Monday, August 20, 2012
August 20, 2012 John Ford, Infamous Tennessee Waltzer, Comes Home To Memphis
Like many federal inmates, he was released to a halfway house about six months before the end of his sentence.
The Commercial Appeal has the story here with background on the Tennessee Waltz scandal that brought down many of the high and mighty in the Tennessee legislature.
For blog posts, click here, here, here, here, here, here, and here.
Sunday, June 29, 2008
June 29, 2008 That Was the Month That Was
County Commissioner Frank Parker, under indictment for two Class E felonies (theft over $500 and official misconduct), filed for pre-trial diversion (June 18) and then resigned his commission seat on June 19. In his letter of resignation, Parker made no mention of the indictments, instead saying that he was resigning because he was "uncomfortable" having to abstain from votes involving Cherokee Park where he continues to serve as Park Director.
Morristown City Administrator Jim Crumley was honored as City Manager of the Year. The Tribune links usually don't stay up very long so catch it while you can. This type of award--with an "administrator" telling elected officials and the public (2006) that city finances are great followed by the revelation of the true financial disaster the next year (2007) and then getting a wonderful award for his superior "management" from his peers (2008)--is so commonplace as to be laughable.
The U.S. Supreme Court, in a 5-4 vote, upheld the Second Amendment and the individual's right to bear arms. In a lengthy opinion with a vigorous dissent, the Supreme Court issued an historic ruling that overturned Washington, D.C.'s ban on handguns and on self-defense in the home. Here's a shortened version of the holding in District of Columbia v. Heller. I was pleased with the ruling and the analysis of the majority but find it distressing that the vote was so close (5-4).
The Hamblen County School Board tossed out figures of $68-$81 million to address building costs for local high schools--depending on whether a new East High is built or whether the old East High is renovated. Commissioner Stancil Ford wants to meet with Director Dale Lynch, Mayor David Purkey, and Trustee Bill Brittain to see how much more debt the county can service. The School Board then added Board member Roger Greene to the group.
How much more debt can the county service? Well, right now we have close to $70 million of debt and for years we've been making interest-only payments on a large part of that debt. Maybe the first thing Stancil and other members of the group should address is "truth-in-debt."
The figures tossed out by the School Board--$68-$81 Million--do NOT reflect the true and complete cost to the taxpayers of these projects. Interest will also have to be paid on that "debt." Conservatively, the county will likely obligate itself to pay the principal back over 20 years + or -(based on past bond issues). This means that the "true" cost to the taxpayers of borrowing $68-$81 Million could be as much as a $110-$125 Million payback or more depending on the interest rate!
And even that staggering payback could be higher if the county (like the 1998 commission on which Stancil Ford served) again sets up the school bonds with interest-only payments for the first 8-9 years, thus passing the entire principal debt and still accruing interest onto our children. Again, it's a Tribune link so it may not be active very long.
Stancil and other members of the group, you can tax, license, and "fee" the poor and middle-class residents of Hamblen County into oblivion if you want---and you, with help from the City, the state, and the national government, are doing a great job of that.
People are already taxed when they earn, taxed when they spend what's left of what they've earned, taxed for stormwater, taxed when they operate a business, taxed when they own property, taxed when they sell property, taxed for licensing a car (wheel tax and state license), and taxed when they buy $4/gallon gas for their car (if they can afford the gas at all). Taxed, taxed, taxed! "Tax, fee, license, permit"--it's pretty much the same.
Speaking of county debt, the county's financial advisor Cumberland Securities told the county this month that most of the county's bonds are with companies whose financial ratings are being downgraded---meaning the county's interest rates will likely go up. Joe Ayres of Cumberland Securities recommended that the county refinance $59 Million of its $69 Million of bond issues.
County Mayor David Purkey is quoted as saying, "We are in a good position to deal with our debt." Oh, yeah, sure we are. And Mayor Purkey probably thinks that if the lenders would just let the county make interest-only payments forever, we'd be in an absolutely great position with our debt! [The Mayor's quote is in a Tribune link, so catch it while you can. Updated information on continuing interest-only payments by the county as found in the 2007 audit can be found in a previous noe4accountability blog post.]
Statewide, the federal corruption trial of former State Sen. John Ford is finally set to get underway in Nashville on June 30. Ford, a Memphis Democrat, is accused of taking $800,000 in consultant payments from TennCare contractors to promote those private companies' interests while he held elected office. [Last year Ford was convicted of bribery for taking $55,000 in the 2005 Tennessee Waltz scandal to promote legislation for a fictitious FBI company.]
After a major change in pro-tax campaign tactics, the sales tax increase referendum passed in the City of Morristown. Morristown businesses will now charge customers 9.75% sales tax on top of the product purchase price. The City has now maxed out the local sales tax rate---at least until the state legislature raises the limit in the future.
Already, individuals only get to keep a portion of what they earn after payment of social security, medicare, and income taxes. Now when they go to spend what they were allowed to keep, they have to pay an additional 9.75% sales tax. Pretty soon the government will tax you when you breathe in and again when you breathe out! Already on the horizon: a "county only" referendum in November to max out the county's sales tax rate as well. If at first you don't succeed, do an end-run and force it down their throats.
The Tennessee Open Records Act was updated to provide that records custodians have seven days to provide records or explain why there is a delay. It also provides that the Office of Open Records Ombudsman will be funded and will operate within the State Comptroller's Office.
An editorial appeared in the local paper supporting the addition of a paper trail to voting machines to preserve the integrity of the ballot. Well, it wasn't really a local editorial. Like most editorials in the Tribune, it had been copied from some other newspaper, in this case the (Sevierville) Mountain Press. Technology and touch screen voting have their benefits, but having a verifiable paper trail is vital. Hamblen County faced problems with new voting machines and discrepancies in reporting vote tallies in 2006. [Tribune links are usually deactivated quickly. Catch it while you can.]
June---quite a busy month.
Monday, April 30, 2007
April 30, 2007 "Make Room for the Senator" (John Ford)
As he left the courtroom Friday, his daughter Kemba told everyone to "Make room for the Senator!"
Ford, the self-proclaimed "man who makes the deals," now travels to Nashville later this week to face charges of wire fraud in connection with his TennCare "consulting" contracts with Doral Dental and OmniCare.
Ford is looking at six felony counts accusing him of taking $800,000 in kickbacks from state TennCare contractors.
It has been mentioned in several news outlets that Ford could try to work out a deal at this point with prosecutors. He may offer not to appeal the recent Tennessee Waltz bribery conviction in return for the state agreeing to drop the wire fraud and TennCare charges.
Ford is a fighter, and Ford is cocky. So another very real possibility is that he may decide to go ahead and appeal the Memphis conviction and go ahead and fight the Nashville TennCare charges as well.
Only John Ford, the "man who makes the deals," knows whether he will attempt to make a deal on the next round of charges.
Friday, March 02, 2007
March 2, 2007 That Was The Week That Was
Joseph Lee, head of Memphis Light, Gas & Water, admits to a grand jury that MLG&W kept a "privileged customer" list (privileged customer=politician).
City Councilman Edmund Ford, who has already been indicted for bribery, was one of many on that list. Ford was protected from utility cut-off even when his delinquent bills totalled $16,000.
Joseph Lee recently offered to resign, but Memphis Mayor Willie Herenton, who appointed Lee, wouldn't hear of it. Herenton says it's a "witch hunt." Herenton blames everyone, except Lee, for the favored treatment of high and mighty Memphis politicians.
GOOD NEWS IN MEMPHIS. John Ford and Edmund Ford have just come into a sizable inheritance. Edmund Ford will probably rush down to MLG&W to pay his utility bill and then on over to the Cadillac dealership to pay his Escalade lease. Maybe his brother (former State Sen. John Ford) will take his share and pay for his own defense attorney.
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Jerry Cooper. Due to a wreck in February that was accompanied by DUI and speeding charges, Sen. Jerry Cooper got a delay in his wire and bank fraud trial. Previously, the judge had denied Cooper's efforts to delay the trial.
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Newly-appointed Knox Register of Deeds (ROD) Sherry Witt can't handle her job without the help of her former boss Steve Hall. Hall was term-limited as ROD, and Witt was appointed to replace him on Jan. 31. Now Witt has turned around and hired her ex-boss as an administrative assistant earning $69,000.
