Rauner gives self another $1.5 million
Tuesday, Oct 7, 2014 - Posted by Rich Miller
* Today’s A-1 filing is here. That comes on top of another $1.5 million Rauner’s campaign reported Friday afternoon. The gazillionaire has contributed $4.5 million to his campaign since September 22nd, and $15,576,000 to himself since becoming a candidate.
Hat tip to the DGA.
* Apparently, today’s fundraising e-mail wasn’t sufficient (/snark)…
Friend,
The Washington Post reported last week that Democrats have spent more money in Illinois than any other state!
President Obama was here last week. First Lady Michelle Obama is here today. Hillary Clinton is here this week too.
Now it’s being reported this will be the most expensive governor’s race in history… and we’ve been outspent.
We’ve been outspent in what could be the most expensive governor’s race in Illinois history. Why are Barack and Michelle Obama, Hillary Clinton, national Democrats and special interests pouring in tens of millions to beat us?
A few words: polls and priorities.
Polls? A series of polls show us with a small but durable lead. Their only hope to win is to outspend us (turn on your TV to see how they’re trying to make that happen).
Priorities? Pat Quinn is the poster child of machine politics. A career politician under two federal investigations who raised taxes 67% and oversees a state with billions in debt. A governor who raised taxes on everyone, but still has cut education spending by $500 million and released violent prisoners early.
When we beat him, we will beat the machine. Everyone knows that. That’s why Michelle Obama is here today. It’s why Hillary Clinton is coming.
Will you help us compete with Pat Quinn’s Obama-Clinton fundraising machine by making an online contribution of $10, $25, $100, $250 or even $1,000 right now?
The President, the First Lady and Hillary Clinton. What do they all have in common? All three are going all-in to save Pat Quinn’s campaign from defeat.
Last week, President Obama came to Chicago to raise $1.25 million for Pat Quinn. And you stepped up BIG to help us compete. But it’s not over yet.
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* AP…
A Chicago attorney and anti-corruption campaigner is stressing that a court-appointed monitor is needed to ensure the state’s Department of Transportation is in compliance with political hiring bans.
Michael Shakman’s filing Monday in federal court comes in response to a motion by Gov. Pat Quinn’s attorneys that the governor’s administration’s response to allegations of political hiring in the department had been both “prompt” and “appropriate.” […]
Shakman says the state investigator’s findings are reason enough for the monitor.
* Shakman says a whole lot more than that. From his filing…
The centerpiece of Governor Quinn’s argument is that all the issues identified by the [Inspector General’s] Report have been addressed. As noted above, the Report did not probe the involvement of the Governor’s office and did not state the numbers of transfers that violated the Decree. Thus, whatever the Governor’s responses, they don’t address those issues. Nor are they sufficient to address the identified violations in a manner likely to prevent reoccurrences.
Governor Quinn responded to the Report by directing IDOT to (i) retrain executive staff, who “will be required to attend a Rutan training course,” (ii) annually compare employee job descriptions with actual duties and if there is a discrepancy, “the job descriptions must be clarified,” (iii) hire an outside consultant to review exempt positions and provide updated descriptions to CMS to decide if they are really exempt, (iv) not create new exempt positions until the Governor says to do so, (v) abolish the “staff assistant” title, (vi) create a new definition of “technical” and an oversight board, (vii) “ensure” that all transfers into non-exempt positions are lawful and (viii) review prior audits for compliance.
What is missing in the Governor’s Response? Like the Report, the Governor’s response provided no explanation for the root causes of illegal hiring (in violation of Rutan) or for illegal duty assignments to often-meaningless jobs, followed by illegal transfers to non-exempt positions (both in violation of the 1972 Decree). Rutan and executive orders previously cited by the Governor, June 6, 2014 Response clearly did not prevent illegal hiring, illegal job assignments or illegal transfers. Missing from the Report and the Governor’s response is an analysis of why these violations occurred, the methods used, and structure to give reasonable assurances that violations will not occur in the future. Without that, the Governor’s directives will just be more words on paper.
How meaningful are the Governor’s remedial actions? The Governor is embroiled in a hotly-fought election contest against a candidate who focuses on the IDOT employment mess; the Report describes serious problems with IDOT employment practices, mostly on Governor Quinn’s watch; the Plaintiffs’ motion seeks a monitor to investigate and report, and the right to take discovery. What is surprising is how little the Governor has actually done in response.
(i). Retraining is not a solution because there was training before, as the IG’s Report notes. It did not prevent violations.
