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Carlos Uresti resigns

About fscking time.

Carlos Uresti

Finally heeding calls from his colleagues on both sides of the aisle, state Sen. Carlos Uresti announced his resignation Monday, four months after he was found guilty of 11 felonies.

The news comes just over a week before the San Antonio Democrat is set to be sentenced by a federal judge in San Antonio; experts predict his penalty will be 8 to 12 years of prison time. He’s also scheduled for a trial in October on separate fraud and bribery charges.

“As you know, I am in the process of ensuring that justice is served,” Uresti wrote in a statement Monday. “I need to attend to my personal matters and properly care for my family. So, keeping in mind the best interests of my constituents and my family, I believe it to be most prudent that I step down from my elected office to focus on these important issues.”

[…]

His resignation will become effective Thursday.

In his announcement Monday, Uresti asked Gov. Greg Abbott to call a special election for the seat on the next uniform election date, which is the general election date in November. Doing so, he said, would save the district’s 17 counties thousands of dollars. The governor’s office did not immediately return a request for comment on timing for the election.

Several Democrats have already lined up to replace Uresti. State Rep. Roland Gutierrez announced his bid for the seat less than a month after the conviction; in early April, former U.S. Rep. Pete Gallego joined the fray as well.

See here and here for the background. Assuming we do get a November special election, which would join the other November special election(s) that we should get, we can have a replacement for Uresti sworn in and ready to go no worse than January, which is so much better than waiting till after November for a special election to be set. I’m sure there will be others besides Gutierrez and Gallego in the race, and as before I don’t have a preference at this time. Uresti set a low bar to clear, so an upgrade is likely. I for one am very ready for that.

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.

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.

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:

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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.

The prosecution keeps piling on Steve Stockman

From Monday:

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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.

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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:

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“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.

Just so we’re clear, Sen. Carlos Uresti needs to resign

Any time soon works for me.

Sen. Carlos Uresti

Last Thursday, a jury convicted Uresti, who represents Senate District 19, on 11 felony counts, including fraud and money laundering, for his work with a defunct frac-sand company. In addition, he has a separate public-corruption case hanging over him.

Uresti has been stripped of his Senate committee assignments and ostracized by his fellow Senate Democrats. He’s stranded on an island, both legally and politically.

Uresti is evaluating his options at the moment, but it seems all but inevitable that he will step down from the Senate this year.

Even though he is legally entitled to keep his seat while he navigates his way through the appeals process, no constituent deserves to be represented by a lawmaker who is behind bars (as Uresti is likely to be after his scheduled sentencing in June).

In the coming months, he will surely feel pressure from Democratic Party leadership, who don’t want to see a potential blue-wave election hampered by the stench of corruption.

[…]

State Rep. Roland Gutierrez, D-San Antonio, has been open about his ambitions for the seat. In a sense, Gutierrez has been campaigning for it since federal agents raided Uresti’s law office a year ago.

Former Congressman Pete Gallego also has privately indicated to friends that he wants the seat, according to multiple sources. He also has been turning up over the past few days at San Antonio political events.

[…]

Political buzz in Senate District 19 also has surrounded City Councilman Rey Saldaña — who will be term-limited out of the council next year — and state Rep. Phil Cortez.

See here for the background. I sure hope he’ll conclude that he needs to step down, and the sooner the better. We need to get his successor into office, and doing so in time for the next session in January would be nice. I don’t have any particular preference for any of the potential candidates named in this story, but given the other issues surrounding Uresti, maybe – hear me out now – we could find a lady candidate to rally around. Just a thought.

Sen. Uresti convicted on fraud charges

Time to resign.

Sen. Carlos Uresti

The courtroom was silent and thick with anxiety Thursday morning as the judge’s deputy read the verdicts: “Guilty,” “guilty,” “guilty” — 11 times over, and on all felony counts.

State Sen. Carlos Uresti sat stone-faced, his gaze directed at the deputy, as he heard the ruling that throws into question his two-decade career in the Texas Legislature and opens up the possibility more than a century in federal prison and millions of dollars in fines.

If upheld on appeal, the 11 felony charges — including multiple counts of fraud and money laundering — would render the San Antonio Democrat ineligible to continue serving as a state legislator. Uresti, an attorney by trade, would also be disbarred.

