KWJ SubBlog

2012

 November 14, 2012: Link

[Note: this was obtained from an open record request for emails, as an attachment to one of the emails.  The KDA did not provide it when I requested it on April 20, 2015.]

December 7, 2012: Link

 2013

January 28, 2013: Link

March 21, 2013: Link

June 13, 2013: Link

September 12, 2013: Link

December 30, 2013 (Draft): Link

2014

Jonathan Miller/Frost Brown Todd lobbing money for hemp at federal-level:

Representing the Kentucky Hemp Industry Council:

Filing Type      Amount Reported       Date Posted    Filing Year      Document

Registration                 7/16/2015        2015    Link

Third Quarter Amendment                 12/21/2015      2015    Link

Fourth Quarter Report                        3/10/2016        2015    Link

First Quarter Report    $9,500.00        4/28/2016        2016    Link

Second Quarter Report           $15,000.00     7/15/2016        2016    Link

Third Quarter Report  $15,000.00      10/19/2016      2016    Link

Fourth Quarter Report            $15,000.00     1/17/2017        2016    Link

 Representing Vote Hemp, Inc.:

Filing Type      Amount Reported       Date Posted    Filing Year      Document

Registration                 7/15/2015        2015    Link

Third Quarter Amendment     $22,500.00     12/21/2015      2015    Link

Fourth Quarter Report            $22,500.00     3/10/2016        2015    Link

First Quarter Report    $22,500.00     4/28/2016        2016    Link

Second Quarter Report           $22,500.00     7/15/2016        2016    Link

Third Quarter Report  $22,500.00      10/19/2016      2016    Link

Fourth Quarter Report            $22,500.00     1/17/2017        2016    Link

 Totals:

Kentucky Hemp Industry Council:    $54,500

Vote Hemp, Inc:         $135,000

David Whitehouse (& Spouse) Contributions to Edelen:

(KREF Search: Link)

Mark Riddle Contributions to Edelen:

Ohio, 1870 [“White Supremacy Triumphant!”]:

Eaton weekly Democrat, October 13, 1870: Link

Kentucky 1892:

AND

The Mt. Sterling advocate, November 8, 1892: Link

Kentucky 1894:

The Mt. Sterling advocate, October 30, 1894: Link

Kentucky 1904 [Note: same year Alabama added “White Supremacy” to the racist rooster emblem]:

The Adair County News, October 19, 1904: Link

Search for more:

One of Henry Clay’s nicknames was “The Old Coon”:

Henry Clay, one of the most dominant politicians of the mid-nineteenth century, was nominated for President in 1824 and 1844. His nickname, “the old coon,” was a reference to his rural Kentucky roots. Taking a cue from William Henry Harrison and his popular log cabins, Clay sought rustic appeal by adopting the raccoon as his political mascot.  (Link)

Link

          John W. Ridley and Carolyn Ridley Campaign Contributions to Beshear (and his son, Andy) and to Adam Edelen:

            Jesse Clay McKnight was partners with Adam Edelen, Ralph Coldiron, and Kim Geveden in Bluesand Investments, LLC.

          McKnight had previously worked as a legislative lobbyist in Kentucky:

KLEC Search: Link

          McKnight became a “consultant,” a nebulous title in politics for “the crossroads of political consulting, lobbying, grassroots organizing and land use politics,” as his entry on the New Leaders Council website describes it:

New Leaders Council: Link

[Note: Edelen is also a New Leaders Council Ambassador: Link]

Federal Conflict of Interest Requirements

          The Herald-Leader focused on state law, ignoring federal restrictions that might also apply.  The 2009 CMRS Grant Application states the following restrictions regarding conflicts of interest:

Link

The Kentucky Auditor of Public Accounts is Supposed to be a Watchdog Overlooking the CMRS Grant Program:

           The federal flow-down provisions—as an attachment to the grant application, with the language tailored for the State of Kentucky—specifically require applicants to grant access to records to the Kentucky Auditor of Public Accounts.  The 2009 CMRS Grant Application states the following regarding records:

Link

The Kentucky Auditor (Crit Luallen and Adam Edelen) Have Both Had a Conflict of Interest Regarding the CMRS Requirements:

           The Herald-Leader did not mention that Ralph Coldiron requested and received an exemption for “all Purchase Orders (Master Agreements) issued as instruments of obligation for grant funds awarded by the CMRS Board.”

