Tea Party-Backed Rep Joe Walsh Lists No Child Support Debt On Financial Forms
Rep. Joe Walsh (R-IL), a Tea-Party darling who has made a name for himself on the talk show circuit lecturing Democrats to get the nation’s finances in order, has been under fire in recent weeks over charges that he’s a deadbeat dad, owing more than $100,000 in child support.
Last Thursday, Walsh told constituents at a townhall that he plans to “privately and legally” fight his ex-wife’s claims that he owes more than $100,000 in child support, which he called “wildly inaccurate.” A recent Chicago Sun-Times article reported that his ex-wife is suing him for $117,000 in unpaid support.
Yet, even if Walsh owes just $10,000 in unpaid child support, he could face the added headache of House Ethics Committee scrutiny. Walsh, who was elected in 2010 in a narrow victory over former Rep. Melissa Bean (D-IL) in the Tea Party-induced wave, does not list any child support debt on his financial disclosure form, as required for any liability worth more than $10,000.
“Rep. Walsh is required both by law and by congressional ethics rules to list debts in excess of $10,000 on his financial disclosure forms, including child support back payments,” said Public Citizen’s Craig Holman.
“Technically, he could be taken to task by the Ethics Committee or even the Justice Department for failure to file proper disclosure forms, but in all likelihood the Ethics Committee and Justice would be satisfied if Walsh were to file amended forms,” Holman explained.
But Walsh is in a bit of a bind. Filing an amended form would require him to admit to owing at least $10,000 in back child support, what would amount to an ugly political liability that could knock him out of his role as one of the top spokesmen for the Tea Party GOP freshmen class.
Some talking heads are already taking action. MSNBC’s Lawrence O’Donnell last week said he had banned Walsh from his show until the Republican pays the child support he owes his wife and children. He also played a video of Walsh saying, “I won’t place one more dollar of debt on the backs of my kids” before noting that Walsh allegedly owes those kids $117,347 in child support, the Huffington Post reported.
Walsh’s ex-wife, Laura Walsh, says he failed to provide full child support for roughly five years from 2005 to 2010, from 2008 to 2010, the time of his election, she said he paid no support. After he was elected to Congress, which pays a salary of $174,000 a year, Walsh resumed full payments for their three children.
Laura Walsh’s suit also accuses Walsh and a girlfriend of taking international vacations while Walsh said he was too poor to pay child support.
Laura Walsh filed for divorce in December 2002 after 15 years of marriage. According to her suit, Walsh was $1,000 a month short of his commitment for 28 months during November 2005 to March 2008. Walsh allegedly paid nothing from 2008 until resuming in late 2010. She has asked the court to garnish his wages.
Susan Crabtree, Talking Points Memo, August 9, 2011
Eric Cantor’s Glaring Conflict Of Interest
When Eric Cantor shut down debt ceiling negotiations last week, it did more than just rekindle fears that the U.S. government might soon default on its debt obligations — it also brought him closer to reaping a small financial windfall from his investment in a mutual fund whose performance is directly affected by debt ceiling brinkmanship.
Last year the Wall Street Journal reported that Cantor, the No. 2 Republican in the House, had between $1,000 and $15,000 invested in ProShares Trust Ultrashort 20+ Year Treasury EFT. The fund aggressively “shorts” long-term U.S. Treasury bonds, meaning that it performs well when U.S. debt is undesirable. (A short is when the trader hopes to profit from the decline in the value of an asset.)
According to his latest financial disclosure statement, which covers the year 2010 and has been publicly available since this spring, Cantor still has up to $15,000 in the same fund. Contacted by Salon this week, Cantor’s office gave no indication that the Virginia Republican, who has played a leading role in the debt ceiling negotiations, has divested himself of these holdings since his last filing. Unless an agreement can be reached, the U.S. could begin defaulting on its debt payments on Aug. 2. If that happens and Cantor is still invested in the fund, the value of his holdings would skyrocket.
“If the debt ceiling isn’t raised, investors would start fleeing U.S. Treasuries,” said Matt Koppenheffer, who writes for the investment website the Motley Fool. “Yields would rise, prices would fall, and the Proshares ETF should do very well. It would spike.”
The fund hasn’t significantly spiked yet because many investors believe Congress will eventually raise the debt ceiling. However, since Cantor abruptly called off debt ceiling negotiations last Thursday, the fund is up 3.3 percent. Even if an agreement is ultimately reached before Aug. 2, the fund could continue to benefit between now and then from the uncertainty. (One tactic some speculators are using is to “trade the debt ceiling debate” — that is, to place short-term bets on prices as they fluctuate with the news out of Washington.)
Salon’s Andrew Leonard calls the debt ceiling negotiations “Washington’s titanic game of chicken,” and the longer the game goes on, the more skittish the bond markets will become.
“Cantor’s involvement in the fund and negotiations is not ideal,” Koppenheffer said. “I don’t think someone negotiating the debt ceiling should be invested in this kind of an ultra-short. We can only guess how much he understands what’s in his portfolio, but you’d think a politician would know better. It looks pretty bad.”
Cantor spokesman Brad Dayspring noted that U.S. Treasury bonds make up a large portion of the congressman’s pension, and said investment in ProShares ETF serves to balance that investment and to diversify his portfolio. Disclosure forms indicate that Cantor has considerable personal assets, including real estate in Virginia worth up to $1 million, and a number of six- and seven-figure loans to private entities and limited liability companies. So his investment in ProShares ETF represents only a small portion of his overall portfolio — but that share could grow a little larger just over a month from now.
By: Jonathan Easley, Editorial Fellow, Salo, June 27, 2011
Justice Thomas Doesn’t Ask Questions, But He Certainly Should Have Some Answers
Justice Clarence Thomas is famous for his silence. While his fellow Supreme Court justices regularly challenge and work out complex points with the lawyers who appear before them, Justice Thomas has not asked a question from the bench for five years and counting. Unfortunately, he has been quiet on another matter as well: the mounting concerns that he has flouted ethics and financial disclosure rules in accepting gifts and favors from wealthy friends who have a stake in the cases he decides.
Justice Thomas can choose not to ask questions. But it’s clearly time that he answered some.
Justice Thomas has, for at least the past few years, walked along the blurry edge that divides unethical conduct from acceptable practices on the Supreme Court. He notoriously chose not to disclose major sources of family income on federal forms for more than a decade in violation of federal law. Although he reported no income earned by his wife Virginia, she in fact earned hundreds of thousands of dollars. Even worse, some of the income he failed to disclose came from a conservative think tank that frequently files briefs with the Court. He also drew fire for attending, with Justice Antonin Scalia, a private get-together sponsored by billionaire political powerhouses David and Charles Koch whose pet corporate causes often come across the Justices’ desks.
Then, this week, the New York Times broke the story of Thomas’ close friendship and mutual back-scratching with a politically active real estate magnate Harlan Crow. Crow, the Times reported, “has done many favors for the justice and his wife, Virginia, helping finance a Savannah library project dedicated to Justice Thomas, presenting him with a Bible that belonged to Frederick Douglass [valued at over $19,000] and reportedly providing $500,000 for Ms. Thomas to start a Tea Party-related group.” He also, the Times discovered, has been trying to hide his role as the main benefactor behind a multi-million dollar museum in Georgia that is a pet project of the Justice. In addition, the Times story raised concerns about whether some of Justice Thomas’s travel was underwritten by Mr. Crow and whether such support was accurately disclosed in the Justice’s notoriously inaccurate financial disclosures.
Crow isn’t just a friend of Thomas who happens to be rich. He’s active in political causes, and has “served on the boards of two conservative organizations involved in filing supporting briefs in cases before the Supreme Court” including one, the American Enterprise Institute, that gave Justice Thomas a $15,000 bust of Lincoln.
Obviously, Supreme Court Justices are allowed to have friends, just like the rest of us. But unlike the rest of us, their friendships — especially when they involve expensive gifts and multimillion dollar favors — can result in momentous conflicts of interest, or the appearances of conflicts, that affect the entire country. Who Justice Thomas chooses to befriend is his own private business. But who he or his pet projects receive huge gifts from is all of our business.
Ethics issues on the high court can be tricky, since Justices aren’t required to abide by any specific set of rules and don’t have a higher court to keep them in line. But many, including Thomas’ colleagues Anthony Kennedy and Stephen Breyer, say that the justices hold themselves to the same code of conduct that regulates other federal judges and stipulates that judges “should avoid impropriety or the appearance of impropriety in all situations.” Failure to comply with the code of conduct “diminishes public confidence in the judiciary and injures our system of government under law.”
This is why the American people have the right to answers from Justice Thomas. Americans have become increasingly frustrated in recent years as the Supreme Court has handed down decision after decision that privileges the interests — and profits — of corporations over the rights of individual Americans to hold them accountable. Citizens United v. FEC was one such decision. Another is this week’s decision in Dukes v. Wal-Mart, which took away the ability of as many as 1.5 million victims of pay discrimination to band together in court to hold the company accountable for its discriminatory policies. Average Americans can’t afford a ride on a private jet or an expensive work of art, let alone afford to give these as a gift to a Supreme Court justice. Even if the motivations behind all these gifts are entirely pure, accepting them casts doubt on a judge’s ability to be impartial.
Justice Thomas needs to be open with the American people, all of whose lives are affected by Supreme Court decisions. He needs to tell us who is paying for his pet causes and whether he asked them to do so. He needs to tell us where his family income is coming from and whether it benefits from his work on the Court. He needs to tell us what gifts he’s received from individuals and organizations that have a direct interest in the decisions he makes. And he needs to tell us that he will recuse himself from any case that he appears to have a financial interest in.
If Justice Thomas wants us to trust that he will give a fair hearing to all Americans, regardless of cash or connections, he needs to be open and honest with us about the circles of influence he inhabits.
It’s time for Justice Thomas to speak up. The Supreme Court’s integrity depends on it.
By: Michael B. Keegan, President, People For The American Way, Published in HuffPost Politics, June 23, 2011
‘Illusions Of Grandeur’: The Richly Earned Humiliation Of Newt Gingrich
If his goal when he officially launched his presidential candidacy last month was to inflict a massive amount of humiliation on himself in as short a time as possible, then Newt Gingrich has succeeded spectacularly.
After an epically botched campaign roll-out — which included accusations of ideological treason from influential conservatives and a nationally televised exchange with an Iowa voter who called him “an embarrassment to our party” and urged him to quit the race “before you make a bigger fool of yourself” — Gingrich was left struggling to explain how he and his wife racked up hundreds of thousands of dollars in charges at Tiffany’s jewelers. Then he randomly took off on a vacation (a lavish Greek cruise, it turned out), and now he’s returned to find that virtually his entire staff has quit.
Does this latest development change the presidential race in any significant way? Not really. Since even before his month from hell, Gingrich had no realistic chance of winning the GOP nomination, and not since the 1990s has he been a significant force on the right. Most conservative activists and opinion-shapers long ago tuned him out.
But much of the political media world never quite figured this out, instead treating Gingrich for the last decade as an enduring relevant national leader. The instinct was understandable: The celebrity (and notoriety) he attained during his mid-’90s stint as House Speaker never fully faded, and he could always be counted on for a lively, provocative quote or two.
This is the promise of Gingrich’s amazing crash-and-burn as a White House candidate (I know, he says he’s staying in despite the staff defections): that it might compel the political media to realize that the emperor has no clothes.
The reality is that Gingrich’s serious career in elected politics lasted for 20 years and ended in 1998.
He spent the first 16 of those years clawing his way through his party’s House ranks, finally reaching the top spot just as the ideal circumstances — complete Democratic control of Washington for the first time since the Carter administration, a profoundly unpopular president, and a ton of low-hanging fruit in the South — presented themselves for a Republican takeover of the House. The midterm election of 1994 made Gingrich Speaker of the House.
The tactics he employed during that rise could be devious. Early on, he formed the Conservative Opportunity Society with about a dozen fellow far-right GOP members. They pushed their party’s leadership toward a more confrontational posture and engaged in harsh and highly personal attacks on their Democratic colleagues.
In one episode in 1984, Gingrich used an after-hours “special orders” speech on the House floor to read off the names of ten Democrats who had written a letter to Daniel Ortega, whose Sandinistas had seized control of the country in 1979, urging him to hold democratic elections and to allow expatriates to return to vote. The ten, Gingrich said, had “undercut and crippled” U.S. foreign policy; he suggested they be prosecuted under the Logan Act of 1798, which gives the president the right to conduct foreign policy. Upon learning of this, Speaker Tip O’Neill confronted Gingrich on the floor, calling his attack “the lowest thing I’ve seen in my 32 years in Congress.”
In 1989, Gingrich edged out Edward Madigan, the candidate preferred by Robert Michel, the pragmatic House GOP leader, to become minority whip, then the No. 2 position on the Republican side. Four years later, in the run-up to the 1994 election, Michel announced that he’d retire. Officially, it was his decision, but Gingrich was breathing down his neck. The GOP conference was increasingly filled with confrontational conservatives who preferred Gingrich’s style.
His four-year run as Speaker proved disastrous, for Gingrich personally and for his party. His own obnoxious style — when a South Carolina woman drowned her children in a horrifying late 1994 incident, Gingrich called it a sign of society’s breakdown and proof that people needed to vote Republican — alienated all but the most hardcore Republicans. And his eagerness to force a government shutdown over a GOP plan to slash Medicare spending gave President Clinton and Democrats a winning issue in 1996, when nearly 20 Republican incumbents lost their seats and the GOP barely held the House. Shortly after that, Gingrich held off an attempted coup from a band of frustrated but incompetent House Republicans. Then he made things worse for his party by leading an impeachment drive against Clinton in 1998 (even, as we later learned, while engaging in an extramarital affair himself), which backfired and led to shocking Democratic gains in that year’s midterms.
It was then that Gingrich took his massive unpopularity and walked off the political stage, knowing that his party was ready to throw him off if he didn’t make the first move. From that moment on, the party’s elites — elected officials, activists, interest group leaders, and opinion-shaping commentators — have had little use for him. But the media has been a different story. A few years after his demise as Speaker, Gingrich reemerged and was quickly welcomed back into every green room in America. Convinced he’d been rehabilitated, he began making noise about seeking the presidency, first in the run-up to the 2008 race and then again this time. His taste for ugly, personalized attacks hadn’t faded, either, something he’s shown over and over during the Obama presidency.
But the idea that he was a real player in politics was an illusion, something that’s become clear during the month-long Gingrich candidacy. Most of the important figures in the Republican Party never had any interest in seeing him run for president. There have been few endorsements, donors have shunned him, and conservative activists and commentators have amplified every one of his embarrassments.
Even with his staff quitting on him, Gingrich insists he’ll stay in the race. We’ll see how long that lasts. One way or the other, he’ll soon be taking the same walk of shame off the political stage that he took 13 years ago. This time, let’s hope it’s for good.
By: Steve Kornacki, News Editor, Salon, June 10, 2011
Gov. Rick Scott May Personally Benefit From New Law That Hands Medicaid Program Over To Private Companies
Florida Gov. Rick Scott (R) signed “a landmark Medicaid overhaul” yesterday that will put “hundreds of thousands of low-income and elderly Floridians into managed-care plans.” The proposal “gives managed care companies more control over the program that’s paid for with federal and state money,” a shift the state GOP claims will “hold down spiraling costs in the $20 billion program.” However, as TP Health editor Igor Volsky pointed out, a five-county pilot program in Florida already revealed that such a plan produces “widespread complaints and little evidence of savings.” Under managed care, states “have to ensure that private payers aren’t looking out for short term profits by denying treatments or reducing reimbursement rates” and — given what occurred during the pilot program — the results “are already less than promising.”
But Scott may have another reason to push a dubious bill into law. As Mother Jones reported, one of the private managed-care companies that stand to gain from the new law is Solantic, “a chain of urgent-care clinics aimed at providing emergency services to walk-in customers. Solantic was founded in 2001 — by none other than Rick Scott:
The Florida governor founded Solantic in 2001, only a few years after he resigned as the CEO of hospital giant Columbia/HCA amid a massive Medicare fraud scandal. In January, according to the Palm Beach Post, he transferred his $62 million stake in Solantic to his wife, Ann Scott, a homemaker involved in various charitable organizations.[…]
“This is a conflict of interest that raises a serious ethical issue,” says Marc Rodwin, a medical ethics professor at Suffolk University Law School in Boston. “The public should be thinking and worrying about this.”
Scott’s office dismissed the conflict of interest concern as “incorrect and baseless.” However, Scott’s history of fraud with entitlement programs (in that case Medicare) should certainly raise a red flag here. And it is not as if Scott is completely clean when it comes to the mix between professional office and personal interest.
Incidentally, Scott also just signed a bill that will require anyone applying for welfare benefits to pay for a drug test to qualify for benefits. They will only recoup that fee if they pass. One company that provides such drug tests? Solantic.
By: Tanya Somander, Think Progress, June 3, 2011
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