of the Fair Tax and elimination of the progressive income tax, “it will be the greatest transfer of power from government to the people since the American revolution.”

At the end of the discussion both Rep. Buchanan and Jerry Pierce warned that the United States faces a financial meltdown in the next 3 to 8 years. Mitchell noted that by 2040 Greece spending will be at 300% of their GDP, while America’s spending will be at 450% of GDP. The disaster is eminent noted Rep. Buchanan but he believe a bi-partisan agreement is possible within the next six months.

If none is reached then America’s fiscal downfall is set. The question is not if, but when.

IG Report: Enterprise Florida’s corporate welfare process a mess

Governor Rick Scott today released the Florida Chief Inspector General’s report on Digital Domain. Digital Domain received $20 million in taxpayer funding to “create jobs” in the state. According to the Executive Summary:

The process designed to award economic development incentive funding under the Quick Action Closing Fund (QACF) statute did not result in a recommendation by Enterprise Florida, Inc. (EFI) to the Office of Tourism, Trade, and Economic Development (OTTED). Concurrent to that statutory process, Digital Domain sought alternative means to obtain funding. In 2009, the funds for QACF that were unexpended in Fiscal Year (FY) 2008-2009, were reverted by the Legislature, appropriated within the same fiscal year to OTTIED and were awarded to recipients including Digital Domain, without the requirement to follow the statutory process for awarding QACF awards.

Although a statutorily prescribed process in place for determining Digital Domain’s eligibility for a QACF award did not result in a recommendation to fund Digital Domain an award of $20 million to Digital Domain still occurred. [My emphasis]

“There needs to be more oversight and accountability of the public’s money,” said Dan Krassner, executive director of the independent government watchdog group Integrity Florida.

Krassner states, “The report makes it clear that Enterprise Florida offered Digital Domain more than $6 million from the closing fund. Unfortunately, Enterprise Florida still appears to be utilizing an insufficient vetting process. Enterprise Florida made several incentive deals with companies just in the last year that have gone bankrupt, including one headed by a convicted cocaine trafficker.”

Companies should not be allowed to circumvent the process but they continue to do so.

“Gov. Scott guaranteed 1,000 new jobs from Northrop Grumman in his State of the State speech. After the speech, Enterprise Florida sat down with the company to negotiate how much money the company wants. How could taxpayers possibly get a good deal with that flawed process? Integrity Florida is encouraged to see bipartisan efforts by lawmakers to increase accountability and transparency of incentive deals,” notes Krassner.

The IG report states, “Testimony supported that although improvements have been made to statutes and processes since 2009, an award similar to the one to Digital Domain could happen again today if the Legislature appropriates funds and gives the Executive Branch the discretion to expend those funds.”  [My emphasis]

The Chief Inspector General made the following recommendations:

Therefore, We recommend that the DEO conduct a formal evaluation of the current statutory provisions to ensure the incentive authority, waiver authority and time frames for evaluation and decision making adequately protect the state’s interests and determine if recommendations for enhancements should be made to the Legislature.

We also recommend that DEO and EFI conduct a review of the economic development incentive processes so that recommendations for improvement may be considered such as documentation and codification of the complete decision making process.

Finally we recommend that DEO and EFI define and codify the process to be followed when DEO’s Division of Strategic Business Development and EFI staff disagree on whether to fund a project. At a minimum, this process should include full disclosure in writing to ensure transparency of the rationale for the ñnal decision.

Governor Scott issued the following statement:

“This Inspector General report shows two things – first, our current economic project vetting process is in place for a reason, and second, that process was clearly circumvented by the previous administration for the Digital Domain deal. We must ensure Florida has the tools needed to compete for economic investment, but we must also ensure that competitive process includes protocols to safeguard taxpayer dollars by focusing on a return on investment.”

Miami/Dade reveils first ever election fraud cyber-attack

Tom Tillison from BizPac Review reports:

A cyber attack against an online election system in Florida last year appears to be a historic first in terms of voter fraud, NBC News reports.

More than 2,500 “phantom requests” for absentee ballots were made through the Miami-Dade County elections website,according to a grand jury report on problems in the Aug. 14 primary election.

The attempt to illegally obtain absentee ballots using a computer program is the first known case in the U.S., according to computer scientists and lawyers working to safeguard voting security.

NBC News reports that “because of the enormous number of requests – and the fact that most were sent from a small number of computer IP addresses in Ireland, England, India and other overseas locations – software used by the county flagged them and elections workers rejected them.”