Government Contract Review Committee Minutes for December 15, 2008:

(Government Contract Review Committee Minutes for December 15, 2008: Link)

           When Ralph Coldiron complained to his business partners Adam Edelen and Bob Babbage about needing to find an income source in October 2008, all of his business assets were at risk.  Chase Bank (originally Bank One) has a security interest in all of Ralph Coldiron’s business assets, which serve as collateral on a loan.  The security agreement was originally filed on September 26, 2001:

Cultivating Political Contacts:

[Terrell Ross] later became head of the Buffalo Trace Area Development District, where he cultivated political contacts.

After landing a job at Merit Financial Corp., he and the managing director of the firm's Cincinnati office, Murray Sinclaire Jr., bought the securities firm in 1989 and turned it into Ross Sinclaire and Associates, now the sixth-largest municipal financial firm in the country. Using his contacts, Ross helped land deals to finance construction of schools and county courthouses across Kentucky.  (Ryan Alessi, Bill Estep and Ashlee Clark, "Nunn saga filled with irony, high drama Families' prominence raises profile of murder case," Lexington Herald-Leader, September 20, 2009.)

And

[Terrell] Ross first gained statewide attention during former Gov. Wallace Wilkinson's administration, after he hired relatives of officials in the legislature and state Department for Local Government for an underwriting firm he represented in Kentucky.

He and his associates also contributed thousands of dollars to Wilkinson's election campaign and inaugural fund, and the firm, Merit Financial Corp., handled nine of the administration's first 11 bond issues.

According to filings that Stumbo sent to the Legislative Ethics Commission last year, Ross, Sinclaire and Associates is a client of the law firm.

Stumbo and Bowling said that just as they receive no money from their firm's bond work, they get no money from its work for Ross, Sinclaire and Associates. That's because each partner keeps whatever profits he generates, they said.

All of the firm's bond work has been done by the Lexington office, which has been headed for the last year by Gil Johnson, a partner who does legal work for Ross, Sinclaire and Associates.  ("2 Powerful Legislators' Firm Helped 4 Counties Sell Bonds, Report Says," Lexington Herald-Leader, January 29, 1995.)

And

Julian Carroll claims he acquired his stock as payment for legal work he did for the track:

Sen. Julian Carroll, D-Frankfort, a governor in the 1970s, also is a former co-owner of Thunder Ridge. Carroll said he acquired an ownership stake by doing more than $100,000 in legal work for the track. But Carroll said Tuesday that he and the track parted ways “years ago.”  (John Cheves, “Democratic co-sponsor of casino bill is employed by horse racetrack co-owner,” Lexington Herald-Leader, February 15, 2012.)

          In late November 1994, Julian Carroll owned 200 shares (6.89%) of Appalachian Racing, Inc.’s 2,903 shares then outstanding.  Terrell Ross and Murray Sinclaire each owned 986 shares (i.e., each owned 34%).  (Jim Jordan, “Thunder Ridge Track Owner Files Bankruptcy,” Lexington Herald-Leader, November 24, 1994.)

Carroll was instrumental in getting the racing license transferred to Prestonsburg to open Thunder Ridge:

Former Gov. Julian Carroll, who practically filibustered the Kentucky Racing Commission on behalf of a proposed harness track at Prestonsburg, did not return phone calls. Terrell Ross, one of the principal investors in that track, said through a spokesperson that he is “not ready to comment on that investment.”

The newfound reticence comes after a spate of bad news about the proposed harness-racing circuit in Eastern Kentucky. For a year and a half harness horsemen battled with the Kentucky Racing Commission and thoroughbred forces in general to salvage or revive their sport in this state.

In the end Eastern Kentucky was ceded to harness racing. One group was allowed to transfer the license for Louisville Downs to Prestonsburg for a track ultimately called Thunder Ridge; another to move the Riverside Downs license from Henderson across the state to Ashland for a track to be named Mountain Meadows.

