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Home > Blogs > Butler County News and Issues > Archives > 2009 > August > 10
Monday, August 10, 2009
Dynus, Jolivette and ‘Little Chicago’
In case you missed it, we had a wrap-up this weekend of two of the biggest talks of the town in Butler County this week: Accusations of nepotism against Commissioner Gregory Jolivette and the ongoing Dynus trial.
First, we had this intro:
Butler County is doing more than its share these days to keep the FBI and Ohio Ethics Commission busy.
Two of the county’s three commissioners are under investigation by the ethics commission on accusations of nepotism.
The most recent subject is Commissioner Gregory Jolivette, who admits to voting on the hiring of and pay for both his son and daughter as county employees in 2004 through 2006.
The investigation of Commissioner Charles Furmon and former County Administrator Derek Conklin is still ongoing. They are being examined to learn what role, if any, they played in pay raises given to Furmon’s son-in-law and Conklin’s wife.
That investigation has already taken more than a year.
Then there’s the federal Dynus Corp. trial, which has sent skeletons tumbling out of the county’s closet.
This was the second week of the federal trial of Orlando Carter, the former fiber optics firm’s owner, in U.S. District Court in Cincinnati. He has pleaded not guilty to an 11-count indictment that includes charges of bank fraud.
So far, Carter has been a minor player the stories about his trial, eclipsed by allegations of bribery, fraud and political influence for sale.
It was known that former county auditor Kay Rogers played a role in Dynus taking out a multimillion dollar loan in the county’s name when she pleaded guilty to bank fraud.
But what emerged from the testimony by former Dynus president Jim Smith were claims that he bribed Rogers and worked in collaboration with former commissioner Michael Fox to get the job done behind others’ backs.
Fox denies any wrongdoing, calling Smith a liar. Others implicated in the trial — including Scott Owens, former executive director of the county Republican Party, and West Chester Twp. Trustee George Lang — said they were lawfully hired by the company for a job.
That job was using their political influence to help the company land a contract with the county.
As the trial continues and a re-election race nears for Jolivette, continued hard-nosed politics and mounting scandals could put a new twist on the county seat’s old nickname — “Little Chicago.”
Two stories accompanied in Sunday’s paper.
Dave Greber followed with this story about Jolivette’s political future. Excerpt:
Accusations that Butler County Commissioner Gregory Jolivette engaged in nepotism seems to be making him vulnerable to prospective candidates of his seat.
Since allegations surfaced two weeks ago that Jolivette voted on resolutions having to do with his son’s and daughter’s county employment, three people have taken out petitions to run against him next year.
Jolivette said he will run to keep his seat on the commission.
As of Friday, Aug. 7, petitions had been pulled by County Treasurer Nancy Nix, Hamilton resident Bob Weber and a yet-to-be named candidate whose petition was picked up by the executive assistant to Clerk of Courts Cindy Carpenter.
Carpenter said last week there were no announcements coming from her office, although she is considering running and has been in contact with members of the county’s Republican Party.
On Thursday, July 30, Jolivette admitted to moving and voting on a resolution in 2005 to hire his son, Kevin, for a job with the county’s summer work program. He said former county Administrator Derek Conklin — who has declined to comment on the issue — advised him doing so would not be a problem. And when the resolution was read during the May 13, 2005, meeting — by title only — Jolivette says he never noticed it included his son’s name.
The next day, it was determined that Jolivette also voted on several resolutions over a three-year period involving the hiring and pay of his daughter, Elizabeth, who was employed with the county’s Department of Job and Family Services in 2004, 2005 and 2006.
And I wrote this story with reactions to testimony at the Dynus trial from Michael Fox. Scott Owens and others mentioned in court. Excerpt:
A bribed county auditor. A county commissioner engaged in back room deals. A local GOP leader hired to grease the wheels on an illicit deal. A township trustee giving a kickback to a company executive for business he received.
These were all allegations leveled last week in the federal court trial of former Dynus Corp. owner Orlando Carter in U.S. District Court in Cincinnati.
The trial has shed light on some dark corners of Butler County, and drawn ire from a public growing weary of scandal.
County officials said this is not how business is supposed to work. Some denied the accusations and implications made in court. Others refused to comment.
Read the stories, then come back here and tell us what you think.
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Love says former Dynus owner was ‘stealing’ from company
Prominent Cincinnati businessman and civic leader Ross Love shook his head incredulously as a prosecuting attorney read a list of expenses former Dynus Corp. president Orlando Carter racked up with company money.
$360,000 for a down payment for a Maineville mansion. $10,000 for a family vacation to Disney World. Roughly $180,000 for a box seat on the 50-yard-line of Paul Brown Stadium.
“I characterize that as stealing money from the company. That’s just wrong,” Love said.
Love, one of the wealthiest men in Cincinnati, had 20 percent ownership of Dynus Corp. after investing $1 million in the company’s start-up and guaranteeing a $1.25 million loan.
Love said his agreement with Carter capped the company owner’s salary at $100,000. Love said he knew nothing of the other things Carter paid for.
The $1 million is gone, Love said. And he is still paying off the $1.25 million.
Dynus closed its doors in October 2005, after it came to light the company had borrowed $6.5 million in Butler County’s name without county approval.
Carter is fighting an 11-count indictment, including charges of bank fraud and over-inflating his income to qualify for a home loan. Love’s testimony came Monday, Aug. 10, on the 11th day of Carter’s trial in federal court.
Defense attorneys counter that Carter was in the dark about the details of the Butler County deal — that it was being handled by company president Jim Smith — and he thought the company, and his salary, were more profitable than they were.
Prosecuting Attorney Jennifer Barry asked Love what he would have said if Carter had approached him as member of the company board about these expenses.
“It’s so out of bounds that it would not have been a discussion, and it would have led to a rethinking of his leadership in the company,” Love said.
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