Summary of What Was Already Reported on the Edelen Ethics Scandal
         Here is a summary of what was already exposed by the Lexington Herald-Leaderâs series on the Edelen ethics scandal:
Adam Edelen, Bob Babbage, and Ralph Coldiron were business partners in Chartwell Land Company, LLC (Chartwell).
Bob Babbage is a lobbyist who lobbies the Kentuckyâs executive branch. Â (Babbage CoFounder: Link)
When the housing market tanked in 2008, Chartwell had trouble selling a house it had built, causing cash-flow problems for Coldiron.
Coldiron resigned from his job at Thomas & King in October, ahead of layoffs that were announced shortly after he resigned. Â Edelen had previously worked with Coldiron at Thomas & King. Â (âBeshear orders pay raise for friend and donor,â Herald-Leader, November 20, 2008.)
Coldiron, Edelen, and Babbage exchanged several emails about Chartwell. Â Coldiron complained about the lack of cash flow from their investment and said that he needed income. Â ââI need to keep cash coming in the door,â Coldiron wrote to Edelen on Oct. 6.â Â (John Cheves, âLobbyist had easy Capitol access - e-mails mention visits Brought clients to meet chief of staff,â Herald-Leader, January 13, 2009.)
Edelen is the person who made the hiring decisions at Homeland Security that Governor Beshear signed off on, including the decision to hire his own business partner, Ralph Coldiron. Â Coldiron had previously made campaign contributions to Beshear and to Edelen. Â (John Cheves, âBeshear loyalists find a haven - Some question qualifications of Democratic governor's homeland security hires,â Herald-Leader, November 19, 2008.)
Coldiron was aware that the executive director of emergency telecommunications services position had a salary cap of $80,000 when he applied for the position. Â Coldiron said that he indicated on his application that he wanted $100,000. Â CMRS Board Chairman David Lucas said that none of the applicants complained to the CMRS Board about the $80,000 salary cap. Â (âBeshear orders pay raise for friend and donor,â Herald-Leader, November 20, 2008.)
Coldiron kept sending emails to Edelen asking about the job and the $20,000 instant raise he was requesting, emphasizing that he needed a source of income. Â When Edelen confirmed that he had signed the paperwork for hiring Coldiron at $100,000 a year, Coldiron thanked him. Â (John Cheves, âLobbyist had easy Capitol access - e-mails mention visits Brought clients to meet chief of staff,â Herald-Leader, January 13, 2009.)
The CMRS Board was unaware of Coldironâs $20,000 instant raise and had to alter their budget to accommodate it. Â Edelen had Beshear approve the raise, but state law only authorizes the CMRS Board to approve the raise. Â Coldiron submitted his resignation, effective at the end of January 2009, shortly after the Herald-Leader asked about the legality of the raise. Â (John Cheves, âFriend of Beshear resigns state post - Coldiron quits after query about legality of salary,â Herald-Leader, January 14, 2009.)
Due to unqualified political appointees lacking ability to do the needed work, the CMRS Board had to create a staff assistant position and fill it with a person who really was qualified to do the jobâbut at the lower pay of $63,756 a year. Â (John Cheves, âFriend of Beshear resigns state post - Coldiron quits after query about legality of salary,â Herald-Leader, January 14, 2009.)
Chartwell sold the home on December 12, 2008. Â (Bourbon County PVA Search: Link. Â The address is: 533 Houston Oaks Drive.)
Bob Babbage submitted the Articles of Dissolution for Chartwell on January 5, 2009, with a retroactive effective date of dissolution listed as December 31, 2008:
Edelen also owned a second lot next to the one Chartwell developed, that he purchased for $65,000. Â He still owns that lot:
(Edelenâs 2014 Financial Disclosure: Link)
Edelen claimed that his business ties to Babbage did not create a conflict of interest and that Babbage received no special treatment as a lobbyist. Â Edelen said that he simply directed Babbage to the heads of relevant agencies the same as he would for any other lobbyist. Â However, the Herald-Leader says emails show that Babbage dropped by for informal meetings with clients on short notice and that Edelen met with Babbage and the clients. Â (John Cheves, âLobbyist had easy Capitol access - e-mails mention visits Brought clients to meet chief of staff,â Herald-Leader, January 13, 2009.)
Babbage failed to disclose his business ties to Edelen on his financial disclosure report. Â Babbage claimed it was an accidental omission and the Kentucky Executive Branch Ethics Commission (KEBEC) allowed him to amend his disclosure. Â Further action on the matter could not be taken unless someone filed a formal complaint. Â (John Cheves, âLobbyist ends partnership with official - failure to disclose ties with beshear chief of staff was âjust a mistakeâ,â Herald-Leader, January 6, 2009.)
Edelen was still married to his first wife, Catherine Nunn-Edelen (Catherine). Â Catherine worked for Apple, Inc., selling computer equipment to the Kentucky Department of Education.
Adam Edelen, Catherine Nunn-Edelen, Bob Babbage, and Laura Babbage co-owned a newly built condo. Â Catherine and Bob both used the condo as an office to conduct business.
Edelen ended up submitting a request for an advisory opinion to the KEBEC asking for advice on whether he should sell his ownership interest in the condo. Â KEBEC allowed him to sell it, provided it was an arms-length transaction. Â (Advisory Opinion 09-07; John Cheves, âPanel: Edelen can sell share of condo to Babbage,â Herald-Leader, January 24, 2009.)
Beshear waited until July before appointing Joe Barrows to replace Coldiron. Â Beshearâs spokesman said that he personally made the decision to hire Barrows. Â Barrows had sponsored the legislation to create the CMRS Board in 1998 when he was a legislator. Â Barrows had held a fundraiser for Beshear in 2007. Â Barrows was good friends with Kent Downey and has his own history of ethics problems:
(John Cheves, âFormer Democratic whip at Homeland Security,â Herald-Leader, July 24, 2009.)