(ii). Comparing job descriptions and actual duties may provide more evidence that job titles have been manipulated, but will not address why. It will not prevent new “discrepancies” in a system operated for political purposes, as has occurred since early in the Blagojevich administration. The real question is how to prevent political misuse of job titles. […]
(iv). Freezing creation of exempt positions until the Governor says otherwise may be good public relations, but is not good public policy. Some positions should be exempt. The process of creating legitimate exempt positions should not be suspended until the Governor says otherwise. Rather, proposed exempt position descriptions could be prepared and circulated to Plaintiffs’ lawyers and a monitor. That process has worked well for other governmental agencies subject to Court orders in this case. It results in a credible exempt list approved by the Court.
(v) - (iv). Abolishing the “staff assistant” title, creating a new definition of “technical” and an oversight board fall into the category of closing the barn door after the horses have left. The problem with “Staff Assistants” was not inherent in the position. Rather, hundreds of positions were used to employ people who had clout, but who did little or nothing. Eliminating the “Staff Assistant” job title does nothing to prevent the same misuse of other positions. Nor does defining a “technical” job description and reviewing that determination prevent reoccurrence of patronage practices in other jobs. This case has demonstrated the creativity and willingness of public officials to engage in political manipulations in violation of the Decrees and their own internal written policies. Here “[t]he actions of IDOT officials violated Administrative Order No. 2 (2009) and IDOT’s own personnel policies,” Report at iv, not to mention this Court’s Decree. More than restating the rules is needed. Independent, external oversight is necessary.
(vii) - (viii). Ensuring that all transfers to non-exempt positions are lawful and reviewing all prior audits for compliance are also after-the-fact efforts that do not identify causes, prevent repetition or provide a trustworthy policing mechanism.
All these steps could have a role in a comprehensive effort to devise permanent, long-term solutions. But they appear mainly to be public relations efforts to show that the Governor is doing something – and to support his argument that the Court should do nothing.
*** UPDATE *** From the Rauner campaign…
“Bruce agrees with Michael Shakman that the governor’s phony reforms ignored the underlying corruption inside his administration and will not prevent illegal hiring at IDOT in the future. Pat Quinn said he would end patronage four years ago — he was lying then and he’s lying again today. The only way to end illegal patronage hiring is to submit to Michael Shakman’s call for a federal hiring monitor at IDOT.” - Rauner Spokesperson Mike Schrimpf
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* Bruce Rauner isn’t the only guy running pro-choice ads on Chicago-area cable TV…
Tom Cross, the Republican candidate for State Treasurer, is running a television ad in which he plainly states that he’s “pro-choice, pro-stem cell research,” and “proud” of being a deciding vote to legalize same sex marriage in Illinois.
It is unclear the scope of the ad buy. However, it is running on the Food Network, which boasts a 62% female viewer demographic with a household income $75,000+.
The Cross campaign has yet to make the ad publicly available, according to Illinois Review.
* And this’ll probably make some GOP heads explode, but Cross shared an endorsement with his Democratic rival today…
The Equality Illinois Political Action Committee (Equality Illinois PAC) today endorses the re-election of Atty. Gen. Lisa Madigan, Secretary of State Jesse White and Comptroller Judy Baar Topinka in the Nov. 4 General Election.
With no incumbent in the race for treasurer, Equality Illinois PAC, endorses both candidates, state Rep. Tom Cross, a Republican, and state Sen. Mike Frerichs, a Democrat.
Notice they went with Topinka over Sheila Simon. They explained in the press release that they side with incumbents who are with them.
* Meanwhile, from the Tribune editorial board meeting…
Cross, a partner at a Joliet-based law firm, has said he hopes to use the bully pulpit of the treasurer’s office as a means to encourage the General Assembly to approve a balanced budget and could sue. Frerichs called Cross out Monday, saying any citizen could do that and there’s nothing in the Illinois Constitution that gives the treasurer responsibility to do so.
“Every lawyer I’ve consulted says the … treasurer has no special standing,” Frerichs said.
Cross maintained that a lawsuit “is one way to hold the General Assembly and/or the governor accountable,” he said.
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Senger up with new TV ad
Tuesday, Oct 7, 2014 - Posted by Rich Miller
* As we discussed yesterday, state Rep. Darlene Senger may have a fighting chance against incumbent Democratic Congressman Bill Foster. Rate her new ad…
* Script…
Big spending Bill Foster…
…He’s voted seven times to increase the debt limit…
…While opposing a balanced budget.
Higher taxes, job killing regulations, wasteful spending…
…Bill Foster voted for it all.
I’m Darlene Senger. I’m running for Congress to get Washington to work for us.
We need to cut the debt and lower taxes for families and small businesses.
