GOP leader should not profit from sale of building

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6:05 PM Wednesday, September 2, 2009

The Butler County Republican Party can’t get out of its own way.

On Tuesday, we reported that Republican Party Chairman Tom Ellis, a Middletown-based Realtor, made about $25,500 from the sale of the party’s Fairfield Twp. headquarters building in July, according to those involved in the sale.

That equates to 3.5 percent of the building’s sale for finding the buyer, the same amount received by the listing agent, West Chester Twp.-based Northridge Realty, which Ellis contracted to handle the sale.

Northridge owner Dick Alderson said everything was handled “100 percent legal,” and the party “has to sort out” whether Ellis is entitled to the commission.

Meanwhile, Alderson, a GOP executive committee member, said he probably wouldn’t have taken the $25,000 commission.

We agree with Alderson. Ellis should have refused to accept the commission based on his leadership with the party. This doesn’t pass the smell test. It stinks.

By Tuesday morning, numerous readers, reportedly Republicans, of the story on this newspaper’s Web site had called for Ellis’ resignation and the restructuring of the Republican Party.

But Central Committee Chairwoman Judy Shelton said she was “thrilled” and “ecstatic” that Ellis located a buyer in these “hard economic times.”

The building sold on July 6 for $730,000, according to the Butler County Auditor’s Office Web site. The buyer is listed as Terra Investment Group Realty.

Ellis said he deserved the commission because he saved the Republican Party about $4,000 a month in mortgage. He said people called the sale “absolutely a miracle” because of the current real estate market.

This controversy comes at a terrible time for the party and Ellis.

He is being sued by his brother for allegedly defrauding him and his mother for more than $500,000, court records show.

The civil suit alleges that Ellis sold a 20-unit apartment complex in Seven Mile to his mother Claire Smith for an inflated price, then mismanaged the property and pocketed some of the rent. It also claims Ellis borrowed money from his mother and never paid it back.

The suit was filed by Stephen Ellis, Tom Ellis’ brother, who holds power of attorney over Smith.

Tom Ellis denied the charges and said he “will respond accordingly,” though he declined to elaborate.

Ellis isn’t alone in his legal battles.

Two of the county’s three commissioners are under investigation by the ethics commission on accusations of nepotism.

Commissioner Gregory Jolivette admits he voted on the hiring of and pay for his son and daughter as county employees in 2004 through 2006.

Commissioner Charles Furmon and former County Administrator Derek Conklin are being examined to learn what role, if any, they played in pay raises given to Furmon’s former son-in-law and Conklin’s wife.

Ellis’ commission may be perfectly legal. But to accept it at this time shows poor judgment. As the party prepares to face a contentious battle for Jolivette’s seat, it would do well to consider public perception.

Tom Ellis’ commission may be perfectly legal. But to accept it at this time shows poor judgment.

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