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 holiday weekend
* Lingle out as COO, Messina in at IEPA
* Question of the day
* It's already getting super ugly
* Rauner celebrates museum reopening after decimating it
* A huge transit TIF bill passed yesterday
* Rauner talks about the deal
* Trust issues go both ways
* Don't break your arms patting yourselves on the back
* "We certainly are not undoing the damage that we've done to this state by not working together, by not doing our jobs"
* Rauner signs extension of medical marijuana program
* Ain't so easy, is it?
* 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

  
* iPhone 7 Pro storage options, Google HTC Nexus specs & more – Pocketnow Daily
* George Stroumboulopoulos to Kick Off Canadian 'Takeover' of Beats 1 Tomorrow
* LG fires executives because of the G5
* This is the Samsung Galaxy Note 7
* Best Buy will throw in a $75 GC if you buy a US factory unlocked Galaxy S7 or Galaxy S7 Edge
* AT&T MVNO H2O Wireless upping data buckets for pricier brackets
* Obama dropped BlackBerry and now the Senate has, too

* Gonzalez does his part, but bats stymied
* Fulmer among top prospect performers Friday
* Sale, Fister set to duel in premier pitching matchup
* Despite rut, White Sox aren't panicking
* Astros 5, White Sox 0: Unlucky early, thin late
* Gonzalez does his part, but bats stymied
* Sale, Fister set to duel in premier pitching matchup

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


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

Archives
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
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


* Election, angry voters prompt budget deal - DeK.....
* Election, voters near 'revolt' prompt budget de.....
* Illinois medical marijuana program gets boost f.....


* 2 dead, 4 officers hurt after police pursuit ends in crash
* Governor names pro-business official new head of IEPA
* Illinois medical marijuana program gets boost from Rauner OK
* Election, voters near 'revolt' prompt Illinois budget deal
* Judge: Special prosecutor to investigate Chicago officers
* Chicago police assign 150 more officers to street duty
* Chicago police prepare for July 4 weekend violence
* Ex-Swansea man gets 56 years in prison for rape of child
* Central Illinois man pleads guilty in child pornography case
* Woman charged with drug-induced homicide in overdose death

* Will budget stalemate resume in January?
* Former Hawaii Gov. Lingle leaves Rauner administration; new EPA head also named
* Lawmakers OK grace period for late license registration
* Illinois budget impasse affects state parks spending
* Illinois medical marijuana program gets boost from Rauner approval
* Rauner signs bill extending medical marijuana program
* Rauner grants clemency to 6 people; denies 150
* Lawmakers approve stopgap spending deal, Rauner signs it
* Gov. Rauner attends State Museum reopening ceremony, thanks staff
* Rauner attends State Museum reopening ceremony, thanks staff

* Who benefits from stopgap state budget?
* Litigation finance firm sues IP lawyer Ray Niro
* Chicago police prepare for July 4 weekend violence
* A Hershey sale wouldn't sour regulators
* Chewing on IPO or sale options for Ferrara Pan


* Chicago Police arrest 88 ahead of Fourth of July weekend
* Man wounded in Austin shooting
* Man shot in Lawndale
* Man wounded in South Shore drive-by shooting
* Dear Abby: People notice my twin but not me
* Georgia Nicols horoscopes for July 2, 2016
* 17-year-old girl shot in Austin
* Robin Ventura seems pretty comfortable on hot seat
* Troubled Johnny Manziel facing long climb out of abyss
* Cubs struggle vs. NL big boys, drop 10th of 15 vs. winning teams


* Conviction vacated, new trial granted for Adnan Syed of 'Serial'
* Judge blocks Indiana genetic abnormality abortion law
* Syria's refugee children have lost all hope
* Durbin sees 'appearance of impropriety' as Obama associates pursue for-profit university deal
* Young couple convicted in Bali suitcase murder break up
* Kris Bryant's HR vaults Cubs to 2-0 lead in 4th
* Judge still mulling who to appoint to prosecute cop in Laquan McDonald killing
* Vernon Hills man charged with sexually assaulting teen he met on Facebook
* Judge threatens city of Chicago over failure to turn over documents
* Mayor Emanuel says Chicago schools will open on time this fall


* Will budget stalemate resume in January?
* Charles Krauthammer: Brexit: Sovereign Kingdom or little England?
* Ra Joy: Illinois needs redistricting changes to get other reforms
* Former Hawaii Gov. Lingle leaves Rauner administration; new EPA head also named
* Lawmakers OK grace period for late license registration
* Illinois budget impasse affects state parks spending
* Illinois medical marijuana program gets boost from Rauner approval
* Rauner signs bill extending medical marijuana program
* Rauner grants clemency to 6 people; denies 150
* Lawmakers approve stopgap spending deal, Rauner signs it


* Illini roundup: McFadden remains on roll
* Lunt at ease ahead of final collegiate season
* UI hoops recruit glance: RaiQuan Gray
* Lift for Life 2016
* PODCAST: Sports Talk 07-01-16
* Indian Acres Patriotic Parade
* Wisconsin professor named dean at UI's Applied Health Sciences
* Tom's #Mailbag, July 1, 2016
* UPDATED: Boil order lifted in Pesotum
* Rain ahead by Sunday; heat & humidity next week


* AP Source: Kevin Durant meets with Warriors
* Stroke for stroke: Phelps edges Lochte at US swim trials
* Gonzalez solid but White Sox shut out by Astros 5-0
* LEADING OFF: Cleveland goes for 15, Fernandez doing it all
* Seager, Lee power Mariners to 5-2 win over Orioles

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Key US Senate votes on Zika, Puerto Rico d......

* Key US Senate votes on Zika, Puerto Rico d......

* Lakeview Pantry Holds Open House Today To Show Off New Space
* Ice Cream Social And Public Roll Call Saturday Morning
* Lynch had better follow FBI findings
* Not Ready For The Fourth To End? Come To Driftwood
* Cartoon Of The Day
* Cartoon of the Day - 7/1/16 Terrorists at gun shop
* Gig Economy Workers Should Have Unemployment Protections, Experts Say
* Men's Shelter At Lawrence & Sheridan To Close July 31 Due To Budget Impasse
* Men's Shelter At Lawrence & Sheridan To Close July 31 Due To Budget Impasse (Updated 1x)
* Senate fund announces $40 M in First Round of Fall TV ads; none for Kirk


* Emergency Management Officials, National Weather Service Encourage Winter Preparedness - November is Winter Weather Preparedness Month in Illinois
* Keep Your Family Safe This Winter - November through February are leading months for carbon monoxide related incidents
* Governor Takes Bill Action
* Illinois Department of Labor Director Hugo Chaviano Awards Governor’s Award for Contributions in Health and Safety to the Illinois Refining Division of Marathon Petroleum Company LP
* State Regulator Elected Treasurer of Interstate Medical Licensure Compact




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller