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October 2009
BREAKING NEWS: Fox facing federal indictments
Today, Oct. 29, the U.S. District Court unsealed an eight-count indictment on former Butler County Commissioner Michael Fox. The indictment also names Robert Schuler, the son of the late state legislator and friend of Fox dating back to their days at Miami University.
Check back often, as we’ll have lots more over the next few days. To view the entire indictment (in .pdf), click over to the story.
Story
CINCINNATI — Federal charges have been leveled against Michael Fox — former Butler County commissioner, state lawmaker and Children Services director — and attorney Robert Schuler, the son of a recently deceased state senator, according to an indictment unsealed today, Oct. 29.
The U.S. Attorney’s Office said Fox and Schuler “conspired to improperly benefit from Butler County contracts involving a (fiber optics) company doing business with the county,” and that the men failed to report income from the deals on their federal income tax returns. Fox is also charged with mail fraud for allegedly failing to disclose conflicts of interest in Ohio ethics disclosure statements he mailed annually from 2004 through 2007. Schuler is charged with perjury for alleged false testimony he gave to a federal grand jury on October 1, 2008.
Fox, a state lawmaker for nearly 23 years, county commissioner for a decade and Children Services director for nearly two years, has been under the FBI’s microscope for some time, with federal authorities gathering documents related to his Fairfield Twp. home and campaign finance forms.
That investigation started in 2005 to look into the Dynus Corp. fiber optics deal. That led to a county auditor and company officials pleading guilty to, and being found guilty of, bank fraud for taking out millions of dollars in illicit loans in the county’s name.
The indictment charges Fox and Schuler each with one count of conspiracy to commit mail fraud and one count of filing a false income tax return.
Fox is also facing four counts of mail fraud; U.S. Attorneys are seeking forfeiture of “any property which is derived from proceeds traceable to the offenses alleged in the indictment, including but not limited to a sum of money equal to $460,000.”
The indictment says that Fox, 60, solicited and accepted money from individuals and businesses acting as contractors for Butler County from 2001 to 2005, during the same period that he was a commissioners.
Many of the charges stem from a contract between Butler County and NORMAP Telecommunication LLC, in 2001 to install a county-wide fiber optics communications system.
Schuler, 46, of Dublin, bought NORMAP after the company received the contract, and received approximately $1,824,281 from Butler County, according to the indictment.
The indictment states that Schuler and Fox arranged for $360,000 to be transferred to a bank to pay off a line of credit in Fox’s name in March 2002, and an additional $100,000 was later transferred to a consulting company Fox owned in September 2002.
The indictment alleges that Fox also received payment from other individuals and businesses doing business with the county.
The mail fraud charges stem from Fox allegedly mailing his Financial Disclosure Statements to the Ohio Ethics Commission and omitting the payments he received and failing to disclose conflicts of interest in 2004, 2005, 2006 and 2007.
The indictment states that Fox filed a false income tax return for 2002 when he failed to disclose and pay income taxes on the payment.
The indictment charges Schuler with filing a false income tax return for 2002 by not reporting business income he received in that year.
Schuler is charged with making false statements in October 2008 to a grand jury investigating the circumstances surrounding the $360,000 transfer to Fox, according to the indictment.
Each count of mail fraud is punishable by up to 20 years imprisonment. Filing a false income tax return is punishable by up to three years imprisonment, plus taxes, penalties and interest. Perjury is punishable by up to five years imprisonment.
Fox and Schuler are scheduled to have an initial appearance before a U.S. Magistrate Judge later today.
Fox has repeatedly claimed he never knowingly did anything wrong in either deal. He defended himself this morning, via e-mail to The JournalNews: “At the advice of my lawyers, I will not comment on any specific information related to the government’s allegations at this time. I will have more to say about these allegations in the coming weeks and months.”
“I will do my best, with the limited resources that I have, to defend myself against these allegations. In my defense, I offer ‘The Truth’ and I will assert it to the best of my ability.”
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Combs introduces indigent defense legislation
Press release from state Rep. Courtney Combs, R-Hamilton:
State Representative Courtney Combs (R-Hamilton) today introduced legislation that would allow municipal courts that do not have a public defender assigned to their court and those that do not seek reimbursement from the Indigent Defense Fund to compensate court appointed attorneys.
“Unfortunately for courts that do not use the public defender system, the defendants and the city are in turn paying for another court’s defense fund,” Combs said. “My legislation would correct this problem and help struggling cities save money during these tight times.”
Under House Bill 335, the court would retain the court fees assessed for indigent defense rather than pay those fees into the State Indigent Defense Fund. Currently, indigent defendants in these courts are paying into the State Indigent Defense Fund and are not receiving any benefit. The city then is forced to reimburse the court for indigent defense.
This issue was brought to Combs’ attention by Judge Joyce Campbell of the Fairfield Municipal Court, whose court does not have a public defender. In 2008, her court sent over $130,000 to the Indigent Defense Fund.
“The Ohio Public Defenders Office provides excellent representation to those communities they serve,” Judge Campbell said. “However, for those courts, such as mine, that do not utilize their services it is fundamentally unfair to require the poorest of the poor to pay fees for services they do not receive. This legislation will rectify this situation and provide relief to the government entity actually paying for the court appointed attorneys representing indigent defendants in municipal and county courts of Ohio.”
The bill will now be referred to a committee where it will undergo further discussion.
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County offers pollution prevention internship program
Press release from Butler County:
Two local companies are realizing that “going green” not only helps the environment, but can also result in more than $600,000 in combined annual savings.
MillerCoors LLC and Tedia Company recently participated in the Butler County Recycling and Solid Waste District’s 12-week Pollution Prevention (P2) Intern Program to further their environmental goals, improve efficiencies and save money. Miami University intern, Matthew Fehr, and Ohio State University intern, Michael Klimek, analyzed the companies’ waste streams, purchasing practices, water and energy usage, and evaluated financial incentives and cost savings. Specifically, the interns:
- Quantified condensate recovery and water recycling opportunities
- Researched alternative lighting and energy efficient improvements
- Identified opportunities to minimize solid waste
- Identified recycling and reuse opportunities
- Streamlined reduction in hazardous wastes
- Improved air quality and overall operations
Through the P2 internship program, the Tedia Company was able to implement programs that will reduce air pollution and hazardous waste disposal and conserve energy. In addition to furthering their environmental goals, Tedia was also able to save money by reducing employee time associated with manufacturing operations. Overall, Tedia expects to save more than $16,000 from these pollution prevention projects.
“As a small company with limited resources, Michael gave us an extra set of hands. We were able to use his skills to complete some important projects that might otherwise still be waiting to get started,” said Tedia Company Safety and Training Manager Greg Fugitt.
“The best part of my internship was that I was able to work on several meaningful projects and gain valuable experience. At the end of my internship, I was able to estimate the savings I provided Tedia as well as the environmental impact,” said Tedia Intern Michael Klimek.
MillerCoors aims to reduce its environmental footprint through several sustainable development priorities. The water dependent industry focuses on water conservation as one of these priorities. The company’s goal is to reduce water consumption, energy usage, and the amount of waste it sends to landfills each year. During the summer of 2009, MillerCoors committed to reducing water and energy usage in several areas with high demand and minimize solid waste disposal. They plan to save more than $585,000 in energy, water, and waste reduction.
“The internship gave me valuable work experience with a well known company. I learned so much working here and I really believe this will benefit me greatly in the future,” said MillerCoors Intern Matthew Fehr.
In 2007, the Solid Waste District formed a partnership with Hamilton County and TechSolve to establish the P2 Intern Program. The partnership secured $42,000 in U.S. Environmental Protection Agency grant funds to create the program, which pairs college-level interns with local businesses for 12 weeks during the summer. Companies pay only about $1,500 for intern salary costs.
“The P2 Program helps local businesses improve their operations, conserve energy and water usage, and decrease waste disposal. Companies save money while increasing their environmental performance,” said Butler County Environmental Specialist Kimberley York.
The Solid Waste District is currently accepting applications from businesses and students for the 2010 P2 program. The application due date for businesses is Jan. 29 and the due date for students is Feb. 19. Businesses or students who would like to apply, should contact Environmental Specialist Kimberley York at (513) 887-3406 or YorkKA@butlercountyohio.org or download an application on the district’s website at www.butlercountyrecycles.org. Web applications are located under “business programs” then click on “summer intern.”
The Butler County Recycling and Solid Waste District is dedicated to promoting recycling, waste reduction and responsible disposal of all waste from households, commercial businesses, and industry to conform to Ohio EPA regulations.
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Caregivers union going back to county with new contract
From today’s paper:
The union representing many caregivers with the Butler County Board of Developmental Disabilities has agreed to a revised contract.
The Developmental Disabilities board unanimously signed off on the new contract Wednesday, Oct. 28. It now goes to county commissioners — who shot down the last negotiated contract — for approval.
The Professional Guild of Ohio union represents roughly 75 Developmental Disabilities employees, most of whom are direct care staff.
The new contract calls for a 2 percent pay raise for union members this year, and no raise in 2010 and 2011. The original contract included 2 percent raises all three years.
“For (the union) to agree to (this) is a big accomplishment,” said Developmental Disabilities Superintendent Chris Hurr. “We had to bargain and go back to the table because we couldn’t get anything approved (by commissioners).”
The new contract would also gives union members an additional day off starting in 2010 — which agency officials say other employees there already get — and allows them to accrue vacation days faster, starting in 2011.
Commissioners voted 2-0 against the original contract in June, then last month rejected a fact-finders report that sided with the union.
Commissioners Donald Dixon and Charles Furmon, who opposed the previous contract, both said Wednesday they needed to review the new contract before deciding if it’s more palatable.
“I’ll have to give it some thought,” Furmon said.
The two opposed the first contract because commissioners have laid off employees, enacted furloughs and cut wages across the county to cope with budget shortfalls brought about by recession. Commissioner Gregory Jolivette sided with the union, saying Developmental Disabilities is funded by its own levy, not the county’s general fund.
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Sheriff seizes on shootings to blast budget cuts
From today’s paper:
After three separate shooting incidents in one weekend, Butler County Sheriff Richard K. Jones issued a statement late Monday, Oct. 26, warning against proposed budget cuts at his agency.