. . .

There are few answers about who was behind the “phantom requests,” which targeted Democratic voters in the 26th Congressional District and Republicans in Florida House districts 103 and 112, according to the Miami Herald.

Read the full column here.

City of Sarasota, FL promotes “kiddie porn” parody?

The City of Sarasota, FL owns and operates the Van Wezel Performing Arts Hall, which has a budget of over $8.8 million. On April 23, 2013 at 8:00 p.m. 50 Shades: The Musical will be performed. 50 Shades: The Musical is a parody of the controversial erotic book 50 Shades of Grey.

According to Larry Allen, Sarasota County Communication Office, “Sarasota County provided grant funding in the amount of $76,468 to the Arts and Cultural Alliance through the Tourist Development Tax. The Alliance provides funding to the Van Wezel for program series. A  list of prospective show offerings was provided in the grant application process on March, 2012. 50 Shades of Grey was not on the list provided on that date.” [My emphasis]

In August of 2012, the Ulsterman Report posted a letter from a person with “20 years with Child Protective Services.” The author of the letter writes, “Yes, 50 Shades is pornography. Like most pornography, the story line is weak, the characters one-dimensional, while the sex itself graphic, detailed, but formulaic. The underlying theme to 50 Shades is something far more sinister and appalling though than your mere run-of-the-mill porn. It is pedophilia. It is child porn. Kiddie porn.” [My emphasis]

According to the letter writer, “I didn’t seek out 50 Shades of Grey. It was brought to my attention by a longtime friend who is also a clinical psychologist at a university. She’s a bit older than me. She grew up in the counter culture era and did her fair share of experimentation of all kinds.  So she’s hardly a prude. What she today though is a mother and grandmother. And she’s smart. One of the things that fascinates her is this age of cultural phenomena.  How due to technology things now spread so quickly throughout society and become the next big thing at an increasingly rapid pace. She says sometimes this phenomena is pretty much harmless, and other times it can be very damaging to kids and or adults who begin to emulate something out of a need to belong to the ‘next big thing’.”

According to Mary Bensel, Executive Director of the Van Wezel Performing Arts Hall, 50 Shades is the next big thing.

Mary Bensel, Executive Director of the Van Wezel Performing Arts Hall

During a telephone interview Bensel pointed out that the musical is getting rave reviews everywhere it plays. There is a video on the Van Wezel website with patrons (the musical is restricted to those over 18 years old) saying how funny 50 Shades is. But is sexual abuse funny?

Bensel stated she has both read the book 50 Shades of Grey and viewed 50 Shades: The Musical in New York.

When asked if she believed the book 50 Shades of Grey was pornographic Bensel stated, “I have no opinion.” On the phone call was Julia Mays, Director of Marketing for the Van Wezel, who portrayed the book 50 Shades of Grey as a “love story”.

E.L. James, author 50 Shades of Grey

According to Wikipedia, “Fifty Shades of Grey is a 2011 erotic romance novel by British author E. L. James. It is the first installment in the Fifty Shades trilogy that traces the deepening relationship between a college graduate, Anastasia Steele, and a young business magnate, Christian Grey. It is notable for its explicitly erotic scenes featuring elements of sexual practices involving bondage/discipline, dominance/submission, and sadism/masochism (BDSM).” [My emphasis]

Bensel stated that the Van Wezel paid about $10,000 for the musical and has sold $27,424 in tickets. Sex sells and sexual abuse sells even better?

When asked if anyone from the Van Wezel staff reviewed the lyrics or screen play the answer was “no, that is not our job.” A call was placed to David Freeland, Senior Booking Manager with the Broadway Booking Office, NYC, who is the agent for 50 Shades: The Musical to get a copy of the screen play. Freeland has not return our call as of the publishing of this column.

As the Ulsterman Report letter writer states, “Sexual predators are cons. They almost always have a cover. It’s that cover which allows them access. 50 Shades of Grey is a con. It now has access to millions of readers. It is a story about abuse from beginning to end. And it’s not just the abuse of a man and a woman – it’s the abuse of a man and a girl.”

Bensel’s con is the book and musical are popular, thereby justifying its booking. She also noted that 50 Shades: The Musical and Spank! The Fifty Shades Parody have been booked by other Florida performing arts halls including: The Lakeland Center, Broward Center and Barbara B. Mann Performing Arts Center in Fort Myers, FL.