Uresti has no immediate plans to step down from his seat in the state Senate, he said minutes after the verdict. And he will “absolutely” appeal the jury’s decision.

[…]

There were no calls for resignation among state lawmakers immediately after the verdict, but Texas Democrats issued an immediate rebuke of the senator Thursday morning, saying “no one is ever above the law.”

“After being found guilty of such serious crimes, Senator Uresti must seriously consider whether he can serve his constituents,” Texas Democratic Party Communications Director Tariq Thowfeek said.

And state Rep. Roland Gutierrez, another San Antonio Democrat, said that elected officials are “held to a higher standard.”

“Over the next few weeks we need to have a serious discussion as constituents and taxpayers about how we move forward and turn the page,” he said. Gutierrez, whose district overlaps with Uresti’s, could be eyeing the senator’s seat.

See here and here for some background. You can have that “serious discussion” about moving forward and turning the page if you want, but it should happen in conjunction with Sen. Uresti resigning, which frankly he should have done months ago, for other reasons. As such, I’m glad to see this.

“In light of today’s jury conviction of Sen. Carlos Uresti, the Texas Senate Democratic Caucus is calling upon Sen. Uresti to resign his position,” caucus chair Sen. José Rodriguez said in a statement.

[…]

“Voters in this time and age want people who have at least so far [demonstrated] good judgements,” said Leticia Van De Putte, former Democratic senator for Texas’ District 26. “All I know is that if the defense is ‘Well I didn’t know this was wrong,’ it’s very difficult to go back and ask people to vote for you.”

[SMU political science professor Cal] Jillson agreed: “He might find that his political career is ended because of this, and it will provide political opportunities for others.”

Van de Putte served in the Texas Senate from 1999 to 2015, overlapping nine years with Uresti, who won his senate seat in 2006.

“I’m heartbroken at the situation,” said Van de Putte, who later co-founded a consulting firm. “I know Sen. Uresti … has been an amazing champion for abused children. I worked with him on a number of efforts, he’s done great work in the Legislature.

“No one will remember all the great work he did. They’ll remember this case.”

[…]

State Rep. Roland Gutierrez (D-San Antonio) released a statement Thursday, saying elected officials are “held to a higher trust” and that constituents and taxpayers would have to “move forward and turn the page.”

Political analyst Harold Cook, who has worked in the Texas House of Representatives and as an advisor to Democrats in the Texas Senate, said Gutierrez’s tone implies he’s vying for Uresti’s seat.

“This is what I would have written for somebody [who is] already going to be a candidate,” Cook told the Rivard Report. “Senate districts don’t come up often and they’re not open often.”

District 19 is one of the biggest senate districts in the country, Cook said. “There are a lot of Democrats holding office in those counties [who] would love to be state senator.”

There are others mentioned the story, and I’m sure the list will be long when and if it comes to it. But first, we need Uresti to resign. Step down now, so we can get someone else in place as soon as possible and so we don’t face the prospect of not just one but TWO incumbent legislators going to jail, perhaps during the next session. Among the many things that I hope we’ve learned from the #MeToo movement is the concept that no one is so important or accomplished that they must be shielded from being held accountable from their actions. Please do the right thing here, Senator. The Current and the Rivard Report have more.

Harris County could use a bit of cybersecurity training

Oopsie.

On Sept. 21, not three weeks after Houston was ravaged by Hurricane Harvey, the Harris County auditor’s office received an email from someone named Fiona Chambers who presented herself as an accountant with D&W Contractors, Inc.

The contractor was repairing a Harvey-damaged parking lot, cleaning up debris and building a road for the county, and wanted to be paid. Chambers asked if the county could deposit $888,000 into the contractor’s new bank account.

“If we can get the form and voided check back to you today would it be updated in time for our payment?” read a Sept. 25 email from Chambers.

On Oct. 12, Harris County sent the money out. The next day, the county quietly was scrambling to get it back, after being alerted that the account did not belong to D&W, that Chambers did not exist and that county employees had been duped by a fraudster.

The county recouped the payment, but the ongoing investigation into who tried to take the county’s money and nearly got away with it has ignited a debate over the financial security and cyber security of the third-largest county in America. That debate comes as experts point to a growing number of increasingly sophisticated attackers from around the world, homing in on untrained employees or system vulnerabilities.