Darlene Senger opposed governor Quinn’s tax increases.
She’ll fight for us in Congress.
I’m Darlene Senger and I approve this message.
* Related…
* Foster, Senger disagree on immigration approach
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* Tribune…
Republican governor candidate Bruce Rauner today said he blames Democratic Gov. Pat Quinn for the deaths of child-abuse victims whose families previously had contact with the state’s child-welfare agency.
“Yes,” Rauner said when asked by reporters if the deaths of 95 children with past contact with the Department of Children and Family Services from 2011-2013 were attributable to Quinn.
“Pat Quinn is, in the end, responsible for the failings at the Department of Children and Family Services. If it was a one-year problem or a temporary problem you could say, ‘OK, maybe, there was, it’s not really his responsibility.’ But he’s been governor for six years. He’s had a revolving door of failure at Department of Children and Family Services for years and years,” Rauner said.
But…
Quinn spokeswoman Anderson said that an increase in deaths from 2010 to the 2011-2013 time period was in part attributable to a change in reporting requirements. That change required a finding of neglect if an infant died after being left in an unsafe sleep situation, such as in bed with a parent. Those reporting requirements were changed to the former rules in March.
* And YDD makes a very interesting point in comments…
I would note that the opening scene of the Rauner ad shows an infant being placed to sleep with a blanket in his crib.
One of the leading causes of sleep suffocation, according to every medical expert.
The American Academy of Pediatrics strongly recommends infants sleep alone, on their backs, and in a crib that is free of blankets, toys, and other possible suffocation hazards.
Sleep suffocations were the single largest cause of death in the Sun-Times report.
The child in this ad is clearly being shown placed at risk, apparently unbeknownst to Rauner, who is promoting a very unsafe practice.
He appears to be right about the AAP and the ad itself.
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* As I’ve been telling subscribers for a couple of months now, the advertising in state legislative races has been truly vicious, particularly the stuff from the House Democrats. For example…
District 59 Republican challenger Leslie Munger is denying claims that she supports pedophiles working in schools, a misinterpretation that she says incumbent State Rep. Carol Sente is spreading through a call center.
Munger said she learned about the claims when a supporter and resident of the district copied a voicemail message and shared it with her. The person who left the voicemail said that Munger opposes a recently adopted law that would help keep pedophiles from working in schools, and reminded the voter of a Buffalo Grove teacher who was recently arrested on charges of producing and receiving child pornography, according to Munger. […]
“These attacks are completely baseless and are a result of my desire to stop the unfunded mandates Springfield keeps passing, imposing increased costs and higher property taxes on our communities,” Munger said in a statement responding to the voicemail message. “My opponent is spreading these lies against me because she cannot run on her record.”
Munger said a search of the national sex offender registry only costs $5 and background checks cost between $7 and $15. She said she supports the checks and would not repeal that law, but surmised that the caller may have been referring to her opposition to “unfunded mandates.”
When you say you’re against “unfunded mandates,” you should say right at the start you don’t mean “good unfunded mandates.”
But, yeah, wow, what a nasty hit. The danger for Sente is that this creates a North Shore backlash. And, frankly, that’s as it should be.
Subscribers have audio of the robocall and the full script.
* The House Democrats also love to bring national issues into state races because people tend to understand national stuff more than state stuff and because the House Democrats are actually responsible for the bad state stuff and they can more easily blame Republicans for all the lousy national Congressional stuff. I’ve given subscribers numerous examples of this, but here’s an Illinois Review piece from today…
Tuesday, West Suburban Patriots released copies of the campaign ads that have filled voters’ mailboxes in the 46th House districts they say are “blatantly false” about their organization’s efforts.
“Heidi Holan’s Tea Party friends know she will grant their dangerous wishes,” one mailer said, with “Cut Social Security” and “Slash Medicare” as two wishes from an Aladdin’s lamp.
“Heidi Holan and the Tea Party agenda are Bad News for Illinois Seniors,” the reverse side says.
The West Suburban Patriots are very upset about the impression the mailers leave with their neighbors.
“At no time, nor in any manner has our organization ever advocated ‘cutting funding from Social Security or Medicare or slashing guaranteed medical coverage and benefits that senior citizens rely on, etc.’ To state such is a blatant lie,” the press statement said.
* The Republicans are not happy with these hits, but they take them in stride and fire back when necessary.
There’s just no way to prepare yourself to run against these House Democrats because they grab things out of thin air and throw it at you.
I mean, they’re using an end-of-session budget press release by House GOP Leader Jim Durkin to claim that a bunch of GOP candidates support raising politicians’ pay, which is an absolutely crazy concoction. I’d tell you more, but I want a subscription check first.
