#bob babbage

Summary of What Was Already Reported on the Edelen Ethics Scandal Link

Important Things The HL Missed in their Coverage of the Edelen Ethics Scandal:

Bob Babbage was lobbying for Thomas & King when Edelen hired Ralph Coldiron: Link

Possible evidence that Bob Babbage tried to conceal his business ties to Edelen (multiple annual reports filed by Bob Babbage in September 2008 show he was going to change the address to the condo he shared with Edelen's wife, but changed his mind): Link

All of Coldiron’s business assets Were at risk if he defaulted on a loan that gave a security interest in his business assets to the lender: Link

Ralph Coldiron asked for and received an exemption all Purchase Orders (Master Agreements) issued as instruments of obligation for grant funds awarded by the CMRS Board: Link

Federal flow-down requirements regarding CMRS grants create additional conflict of interest restrictions and require grant recipients to grant access to records to the Kentucky Auditor of Public Accounts: Link

Edelen and Coldiron also had another business at the time, Bluesand Investments, LLC (Kim Geveden & Jesse McKnight were also members): Link

The Herald-Leader noted that Edelen made the hiring decisions (Link), which included Chuck Geveden, but they did not mention that Chuck was the brother of Edelen’s business partner in Bluesand Investments, LLC. Link

The Herald-Leader noted that Joe Barrows was hired to replace Coldiron and some of Barrows own problem with ethics, but they didn't mention that Barrows thinks the investigators were the real bad guys in BOPTROT: Link

Edelen Should Release His Tax Returns: Link

          Bob Babbage was lobbying for several companies at the time, in both the executive and legislative branches.  This included Motorola, Inc.  Also, Babbage lobbied on behalf of Thomas & King in the legislative branch.

Kentucky Executive Branch Ethics Commission (April 9, 2009):

KEBEC April 9, 2009 (See pp. 1-2): Link

Kentucky Legislative Ethics Commission (January 23, 2009):

KLEC January 23, 2009 (See pp. 2-3): Link

Motorola:

        Motorola, Inc. was especially noteworthy because, as executive director of emergency telecommunications services, Coldiron was put in a position with a lot of influence on contracts worth millions of dollars that Motorola was interested in. 

Kentucky State Government Spending on Motorola:

(OpenDoor Spending Search: Link)

       During his brief tenure on the CMRS Board, 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.

Thomas & King:

      Thomas & King is noteworthy because Edelen worked there until he resigned to join the Beshear administration.  Ralph Coldiron worked there until October 2008, when he resigned because layoffs were imminent.  Getting a job for Coldiron with the Beshear administration helped his business partners, Edelen and Babbage, but it also helped one of Babbage’s clients. 

           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:

          Will Carle was one of Edelen’s political hires at the KOHS:

(John Cheves, “Beshear loyalists find a haven - Some question qualifications of Democratic governor’s homeland security hires,” Herald-Leader, November 19, 2008.)

          Will Carle followed Edelen to Beshear’s office when he became chief of staff to Beshear.  Will helped set up meetings when Bob Babbage felt like bringing his clients by for informal visits:

(John Cheves, “Lobbyist had easy Capitol access - e-mails mention visits Brought clients to meet chief of staff,” Herald-Leader, Tuesday, January 13, 2009.)

          Here is a summary of what was already exposed by the Lexington Herald-Leader’s 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 Kentucky’s executive branch.  (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.  Edelen had previously worked with Coldiron at Thomas & King.  (“Beshear orders pay raise for friend and donor,” Herald-Leader, November 20, 2008.)

Coldiron, Edelen, and Babbage exchanged several emails about Chartwell.  Coldiron complained about the lack of cash flow from their investment and said that he needed income.  “‘I need to keep cash coming in the door,’ Coldiron wrote to Edelen on Oct. 6.”  (John Cheves, “Lobbyist had easy Capitol access - e-mails mention visits Brought clients to meet chief of staff,” 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.  Coldiron had previously made campaign contributions to Beshear and to Edelen.  (John Cheves, “Beshear loyalists find a haven - Some question qualifications of Democratic governor's homeland security hires,” 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.  Coldiron said that he indicated on his application that he wanted $100,000.  CMRS Board Chairman David Lucas said that none of the applicants complained to the CMRS Board about the $80,000 salary cap.  (“Beshear orders pay raise for friend and donor,” 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.  When Edelen confirmed that he had signed the paperwork for hiring Coldiron at $100,000 a year, Coldiron thanked him.  (John Cheves, “Lobbyist had easy Capitol access - e-mails mention visits Brought clients to meet chief of staff,” Herald-Leader, January 13, 2009.)