The incident now has become wrapped into an FBI investigation into a group that has attempted to extort local governments around the world, law enforcement officials said.

Meanwhile, some officials are moving to revamp their practices as others say further scrutiny of county defenses is necessary.

There’s a lot going on here, and a lot of room for process improvement. The county can provide training to employees to better recognize phishing attempts, and send out test emails to ensure that the training took hold. Extra checks and verifications, like pre-screening vendors an maintaining a list of approved vendors, can be put into place before any payments are made. Keeping on top of threat intelligence, to know what the new scams are that are going around, and ensuring that the email system and the proxy servers recognize junk mail and malicious websites. Cybersecurity is a process, and it contains multiple layers. The fact that the county almost got scammed is in itself not a great shame – it does happen, to many organization – but only if the opportunity to learn and improve from it is fully embraced.

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.

Public Works Director Sreerama is out

From the inbox, a Friday afternoon special:

Statement by Mayor Sylvester Turner on city Public Works and Engineering director

“Karun Sreerama has accomplished much in Houston as a businessman and involved citizen. I am sure he will continue to be an asset to our community. However he and I have agreed that it would be best for the city for him to step down as director of the city Public Works and Engineering Department.

“Carol Haddock will continue to serve as acting director until I choose a new director.”

See here and here for the background. This followed in the wake of a Chron story that gave a lot more detail.

According to a transcript released Thursday in the case against Oliver, Sreerama allegedly paid the HCC trustee about $12,000 in cash and Visa gift cards between June 2015 and February 2016 in exchange for Oliver’s influence over HCC contracts.

Oliver pleaded guilty to bribery in connection with accepting the more recent payments totaling $12,000, court records show, and in exchange the acting U.S. attorney agreed to dismiss the separate extortion charge tied to Sreerama’s earlier payments totaling $77,143.

Sreerama’s attorney Chip Lewis said federal authorities directed Sreerama to pay Oliver the $12,000 in 2015 and 2016 after confronting Sreerama about his earlier, independent payments to the trustee.

“What he was doing was created, directed and funded by the FBI,” Lewis said. “Karun was a cooperating witness as a result of being a victim of Oliver’s scheme.”

[…]

Sreerama, identified as “K.S.” in Oliver’s indictment and re-arraignment transcript, wrote three checks to Oliver between late 2010 and mid-2013 in response to the trustee’s solicitations, Lewis said.

As Lewis described the payments, the first two were made because Oliver claimed he was going through a costly divorce, and then claimed he needed funds to complete the process of adopting a child. Both payments were presented as loans and were not repaid. The third payment took the form of an exorbitant fee Oliver charged after his company cleaned the parking lot at Sreerama’s business.

“By the time we get to the third payment and he hadn’t been repaid the loans, Karun became worried that saying, ‘No, no I’ve got somebody who already does the cleaning, etc.’ could adversely affect his position down the road,” Lewis said.

Federal authorities confronted Sreerama in March 2015, a year and a half after he made that final payment, and asked for his cooperation in their investigation, Lewis said.

Two months later – at the FBI’s behest, Lewis said – Sreerama began a series of meetings with Oliver that lasted through May 2016.

The FBI declined to comment to the Chron, so we just have attorney Lewis’ word for all of this, which is also the reason why Sreerama was apparently unable to tell the Mayor about it. I’d still like to hear Sreerama say in his own words why he did what he did, but it seems unlikely that will ever happen. I do hope there are no more shoes to drop. Whatever the case, this was the right outcome.

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.

Maybe we should be a little more concerned about election security?

Just a thought.

Russia’s cyberattack on the U.S. electoral system before Donald Trump’s election was far more widespread than has been publicly revealed, including incursions into voter databases and software systems in almost twice as many states as previously reported.

In Illinois, investigators found evidence that cyber intruders tried to delete or alter voter data. The hackers accessed software designed to be used by poll workers on Election Day, and in at least one state accessed a campaign finance database. Details of the wave of attacks, in the summer and fall of 2016, were provided by three people with direct knowledge of the U.S. investigation into the matter. In all, the Russian hackers hit systems in a total of 39 states, one of them said.

