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No set-aside for Stockman

Sorry, Stevie.

Best newspaper graphic ever

A Texas federal judge has declined to set aside a jury’s conviction of former U.S. Rep. Stephen Stockman, R-Texas, who was found guilty in April of funneling what were solicited as charitable contributions into accounts that funded political campaigns and personal expenses, holding there was plenty of evidence to support the outcome.

Stockman’s defense team asked Chief U.S. District Judge Lee Rosenthal for an acquittal in May, after a jury convicted Stockman, 60, who was indicted in March 2017, on 23 of 24 counts and acquitted him on one count of wire fraud. Jurors deliberated for a little more than 15 hours over three days before returning their unanimous verdict in the trial that began with jury selection on March 19.

The former congressman’s attorneys argued in their motion that he’s entitled to an acquittal because a “reasonable-minded jury” couldn’t have seen the evidence presented at trial and concluded beyond a reasonable doubt that he was guilty. What the evidence did show, they argued, is that the wealthy conservative mega-donors Stockman was accused of defrauding — the now-deceased Stanford Z. Rothschild Jr. and Richard Uihlein — knew what Stockman was intending to use the funds for.

Stockman argued that while the evidence may have shown he was complicit in an illegal scheme involving campaign donations, it doesn’t show that he defrauded the rich donors who he alleges were “knowing participants.”

In her order issued Wednesday, Judge Rosenthal rejected that argument, noting that the government put Uihlein on the stand during the trial, and he testified he was misled about how the funds would be used.

“The evidence was sufficient for a jury to reasonably conclude that Stockman intended to defraud Uihlein,” the judge wrote. “The clear weight of the evidence supported the convictions. The jury credited Uihlein’s explanation and description of what Stockman told him and what he knew, believed, and expected as a result. The jury clearly did not believe the evidence that Stockman’s counsel cites to make the argument about Uihlein’s ‘real’ motive.”

See here for the background. Stockman remains in custody until he receives his sentence on August 17. I’m never going to get tired of these updates.

Stockman remains in custody

So sorry.

Best newspaper graphic ever

A federal judge ruled for the second time that former U.S. Congressman Steve Stockman is a flight risk and ordered him to remain in federal custody while he awaits sentencing in an elaborate $1.25 million fraud scheme.

Chief U.S. District Judge Lee H. Rosenthal ordered the former GOP lawmaker detained in April after his conviction, following a four-week jury trial, on 23 criminal counts, including mail and wire fraud, violating federal election law, making excessive campaign contributions and lying on a federal tax return.

Stockman’s attorneys asked last week that their 61-year-old client, who is diabetic, be permitted to be free on restricted bond so that that he can seek “necessary medical attention and treatment prior to sentencing.” His lawyers said in court documents he had not been receiving sufficient medical attention at the Joe Corley Detention Center in Conroe and he hoped to get evaluations and treatment in advance of his sentencing scheduled for August 17.

[…]

In denying the request, the judge said she would instruct the U.S. Marshals Service to work with the staff at the detention facility to ensure that Stockman receives the treatment and medication he needs.

Rosenthal explained in her terse four-page order that Stockman, who used Bitcoin and burner phones and helped an aide avoid FBI detection for years in Egypt, did not meet his burden to convince her he is not a flight risk.

See here for some background. I hate to make light of someone’s misfortune, but I daresay this is an example of someone’s reputation preceding them. Given the potential sentence he was facing, I’d consider him a flight risk, too.

Stockman asks for his verdict to be set aside

Never know till you ask, right?

Best newspaper graphic ever

Attorneys representing former U.S. Rep. Stephen Stockman, R-Texas, who was found guilty in April of funneling what were solicited as charitable contributions into accounts that instead funded political campaigns and personal expenses, have asked the court to set aside the jury’s conviction in the case citing a lack of evidence.

Stockman’s defense team filed the motion asking Chief U.S. District Judge Lee Rosenthal for an acquittal on Monday. A jury convicted Stockman, 60, who was indicted in March 2017, on 23 of 24 counts, acquitting him on one count of wire fraud. Jurors deliberated for a little more than 15 hours over three days before returning their unanimous verdict in the trial that began with jury selection on March 19.

[…]

The former congressman’s attorneys argued in the motion that he’s entitled to an acquittal because the evidence presented at trial “could not be accepted by a reasonable-minded jury as adequate and sufficient to support a guilty verdict beyond a reasonable doubt.” Instead, the evidence showed that the wealthy conservative mega-donors Stockman was accused of defrauding — the now-deceased Stanford Z. Rothschild Jr. and Richard Uihlein — knew what Stockman was intending to use the funds for, according to the motion.

“With respect to fraudulent intent, the evidence must show Mr. Stockman had a conscious, knowing intent to defraud and that he contemplated or intended some harm to the property rights of the victim,” the motion argued. “The government has not established this.”

Sean Buckley, who represents Stockman, had told reporters immediately after the verdict there would be an appeal in the case. He reiterated arguments presented for the jury that the funds came from donors who knew the congressman would be using the money “to finance Mr. Stockman’s political work and his projects.”

See here for the background. The motion was made to the trial judge, Judge Lee Rosenthal, who I presume will rule on it before sentencing, which is scheduled for August 17. I can’t imagine this sort of motion works very often, but I suppose it’s a prelude to the eventual appeal. I’ll keep my eyes open for further developments.

Blake Farenthold is a gift that keeps on giving

Oh, Blake.

Blake Farenthold

Nearly a month after abruptly resigning from Congress in the wake of revelations over lewd and verbally abusive behavior, former Corpus Christi Rep. Blake Farenthold had been angling for several days to get a lobbying job at a port authority in his district.

And he appeared to be getting antsy.

“What’s up with the lawyers?” Farenthold wrote to Calhoun Port Authority director Charles Hausmann in an April 30 email, which was obtained by The Dallas Morning News through an open records request. “I’m ready to get work for y’all.

“Any problems that I should know about?”

Farenthold ended up landing the gig this month.  He  started Monday as a $160,000-a-year legislative liaison who will seek to boost the port’s “presence and visibility in Washington.”

The new position — which Farenthold announced in a radio interview — has created a stir in South Texas and beyond, in no small part because the former congressman said this week that he would not repay $84,000 in taxpayer money used to settle a sexual harassment suit against him.

Never stop never stopping.

Asked Friday about a news report that said former U.S. Rep. Blake Farenthold’s recent hiring as a lobbyist for the Port of Port Lavaca may have violated the Texas Open Meetings Act, the Republican said he “wasn’t involved.”

The Victoria Advocate reported Friday that Farenthold’s hiring may have been illegal since the notice posted by the Calhoun Port Authority, which oversees the port, was too vague in describing what was going to be said at a closed meeting where the former congressman’s hiring was discussed.

“I’m trying to get on with my life. I wasn’t involved other than I talked to them about a job. I don’t know anything about it,” Farenthold said after an event hosted by The Texas Tribune. “I’m not talking to reporters. I’m a private citizen now.”

According to the Advocate, the posting said the board would meet “for the purposes of deliberating the appointment, employment, compensation, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee.” But the Texas Supreme Court ruled that these notices need to be specific when they concern high-profile people.

Like flies to a garbage can, you know? Some people just have a knack for this sort of thing.

Farenthold, in a brief phone interview, said that he’s “a private citizen now” and is “trying to not be a news item anymore.” He declined to comment on what the Florida reference meant. He didn’t dispute the general timeline for how he obtained his new employment.

“I started looking for a job as soon as I was out of office,” he said.

Heck of a job not being a news item, dude. Maybe next time check and see if Chili’s is hiring first.

Farenthold finds a trough

It’s the circle of life.

Blake Farenthold

Former Republican U.S. Rep. Blake Farenthold has accepted a lucrative position lobbying for a port in his ex-Texas district — mere weeks after resigning in disgrace amid fallout from using public funds to settle a past sexual harassment complaint.

The Calhoun Port Authority announced Monday that Farenthold would promote its interests in Washington and assist “in resolving funding issues.”

“Blake has always been a strong supporter of the Calhoun Port Authority and is familiar with the issues facing the port,” it said in a statement. Port Director Charles R. Hausmann said Farenthold’s annual salary will be $160,000.

The port is located in the Gulf Coast community of Point Comfort, an area hit by Hurricane Harvey last summer.

A former Farenthold congressional staffer didn’t return messages seeking comment Monday, but the ex-congressman himself told radio station KKTX that he’d taken a job about a 90-minute drive from his home in Corpus Christi.

We should all be so fortuitous with our employment prospects. And just to prove that it’s better to be lucky than good, there’s this:

Former House members are prohibited from acting as lobbyists for at least one year after leaving office. But there’s a loophole: The lobbying restrictions do not apply to employees or officials of federal, state or local governments. Since the port is run by the government, Farenthold does not have to abide by the mandatory one-year “cooling-off” period.

Life sure is beautiful, ain’t it?

Farenthold tells Abbott to go pound sand

Well, what did you expect?

Blake Farenthold

Blake Farenthold — a disgraced former Texas congressman who resigned last month — will not fund the special election to replace himself, he told Gov. Greg Abbott in a letter Wednesday, the Houston Chronicle reported.

Abbott had asked that Farenthold pay for the election, set for June 30, as a form of recompense: Farenthold resigned in April, months after it came to light that he had settled a sexual harassment claim from a former staffer with $84,000 of taxpayer money.

That payment mechanism is allowed under federal law but has nonetheless drawn sharp criticism on both sides of the aisle since it was uncovered last fall. Farenthold had originally pledged to repay that sum to taxpayers, but has yet to do so, claiming he is acting on the advice of his lawyers.

Farenthold, who is worth well over $2 million, according to a recent financial disclosure form, has now said he won’t pay for the election either.

“Since I didn’t call it and I don’t think it’s necessary, I shouldn’t be asked to pay for it,” his letter said.

See here for the background, and here for a longer version of that Chron story. I’m actually kind of glad there isn’t a copy of the letter to share, because the various closings I can imagine him using – “See you in hell”, “Kiss my grits“, “Insincerely yours” – are all way more entertaining to me than what he no doubt actually used. The point here is that just as Congress can’t touch Farenthold for the $84K he swiped, neither can Abbott for the special election that he insisted (quite reasonably, in my opinion) on calling. And Farenthold damn well knows this, which when combined with his utter lack of shame or conscience, is how we got here. See you in hell, indeed.