Now both Thunder Ridge and Mountain Meadows are in bankruptcy.  (Jacalyn Carfagno, “E. Ky. Harness Racing Troubles Cast Doubt on Circuit’s Future,” Lexington Herald-Leader, December 4, 1994.)

Floyd County Fiscal Court Avoids State Law Requiring Construction Bids by Declaring an Emergency:

PRESTONSBURG -- Facing a tight deadline, the Floyd County Fiscal Court has taken action allowing officials to avoid a state law requiring that they advertise for construction bids for a proposed harness track. ... Also, the bond underwriters who are helping the county arrange financing for the project have disclosed they are investors in the track, as has former Gov. Julian Carroll. ... Terrell Ross and Murray Sinclaire Jr., partners in Ross, Sinclaire and Associates, a Lexington bond underwriting firm, officially disclosed that they are major shareholders in Mountain Racing. The disclosure was contained in a message they sent Friday to the Floyd County Public Properties Corp., a public corporation made up of fiscal court members.

The firm is helping the county sell $2.7 million in bonds to pay for the track site and for the construction of a track grandstand and a county convention center.

Carroll, who has acted as a lawyer for Mountain Racing, said he and Floyd County businessman Clyde Woods also are major shareholders.  ("Floyd County to Forgo Taking Track Construction Bids," Lexington Herald-Leader, August 22, 1993.)

The Floyd County Fiscal Court brought RSA in to help arrange financing for Thunder Ridge:

Thunder Ridge, which began as a controversial effort in 1992 to bring harness racing and intertrack wagering to Eastern Kentucky, remains controversial.

Five years after it opened, ownership has been through three name changes and two bankruptcy closings. Floyd Judge-Executive Ben Hale claims everybody still considers the facility vital to Eastern Kentucky’s future in tourism, but he frets openly now over the terms of a proposed lease renewal with the track’s current owners, Appalachian Racing.

Lexington bond agents Terrell Ross and Murray Sinclaire Jr., whose company was brought into the project by local officials to help arrange financing for the project, are now the track’s majority stockholders. … Meanwhile, Thunder Ridge’s balance sheet also shows that the track receives $180,000 a year from the state Harness Horsemen’s Association, which director Bill Napier said is earmarked to pay off the principle on a $180,000 loan that Thunder Ridge’s owners obtained from a Prestonsburg bank.  (Lee Mueller, “Horses, Cars Put Facility on Fast Track,” Lexington Herald-Leader, July 27, 1998.)

Floyd County Fiscal Court’s agreement with Appalachian Racing places financial risk on Floyd County taxpayers:

The bounced checks created some concern at the courthouse in Prestonsburg, where the Floyd County Public Properties Corp. agreed in 1993 to issue $2.7 million in bonds to pay for the track site and track construction.

Under an agreement with Appalachian Racing and Floyd Fiscal Court, the county would assume liability for the bond issue if the company cannot make its bond payments.  (Lee Mueller, “Ex-Senator Bounces $250,000 in Checks,” Lexington Herald-Leader, February 9, 1996.)

Privileged Treatment for Politicians (even convicted politicians):

           David LeMaster was a Kentucky state senator convicted of lying to the FBI in 1993, during the BOPTROT investigation.  [Wikipedia Entry on BOPTROT: Link]  LeMaster was not in prison, in early 1996, because he was appealing his conviction.           Julian Carroll was vice president of Appalachian Racing.  Carroll was, of course, aware of LeMaster’s conviction for lying to the FBI and his BOPTROT shenanigans.  Yet, when asked why on earth Thunder Ridge Racing & Entertainment Center would accept $250,000 worth of checks from anyone, Carroll explained that it was an exception to normal policy made only because: “The customer’s [LeMaster] credibility was such that the employee didn’t question them.”

(“Ex-senator’s checks to cover $250,000 worth of bets bounce,” Kentucky New Era, February 7, 1996.)

“Birthday Party” Payoff of Floyd County Judge-Executive’s Debt:

PRESTONSBURG—Floyd Judge-Executive Paul Hunt Thompson last week disposed of a $28,815 debt he had owed fiscal court since 1992, thanks in part to an unusual “birthday party” arranged for him earlier this month by House Floor Leader Greg Stumbo and others.