The scope and sophistication so concerned Obama administration officials that they took an unprecedented step — complaining directly to Moscow over a modern-day “red phone.” In October, two of the people said, the White House contacted the Kremlin on the back channel to offer detailed documents of what it said was Russia’s role in election meddling and to warn that the attacks risked setting off a broader conflict.

The new details, buttressed by a classified National Security Agency document recently disclosed by the Intercept, show the scope of alleged hacking that federal investigators are scrutinizing as they look into whether Trump campaign officials may have colluded in the efforts. But they also paint a worrisome picture for future elections: The newest portrayal of potentially deep vulnerabilities in the U.S.’s patchwork of voting technologies comes less than a week after former FBI Director James Comey warned Congress that Moscow isn’t done meddling.

“They’re coming after America,” Comey told the Senate Intelligence Committee investigating Russian interference in the election. “They will be back.”

[…]

One of the mysteries about the 2016 presidential election is why Russian intelligence, after gaining access to state and local systems, didn’t try to disrupt the vote. One possibility is that the American warning was effective. Another former senior U.S. official, who asked for anonymity to discuss the classified U.S. probe into pre-election hacking, said a more likely explanation is that several months of hacking failed to give the attackers the access they needed to master America’s disparate voting systems spread across more than 7,000 local jurisdictions.

Such operations need not change votes to be effective. In fact, the Obama administration believed that the Russians were possibly preparing to delete voter registration information or slow vote tallying in order to undermine confidence in the election. That effort went far beyond the carefully timed release of private communications by individuals and parties.

One former senior U.S. official expressed concern that the Russians now have three years to build on their knowledge of U.S. voting systems before the next presidential election, and there is every reason to believe they will use what they have learned in future attacks.

To put this another way, you don’t have to hack voting machines to wreak havoc on our elections. Simply undermining confidence in the process is enough. And unfortunately, Republicans like Mitch McConnell were not at all interested in any of this last year, so don’t hold out hope that they will want to take action about it for next time. There’s a lot of work to be done to fix this mess. Daily Kos and Chalie Pierce have more.

Cornyn withdraws from consideration to succeed Comey

It was fun while it lasted.

Big John Cornyn

John Cornyn withdrew from consideration to be the next FBI director on Tuesday, saying the “best way I can serve is continuing to fight for a conservative agenda in the U.S. Senate.”

“Now more than ever the country needs a well-credentialed, independent FBI director,” he said in a statement. “I’ve informed the administration that I’m committed to helping them find such an individual.”

Cornyn was in serious contention to replace ousted FBI director James Comey, setting off a scramble and speculation around the state over who might succeed him in the U.S. Senate.

See here and here for the background. I can’t say this comes as a surprise. In a different time it might have made sense, but given everything that’s going on now, the only winning move is not to play. It would have been nice to have had more time to indulge in wild speculation about who might get appointed and who might run for that seat, but all good things must come to an end. RG Ratcliffe has more.

Sen. Carlos Uresti indicted on federal fraud charges

Very bad.

Sen. Carlos Uresti

State Sen. Carlos Uresti, accused of misleading a former client who invested in a company in which Uresti has a financial stake, was indicted by a federal grand jury on 11 charges over his involvement in the alleged investment Ponzi scheme — in addition to a separate indictment alleging bribery.

In the first indictment, the federal grand jury charged Uresti, a San Antonio Democrat, with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. The indictment also charges Uresti with five substantive counts of wire fraud; two counts of securities fraud; one count of engaging in monetary transactions with property derived from specified unlawful activity; and one count of being an unregistered securities broker.

A separate indictment centered on a contract to provide medical services to a correctional facility in West Texas. That indictment alleges that a colleague of Uresti’s, Vernon C. Farthing III, paid Uresti $10,000 per month as a marketing consultant and that half of the money was given to a Reeves County official to win over his vote to award the contract to Farthing’s company — the culmination of a 10-year scheme involving bribery and money laundering.

[…]

A lengthy investigation published by the Express-News in August first detailed Uresti’s involvement in the company and fraud allegations it faces.

Three months later, Uresti coasted to re-election, winning his San Antonio seat with 56 percent of the vote against Republican and Libertarian challengers. Uresti is among the Legislature’s most powerful Democrats. He is vice chair of the Health and Human Services committee and sits on three other high-profile committees: Finance, Education and Veteran Affairs & Border Security.