UPDATE: Okay, fine, you can see the letter here.

Abbott wants to send Farenthold a bill for the CD27 special election

Good luck with that.

Blake Farenthold

Gov. Greg Abbott is demanding that former U.S. Rep. Blake Farenthold “cover all costs” of the special election to fill his seat using the $84,000 the Corpus Christi Republican used to settle a sexual harassment claim years ago.

Farenthold, who abruptly resigned earlier this month, had promised to pay back the $84,000 — which came out of a taxpayer-funded account — after that settlement was made public last year but hasn’t so far.

In a letter to Farenthold on Wednesday, Abbott said the former congressman should return the money to taxpayers by funding the June 30 special election to finish his term.

“While you have publicly offered to reimburse the $84,000 in taxpayer funds you wrongly used to settle a sexual harassment claim, there is no legal recourse requiring you to give that money back to Congress,” Abbott wrote. “I am urging you to give those funds back to the counties in your district to cover the costs of the June 30, 2018, special election.”

“This seat must be filled, and the counties and taxpayers in the 27th Congressional District should not again pay the price for your actions,” Abbott added. He requested a response from Farenthold by May 2.

See here and here for the background. We all understand that this is just a stunt by Abbott, right? He has no more leverage over Farenthold than the Office of Congressional Ethics does at this point. Farenthold was never afflicted with a sense of shame before, and there’s no reason to think he will be afflicted by it going forward. It’s a feel-good maneuver by Abbott, and honestly I can’t blame him for it – if Wendy Davis were Governor today, she might well have sent a similar letter – but that’s all it is. That letter will have as much effect on Faranthold’s actions as any of my blog posts have had.

Someone needs to sue Blake Farenthold

That’s my response to this.

Blake Farenthold

Four months after U.S. Rep. Blake Farenthold promised to repay an $84,000 sexual harassment settlement funded by taxpayers — and 11 days after the Republican resigned his Corpus Christi seat — he has yet to write a check. And with Farenthold out of public office and increasingly out of the public eye, there’s little anyone can do to force him.

Farenthold pledged last winter to personally repay the cash paid out by the federal government to a former staffer, Lauren Greene, who sued him for sexual harassment in 2014. When news of the settlement surfaced in December, Farenthold told a local TV station he’d reimburse the money that same week, saying “I didn’t do anything wrong, but I also don’t want taxpayers to be on the hook for this.” In January, he said he would wait to repay the money after seeing what changes Congress would make to policies around the issue, saying he wanted to seek legal counsel.

Then, he resigned abruptly on April 6 — days before the House Ethics Committee, which was investigating his misconduct, would have released its findings in his case, according to the office of U.S. Rep. Jackie Speier, a California Democrat who has led efforts to reform Congress’s sexual harassment complaint process. After leaving public office, he immediately shut down his social media accounts and went silent. Requests for comment to his former staff were not returned.

The House committee no longer has jurisdiction to investigate Farenthold, though its members called on him “in the strongest possible terms” to return the money. But there’s no legal avenue to force Farenthold to repay the money — meaning the only option is “public shame,” said Jordan Libowitz, communications director for the watchdog group Citizens for Responsibility and Ethics in Washington.

“He does not seem like someone who is easily shamed,” Libowitz said. “When this came to light, he said that he would pay it back, then started looking for more and more reasons to delay the payment. It became pretty clear that if he wasn’t forced to pay it back — which legally he’s not required to — he didn’t seem all that interested in it.”

See here and here for the background. The story doesn’t even mention the possibility of a lawsuit, so I could be completely out to lunch here – as we well know, I Am Not A Lawyer. All I can say is that some crazier lawsuits than what I am suggesting have gotten traction in the courts lately, so why not take a shot at it? Surely there’s a taxpayer out there with some time on their hands and the desire to throw a little sand in Blake Farenthold’s gears.

Stockman convicted

Turn out the lights, the party’s over.

Best newspaper graphic ever

Former U.S. Congressman Steve Stockman — a political maverick once viewed as a champion of right-wing causes — was taken into federal custody Thursday after a jury convicted him of masterminding a wide-ranging fraud scheme that diverted $1.25 million in charitable donations from wealthy conservative philanthropists to cover personal expenses and campaign debts.

After deliberating more than 15 hours over three days, the jury found Stockman guilty on 23 counts of mail and wire fraud, conspiracy, making false statements to the Federal Elections Commission and money laundering. The jury found him not guilty on one count of wire fraud.

Stockman, 61, of Clear Lake, who served two non-consecutive terms as a Republican congressman in separate southeast Texas districts, showed no reaction to the jury’s verdict. His wife, Patti, watched from the courtroom gallery, as did U.S. Attorney Ryan Patrick.

Chief U.S. District Judge Lee H. Rosenthal ruled that Stockman was a flight risk and she ordered him taken into custody by U.S. marshals. Stockman faces a maximum of 20 years in prison on each of the fraud charges alone. Sentencing is set for Aug. 17.

I feel like my whole life has been leading up to this moment. I may have some coherent thoughts about this in a day or so, but until then let me go a little medieval Latin on you:

O Fortuna
velut luna
statu variabilis,
semper crescis
aut decrescis;
vita detestabilis
nunc obdurat
et tunc curat
ludo mentis aciem,
egestatem,
potestatem
dissolvit ut glaciem.

That’s all I’ve got for now. The Trib and RG Ratcliffe, who recalls some of Stockman’s greatest hits, have more.

Stockman trial: Off to the jury

Please return a verdict.

Best newspaper graphic ever

The defense team for former U.S. Congressman Steve Stockman told jurors Monday the ex- GOP lawmaker did not plot a massive fraud scheme, but said the government should have targeted two wealthy conservative donors for making illegal campaign contributions disguised as charitable gifts.

“The true motives of his donors … was to fund Stockman, his political activities and his projects without being restricted,” said attorney Charles Flood, referring to $1.25 million in tax deductible donations Stockman is accused of diverting to pay off personal and campaign costs.

Flood said investigators “believed early on this was a fraud case and they retrofitted it. They formed a conclusion and tried to back into it.”

Flood and two other defense lawyers — who are being compensated by an anonymous Stockman friend — argued that while the two-time Republican lawmaker spent some of the seed money he solicited on an array of unrelated expenses, he did not deliberately trick the donors into giving him money nor attempt to cover his tracks after the money was gone.

See here for the last update. So Stockman isn’t guilty of money laundering, just of participating in a scheme to evade campaign finance law. Unwittingly, I guess – we all know how naive he is. I got nothing. Let’s just keep going.

In closing, prosecution stressed there was no evidence to prove the defense claims that these donors meant to break the law when they made donations to what they believed were genuine charities.

In all, prosecutors questioned dozens of witnesses over three weeks of testimony — including an IRS investigator, a forensic accountant for the FBI and Stockman’s own accountant — to back their theory that between 2010 and 2014 Stockman systematically planned to use the donations money however he wanted and then lied to cover it up.

Assistant U.S. Attorney Ryan Ellersick walked the jury through a series of transactions, pointing out that Stockman, a trained accountant whom a former assistant described as a “micromanger,” stated in his own words in emails, texts and letters that he knew exactly what he was doing.

Ellersick quoted Stockman’s letter to a doubtful government minister in South Sudan, who was questioning a humanitarian donation that included a percentage fee for the former congressman. Stockman stated in the letter, “My experience is vast … I know what I am doing,” and assured the official that while some people might be untrustworthy, his reputation was impeccable. “Leopards don’t change their spots,” Stockman wrote.

As someone who has followed Steve Stockman’s career for nearly a quarter-century, I do agree with that. I’m on ping and needles till a verdict comes in. The Trib has more.

Farenthold resigns

So long, Ducky.

Rep. Blake Farenthold

U.S. Rep. Blake Farenthold, R-Corpus Christi, resigned on Friday.

The decision marks the capstone of a tumultuous few months for the four-term congressman, who has been dogged by sexual harassment allegations and an ongoing ethics investigation.

“While I planned on serving out the remainder of my term in Congress, I know in my heart it’s time for me to move along and look for new ways to serve,” he said in a statement that offered no further explanation for why he was not completing the final eight months of his term.

The congressman spent the day packing up his office.

[…]

Gov. Greg Abbott now needs to call a special election to fill the seat, the winner of which will serve until early January 2019.

Abbott has two options for filling Farenthold’s seat for the rest of his term, according to the secretary of state’s office. Abbott can schedule a special election on the next uniform election date, which is Nov. 6. (It’s too late for him to call it for the May 5 date.)

Abbott’s other option is to order an emergency election for any other Tuesday or Saturday. He would have to call the election 36-50 days in advance of the date he chooses.

House Republicans likely have no appetite for a special election at this point in the cycle. But one thing the governor’s office will have to weigh is whether Texas’ 27th Congressional District — which bore the brunt of Hurricane Harvey — can go without congressional representation for seven months.

Farenthold announced his retirement in December, and despite some controversy around the timing of his announcement he was allowed to drop off the ballot for the primary. As for what Greg Abbott does, in a normal year he’d call an emergency special at his first opportunity, as the odds would be extremely favorable for a Republican candidate to win and thus maintain numbers in Congress. This year, who knows? I still think we’ll get an election sooner than November, but if we don’t it’s quite the admission of weakness. In the meantime, I hope someone will remind Farenthold to pay back the $84,000 he owes the taxpayers before he slinks off into the darkness. Daily Kos has more.

Stockman trial update: Defense rests

And we’re done.

Best newspaper graphic ever

The defense rested its case Thursday in ex-GOP congressman Steve Stockman’s federal campaign fraud trial, after calling only two witnesses who together testified for less than an hour.

The former Republican lawmaker from Clear Lake told the judge presiding over his trial that he did not intend to testify in his own defense.

[…]

After court adjourned, Stockman’s defense team explained to reporters they would have called many more than two witnesses if the rules of evidence didn’t preclude Stockman to put on broader testimony about his reputation, work ethic and charitable work.

On Thursday, the final witness in the trial was Stevie Bidjoua Sianard-Roc, who had flown in from Africa to testify and took the stand for 38 minutes. She testified about several trips Stockman made to the Republic of Congo and Democratic Republic of Congo to meet with government ministers, discuss social issues and in one case deliver three boxes of medicine to a local hospital in which she served as his translator. In one instance, she said, Stockman donated an iPad to her husband.