Here is Jones’ statement:
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Analysis:
Jones said “it’s disturbing” to read about so many shootings in one weekend.
“Having three shootings in this county in one weekend does concern me,” Jones said in a statement. “It concerns me not only for the victims but for the citizens of this county who may have to depend on a depleted law enforcement agency for help when it’s needed most. I urge all… elected officials to use extreme discretion when considering the safety of those citizens we are all sworn to protect.”
Jones’ statement comes after the sheriff’s office released details about a shooting that happened Friday night, Oct. 23, in the 4900 block of Oxford Middletown Road in Wayne Twp.
Greg Manns suffered a gunshot wound and was flown by medical helicopter to Miami Valley Hospital, where he remains in critical condition, authorities said.
Cynthia Turner, 47, was arrested that night and charged with obstructing official business, resisting arrest and felonious assault, according to the sheriff’s office.
Police are also investigating a fatal double shooting in Fairfield in which two people were found dead in a car Monday morning, as well a Saturday night shooting after a gas station robbery in which the Hamilton SWAT team responded.
“Whenever a situation as severe as a shooting takes place,” according to Jones’ statement, “it takes many law enforcement resources to respond, investigate and hopefully criminally charge the suspects(s) responsible.”
What do you think about the proposed cuts?
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Alvarez party favorite for county commission?
Jose Alvarez is getting an increasing amount of attention in his bid to be the Butler County Republican Party’s endorsed county commission candidate.
GOP sources are abuzz about a coalition of party leaders lining up behind Alvarez, the dark horse candidate in a race that includes incumbent county commissioner Gregory Jolivette, county Treasurer Nancy Nix and county Clerk of Courts Cindy Carpenter, all angling for the party endorsement next week.
Alvarez has no countywide experience and little name recognition compared to the above three. But he was a township trustee in an area with growing political influence locally. See his campaign material here and here.
The reason why party leaders are purportedly lining up behind Alvarez is unclear, especially because some of these people rumored to be backing Alvarez are the same people who supposedly courted Nix and Carpenter to throw their names in the hat.
What do you think? Does Alvarez have a chance of winning the endorsement? The primary? The general election?
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Commissioners roll back elections board cuts
Butler County commissioners peeled back budget cuts to the Board of Elections this morning, Oct. 26, amid concerns about running a successful election next month.
Commissioners voted 2-0 to reimburse the board of elections $297,000 of the $379,017 slashed from the agency’s budget in July as part of a 2009 budget that had a $5.4 million shortfall.
Commission President Donald Dixon abstained from this morning’s vote, as he often does with issues involving the board of elections because of his personal relationship with agency director Betty McGary.
Dixon did vote against the July budget cuts, however, saying the cuts should have been spread more evenly across the board.
After the money was pulled from her agency’s budget after the vote in July, McGary said that if she laid off enough people to make the cuts, “you simply wouldn’t have enough staff to run the November election, that just wouldn’t be possible.”
County Administrator Tim Williams said this morning that the money given back to the elections board will come from the county’s ailing general fund, possibly from dwindling cash reserves.
“It depends on where the final number (of county revenue dollars this year) ends up,” Williams said.
County officials are preparing to draft a 2010 budget in coming weeks that will include wrestling with an estimated $6.6 million shortfall because tax and investment revenues have plummeted amid recession.
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Lakota school district officials testify on school rating, all-day kindergarten plans
Press release from state Sen. Gary Cates, R-Butler County:
Officials from the Lakota Local School District recently traveled to Columbus to testify in favor of two important bills sponsored by State Senator Gary Cates (R-Butler County), which seek to bring greater fairness to Ohio’s school district rating system and slow the implementation of a costly mandate in Governor Strickland’s evidence-based school funding plan that requires all school districts to offer all-day kindergarten beginning next academic year.
Mike Taylor, Superintendant of Lakota Schools, and Jamie Green, President of the Lakota Board of Education, spoke before the Ohio Senate Education Committee on October 20 and voiced support for both Senate Bill 167 and Senate Bill 173.
SB 167, which Sen. Cates introduced on September 17, would reform Ohio’s rating system for school districts to prevent a school from dropping more than one classification simply for not meeting federal Adequate Yearly Progress standards for certain subgroups of students. Under current law, high-performing schools have seen their state rating drop from “Excellent” to “Continuous Improvement” solely based on AYP performance.
Superintendant Taylor explained that Lakota came dangerously close last year to seeing their rating drop because of AYP requirements despite having met 30 of 30 state indicators. He said that while the district strives to ensure that “all children will succeed to their fullest potential,” the current guidelines for rating schools do not “truly measure or message the success of a district.”
Mr. Taylor added that in a recent survey, more than 91 percent of the community indicated that the Lakota’s “Excellent” rating was important to them because the quality of the local education system is one of the economic drivers of the West Chester region and why many families and companies are locating in the area.
President Green noted that Lakota has been Ohio’s largest “Excellent” district for eight years in a row thanks to a group effort on the part of the district’s staff, students, administration, board and the community. She said that the “double drop” in a district’s rating for failing to meet federal AYP standards is “not a fair or accurate representation of performance.”