Term-limits or no term-limits, one way or another politicians are going to keep their government jobs! The Jan. 31 appointments were a farce--just musical chairs to shift the term-limited officials and their families to new and different positions.
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Speaking of the musical chairs appointments, the N-S filed suit against the Knox Commission alleging violations of the Sunshine Law when commissioners "recessed" the Jan. 31 meeting several times, During the recesses, commissioners met outside the public view to discuss and deliberate toward the 12 appointments for the term-limited Knox County officials.
Knox Commissioners recently rejected the News-Sentinel's offer to drop the lawsuit if commissioners would admit to violations of the Sunshine Law and then re-do the appointments with public deliberation in a public meeting.
Now, the Commissioners have asked the News-Sentinel to hold off on the suit until the legislature considers changes to the Sunshine Law! Since it took the legislature months to even appoint a Sunshine-in-Government committee, the Knox Commissioners know that there won't be action any time soon from Nashville.
Just a cheap delaying tactic by another set of ethically-challenged officials.
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Phil Williams is a great investigative reporter. He has an interesting report on who gets TDOT (Tennessee Dept. of Transportation) consulting jobs and how they get these jobs.
Gerald Nicely is head of TDOT and he alone gets to pick who gets TDOT consulting contracts. His former chief of staff resigned and went to work for CTE, a consulting firm doing business with the TDOT.
Nicely gave $2.7 million in state contracts to CTE in the first three years of the Bredesen administration. Then after CTE hired Nicely's chief of staff, the commissioner gave CTE more than $4.1 million in contracts in 9-months.
Nicely admits that there is the "potential" for abuse, but denies [of course] that there has been any abuse or favoritism.
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Speaking of no-bid deals, a former Sumner County Sheriff was convicted of wire fraud in a scheme to give his brother a no-bid contract to build a maintenance garage. Just like in Knox, nobody can resist helping themselves---and their family and close friends---to tax dollars.
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Thursday, February 22, 2007
February 21, 2007 Fords in Trouble in Memphis
Former State Sen. John Ford's Rolex watch was the topic at a hearing Tuesday in Memphis. Federal prosecutors want to use the $40,000 watch to show that John is prone to taking gifts/bribes in return for political favors.
John Ford once claimed it was a "gift" from wealthy developer Rusty Hyneman. Later, his attorney said John had been bragging excessively and that Ford actually got the watch through a not-so-even-steven trade with Hyneman.
Whatever happened with the Rolex, Hyneman doesn't want to discuss it. At Tuesday's hearing, Hyneman repeatedly "took the Fifth" and refused to discuss the watch.
While John was at his hearing, his brother Edmund Ford, Memphis City Councilman, was also facing additional problems related to his conduct in office. In December 2006, Edmund Ford was indicted on federal bribery charges. Rusty Hyneman, the very same individual who gave, traded, or bribed brother John Ford with a Rolex watch, is also involved in some of the charges against Edmund Ford.
Now, federal prosecutors are looking into Edmund Ford's utility bills. It seems that Edmund doesn't pay his utility bills, but Memphis Light Gas and Water lets it slide. Edmund was chairman last year of the council committee that oversees the MLG&W budget and spending.
Carol Chumney, a member of the Memphis City Council, asked: "As the regulatory authority, we do have some responsibility....Are different people being treated differently at MLGW? That's something we need to know."
In other words, if everyone's bills (including Edmund Ford's) slide by, that's one thing. But if City Councilman Edmund Ford is getting special treatment, that's another.
There appears to be a lot going on that the Memphis City Council and the public need to know.
Same thing in Morristown and Hamblen County. The comparisons are coming. Clean-ups only begin when the cover-ups end.
Friday, January 26, 2007
January 26, 2007 John Ford Gets a Public Defender
A publicly funded attorney will defend Ford on charges of taking over $800,000 in consultant payments from TennCare contractors during the time he was in the State Senate.
He has pleaded not guilty to those charges.
The former senator from Memphis once made hundreds of thousands of dollars per year as a consultant and was known at the state capital for designer clothing and expensive Rolex watches.
Ford faces other charges as well---including bribery charges in the FBI's Tennessee Waltz sting operation that rocked the state capital in 2005 and led to the arrests of several sitting legislators.
