The former attorney general says the Ohio inspector general has a ‘clear bias’ against
The former attorney general says the Ohio inspector general has a ‘clear bias’ against
Published:Tuesday, December 23, 2008
The former attorney general says the Ohio inspector general has a ‘clear bias’ against him.
Though mistakes were made during his short tenure as attorney general, Marc Dann said, a state inspector general’s report on the agency under his watch is “filled with innuendo rather than fact.”
The report, released Monday, states that Dann, “a cadre of his former senior managers and a handful of employees” turned the “office of the ‘people’s lawyer’ into a house of scandal.”
Dann fired back Monday, saying that Inspector General Thomas P. Charles has a “clear bias” against him, and the two “never had a good relationship.”
Charles listed 25 acts of wrongdoing by Dann, some of his closest friends in the attorney general’s office, and his wife, Alyssa Lenhoff.
The report accuses Dann and the others of improperly using money from the state, his campaign fund and a transition corporation he established shortly after his improbable victory in the 2006 election for attorney general.
“Regrettably, Marc Dann used his position as attorney general to indulge himself, his family and his friends,” Charles wrote in the report.
As part of the investigation, the Ohio auditor also conducted a special audit of the attorney general’s office under Dann’s watch identifying 175 expenditures, totaling $3.66 million, for further examination. That report states the attorney general’s office under Dann bought 99 new vehicles, totaling $1.94 million, with 14 of them, at a cost of about $310,000, paid from an “unallowable funding source.”
Among the purchases questioned by Charles from Dann’s campaign and transition funds are $12,263.47 paid to a dinnerware sales company owned by his wife, Lenhoff; $9,955 directly to her; and $3,182 to one of her company’s suppliers.
“It is inconceivable that the payment made to Zesty Dishes was anything other than a personal use of Dann’s campaign account,” Charles wrote.
From Cincinnati
Report uncovers ‘power, money, sex’
Dann: Inspector doesn’t like me
By STEPHEN MAJORS
Associated Press Writer
December 22, 2008
Former Attorney General Marc Dann ran a vulgar and unprofessional office and misused campaign funds to make lavish payments to friends and family, the state’s government watchdog said Monday.
COLUMBUS, Ohio — Former Attorney General Marc Dann ran a vulgar and unprofessional office and misused campaign funds to make lavish payments to friends and family, the state’s government watchdog said Monday in releasing the results of a six-month investigation.
Dann, a Democrat elected in 2006 on an anti-corruption platform, resigned in May amid a sexual harassment scandal in his office that included his admission that he had an affair with an employee.
The report by Inspector General Tom Charles said Dann hired a coterie of young women dubbed “the Dannettes” who were so unqualified and unprofessional in their dress and conduct that an office assistant was assigned to conduct etiquette training.
Dann said in a conference call with reporters that Charles’ report was littered with innuendo instead of facts and didn’t document any substantive cases in which he had broken the law.
He also said the report was written with a clear bias that had grown from Dann’s criticism of Charles for his handling of past investigations.
“He has never forgiven me for that,” Dann said. “We have never had a good relationship from the moment I took the attorney general’s office.”
From our friends in Cleveland
Report Rips Dann
Posted by Reginald Fields/Plain Dealer Columbus Bureau Chief
December 22, 2008 11:48AM
COLUMBUS — Former Ohio Attorney General Marc Dann formed an unregulated transition account after he was elected in 2006 that took in $195,000 in undisclosed donations and used much of the money for questionable purposes, the Ohio inspector general reported today.
Among the recipients of the money was a dinnerware sales firm controlled by Dann’s wife, Alyssa Lenhoff, the report said, and Dann’s friends who once served as his top aides, Anthony Gutierrez and Leo Jennings III. Just $8,838 remains in the account.
Inspector General Tom Charles released the report today following a multi-agency investigation of Dann’s office.
Dann responded this afternoon by holding a telephone news conference. He said Charles’ report was filled with innuendo and short on facts. Dann said all of the expenditures from his accounts were proper, and explained that the payments to his wife were for gifts for campaign supporters. He suggested that Charles had a vendetta against him.
Charles’ report also concluded that Dann led an office that tolerated the sexual harassment behavior that eventually toppled him and four of his closest work and personal associates.