Ms. Green and Mr. Taylor also testified in support of SB 173, which Sen. Cates introduced last month after hearing concerns from local school districts about not having enough information or resources to comply with the Strickland Administration’s requirement that all schools offer all-day kindergarten by fall 2010. The bill would delay the effective date of all-day kindergarten until the 2011-2012 school year to give districts more time to learn the details of the new rule, weigh its impact and decide how best to proceed.
“In this difficult economic environment, it is unrealistic and irresponsible to think that our already cash-strapped local school districts would have the resources to hire dozens of new teachers and build additional classroom space to meet this mandate, particularly after the Governor cut funding for many schools over the next two years,” said Cates.
Superintendant Taylor expressed concern that the quick move to all-day kindergarten would create a number of “financial, logistical and educational concerns” for the district. For example, he explained that a fast-growing district like Lakota, which has roughly 1200 students per grade, would need to construct an entire new building—at a cost of approximately $17 million—in order to accommodate the influx of students. In addition, he said extra staffing costs could approach $2.2 million annually.
Echoing the Superintendant’s concerns, Ms. Green explained that the Governor’s all-day kindergarten mandate “creates unpredictability for planning; gives no time for curriculum development; and comes with no time or money to build classroom space and pay for teachers and materials.” She urged support for SB 173 and said that the district could use even more time than the bill provides.
“I would like to thank Superintendant Taylor and President Green for their willingness to come testify before the Education Committee and share with my colleagues and I how these policies are impacting our local school districts,” said Cates. “I will seek their input, as well as the thoughts and concerns of other school district officials from across the state, as we move forward with hearings on SB 167 and SB 173.”
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County commission agenda
Below is the agenda for Monday’s Butler County commission meeting.
Anything look interesting to you?
(Click on the top right corner to enlarge)
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Auditor donates van to dog warden
Press release from Butler County Auditor’s Office:
Since taking office in 2008, Butler County Auditor Roger Reynolds has championed the need to share resources and work collaboratively with other government entities. He followed up on his pledge by donating a surplus vehicle to the Animal Shelter.
With two high-mileage vehicles in need of expensive repairs, Dog Warden Julie Holmes said Animal Control was hoping to receive a grant to replace them with a new vehicle. The grant wasn’t granted. Her wish was, however.
“We can’t thank Roger Reynolds enough for this generous gift,” Holmes said of the 1999 Dodge Caravan that was given to Animal Control. “We’re trying to be very frugal. This will allow us to auction off our other two vehicles and replace them with the auditor’s van which has lower miles.”
Reynolds said the van was available because it is no longer needed to support a field office.
“Improved efficiencies and streamlining the Auditor’s office prompted the closing of our field office in March,” said Reynolds. “Since then we’ve had an extra van. When we heard about the dog warden’s situation we were eager to help.”
Holmes said the van will be used for a variety of tasks including animal rescues, picking up strays, transporting animal control officers, transporting injured or sick animals to the veterinarian’s office and delivering dog licenses for sale to those who can’t get to the Auditor’s office or one of their agents.
“This van was purchased with taxpayer money and the taxpayers will benefit by its continued use in Butler County with Animal Control,” Reynolds said. “This is an example of agencies working together whereby we share resources which effectively reduces the citizens’ tax burden.”
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State: Furmon’s former son-in-law improperly paid
The state auditor has ordered Butler County to reimburse its water department $81,382 for payments to a county commissioner’s former son-in-law the state says were improperly handled.
James Hamblin resigned as Butler County Emergency Management Agency contingency planner last year after the local Democratic Party was granted an Ohio Ethics Commission investigation into pay raises Hamblin received.
Hamblin was married for Commissioner Charles Furmon’s daughter for nearly three years while Furmon was on the commission. During those years, Furmon abstained from all but one pay raise for Hamblin.
Those raises nearly doubled Hamblin’s salary. Furmon has repeatedly denied having any impact on any raises Hamblin received.
In a notice of proposed findings dated Oct. 14, an auditor from the state auditor’s office wrote that Hamblin was paid out of the county’s water department, when he should have been paid by the EMA.
This is an improper use of county money, the state wrote.
Here is a copy of the state’s findings:
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To address this, commissioners transferred $81,382 from the general fund to the EMA, so that agency can reimburse the water department.
Commission President Donald Dixon said the county has ceased the practice of paying people out of the water department who don’t work there.
“My concern is we were paying people out of it who didn’t have anything to do with water and sewer,” Dixon said.
Currently, only four people are partially paid out of the water department: the county administrator, commissioners’ attorney, finance director and assistant finance director.
County officials say the state’s findings came during a routine audit.
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State Rep. Combs on canceled income tax decrease
Press release from state Rep. Courtney Combs, R-Hamilton:
State Representative Courtney Combs (R- Hamilton) today opposed the Ohio House of Representatives’ passage of House Bill 318, which would suspend the last installment of the income tax reductions set forth in 2005.
Under current law, state income tax rates are to be reduced by a total of 21 percent over a five-year period, according to House Bill 66 of the 126th General Assembly. Governor Strickland and House Democrats have supported a freeze of the tax reforms, which would retroactively increase the tax burden on Ohio’s families by 4.2 percent in 2009.
