|
Saturday, April 15, 2006
Smoking gun: Did McCallum sabotage the tobacco RICO case? That is until Sen. Dick Durbin stood up and blocked the nomination of Associate Attorney General Robert D. McCallum Jr. to be our country's next ambassador to Australia. Under Senate rules, any senator can put a hold on a nomination, but can be overriden by a vote of 60 of the 100 senators. In a letter to President Bush, the Democrat from Illinois said it was premature to place McCallum in a new position of trust as long as the Justice Department's Office of Professional Responsibility is conducting an ethics inquiry into allegations the former tobacco lawyer sabotaged the Justice Department's long-standing lawsuit against the tobacco industry. Durbin wrote his letter exactly 12 years to the week after executives for the top seven tobacco companies were sworn in before Congress and testified that they didn't believe cigarettes were addicting. The civil racketeering tobacco case, filed during the Clinton administration, alleges the cigarette companies knowingly engaged in deception for decades by denying that nicotine was addictive and downplaying the dangers of smoking. At the end of the tobacco trial last year, the Justice Department bypassed the position of one of its own witnesses and reduced the amount the Bush administration was seeking from the tobacco industry from $130 billion to $10 billion. Some government witnesses have claimed they were pressured to reduce their damage estimates. The controversy led the Justice Department's Office of Professional Responsibility to launch an ethics inquiry. McCallum, the department's No. 3 official, was specifically targeted. "It appears that the dramatic change in course by the Department of Justice was not the result of any new evidence about smoking cessation or the facts of the case but the result of political pressure on the career prosecutors," Durbin wrote the president. "Senators should be given an independent, unbiased assurance that he did not take any improper actions in the tobacco lawsuit before we are asked to consider his nomination." U.S. District Judge Gladys Kessler has not yet ruled in the tobacco case. Last July, after the department abandoned the $130 billion figure, the judge granted the request of six anti-smoking groups to join the lawsuit, saying the government "no longer adequately represents" their interests. Given how this case was mishandled, is it any wonder why oil company executives were not sworn in before testifying in front of Congress last summer and why their companies are reaping record profits even as gas prices approach $3 a gallon?
Friday, April 14, 2006
New Jersey's anti-smoking hypocrisy knows no bounds Smoke 'em if you got 'em tonight in New Jersey, because come midnight your butt belongs to the state. Get caught smoking in a restaurant, on school grounds, at a train stop, even at a race track or a bowling alley and you can be fined $250 to $1,000 under a state-wide smoking ban that goes into effect at 12:01 a.m. Saturday. We've come a long way baby, or have we? The ban was passed on the final week of the Assembly's session and then signed into law by former Gov. Richard Codey one day before he left office. So the politicians had plenty of political cover to duck behind. Despite the ban's supposed health benefits, smokers can still light up in Atlantic City's casinos - the state's biggest tourist destination. It's still perfectly legal to buy a pack of smokes in New Jersey. The state already has the second-highest taxes on tobacco products in the nation - 48 percent plus a 6 percent sales tax. That works out to $2.40 per cigarette pack, second only to Rhode Island's $2.46. That tax even applies to smokes purchased online. And to help reduce a $4 billion budge deficit next year, Gov. Jon Corzine wants to raise the tax to $2.75 per pack. "Nearly 60 percent of the cost of an average pack of cigarettes already goes to the government," according to the Philip Morris tobacco company. In 2004, the total tax revenue generated on New Jersey's tobacco sales topped $119 million, according to the Brown and Williamson tobacco company. And that's just from the taxes. New Jersey also joined 47 other states in exempting big tobacco companies from class action lawsuits from smokers by signing a 1998 settlement agreement that compensated the states for increased Medicaid costs incurred by smokers. The settlement provided New Jersey with $7.5 billion over 25 years - or a lump sum payment of $3.5 billion. New Jersey took the "quick cash," and much like winning the lottery, the state began using the money to bridge gaps in its budget. But like winners of a lawsuit getting paid on indemnity, the state didn't want to wait for the cash. Instead, it attempted to securitize a state bond with projected cigarette tax revenue. Following that decision, rating agencies substantially downgraded New Jersey's credit rating. The rating agencies said their low marks for the bonds reflected a concern the money needed to repay the loan will be jeopardized if New Jersey residents either quit smoking in great numbers or avoided state taxes by purchasing cigarettes out of state. New Jersey's share of that largesse was $246 million in 2005 and $249 million this year, according to a U.S. Government Accountability Office report released this week. However, New Jersey spends the bulk of that money on interest payments on those bonds and less than 1 percent of the money on health care, the GAO found. And New Jersey spent just $11.5 million on the state's tobacco prevention and cessation program this year - down from $30 million in 2003. Balancing the budget on the backs of addicted smokers is bad enough, but now telling them they can't smoke in public is the height of hypocrisy.
