SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
More anti-Rauner oppo dumps

Monday, Feb 24, 2014

* Crain’s

Gubernatorial candidate Bruce Rauner backed the boutique investment firm of a longtime business associate several years ago, only to be surprised when the Securities and Exchange Commission later shut down the firm for fraud.

In 2004, Mr. Rauner made a personal $4.5 million startup investment in fund manager Acartha Group LLC, a suburban St. Louis firm founded by Burton Douglas Morriss. Before Acartha, Mr. Morriss had already arranged one deal in which the duo made more than $75 million. Mr. Rauner, an avid outdoorsman, also owned a hunting camp with Mr. Morriss.

But in 2012, the SEC seized control of Acartha, accusing Mr. Morriss of defrauding investors of $9.1 million.

Mr. Rauner was a “passive investor” who was “misled and defrauded” by Mr. Morriss, like dozens of others, Mike Schrimpf, a spokesman for Mr. Rauner’s campaign, says in an email. “Bruce is angered and outraged by Morriss’ actions.” […]

The experience with Acartha could undercut his pitch that he is a savvy business executive who would bring that expertise to Springfield, a key part of his campaign for the Republican nomination for governor in the March 18 primary.

* And Doug Ibendahl has a long and involved piece about a new court filing in the Rauner-linked nursing home case. Click here to read the whole thing.

- Posted by Rich Miller        


27 Comments
  1. - Formerly Known As... - Monday, Feb 24, 14 @ 10:44 am:

    If Schrimpf is correct, this one won’t have much legs.

    Throw enough stuff like this out there, however, and pretty soon all those little matches start a great big fire.

    Looks like smoke on yonder horizon.


  2. - Anonymous - Monday, Feb 24, 14 @ 10:45 am:

    It may undercut him, but the fact that he is a billionaire with many varied $ interests would also lend credence that he knows his way around the business world, for better or worse, hook or crook


  3. - Samurai - Monday, Feb 24, 14 @ 10:50 am:

    Contrary to what the Tort Reformers would have us believe, juries just don’t award millions of dollars on BS cases with no liability and damages. No defense that you let the corporation default. Just a business strategy to save litigation costs because you are judgment proof.

    The affect of this on Rauner supporters? Mostly zero. They believe Rauner and his companies are the victims of greedy trial lawyers. The same goes for the anti-Rauner literature; just those union bosses beating up on Brucie.


  4. - Cincinnatus - Monday, Feb 24, 14 @ 10:54 am:

    This goes right to the heart of Rauner’s claims that he will run the government like a business. And why is Rauner settling RICO claims?

    Shake down Springfield is the motto…


  5. - wordslinger - Monday, Feb 24, 14 @ 10:54 am:

    He’s a tough, “hands-on” guy who wants to run the state likes his businesses and shake things up.

    But whenever any heat comes his way, he’s a “passive investor,” or didn’t know who worked for him, or wasn’t really involved, or can’t remember who talked to whom.

    You can’t be Sgt. York and Sgt. Schultz at the same time.


  6. - William j Kelly - Monday, Feb 24, 14 @ 10:55 am:

    Running government more like a Busness? Good. Running government like a rauner Busness? Despicable! If rauner wins the republican primary you can count on an independent canidate for governor!


  7. - Anonymous - Monday, Feb 24, 14 @ 10:55 am:

    =The affect of this on Rauner supporters? Mostly zero. They believe Rauner and his companies are the victims of greedy trial lawyers. The same goes for the anti-Rauner literature; just those union bosses beating up on Brucie.=

    Then how about getting to special treatment to get his daughter in to a highly competitive high school or paying hundreds of thousands of dollars to democratic politicians? What do Rauner supporters feel about that?


  8. - Oswego Willy - Monday, Feb 24, 14 @ 10:57 am:

    Way too little, WAY too late for this “little”

    However…

    ===You can’t be Sgt. York and Sgt. Schultz at the same time.===

    Great line. Perfect. Just too late(?)