“It is sad to say, I knew this day was coming when Governor Strickland and the House Democrats put forth an unbalanced budget last July,” said Combs. “House Republicans have put forth a number of measures to reduce government spending and the Democrats refuse to hear them.”
In addition, House Bill 318 would reduce the salaries of state legislators by 5 percent, a proposal initially championed by Representatives Seth Morgan (R-Huber Heights) and Terry Boose (R-Norwalk) in June of this year. The salary reductions would be effective starting in 2011, as permitted by the Ohio Constitution.
House Bill 318 was initiated to fill an $851 million budget deficit caused by the failure of the video lottery terminals (VLT) provision included in July’s biennial budget. House Republicans have expressed concern that the bill imposes a higher tax burden and continues the expansion of government without providing for any cost-efficiency measures.
In an effort to provide sustainable changes to fill the budget deficit, House Republicans proposed amendments to House Bill 318 on the House floor that would streamline government agencies and consolidate spending; minimize waste, fraud and abuse in the Medicaid system; remove the provision that calls for a tax increase; allow local school boards to decide whether or not to accept unfunded state mandates; create a committee to maximize hospital employment and sustainability; prevent taxpayers from being retroactively penalized by a state income tax increase; and reduce bonuses for House committee vice-chairs and ranking members. These suggestions were rejected by House Democrats.
“Now is not the time to put a tax increase on the backs of Ohio’s families,” said Combs. “Government spending is out of control and government must learn to live within its means.”
House Bill 318 passed from the House by a 55-44 vote. The bill now moves to the Senate for further consideration.
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County commission agenda
Below is the agenda for Thursday’s Butler County commission meeting.
Anything look interesting to you?
(Click on the top right corner to enlarge)
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Butler County’s busted budget - a breakdown
Response to “J”: I use Scribd to upload documents, and I gather they can be rather slow to download if you have a slow connection. You may be able to read the documents on the Scribd site better. If you click on the link above each document, that should take you to where the document is saved on the Scribd site. Let me know if that helps.
Original post:
As promised in an earlier analysis of Butler County’s hemorrhaging budget, here are the details about the shortfall and proposed budget cuts.
First, we have an analysis by Butler County Finance Director Pete Landrum of how the county got into the mess it’s in. This report estimates the county’s 2009 revenues at $84.2 million, or $9.5 million below 2008 revenues.
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Next, we have revenue projections for 2010. This is the letter sent by commissioners to all elected officeholders and department heads. It projects revenues in 2010 at $82.6 million, but expenses at $89.2 million. Thus a $6.6 million deficit.
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Here’s how commissioners suggest the county make up that $6.6 million deficit. This is a departmental breakdown of proposed budgets, including budgets for elected officeholders, after an 11 percent across the board cut.
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In the above document, you’ll notice that not all budgets were treated equally. This is because commissioners have determined certain line items are either grant funded or mandated by law, so can’t be cut. They cut only those things that didn’t fit that criteria. Here is a list of the things that did fit that criteria, so were left alone.
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Any thoughts on all this?
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Recycling grants available from county
Press release from Butler County:
The Butler County Recycling and Solid Waste District is now accepting applications for its 2010 Recycling Incentive Grant Program. The district provides funds to local businesses, schools, non-profit organizations and local governments interested in providing sustainable waste reduction and recycling activities in Butler County.
Since 2000, the district has awarded more than $105,000 in recycling grants to 38 organizations. The funding has helped organizations purchase new recycling containers, recycling services and promotional materials—resulting in increased and sustainable recycling programs throughout the county.
Here are a few examples of 2009 recycling grant projects:
- Schools— Area schools purchased new bins and co-mingled containers to support expanded recycling programs. Through these programs, the schools are generating additional revenue to sustain long-term recycling activities.
- Businesses—Baker Concrete added desk-side recycling bins for all office employees. To date, Baker has diverted more than 27 tons of material from the waste stream. Fort Hamilton Hospital purchased cardboard and co-mingled recycling containers with plans to offer recycling in every unit at the hospital.
- Nonprofits—Colonial established a new recycling program at both Westover and Berkeley. With the new program in place, Colonial will divert approximately 26 tons of material from the landfill each year.
- Local Governments-The cities of Hamilton, Monroe, and Oxford purchased 65 gallon wheeled recycling toters for residential households. As a result, residents are now able to recycle more of their material with the larger containers, and this additional capacity is expected to generate higher recycling rates for Butler County.
Those interested in starting or expanding a recycling program must complete and submit applications no later than December 18, 2009. To apply, please visit www.butlercountyrecycles.org, click on “recycle at work,” and then “grant funds.”
For more information on the grant or other recycling programs, please contact the district at (513) 887-3406.
The Butler County Recycling and Solid Waste District is dedicated to promoting recycling, waste reduction and responsible disposal of all waste from households, commercial businesses, and industry to conform to Ohio EPA regulations.
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Alvarez releases campaign commercial
In a rare move, former West Chester Twp. trustee Jose Alvarez has produced a campaign commercial as he seeks the Butler County GOP’s endorsement for county commissioner.
That’s right, the commercial isn’t for the primary or general election, but for the party’s endorsement next month. Historically, candidates who don’t get the endorsement don’t run in the primary (though there have been exceptions), so some consider this the real race.
