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Unsettling revelations, when TxDOT ethics are part of the
problem.
Say
"hello"
to the Chair of the Sunset Advisory
Commission.
March 29, 2008
COMMENTARY
Home
cookin' for campaign expenditures
By RICK
CASEY
Copyright 2008 Houston Chronicle
http://www.chron.com/disp/story.mpl/metropolitan/casey/5659098.html
You'd think State Rep.
Carl Isett of Lubbock would know the state's ethics laws
when it comes to paying his wife out of his campaign contribution fund.
A "Campaign Finance Guide" handed out by the
Texas Ethics Commission states it simply:
"A candidate or officeholder
may not use political contributions to pay
for personal services rendered by the candidate or officeholder
or by the
spouse, or dependent children of the
candidate or officeholder."
It's a simple concept.
You can't hire yourself out of campaign funds, and you
can't hire your spouse. If you could, campaign funds could too easily
become money laundering devices for legal bribery.
'I'm not aware'
It became an issue with Isett a year
ago when a reporter for the local CBS station in Austin asked him about
more than $40,000 he had paid his wife, Cheri, out of his campaign
account for "bookkeeping services" during the previous three years or
so.
"She runs errands for the campaign, and again, keeps a
strict accounting of those times," Isett said.
When the reporter, Nanci Wilson, suggested such
payments were illegal, Isett said, "I'm not aware that that's the case
... as long as there are services performed for legitimate functions and
purposes for the campaign or officeholder."
It's not clear if Isett, who had
previously served on Speaker Tom Craddick's Select Committee on
Ethics, bothered to check with the Texas Ethics Commission.
If he did he would have been pointed both to the law
and to a few instances of officials being assessed (small) fines for
violating the provision.
Going with a 'new' company
But for whatever reason, the
two campaign reports he filed since that television interview
no longer list payments for bookkeeping services to
"Cheri Isett Bookkeeping & Tax
Services."
They show payments instead to "Lubbock Bookkeeping
Services" totaling $39,158.
The last report, covering the second half of last
year, includes a daunting $27,457 to Lubbock Bookkeeping – nearly half
the total expenses of $56,000.
In addition to bookkeeping, the firm is listed as
providing "contributor database management."
That sounds impressive, but it seems to me to be part
of the same job that Cheri Isett had presumably been doing for the
required reports.
Mystery firm unmasked
So who is Lubbock
Bookkeeping Services and why are they so much more expensive
than even Cheri Isett had been?
I called directory assistance in Lubbock, but they had
no listing for Lubbock Bookkeeping Services.
I Googled the firm, but again found no listing.
The campaign report lists a post office box in
Lubbock for Lubbock Bookkeeping.
But Houstonian John Cobarruvias, who loves to police
campaign reports and who brought Isett to my attention, found some not
unsubtle clues in an online record of the Texas Secretary of State.
It shows Lubbock Bookkeeping Services as a
limited liability company with an address in
Lubbock that just happens to be the same
address that earlier campaign finance reports showed for
(drumroll, please) Cheri Isett!
What's more, Cheri Isett
is the registered agent for the company.
A very civil penalty
Skeptical reporter that I am, it
occurred to me that the Isetts might be trying to pull one over on Texas
citizens and the vaunted Texas Ethics Commission.
But Isett may have a perfectly innocent
explanation.
Unfortunately he didn't return my calls
Friday morning to both his state and Lubbock offices. I told his aides
at both offices that I wanted to ask about his campaign finance reports.
According to the Texas
Election Code, hiring one's spouse with campaign funds is a Class
A misdemeanor, with a maximum penalty of a year in jail and a $4,000
fine.
I don't know if anyone has ever been prosecuted for
the crime.
I did find a case from last year in which Fort
Bend County Judge Bob Hebert was found to
have paid his wife two checks totalling $6,200 in 2006 for, of
all things, "bookkeeping services."
The Ethics Commission considered "the seriousness of
the violations" and "the sanction necessary to deter future violations,"
and imposed a "civil penalty" of $100.
The cost of doing business
That's about as civil as a
penalty can get. It means he gets to illegally pay his
wife $6,200 and pay the Ethics Commission a
hundred bucks as a cost of doing business.
That should deter future violations.
By that calculation, the commission
will fine Isett a full grand for paying his wife more than $70,000
in the past four years.
Net family income, before taxes:
$69,000.
But, as they say on late-night television,
there's more. The law allows these guys to pay their
"civil penalties" out of their campaign accounts.
Who says crime doesn't pay?
You can write to Rick Casey at P.O. Box 4260, Houston, TX 77210,
or e-mail him at
rick.casey@chron.com.
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