Thursday, April 13, 2006
Who is Louis DeNaples? No lawyer has contacted me asking for a retraction. But it still has me troubled. Who is Louis DeNaples? I do know DeNaples has given more than $1 million to the campaigns of the state's top politicians - including the governor, lawmakers, judges and state attorney general - over the last five years.
I also know DeNaples is now competing for one of only two licenses in the state available for a free-standing slot machine parlor. But I can't even find a picture of the guy through Google or Yahoo. Is DeNaples a bank chairman, businessman and a pillar of his Wilkes-Barre/Scranton community, as Forbes.com lists him? Is he an opportunist who sees the potential of turning a defunct Poconos "lovers" hotel, once known worldwide for its heart-shaped tubs built for two, into that region's first slots parlor - and eventually a casino? Is he a criminal looking to gain entry into the highly profitable world of legalized gambling? Is he all three, befitting the sordid politics and history of the Northeastern Pennsylvania coal region? I'll tell you straight up I don't know. But I can't help but feel I need an answer to that question. I do know DeNaples bought the once-"beautiful Mount Airy Lodge" in 2004 for $25 million and has not made any political contributions since he applied for a license to operate a slots parlor there on Dec. 21, 2005, which would be illegal. He plans a 200-room hotel and 2,400 slot machines on its 890 acres. I do know DeNaples, 64, of Dunmore, is president of DeNaples Auto Parts, the 720-acre Keystone Landfill, vice president of D&L Realty Corp and chairman of the Board of First National Community Bancorp Inc. He's also on the board of Blue Cross of Northeastern Pennsylvania. And I do know, thanks to the Pittsburgh Tribune-Review, that a spokesman for DeNaples says the public allegations against his boss are largely unproven. Here's what is proven: DeNaples pleaded no contest to felony fraud in 1978 after a federal jury could not reach a verdict on charges he tried to defraud the government out of $525,000 in the wake of Tropical Storm Agnes. He received a suspended sentence.
However, Kevin Feeley, a DeNaples aide and spokesman, told the Trib there were four defendants in the original trial and, "There was not a scintilla of evidence to suggest Louis had anything to do with it." I've worked in that region. When Agnes hit in 1972 the area was ruled by Congressman Dan Flood the way Mayor Richard Daley once ruled Chicago. The locals still tell tall tales of residents whose homes were not touched by the flood waters suddenly buying fur coats and new cars with federal grant money. State Senate President Pro Tempore Bob Jubelirer, who accepted $20,000 from a DeNaples-owned company even though he voted against the slots law, called DeNaples a respected businessman. "Twenty-eight years ago, Louis DeNaples had a conviction. Twenty-eight years is a long time," Jubelirer said. "... He's given an enormous amount back to his community. It's certainly unfortunate people would want to take advantage of something like that." Blair County Commissioner John Eichelberger, Jubelirer's opponent in the Republican primary, has called on the incumbent to return the money to DeNaples. Jubelirer, however, dismissed it as politics. In 2001, the IRS filed an affidavit in U.S. District Court outlining contacts and "good will" and protection money DeNaples allegedly paid to William "Big Bill" D'Elia, the alleged head of the Buffalino crime family in Northeastern Pennsylvania. But neither man was charged with any wrongdoing. "Frankly, the allegations amount to hearsay upon hearsay, assumptions and idle rumor, and in one instance they referred to one of those sources as basing his source on street talk," Feeley told the Tribune-Review. "There is a reason none of that has been proven: It is not true." In 1989, Harold Kaufman, a former union official, told the Pennsylvania Crime Commission that D'Elia was a mob power broker in the solid-waste landfill industry in upstate Pennsylvania. DeNaples heads the Keystone Landfill, one of the largest in the state, so it's certainly possible the two have at least met. Again, I've never met DeNaples. But I have met D'Elia. It was only for a moment and, I'm sure, entirely forgetable to him. He used to hold court in a booth at The Woodlands, a nightclub near Wilkes-Barre which was known in the '90s as being one of the largest purchasers of alcohol in Pennsylvania. And I do know D'Elia, 59, of Pittston, is banned from Atlantic City's casinos by the New Jersey attorney general's office. DeNaples' direct competitor for one of the two free-standing slots parlor licenses available in the state is Greg Matzel, who applied for a license for Pocono Manor Resort & Casino in Monroe County. On Thursday, Matzel told the Associated Press neither he nor any other principal in the Pocono Manor project has donated money to state lawmakers. "It would be an absolute tragedy if politics trumped economic benefit and better judgment," Matzel said. "Clearly, we're concerned about any conflicts that may exist. "We come with no strings attached," he added. "Clearly, there will be no public perception that there was any favoritism given to us if we are awarded the license." DeNaples is a friend and former client of Scranton lawyer William P. Conaboy, 46, vice president and general counsel at Allied Services in Lackawanna County. Conaboy is also a director on the bank board DeNaples chairs. Conaboy was appointed to the state gambling commission by state Senate Democratic leader Robert J. Mellow, whom Conaboy once served as an aide.
Eckenrode was charged with murder last month after his girlfriend fell from the window of his 23-story apartment in Harrisburg. Rachel Kozlusky, 23, plunged to her death after the two had been on a two-day drinking spree, officials said. Mellow appointed Raymond S. Angeli, the president of Lackawanna College, as Conaboy's replacement. DeNaples is also tied indirectly to him. Angeli reports to a 22-member board whose chairman is Dominic L. DeNaples, Louis A. DeNaples' older brother. Angeli has denied the existence of any conflict of interest, saying he would decide licenses on their merits. Dominic DeNaples, 67, of Dunmore, has no stake in his brother's slots application, according to the AP. However, he is listed by Forbes.com as a First National bank director, president of D&L, and vice president of both the landfill and auto parts businesses. Louis DeNaples' spokesman, Kevin Feeley, said Thursday that any suggestion of a conflict between DeNaples and board members is "baseless and without support and fact." "I think frankly they do a disservice to members of the board who take their jobs seriously and who are all highly experienced professionals," Feeley said. For more about Louis DeNaples and to read my complete take on this long-predicted Slotsylvania snafu, click here. Labels: casino, Ed Rendell, Louis DeNaples, slots
Wednesday, April 12, 2006
Federal lawsuit filed over new voting machines As if on cue, state, federal and Allegheny County officials were sued today in federal court over that county's proposed change of voting machines - one day after some voters used old machines to pick a replacement for disgraced former state Rep. Jeff Habay. The lawsuit alleges that the county's proposed purchase of 4,700 iVotronic machines from Omaha, Neb.-based Election Systems & Software for nearly $12 million today was so rushed that serious election day problems can be expected, according to the Pittsburgh Tribune-Review. "We could have bedlam in this election in May, the sort of thing you saw in Florida in 2000," said lawyer Harry Litman, a former U.S. Attorney for Western Pennsylvania who filed the suit on behalf of People for the American Way and seven voters. The same machines Allegheny County bought drew the ire of Miami-Dade County officials - home of the world-famous hanging chad - for a "serious bug" in their software that results in votes potentially being lost and machines not being accounted for in the system's self-generated post-election audit. Isn't that what the federal Help America Vote Act was supposed to prevent? The Act provided $135 million to Pennsylvania counties to help pay for new machines so long as they were in place by this year's primary. However, the state's Constitution requires that any change of voting machines first be approved by referendum using the old machines Voters still don't know why the state Supreme Court reversed a Commonwealth Court decision that purchasing new machines without a referendum would be illegal. As I reported yesterday, the justices have yet to file a full written opinion justifying their March 2 order. Despite the millions of dollars at stake, the new lawsuit asks a judge to order the county to use lever machines in the primary and general election. There was apparently nothing wrong with them Tuesday when they were used in a special election. Democrat Shawn Flaherty, the son of the late Allegheny County commissioner and Pittsburgh Mayor Pete Flaherty, beat Republican Mike Dolan by just 108 votes, 5,545 to 5,437, according to unoffical returns. If the tally holds up after a review by the county elections board on Friday and possible court challenges by Dolan, Flaherty, 46, of Fox Chapel, will serve the remaining 8 1/2 months of Habay's term. Habay, 39, resigned Feb. 8 after he was sentenced to six to 12 months in jail for using his office staff to do campaign work on state time. He is free on bond because he is also awaiting trial on other charges including allegedly making a false report of a fake anthrax threat. Habay was first elected in the 30th District in 1994. The district includes Hampton, Fox Chapel, and parts of Ross, O'Hara and Shaler townships, all suburbs north and east of Pittsburgh. The race to replace him was marred by mudslinging. Flaherty announced during a news conference in March that he had a child 14 years ago with another woman while he and his wife were separated. Dolan, who admitted learning of Flaherty's out-of-wedlock kid illegally through family court records, took heat for his own court record which stems from his college days. While attending Penn State, Dolan pleaded guilty to three charges and was found guilty of two others from 1997 to 2000, including two charges of disorderly conduct and one charge each of purchase or consumption of alcohol by a minor, criminal mischief and public drunkenness, the Pittsburgh Tribune-Review reported, citing Centre County court records. All were summary offenses. Both guys vowed to bring integrity back to Harrisbugh but either would fit right in with the bunch of twits we have there now. With Flaherty's win, Democrats picked up a seat in the Republican-dominated state House but still trail, 109 seats to 94.