“The rude, vulgar and abusive conduct of senior management, including the attorney general himself, created a hostile work environment that is an embarassment to state government,” the report said. “Sexual harassment was tolerated and friends and associates of the attorney general were hired into positions for which they were not qualified.”
Charles concluded that Dann “engaged in a pattern of unprofessional conduct that violated not only his own policy against harassment and discrimination but also his oath of office as an attorney and as the Ohio Attorney General.”
The report slams Dann for his hiring practices and lax oversight of his friends hired into jobs for which they were not qualified.
Copies of the report have been sent to the Franklin County Prosecutor’s Office, the Columbus City Attorney’s Office, the IRS and state Department of Taxation. The Ohio Supreme Court’s diciplinary counsel, the Ohio Elections Commission and the Ohio Ethics Commission also have been asked to review the findings.
Dann resigned on May 14 during the fallout from an embarrassing sexual harassment scandal that rocked his office, drew national attention, and cost four of his closest friends at the office their jobs.
The scandal began with two women who accused their supervisor, Gutierrez, of repeatedly making unwanted sexual advances and complained that their concerns were not being properly addressed. While their accusations were not directed at Dann, details that emerged showed a troubling pattern of misbehavior and unprofessionalism involving Dann and several in his inner circle at the office.
Dann initially refused to quit, despite admitting that he had an extramarital affair with a staff member, and despite a multitude of problems surrounding Gutierrez, his friend and roommate, whom he hired to head his general services division.
But even his fellow Democrats who helped him win in upset fashion in 2006 over Republican Betty Montgomery were not willing to stand by him. He stepped down only after the inspector general’s investigators raided the attorney general’s office as the governor and Democrats in the Ohio House began marching toward impeachment proceedings.
But that didn’t end Dann’s problems. Since then, the inspector general has continued his multi-agency investigation, which concluded with today’s report.
The secretary of state’s office has also questioned Dann’s campaign finance spending and has referred him to the Ohio Elections Commission for allegedly violating a state elections law by spending campaign money for non-political purposes.
Gutierrez also remains under investigation by the Ohio Highway Patrol for allegedly damaging and misusing various state resources. He was fired on May 2 after an internal investigation concluded he harassed employees, threatened subordinates and misused state property. Jennings, Dann’s office spokesman, was also fired for interfering with the internal investigation.
Dann, Gutierrez and Jennings were all friends from the Youngstown area and the trio shared a Columbus apartment during the week while working.
Edgar Simpson, Dann’s chief of staff, and Jessica Utovich, Dann’s director of travel and former scheduler, resigned after the internal probe was completed. Simpson was accused of not properly managing Gutierrez and properly following through on the accusers initial complaints. Utovich, with whom Dann had the relationship, was not accused of wrongdoing but quit anyway.
The two accusers, Cindy Stankoski and Vanessa Stout, remain employed by the attorney general’s office. They have a civil lawsuit against the state.
Report Rips Dann’s house of scandal”
We’ve noticed when there are certain things that happen at the Columbus Dispatch when Democrats thugs are outed how all of a sudden the damaging story is moved out of plain view.
We’ve been patiently waiting for this report to finally become available and now for the Marc Dann to whine like a 5th grade school girl shows the children of Ohio what not to become. Now let’s see how much influence Dann has over the the prosecuting attorneys who need to exhibit real crime fighting skills by giving this unfaithful dog his place in the pound as he really deserves
Report Rips Dann
Former Attorney General Marc Dann “violated the public trust,” misused his state office and his campaign and transition funds, and turned his office into a “house of scandal,” Ohio Inspector General Thomas P. Charles concluded in a scathing investigative report released today.
“This office was built for disaster,” Charles said in a press conference outlining the report. “He came in and brought a lot of people who were unqualified. It was very difficult not to make that an X-rated report,” he said, citing dozens of incidents of boorish behavior, sexually charged situations and foul language.
Charles and other investigating agencies found 25 acts of wrongdoing by Dann, his several underlings and his wife, Alyssa Lenhoff Dann. Some of them, mostly those concerning Anthony Gutierrez, Dann’s head of general services and long-time friend, could be felonies, explained David Freel, head of the Ohio Ethics Comission. Wrongdoing by Gutierrez was referred to law enforcement agencies and prosecutors in Franklin, Mahoning and Trumbull counties.
rest of the story
Maturity from the Democrat Party?
