Thursday, January 18, 2007

State Rep. Hires TRMPAC Lawyer

It's that time of year! It's like Christmas if you enjoy peering into the financial goings on of candidates and officeholders. Maybe more like a car wreck? January semi-annual campaign finance reports were due this week and they are all up on the Texas Ethics Commission website. You know what that means, time to check up on Rep. John Davis (R-Clear Lake) and find out how he is spending his campaign cash. There was a surprise or two.

I was really curious if he would have a lot of gas expenditures. No. A lot of meal expenditures? No. A lot of expenditures simply listed as American Express? No. A high-end boot purchase, maybe? No, not even that. Seems like Rep. Davis has cleaned up his act! Very cool. If I had something to do with that, well good.

The first interesting thing I discovered was that he had transferred over $77,000 of his campaign cash to a PAC - Texans for John Davis. Huh. There were not a lot of expenditures there, but there was one for an Edward M. Shack for professional services. $4950 on December 13th.

OK. And, then I looked at the report for his regular campaign account. Again, $8625 to Edward M. Shack 0n November 11th. Mr. Shack received a total of $13,575 from John Davis in December.

Who is this Ed Shack?

Well, he was Tom Craddick's attorney during his race for Speaker in 2003 (he received 8 payments from the official "Speaker's Fund".) Read a letter he wrote to the Austin Chronicle about the Speaker's Fund here. Some questioned if the expenditures from that fund were legal.

He was a TRMPAC attorney, approving all of the donations and expenditures of the Texas Association of Business (TAB). In that TRMPAC link, Bill Cerveha, TRMPAC Treasurer notes, "we had legal advice from day one to be sure we did everything clean so there'd be no question about it." Well there were questions. There is a continuing investigation into TRMPAC by Travis County District Attorney, Ronnie Earle. The TAB was indicted by a grand jury for raising money for political campaigns, paying staffers to do political work and for illegally sending mailers to Republican candidates, among other things. They hid their involvement in the 2002 election by having TRMPAC distribute the mailers.

He was the attorney for Leininger's PAC that targeted incumbent Republicans who were not pro-voucher during their 2006 primaries.

He was Henry Cuellar's attorney during the recount in the run-off against U.S. House incumbent Ciro Rodriguez in the 2004 primary (Cuellar won by 58 votes, but it took an appeal to the 4th Circuit Court to accomplish that.)

Governor Rick Perry hired him to the tune of nearly $20,000 in 2005. I wonder what for?

Other officeholders who have hired him include Representatives Craig Estes, Mike Krusee and Terry Keel.

And, Shack has testified in front of the Texas Ethics Commission on various matters, including a TEC proposal to clarify how candidates and officeholders report reimbursements to staff.

The kicker is that in 1991, he served as staff to the Governor's Task Force on Ethics charged with creating the rules and procedures of the newly created Texas Ethics Commission - which has been described as toothless and gumless.

WHY does John Davis need such a high powered, politically connected attorney? Perhaps it is because four ethics complaints were filed against him. These complaints, all accepted by the TEC, were for numerous violations including improperly reporting over $41K in expenses as simply "American Express", improperly reporting reimbursements to himself from his campaign cash, reporting expenses in the wrong reporting period and personal use of campaign funds (over $22K). Ch. 11, Houston, did a story on Davis which you can view through a link here.

So, if you are a Republican in an ethics mess in Texas, who are you going to call? A TRMPAC attorney, of course!

6 comments:

Anonymous said...

DAMN!!!!!! that is good research!

Anonymous said...

I hate to rain on your parade and all, but calling Ed Shack a politically connected lawyer is like calling Rick Perry a visionary leader. While Ed may appear to have a high-brow list of clients, he in fact, is really one of the few attorneys who understands our state's arcane and assanine ethics laws and the inner workings of the idiocy of the Texas Ethics Commission. Ed should be on the regular payroll of virtually every state officeholder if for no other reason than that he has the smarts to help these men and women stay in compliance of a seriously screwed up system.

While I likely agree with your general points about the need for said legislator to stay on the straight and narrow, attempting to paint him as unethical because of his association with Ed is an ill informed opinion. Quite the contrary, in fact, it's simply smart political administration to have Ed's counsel in this day and age.

muse said...

Good points, anon.

I'm not that what you are concerned about are EXACTLY the points I was trying to make. More like why does Davis need someone who knows so much. I've looked at a lot of campaign finance reports and Davis has got some serious problems. And, Shack mostly represents Republicans who are in need.

I was just emailed a list of who all has had Shack in their employ over the past four years or so and it's very interesting.

muse said...

OK, anon. I went back and reread your comment.

We are saying the exact same thing and I wonder where I went wrong in the post where that didn't come across.

Bottom line - Davis is not unethical because of his association with Shack. Davis is unethical because his campaign spending violations. This should be VERY apparent in the many posts I've written about Davis.

Yeah, he's smart to hire Shack. Because he REALLY needs the help to get out of the mess he is in.

But, hey, Shack helped set up the arcane and freakishly confusing TEC rules, from what I have been able to gather. So, I would hope he can help interpret all of that for officeholders.

Anonymous said...

Anyone who hires Shack is obviously really fucked!

Excuse my French.

Fries.

playmisty4me said...

I'm sorry - but I'm having difficulty understanding anon's 10:07 post. He (or she) writes of "our state's arcane and assanine (sic) ethics laws and inner workings of the idiocy of the Texas Ethics Commission".

Arcane ethics laws? You mean like having to list the actual bills paid with campaign funds on your VISA card, rather than just the credit card payment amount. Yeah, I can see how that would be a really complicated procedure, for which one would definitely need a skilled attorney like Ed Shack. Shack must be laughing all the way to the bank.