American Idol 2012 finale
Rollover crash injures 2
News hounds (5/24/12)
Home > Blogs > Butler County News and Issues > Archives > 2009 > August > 05
Wednesday, August 5, 2009
Bank exec: Money from Dynus deal ‘appears to have evaporated’
Federal court testimony Wednesday, Aug. 4, described how a couple of people were able to borrow millions of dollars from one of the country’s largest banks based on false promises and phony deals.
Prosecutors in the trial of former Dynus Corp. owner Orlando Carter asked National City Bank executive Ralph Martinez what happened to the $6.5 million the bank loaned Dynus in 2004 and 2005 for a deal with Butler County that didn’t exist.
“We don’t know,” Martinez said. “It appears to have evaporated.”
Martinez works for the business financing arm of National City Bank — which he described as the fifth largest financing company in America with deals totaling $9 billion.
Late last year, National City was purchased by PNC with help from the federal government’s bank bailout
Bank officials testified that they were threatened by Dynus president Jim Smith and then-Butler County auditor Kay Rogers in 2004 that they had far-reaching political connections and would jeopardize the bank’s business with other governments if they didn’t give a $5.2 million loan.
Smith told the bank he was an agent of the county and needed to borrow the money on the county’s behalf. This was the second loan he took out in the county’s name, the first was for $2.5 million.
The bank was retiscent, but Smith turned up the pressure, working late into the afternoon New Years eve to pressure the bank to unhand the money. He had Rogers — who Smith testified he had given a bribe — assure the bank the deal was sound, Smith and bank officials said.
“We really didn’t want a reputational risk,” said Vincent Rinaldi, CEO of the bank’s financing arm.
So the bank agreed to loan the company $4 million on the condition that it either provide a letter from the county prosecutor affirming the deal, or give back the money.
Carter’s defense team stressed that it was Smith, not Carter, who made the deal with the bank and that the bank did not try to contact Carter before the deal was struck.
Carter is fighting an 11-count indictment, including charges of bank fraud. Carter is alleged to have misrepresented his income to secure a $1.2 million home and misled banks about business deals with Butler County. He’s also accused of lying on a bankruptcy petition.
Permalink | Comments (3) | Post your comment | Categories: Dynus
County commission race could broaden
Following the announcement last week by county Treasurer Nancy Nix that she intended to make a run to unseat Commissioner Gregory Jolivette next year, we’ve been watching the Board of Elections closely.
On Tuesday, Aug. 4, a woman named Stacy Carpenter pulled a petition for “anonymous” for the 2010 Republican primary for Jolivette’s seat, according to BOE records.
When asked about the petition, Clerk of Courts Cindy Carpenter said Stacy Carpenter (no relation to the local office holder, Cindy said) was an employee in her office. I’ve since learned Stacy Carpenter is Cindy Carpenter’s executive assistant.
When asked about the purpose of the petition, Cindy Carpenter responded this way: “At this point, I am not making any announcements. I am talking with people within the (Republican) party.”
Cindy Carpenter said recent news regarding Commissioner Gregory Jolivette (read that here and here) and swirling allegations emanating from the federal trial of former Dynus Corp. owner Orlando Carter have ruffled some local feathers.
“Some of the office holders and department heads are dissatisfied with the current operation of county government,” Cindy Carpenter said. “Some of these people are not happy with the scandals that have occurred. It is very disheartening.
“There are many of us that believe that some things need to be done differently.”
We’re continuing to hear about folks who may run for the seat. It seems the list is growing with each passing day.
The question also remains about how the Republican Party would treat the screening process and endorsement meetings (in mid- to late-September and mid- to late-October, respectively) should Nix, Carpenter and the incumbent Jolivette decide to run.
Thoughts?
Permalink | Comments (9) | Post your comment |
JFS mum on hiring of commissioner’s daughter
After learning that Commissioner Gregory Jolivette had voted in 2004, 2005 and 2006 on motions involving his daughter’s hiring and pay with the county’s Department of Job and Family Services , I made a call to JFS Director Bruce Jewett.
Jolivette said last week that no conversations between he and Jewett regarding Elizabeth’s job ever took place, and that he had no influence over her hiring.
Jewett, however, declined to comment about the hiring Tuesday, Aug. 4, saying he did not want to impact an ongoing investigation into Jolivette’s voting record by Butler County Prosecutor Robin Piper.
Jewett said it was a decision he made by himself, and that Piper’s office did not advise him to remain quiet about the hiring.
The findings regarding Jolivette’s daughter came on the heels of the longtime politician admitting Thursday, July 30, he moved and voted in 2005 on the hiring of his son for the county’s summer work program.
Piper said Friday, July 31, he had finished his own investigation into both cases, and that he would be forwarding all information onto the Ohio Ethics Commission.