“In Africa, Steve is like family to us,” Sianard-Roc told the jury.

Under cross-examination by Assistant U.S. Attorney Ryan Ellersick, the Sianard-Roc said she was not aware that Stockman was also working on a deal in the region with an oil company and hoped to meet with an oil minister there.

See here for the previous update. This whole trial has been amazing, but the thing that really stands out to me is how unimpressive the defense seems to be. Maybe it just hasn’t come through in the reporting, but I haven’t seen much to rebut any of the prosecution’s evidence. The defense seems to boil down to twenty-plus-year-politician Stockman is a naive dupe, and people in Africa like him. It feels more like what you’d put on during the sentencing hearing. Like I said, maybe there was more to it than the stories conveyed. Closing arguments are Monday, and then we’ll see. What do you think?

Stockman trial update: The prosecution abides

From Monday:

Best newspaper graphic ever

The second of two key government witnesses took the stand late Monday in Houston in the federal fraud trial of former U.S. Congressman Steve Stockman, telling jurors his main duty on the ex-lawmaker’s staff was to “just do what I’m told.”

[…]

On the stand Monday, [Jason] Posey told the jury he had previously pleaded guilty to wire fraud, mail fraud and money laundering.

Both [Thomas] Dodd and Posey knew Stockman through his work with the conservative Leadership Institute, an Arlington nonprofit that trains youth in grassroots organizing.

Posey, 47, who now works as a fry cook at Spuds in Tupelo, Miss., said he worked for Stockman on-and-off since his unsuccessful bid for re-election to the U.S. House of Representatives in 1996. He helped with Stockman’s failed campaign for Texas Railroad Commissioner in 1998 and lived among other volunteers in Stockman’s ramshackle campaign headquarters, a former motorcycle repair shop in Webster, during Stockman’s victorious 2012 campaign for the Congress.

Stockman then tapped him to be a congressional staffer in Washington. But when new employees were going around the room introducing themselves by their new titles at a preliminary staff meeting, Posey did not mention that he would be a liaison working on special projects.

Instead, he testified,“I stood and said, ‘I’m Jason Posey and I just do what I’m told.’”

He told the jury he knew nothing about Stockman’s major donors, although he helped the ex-congressman set up a failed charity, which Stockman later used to solicit donations, according to testimony from other witnesses.

See here for the last update. I don’t have anything to add to this, so let’s move on. From Tuesday:

After two and a half years dodging federal investigators by fleeing to Egypt, former congressional aide Jason Posey came to the painful realization that his boss, two-time Republican congressman Steve Stockman, was going to blame him for the elaborate fraud scheme they had orchestrated, he told a federal jury Tuesday.

“He told me, ‘You’re going to take the blame for everything’ and he was going to run for office,” Posey testified, adding that Stockman promised to look after him after Posey was convicted. “That was when I realized that I had been a complete fool for trusting Mr. Stockman and he never intended to keep his pledge.”

That pledge, according to Posey, was that if their questionable use of charitable donations came to light Stockman “would come clean about everything” and protect him and another devoted congressional staffer.

[…]

During Stockman’s successful 2012 campaign for the House of Representatives and his failed 2014 bid to unseat Texas Republican John Cornyn for Senate, Posey said he helped filter charitable donations to conservative 501c3 nonprofit groups. Posey testified he helped Stockman set up sham charities and associated bank accounts, which Stockman directed him to use to pay off campaign expenses and personal debts.

He wrote checks, set up bank accounts and moved the money, as Stockman told him, into shadowy charities, including one called the Egyptian American Friendship Society and another entitled Life Without Limits, supposedly dedicated to helping people recover from trauma, so the spending would look like it was coming from charitable groups, according to his testimony.

You really have to admire the dedication to these schemes. There’s no length Stockman (allaegedly) wouldn’t go to for the money. Imagine how much he could have gotten done if he’d applied that kind of work ethic to something productive.

And finally, from Wednesday, when the prosecution finished and the defense got started.

The prosecution ended its case by calling back to the stand FBI Special Agent Leanna Saler, to explain to the jury how Stockman used Bitcoin to forward funds to Posey who had fled to Egypt to avoid investigators and the purchases of so-called “burner phones” which were used to discuss an improper campaign donation, according to Posey’s testimony. Both were difficult for law enforcement to trace, Saler testified.

Defense lawyer Sean Buckley asked whether the Bitcoin transactions were charged in Stockman’s indictment. Saler said no. The ATM withdrawals Stockman made in Switzerland and Cairo were also not included in the charges, she testified.

Under further questioning from Buckley, the agent stated that the FBI never investigated the two mega-donors who gave Stockman the charitable contributions that were later diverted to pay personal and campaign editors.

After the government ended its presentation, Stockman’s lawyers called Callie Beck as their first witness to begin their defense of the charges. The court adjourned shortly after Beck’s testimony to await the expected arrival of another witness who Stockman’s lawyers said was flying in from the Republic of Congo to testify about the GOP lawmakers work shipping medicine to developing countries.

Beck was on the stand less than 10 minutes in all, detailing what she did during a summer program Stockman paid for with a charitable donation. She said the Summit, a two-week camp in Colorado run by a Christian organization, involved lectures and team building for youths before entering college.

Under cross examination by Assistant U.S. Attorney Melissa Annis, Beck acknowledged she was not familiar with Freedom House, a housing and training program for Capitol Hill interns.

Yes of course I blogged about it when Stockman announced he would accept Bitcoin for his campaign. I mean, come on. The defense is expected to take just a couple of days, with the case wrapping up early next week. I can’t wait to see what this other witness has to say.

Stockman trial update: Tanning salons and dolphin boat rides

I love this trial so much. It’s the gift that keeps on giving, about the grifter we all deserve.

Best newspaper graphic ever

Former U.S. Congressman Steve Stockman spent $450,000 in charitable funds from an East Coast philanthropist on personal expenses including dolphin boat rides, tanning salons, a kennel bill, a new dishwasher and airline tickets to the African nation of Sudan, according to an FBI forensic accountant who testified Wednesday in Stockman’s fraud trial.

In all, the ex-Republican lawmaker from Clear Lake is charged in a federal indictment with siphoning off $1.25 million in donations meant for charitable causes, between 2010 and 2014, through a series of bank transfers, to pay personal and campaign costs.

Stockman’s defense lawyers counter that while Stockman may not have spent his funds wisely, he didn’t break the law. His defense team has grilled a series of prosecution witnesses from the IRS and FBI about why they didn’t investigate the major donors about the intent behind their major transactions.

[…]

An FBI accountant followed the path Rothschild’s money took in Stockman’s possession, including credit card bills for trips, department store expenses and SkyMall purchases.

See here, here, and here for earlier updates. The only thing better than the witness testimony has been the defense’s explanations of the testimony. Who among us hasn’t accidentally used a few thousand dollars intended for charity – really, more like “charity” in this case – for kennel bills and Skymall purchases? Could happen to anyone, really.

And that was just Wednesday. Here’s Thursday.

Thomas Dodd, a top aide to former U.S. Congressman Steve Stockman, spent six hours on the witness stand at his ex-boss’ fraud trial Thursday, explaining how he was instructed to land big donations from heavyweight contributors, help funnel that money into shell accounts and then assist in an elaborate coverup.

[…]

He told the jury his role during Stockman’s political ascent was to help set up meetings with some of the country’s biggest GOP donors. During part of this time, Dodd himself was often deep in debt and lived for a time in a former motorcycle repair shop in Webster that served as Stockman’s campaign headquarters.

Dodd testified about a series of donations, money transfers and trips spanning the globe that he made on Stockman’s behalf.

There were two conservative megadonors who wrote the checks that prosecutors say financed the spending spree. The biggest was Richard Uihlein, a shipping supplies magnate from the Chicago area who gave $800,000, and Stanford Z. Rothschild Jr., a Baltimore money manager who died in 2017, who gave $450,000. Prosecutors say the donations went to charities controlled by Stockman, some of which did not qualify as nonprofits despite he promises to donors.

Dodd helped arrange meetings with donors, attended them with Stockman and followed up on collecting the funds. He testified that Stockman repeatedly assured Uihlein his donation would go toward establishing Freedom House, a house on Capitol Hill that would be converted as a residence and training center for young conservatives.

Similarly, Dodd said, Stockman promised Rothschild at the meetings and in related correspondence his foundation’s money would be spent targeting conservative voters with tabloid-style mailings that would promote their shared conservative policy agenda.

Within days of depositing Rothschild’s donation checks, Stockman began paying off old credit card bills, Dodd testified.

[…]

After Uihlein’s $350,000 donation cleared the bank, Stockman asked Dodd and Posey, the other aide who pleaded guilty, to donate to his campaign account, according to Dodd’s testimony. Stockman said he couldn’t donate to himself as a sitting congressman, but he would give his aides money to write him checks, Dodd said.

Dodd testified that he told Stockman he also couldn’t make a donation under federal election law, explaining to Stockman he had just learned in the House ethics training that staffers cannot donate to their member of congress.

Dodd said Stockman told him not to worry.

“Mr. Stockman explained that no one would find out, and if someone did find out about it, he would take the fall,” Dodd said.

First of all, like I said, “charity”. Second, I don’t know that this qualifies as an “elaborate” coverup. The villains in the Scooby-Do cartoons had more intricate schemes. More likely to succeed, too. There’s a punchline to this story that I won’t spoil – go click over and read the Chron article to the end.

I don’t see any updates from Friday, but Courthouse News has more on Dodd’s testimony, including this curious exchange from the cross examination:

During cross-examination, Stockman’s attorney tried to portray Stockman as an ambitious, hapless man who often gets in over his head.

“Would you agree that Stockman can be prone to biting off bigger projects than he can chew?” Buckley asked.

“That’s correct,” Dodd said.

“Would you agree that Stockman, in many situations, or in some situations, has genuinely good ideas that somehow fail in the follow-through stage? You agree with that, right?” Buckley asked.

“I don’t know if I agree with that characterization,” Dodd said.

“Do you disagree?”

“Yes.”

“Explain, sir, why you disagree.”

“Because I’ve known Mr. Stockman for a fair number of years. I met him after he ran for Congress the first time, but my understanding was that he did something significant with organizing to get elected to Congress the first time,” Dodd said.