Senator Marco Rubio has made it his mission to stop human trafficking, including the sex trafficking of children in Florida. Perhaps Senator Rubio should visit the Sarasota City Hall when he comes to Sarasota on March 15th and make the Commissioners understand the problem? Please watch this video interview with Senator Rubio where he states “awareness is critical”:

UPDATE:

WDW received the following email sent to the Sarasota City Commissioners:

Dear Commissioners:

Many Adult Ordinances passed in the city of Sarasota, an Ordinance No. 97-4015 was adopted on the 2nd reading on the 15th June 1998 but was amended by Ordinance 98-4073 & passed Dec. 7. 1998. Another amendment to the Adult Ordinance 99-4165 passed Nov. 15, 1999.  Most of the changes were made to strengthen the Ordinances to make them more enforceable.

I would think that these ordinances would prohibit any kind of pornographic performance at the Van Wezel Performing Arts Hall based on this evaluation of 50 Shades of Grey planned to be performed on April 23, 2013.

As a former Director of Florida Family Association for Sarasota/Manatee County, our organization was very much involved with all the Adult Ordinances for the city & County of Sarasota as well as Manatee.

Therefore, I would appreciate knowing what the city of Sarasota plans to do with this performance.

Esther Rachwal
Sarasota, Fl. 

Perhaps the Van Wezel should be issued an Adult Use Permit?

RELATED COLUMN: Police chief: If you don’t curb porn, number of sex crimes will rise

50 Shades of Grey – Pedophilia Hiding In Plain Sight

The Ulsterman Report, August 16, 2012

The story of convicted child rapist Jerry Sandusky is well known.  So too is the 50 Shades of Grey phenomena, a book that has become so popular among women that some are referring to it as “Mommy Porn” for the masses.  That description is actually a lot more disturbing than a lot of folks are currently realizing.

Yes, 50 Shades is pornography. Like most pornography, the story line is weak, the characters one-dimensional, while the sex itself graphic, detailed, but formulaic. The underlying theme to 50 Shades is something far more sinister and appalling though than your mere run-of-the-mill porn. It is pedophilia. It is child porn. Kiddie porn.

Now I know after saying that, many female fans of 50 Shades, many of them mothers, will naturally put up a defense against that kind of description.  These women, being mothers, are naturally wired to protect kids.  People like Jerry Sandusky are viewed with hatred, revulsion, and disgust.  Rightfully so.  What mother would want to condone anything having to do with the sexual abuse of children?  Of innocents?

But that is exactly what 50 Shades of Grey is really about.  It is a story of a girl being sexually molested, over and over again, by a male figure with all the power, all the control.  It is the classic abuse scenario.  And mothers are, in some cases, quite literally getting off on it, which takes the disgust of this phenomena to a whole other frightening level.

So having put that out there, and I hope I haven’t lost any of you just yet.  I owe you an explanation after having made that kind of accusation about a book some of you may be reading right now.  I’ll start with a bit of background first.

My professional experience centers around nearly 20 years with Child Protective Services.  Over that time, I’ve seen situations that do, literally, keep me up at night.  The amount of abuse that is going on in our society, that sexualization of our kids…well basically, what you hear about, what is reported in the news, that is only a small sample of just how large of a problem and the disgusting acts that are going on every day.  Kids are being raped.  Kids are being abused.  Every single day.  Over and over and over again.

50-Shades-Movie-Official-CastI didn’t seek out 50 Shades of Grey.  It was brought to my attention by a longtime friend who is also a clinical psychologist at a university.  She’s a bit older than me.  She grew up in the counter culture era and did her fair share of experimentation of all kinds.  So she’s hardly a prude.  What she today though is a mother and grandmother.  And she’s smart.  One of the things that fascinates her is this age of cultural phenomena.  How due to technology things now spread so quickly throughout society and become the next big thing at an increasingly rapid pace.  She says sometimes this phenomena is pretty much harmless, and other times it can be very damaging to kids and or adults who begin to emulate something out of a need to belong to the “next big thing”.

Her reaction to 50 Shades of Grey though was much more aggressively negative than anything I could recall her talking about before.  It came up because I mentioned it to her offhand.  I had seen a couple mentions of it on the news and knowing her interest in cultural trends, asked her about it.  She stopped talking, looked right at me, and said the book was about pedophilia.   And it was her who then connected it to the Sandusky tragedy where so many young boys had been sexually abused. Sandusky committed his acts of crime under the cover of actually helping youth.  That is how he gained access.  My friend said 50 Shades was basically the same exact thing.  Its cover was a story of a young woman engaging is a very graphic sexual relationship with a somewhat older man.