Alvarez is one of the dark horse candidates in the race. His name recognition pales in comparison to that of the incumbent, Gregory Jolivette, county Treasurer Nancy Nix or Clerk of Courts Cindy Carpenter. But he is definitely better known that the last candidate, Wes Retherford.
Anyway, here’s the video:
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FBI gathers more documents on fiber optics
It appears that federal authorities’ interest in Butler County’s fiber optics system has not waned, according to records recently collected from the county.
County officials confirm that the FBI has gathered records pertaining to the fiber optics network since the trial of former Dynus Corp. owner Orlando Carter.
Carter was found guilty in August of charges including bank fraud after his fiber optics firm took out millions of dollars in loans based on non-existent deals with Butler County.
The investigation that netted Carter also brought guilty pleas from former county auditor Kay Rogers. It has since apparently expanded to include campaign finance forms and other records related to former county commissioner Michael Fox.
Here are the most recent records gathered by the feds:
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…and…
…and…
…and…
Analysis:
Records recently gathered by the FBI include a map of the county’s fiber optics system and a breakdown of who owns the system’s 96 fibers.
According to those records, 30 fibers are owned by former Middletown city councilman Perry Thatcher, whose company I-Fiber bought them from NORMAP, the company that oversaw the system’s construction.
Another 36 fibers are owned by the county, which leases 12 of them to Miami University. MU owns another six fibers of its own. Cincinnati Bell owns 12 fibers as part of its payment for building the system.
A man named Irshad Ansari owns the final 12. Ansari was also involved in building the system.
FBI officials won’t comment on the records.
“I can’t even confirm we were looking for anything,” said FBI spokesman Mike Brooks. “I can’t comment on any part of the investigation, so I can neither confirm nor deny that.”
Commissioner Charles Furmon, who requested the FBI investigation into the Dynus deal years ago, said he was concerned about “fast dealing going on” when the system was being built, with one company going bankrupt and another rushing in to buy it.
“I’m really not sure who ended up with what from that venture, but I knew it was very confusing at that time,” he said.
Read about previous records obtained by the FBI here, here and here.
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Judge orders $4.1 million restitution for Dynus scandal
U.S. District Judge Sandra Beckwith has ordered Karin Verbruggen and other Dynus Corp. officials to pay nearly $4.1 million in restitution for a bank fraud case involving Butler County government.
Verbruggen was sentenced today, Oct. 14, for her role in the fiber optics company taking out a multi-million dollar loan in Butler County’s name without county approval.
She was the first to be sentenced in the case. Awaiting sentencing are former company owner Orlando Carter, former company president Jim Smith and former county auditor Kay Rogers.
Court records say Beckwith agreed to a reduced sentence requested by the U.S. Attorney’s Office. In addition to the restitution, she was sentenced to five years supervised release, one day imprisonment already served and a $100 assessment.
Verbruggen pleaded guilty in 2006 for her role in the scheme that cost Fifth Third Bank and National City Bank more than $10 million combined in loans based on a bogus deal with the county.
Verbruggen testified in Carter’s trial in August that she forged the name of Rogers and National City Bank executive on documents to mislead people about the loan. She did so at Smith’s urging, she said, and told Smith she was uncomfortable with it.
Verbruggen said during the trial she testified in hopes of getting leniency from the court.
Sentencing for Smith is scheduled Dec. 2. Dates have not been scheduled for sentencing Rogers or Carter. Rogers and Smith pleaded guilty to bank fraud, and Carter was found guilty in trial.
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First Dynus sentencing set for today
The first sentencing in the Dynus Corp. scandal involving Butler County government is set for this afternoon.
Former Dynus employee Karin Verbruggen is scheduled to be sentenced before U.S. Judge Sandra Beckwith at 2 p.m. today, Oct. 14.
Verbruggen pleaded guilty to bank fraud in 2006 to her role in the company taking out a multi-million dollar loan in the county’s name without county approval. The deal led to an FBI investigation that resulted in bank fraud charges last year against then county Auditor Kay Rogers, as well as Dynus’ president and the company’s owner.
Verbruggen testified in recent the trial of Dynus owner Orlando Carter that she forged the name of Rogers and National City Bank executives on documents to mislead people about the loan.
She said she did so at the urging of company President Jim Smith, and told Smith she was uncomfortable doing so.
She testified against Carter in the hopes of getting leniency in her sentencing, according to court records. Bank fraud carries a sentence of up to 30 years in prison.
Sentencing for Smith is scheduled Dec. 2. Dates have not been scheduled for sentencing Rogers or Carter.
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Butler County facing $6.6 million shortfall next year
From today’s paper:
(Note: I didn’t post this earlier because I’ve been trying to scan in the budget documents, but am having technical difficulties. I’ll get those up as soon as I can)
Butler County government’s financial blood-letting this year will likely pale in comparison to 2010’s budget woes, according to the most recent projections.
In a letter sent Tuesday, Oct. 13, commissioners are asking their departments and other elected officeholders for 11 percent cuts in non-mandated services to patch a projected $6.6 million hole next year.
They are asking for proposed budgets from these offices by Oct. 30, along with a list of which services they provide that are mandated by law. Everything else is on the table as commissioners work to craft a budget by Jan. 1.
Under initial projections, the hardest hit would be the sheriff’s office. It accounts for more than a quarter of the county’s total $89 million budget and is proposed to lose $2.5 million next year.
“If it becomes a $2.5 million reduction for the sheriff’s office, it will dramatically and severely impact public safety for the citizens we provide services for,” said Chief Deputy Anthony Dwyer.
The sheriff’s office already laid off more than a dozen deputies and corrections workers to deal with a $900,000 budget cut this year. This was part of a slew of layoffs this year as the county cut $2.6 million from its budget and dug into reserves for $5 million to balance this year’s budget.
At a budget meeting Tuesday, county leaders agreed that dipping further into reserves — which could endanger the county’s ability to borrow money — was not an option.
Officials have repeatedly warned they would have to cut staff to meet any new shortfalls.
Ed Dwyer, a division manager for U.S. Bank sitting on a budget advisory board for the county, said the county should consider sharing services with neighboring counties.
“Seems like that should be where we’re going,” Dwyer said.
Commission President Donald Dixon worries that the estimates could be conservative.
“I don’t think $6.6 million is the real number, I believe it’s a low number,” Dixon said. “I don’t know what the final outcome is going to be, but I can assure you the next few weeks are going to be very interesting dealing with this issue.”
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GOP chairman settles fraud suit brought by brother
Butler County GOP Chairman Tom Ellis and his brother quietly settled a lawsuit last week that claimed the Republican leader defrauded his mother and brother out of more than $500,000.
The suit, brought by Stephen Ellis in June, was dismissed Thursday, Oct. 8, after a pretrial hearing with Common Pleas Judge Matthew Crehan, according to court records.
When called, Stephen Ellis said the suit was settled out of court. But he would not discuss the terms of the settlement.
“According to the settlement, we’re not allowed to really disclose very much other than it was settled,” he said.
“We resolved it in the way that it should have been resolved in the first place, and not publicly,” Tom Ellis said. “We’re not going to go into any of the details.”
Tom Ellis continues to deny the allegations made by his brother. “There was absolutely no truth to any of that,” he said.
Those allegations were that Ellis sold a 20-unit apartment complex in Seven Mile to his mother at a loss, then mismanaged the property and pocketed some of the rent. It also claimed Ellis borrowed money from his mother and never paid it back.
The suit alleged fraud and breach of contract, seeking the full amount of allegedly misappropriated funds and clear title to the apartment complex.
The suit said Tom Ellis sold the Seven Mile Apartments to his mother for nearly $1.4 million, which was more than the property was worth, and made $251,000 in the deal. He then managed the property, misappropriated much of the rent proceeds and borrowed more than $251,464 from his mother and brother to keep the property out of foreclosure, the suit alleged.
The suit claimed that Ellis did not deposit rental checks for five months over a one-year period, and $68,494 in rent proceeds are unaccounted for.
“The monthly shortfalls were caused in part by Defendant Tom Ellis’s practice of keeping or diverting a portion of the rent income from the Seven Mile Apartments to the Defendants’ personal use and benefit,” the suit said.
The suit said the apartment complex operated at a loss of more than $24,000 per year, which Ellis wrote off on his taxes though his mother owned the property.
He then coerced his mother to revoke the power of attorney his brother held over her and sell the property back to him in May for $100,000, leaving her on the hook for $1.15 million, the suit claimed.
The suit also claimed Ellis bought a condominium in Wayne Twp. from his mother for $87,900, paid her $58,462, borrowed that full amount from her, then transferred the property back into her name.
The suit also claimed Ellis borrowed $57,556 from his mother in short term loans and never paid it back.
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Sheriff Jones to address Tea Party
Press release from Liberty Twp. Tea Party:
Butler County Sheriff, Richard K Jones will be the featured speaker at the next Liberty Township Tea Party meeting at the Princeton Pike Church of God on October 19th at 7:00PM! Liberty Township, OH, October 8th, 2009: The Liberty Township Tea Party will hold their next Tea Party meeting at the Princeton Pike Church of God on October 19th, 2009 at the Princeton Pike Church of God at 7:00 PM, Butler County Sheriff, Richard K Jones will be the featured speaker. Sheriff Jones will address immigration issues in Butler County. In addition to Sheriff Jones, Ken Korn will present “Four Minutes with Our Forefathers” an ongoing series presentation that examines the constitution what it is, how it was written, and why it is important. The Health Care Sub-Committee will provide a short update and there will be a question and answer period. All concerned citizens in Liberty Township and the surrounding area are invited to attend this event. The Liberty Township Tea Party is a grassroots, non-partisan, organization of private citizens united by our shared values and deep concern about excessive regulation and wasteful government spending. We have three core beliefs: Fiscal Responsibility; Limited Government, and Free Markets. We were founded in the summer of 2009 with a desire to organize with like-minded individuals; with an interest to educate ourselves, and others, about significant current events that are negatively impacting our country and families; and with a commitment to work in concert with other concerned citizens to bring about positive, public policies that are consistent with our core values.
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County commission agenda
Below is the agenda for Monday’s Butler County commission work session.
Anything look interesting to you?
(Click on the top right corner to enlarge)
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Grant lets sheriff save 11 jobs
Ten Butler County sheriff’s deputies and one victim’s advocate slated for layoff will get to keep their jobs for another year due to two federal grants coming to the county.
The two federal stimulus grants total $467,661 and require a local match of $155,887.
In July, pink slips went to 34 sheriff’s office employees — mostly deputes and corrections officers — after commissioners cut the department’s budget by $900,000.
“These are jobs necessary to run the sheriff’s office and continue the safety of the public,” said Sheriff Richard K. Jones.
But this only saves the jobs for one year. And county leaders are eying more cuts as they face a budget hole of up to $10 million next year.
“We have to wait and see,” Jones said. “We hope (President Barack) Obama throws a little more money down our way for law enforcement.”
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County commission agenda
Below is the agenda for Thursday’s Butler County commission meeting.
Anything look interesting to you?
(Click on the top right corner to enlarge)
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Dueling health care petitions at Boehner’s office
Update:
From Organizing for America Spokeswoman Christina Tamburro:
In response to your post today, to be clear, the 1,868 declarations that were dropped off by Organizing for America volunteers on Monday are all residents/constituents of Ohio’s 8th Congressional District (Boehner’s district). I’ve attached a PDF of the names of those that have publicly declared their support for the President’s plan for health insurance reform; the list includes supporters’ names, cities and zip codes.
(The pdf is below)
Original post:
After local Democratic groups dropped off a garlic milkshake and 1,800 signatures to protest U.S. House Minority Leader John Boehner’s views on the “public option” in health care reform, a group on the right responded with a petition of its own.
The Cincinnati Tea Party delivered a petition this week to the West Chester Twp. Republican’s local office with 3,000 names of people opposed to the public option, according to officials in Boehner’s office.
The first, pro-public option petition had no addresses, so it was unclear how many signatures were from Boehner’s district. Of the second petition, 523 names were from Boehner’s district and nearly all were from Ohio, mostly from Cincinnati.
What do you think?
As an aside, I hope to have a blog point at some point soon dealing with county issues, so this doesn’t become the Boehner blog.
Petition:
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Left lampoons Boehner over public option comments, delivers garlic milkshake
U.S. House Minority Leader John Boehner, West Chester Twp., had a garlic milkshake delivered to his Butler County office today. It’s because of these comments:
“I’m still trying to find the first American to talk to who’s in favor of the public option, other than a member of Congress or the administration.”…”I’ve not talked to one and I get to a lot of places.” “I’ve not had anyone come up to me - I know I’m inviting them - and lobby for the public option.”…”This is about as unpopular as a garlic milkshake.”
So, predictably, they’re lobbying him. I’m told Representatives from MoveOn.org, Health Care for America Now and the Center for Community Change visited his West Chester Twp. office to deliver a garlic milkshake and a piece of their mind about a government-backed health care plan — or public option.
They weren’t alone. A California Democrat evidently delivered an assortment of garlic to his Washington D.C. office.
And Americans United for Change said this television ad will soon run in Cincinnati and Dayton television markets:
Thoughts? Ever had a garlic milkshake?
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County leaders back casino issue
From today’s paper:
Butler County commissioners unanimously backed a state ballot issue allowing casinos in four major Ohio cities at their regular meeting Thursday evening, Oct. 1.
County officials say Issue 3 stands to benefit the county to the tune of $17 million — $7 million to local schools and $10 million to the county general fund — through licensing fees passed down by the state.
This is sorely needed as the county faces a burgeoning budget gap amid recession, said Commission President Donald Dixon.
“I think it makes sense to capture those dollars for our community and for Ohio,” Dixon said.
The issue — which would allow casinos in Cincinnati, Columbus, Cleveland and Toledo — goes before voters Nov. 3.
Commissioners Gregory Jolivette and Charles Furmon pointed out that countless local residents make regular out-of-state gambling trips.
“You’ve heard a sucking sound as money goes outside the state to Indiana, to Michigan, to Pennsylvania,” Jolivette said. “Every (Ohio) county will benefit from this proposal.”
Furmon himself said he and some friends recently visited Hollywood Casino in Indiana.
“Just counting the cars in the parking lot, at least seven out of every 10 cars had Ohio license plates,” Furmon said.
Plus commissioners - who met Thursday in the Middletown City Building - said they were hopeful a proposed casino in Cincinnati would create construction and casino jobs for local residents.
Across the state, issue backers say it will bring 34,000 jobs, $1 billion in private investment, take in $200 million in licensing fees and $651 million a year to school districts, local governments and state programs.
Some opponents say casinos would mostly benefit out-of-state interests. Others are opposed to gambling on principle.
A recent Cox Ohio Publishing/Ohio Newspaper Poll found Ohio voters back Issue 3, 59-38 percent, with 3 percent undecided.
“I hope that the citizens of Butler County will support this issue, this proposal because it makes sense for Ohio and it also makes sense for Butler County,” Jolivette said.
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County commission agenda
Below is the agenda for tonight’s Butler County commission meeting.
Anything look interesting to you?
(Click on the top right corner to enlarge)
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