In February, the FBI and IRS raided Uresti’s law office. In a statement at the time, the senator said he was cooperating with federal agents as they were “reviewing our documents as part of their broad investigation of the FourWinds matter.”

FourWinds’ purported intent was to buy sand and sell it at a markup to oil and gas companies, but some investors have accused the company’s leadership of misrepresenting its financial health and spending their money on frivolous, personal expenses. It now faces millions of dollars in claims from investors and other companies.

Denise Cantu, whom Uresti represented in a wrongful-death case, said she lost most of the $900,000 she invested in the now-bankrupt company in 2014 at the suggestion of Uresti, according to the Express-News. She has said she was not initially aware that Uresti would get a piece of her investment, though Uresti has suggested otherwise.

With allegations of serious financial mismanagement detailed in bankruptcy court, the FBI last year opened an investigation into FourWinds, the Express-News reported. In August, Uresti told the paper that he was a “witness” in that investigation but not its target.

See here for some background, and read the rest fore more. As with Ken Paxton, I will not call for Sen. Uresti to resign at this time, as they are both still innocent in the eyes of the law. Unlike Paxton, Uresti is not on the ballot again until 2020, so he (in theory, at least) has the time to dispose of this before he has to face the voters again. That’s assuming he gets acquitted or the charges get dropped. As with other legislators who face legal troubles, I’d encourage Sen. Uresti to prioritize getting his personal affairs in order by stepping down from his office, after the session is over. Whether he does or he doesn’t, there are several State Reps in Bexar County who I think would do a fine job in that office. I wish him luck, but I also wish he’ll listen to what I’m saying. The Current has more.

Cornyn’s colleagues cool to him as FBI Director

Boy, with friends like these

Big John Cornyn

There is a growing obstacle standing in the way of Sen. John Cornyn, R-Texas, becoming the next director of the FBI — his own Republican colleagues.

Led by Majority Leader Mitch McConnell, R-Kentucky, a chorus of GOP senators has signaled that they would prefer President Trump to nominate somebody other than the second-ranking ­Republican senator, despite his status as a well-liked and influential figure on Capitol Hill.

Their message: It’s nothing personal. But if Trump were to nominate Cornyn, who has shown interest in the job, it would trigger a raft of consequences that could be detrimental to McConnell and the broader GOP agenda.

Sen. Thom Tillis, R-North Carolina, offered a response that was common among Republican senators Monday, praising Cornyn’s qualifications before adding: “I’d hate to lose him.”

“My own selfish thing would be to say, ‘Oh, he’s a terrible person — don’t do it,’ ” Tillis quipped.

Senate Republicans are hoping Trump takes their concerns into consideration as he zeros in on his choice. The president said Monday that his search was “moving rapidly.” McConnell predicted that Trump would make an appointment “in a week or so.”

[…]

Among other concerns, some fear that nominating a top political leader would roil a confirmation process in which Democrats are already emboldened to cry foul over former director James B. Comey’s abrupt firing. Since Trump’s inauguration, Cornyn has been a loyal defender of the president — including on the Senate Judiciary and Intelligence committees, which have been looking at the Trump campaign’s ties to Russia.

“I told him I thought he’d be a good FBI director under normal circumstances,” Sen. Lindsey Graham, R-South Carolina, said in an interview. “But I think the politics of this is just — he gets it. He’d be an outstanding FBI director. But I just, quite frankly, think that last week made it tough.”

Sen. Tim Scott, R-South Carolina, said there is a need now for “someone who can lead us in the direction we need to go, and that doesn’t eliminate partisan folks, but there’s no question that the country seems to be — to find more confidence and credibility in someone who’s probably not involved in partisan politics.”

See here and here for the background. Can’t imagine why the Republicans might be a wee bit concerned about the politics of this, but I’m sure they’ll figure out what their story is. In a sense, it doesn’t matter who Trump picks. Left to his own devices, he will either pick a toady or someone who will be forced to tarnish his own reputation in the service of his new lord and master. (And yes, it will be a dude. Donald Trump does not put the ladies into positions of real power.) In addition, whoever Trump picks will and should cause Senate Democrats to shut the place down until he pledges to continue the Russia investigation that Comey started, with the increase in resources that Comey had asked for just before getting canned. Basically, there’s no acceptable candidates that Trump himself might be willing to appoint. (No, Merrick Garland doesn’t count – the only reason he’s being mentioned is one part troll job, and one part to get a vacancy on the DC Court of Appeals. No thanks.)