He continued: “When I was at the Leadership Institute he mobilized 1,000 college groups; he had 100 people working for him that were organizing these groups. It was a monumental task and it was a significant achievement for the organization. So I wouldn’t characterize that he has not been successful in organizing things that people didn’t think were possible.”

Stockman first worked with Dodd from 2005 to 2007 at the conservative Leadership Institute, as director of its campus leadership program.

You know that old adage about lawyers not asking questions they don’t already know the answers to? This is an example of why that’s a thing. There’s still another week of this trial to go. My cup runneth over. TPM has more.

JP Hilary Green resigns

Wise decision.

The Harris County justice of the peace accused of paying prostitutes for sex, abusing drugs while on the bench and sexting a bailiff officially resigned this week – although her attorney says it has nothing to do with the claims against her.

Hilary Green had already been temporarily suspended by the Texas Supreme Court and was headed for trial next month to determine her judicial future. But on Tuesday – even as lawyers worked to prepare for the upcoming Austin court date – the long-time Precinct 7 jurist sent a letter to Harris County Judge Ed Emmett, announcing her decision to leave the bench.

“Effective immediately, please allow this letter to serve as my formal resignation from my position as Justice of the Peace, Precinct 7, Place 1,” Green wrote. “Due to the unexpected death of my father and my mother’s newly diagnosed illness, it is important for me to focus all my attention on my family.”

Green’s attorney, Chip Babcock, emphasized that his client’s departure was motivated solely by personal considerations.

“It is totally unrelated to the charges which she continues to deny and contest,” he told the Chronicle Thursday. The pending proceedings to unseat her – and lack of income, given her suspension without pay – took a toll on her, according to Babcock.

[…]

In light of Green’s resignation, county commissioners are expected to appoint a replacement who will serve until November 2018. Voters in the November election will then decide on her successor. Her term would have expired in 2020.

The political parties will in the coming months determine which candidates will be on the ballot.

Precinct 1 Commissioner Rodney Ellis will likely select the interim appointment.

“Commissioner Rodney Ellis will consult with community leaders and legal experts to select a qualified candidate,” an Ellis spokesman said. “He plans to have a candidate to submit to Commissioners Court for approval on April 10.”

See here and here for the background. I’m mostly interested in what happens next, as I don’t think we’ve seen a situation exactly like this recently. Robert Eckels, Paul Bettencourt, Charles Bacarisse, Jerry Eversole, and most recently Adrian Garcia all resigned from county offices, but they did so in odd-numbered years, meaning there was plenty of time for people to file and run in the primaries for those offices. Jack Abercia already had a slate of primary opponents when he announced his intent to not run for re-election, prior to his tour of the criminal justice system. El Franco Lee died in January of 2016, a year in which he was on the ballot and was the only person who had filed for his position. Due to the timing of that, he remained on the primary ballot, then we went through that process to replace him as the nominee via the precinct chair process.

Hilary Green was not scheduled to be on the ballot this year; she was elected to a four-year term in 2016. The primaries are over, so that’s not an option. I suppose we could have a special election as we would for a legislator who left office mid-term, but the phrasing of that “political parties will…determine which candidates will be on the ballot” sentence suggests we’re in for another precinct chair selection process. I wanted to be sure about that, so off to the Texas Statutes website I go. First, in the case of the interim appointment, Section 28 of the Texas Constitution says:

Sec. 28. VACANCY IN JUDICIAL OFFICE. (a) A vacancy in the office of Chief Justice, Justice, or Judge of the Supreme Court, the Court of Criminal Appeals, the Court of Appeals, or the District Courts shall be filled by the Governor until the next succeeding General Election for state officers, and at that election the voters shall fill the vacancy for the unexpired term.

(b) A vacancy in the office of County Judge or Justice of the Peace shall be filled by the Commissioners Court until the next succeeding General Election.

Clear enough. But how is that next succeeding General Election to be conducted? I turn to Election Code, Title 12 “Elections to fill vacancy in office”, Chapter 202 “Vacancy in office of state or county government”:

Sec. 202.001. APPLICABILITY OF CHAPTER. This chapter applies to elective offices of the state and county governments except the offices of state senator and state representative.

Sec. 202.002. VACANCY FILLED AT GENERAL ELECTION. (a) If a vacancy occurs on or before the 74th day before the general election for state and county officers held in the next-to-last even-numbered year of a term of office, the remainder of the unexpired term shall be filled at the next general election for state and county officers, as provided by this chapter.

(b) If a vacancy occurs after the 74th day before a general election day, an election for the unexpired term may not be held at that general election. The appointment to fill the vacancy continues until the next succeeding general election and until a successor has been elected and has qualified for the office.

[…]

Sec. 202.004. NOMINATION BY PRIMARY ELECTION. (a) A political party’s nominee for an unexpired term must be nominated by primary election if:

(1) the political party is making nominations by primary election for the general election in which the vacancy is to be filled; and

(2) the vacancy occurs on or before the fifth day before the date of the regular deadline for candidates to file applications for a place on the general primary ballot.

[…]

Sec. 202.006. NOMINATION BY EXECUTIVE COMMITTEE. (a) A political party’s state, district, county, or precinct executive committee, as appropriate for the particular office, may nominate a candidate for the unexpired term if:

(1) in the case of a party holding a primary election, the vacancy occurs after the fifth day before the date of the regular deadline for candidates to file applications for a place on the ballot for the general primary election; or

(2) in the case of a party nominating by convention, the vacancy occurs after the fourth day before the date the convention having the power to make a nomination for the office convenes.

(b) The nominating procedure for an unexpired term under this section is the same as that provided by Subchapter B, Chapter 145, for filling a vacancy in a party’s nomination, to the extent that it can be made applicable.

Chapter 145 was the governing law for the process used to fill El Franco Lee’s spot on the ballot, and then subsequently those of Rodney Ellis and Borris Miles. Here, Section 202.004 cannot apply, as the primary has already taken place, so Section 202.006 is the relevant code. And so we get to experience another precinct chair convention to pick a nominee – unlike 2016, when no Republican had filed for Commissioners Court Precinct 1, the GOP will get to name a candidate as well. Well, someone will get to experience that. I am thankfully in JP Precinct 1, not JP Precinct 7, so I’m spared it this time. I’ll follow it, and time permitting I’ll be there when it happens to observe, but I get to be a bystander this time, and that’s fine by me. Godspeed to those of you who get to make the call.

The prosecution keeps piling on Steve Stockman

From Monday:

Best newspaper graphic ever

A fundraising director who quit and returned most of his salary after four days as an employee of ex-U.S. Congressman Steve Stockman characterized the work environment as “horrific” for Washington, D.C., interns, according to his testimony in the second week of the former Republican lawmaker’s fraud trial in a Houston federal court.

A crew of volunteer interns worked in a cramped office making as many as 2,000 fundraising calls all day — at a lobbying firm rather than the congressman’s office — and had to hustle to find their own summer lodging, according to Sean McMahon, the short-lived fundraising director.

“The situation with interns is horrific,” McMahon wrote — before the interns began at the lobbying firm office — in an email entered as evidence in the case. “Every single one of them believes they are having a normal ‘Hill internship.’ This is not the case.”

[…]

Among more than a dozen witnesses Monday was Stockman’s former secretary on Capitol Hill, Kristine Nichols. She said before she started at his office the congressman said she had to take a mandatory ethics course. Everyone did.

Nichols testified she asked Stockman, who had been a friend before she was hired, whether he took the course, too.

“He said he wasn’t planning to go because then they might hold him to the rules,” she said.

Ouch. See here and here for earlier updates. I’m not sure what this was intended to establish other than the fact that nobody seems to like Steve Stockman, but I’m here for it anyway. There was some more testimony about his attempt to “sting” State Rep. James White as well.

And from Tuesday.

Former U.S. Congressman Steve Stockman recruited top officials from the Egyptian defense ministry to help solicit a $30 million donation from an international cement company facing legal trouble, according to testimony in the second week of the GOP lawmaker’s federal corruption trial.

Stockman claimed the funds would go toward educating Americans about the historic importance of Egypt and the Middle East, or perhaps toward shipping medical supplies to Egypt and Africa, a witness testified Tuesday.

The hefty donation from CEMEX, an international cement company founded in Mexico, apparently never materialized. But prosecutors say the aide who helped arrange Stockman’s trip to Egypt to meet with officials was paid with money from another donation Stockman solicited for another of his pet causes. He had told an investor he wanted to establish Freedom House, a facility for conservative Capitol Hill interns in Washington, D.C.

The government lawyers say these trips and expenditures demonstrate how Stockman took hundreds of thousands of dollars in charitable donations, and rather than spending it as promised, he used it to enrich himself. The former GOP lawmaker from Clear Lake is on trial for 28 criminal counts related to syphoning off major donation funds to cover his own personal and political debts in what the government lawyers called a “white collar crime spree.”

But Stockman’s defense team contends that testimony about the Egypt trip and about donation money Stockman funneled into a surveillance project tracking a presumed political opponent at the state capitol amount to meritless theatrics aimed at swaying the jury.

“It’s a time-consuming effort to make Mr. Stockman look like he’s involved in a bunch of shady stuff, none of which is charged in the indictment,” said attorney Sean Buckley.

If your defense is that the prosecution is spending too much time on shady stuff your client did that he wasn’t charged with, I’m thinking you have a tough road ahead. All this and the two Stockman aides who took pleas still haven’t testified.

The Stockman trial gets weird

I mean, with Steve Stockman you have to expect some weird crap, but I didn’t see this coming.

Best newspaper graphic ever

The American Phoenix Foundation — a now-defunct conservative activist groupknown for attempting undercover stings of lawmakers and lobbyists — planted an intern in a Texas state lawmaker’s office during the 2013 legislative session in an effort to expose misdeeds, testimony in federal court revealed Thursday.

Shaughn Adeleye, testifying in Houston in the federal fraud case against former U.S. Rep. Steve Stockman, said in court Thursday that he was planted in the office of state Rep. James White to obtain footage of the Hillister Republican engaged in “fraud and abuse” and also in more mundane activities like cursing or failing to tidy his messy car, according to Quorum Report.

Stockman funded that effort in an attempt to uncover “salacious” gossip about a perceived political rival, according to testimony Thursday, the Houston Chronicle reported. The former congressman stands accused of illegally using charitable donations to cover political and personal expenses, among a total of 28 criminal charges.