  9. - VanillaMan - Monday, Feb 24, 14 @ 10:59 am:

    All the has to do is convince voters he will be better than Quinn and won’t go to jail like Ryan and Blagojevich.

    In a party full of losers like the Illinois GOP and in a state filled with crappy governors - it doesn’t take much and Rauner has enough.


  10. - Rich Miller - Monday, Feb 24, 14 @ 11:02 am:

    ===I’m thinking the UMWA under John L. Lewis for one example===

    The guy founded the CIO, which changed the very nature of organized labor in this country and raised living standards for millions. Perhaps you could learn some history as well.


  11. - Grandson of Man - Monday, Feb 24, 14 @ 11:03 am:

    “What do Rauner supporters feel about that?”

    I would also like to know how they feel about Rauner running as an “outsider” to stand up to “corrupt” union bosses and politicians, when he was one of the people profiting immensely from the status quo, via government employee pensions.


  12. - Walker - Monday, Feb 24, 14 @ 11:27 am:

    Venture Capital World includes some deceptive practices, hidden financial manipulation, destructive behavior, and outright marketplace and investor fraud. That is sometimes why so much profit is produced.

    It is also filled with risk and has some very talented, hardworking, and ethical players. Some win big in the right ways. Even the best cannot avoid some of the slime splashing on them.

    It is more “shark tank” than “business incubator.”

    It’s not the typical large corporate or small business world and culture.

    Bringing the Venture Capital World into government is not the same as “running government like a business” as the voters generally thing of the phrase.


  13. - wondering in Lake County - Monday, Feb 24, 14 @ 11:37 am:

    Remember the deal that made Rahm Emmanuel a rich man:
    Rauner made lots of money - $100MM into $500MM in less than 6 months
    Rahm received huge commissions
    Daley was running SBC
    3,500 employees outsourced or sacked
    Oh - by the way, the buyer, TYCO CEO, Dennis Kozlowski, he went to jail too.

    Rauner runs with a very dangerous crowd…….


  14. - A guy... - Monday, Feb 24, 14 @ 11:42 am:

    Venture Capital by its very nature is a high risk/high reward business. There are people who act fraudulently on too regular of a basis. Think of all of the state and federal funds that have been wasted or squandered before they got to the place where they were intended. This one’s pretty hard to explain to people in a way they could understand it fully. It’s also 2004. This kind of “oppo” is reaching. I can see why it was the third or fourth arrow. They’d have been better off trying to pound their first two. Now it’s officially reaching.


  15. - very interesting - Monday, Feb 24, 14 @ 11:56 am:

    Rauner obviously is better at making money off unprotected seniors living in his substandard nursing homes.


  16. - Samurai - Monday, Feb 24, 14 @ 12:03 pm:

    A tale of two early Conservative Southwest Suburban Endorsers after receiving the first anti-Rauner mailer.

    Hello committee:

    Just read the Shearer anti-Rauner mailer. Wondering if we made a mistake at the endorsement session. This is pretty scary stuff about Rauner if true. He [Rauner] always said he played with the powers that be and that has always been the Democrats. So the question is, will he continue playing his game for his benefit after elected. In the future we should obtain more information about candidates before a vote.I am no longer sure about our choice.

    Demitri:

    The mailer was powerful and many voters will be influenced by it. A lot of insinuations, but just the same old unproductive smear tactics used by these other candidates that should be saved for Durbin and Obama. It is all so repulsive from those that have corrupted this State.

    Take away for me. The “One Percenters” know, but don’t care; Rauner is their guy. The others, don’t know and if they come to know, just might suffer buyer’s remorse. Better before the primary than after.


  17. - RNUG - Monday, Feb 24, 14 @ 12:32 pm:

    – You can’t be Sgt. York and Sgt. Schultz at the same time. –

    –Word–, great comparison.


  18. - RNUG - Monday, Feb 24, 14 @ 12:36 pm:

    If the nursing home allegations can hold and be boiled down to a few simple items, that is the message that will hurt downstate. Don’t think there is enough time and money to get the message out.