Strickland to seek ‘maturity’ in replacement for Dann
Published:Thursday, May 15, 2008
By Marc Kovac
The office’s first assistant attorney general is temporarily in charge.
COLUMBUS — Gov. Ted Strickland said he would immediately begin considering potential candidates to replace Attorney General Marc Dann.
Speaking to a packed Cabinet room full of reporters and camera crews, the governor said “maturity” was a top quality he would seek in compiling his short list.
“Maturity, experience, management ability — those certainly are criteria that I think are essential, especially now,” Strickland said. “We need someone who can provide confidence to the many, many employees of the attorney general’s office, someone who is recognized as a person of great integrity.”
Strickland answered reporters’ questions Wednesday during a Statehouse press conference after Dann’s resignation. The attorney general spoke for about three minutes to start the session, then left the room without answering questions.
The governor called Dann’s resignation the “honorable thing” and the “right thing” to do.
“This decision will allow the important work of the attorney general’s office to continue without the distraction caused by recent events,” Strickland said. “Today is a sad day, in many ways. I think it is appropriate for us all to acknowledge the personal pain and anguish that these events have caused the attorney general, his family members, his staff and others.”
The governor noted the attorney general’s accomplishments — environmental and consumer protections, foreclosure prevention and health care accessibility.
He also sent a strong message concerning state employees who feel they are being harassed on the job: “For any state employee who has suffered a hostile work environment or been subjected to sexual harassment, I would say to them that I, as governor, will not tolerate it if it comes to my knowledge and I have any ability to have control or authority over it.”
Strickland said the inspector general’s investigation of the office, launched Wednesday after he signed legislation late Tuesday giving Tom Charles that authority, would continue.
About a dozen members of the inspector general’s office were in Dann’s office earlier in the day interviewing employees, reviewing files and carting off computers and equipment.
The governor also shed some light on Dann’s attempts Tuesday to stop lawmakers from naming the inspector general to investigate his office.
The Dann slot factor
Taking time on Dann slot
Published:Friday, May 16, 2008
An attorney general candidate must be selected by Aug. 19.
YOUNGSTOWN — As governor, Ted Strickland makes hundreds of appointments.
Just last week, he made appointments to the Ohio Community Service Council, the State Medical Board, the Partnership for Continued Learning, and the State Board of Orthotics, Prosthetics and Pedorthics, among others.
But during his 16-plus months as governor, he faces perhaps his most important appointment decision — who will replace Marc Dann, a Liberty Democrat, as the state’s new attorney general.
Strickland, a Democrat formerly from Lisbon, started considering replacements shortly after Dann resigned Wednesday.
The governor doesn’t have a time line or a deadline for making the appointment, said Keith Dailey, his spokesman.
Those close to Strickland say the governor may take up to a month or possibly longer to select Dann’s replacement.
With Dann’s resignation, Tom Winters, first assistant attorney general, has the authority of the attorney general until Strickland selects a replacement.
The governor also must decide if he’ll pick a caretaker to run the office or select someone who would be the incumbent as the Democratic Party’s attorney general candidate in the Nov. 4 election to fill the remainder of Dann’s term. Dann’s unexpired term runs through January 2011.
The Democrats and Republicans will select a candidate to run for the rest of Dann’s term no later than 4 p.m. Aug. 19.
Also, those wanting to run as independents need nominating petitions with at least 750 valid signatures to get on the ballot.
But be careful in buying into what you hear about Dann from the governor and other state leaders.
Here is what Democrats fear most with Dann in office
By toddfranko
May 7, 2008
The below press release came in Tuesday.
More than fraud in office and more than abuse of taxpayer trust, the press release shows what Democrats fear most about Marc Dann staying in office:
Steve Driehaus Should Return Money Tainted By Dann
COLUMBUS - Democrat candidate Rep. Steve Driehaus says Attorney General Marc Dann is wrong to stay in office, but he seems to have no problem pocketing the money Dann raised for him as the headliner for a fundraising event back in December:
“Steve Driehaus can’t have it both ways. Marc Dann’s mismanagement and cronyism proved him unfit for office. If Driehaus truly believes Dann should go, he would reject Dann’s financial support and return the tainted funds. Condemning Marc Dann while lining your campaign coffers with money he raised is just pure hypocrisy,” said Ohio Republican Party Spokesman John McClelland.
On December 3rd, 2007, Marc Dann headlined a fundraiser for Steve Driehaus at The Aronoff Center for the Arts in Cincinnati, OH. The money raised from this event is tainted by Dann’s involvement, and it should be returned.
Every Democrat candidate who’s running for office, and especially those who’ve rubbed elbows with Dann, will have his name hung around their candidacy for as many elections as his name still raises eyebrows.
That is where the Dems’ pursuit of Dann hits a bump.
He was idiotic. He clearly was negligent in his management. But as a state legislator said the other day, “Is stupidity impeachable?”
To drive impeachment, the Democrats will sell the public that Dann’s actions were nearly crimes against humanity. The reality is his deeds come closer to being crimes against re-election.
Driehaus is running for Congress this fall. He’s currently a state legislator in the Cincinnati area.
It’s completely silly to think that money Driehaus earned six months ago when Dann spoke at a fund-raiser is “tainted” money. Driehaus is no more tainted by Dann’s visit than the caterer who fed the dinner and the band that played tunes at the event. I’d hate to think the caterer and the band should fork over their profits from that event because of what’s now known about Dann.
Heck, it’s also debatable if the crowd showed up for Dann, for the food or for the band. Anyone know what they were serving?
Even sillier about the release: the Republicans say Driehaus should “return the money.” How? Should he place ads in the paper saying “If you attended my dinner Dec. 7 and paid $40 to get in, stop by my house to get your money back.”
Most of us would see the Republicans’ press release as silly. But not all of us. That’s who the Republicans will target, and the Democrats will suffer.
So do you impeach an attorney general for that?
Think what you want on Dann. Thinking badly would be justified.
But be careful in buying into what you hear about Dann from the governor and other state leaders.
Democrat George Forbes charged
George Forbes charged in BWC probe
Posted by kturner July 03, 2007 15:08PM
A task force investigating corruption at the Ohio Bureau of Workers’ Compensation on Tuesday charged Cleveland NAACP President George Forbes with criminal violations of state ethics laws.
The six misdemeanor charges stem from Forbes’ tenure as a member of the BWC’s oversight board.
He is accused of accepting gifts from investment brokers doing or trying to do business with the BWC and not reporting them on financial disclosure statements filed with the Ohio Ethics Commission.
Forbes, 76, is scheduled to be arraigned Thursday morning in Franklin County Municipal Court.
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Marc Dann let democrat contributor off the hook
BWC lawsuit cost state $1.8 million
Legal fees, other expenses erased a chunk of hedge-fund exec’s $5 million settlement
THE COLUMBUS DISPATCH Saturday, May 17, 2008 3:05 AM
The state paid nearly $2 million, including $6,000 for a trip to Bermuda, for a chance to get back $5 million from one of the biggest frauds in Ohio history.Records show it cost taxpayers $1.84 million for the state to pursue a civil lawsuit against Mark D. Lay, who agreed to pay $5 million to resolve the case stemming from an Ohio Bureau of Workers’ Compensation investment scandal.
Lay and his MDL Capital Management, based in Pittsburgh, managed an offshore hedge fund for the bureau that lost $216 million before it was shut down in 2005.
A federal jury found him guilty of criminal fraud charges last fall, and on Tuesday, U.S. District Judge David D. Dowd Jr. denied Lay’s request for an acquittal or a new trial. Sentencing is set for May 27 in Akron.
The Ohio attorney general’s office also filed a civil lawsuit against Lay and others in 2005 to recover the $216 million, but officials and Lay agreed in March to settle the case.
Records requested by The Dispatch show that the bulk of the $1.84 million spent on the civil case was the $1.7 million paid to Bailey Cavalieri, the Columbus firm hired as special counsel.
That amount includes work by several lawyers at rates of up to $250 per hour, plus copying, mailing and other expenses — including nearly $6,000 for a lawyer and court reporter to travel to Bermuda for a week in 2006 to interview witnesses, documents show.
The hedge fund managed by Lay was based in Bermuda, and the lawsuit initially named the Bermuda fund officers among the defendants.
The total also included more than $336,000 paid to Bailey Cavalieri that was passed on to several consultants who did work on the case, records show.
Among the other costs related to the case was nearly $100,000 paid to Clark, Schaefer, Hackett & Co. for audit work on the bureau investment. That included $4,700 in meals, lodging and other expenses, records show.
The final cost to the state does not include the investment loss itself of $216 million, any potential lost income had the money been invested properly, or other expenses such as the cost to change investment managers.
Republicans have criticized the settlement, saying former Democratic Attorney General Marc Dann was a vocal critic of the bureau before he was elected and then let Lay, who has contributed to Democrats, “off the hook.”
“Dann has allowed the criminal responsible for the biggest rip-off in the history of the bureau to walk away with a simple promise to try and pay back 3 cents on the dollar,” Kevin DeWine, deputy chairman of the Ohio Republican Party, said in a news release last month.
Dann’s office cited several reasons for settling the case, including the expected request by federal prosecutors for more than $200 million in restitution, which would offset any civil recovery.
There also were concerns about how collectable any civil judgment would be and whether the cost of continuing to pursue the case was justified.
Where the money went
A breakdown of the $1.84 million the state spent to pursue the civil case against investment adviser Mark D. Lay:
• Special counsel fees: $1.7 million to Bailey Cavalieri, including:
$1.36 million for more than 5,500 hours of legal work
$336,217 passed to consultants for various work
$14,343 for transcripts, other court records
$7,984 in travel-related costs
$7,543 for copying
• Special counsel fees: $5,762 to Schottenstein Zox & Dunn
• Audit fees: $98,938 to Clark, Schaefer, Hackett & Co.
• Bureau internal auditing costs: $16,935
Sources: Ohio Bureau of Workers’ Compensation, attorney general’s office
Finally inventorying Patrick O’Malley’s computers
It would appear as though Cuyahoga County Executive Director Colleen Corrigan Day doesn’t have any problems with a fair amount of the staff having received their jobs due to political connections.
Cuyahoga recorder orders inventory of recorder’s office computers
Posted by Joe Guillen May 16, 2008 18:13PM
The Cuyahoga County auditor has ordered an immediate inventory of computer equipment in former Recorder Patrick O’Malley’s office.
The reason: O’Malley barred county workers from conducting an annual state-mandated review of the equipment. The ban goes back at least four years.
“They rudely threw [my staff] right out.” Cuyahoga County Information Services Center Director Dan Weaver recalled on Friday. “It didn’t surprise me, knowing his personality.”
Weaver said no other county office or department refused the inventory.
In a letter sent on Friday, Auditor Frank Russo also asked Weaver to investigate all computer equipment purchases O’Malley’s office made in the last five years.
Russo’s directive came a day after O’Malley pleaded guilty to a federal obscenity charge and resigned from office.
The investigation into O’Malley was fueled when FBI agents seized personal computers from O’Malley’s home in 2004. A search warrant said agents were looking for records of a billboard deal and images of child pornography.
O’Malley will be sentenced in August and could get more than six months in prison.
While the Cuyahoga Democratic Party huddled to pare down the list of potential successors to O’Malley — the party’s choice will be on the ballot in November — Republicans had a field day Friday.
They lumped O’Malley with former Ohio Attorney General Marc Dann, who resigned on Wednesday, and Cleveland City Councilman Joe Santiago, reportedly the subject of an FBI investigation.
“These Democrats, someone like Marc Dann or Pat O’Malley, they can’t even live up to the basic standards of competence and ethics in public office,” county Republican Party Chairman Rob Frost said.
Local Democrats, however, said O’Malley’s crime had nothing to do with his public service.
“The recorder’s office has been run efficiently and effectively,” Cuyahoga County Executive Director Colleen Corrigan Day said in a statement. “The personal issue of the former recorder bears no reflection on the operation of this county office or its staff.”
County commissioners are likely to name an interim recorder on Thursday. They are expecting a recommendation from the Democratic Party, which is headed by Commissioner Jimmy Dimora. It is the party that will make the final decision on who will face Republican Cathy Luks in the November general election for recorder.
Cuyahoga Common Pleas Judge Lillian Greene has joined the lengthy list of possible replacements for O’Malley, which includes members of Cleveland City Council and state representatives.
Luks said, “It doesn’t matter who the Democratic machine comes up with. There can no longer be one-party rule if there is to be accountability.”
Other than judges, there are no elected Republican leaders in county government.
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