Tuesday, April 11, 2006
New voting machines, more choices mean problems ahead Fueled by anger over the Legislature's self-imposed payraise, 61 incumbents will face challengers in the May 16 primary - more than double the number of incumbents in state races who were challenged in the 2004 election. I fully expect chaos will ensue. Don't worry, your government is here to help. You know, the same people who got state Supreme Court permission to ignore the Constitution's requirement that any change of voting machines first be approved by referendum using the old machines. It was either that, or Pennsylvania counties would have to reimburse the federal government up to $135 million from the 2002 federal Help America Vote Act to help replace obsolete mechanical-lever and punch-card machines. By the way, it's been more than a month since the March 2 ruling, but the Supreme Court has yet to post a full opinion on its Web site justifying its reversal of a Commonwealth Court decision that the purchase of new machines would be illegal. As usual, confusion over the federal requirement reigned and most counties waited until the last minute for somebody to finally figure the whole mess out for them. In Bucks County where I live, the commissioners felt it would be imprudent to rush into a contract with a vendor whose product had not been certified, Chief Operating Officer David Sanko said. The county is talking with its vendor - Washington-based Danaher Corp. - and other counties in hopes of obtaining a minimal number of the touch-screen devices to get through the primary. But Sanko said it is prepared to use its lever machines - and risk losing at least some of its $3 million in federal money - if that is unsuccessful. Meanwhile, election officials in other counties are now scrambling to purchase, unpack and figure out the manuals to new electronic touch-screen or optical-scan systems before the election. With the counties busy, the state has launched its "Ready.Set.Vote." program Tuesday to teach voters how to use the new machines via the Internet. At www.votespa.com, people are supposed to be able to learn by casting a vote in one of five weekly "cultural elections." For example, visitors to the Web site will be asked: "What is your favorite movie ever made in Pennsylvania?" But when I tried it tonight all I got was an error page. Oops. Once they get that figured out, somebody still has to teach the old folks who will be manning the polls on election day how to use computers when they had a hard enough time figuring out manual levers. My prediction - a very long election night.
Monday, April 10, 2006
Brightbill's motive questionable in slots money give-back I was going to say Gov. Ed Rendell and every legislator should follow his example. It would go a long way to mollify angry voters like me, who feel that special interests corrupted the lawmaking process until slot machines could be legalized. It was an unusual move to be sure, coming at a time when the state's new Gaming Control Board is meeting in Philly to hear testimony on applications for slot parlors. So I decided to do some more checking. I'm sure glad I did. The guy who gave most of the money to Brightbill - and more than $1 million to most of the state's top elected officials, including the governor and attorney general - is a slots parlor hopeful and reportedly a felon with alleged ties to mob figures. Meanwhile, the senator's motives for giving the money back seem less than pure too. The Associated Press reported Sunday that Brightbill, who opposed the 2004 bill legalizing slot machines, said he gave back two checks for $10,000 each from D&L Realty, of Lackawanna County; he also returned a $1,000 check from the Pennsylvania Horsemen's Benevolent & Protective Association. "I've decided because there are still other votes to occur and we still have some important things to do on gambling legislation that I should not take gambling money," the Lebanon County Republican said, adding he supports lobbying reform. But before you get the idea that Brightbill's a standup guy, better read the Keystone Review. Run by the former campaign manager of Brightbill's primary opponent, a March 23 blog on that Web site says Brightbill accepted more than $52,000 from lobbyists and individuals with ties to gambling interests since August 2003. Brightbill told the Lebanon Daily News his staff would review his campaign finances and return any other pro-gambling monies he received. Besides the primary challenger, Brightbill had another reason to turn back the money - a public relations problem courtesy of Democratic Lieutenant Governor candidate Gene Stilp. Stilp will stage a lengthy walk Wednesday to demand that Brightbill return tens of thousands of dollars he has taken in the form of per diem expenses, even though the senator lives well within commuting distance of the Capitol. The state House has a rule that no legislator can receive a per diem if the member lives within 50 miles of the Capitol. However, Senators can take a per diem - up to $143 per day - no matter how close they live, Stilp said in a press release Monday. In recent years, Brightbill has collected as much as $8,000 to more than $10,000 per year in extra income from the per diems. "He does not stay in hotels in Harrisburg, he merely pockets the money," Stilp said. To prove his point, Stilp will walk from Brightbill's home in Mt. Gretna, Lebanon County to the senator's Capitol office. The distance: exactly 26.2 miles. The $20,000 in checks D&L Realty gave to Brightbill were donated in October 2004 and March 2005. They will go back to that company's owner, Louis DeNaples, who has applied for one of the 14 state licenses to operate a slots parlor at the former Mount Airy Lodge in the Poconos. DeNaples is president of DeNaples Auto Parts, the Keystone Landfill, vice president of F&L Realty Corp and chairman of the Board of First National Community Bancorp Inc., according to Forbes.com. On Thursday, the Pocono Record reprinted a report from the Philadelphia Inquirer that says DeNaples pleaded no contest to felony fraud in 1978 on federal conspiracy charges that he attempted to defraud the government for clean-up work after Tropical Storm Agnes. He received a suspended sentence. The Inquirer also cited three reports issued by the now defunct Pennsylvania Crime Commission between 1983 and 1990, in which DeNaples was associated with suspected mob figures including William "Big Billy" D'Elia, the alleged head of the Bufalino crime family in northeastern Pennsylvania. Yet that didn't stop most of the state's top elected leaders from taking more than $1 million in campaign contributions from him, D&L Realty and another company he owns, RAM Consultants, between 2000 and 2005, according to a review of his contributions by the Scranton Times-Tribune. Those who took donations included Gov. Ed Rendell and every top House and Senate leader, candidates for representative and other state offices including judgeships, campaign committees with ties to the legislative leaders and the Democratic and Republican House and Senate campaign committees. DeNaples is partial to Democratic candidates and causes, giving them $810,950 compared to $192,000 for Republicans. But two members of the GOP did stand out. One of those was Senate President Pro Tempore Robert Jubelirer, who I wrote about two weeks ago for accepting $20,000 from DeNaple's two businesses even though he voted against the slots law. The other was state Attorney General Tom Corbett, whose campaign committee, Friends of Tom Corbett, accepted $10,000 from D&L on Jan. 27, 2004 and another $25,000 on April 15, 2004 - two months before the slots law was passed. By the way, Jubelirer recently praised Corbett for starting an anti-corruption task force, saying, "Gambling has never proved to be a corruption-free enterprise, no matter which state tries it, and no matter how strong the regulatory oversight is designed to be. So there is no question there is trouble ahead for Pennsylvania. The only questions seem to be when, where, and how much trouble hits." For a complete listing of contributions from DeNaples and his companies since 2000, click here. Labels: casino, David Brightbill, Louis DeNaples, slots DeNaples' contributions topped $1 million DeNaples, a felon with alleged ties to organized crime, and his two businesses, D&L Realty and RAM Consultants, donated more than $1 million to the state's top elected officials. For more about his contributions to Sen. David "Chip" Brightbill, click here. From 2000 through 2005, DeNaples and his two partnerships, D&L Realty and RAM Consultants, have contributed at least $1,002,950 overall to state elected officials, including Gov. Ed Rendell and every top House and Senate leader, candidates for representative and other state offices, campaign committees with ties to the legislative leaders and the Democratic and Republican House and Senate campaign committees, according to an analysis of campaign finance records conducted by The Times-Tribune of Scranton. However, I could not independently confirm the newspaper's findings by duplicating the effort. My analysis using the database put the total at $679,375. But I question the completeness of the records input into the database. For instance, a $10,000 donation D&L Realty gave to Friends of Tom Corbett on Jan. 27, 2004 does not appear in the contribution database, but shows up in that campaign committee's finance report with no mention in subsequent reports of the money being returned. It took a little doing, but the graphical links for more details below all should work. The list is the actual responses I received from the database. UPDATE FEB. 1, 2008: The links I so painstakingly copied below no longer work because the state has finally re-done its database after two years of me bitching about it. (It still doesn't let you sort by date and dollar amount after the initial search and you can only use the last name of a person. Good luck if that name is Smith.) It now lists 56-pages worth of donations from DeNaples between Jan. 1, 2000 and today. To see them for yourself, click here. Also, the Times-Tribune has yanked the story about DeNaples' contributions from its Web server, but left a bunch of feature stories it wrote at about the same time online. I don't know if this was done because of a problem with the story the newspaper never publicly admitted or if it just lapsed off over time. I am confident in the $679,375 amount I calculated on a spreadsheet, but again it was only as good as the data inputted into the state database. For more about Louis DeNaples and to read my complete take on this long-predicted Slotsylvania snafu, click here.
|