Stockman was concerned that White would give up his state House seat to challenge him for Congress. “Republicans love black conservatives. I’m worried,” Stockman fretted in a text to a political ally, according to testimony Thursday.

Adeleye told prosecutors Thursday that he accepted the undercover job because he was told he’d be ferreting out corruption, but it ultimately became clear his supervisors were hoping for embarrassing material about White, who is the only black Republican in the Legislature. He was told “a good video of [White] saying anything crazy would be ideal,” according to an email shown in court.

“These were just such odd requests,” Adeleye said Thursday.

The American Phoenix Foundation filmed Texas lobbyists and lawmakers back in 2015, and the group’s membership has ties to James O’Keefe, a conservative political activist infamous for his shady tactics.

See here for yesterday’s update. I recall State Rep. White’s name being bounced around as a possible CD36 candidate for a hot second or two, but it never gained any traction, in part because he wasn’t interested and in part because Stockman went off on his quest to unseat Sen. John Cornyn in that primary. Given that Stockman basically cruised to a win in the crowded 2012 race for CD36 on the strength of his residual name ID and that James White was a two-term State Rep who I’d venture to guess was widely unknown, this hair-brained scheme to discredit him – which among other things would surely have done wonders for Rep. White’s name ID – shows an impressive level of paranoia, even for the likes of Stockman. The scheme itself makes Jerry Lundegaard and Carl Showalter look like super geniuses, and I am here for it. This trial has more than lived up to my expectations, and the defense hasn’t even begun to present its case. The Chron – check the URL for that story, it’s pure gold – has more.

Stockman trial update

From Tuesday:

Best newspaper graphic ever

“This case is the story of how the defendant over the course of four years exploited the trust and charity of others to pull off a massive scam,” Assistant U.S. Attorney Robert Heberle, of the Justice Department’s public integrity division, told jurors during opening statements in the federal corruption trial.

“It is the story of a man who thinks that the rules are for other people,” Heberle said. “And it is the story of how, dollar by dollar, investigators followed the money and unraveled the defendant’s fraud scheme.”

Heberle said Stockman pulled off the scheme by cheating federal election law, lying to donors and blaming mistakes on his staff.

Heberle outlined several major donations Stockman, a trained accountant, solicited on behalf of charitable groups he was involved in, and said the evidence would show that with the help of two aides, Stockman quickly moved that money from one account to another and spent it to cover personal and campaign expenses.

Defense attorney Sean Buckley, however, had a drastically different take on the same series of financial transactions.

“The core is question of whether Mr. Stockman lied with the intent to steal money” from two major donors, Buckley said.

Buckley described his client as a scrappy, naive and idealistic outsider who lost track of his finances.

See here for the previous update. Just as a reminder, that “scrappy, naive outsider” was first elected to Congress in 1994, and the crimes he is accused of stem from his 2012 House campaign and his unsuccessful 2014 primary bid against Sen. John Cornyn. That’s an awfully long time to remain naive.

From Wednesday:

Former U.S. Congressman Steve Stockman and two aides used a major charitable donation to a cover credit card debt, two spots at a Christian summer camp, a friend’s stint in rehab and a funeral for employee’s wife, according to testimony Wednesday from an FBI agent at Stockman’s federal fraud trial in Houston.

But they didn’t spend any of the $350,000 gift — as Stockman had promised he would at a pitch meeting with a conservative Midwestern mega-donor — on the renovation of a house near Capitol Hill in Washington, D.C., to be used as living quarters and a training facility for young conservatives.

A series of witnesses called by federal prosecutors in the second day of Stockman’s corruption trial traced the path of that $350,000 donation, testifying that Stockman and his associates spent it on an extensive array of expenses, which the donor said he never meant to cover.

[…]

[Conservative megadonor Richard] Uihlein said after spending less than an hour meeting with Stockman at his corporate offices in Pleasant Prairie, Wis. on Jan. 24, 2013, he wrote a check from the Ed Uihlein Family Foundation to the newly elected representative’s charitable foundation for $350,000.

One month prior, at the urging of Larry Pratt, CEO and founder of Gun Owners of America, Uihlein had donated $5,000 to help pay for a group of home-schooled children to be in Washington for Stockman’s swearing in ceremony.

And a year after he made the Freedom House donation, Uihlein would write a $450,000 check to cover a mailing in Stockman’s unsuccessful bid to unseat U.S. Sen. John Cornyn in the Republican Primary, court records in the case show.

And now the GOP legislator and an aide, Thomas Dodd, had arrived with an impressive brochure about Freedom House and asked for money to create their training center for young congressional interns. Uihlein, the CEO of a moving supplies empire, said he liked the idea of helping cover the house’s renovation.

“I felt they were trustworthy,” Uihlein told the jury, under questioning from a federal prosecutor. “And I trusted that they would spend the money the way they said.”

He said he understood from the brochure that Stockman was soliciting the money for a charitable cause through a 501c3 organization, and stressed he would not have given it if he knew it would be spent on the former lawmaker’s personal and campaign costs.

This post has more about the Stockman/Uihlein relationship. Uihlein may have been duped, but he’s far from innocent, or sympathetic. As for Stockman, his defense is to blame everything on the two former aides that have since taken plea deals for their actions in this saga. One of those aides, Jason Posey, has been an associate of Stockman’s since his first Congressional term in the 90’s. Like I said, that’s an awfully long time to remain naive. The prosecution still has more to present, and then we get to the defense, which ought to be amazing. Stay tuned.

Steve Stockman’s trial has begun

Hope you have your popcorn ready.

Best newspaper graphic ever

A year after he was charged with running a wide-ranging scheme to divert charitable donations to pay for campaign and personal expenses, former U.S. Rep. Steve Stockman is scheduled to begin a month-long trial Monday in a Houston federal courtroom.

Jurors could hear testimony in Chief U.S. District Judge Lee H. Rosenthal’s courtroom from about 75 witnesses and sift through thousands of pages of evidence in what prosecutors have characterized as a “white-collar crime spree,” according to court documents.

[…]

“The evidence at trial will show that over a four-year period (Stockman) used a series of sham nonprofit entities to raise over $1 million in fraudulent donations,” according to trial brief filed recently by Justice Department prosecutor Ryan Ellersick, who alleged the former congressman “funneled the fraud proceeds through a web of shell bank accounts before ultimately using the funds to pay for personal expenses and to illegally finance his campaign for federal office.”

Stockman, 61, a resident of Clear Lake, faces 28 criminal counts, including allegations of mail and wire fraud, conspiracy, making false statements to the Federal Election Commission, making excessive campaign contributions, money laundering and filing a false tax return.

Stockman’s lawyer, Sean Buckley, said he expects his client to be fully vindicated. He plans to argue that the upstart lawmaker, who opposed big government and failed to unseat Sen. John Cornyn in the 2014 Republican primary, did nothing intentionally wrong.

“We are absolutely adamant that he didn’t intend to defraud donors or anyone else,” Buckley said. “There’s no allegation of an extravagant lifestyle. He was always one step away from the poverty line.”

See here for the previous update. Gotta love the “I didn’t mean it!” defense. Jury selection is underway. I’ll be checking in periodically as we go.

Stockman’s trial set to start

Get ready.

Best newspaper graphic ever

Former U.S. Congressman Steve Stockman stood before a federal judge in a mostly empty Houston courtroom Friday and confirmed he wants a jury to decide if he diverted nearly $1.25 million in charitable donations intended for conservative organizations.

Chief U.S. District Judge Lee H. Rosenthal first determined that he had not entered into plea negotiations with federal prosecutors, and then asked, “Mr. Stockman, I assume you want to go to trial?”

“Yes, your honor,” he replied.

Stockman, whose trial is now set for March 19, has been free on $25,000 unsecured bond. The judge made a point to insist that he be present in court for the entire proceeding. He assured her he would.

[…]

Defense attorney Sean Buckley said his client is confident and he’s ready to address and refute the allegations.

“As they always say, there are two sides to every story and there are most certainly two sides to this one,” Buckley said.

Buckley said he plans to argue that the two aides pleaded guilty to better their own situations, not because they or Stockman are guilty or did anything wrong.

See here for some background. The aides in question are Jason Posey and Thomas Dodd, both of whom have already taken pleas. Stockman’s trial was supposed to have started in January, after having been delayed from June of last year. This time it looks like it may finally get going. I can’t wait.

Paxton and Paxton, Inc

How exactly is this not a conflict of interest?

Best mugshot ever

Attorney General Ken Paxton’s political campaign guaranteed a $2 million loan to help his wife fuel her bid for a state Senate seat in North Texas.

The Bank of the Ozarks loaned the money to Angela Paxton, a Collin County Republican, with the help of Ken Paxton’s campaign operating as a guarantor, according to the attorney general’s campaign spokesman. That means if Paxton’s wife’s campaign cannot pay the loan back, Ken Paxton’s campaign is responsible for paying off the debt.

“Attorney General Paxton is confident she is going to win and her campaign will be able to pay back the loan with interest,” said Matt Welch, a spokesman for the attorney general’s campaign.

Angela, a former guidance counselor, is running for Senate District 8, which sits north of Dallas. In the March 6 Republican primary election, she is running against Phillip Huffines, a former Dallas County GOP chairman and twin brother of Sen. Don Huffines, R-Dallas.

[…]

Justin Nelson, an Austin lawyer and Democrat, is running against him in the general election. Nelson’s campaign scoffed at the attorney general’s move to back the loan as “shocking but not surprising.

“This loan emphasizes the corruption of the political class. It’s not normal for the attorney general’s campaign to lend his wife’s campaign $2 million. It’s wrong,” said Nate Walker, Nelson’s campaign manager.

I mean, a bank loaning a couple million dollars to the chief law enforcement officer of the state to help with his wife’s campaign couldn’t possibly cause any ethical concerns, right? And while I’m sure the Paxton’s believe that God will provide for their lifestyle forever, what do you think might happen if Ken Paxton loses in November, or if he gets convicted before then? It may be a tad bit hard to raise that money to pay the bank back, especially if busking for his legal defense fund becomes a top priority. I might be a little peeved about this if I were a depositor at that bank. Oh, and as the Huffines campaign pointed out, if you had previously donated to Ken Paxton and you support Phillip Huffines in SD08, congratulations – your donation just help subsidize his opponent. Not like my heart is breaking for Phillip Huffines or any of his backers – you knew, or should have known, that Ken Paxton has the moral compass of a lesser Borgia family member – but this stuff does actually matter. And willingly or not, we’re all now soaking in it.