  19. - PoolGuy - Monday, Feb 24, 14 @ 12:39 pm:

    – You can’t be Sgt. York and Sgt. Schultz at the same time. –

    brilliant Word


  20. - Robert the Bruce - Monday, Feb 24, 14 @ 1:28 pm:

    ==If the nursing home allegations can hold and be boiled down to a few simple items, that is the message that will hurt downstate. Don’t think there is enough time and money to get the message out.==

    Agree with you completely, RNUG.

    There are so many attacks on Rauner - “he’s too rich/out of touch” / “he’s a hypocrite cheap watch-wearer” / “he invested in some companies with unethical practices” / “he used his influence to get his daughter into a better high school” / “his economic programs don’t add up” - so many things to attack him on, but none an election death blow.

    But profiting off of endangering seniors? That’s the outside chance of taking him down. And it needs a compelling victim. A son/daughter of someone who was abused in the nursing home, telling the story, crying on camera.


  21. - RNUG - Monday, Feb 24, 14 @ 2:47 pm:

    Yeah, any attack ad needs to be short, factual but blunt to the edge of libel, and needs a single theme. Then it needs to be run constantly.


  22. - wordslinger - Monday, Feb 24, 14 @ 3:44 pm:

    –Yeah, any attack ad needs to be short, factual but blunt to the edge of libel, and needs a single theme. Then it needs to be run constantly.–

    Rauner’s cease-and-desist demand on the “ineffective” nursing home spot certainly implied defamation of character and libel. There are remedies in law for that.

    You want to go that route, dude, presenting facts to a judge in a court of law? You chose not to defend yourself in the bustout of the nursing homes, instead walking away and hiding in bankruptcy.

    Yeah, run the state like your businesses.

    Shake it up, daddio. Put your big-money where your eternal-victim-mouth is.


  23. - D.P.Gumby - Monday, Feb 24, 14 @ 3:53 pm:

    Great line Word, but does enough of the public remember the two Sgts?


  24. - RNUG - Monday, Feb 24, 14 @ 5:32 pm:

    –word–

    I agree he ducked court on that one even though he now sends a cease and desist. I’m thinking an even blunter attack ad on his buying the election needs to be run. I could write it in about 30 seconds but I don’t know if anyone would have the guts to run it.


  25. - wishy washy Republican - Monday, Feb 24, 14 @ 6:37 pm:

    I’m thinking more of Rauner just because Ibenthal is always wrong


  26. - Just The Way It Is One - Monday, Feb 24, 14 @ 8:04 pm:

    The Pounding (sorry, Bruce, but you’re in the “Big Time,” now Rich Palomino) continues, and it will not STOP now until Election Day, and I mean the BIG One…in November. And, sadly, no Coat of Armor he tries to put on or arrow he tries to fling back (via TV/radio response ads) will be able to shield him from suffering some real serious, painful body blows, many which’ll be peneTRAtions that will jolt him like a bolt of lightning, he will have to TAKE those hits, and they WILL inevitably cause br damage–in fact, they already HAVE…! How he fares in the end depends in part how well he can weather these blows…most Republicans in Illinois in recent years in Big Races like the Upcoming General have not and cannot…


  27. - Think About It - Tuesday, Feb 25, 14 @ 8:37 am:

    Note the words that Mr. Rauner made a PERSONAL donation. How can he be trusted to run our government when he now has a track record of both personal and business decisions that are very poor, and VERY wrong.


Sorry, comments for this post are now closed.