So anyway, I get where the Republicans are coming from on this, and that’s before factoring into the equation the possibility, no matter how slim, that a Democrat could win the seat in a special election. There’s no upside here. If I were advising someone with a role in this, I’d say just elevate the top deputy director, who is now serving as the acting director, and be done with it. Which Trump won’t do because the guy won’t swear personal loyalty to the toddler king, but that’s their problem. Have fun with it, fellas.

Cornyn on shortlist to replace Comey

Interesting.

Big John Cornyn

U.S. Sen. John Cornyn is on the short list to succeed James Comey as FBI director, according to a White House official.

Cornyn is one of about 11 contenders for the post, according to Fox News.

He has strong relationships with members of his conference and would likely sail through confirmation. Prior to his election to the Senate in 2002, Cornyn served as Texas attorney general, a Texas Supreme Court justice and a local judge.

In the immediate aftermath of Comey’s firing, Cornyn did not take the opportunity to lobby for the position.

“I’m happy serving my state and my country,” he told reporters off the Senate floor.

But that comment came Wednesday, which was a lifetime ago during a dramatic week in Washington.

[…]

A Senate vacancy could make for dramatic change in the state’s political pecking order.

Gov. Greg Abbott would be tasked with a short-term appointment, but several months later the state would hold a special election to finish the duration of the term, which ends in 2021.

When Lloyd Bentsen resigned from the U.S. Senate to become Treasury Secretary in 1993, Gov. Ann Richards appointed former U.S. Rep. Bob Krueger, a Democrat, to hold the post until a special election could be held. That was a noisy affair with two dozen candidates — including a couple of sitting members of Congress at the time — that ended with Texas Treasurer Kay Bailey Hutchison beating Krueger in the special election runoff. She ran successfully for a full term the next year and remained in the U.S. Senate until the end of 2012.

As the story notes, the odds of this happening are quite slim, so anything we say here is highly speculative. But hey, isn’t that what a blog is for? The main thing I would note is the timing of a special election to complete Cornyn’s unexpired term. The special election in 1993 to succeed Lloyd Bentsen took place on May 1, 1993, which was the first uniform election date available after Bentsen resigned and Krueger was appointed. That means a special election to replace Cornyn – again, in the unlikely event this comes to pass – would then be in November of this year, with that person serving through 2020. The good news here is that it means that an elected official who isn’t subject to a resign-to-run law would be able to run for this seat without having to give up the seat they currently hold. I’m sure if we put our heads together, we can think of a sitting member of Congress who might be enticed to jump into such a race.

Two other points to note. One is that, at least according to the story, Abbott is not allowed to appoint himself. It’s not clear to me why that is so – the story references “precedent based in common law, not statute”, so I presume there was a lawsuit or maybe an AG opinion in there somewhere. I know I recall people urging Ann Richards to appoint herself in 1993, but it may be the case that she was not allowed to due to the same precedent. Someone with a more extensive understanding of Texas history will need to clarify here. Point two is that if Abbott names a sitting Republican officeholder, then there would of course be a special election to replace that person, either (most likely) this November for a member of Congress or next year for a statewide official. And yes, Abbott could appoint Dan Patrick, perhaps to take him out of any possible challenge to himself in 2018. Keep that in mind if your first instinct is to cheer a possible Cornyn departure. Like I said, all highly speculative, so have fun batting this around but don’t take any of it too seriously just yet.

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.

Stockman indicted

And here the troubles begin.

Steve Stockman

Former U.S. Rep. Steve Stockman and a former congressional aide were indicted Tuesday by a federal grand jury on charges they stole hundreds of thousands of dollars from charitable foundations to fund campaigns and pay personal expenses.

Stockman, 60, and his former director of special projects, Jason Posey, 46, were charged with 28 criminal counts, including mail and wire fraud, conspiracy, making false statements to the Federal Election Commission, making excessive campaign contributions and money laundering.

