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.


* Reader comments closed for the weekend
* Today's map: Every state's wealthiest person
* Question of the day
* The Sun-Times' inexcusable reefer madness
* Today's long read
* How times change
* 4,700 percent increase in Chinese students at UIUC since 2003
* Pollapalooza
* Another day, another $1.5 million
* Justifiable turnabout or pay to play?
* Cook moves Enyart district from "Lean D" to "Toss-up"
* Two important inversion opinions
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* 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

          
        * Thanks, Obama: Now you can legally unlock your smartphone if you want to
        * These are currently the best prepaid solutions available in the U.S.
        * iPhone 6 won’t glow, Plastic Moto 360, HTC Windows Phone & more – Pocketnow Daily
        * Samsung Galaxy S5 Sport Unboxing (Video)
        * Unlocking Consumer Choice and Wireless Competition Act becomes law
        * Pardon the dust
        * FCC’s new proposal will put a stop to any Sprint, T-Mobile spectrum-acquiring joint venture

        * HP Steps Into Wearable Tech with Michael Bastian
        * Looks like Amazon’s CIA cloud is live
        * GameStops In Philadelphia To Start Fingerprinting Customers Who Trade-in Games
        * Alleged iPhone 6 Home Button/Touch ID Component Leaked
        * Job Cuts At Beats Not Happening Yet [Rumor]
        * Flappy Bird Returns As Flappy Birds Family On Amazon’s Fire TV
        * President Obama Signs Cellphone Unlocking Bill, Makes It Legal

        * Abreu's hit streak at 21 following RBI single
        * Pino, Carroll set up for rematch in Chicago
        * White Sox 10, Twins 8: Jose Abreu drives offense in wild win
        * Gardenhire gets out call at first overturned in seventh
        * White Sox refuse to lose, rally past Twins
        * Abreu's hit streak at 21 following RBI single
        * Gardenhire gets out call at first overturned in seventh


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

        Archives
        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


        * Quinn signs law expanding ban an cyberbullying .....
        * Quinn announces $2.1 million state investment i.....
        * Sen. Kirk seeks investigation of federal disast.....
        * Governor hopeful pledges $1M of fortune - Jacks.....
        * Illinois politicians created a kitchen sink bal.....
        * Quinn signs bills bolstering Ill. child protect.....
        * Ill. drone law extended to private operators - .....
        * Quinn signs law expanding ban on cyberbullying .....
        * Gov. Quinn signs bill extending Illinois drone .....


        * Illinois governor hopeful pledges $1M of fortune
        * Ill. drone law extended to private operators
        * Quinn signs bills bolstering Ill. child protection
        * Firefighter puts out neighbor's Bloomington blaze
        * Memorial set for ex-Ill. Commerce Chairman Manshio
        * Quinn signs law expanding ban an cyberbullying
        * Illinois patients continue nursing home care waits
        * State halts disposal of gas waste at Clinton site
        * Trial of man in officer's death to stay in Pontiac
        * Kirk seeks investigation of federal disaster funds

        * Illinois communities scramble to find road salt
        * State fines local payday loan outlets
        * Rauner pledges $1M in personal funds, catches criticism
        * New law expands state Holocaust Commission
        * Search salary information for state, city, county employees
        * Quinn, Rauner budget plans debatable
        * Memorial set for former ICC chairman Calvin Manshio
        * Rauner meets with Sangamon County GOP
        * Back pay, OT pushes state government's '$100,000 club' to 7,800
        * Quinn signs law expanding ban on cyberbullying

        * Quinn signs law expanding ban on cyberbullying
        * Quinn TV ad portrays an Illinois comeback many voters don't feel
        * State universities at risk from Illinois budget woes, S&P warns
        * Illinois governor hopeful Bruce Rauner pledges $1 million of fortune
        * Rauner pledges $1 million of fortune


        * Pension payments delayed to retired Chicago teachers
        * Rockets, summer program helps IIT freshmen soar
        * A family’s grace amid tragedy
        * Open door to third parties on ballot
        * Former co-worker recalls shooter, victim in Loop office tragedy
        * Parkinson’s drug trial has researchers optimistic
        * Homewood man gets life for fatally stabbing 3-year-old son
        * Deerfield man found near Oregon nature camp


        * Loop shooting: How did trusted partner become disgruntled gunman?
        * 16-year-old suffers graze wound on South Side
        * McCarthy defends department's crime reporting, faults media coverage
        * Mississippi man charged in 2013 slaying on West Side
        * Man gets natural life plus 25 years for son's murder, girlfriend's assault
        * Rosie sign on Kennedy Expressway gives family hope
        * Chicago man fatally shot in Aurora: police
        * Rauner, Quinn get big campaign contributions
        * Four charged with heroin trafficking, DuPage prosecutors say
        * Astronaut sky high on list of best graduation speakers


        * Feds set to divert refugee funds to deal with unaccompanied minors
        * Durbin Files Legislation Reacting To Hobby Lobby Decision
        * Listen to State Week - August 1, 2014
        * "The Civil War" Becomes A Downtown Musical
        * New Choir Brings A Level Of Expertise
        * Republican Attorney General Candidate: Pension Changes Unconstitutional
        * Some Historic Sites To Curtail Hours Due To Lack Of Money
        * At Historic Sites, Budget Cuts Could Lead To Closures
        * State Fair Manager "Moving Forward" After Ethics Violation
        * Community Prosecutions Credited With Drops In Crime


        * State fines local payday loan outlets
        * Derrick Gay: An opportunity to prevent another unnecessary war
        * Charles Krauthammer: Kerry the Clueless
        * Rauner pledges $1M in personal funds, catches criticism
        * Search salary information for state, city, county employees
        * Memorial set for former ICC chairman Calvin Manshio
        * Quinn signs law expanding ban on cyberbullying
        * Illinois patients continue nursing home care waits
        * Kirk seeks investigation of federal disaster funds
        * Bernard Schoenburg: Changes coming to Prairie Capital Convention Center board


        * Governor signs hunting, fishing law
        * It's all about the cobbler at Cobden Peach Festival
        * Women take turn on main stages
        * Lightning strike puts charge into Celebration prep
        * Celebration shakes off rain, gets down to fun
        * Open Line
        * Garden of the Week: Anzelmo
        * Lillian Kneezel
        * Cool weather no problem for Illini, others
        * Two Illini make Western Amateur semifinals


        * Schaumburg/Hoffman Relay For Life raises more than $100,000
        * Rose makes successful return to court with Team USA
        * Traverse City ends Boomers' win streak
        * Abreu extends streak, White Sox beat Twins 10-8
        * Fatality to close part of 290 for 2 hours

        * Rep. Jan Schakowsky (D-Imwit) Dares To #Li...
        * Rep. Nadler, Roskam Introduce Resolution C...
        * Rep. Roskam In Letter to Kerry: Stop Runni...
        * Congressman Tells Kerry: Stop Partnering w...
        * Reinvigorating The Antibiotics Pipeline - ...
        * Roskam mapping next House chapter, doublin...
        * What's next for Peter Roskam? - Chicago Su...
        * Officials push for funds to finish West Ch...
        * DuPage leaders on W. Chicago thorium clean...
        * Rep. Roskam: IRS Budget Cuts Best Way to C...

        * Asian carp action pushed...
        * Route 31 western bypass in Algonquin nears......
        * Schakowsky Introduces Legislation to Rewar......
        * Schakowsky Introduces Legislation to Rewar......
        * Schakowsky Introduces Legislation to Rewar......

        * Israel pushes deeper in Gaza after soldier......

        * Walk-In Medical Clinic Coming To Sheridan Plaza
        * A couple of announcements
        * The Big Heart
        * Guest ten minute drawing. Annie Tan.
        * Guest ten minute drawing. Arthur Goldstein.
        * Guest ten minute drawing. Jose Vilson.
        * Guest ten minute drawing. H.D. Worth.
        * Gustafson ideas arrive in time for you
        * Six easy ways to protect sensitive online data: National Cyber Security Awareness Month
        * Earned Sick Time Chicago Coalition Delivers Petition Signatures To Mayor's Office


        * ICYMI: Federal funds misused in Quinn anti-violence program
        * Governor Quinn Invites Applications for 32nd Annual Hometown Awards
        * Governor Quinn Announces Completion of Cutting Edge Broadband Network - $100 Million Illinois Century Network Construction Brings Ultra-Fast Access to Communities Across 55 Counties
        * Veteran Hiring Event Nets 26 On-the-Spot Job Offers - Pre-Registration and Illinoisjoblink.com Key to Hiring Success
        * Governor Quinn Announces Investments to Expand Recreation and Tourism in Rockford Area - Investments Will Help Expand and Improve Rockford Area Facilities to Create Jobs, Support Recreation and Drive Tourism




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