* More new TV ads
* Get ready for "Bloodtober"
* DCCC defies DC expectations, runs ad attacking Davis
* Today's assignment
* Rate Quinn's new ad: "Washington"
* SUBSCRIBERS ONLY - Supplement to today’s edition: Crosstabs and TV ads
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Good morning!
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Brain Wars lets you challenge anyone to a brainy game
        * I just bought a one-year-old phone and it’s still better than anything else out there
        * Samsung’s new ad “note” a dig at Apple, “note”-iceably funny
        * Detailed Nexus 6 rumors attempt to confirm name, hardware specs
        * Apple Rubs Elbows With The Fashion Elite For Paris Apple Watch Event
        * GoPro outs new HERO 4
        * Exactly backwards: Apple's security statement is more a PR coup than a nightmare

        * “Where You Are Right Now Is a Necessary Step.”
        * Stripe Leads the Race to the $1 Trillion Future of Mobile Payments
        * How we built it: Tell your story to find funding and then stick with it
        * How to Tackle the Toughest Shipping Restrictions
        * Google’s modular phone will let you swap out parts without powering down
        * Matchstick, the Firefox OS-based Chromecast competitor, launches on Kickstarter for $18
        * Apple Avoided Billions in Taxes, European Regulator Says

        * Manager notes: How Robin Ventura and Chris Sale get along
        * Voting underway to decide Hank Aaron Awards
        * Development of young core in '15 can define Chicago's future
        * Improved White Sox take important step in 2014
        * September call-ups report card: position players
        * Ushering in the world after Paul Konerko
        * Classy to the end, Konerko waves farewell to stellar career


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Governor Pat Quinn TV Ad: "Washington"..
        * Clinton to stump for Illinois Gov. Pat Quinn..
        * Vallas Distances Himself from Rauner's Charter .....
        * Doctors Recommend IUDs for Teenage Girls, Paren.....
        * Ridesharing company Uber to expand in Chicago'..
        * Exclusive: Republican Mayor Gary Manier of Wash.....


        * Emanuel to city agencies: Up minimum wage to $13
        * O'Hare, Midway airports nearing normal capacity
        * Fire recovery beginning in downtown Rock Island
        * USDA: Illinois corn harvest continues lagging
        * Walgreen reports 4Q loss
        * Man killed in windshield tire crash identified
        * Boston City Council members weigh $25K pay raise
        * Durbin, Oberweis debate background checks for guns
        * GOP opposition to school funding bill irks Manar
        * Man accused of threatening university students

        * GOP opposition to school funding bill irks Manar
        * Durbin, Oberweis debate background checks for guns
        * Election 2014: Simon, Topinka spar over transparency, ethics in comptroller’s race
        * Statehouse Insider: There are a lot of campaign ads, in case you haven’t noticed
        * Quinn, Rauner address Illinois millennials
        * Burris an issue in Chicago trial
        * State schools seek carbon monoxide detectors
        * Ex-Sen. Ronald Burris an issue in Chicago trial
        * Gloria Steinem campaigns for Illinois Gov. Quinn
        * Flight disruption cancels Steinem stop with Quinn

        * Leo Burnett beefs up shopper marketing
        * Things are getting better at O'Hare, Midway airports
        * Walgreen sets record for yearly revenue
        * EBay to spin off PayPal
        * University of Chicago creates new training program for non-profit and government leaders


        * Vigil held for Skokie teens; two Niles North seniors shot, one killed
        * The thug life runs deep
        * Chicago shutdown will cost airlines ‘hundreds of millions’: analyst
        * Man accused in FAA fire made 'tragic mistake,' lawyer says
        * Shake-up at Robert R. McCormick Foundation
        * Church hosts woman fighting deportation
        * Hackers might have Jewel-Osco customers credit card data — again
        * Prosecution rests in Joliet double murder trial
        * Top cab official arrested in vehicle title laundering case
        * Uber forges ahead with 420-job expansion contingent on veto


        * Centralized dispatch system part of taxi reform proposal
        * Construction debris causes 'significant delays' on Blue Line
        * Lombard man killed when tire smashes through windshield in Wisconsin
        * Hot Doug's: The exit interview
        * Charges filed in slaying of mom and daughter, 7
        * Jewel-Osco hit again by data hack
        * Elgin cop fired after Facebook comment on Ferguson shooting
        * Police release photos of suspects in Gold Coast watch robbery
        * Police search Grayslake pond after woman reported missing
        * Man dead, 6 wounded in shootings since Monday