* Anway, when Dan Proft’s Liberty Principles PAC took a page from the House Democratic playbook, Rep. Scott Drury (D-Former Federal Prosecutor) filed a $9 million lawsuit…
Drury alleges that around Oct. 1, Proft, Liberty Principles PAC, Neerhof and his campaign produced and distributed campaign mail and cable ads that falsely portrayed Drury as “a proponent of local school funding cuts — which he is not,” the suit stated.
Drury was also portrayed as unethical and a political “sheep” who does the bidding for others, the suit stated.
Proft, reached by phone Monday night, said Drury’s suit is “frivolous.”
“The idea that Scott Drury thinks that a disagreement over policy in a political campaign is something to be litigated shows how insulated he is from the need for public discourse in this state,” Proft said.
* Basically Proft did what the HDems are doing elsewhere, claiming that because his party leaders want something, Drury does, too. In this case, it’s Sen. Andy Manar’s school funding reform bill…
* And check out part of Drury’s lawsuit. Click for a larger image…
OK, first of all, this is an uncoordinated (by statute) independent expenditure by Proft, so I don’t understand why Drury’s opponent is getting dragged into this lawsuit.
Secondly, Proft’s PAC has done this very same hit on several other Democrats and they haven’t gone screaming to the judicial branch with $9 million lawsuits.
* Should political attacks be based on hard facts? Heck yes they should. But since when has that ever happened? I’m in no way condoning Proft’s hit, just like I don’t condone the HDems’ multiple falsehoods, but, baby, that’s just part of life in the bigtime.
If you want to fight this, then battle it out on the proper playing field. Don’t run crying to Lady Justice.
* Man, it’s just too easy to sue somebody in this state. And, please, keep that in mind before you comment on this particular post. There’s an angry lawyer out there on a sacred Mission of Truth, and that type can be an extremely dangerous beast when provoked (and I’m not in any way comparing Rep. Drury to an animal, it’s just an expression meant to be slightly humorous, so please don’t sue me, Scott).
*** UPDATE *** From House Republican Leader Jim Durkin…
“Mr. Drury should back up a little bit and grow a thicker skin. His response gives new meaning to the term “overreaction.”
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Today’s number: 100,000
Tuesday, Oct 7, 2014 - Posted by Rich Miller
* Charles Thomas…
The deadline for normal registration to vote is midnight Tuesaday. But eligible Illinois residents will have their chance to register up until and including on Election Day.
More voter registration applications arrived Monday afternoon at the office of Cook County Clerk David Orr.
“Registration in suburban Cook is going to be significantly up over four years ago,” Orr said. “My guess is we’ll easily be more than 25,000 registrations up over four years ago.”
And city residents account for most of the 100,000 new voter registrations collected by “Every Vote Counts,” a coalition that targeted low to moderate income neighborhoods and young people.
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*** UPDATE *** From the Schneider campaign…
“This shameless ad is a perfect example of why Americans hold Washington Republicans in such low regard,” Schneider for Congress spokesperson Staci McCabe said. “Attacking Brad’s wife and family for cheap political gain is why so many Americans are disgusted by Republican’s tactics. The hypocrisy of this smear campaign is that Republican Bob Dold was in Congress, he voted to award the company referenced in the ad with a sweetheart land deal even after it was revealed that it would benefit Iran.”
From their background material…
Congressman Dold Voted to Protect Oil Companies that Violate Iran and Syrian Sanctions. On July 25, 2012, House Republicans voted against a plan to prohibit companies who conduct business with Iran or Syria in violation of U.S. sanctions from receiving drilling leases. [HR 6082, Vote #510,7/25/12]
Congressman Dold Voted to Protect Mining Companies Doing Business with Iran. On July 12, 2012, House Republicans voted against a plan to prohibit companies from receiving mineral exploration permits if they have violated the sanctions imposed against Iran, or if Iran holds an ownership interest in the company. The measure was offered Congresswoman Louise Slaughter. [HR 4402, Vote #467, 7/12/12]
Congressman Dold Voted Against Stopping American Companies from Conducting Business With Iran. On November 3, 2011, House Republicans voted against a measure “that would have stopped Americans from doing business with any person who directly or indirectly is doing business with Iran.” [HR 2930, Vote #824, 11/3/11; Washington Jewish Week, 11/4/11]
House Republicans Voted To Reward a Company That Helps Iran Mine The Fuel it Needs for its Nuclear Efforts. On October 26, 2011, House Republicans voted to allow Resolution Copper to swap land with the federal government, effectively clearing the way for development of North America’s largest copper mine. Resolution Copper is a subsidiary of Rio Tinto. RioTinto, one of the world’s largest mining companies, has partnered with Iran on a uranium mining operation in Nambia. The mine accounts for 7 percent of the global supply of uranium. Rio Tinto continued its partnership with Iran, in spite of United Nations ruling barring the country from investing in mines of the fuel. Iran owned its stake in the mine through the Iran Foreign Investment Company. [HR 1904, Vote #808, 10/26/11; The Hill, 10/26/11; The Arizona Republic, 10/26/11; Resolution Copper’s Website, accessed10/26/11; Bloomberg, 10/27/10; see also: JTA, 10/26/11]
House Republicans Voted to Protect a 20 Percent Tax Break for Companies Violating Iranian Trade Sanctions. In April 2012, House Republicans voted against a motion to recommit that would have eliminated a 20 percent income tax cut for companies that violate U.S. trade sanctions against Iran. The motion failed 179-229. [HR 9, Vote #176, 4/19/12; Washington Post, 4/22/12]
[ *** End Of Update *** ]
* From the NRCC…
“Brad Schneider has been trying to hide his family’s income because they invest in companies that are dangerous to America. We now know Brad invests in companies that send jobs to China and uranium companies that do business with Iran. It’s clear we can’t trust Brad Schneider’s judgment.” – Katie Prill, NRCC Spokeswoman
* The NRCC’s new ad…
* Script…
ANNCR: What is Brad Schneider hiding?
Schneider still won’t release all of his tax returns.
And news reports say that Schneider has abruptly changed his filing status to keep some of his family’s income secret.
Now official documents reveal Schneider’s family invested thousands in companies that outsource jobs to China.
Schneider’s family even invested in a uranium mining company that did business with Iran.
We just can’t trust Brad Schneider.
The National Republican Congressional Committee is responsible for the content of this advertising.
Oy.
Do you think people actually believe this stuff?
* Meanwhile, the NRCC is running a new spot on St. Louis TV…
Bill Enyart went to Washington and voted with Nancy Pelosi 90% of the time instead of fighting for Southern Illinois. We can’t trust Enyart when he votes to protect his first class travel and special congressional health care perks all while voting for more government spending. We need Mike Bost who will make a difference in Congress and fight for Southern Illinois families and jobs.” – Katie Prill, NRCC Spokeswoman
* The ad…
* Script…
ANNCR: Bill Enyart is part of the problem in Washington.
He’s voted with his party almost 90%.
Enyart voted to raise the debt ceiling 3 times.
To reward himself, he voted to keep first class airfare and special health care perks for Congress.
Bill Enyart, another politician wasting our tax dollars helping himself.
Mike Bost is different. He’ll fight for us in Washington. Mike Bost for jobs.
The National Republican Congressional Committee is responsible for the content of this advertising.
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Poll: Quinn over Rauner 44-40
Tuesday, Oct 7, 2014 - Posted by Rich Miller
* A new We Ask America poll conducted for Reboot Illinois has Gov. Quinn leading Bruce Rauner by four points, with Libertarian candidate Chad Grimm scoring 6 points. Quinn’s 44-40 lead is outside the margin of error for the first time in a WAA poll and the governor appears to finally be shoring up his base, while Rauner may have some weakness developing Downstate…
Perhaps the biggest piece of good news for Quinn is the 62-14 lead he registered among respondents in the city of Chicago. That’s a 4-percentage-point bigger lead in Chicago than Quinn registered in the Sept. 2 Reboot Illinois poll. Among respondents in Chicago in the three earlier Reboot Illinois polls, Quinn led Rauner 65-18, 59-18 and 62-18.
In the Cook County suburbs, Quinn polled slightly ahead of Rauner — 44.5 percent to 43.9 percent — in the Sept. 2 survey. Quinn scored a huge increase in suburban Cook in the new poll, finishing ahead of Rauner by 27 percentage points, 58-31. […]
The new poll also is the first for Reboot Illinois in which Quinn leads among women voters. After trailing Rauner by 4, 7 and 5 percentage points, respectively, in three previous Reboot Illinois polls, Quinn finished ahead among women this time, 44-36.
While Rauner continued to lead among downstate respondents, his 47-32 lead in this poll is considerably smaller than in any of the previous Reboot Illinois polls. There was comparatively little change in the collar counties, where Rauner led 54-36 in the new poll. In the previous poll, on Sept. 2, Rauner led in the collar counties by 25 percentage points, 57-32.
Discuss.