The CMRS Board was unaware of Coldiron’s $20,000 instant raise and had to alter their budget to accommodate it.  Edelen had Beshear approve the raise, but state law only authorizes the CMRS Board to approve the raise.  Coldiron submitted his resignation, effective at the end of January 2009, shortly after the Herald-Leader asked about the legality of the raise.  (John Cheves, “Friend of Beshear resigns state post - Coldiron quits after query about legality of salary,” 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 job—but at the lower pay of $63,756 a year.  (John Cheves, “Friend of Beshear resigns state post - Coldiron quits after query about legality of salary,” Herald-Leader, January 14, 2009.)

Chartwell sold the home on December 12, 2008.  (Bourbon County PVA Search: Link.  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.  He still owns that lot:

(Edelen’s 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.  Edelen said that he simply directed Babbage to the heads of relevant agencies the same as he would for any other lobbyist.  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.  (John Cheves, “Lobbyist had easy Capitol access - e-mails mention visits Brought clients to meet chief of staff,” Herald-Leader, January 13, 2009.)

Babbage failed to disclose his business ties to Edelen on his financial disclosure report.  Babbage claimed it was an accidental omission and the Kentucky Executive Branch Ethics Commission (KEBEC) allowed him to amend his disclosure.  Further action on the matter could not be taken unless someone filed a formal complaint.  (John Cheves, “Lobbyist ends partnership with official - failure to disclose ties with beshear chief of staff was ‘just a mistake’,” Herald-Leader, January 6, 2009.)

Edelen was still married to his first wife, Catherine Nunn-Edelen (Catherine).  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.  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.  KEBEC allowed him to sell it, provided it was an arms-length transaction.  (Advisory Opinion 09-07; John Cheves, “Panel: Edelen can sell share of condo to Babbage,” Herald-Leader, January 24, 2009.)

Beshear waited until July before appointing Joe Barrows to replace Coldiron.  Beshear’s spokesman said that he personally made the decision to hire Barrows.  Barrows had sponsored the legislation to create the CMRS Board in 1998 when he was a legislator.  Barrows had held a fundraiser for Beshear in 2007.  Barrows was good friends with Kent Downey and has his own history of ethics problems:

          From his 2006 interview with the Nunn Center, we know that Barrows allowed his meals at Flynn’s to be billed to the tab a lobbyist made available for legislators.  In the interview, Barrows feigns ignorance at knowing who maintained the account to pay for meals at Flynn’s.

         However, Barrows knew who ran that tab because Barrows served on the Program Review and Investigations Committee when it looked into KACo.  [Note: Bob Babbage was also a recipient of KACo’s “generosity.”]

(Bill Straub, “Counties group under scrutiny,” The Kentucky Post, January 11, 1994.)

         Barrows and his fellow self-serving legislators did the Old Frankfort Shuffle, scolding KACo for their unethical behavior—ignoring the fact that it was just as unethical for legislators to accept KACo’s gifts—and lamenting the absence of laws that would allow them to punish KACo—laws they as legislators should have passed years earlier:

          The Herald-Leader was already convinced that Bob Babbage’s omission on his financial disclosure form of his business ties to Edelen was deliberate:

(“Ethics omission hard to excuse - Disclosure rules should be enforced,” Herald-Leader, January 7, 2009.)

Additional Evidence

Common Error on Multiple Annual Reports—Stopping the Change of Address to the Shared Condo-Office:

         A noteworthy error on some Babbage company annual reports—companies that filed in late September 2008—may be evidence of him deliberately concealing business ties to Edelen.

         Several of the companies Babbage is associated with had annual reports submitted for them in September 2008.  There is a common hand-written error that is repeated on each of those annual reports.  The Current Principal Office Address, listed as 209 E High St, has a line drawn through it to strike it out.  To the right, a new address has been added: 350 E. Short St., suite 212.  But the new address on each form has a line drawn through the new address.  The Statement of Change of Designated or Principal Address Form (Box 3 on the form) had originally been checked, but each annual report scratches out the checked box and has a hand-written ‘No’ next to the box.

Public Precedent, Inc:

Link

The Statehouse Caucus Group, Inc:

Link

Diabetes Statehouse Caucus, Inc:

Link

         It looks like Babbage planned to update his address but changed his mind.  But he did change his address with the federal government.  Bob Babbage changed the address to the condo when he filed his 3rd quarter federal Lobbying Disclosure Report on October 10, 2008:

Link

This strengthens the Herald-Leader’s assertion that Babbage deliberately concealed his business relationship with Edelen by omitting it from his financial disclosure.

Edelen Used a Variant of the Address for the Condo that Differs from the one used by Babbage:

         Babbage lists the address for the condo as “350 E. Short St., Suite 212.”  However, on his modified financial disclosure form for 2008, Edelen lists the address as “350 East Main, Unit 212”:

Link