Exposure of at least some of the sources of Ford's consulting income began years ago when Ford attempted to avoid paying child support to one of the women with whom he has a child.
At the child support hearing, Ford resisted providing income information. When he finally did, the press and others started to put two-and-two together about Ford's sources of consulting money from TennCare providers while he was serving on TennCare oversight committees in the State Senate.
Gradually things began to unravel. From child support to taking TennCare consultant payments while serving in the State Senate to the Tennessee Waltz, Ford has legal troubles everywhere he looks.
Thursday, January 11, 2007
January 11, 2007 Waltz Trials Are Postponed
Other Waltzers have recently gotten their trials postponed as well: former State Senator Kathryn Bowers and current State Senator Ward Crutchfield.
Current State Senator Jerry Cooper's lawyer has also asked for a delay in Cooper's trial until after the current legislative session ends in April or May.
Cooper (D-Morrison) is charged with bank fraud, mail fraud, and conspiracy in a borrowing scheme involving the 1999 sale of a lumber mill in Warren County, Tenn.
Cooper's problems also allegedly involve a loan from a bank where former Speaker of the Senate John Wilder serves as a director.
According to a motion filed by Cooper's attorney, state law, which is not binding in federal court, states that a defendant who is a member of the General Assembly is entitled to a continuance if the General Assembly is in session.
Friday, January 05, 2007
January 5, 2007 A Tale of Two Watches: John Ford & the $40,000 Rolex
Remember Ford's $40,000 Rolex watch?
At one point, Ford said he got it free of charge from wealthy Memphis developer Rusty Hyneman after he helped Hyneman avoid hefty fines in environmental battles with the state.
Ford's attorney, in court filings, is stating that Ford was just engaging in excessive bragging when Ford said he got the watch after saving Hyneman over $1 million dollars in fines.
Ford's lawyer states that Ford actually got the $40-$50,000 Rolex through a good old-fashioned watch swap.
Ford apparently swapped his $17,000 watch for Hyneman's $40,000 Rolex. Hint: Do not engage in watch swapping activities with former Sen. Ford!
And now there's a tape.
Federal authorities say they have a tape ---a tape where Ford says that the $40,000 Hyneman-to-Ford Rolex was a gift, the special kind of gift that a public official gets in return for doing a favor for someone.
Wednesday, December 20, 2006
December 20, 2006 The Tennessee Waltz continues....
Ford, arrested in May 2005 during the FBI's Tennessee Waltz sting operation, already has a February 2007 trial date for those charges.
Now Ford faces additional charges in connection with consulting contracts with TennCare contractors.
Ford admits that he did "consulting" work for Doral Dental and Omnicare (now United American Health Care) at the same time he served as chairman of a legislative committee with oversight over the TennCare program.
Of the new charges, Ford says: "I categorically deny every allegation and charge they made. It's absolutely ridiculous. This is a rehashment of the (state legislature's) ethics investigation; they found nothing."
The indictment outlines work Ford did to help Doral win TennCare's sole contract to provide dental services to TennCare enrollees and contacts that Ford made with state officials for Omnicare to increase its revenue.
Ford told reporters. "I have done nothing wrong. As a citizen-legislator, you have a right to work, to earn a living. Every allegation they have made, I had a legitimate contract to work on."
An old political saying comes to mind: Follow the money trail. The money trail often leads to a personal (or family) financial conflict of interest.
There is no doubt that Ford has a right to work.
He apparently believes that with the "right" to work, there is also a right to use his elected office and insider connections in order to enrich himself while he "works" to help companies get no-bid contracts with the state.
After a period of time in office, too many elected officials "cross over" from providing honest public service to providing service for their or their family's personal financial gain.
That's why I think term limits are important.
Wednesday, December 06, 2006
December 6, 2006 Another Tennessee Waltz Conviction in Memphis
Hooks' arrest was part of the FBI's Tennessee Waltz sting that resulted in numerous statewide arrests and convictions of elected officials, including several Tennessee legislators, a school board member, a county commissioner, and others.
Several of those who were arrested in the Waltz have already been tried and convicted. However, a few, the most prominent of whom is former Sen. John Ford of Memphis, have not had their day in court yet.
Hooks was filmed taking money in return for helping a fictitious company, "E-cycle," get government contracts and business in Shelby County.
Read the story here.