The problem for her, and it was a BIG PROBLEM, was that the narrator in the story, was in fact, an underage girl.  My friend indicated, based on the use of language in the narration, that this girl was likely no more than 12 or 13 years of age.  I made mention that the girl in the story was actually getting ready to graduate college.  My friend, a woman with years of experience as a clinical psychologist, whose expertise I had personally witnessed a number of times over the years, shook her head and told me that she would not be able to convince me by simply talking about it.  She said I should read the book myself, but do so with the eyes of somebody whose job it had been for many years to try and protect children.  As someone who has seen over and over the signs of abuse, and the damages of abuse.   Because there are always warning signs.  I know that.  How many times have I heard people horrified in saying “I can’t believe I didn’t see that”  “How couldn’t I have known?”  Or even worse, “I knew something wasn’t right but I didn’t want to believe they were capable of doing something like that.”

I’ll try and summarize my friend’s words at this point as best I can.

“Sexual predators are cons.  They almost always have a cover.  It’s that cover which allows them access.  50 Shades of Grey is a con.  It now has access to millions of readers.  It is a story about abuse from beginning to end.  And it’s not just the abuse of a man and a woman – it’s the abuse of a man and a girl.

When you read it, look for the signs.  They are all there.

The female character has no sexual experience.  None.  She is given the age of 21, but that age is itself a cover.  Her true emotional age is much-much younger.  She has never even masturbated.  She has never even experienced an orgasm.  That alone is one of the greatest attractions to the pedophile.  That is the psychology of that kind of act.  You get off on taking purity.

But move from the fact the girl has no sexual experience whatsoever.  Now pay attention to her narrative dialogue.  Really listen to how she talks.  Again, she’s not talking like a young woman, she’s talking like a girl.  She talks about cartwheels, and skipping, over and over again it is the language and the imagery of a girl.

After that this girl has her innocence taken from her.  The abuser, the older man, makes her think its her choice.  Again, you and I both know that is one of the primary tools of the pedophile.  They create an environment where the child feels it’s their idea.  It’s what they want. But what happens after that innocence is taken away?  Then the abuser becomes more openly abusive. Controlling.  In this story he tells the little girl how to speak.  What to wear.  What to eat.  He is Daddy and she is daughter.  When you read it read it like a mother who is also a woman who is experienced with the real life tragedy of abuse.

And there is many more themes about that abuse in this book.  There is spanking and the use of Baby oil.  Why baby oil?  Think about it.  The girl wears pigtails.  She complains that he is treating her like a child.  He says she acts like a child.  There is even a scene where the abuser creates a situation to take her innocence from her again.  He rips out her tampon and engages in forceful sex yet again.  Her hymen is ripped, and the bloody remnants of it are again symbolized in an act of pedophile rape.”

She went on to say there are women now defending the book, and she understands that, but it concerns her.  A great deal, because she is absolutely convinced the book is purposely advocating the raping of a child and attempting to normalize that atrocity.

So, I left that conversation thinking maybe my friend was exaggerating.  I had a hard time believing something so popular could actually have such a sinister and revolting theme, and while I respected her expertise and experience, thought this time she had to be seeing something that just wasn’t there.

I got the book, I sat down, and I read it.

The first thing that struck me was how poor the writing was.  It wasn’t just bad.  It was horrible.  But horrible writing is no crime, (thank goodness or I would have been put away a long time ago) and it doesn’t make the content of the story evil.  But in my reading of it, just like my friend said, the theme of child abuse, of pedophilia, was right there in plain sight.  I remember being told a long time ago that sometimes the best way to hide something is in plain sight.  That is what 50 Shades of Grey is really doing.

The main character had no sexual experience.  None.  She was an innocent.  She was a kid who had just had her first drink of alcohol.  No way that was an accident by the author.  That author had to have purposely made her, despite her given age of 21, by any other measure, a little girl.  At that point, it struck me as odd.  In my business, we call that a warning signal. A sign we may have a problem.

From there, just like my friend had warned, it got worse.  Much worse.  And she was right, her telling me about it did not have the impact of me reading it myself with eyes open.  She had given me the signs to look for, and as I turned the pages, those signs confirmed it over and over again.

The narration, which is the voice of the girl talking to the reader, was the voice of a little girl.  It’s unmistakable.  There is very little emotional maturity and absolutely no sexual maturity.  She is seduced by this man in the very same way a pedophile seduces a child.  The male character is Gerry Sandusky.  He makes a show of his money, his power, the things he can buy for her, but while this is going on, we are reading the thoughts of a child.  We are reading the seduction of a little girl by a pedophile.  She is almost completely powerless.  She is naïve even for a teenager, and certainly much much more naïve than a college student.  She is incapable of even making the most simple of every day decisions and must be told what to do by her abuser, who in turn though spends a lot of time and effort convincing this child this is really what she wants.  I’ve seen this before.  Too often.  Too many times.  And it always leaves me sickened.

We are reading child pornography.  Remove the false age of the girl, which has no basis in reality, and what we are actually reading is the abuse of a little girl.

The main character is described in pigtails, given words like “Holy Cow”  “down there”, “jeez”  “double crap” she can’t operate a computer (but is supposedly a college graduate), describes skipping and doing cartwheels, repeatedly says she is made to feel like a child, has her imaginary friend (inner goddess) feels shame, is spanked and slathered in BABY OIL, told what to say, what to eat, what to do, until finally and sadly so predictably, is physically beaten.  (But she returns to him soon after, which is again, a very common theme of abuse, including pedophilia)

And beyond all of this evidence there is the fact that the male character is himself a product of sexual abuse at the hands of a pedophile.  The girl whose thoughts we listen in on as she is being abused, recognizes this aspect of the male abuser, but apparently, is too naïve or unwilling to realize she has continued this cycle of abuse herself. (Which again reinforces the idea that she is actually herself just a child)  There is no way the author did this by accident.  She puts out the theme of pedophilia openly, therefore hiding it in plain sight.

People who have had to deal with the real world of sexual abuse of children will understand this perhaps more easily than others.  How the pedophile is so often themselves victims of earlier abuse.  They enter society, they become fathers or mothers, but so often they too become abusive.  They seek out dominance, control, and the taking of innocence just as it was taken from them.  Those who were once abused, become the abuser.  It is the sad sick and tragic cycle of pedophilia.

With 50 Shades of Grey this abnormal condition is trying to be normalized.  Thanks to the insight of my friend, and my own experience,  I know it for what it truly is – a story of the sexual abuse of child, wrapped in the cliché cover story of a mysterious and troubled wealthy man.  That is another thing my clinical psychologist friend pointed out later.  Take away the aspect of money, and the character of the abuser becomes much less attractive and therefore it would have been much more difficult to pull of the deception.  Are women actually that shallow?  Yes, we can be.

But women, the vast majority of us, are not people who knowingly condone the sexual abuse of children.  We do not condone in any way, the horror that is pedophilia.

Sadly though, that is exactly what is happening with the popularity of 50 Shades of Grey.  It’s a pedophilia con.

It is one of the most horrible and sickening acts against the most powerless of our society, hiding in plain sight.

Maybe my friend put it best when we talked all of this over.  50 Shades of Grey didn’t excite her.  She didn’t find it interesting, sexy, or romantic.

50 Shades of Grey made her weep.  It made her sick.  It made her think of the abuses of all of those kids by a demented, warped monster like Jerry Sandusky, who, just like the pedophilia of 50 Shades of Grey, was hiding in plain sight.

FOLLOW UP:

Fifty Shades Pedophilia Abuse Controversy Revisited

Florida Senate passes sweeping ethics law but questions remain

Daniel B. Krassner, Executive Director of Integrity Florida

Daniel B. Krassner, Executive Director of Integrity Florida stated in an email, “Senate President Don Gaetz, House Speaker Will Weatherford, Senate Ethics and Election Committee Chairman Jack Latvala and House Ethics and Elections Subcommittee Chairman Jim Boyd are all to be commended for their constructive, bipartisan pursuit of ethics reform. Floridians have not seen our state leaders prioritize and pass comprehensive ethics reform since the implementation of the 1976 Sunshine Amendment.”

However, former Florida Commission on Ethics Executive Director Phil Claypool identified areas of concern about Senate Bill 2, the ethics reform bill just passed 40-0 by the Florida Senate.  Claypool shared the things good about the bill as well as his concerns in a memo to Integrity Florida.  Claypool’s analysis includes these not-so-goods:

[Blind Trusts]

For the first time in Florida, the bill would provide for “blind trusts,” an ethics concept from the federal government and many other states that the Ethics Commission has recommended for several years. In these other jurisdictions, this allows a public official to create a trust for his or her assets, to hand off responsibility for investing those assets to a trustee, and then to “blind” the official to what he or she owns by prohibiting the trustee from telling what is owned or sold. If an official doesn’t know what he or she owns, then the official should not be influenced in his or her public decisions by considering personal gain or loss.

Unfortunately, the bill as currently written takes the Ethics Commission’s recommendations regarding blind trusts and eliminates most of the parts that would protect the public. In effect, the proposal stands the concept of a “blind trust” on its head. Instead of protecting the public from conflicts of interest that a public official may have through “blinding” the official to what he or she owns, the proposed law would allow officials to use their positions for private gain while “blinding” the public to what’s going on.

[Financial Disclosure; Fines; Amendments; Investigations]

The bill requires the Commission to treat an amended disclosure form as if it were the original, so long as the form is filed by Sept. 1st. The intent is to allow an official to file an incorrect disclosure, be notified of the error when a citizen has investigated and files a complaint, and then correct the filing without consequence if he or she can by Sept. 1st.

Someone is being protected here! And it isn’t the public. Shouldn’t officials take personal responsibility for their actions? Already, officials can amend their forms at any time to fix mistakes. Shouldn’t they treat financial disclosure – which they file under oath and make only because they hold the public trust – as seriously as their income tax returns?

[Ethics Commission Investigative Authority]

Part of the bill would allow the Ethics Commission to investigate possible violations when referred by one of several different officials, thus not requiring those officials to file a complaint with the Commission (and allege that they believe there has been a violation) if they believe a situation should be investigated.

This has been one of the Commission’s recommendations and would be a positive step forward, although still a step short of allowing the Commission to initiate investigations on its own. However, the bill also would limit the Commission’s jurisdiction to investigate if the complaint or referral is filed within 30 days of an election against a candidate. This extends the 5-day limitation that is in the current law to 30 days.

This appears to take a step backward – why do public officials need even greater protection?

[Voting Conflicts of Interest]

This is a very technical subject, one that I spent hours lecturing on at various seminars. Currently, State-level officers (as opposed to local government officials) can vote on measures in which they have a conflict of interest, but are required to disclose the conflict within 15 days of the vote (if an elected official), or prior to the vote (if an appointed official). A conflict is created when the measure under consideration would inure to the special private gain or loss of the official, of a principal by whom the official is retained, or of a relative or business partner of the official.

The bill would prohibit State-level officers from voting on a measure that would inure to their special private gain or loss. That is a change in the law. They still would be allowed to vote on matters benefiting their principals, relatives, and business partners but would have to disclose the conflict within 15 days.

It also would amend the law on when State and local officials have a conflict requiring them to abstain and/or disclose the conflict, by defining “special private gain or loss.”

[Gifts from PC’s and CCE’s]

This section creates an entirely new prohibition against some gifts being given to public officials and their families by Political Committees and Committees of Continuous Existence. But not all gifts – just the ones that are “not primarily related to contributions, expenditures, or other political activities” under Ch. 106.

Without seeing any examples of what is intended or without having a specific definition, it is difficult to determine what would be “primarily related to” contributions, expenditures, or other political activities, and what would not. It may be that a definition would make this clearer.

Click here to read the full Phil Claypool Memo to Integrity Florida – Ethics Reform Bill Analysis

Are hedge fund managers moving to Florida a good idea?

Cheryl Carpenter Kilmek in BizPac Review reports:

“The word is out among hedge fund owners that Palm Beach County is the place to be. Kelly Smallridge, President and CEO of the Business Development Board of Palm Beach County, says in the past two weeks she has been getting phone calls every day from New York hedge fund owners tired of high taxes and cold weather looking for a change.

Following a recent New York Post article that said, “The city’s hedge-fund executives are flying south — and it’s not for vacation,” Fla. Gov. Rick Scott sent a letter to hedge fund owners asking them to consider Florida, which prompted a tremendous response.”

But is this really good for Florida?

Florida has had its share of hedge fund managers gone bad. Can you say Ponzi scheme? For example, Scott W. Rothstein, is the disbarred lawyer and the former managing shareholder, chairman, and chief executive officer of the now-defunct Fort Lauderdale law firm Rothstein-Rosenfeldt-Adler. He was accused of funding his philanthropy, political contributions, law firm salaries, and an extravagant lifestyle with a massive $1.2 billion Ponzi scheme.