Acting U.S. Attorney Abe Martinez in Houston called the indictment “a very significant case” for the office in a brief statement. “The indictment returned by the grand jury today is a significant case alleging serious violations involving use of official positions for personal gain. Violations of the public trust will not be tolerated,” he said.

The case is being jointly prosecuted by the Southern District of Texas and the Washington DC-based Public Integrity Section.

Stockman also faces a charge of filing a false tax return, and Posey is charged with falsifying a sworn statement to obstruct an investigation by federal elections officials.

[…]

Federal investigators say in the indictment that between from May 2010 and October 2014, Stockman brought in about $1.25 million in donations based on false pretenses. He then diverted nearly $285,000 donated to charitable causes to pay for his and Dodd’s personal expenses.

Stockman and Dodd also are accused of receiving $165,000 in charitable donations, which Stockman largely spent to fund his 2012 congressional campaign.

See here, here, and here for the background. Just a thought here, but defending oneself against these kinds of charges is an expensive prospect, and there were questions about how exactly Stockman was supporting himself back when he was in office. I don’t know how he’s going to pay for his lawyers, and I kind of doubt he’s going to be able to raise the money. We’ll see how it goes. The Trib has more.

Stockman’s first day in court

Oh, this is going to be so much fun.

Steve Stockman

Appearing carefree and relaxed with his wife by his side, former U.S. Rep. Steve Stockman told reporters outside a court hearing downtown Friday that he expected “to be vindicated” on allegations that he conspired with staffers to take $775,000 in donations intended for charitable purposes or voter education.

Stockman appeared briefly, in a charcoal suit and tie, before U.S. Magistrate Judge Stephen Smith and put a trio of lawyers from Smyser Kaplan & Veselka, LLP, on record to represent him. The judge set a preliminary hearing on the matter for April 11 before U.S. Magistrate Judge Nancy Johnson.

On the sidewalk outside the federal courthouse, Stockman said he didn’t intend to plead guilty or enter into a plea agreement, adding, “I think ultimately we will be vindicated.”

Stockman’s attorney, Shaun G. Clarke, said he could not comment on the details of the case but he lauded Stockman’s reputation and integrity, while Stockman stood smiling beside him.

“We’ve just met Steve. But a couple of things have become clear — number one, that he’s a man of faith; number two, that he’s a fighter; number three, most of all, that he has tremendous faith in the Constitution of the United States of America,” Clarke said. “Steve has said he is going to fight to clear his name, and we’re going to be there next to him fighting to do it also.”

“We’re here to vindicate an innocent man – Steve Stockman – and that’s what we’re going to do,” he said.”

See here and here for the background. Do yourself a favor and be sure to click on the Chron story link, to see the awesome graphic in that that has Stockman at the center of this bizarre web of PO boxes, shell corporations, and foreign addresses. The only way it could be better is if it were on some paranoid dude’s wall, with push pins and string connecting it all. I’m already visualizing the future documentary on A&E about the Stockman saga, with Bill Kurtis narrating. Don’t let me down, y’all. The Trib has more.

More on the Stockman arrest

I’m just going to leave this here.

Steve Stockman

Former U.S. Rep. Steve Stockman, a Republican whose district stretched from Houston to Beaumont, allegedly conspired with two staffers to bilk conservative foundations out of at least $775,000 in donations meant for charitable purposes or voter education, according to federal court records.

Details of the alleged scam are described in a plea deal signed in Houston by Thomas Dodd, Stockman’s former campaign worker and 2013 congressional special assistant. Dodd pleaded guilty Monday to two counts of conspiracy and has agreed to help authorities build a case against Stockman in return for consideration on his sentencing. The maximum penalty for each charge is 20 years and a fine of up to $250,000.

Stockman was arrested March 16 by a Houston-based FBI agent as he prepared to board a plane to the Middle East, but was released on $25,000 bond after surrendering his passport.

He has been charged with two counts of conspiracy for allegedly colluding with Dodd and another staffer to hide illegal campaign contributions and to divert $350,000 from the Ed Uihlein Family Foundation, based in Lake Forest, Ill. Uihlein had donated funds to renovate a townhouse to be used as a place for congressional interns to gather in Washington D.C. The meeting spot was never created. Dodd’s plea agreement says that he and Stockman also diverted $425,000 from the Rothschild Charitable Foundation and the Rothschild Art Foundation Inc., based in Baltimore.