The price of disrespect

Greg Abbott makes another endorsement.

Rep. Wayne Faircloth

Gov. Greg Abbott on Tuesday endorsed the Republican challenger to Galveston state Rep. Wayne Faircloth, a move that is expected to deepen simmering divisions within the state Republican party.

In a new video, Abbott called Mayes Middleton a “principled conservative — a conservative who will be a tireless advocate for his constituents.”

“In the next legislative session, we have an opportunity to continue to pass reforms that make Texas even better,” Abbott said. “To do this, we need leaders who will work with me to advance a conservative agenda that will benefit every Texans our great state. That is why I am endorsing Mayes Middleton for state representative.”

Middleton is an oil and gas businessman and rancher from Chambers County and is a board member of the conservative Texas Public Policy Foundation.

Abbott’s endorsement of Middleton is his second of a GOP primary challenger to a Republican incumbent running for reelection to the Texas House. In November, he endorsed Houston businesswoman Susanna Dokupil, who is challenging state Rep. Sarah Davis, R-West University Place.

Like Campos, you may be wondering what’s up with that. Faircloth has no reputation as a Joe Straus/Sarah Davis “moderate”, and he hasn’t gone all maverick-y on bathroom bills or toll roads or whatever else. He’s basically a standard-issue Republican, more “conservative” than average by the Mark Jones method, at least in the last session. What does Greg Abbott have against him?

If that’s what you’re thinking, you’re not cynical enough.

Abbott started the week by endorsing Mayes Middleton, a conservative who until last year served on the board of the Texas Public Policy Foundation, over state Rep. Wayne Faircloth, R-Galveston, who irked the governor’s circle by supporting a ban on “pay for play” gubernatorial appointments of big political donors.

So there you have it. Don’t get between Greg Abbott and his sugar daddies. Greg Abbott will cut you.

Stockman aide takes a plea

The walls are closing in.

Best newspaper graphic ever

A longtime confidant and aide to former U.S. Rep. Steve Stockman pleaded guilty to Wednesday to fraud charges in a corruption scheme that also targeted the former congressman. The alleged scheme involved diverting hundreds of thousands of dollars — meant as contributions from conservative foundations — to fund political campaigns and cover personal expenses.

Jason T. Posey, a former campaign treasurer for Stockman, pleaded guilty before Chief U.S. District Judge Lee Rosenthal to one count each of wire fraud, mail fraud and money laundering. The government will presumably dismiss nearly a dozen additional charges and seek a reduced sentence if Posey agrees to cooperate with the government at Stockman’s trial.
He faces up to 45 years in federal prison and a fine of more than $4.8 million plus hundred of thousands of dollars in restitution, Rosenthal said. She set sentencing for Mar. 29.

He remains free on bond.

“My guy was a player, but he’s not the only player involved,” said Posey’s lawyer Phil Hilder. He accepted responsibility for his misdeeds and is prepared to cooperate, Hilder said.

[…]

[Stockman defense attorney Sean] Buckley said this week he believes that Posey and Dodd operated outside of Washington, D.C., on various political and non-profit projects that Stockman knew little about. The defense attorney contends his client trusted the pair to use contributions they received for the proper purposes.

“I will say that the evidence will show that Steve Stockman did not defraud any donors. He spent the funds in a way that he thought were in furthered the donors’ intentions. To the extent that (funds were diverted) he was either unaware of it or he misunderstood it,” Buckley said.

Stockman has said told the court he is innocent and a victim of a deep state conspiracy.

Buckley said he expects Posey to provide information against his former boss and mentor. Dodd has already pleaded guilty to two related conspiracy charges and has agreed to cooperate with prosecutors.

Hilder, who represents Posey, said, “I do not know what a ‘deep state conspiracy’ is, but I do know what constitutes a criminal conspiracy.”

“Mr. Posey freely and voluntarily admits being involved in criminal activity that is the subject of the indictment,” he said. “By pleading guilty at this stage of the proceedings, Mr. Posey accepts his responsibility for his misdeeds and seeks to move forward becoming a productive member of society.”

See here for a good overview of this saga. Jason Posey returned to the US from abroad back in May, and I presume has been talking to the feds for some time. Another former Stockman aide, Thomas Dodd, pleaded guilty in March to two related conspiracy charges and has already agreed to testify. The trial, originally set for September, will begin January 29. Get your popcorn ready, this is going to be amazing.

Ethics, schmethics

This little exchange says so much about our weak and insecure Governor.

Rep. Sarah Davis

The fireworks began with a press conference called by GOP Rep. Sarah Davis, chair of the House Committee on General Investigating and Ethics. Davis, flanked by both Democratic and Republican members of the committee, noted that Abbott had made ethics reform an “emergency” priority in the past two regular sessions. Though it’s not currently on the agenda for the special session this summer, she said the need for reform is greater than ever.

As an example, the Houston-area Republican said she is moving forward this week with ethics legislation — including a bill that would close a major loophole allowing state lawmakers during special sessions to hit up contributors for campaign cash at the same time they’re considering legislation that could affect those donors’ interests.

“I think we need to go ahead and close that loophole,” Davis said.

Such fundraising is illegal during regular sessions, under the theory that lawmakers shouldn’t be simultaneously casting votes and taking campaign money. But there is no such ban during these 30-day special sessions called by the governor. House Speaker Joe Straus and Lt. Gov. Dan Patrick, both Republicans, have voluntarily pledged not to fundraise during this summer’s special session, but Abbott continues to seek donations in email solicitations.

Davis was joined by Rep. Lyle Larson, R-San Antonio, who took a more direct slap at the governor. He said he is again pushing a bill attacking what he calls a “pay for play” system in the governor’s office when it comes to appointments to state boards and commissions.

Larson’s legislation would limit the amount of money an appointee could give a governor. Donors who give more than $2,500 would be ineligible to serve, though Larson said he’s considering raising the amount to $5,000 and putting the effective date as 2022 in a bid to garner Abbott’s support.

Larson said donors who give amounts well into six figures can receive the most prestigious appointments — such as spots on a major university’s board of regents. He said Abbott and his predecessors, both Republican and Democratic, have used appointments to attract huge sums for their campaigns.

“I think it’s imperative that if we control both the legislative and the executive branch of government that we should reform the most egregious ethics violations we’ve got in the state, and that’s where people have to pay large sums of money to get appointed to highly coveted seats,” Larson said.

Speaker Straus agrees with Reps. Davis and Larson. What about Greg Abbott?

Abbott spokesman John Wittman, minutes after the press conference concluded, blasted the two lawmakers in a written statement.

“Instead of working to advance items on the special session agenda that could reform property taxes, fix school finance, increase teacher pay and reduce regulations, Reps. Davis and Larson are showboating over proposals that are not on the Governor’s call,” Wittman said. “Their constituents deserve better.”

So very touchy. Let’s put aside for a moment the fact that these proposals are perfectly reasonable on their merits and focus on the fact that Greg Abbott, who controls the special session agenda, says we can’t talk about them until the Lege passes the entire 20-item agenda he has already laid out. Which means that Abbott is saying that his bizarre obsession with trees and his insistence on overriding all kinds of local ordinances is more important than ethics reform, which by the way was something that he had once labeled an “emergency” priority. I’d be hypersensitive about this, too.

Judicial Conduct commission suspends JP Hilary Green

Bam!

The Texas Supreme Court on Friday issued an order to suspend Harris County Justice of the Peace Hilary Green from office immediately based on allegations that Green illegally abused prescription drugs, sent sexually explicit texts to a bailiff while on the bench and paid for sex.

It’s the first time any Texas judge has received a temporary suspension in at least a decade in a contested matter, the commission says.

The state supreme court had been asked to take the unusual emergency action by the State Commission on Judicial Conduct, which in May presented a 316-page document in support of an immediate suspension. That document summarized evidence it had collected in its own investigations of previously secret complaints made against Green from 2012 to 2015.

The commission alleged that in its own closed proceedings, Green already had admitted to many allegations against her, including illegally obtaining prescription drugs and using marijuana and Ecstasy while she was presiding over low-level drug possession cases involving juveniles in her south Houston courtroom.

One of the most serious allegations, the commission says, is that Green engaged her “assigned bailiff in an effort to illegally obtain prescription drugs.”

The commission argued that the evidence — and Green’s own admissions — more than justified Green’s immediate removal from her post as a jurist for Harris County Precinct 7, Place 1 while the state watchdog agency prepared for a longer civil trial required under Texas law to remove Green — or any judge — from elected office.

“Judge Green’s outright betrayal of the public’s trust warrants her immediate suspension pending formal proceedings,” the commission had argued.

Green’s attorney, Chip Babcock, argued in a response to the supreme court that voters themselves had a chance to review and “forgive” many of the commission’s allegations, some of which were published in Houston Chronicle stories, before they chose to re-elect Green in 2017.

See here for the background, with the warning that the more you read the more you will want to take a shower afterwards. While a lot of this information was known before the 2016 primary, I’d argue that most, though not all, of it was allegations of behavior that was merely tawdry rather than illegal. As such, I disagree with attorney Babcock that the voters had a chance to “review and forgive” the record. But even if one believes that the voters were sufficiently informed, I don’t see how that mitigates against this suspension or the potential subsequent removal from office. Elections have consequences, but so does criminal behavior. If the Commission votes to remove Judge Green, she can appeal as the process allows, but appealing to the voters as a defense will fall flat to me.

We should all have friends like these

It’s like they say: Friends help you move. Real friends help you move dead bodies. Really real friends help pay for your criminal defense.

Best mugshot ever

Texas Attorney General Ken Paxton, nearly two years into his fight against state securities fraud charges, is continuing to get plenty of help from his friends to cover his soaring legal bills.

The Republican accepted nearly $218,000 in 2016 earmarked for his legal defense from “family friends” and others who Paxton says are exempted from state bribery laws that bar elected officials from receiving gifts from parties subject to their authority, according to a newly-released financial disclosure statement.

Those donations are on top of more than $329,000 Paxton accepted for the same cause in 2015.

Steven and Carrie Parsons of Dallas made last year’s biggest contribution, $75,000. They have also donated thousands of dollars to Paxton’s political campaign.