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* From the Bruce Rauner campaign…
Bruce Rauner’s campaign today launched a new ad taking aim at Gov. Pat Quinn’s record of kids dying while in the custody of his Department of Child and Family Services.
“They were just children, our most vulnerable with their whole lives ahead – lives cut short tragically, senselessly from abuse, neglect while in the care of Pat Quinn’s administration,” the ad titled “Just Children” begins. “Incompetence or corruption? It doesn’t matter. Pat Quinn failed those who needed him most – and now he wants four more years.”
According to multiple media reports, the number of DCFS-involved children who have died due to abuse or neglect has spiked sharply under Pat Quinn – 15 in 2010, 34 in 2011 and 2012, and 27 in 2013 with five more under investigation.
Under Pat Quinn, DCFS funding has been cut by $115 million since Fiscal Year 2010. Meanwhile, Quinn’s DCFS has been repeatedly plagued by cronyism and corruption. Most famously, George E. Smith looted millions from DCFS using his relationship with then-Director Erwin McEwen. Smith allegedly used $100,000 for sports tickets. Rather than fire McEwen, Quinn allowed him to resign.
“There’s a real human cost to Pat Quinn’s cronyism and corruption,” Rauner campaign spokesperson Mike Schrimpf said. “If we had a governor who cared more about people than politics, maybe some of these kids would still be alive.”
Whew. Essentially calling the governor a “baby killer” and it’s only October 7th. I’m expecting a strong Quinn response to this. Stay tuned.
* Rate it…
*** UPDATE *** From the governor’s spokesperson…
This is a false and malicious attempt to smear the Governor.
Bruce Rauner is well aware that the Department of Children and Family Services is an agency that intervenes in emergency life and death situations to save children who are most at risk for abuse and neglect.
To imply the Governor is somehow responsible for the deaths of children in the horrific circumstances that this agency enters into while trying to save lives is despicable and a new low.
The cynical irony of Bruce Rauner’s false ad is that it’s his budget plan that would cut deny DCFS the resources necessary to fulfill its vital mission.
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“Hardball”
Tuesday, Oct 7, 2014 - Posted by Rich Miller
* Let’s revisit the Sun-Times story from below about a lawsuit alleging, among other things, that Bruce Rauner had threatened a CEO of one of his companies to prevent her from filing a suit…
Kirk alleged in the lawsuit that Rauner threatened her personally and through a LeapSource board member — a claim she made in a sworn deposition. That former LeapSource board member confirmed in a deposition that “threatening things…were said to her” and that he had been involved in some of those conversations. Rauner denied the allegations through a spokesman.
The lawsuit alleged that Rauner told Kirk in February 2001: “If you go legal on us, we’ll hurt you and your family.”
Kirk also alleged that Rauner, wary of a her possibly suing, relayed a similar threat to her a few days earlier through another board member, Thomas Gilman, a consultant and ex-top executive at Chrysler Financial.
“I will bury her,” Rauner is alleged to have told Gilman.
“I will make her radioactive,” Rauner allegedly told Gilman, according to the complaint. “She will never get another job anywhere, ever. I will bankrupt her with legal fees. I don’t know if she has a family or not, but if she does, she better think twice about this.”
* This is from Carol Marin’s NBC 5 version of the story...
In her sworn deposition Kirk alleged she was also warned by a colleague saying, “Bruce had threatened” her and would make her “radioactive.”
That colleague was Thomas Gilman, another plaintiff along with Kirk in the lawsuit, who sat on the Board of LeapSource and is a former CEO of DaimlerChrysler Financial Services Americas.
Gilman said Kirk was concerned about the behavior of GTCR and the threatening things that were said to her.
“Were you involved in any conversation where threatening things were said to Ms. Kirk?” Gilman was asked in his deposition. His answer was “yes.”
The Rauner campaign responding to questions posed by NBC 5 and the Chicago Sun-Times strenuously denied ever threatening Kirk, her family or her livelihood.
Federal District Judge Robert Broomfield later dismissed almost all of the counts of Kirk’s lawsuit saying there was no breach of fiduciary responsibility by GTCR, but the judge’s ruling did not address the alleged threats.
Judge Broomfield wrote Rauner’s GTCR: “chose to ‘play hard ball,’ adding “undoubtedly it would have been preferable to plaintiffs if defendants (GTCR) had comported themselves with an [a]spirational ideal of good corporate governance practices … that go beyond the minimal legal requirements of corporate law.”
Discuss.
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* My phone rang Sunday morning. It was a good friend of mine, but I had been out late in St. Louis the night before, so I let his call go to voicemail. We talked later in the day. He said a pollster had called his house at 10 o’clock that morning and asked to speak with the female voter. His wife took the phone. She was asked something about a gun and a woman and Bruce Rauner and she couldn’t really remember what else. Did I know what was going on?
I said I didn’t. Maybe it was the Republican Party stuff with the Libertarians? I didn’t know. I also found it very weird that a pollster was calling on a Sunday morning. That never happens. Not only that, but my friend’s wife is a “hard” Republican, and the poll was full of push questions against Bruce Rauner.
So, I filed it away and figured I’d find out what was up sooner or later.
* Last night, my friend texted me that the Sun-Times had the story which was outlined in the poll. Not long after, I asked for and obtained audio of the poll from a GOP source. Here’s the question…
CALLER: Okay. These’ll be like the last three questions. So Bruce Rauner, I’m just going to read another one, Bruce Rauner lacks the character and temperament to be governor. He won’t be a governor we can trust.
He allegedly threatened to quote bury unquote a woman CEO he hired telling her quote we’ll hurt you and your family endquote. At the same firm, Rauner let threats and violence against women occur without speaking up. When told that the male executive repeatedly threatened coworkers with a gun, physically struck a secretary, Rauner said addressing it was not a high priority, was more concerned with turning a profit than the wellbeing of his employees.
* Raw audio…
* If you listen to the full thing, you’ll hear the respondent ask the pollster a question…
PERSON: Oh, and one last thing.
CALLER: Mhm.
PERSON: Where were you calling from? I didn’t catch it in the beginning.
CALLER: We’re doing an interview down here in California.
PERSON: Oh wow, alright, cool. With what company?
CALLER: Mhm. ADG Research Group company. American Directions.
ADG is a Democratic outfit.
For the record, the Quinn campaign denies that it did the poll, but there are plenty of other Democratic organizations playing in this pond.
* And then, almost like magic, we got the Sun-Times story…
Kirk also alleged that Rauner, wary of her possibly suing, relayed a similar threat to her a few days earlier through another board member, Thomas Gilman, a consultant and ex-top executive at Chrysler Financial.
“I will bury her,” Rauner is alleged to have told Gilman. […]
Shortly before her firing, Kirk recorded a board meeting in February 2001, where discussion about the company’s precarious finances was sidetracked after she brought to the board’s attentions allegations that a LeapSource manager routinely brought a gun to work in his car, had a violent temper and had threatened to “take someone out” at work, according to a transcript in the court record.
Kirk also alleged the same employee, Matt Appel, wound up striking his secretary, causing her to quit, and posed “some big risks” to GTCR “from a litigation perspective,” the transcript shows. […]
Rauner expressed sympathy for the former secretary but also suggested LeapSource’s precarious financial condition trumped concerns about the manager and any liability related to the secretary being struck.
“In a normal operating company, there would be certainly channels on how to deal with that and no company and no civil person would want to have anything to do with an employee like that,” Rauner said at one point, according to the transcript. “The flip side is, we as a board … are you know, debating issues of whether LeapSource has its lights on on Monday. I mean, and so, you know, whether the secretary sues or not, you know, pales by comparison.”
There’s a whole lot more, so go read the whole thing.
* But the Rauner campaign pushed back hard against the story last night…
THE LEAPSOURCE LITIGATION WAS WITHOUT MERIT AND SUMMARILY DISMISSED BY A JUDGE
The Lawsuit Was Dismissed By A Federal Judge On Summary Judgment. “IT IS ORDERED that the motion for summary judgment by defendants GTCR Golder Rauner, L.L.C., GTCR Fund VI, L.P., GTCR VI Executive Fund, L.P., GTCR Associates VI, Joseph P. Nolan, Bruce V. Rauner, Daniel David A. Donnini and Philip A. Canfield (doc. 347) is GRANTED in part and DENIED in part, as hereinafter ordered.” (Order on Motion for Summary Judgment, Diane Mann, as Trustee for the Estate of LeapSource, Inc., et al., v. GTCR Golder Rauner, L.L.C. et al., U.S. District Court for Arizona, No. CIV-02-2099-PHX-RCB, 3/30/07, p. 73)
IN HER SWORN DEPOSITION, CHRISTINE KIRK DIRECTLY CONTRADICTS HER CLAIM THAT RAUNER THREATENED HER
Christine Kirk’s Complaint Alleges That, After She Was Fired As Leapsource’s CEO, Rauner Spoke To Her On The Phone And Said “If You Go Legal On Us…We’ll Hurt You And Your Family.” “During the board meeting, Rauner told Kirk to call him the next day to discuss her severance. When Rauner spoke with Kirk the next day, he threatened Kirk in a booming voice, ‘If you go legal on us [by filing a shareholder suit], we’ll hurt you and your family.’” (Plaintiff’s Fourth Amended Complaint, Diane Mann, as Trustee for the Estate of LeapSource, Inc., et al., v. GTCR Golder Rauner, L.L.C. et al., U.S. District Court for Arizona, No. CIV-02-2099-PHX-RCB, 6/14/04, p. 68)
In Her Sworn Deposition, Kirk Says The Phone Call She Referenced In Her Complaint Was “Entirely Professional.” ATTORNEY: “What did you say to Mr. Rauner and what did he say to you during that call?” CHRISTINE KIRK: “That — I said, ‘Bruce, you said to call you about my severance,’ and he said that I needed to work with Joe, that I had loans outstanding, and I needed to work with Joe on resolving those loans and the severance.” ATTORNEY: “Did he say anything else during that call?” KIRK: “Not that I recall.” ATTORNEY: “What did you say to him?” KIRK: “I told him I would do that.” ATTORNEY: “Was that call entirely professional?” … KIRK: “Yes, I believe so.” (Christine Kirk Deposition, 6/8/05, p. 999-1000)
CHRISTINE KIRK DID NOT COLLECT A PENNY IN DAMAGES
GTCR’s Settlement Agreement Explicitly States That The Settlement Payment Was For The Plaintiffs’ Out-Of-Pocket Legal Expenses – The Plaintiffs Did Not Collect A Single Penny In Damages. “The Defendants will pay $511,000.00 to settle the GTCR Litigation; the Settlement Agreement expressly provides that the GTCR/K&E Settlement Payment is being made by GTCR and K&E for the express purpose of reimbursing certain out-of-pocket expenses incurred by the Plaintiffs and by their counsel.” (Motion of Trustee and Plaintiffs to Approve Settlement with GTCR Defendants, Kirkland & Ellis, and Makings Defendants, In re: Leapsource Inc, U.S. Bankruptcy Court – District of Arizona, Case No. B 01-09020 PHX JMM, 8/12/08, p. 11)
WHEN ALLEGATIONS OF LEAPSOURCE EMPLOYEE MISCONDUCT SURFACED, RAUNER IMMEDIATELY ORDERED AN INVESTIGATION
During The February 27, 2001 LeapSource Board Meeting, Christine Kirk Accused An Employee Of Hitting His Secretary. CHRISTINE KIRK: “That’s right Dan that’s what I said. I think then I need to talk to Mike about, you know, the information we found and, you know, we get…what the lawyer just told us is that we have some big risks from a litigation perspective. The guy is at this point physically threatening people. We’re not talking about verbally assaulting them. I’m talking about he’s threatening to physically assault people.” RAUNER: “Did he hit anybody?” KIRK: “No. but he told people he’s a gun in his car, he’s told people he wants to take people out. Um he physically abused his secretary.” RAUNER: “He physically abused…what did he do?” KIRK: “He hit her.” RAUNER: “Oh, so he did hit somebody.” KIRK: “I mean…there’s…” RAUNER: “Is she still at the company?” KIRK: “No, she walked out.” (LeapSource Board Meeting, 2/27/01, p. 9)
Rauner Directed Kirk To Tell The Company’s New CEO, And That An Investigation Be Carried Out. DAN YIH: “Then aren’t we saying that Mike should review this?” KIRK: “Yeah, and that’s why I said I will go over it with Mike.” RAUNER: “That’s fair, I think it’s good….would be good if you did talk to Mike about it.” (LeapSource Board Meeting, 2/27/01, p. 9-10)
Rauner Clearly Denounced The Alleged Assault, Saying “No Company And No Civil Person Would Want To Have Anything To Do With That.” RAUNER: “Um…Chris in a normal operating company there would be certainly channels on how to deal with that and no company and no civil person would want to have anything to do with an employee like that.” (LeapSource Board Meeting, 2/27/01, p. 10)
The complete deposition referenced above is here.
* While many of the allegations in the Sun-Times story appear to be bogus or directly contradicted by other evidence, particularly since they were tossed by a judge, if Rauner loses the spin war on this thing he may very well be toast. Done. Put a fork in him. Ergo, the vigorous pushback.
* But there is one quote that stuck out for me. From a 2005 deposition taken from Bruce Rauner, with emphasis added for obvious reasons…
“That hard thing is getting customers; the hard thing is cutting expenses; the hard thing is laying people off. But that’s what good companies do when times are tough, and she just would not do it,” said Rauner, who sat on LeapSource’s board.
Hey, that really is the difficult truth about business, but people aren’t gonna want to hear it.
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