The Rothschild Foundations donated for charitable purposes and voter education.

Most of the $775,000 in foundation donations was spent on Stockman’s campaign and on credit card bills, according to allegations in Dodd’s plea deal.

Prosecutors claim those illegal acts were part of a larger and more complex scam, court records show. The plea deal outlines a conspiracy among Stockman, Dodd and another staff member that allegedly included two shell companies, bogus campaign contributions, lies to executives at the foundations and a trail of wire and mail fraud.

See here for the background. An earlier story has a copy of the aforementioned plea agreement, which you can see here. This Chron story summarizes the questions that remain about Stockman and his questionable finances, many of which first came up back in 2014. I just want to point out that had Stockman not gotten into his twisted little head to run against John Cornyn in 2014, he’d very likely still be a sitting member of Congress. Funny how these things work.

Steve Stockman gets busted

Well, lookie here.

Steve Stockman

Former U.S. Rep. Steve Stockman, R-Texas, has been charged with violating federal election law.

Stockman conspired with former congressional employees to funnel money intended for a charity to his campaign, according to a sworn statement from an FBI agent unsealed Thursday. He is also accused of making false statements to the Federal Election Commission.

The allegations center on a $350,000 donation Stockman solicited from an unnamed businessman shortly after taking office in 2013, according to the statement. The money was supposed to go to a Las Vegas-based nonprofit called Life Without Limits, but Stockman instead “secretly diverted the funds to pay for a variety of personal expenses and to fund illegal contributions to Stockman’s campaigns for public office,” the statement said.

See here for my extensive Stockman archives. Here’s a longer story from the Chron:

Stockman said after the hearing that he had been targeted for speaking out against the Internal Revenue Service, and cited the right-wing conspiracy theory that contends bureaucrats are secretly running the U.S. government.

“This is part of a deep state that’s continuing to progress,” he said.

[…]

In court documents filed with the criminal complaint, the FBI agent said that shortly after Stockman took office for the second time in January 2013, he solicited a $350,000 donation from an unidentified “wealthy businessman” from Chicago on behalf of a Las Vegas-based nonprofit, Life Without Limits, which had been set up to help people through traumatic events.

The donation ostensibly was for renovation of a so-called Freedom House to serve as a meeting and training facility in Washington, D.C. The businessman’s charitable organization issued a check the same day.

Instead of going to the house project, however, the check was deposited six few days later in a Webster bank account set up by Stockman doing business as Life Without Limits – an account that had a balance of only $33.48 at the time, according to the agent.

“Beginning shortly after the $350,000 charitable donation was deposited into his Life Without Limits account, rather than spending the money on the ‘Freedom House,’ Stockman secretly diverted the funds to pay for a variety of personal expenses and to fund illegal contributions to Stockman’s campaigns for public office,” the agent stated.

Records show he made no “significant” contributions toward the renovations and that the Freedom House never opened.

According to the agent, some of the funds were funneled directly into the campaign through “conduit contributors,” who received cash from the Life Without Limits account and then made contributions to Stockman’s campaign.

Outside of court on Friday, Stockman said the amount in dispute is $15,000 – not the $350,000 described in court. He did not explain the higher dollar amount.

He said he has been investigated by at least three grand juries over the past three years after he tried to have Lois Lerner of the IRS arrested for contempt of congress in July 2014.

Earlier this year, the U.S. Supreme Court rejected an appeal from a nonprofit group that wanted to sue Lerner and other individual IRS officials for allegedly harassing tea party groups that applied for tax-exempt status with burdensome scrutiny in 2014.

As trouble follows Steve Stockman like flies follow a garbage truck, Stockman was investigated for ethical issues in 2014, during his one-term return to Congress after winning a multi-candidate primary for the new CD36. By the end of his term, he and three of his staffers had been subpoenaed by a federal grand jury, which is what I presume led to this. There were also investigations by the House Ethics Committee, the Office of Congressional Ethics, and the Federal Elections Commission, which is an impressive amount of activity for one otherwise inconsequential single-term Congressperson. I’ll say again, he remains one of the most brilliant and underrated political performance artists of our time. We may never see his like again, though we may see his ass in jail by the time this is all said and done. Click2Houston, ThinkProgress, the Press, and Juanita have more.