Alfred and Janet Gleason of Green Valley, Ariz. made the second biggest legal fund donation in 2016: $50,000, according to the filing. Ray and Ann Huffines also gave Paxton $10,000. Ray’s brother is state Sen. Don Huffines, R-Dallas.

As attorney general, Paxton’s authority could extend broadly, so in his disclosure he cited an “independent relationship” exception that allows gifts from family members and those “independent” of an officeholder’s “official status.”

“All gifts for legal defense were conferred and accepted on account of a personal, professional, or business relationship independent of General Paxton’s official status,” Paxton’s disclosure form states.

In all, 15 people or couples chipped in for Paxton’s legal defense last year. And one entity called Annual Fund Inc. contributed $10,000. It funnels money to groups that make independent political expenditures — political action committees that can spend unlimited amounts of cash without disclosing where it came from. Annual Fund Inc, according to Bloomberg, primarily gives to a group called Citizens for the Republic, whose national chairman is conservative media personality Laura Ingraham.

Yeah, no possibility of conflict of interest in any of this. Move along, citizen, nothing to see here.

Former Stockman aide returns to US

The gang’s all here.

Best newspaper graphic ever

Federal agents quietly arrested Jason Posey, a former congressional aide who’d been wanted for two months on charges that he helped ex-U.S. Rep. Steve Stockman carry out a criminal conspiracy to bilk millionaire donors, violate elections laws, and illegally divert hundreds of thousands in campaign cash.

Posey and Stockman were both indicted March 28 on 28 federal charges including mail and wire fraud, conspiracy, making false statements to the Federal Elections Commission, excessive campaign contributions and money laundering.

Stockman was arrested at the airport on his way out of the country by federal agents. But it appears government agents spent weeks negotiating with Posey – who’d been living abroad in the Middle East for more than two years.

Posey voluntarily returned to Houston to turn himself in on May 23, according to Philip Hilder, a Houston lawyer appointed to represent Posey.

“He voluntarily came back to the United States to face the allegations levied against him,” said Hilder, who is known for his work representing whistle-blowers and other witnesses and defendants in high-profile white-collar crime cases, including Enron.

In his recent federal court appearance, Posey pleaded not guilty to all 28 charges, according to federal court records. Stockman also pleaded not guilty.

[…]

Another former Stockman aide, Thomas Dodd, pleaded guilty in March to two related conspiracy charges and has agreed to cooperate with prosecutors.

But in indictments, prosecutors describe Posey as Stockman’s primary accomplice . State and county business filings show that Posey set up some of the companies that federal prosecutors say were used to divert campaign contributions through suburban Houston post office boxes and an array of bank accounts.

See here for the background. As noted in that earlier post, Posey has been a close associate of Stockman’s for a long time. I can’t wait for this trial to get underway.

Culberson’s stock purchase

Interesting.

Rep. John Culberson

In a heated confirmation hearing for then-Georgia U.S. Rep. Tom Price for Secretary of Health and Human Services, Democrats raised pointed questions about the congressman’s trading in stocks of companies regulated by the House committees he serves on.

One in particular, Innate Immunotherapeutics, a small Australian biotech firm, generated particular attention because it had sold nearly $1 million in discounted shares to two House members: Price and New York Republican Chris Collins, who turned out to be the firm’s biggest investor.

Amid the controversy in January, Price said everything he did was “ethical, aboveboard, legal and transparent,” though he agreed to divest himself of that and other stocks that could raise ethics questions.

Collins also denied any wrongdoing, though he is now reportedly being investigated by the Office of Congressional Ethics for his role in touting the stock to investors from the halls of Congress.

But the public heat did not dissuade two Texas congressmen from quietly buying into the Australian company Jan. 26, two days after the Price hearing before the Senate Finance Committee, records show. John Culberson of Houston and Mike Conaway of Midland, are among at least seven Republican House members who have invested in the company. The two Texans bought in at what was then close to a 52-week peak in the stock price on the Australian Securities Exchange. The transactions were first reported by Politico.

[…]

Culberson’s stock buy, which he valued at between $1,000 and $15,000, was particularly unusual, because by the congressman’s own account, he is not an active stock trader.

Beside his stake in Innate Immunotherapeutics, his most recent financial reports to Congress list holdings in Apple stock and some past investments in “military collectibles.”

In a statement, Culberson offered this motive for the stock purchase in the fairly obscure foreign company that works to develop treatments for multiple sclerosis: “One of my father’s best friends died of MS, and we have a family friend with multiple sclerosis, so I’m always on the lookout for breakthroughs on treating MS. This one looks promising. I rarely buy or sell stock.”

He declined interview requests this week and staffers offered no details about the exact amount and timing of his stock purchase, which coincided with that of Conaway. Nor have they explained why Culberson waited until April 6 to report the stock buy, well beyond the 30-day window required to inform the House clerk’s office.

Through a spokeswoman, however, Culberson dismissed Democrats’ accusations that he might have used non-public information.

“Representative Culberson originally learned of the company through press reports,” his spokeswoman, Emily Taylor, said Thursday. “He continued his own research on their promising MS treatment, which is an issue important to him, and that led to the purchase.”

I don’t know how big a deal this is. The circumstances are fishy and Culberson’s explanation is weak, but unless Tom Price gets into a heap of trouble for his actions, I don’t see much happening to Culberson. That said, having stuff like this turn into blaring headlines seems to me to portend a rough campaign season. If nothing else, having all these candidates and a national focus on CD07 guarantees that every little thing will be news, and that’s not something Culberson has had to deal with lately. Better get used to it.

Judicial Conduct commission seeks suspension of JP Hilary Green

Holy moley.

In an explosive and rare move, Texas judicial authorities on Wednesday asked the Texas Supreme Court to suspend a Harris County justice of the peace accused of paying prostitutes for sex, misusing illegal drugs and ruling unethically in favor of a convicted con man.

The sordid list of accusations against Judge Hilary Green, Justice of the Peace in Houston’s 7th Precinct, was contained in a 316-page court filing by the State Commission on Judicial Conduct to the state’s highest court.

The document describes four separate judicial misconduct complaints against Green made between 2012 and 2016 that were previously not released under commission rules.

In her response to the commission, Green admitted to many of the allegations, including illegally obtaining prescription drugs and using marijuana and ecstasy at the same time she was presiding over low-level drug possession cases involving minors in her court, the records show. She also admitted to sexting a bailiff while on the bench.

“Judge Green’s outright betrayal of the public’s trust warrants her immediate suspension pending formal proceedings,” the filing says.

The Texas Supreme Court has not yet taken action on the suspension request and there is no deadline for it to rule.

The commission filing confirms that the latest misconduct complaint against Green arrived in 2016 from a man who Green has admitted was her extramarital lover, Claude Barnes. Other allegations were made by Green’s ex-husband, former Houston Controller Ronald Green, as part of their divorce.

Green has not responded to the commission’s request she be suspended. But her attorney, Chip Babcock, said he plans to argue that Green cannot be removed from office for alleged misconduct that occurred prior to November 2016, when she was re-elected to office. He argues that her re-election occurred after most of the allegations against her were made public in articles in the Houston Chronicle, or by her opponents during the campaign.

In support of his argument, Babcock cited a Texas state law that says “an officer may not be removed … for an act the officer committed before election to office.”

Others have interpreted that statute to mean before a public official initially took office, which in Green’s case was in 2007.

But Babcock emphasized in an interview that allegations about Green’s illegal drug use and sexual misconduct came to light in 2015 and 2016 from “her ex-husband and an admittedly bitter and angry former companion.” Babcock said that during Green’s 2016 campaign, the bulk of the allegations against her “were aired publicly and after they were aired publicly, Judge Green ran in a contested Democratic Primary against a number of candidates opposing her and defeated them with a substantial amount of the vote and subsequently won the general election.”

There’s more, so read the whole thing, though if you’re like me you’ll feel a little dirty afterward. Some of what is in this story stems from Hilary and Ronald Green’s ugly and contentious divorce, and some of it was in the news prior to that. I have no idea what the State Commission on Judicial Conduct will do, and I don’t know enough to assess the legal merits of attorney Babcock’s defense strategy; for what it’s worth, it sounds sketchy to me, but again, I Am Not A Lawyer.

There will be a political effect from all this one way or another, maybe soon and maybe later depending on what the SCJC does. I don’t want to think too much about that right now. People often wonder in situations like this how someone with that kind of baggage can get elected. Voters vote based on the information they have, and having more information of this kind available to them doesn’t always have the effect one thinks that it might. Sometimes people file unsavory revelations about a candidate as “negative campaign stuff” and tune it out, and sometimes they decide that other factors in a given race are more important. Surely if there’s one thing we’ve learned from the 2016 election season it’s that the people will sometimes make confounding choices.

Stockman trial delayed

Alas.

Best newspaper graphic ever

Former U.S. Rep. Steve Stockman’s trial on federal corruption charges has been pushed back to next year.

The trial, originally scheduled to begin June 5, will now kick off on Jan. 29, 2018, according to an order issued Wednesday by Chief U.S. District Judge Lee Rosenthal.

Stockman’s lawyer had requested the delay last week, asking the judge to put off the trial until “at least January 2018.” The motion to push back the trial had been unopposed.

The lawyer, Richard Kuniansky, said he needed more time to review 142,378 pages of evidence, apparently gathered by the government over the past three and a half years. Kuniansky said he may need the help of a forensic accountant and paralegal.

See here for the background. The request is fair enough, as lawyer Kuniansky is new to the case. I think Stockman is guilty, guilty, guilty, but that’s my opinion and the man deserves a fair trial just like anyone else. Let his attorney get up to speed, we can wait till January.

Stockman trial date set

Mark your calendar.

Best newspaper graphic ever

Former U.S. Rep. Steve Stockman is set to go to trial June 5 on federal corruption charges.

Stockman, a Houston-area Republican, has pleaded not guilty to charges of funneling hundreds of thousands of dollars in charitable donations to himself and his congressional campaign. He was arraigned Monday.

The trial is expected to last one month, according to a scheduling order filed Tuesday. Pretrial motions are due May 12 and responses two weeks later.

[…]

Stockman has cycled through a number of lawyers since his arrest last month. On Thursday, he was given a court-appointed attorney, Richard Kuniansky.

See here for the previous update. How long this actually takes will depend in large part on what happens with the pretrial motions. The Tom DeLay and Ken Paxton sagas were and are as drawn out as they were because the indictments were challenged in the pretrial hearing, and the trial judges’ rulings upholding them were then appealed. I don’t think that will be the case here – there’s nothing so far to suggest that the charges themselves are in any way a stretch – but you never know. If nothing interesting comes out of that, then expect the trial itself to be on the schedule suggested by the story.

Stockman pleads not guilty

And we’re off.

Best newspaper graphic ever

Standing tall, with his hands hanging loosely at his sides, former U.S. Congressman Steve Stockman told a federal magistrate in Houston Monday he understood the criminal charges against him and pleaded not guilty to theft of about $800,000 in charitable donations intended for conservative organizations and associated charges.

Upon Stockman’s request, U.S. Magistrate Judge Nancy Johnson had appointed him a lawyer last week to be paid for by the government until he can land a job. Stockman said he needed to dismiss his hand-picked lawyers because he can’t work while under indictment: His job requires him to travel overseas, which is not permitted under his bond.

Stockman was indicted on 28 federal corruption charges. He said publicly that he expects to be fully vindicated. He is free on bond.

Robert J. Heberle, an attorney from the public integrity division of the Justice Department, told the magistrate Monday he anticipated the trial would last one month and as many as 40 to 50 witnesses could be called for the prosecution. Johnson encouraged the government to whittle down the list. Stockman’s trial is set for June 5 before Chief U.S. District Judge Lee H. Rosenthal for the Southern District of Texas.

Stockman’s new attorney, Richard B. Kuniansky, who defended former accountant Mark Kuhrt in the massive Stanford prosecution several years ago, said after Stockman’s plea that he felt news reports had been unfair in their portrayal of the former lawmaker.

“It’s my understanding that pretty much been a pattern of attack on the character of Mr. Stockman,” Kuniansky said. “We’re looking forward to the truth coming out.”

See here for the background, and here for the pre-hearing version of the story. All I have to add at this point is that I too look forward to the truth coming out.

Steve Stockman claims he’s broke

Pobrecito.

Best newspaper graphic ever

Former Congressman Steve Stockman told a federal magistrate Wednesday he can’t afford to pay for a lawyer to represent him against allegations he helped steal about $800,000 in charitable donations intended for conservative organizations.

U.S. Magistrate Judge Nancy Johnson agreed to appoint a lawyer for him and postponed a hearing on his case until Friday.

Stockman told the judge he needed to dismiss his hand-picked lawyers from the elite firm of Smyser Kaplan & Veselka and ideally he wanted the court to re-appoint them to the case at the government’s expense. She said she’d consider the request.

He confirmed for the judge details on a disclosure form he’d filled out in front of a roomful of defendants in shackles and jail uniforms, indicating he owned a home, a rental property and two vans.

“But you have no assets?” Johnson asked.

“This is a four-year case,” the former lawmaker said, indicating he’d been paying for legal support on these matters for a long time.

See here and here for some background. I would have asked him “what, you can’t use some of that money you stole to pay your lawyers?”, which is no doubt why I’m not a US Magistrate. Well, that and the lack of a law degree. But seriously, this guy. I don’t know why anyone believes a word he says.

In the meantime, feast on this.

The fact that the former congressman is facing multiple felony counts made national news. But one of the most interesting details in the 46-page Stockman indictment escaped notice: The suggestion that Richard Uihlein, one of the country’s biggest conservative political donors, personally wrote a check for $450,571.65 to mail a fake newspaper called The Conservative News to voters across Texas. The paper, which prosecutors say was part of a Stockman-run, secretly funded operation intended to take down Cornyn, included the dubious claims that Cornyn wanted to ban veterans from having guns, had voted to fund abortion, and was secretly working with Democrats to grant amnesty to illegal immigrants.

Mailing a fake newspaper is not a crime, nor is secretly funding a candidate to do so. Thanks to a series of court decisions now known collectively as Citizens United, billionaires are allowed to fund anonymous attacks as long as they abide by an arcane set of tax and campaign finance rules. And Uihlein, who has given more than $43 million to conservative candidates and super PACs since 2011, is a particularly big fish. He is the chief executive of a family-owned shipping and packing materials company that’s confusingly named “Uline,” which Forbes estimated was worth at least $700 million in 2014. And through his private foundation, Uihlein has given millions more to nonprofits that push a conservative policy agenda and train a new generation of political operatives to sell it.

It’s not clear what, if anything, Uihlein knew about Stockman’s fake-news scheme. He is described as a victim in the Stockman case: Prosecutors say Stockman and his staffers fraudulently diverted hundreds of thousands of dollars Uihlein had donated. Uihlein’s funding of the fake-news operation would likely never have become public had Stockman not gotten tangled up with an FBI investigation — meaning this episode exposes a side of the U.S. campaign finance system we don’t often get to see.

[…]

Larry Barry, director of legal affairs at Uline, refused to answer questions about the case, but said in an emailed statement that “we are deeply troubled by the allegations … that certain contributions made in good faith may have been used for unintended personal and political purposes.” Barry referred to Uihlein as “a victim of this alleged misconduct” and said that “we have and will continue to fully cooperate with the Department of Justice in this investigation.”

[…]

One of the biggest unanswered questions in the Stockman case is how he apparently fooled Uihlein twice.

Prosecutors say Posey told Uihlein’s accountant in a May 13, 2014, email ― sent two months after Stockman lost the election ― that some of the money that was supposed to be used for Freedom House had gone to delivering medical supplies to “third world” countries. The email, which also included an attached tax exemption letter for Life Without Limits, allegedly constituted wire fraud ― though prosecutors don’t spell out exactly why.

What the documents don’t clear up is why Uihlein would fund Stockman’s direct mail campaign a year after his donation for Freedom House ― especially since it seemed like so little progress had been made on that first project. “You raise a good question, but it’s not one I can talk about today,” said Dane C. Ball, a Houston lawyer defending Stockman.

An answer may be in the offing if the case goes to trial. If that happens, it’s likely Uihlein would be called to testify, said D.C. campaign finance lawyer Brett Kappel.

“Get your popcorn,” he quipped.

There’s not enough popcorn in the world. Also, I am unreasonably amused by the fact that Uline’s director of legal affairs is named “Larry Barry”. I cannot wait for this trial to begin.

A closer look at the Stockman saga

Chron reporter Lise Olson takes a deep dive into the charges against former Congressman and fulltime hot mess Steve Stockman.

Best newspaper graphic ever

Steve Stockman was soon to board a plane for the United Arab Emirates this month when his unorthodox life took a sudden detour. The outspoken two-time former congressman from Houston was met at the airport by federal agents holding an arrest warrant.

In his own colorful campaign literature, Stockman, 60, has portrayed himself as a gun-loving, abortion-hating activist and philanthropist who has used frequent travels abroad to deliver Christian charity and medical supplies to developing nations.

But a 28-count federal indictment handed down Wednesday describes Stockman as the head of a complex criminal conspiracy. It alleges that he and two aides collected $1.2 million from three U.S.-based foundations and individuals, laundered and misspent most of that money, spied on an unnamed opponent, accepted illegal campaign contributions, funneled money through bogus bank accounts and businesses, and failed to pay taxes on his ill-gotten gains.

Some of that money went for trips to try to “secure millions of dollars from African countries and companies operating” in Africa, the indictment says.

[…]

Jason Posey, 46, has been described as Stockman’s primary accomplice in the scheme to divert donations through companies linked by federal investigators to suburban Houston post office boxes and an array of bank accounts. He has not been arrested. Thomas Dodd, the other former staffer, pleaded guilty earlier this month to two charges related to the same conspiracy and agreed to testify as part of his plea deal.

The purpose of their conspiracy was “to unlawfully enrich themselves and to fund their political activities by fraudulently soliciting and receiving hundreds of thousands of dollars,” the indictment says.

Prosecutors say Stockman used hundreds of thousands of pilfered funds to pay campaign and credit card debts, to cover personal expenses – and to politically attack Sen. John Cornyn (R-Texas).

Stockman’s long-shot Republican primary against Cornyn was the subject of one the scams outlined in the indictment.

In February 2014, Posey solicited and received a $450,000 charitable contribution from an Illinois-based donor that was supposed to finance 800,000 mailings to Texas voters of a campaign publication resembling a “newspaper.” The mass mailings for the Senate primary were part of what Posey later swore in an affidavit was an entirely “independent election expenditure” that was handled entirely by Posey and not by Stockman, one of the candidates.

Those mailings, made to look like real newspapers, championed Stockman’s candidacy and opposed Cornyn.

Posey received the donation through a company he controlled called the Center for the American Future, but he coordinated the mass mailings directly with Stockman in violation of federal campaign finance laws, the indictment says. Stockman and Posey also sought a partial refund of the mailing costs – $214,718.51 – without the donor’s knowledge and split the money, the indictment says.

Prosecutors allege Posey used the money to pay Stockman’s Senate campaign debts and his own personal expenses, including “airfare on a flight departing the United States.”

See here for the most recent update, and here for a large sample of my Stockman archives. A lot of people have been motivated to get involved in politics this year after the Trump debacle of 2016. It was Steve Stockman who provided my motivation to get more involved in politics, after his upset (and upsetting) Congressional victory in 1994. I’ve noted before that former Congressman Nick Lampson was the first candidate I ever donated to, and the first candidate whose fundraiser I attended, back in 1996. That was at least as much about Stockman as it was about Lampson.

The thing about Stockman is that, all politics aside, he has long acted in a shady manner. Do a search of the Houston Press’ archives for Stockman stories and peruse what they were writing about him during that 1995-96 Congressional term of office (Google on “steve stockman site:houstonpress.com”, for example) to see what I mean. In doing that myself, I came across this little nugget, which shows that the past is never truly past:

The squirrelly adventures of Congressman Steve Stockman’s frat-house band of consultants who call themselves Political Won Stop seem to know no limits. The Hill, a Congress-covering weekly in the nation’s capital, first revealed that Stockman’s re-election campaign had paid more than $126,000 to the consultancy, which is owned by 26-year-old Chris Cupit and 25-year-old Jason Posey and is listed on the congressman’s campaign disclosures as having the same Whitman Way address as Stockman’s combination home and election headquarters just outside Friendswood.

Emphasis mine. The fact that Stockman has had a long association with Jason Posey is not suggestive of anything. The fact that Stockman has been involved in at least two questionable-if-not-actually-illegal ventures with Posey is. Whatever we know now, I feel confident there’s more to be uncovered.