HedgeCo.net lists the following recent cases of hedge fund manager fraud:

Hedge Fund Manager Convicted by Jury In Black Diamond Ponzi Scheme

February 12, 2013 :

New York (HedgeCo.Net) – A Federal jury has convicted a certified public accountant Jonathan D. Davey, 48, of Newark, Ohio, of four criminal charges relating to an investment fraud conspiracy, the FBI reports. The federal indictment, returned in February 2012, […]

Charges Allege $311 Million Global Hedge Fund Fraud Scheme

February 8, 2013 :

New York (HedgeCo.Net) – An indictment was filed and an information unsealed today charging two business associates in the hedge fund management industry with defrauding institutional investors and causing collective losses of more than $311 million, announced United States Attorney […]

Witness in Rajaratnam Hedge Fund Insider Trading Case Gets One Year Behind Bars

February 1, 2013 :

New York (HedgeCo.Net) – Roomy Khan, a government co-operator in the biggest hedge fund insider trading conspiracy in US history, has been sentenced to one year in prison. Khan has pleaded guilty to passing inside information to Galleon Group fund […]

BCM Hedge Fund Analyst Sentenced in Manhattan

February 1, 2013 :

New York (HedgeCo.Net) – Jason Pflaum, a former research analyst with the hedge fund Barai Capital Management (BCM), was sentenced to time served, followed by two years of supervised release, for his participation in an insider trading scheme in which […]

Insider Trading: California Hedge Fund Founder Gets 2 Years Behind Bars

January 25, 2013 : Permalink

New York (HedgeCo.Net) – San Francisco hedge fund founder Doug Whitman was sentenced yesterday to two years behind bars after a conviction on securities fraud and conspiracy charges. Whitman Capital, the hedge fund he had presided over had about $100 million in assets. […]

Hedge Fund Fraud: Wireless Analyst Sentenced to 4+ Years

January 16, 2013 :

New York (HedgeCo.Net) – The securities research analyst who had publicly refused in 2010 to wear a wire in a hedge fund insider trading trading probe was sentenced yesterday to over four years in prison, Bloomberg’s HedgeWorld reports. John Kinnucan […]

California Hedge Fund Manager Jailed For Fraud

January 15, 2013 :

New York (HedgeCo.Net) – Albert Ke-Jung Hu, a silicon valley hedge fund manager, has been jailed for 12 years on charges of defrauding investors out of at least $6.5 million. “Instead of investing the money as promised, Hu “converted that money […]

Madoff: Doomed Hedge Fund Magnate Speaks Out

December 28, 2012 :

New York (HedgeCo.Net) – The master of manipulation, Bernie Madoff, second only to Charles Ponzi himself, sent out a Christmas memo claiming that “Insider trading… has been present in the market forever, but rarely been prosecuted.” “Markets have always focused on […]

2 Prominent Hedge Fund Managers Found Guilty

December 18, 2012 :

New York (HedgeCo.Net) – A New York jury has found Anthony Chiasson and Todd Newman, both former hedge fund managers, guilty of insider trading charges. The NYT reports: “The government built its case around the testimony of two key witnesses: Spyridon Adondakis, […]

Three Unregistered Brokers Charged For Improper Sales Of Hedge Fund Interests

December 10, 2012 :

New York (HedgeCo.Net) – The SEC has charged three brokers who raised funds for an Oregon-based hedge fund manager for failing to register as broker-dealers before engaging in securities transactions. “Broker-dealer registration is crucial to protecting investors from Ponzi schemes […]

SAC Hedge Fund Insider Trading Professor Resigns

November 30, 2012 : 

New York (HedgeCo.Net) – The Neurologist linked to the Alzheimer drug tests/hedge fund insider trading case, has resigned from his position at the University of Michigan. Professor Sid Gilman is accused of leaking data to SAC hedge fund trader Mathew Martoma. Gilman was paid […]

SEC Preparing Civil Suit Against Cohen’s Hedge Fund SAC Capital

November 29, 2012 :

New York (HedgeCo.Net) – A week after hedge fund trader Mathew Martoma was charged with insider trading, the SEC is going after the hedge fund in question, Steven A. Cohen’s hedge fund SAC Capital, according to people familiar with the situation. “In […]