A group of influential or wealthy Kentuckians gathered at ThunderRidge harness track in Prestonsburg about three weeks ago to sing Happy Birthday to Thompson and give him some money.

It was not his birthday—Thompson was born on Sept. 26, 1946—and it was not a large amount of money, he said. “But I appreciate it.” … Guests said the crowd included both of Floyd County’s circuit judges; owners of First Guaranty Bank of Martin, which handles Floyd fiscal-court funds; Pikeville lawyer and coal operator Ross Harris; and Lexington bond agent Terrell Ross, the harness track’s primary owner who has employed Stumbo as his bond counsel.

          RSA had major influence on writing the provisions of House Bill 566 in the 1998 Regular Session of the General Assembly.

The law expanded the radius for Tracks to setup betting parlors to 60 miles:

[Mark Simendinger, Turfway’s president] said Terrell Ross, one of the owners of Thunder Ridge, sought to have the 25-mile radius increased to 50 miles.

Ross did not return a phone call seeking comment.

Rep. Bob Damron, D-Nicholasville, offered an amendment in a House committee to adopt the 50-mile radius.

Damron works for Ross at the Lexington investment-banking firm that Ross chairs, Ross Sinclaire & Associates.

But Damron said he had no conflict of interest in offering the amendment because Ross did not ask him to do so. … When the measure came to the House floor, Callahan offered an amendment to push the boundary of a track out to 60 miles.

[Rep. Jim Callahan, D-Wilder] recalled that Ross asked him to extend the radius of a track to include any facility in a 60-mile radius because Ross wanted to open a betting parlor in Hazard. He didn’t remember Ashland being mentioned. … Legislators said this week that they had no idea they’d approved a bill allowing tracks to open betting parlors without warning.  (Bill Estep and Lee Mueller, “Foes See Betting Bill As End Run Around Communities,” Lexington Herald-Leader, August 27, 1998.)

The law removed local input on the issuance of gambling licenses:

At issue: a new law that allows race tracks to create satellite betting parlors within 60 miles of their main arena. The owners of Thunder Ridge, a harness track in Prestonsburg, decided that Ashland was a good spot to extend their reach. Last week the Racing Commission approved the proposed simulcast parlor in a former glass shop on Greenup Street near City Hall without informing the city.

“The city was notified of it by Terrell Ross, one of the investors in Thunder Ridge, last Friday,” Ashland City Attorney Richard Compton said yesterday. Compton scrambled to find out how the Racing Commission could license a betting parlor—technically considered an extension of the race track itself under the law—without getting any OK from the city. When he unraveled the legislation and approval process, Compton came to the conclusion that it was a “back-door, thief-in-the-night approach to issuance” of gambling licenses.

In Hopkinsville, a similar brouhaha is under way over a betting parlor, and yesterday Ashland joined that city in a Franklin Circuit Court lawsuit that challenges the constitutionality of the law and asks that the betting parlors be stopped. Mayor Rudy Dunnigan said he was shocked when Ross, of Ross Sinclaire and Associates, a Lexington investors’ group that owns Thunder Ridge, appeared in his office with the deal already done a week ago yesterday.

RSA Employee Chosen to Sponsor Beshear’s Gambling Bill

Much of the responsibility for passing Gov. Steve Beshear’s casino gambling bill will fall on Senate Democratic Floor Leader R.J. Palmer, who is co-sponsoring the proposal and hopes to deliver all 15 votes from his Democratic caucus.

The bill is a proposed constitutional amendment that—if voters approve in November—would allow casinos at five Kentucky horse racetracks, plus two freestanding locations.

It also could make Palmer’s employer even wealthier.

Palmer, of Winchester, is a banker at Ross, Sinclaire & Associates, which sells bonds for government projects. Murray Sinclaire, the firm’s chief executive officer and president, co-owns Thunder Ridge Raceway, a harness track near Prestonsburg that could be eligible to apply for a casino license if expanded gambling is approved.

Kentucky Legislative Ethics Commission:

2005: Link

2006: Link

2009: Link

2010: Link

2012: Link

2013: Link