        * Effort Underway To Gauge Sangamon County Health Needs
        * Aramark, CPS change plan to cut school janitors
        * 3,000 fewer students enroll in Chicago Public Schools
        * Meet Bishop Blase Cupich, Chicago's incoming archbishop
        * Cupich to be next Chicago archbishop
        * Mary Todd Lincoln And Spiritualism
        * Retirement Plan At Center Of Dispute In Ill. Treasurer's Race
        * Rehabbing vacant buildings, and the lives of those who fix them
        * Pensions: Vexing Illinois Politicians Since 1917
        * Mike Lawrence: The Compelling Challenge Of Rehabbing Illinois


        * Our Opinion: Job creation is a health priority in Sangamon County
        * GOP opposition to school funding bill irks Manar
        * Durbin, Oberweis debate background checks for guns
        * David McSweeney: Pension cost shift would lead to higher taxes
        * Bernard Schoenburg: Rauner campaign uses Michigan firm for calls
        * Election 2014: Simon, Topinka spar over transparency, ethics in comptroller’s race
        * Statehouse Insider: There are a lot of campaign ads, in case you haven’t noticed
        * Statehouse Insider: There are a lot of campaign ads, in case you haven’t noticed
        * Our Opinion: Another day, another embezzlement — but why?
        * Andy Shaw: Illinois voters deserve straight talk from Quinn, Rauner


        * Snake Road migration attracts tourists
        * Illinois crop report 9-29-14
        * Effort seeks more rights for Illinois crime victims
        * Hatch campaign reduces TV advertising
        * State sells just two planes in bid to pare down fleet
        * Streator family's pumpkin is second biggest in world
        * Strawn’s fall art classes start soon
        * Daily business briefing: News Corp. buying online real estate business
        * IHSA officials won't attend Friday state legislature committee meeting
        * Flights still affected by Aurora fire


        * Political newcomer challenging Roskam for U.S. Congress seat
        * No injuries reported in Naperville fire late Monday
        * Secret Service director takes responsibility for White House breach
        * Halfway home, breaking down playoff possibilities
        * Afghanistan, US sign long-awaited security pact

        * Representative Jan Schakowsky Sends Letter...
        * Rep. candidate pushes to uphold marriage b...
        * Reps. Schakowsky and Waxman Introduce Bill...
        * Statement by Representative Jan Schakowsky...
        * FAA Rejects Call For New O'Hare Noise Stud...
        * Representatives Quigley, Duckworth, Schako...
        * Representative Jan Schakowsky Statement on...
        * Representative Jan Schakowsky Statement in...
        * U.S. House Passes Resolution Condemning An...
        * Representative Jan Schakowsky Statement on...

        * Durbin, Oberweis debate guns...
        * Durbin, Oberweis debate guns...
        * Durbin, Oberweis debate guns...
        * Durbin, Oberweis debate guns...
        * Durbin, Oberweis debate guns...

        * FAA Calls for 30-Day Review of Security Pr......

        * Are you ready for this week’s open house?
        * Morning Minute: Peoria market makes list of best fall housing markets for millennial buyers
        * More questions as flap over anti-Semitic professor percolates
        * New Obama EPA regulations mean higher energy prices for Illinoisans
        * Could the resume hold a candidate back?
        * Get out the Vote! Register to vote by the Oct. 7 deadline
        * Move, Inc. to be bought by News Corporation for $950 million
        * Kaifesh captures Illinois congressional endorsements
        * Pot.
        * Not my kids. Your kids.


        * Quinn must take lame duck tax vote off the table
        * Rauner hits Quinn on tax hike timing
        * Taxpayer Red Alert: Quinn Doubles Down on Lame Duck Tax Hike
        * Fact Check: Pat Quinn’s Most Desperate False Attack Yet
        * Rauner to Madigan: No lame duck tax hike after I win




            Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller