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Bad news for Giannoulias

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While parents come to grips with major investment losses in a college savings program, public records show that Illinois Treasurer Alexi Giannoulias’ office spent Bright Start proceeds to buy a $26,000 SUV he uses as his state car.

The purchase is surfacing as the politically ambitious Giannoulias continues to face criticism for his oversight of the Bright Start investment program, which lost $85 million last year.

The details aren’t as horrific as the lede makes them out to be. The car wasn’t paid for with Bright Start profits, but with a fee paid by the investment manager’s firm. Still, not good.

The treasurer’s office claims that staff also use the car…

But Burnham could not provide a breakdown of how often that particular Ford Escape is used for Bright Start-related purposes and said no log is kept of how that car is used or for what reasons.

Again. Not good.

* Meanwhile, Drudge linked to this video last week with an ominous headline about potential US Senate candidate Congresswoman Schakowsky claiming that the “public option” for health insurance would put private insurers out of business. See it for yourself…

* Related…

* ADDED: Vallas says County Board presidency decision weeks away: Vallas has been exploring a Republican run for the County Board presidency since February and had expected to make a decision in mid-June. But now, he said, he has sped up his timetable because “there are other people that are trying to make decisions about what they want to do next and they’re at least a couple of people waiting to see what I will do.”

* Giannoulias chief of staff gearing up to replace treasurer if he wins Senate nod

* Jesse Jackson Jr Speaks About Ethics Probe: “One fact will never change, whatever the outcome…I offered the former governor nothing and the former governor offered me nothing,” Jackson said.

* Meeks may take crusade to gov’s race

* Schoenburg: Who will be on the ballot in 2010?

posted by Rich Miller
Monday, May 4, 09 @ 9:13 am

Comments

JJJ statement is interesting, it appears to be craftily worded…

“… I offered the former governor nothing…”

Ahh but notice he does not say that no agent or person on his behalf offered anything. Only the he personnal did not do it.

“… and the former governor offered me nothing…”

Once again, he had no discussions with the Gov personaly about this, so no offer directly to jackson. Lacking is a denial that represenatives of the Governor had not been nengotiating with represenaties for jackson to exchange fundraising for the appointment.

Comment by Ghost Monday, May 4, 09 @ 9:21 am
a $26,000 car? Seems pretty cheap.

Comment by frustrated GOP Monday, May 4, 09 @ 9:26 am
Just for fun, who do you think tipped the Trib to the SUV?

What a bonehead move by the treasurer. The $26 grand on the wheels will outrage people more than the $85 million loss. It’s just human nature.

Here’s something new to me:

“Burnham said it is Giannoulias’ discretion how operating money for the office’s various funds are spent. He noted that the money for the SUV didn’t come from parents’ investments, but from a fee the firm that handles the investments pays to the treasurer’s office to offset the cost of running the program.”

I don’t agree with Burnham’s statement that it’s not taxpaper’s money, but the funds are paying the treasurer? Why? The treasurer has discretion on how that’s spent? What’s the definition of slush fund?

For the sake of his own political future, the treasurer better let it all hang out now if there have been any other “discretionary expenditures,” because reporters will be looking for them, starting this morning.

Comment by wordslinger Monday, May 4, 09 @ 9:29 am
Giannoulias now has a perception problem with this vehicle whether he can explain it or not. Appearance of impropriety is everything. He’s got some ’splainin’ to do - this hurts him.

As far as Schakowski is concerned I am glad she is plain and clear on her position. I wonder if she could be so clear when she tries to explain how this plan is going to be paid for. Single party payor systems will work only if you engage in rationing - look at any other country that uses it and you will see. We currently have a form of rationing that doesn’t work very well but why replace it with one that also doesn’t work well. When people say to me, “well, medicare works”, I have to remind them that it works only because there are large numbers of people who are paying into medicare but not benefitting from it (people under 60 y/o). Without us younger folk paying into medicare it would collapse. What happens when us “boomers” are fully retired (if that can really happen now) and a smaller group of younger people are trying to support it what will happen then?

I would like to see a critical analysis of the health care system that really looks at what we have, what we need, and how to get there. Deciding on a way to pay for health care based on your political agenda rather than the realities on the ground is a recipe for failure. Those countries that use single party payor systems are looking at a financial meltdown in the next decade or so due to declining revenues.

Comment by DuPage Dan Monday, May 4, 09 @ 9:32 am
I’ve been critical of this blog in the past for some of the positive things said about young boy wonder, the trip to greece, ect, so it’s good-not that I believed there was bias-to see both sides of his record aired.

This looks like a Kirk campaign commercial ready to air.

Comment by Shore Monday, May 4, 09 @ 9:35 am
Shore, what you’ve done in the past is overreacted based on your obvious love for Kirk.

Comment by Rich Miller Monday, May 4, 09 @ 9:36 am
== What a bonehead move by the treasurer. ==

Stuff like this goes on all the time in Illinois. You don’t have to look very far to be aghast. Now whether or not the media picks up on it and WHY they pick up on it is another story.

The big question is…is the machine starting to turn on Giannoulias?

Comment by Leroy Monday, May 4, 09 @ 9:39 am
Much ado about nothing. Alexi will beat the felon’s wife and run over Captain Kirk. If this is all Madigan’s got on Alexi then BEAM ME UP SCOTTY!

Comment by Watcher Monday, May 4, 09 @ 9:41 am
An independent candidacy by Meeks would throw a real monkey wrench into the Democratic chances to retain control of the Governor’s mansion.

Comment by Captain America Monday, May 4, 09 @ 9:43 am
Yes, Watcher. Alexi’s consulting staff deserves kudos for their unique media strategy. While the purchase of an hybrid SUV with “non-taxpayer” dollars may seem like a negative story to the gullible press, to out-of-the-box thinkers it simply highlights the fact that he is the only real green candidate in the upcoming primary.

Or not . . .

Comment by Narcoleptic Monday, May 4, 09 @ 9:46 am
Burris has his Taj Rolando tomb, and Giannoulais now has his Ford Escape…

In both cases we have an easy visual representing something much larger and uglier for both men. Burris claims he is a humble man, but his tomb says otherwise. Giannoulais claims he is a smart and experienced honest public servant, but his SUV says that Giannoulais makes stupid mistakes and is comfortable accepting a SUV, without thinking that it was towing a multi-million dollar loss for Illinois’ children.

I’m certain that both guys are really nice. But Illinois is full of nice people who can do a better job in the US Senate than these two. We are supposed to choose our best to serve us. Many ask to serve, but few are chosen. Roland and Alexi might need us to attain their political power dreams, but we don’t need them. Sorry, that’s the deal, and they knew it going in.

Comment by VanillaMan Monday, May 4, 09 @ 9:54 am
SUV? What SUV? Any concerns will abruptly disappear with the liberal application of some Obama pixie dust as things get going.

Watcher- it’s “Commander” Kirk, not Captain. Have a little respect for a veteran, OK?

Comment by Team America Monday, May 4, 09 @ 10:03 am
Meeks is all talk, no action. Wasn’t he going to mount a primary challenge to Blago back in 2006?

Comment by Ravenswood Right Winger Monday, May 4, 09 @ 10:05 am
Maybe/maybe not
Alexi is the latest Illinois golden boy.It took almost two weeks for the MSM media to even mention the story. Perhaps they are hearing from angry parents whose calls are not being taken by Alexi’s office.

Comment by Hank Monday, May 4, 09 @ 10:20 am
How would a Meeks or other prominant African American in the dem primary effect polling in Chicago for Governor?

Comment by Phineas J. Whoopee Monday, May 4, 09 @ 10:34 am
So, there is a fund that is supposed to be used for operations, and the Treasurer’s office uses it for an operations expense. What’s the story here?

I mean, if the press is really worried about misuse of funds, shouldn’t we be looking into how state wides are using security details, drivers, and the state plane?

And as for Shore’s continuing critique of the “trip to Greece”, read all the news stories: it was a congressional delegation to Cyprus, Greece and Turkey. Cyprus is the second longest standing issue before the UN Security Council, and the Obama Administration’s first chance at a peace deal. Greece is a key player on the Cyprus issue and holds the Presidency of the OSCE, and veto power over Turkey’s accession to the EU. Never mind that an Illinois company (Boeing) is trying to get a major contract with Greece. Stop showing off your lack of knowledge on foreign policy.

Comment by John 3:16 Monday, May 4, 09 @ 10:37 am
The bonehead move is not the car but the PR response to the story. Giannoulias forced Oppenheimer to pay part of the state’s operating costs related to the BrightStart program. Previously the state (taxpayers) bore all the burden of this cost for, what was then, one of the worst programs in the country. Part of the state’s operation cost is promotion of the program and transport related to that promotion. Getting the fund manager to pay for this cost was actually a great positive for the office, but now has been turned into some sort of bad sounding scandal.

BTW even with the losses, Illinois program is still rated as one of the best 529 programs in the coutry. Giannoulias was actually towards the front of the pack of states who use Oppenheimer in stopping the credit swap investments, and, in doing so, stopped further losses that were suffered by states like Oregon. Should he have not allowed these investments in the program to begin with? Probably, but he is in the same boat with vitually every major municipality and all 50 states who allowed some public funds to be invested in this way. No one was complaining when these investments were returning 20% a year.

BTW, the 85 million loss number is old. The BrightStart funds have recovered somewhat and as the economy gets better they will continue to move up.

Comment by WhiskeyRebel Monday, May 4, 09 @ 10:41 am
I have often called Alexi the Mediteranean version of Blago and this story validates it…I do suspect that Madigan Sr. let this horsie out of the barn…ya gotta love those Madigans, always looking out for the good of all us Illinoians…

Comment by Anonymous45 Monday, May 4, 09 @ 11:06 am
I told you, Watcher; Whiskey Rebel has now revealed to us why this was ultimately a smart PR move on behalf of Alexi’s people. If Burnham had pointed everyone toward the Kitty Cat instead of the SUV and emphasized why the program needed and deserved that vehicle to make Bright Start even more successful, everyone would have clearly seen how sensible the purchase was.

In hindsight, Dukakis’ people missed their opportunity to highlight how putting him in a tank was meant to increase the sales of Kevlar helmets, thereby helping an American company.

Comment by Narcoleptic Monday, May 4, 09 @ 11:11 am
Because of the Alexi news, Rep. Schakowsky should run for the U.S. Senate. The candidates, for her U.S. House seat, should be St. Sen. Jeff Schoenberg and ex-St. Sen. Dave Sullivan.

Comment by ConservativeVeteran Monday, May 4, 09 @ 11:18 am
The SUV thing seems like small potatoes compared to some of the things that went on in that office under Topinka. Remember for example when the tv ads for some Treasurer office program would kick up right before election time, and then go away right after the election. Those were officially state ads, so paid for by program proceeds, but everyone knows it was all about getting Topinka’s name out pre-election.

State officials drive state cars. Where’s the story here, or is it just about the price?

I’m guessing Mark Kirk probably rides in some big black SUV that isn’t even a hybrid, at least in D.C. But I don’t know.

Comment by Putting in perspective Monday, May 4, 09 @ 11:44 am
I think a missing bit of info is where the money would have otherwise gone. If it goes into general operating expenses, that’s what he used it for. If it otherwise would have gone into the Brightstar account, he has a problem

Comment by steve schnorf Monday, May 4, 09 @ 11:51 am
I’m guessing Mark Kirk probably rides in some big black SUV that isn’t even a hybrid, at least in D.C. But I don’t know.

If he was puttering around in a Smart car, would you vote for him?

Comment by VanillaMan Monday, May 4, 09 @ 11:52 am
1. –The bonehead move is not the car but the PR response to the story.–

2. –The SUV thing seems like small potatoes compared to some of the things that went on in that office under Topinka.–

Sounds like the PR genetic coding left behind by RRB: 1) “somebody got the spin wrong on an otherwise righteous act!” and 2) “We’re not as bad as they were!”

Comment by Narcoleptic Monday, May 4, 09 @ 11:53 am
To putting in perspective. Kirk doesn’t ride in a big black government funded suv in Washington, he takes cabs. The late great senator fitzgerald used to get driven around in a big old ugly staffer truck in d.c. of one Andrew Heyerdahl.

Rich, I stand by my position that paying for a junket to greece doesn’t give Alexi national security bona fides anymore than riding in a tank made Michael Dukakis fit to be commander in chief.

Comment by Shore Monday, May 4, 09 @ 12:04 pm
What Alexi news? Are you people as obtuse as the Tribune? Shame on the Tribune for the headline and for insinuating that there was a misuse of funds.

I’m a financial advisor, and I can tell you that before Giannoulias’ overhaul of Bright Start, the ONLY reason to join that program was the tax advantage, and even given the tax benefits, we were directing Illinoisians to other states.

As John 3:16 noted above, he used an administrative fund for administrative expenses. Bright Start managers do travel around the state - how does one propose they get to where they are going?

One of my problems with Judy’s use of Bright Start administrative funds is that they were used primarily to promote her political career - remember the corny commercials, the “Merry Christmas” ads in all the ethnic newspapers all paid for by Bright Start? That is not what Giannoulias is doing here.

Treasurer Giannoulias - in my professional opinion - has taken great strides in making Bright Start a much, much better program and investment option. Having followed the actions of other states (including the Oregon lawsuit), and I can see how the Treasurer will recover what Oppenheimer irresponsibly and fraudulently lost.

Just don’t be lazy people. Sam Zell’s paper may be trying to increase profits with NY Post type headlines and formats, but let’s hold the press to telling the truth

Comment by Telling You How It Is Monday, May 4, 09 @ 12:06 pm
Once again, Shore, you’ve completely twisted my words.

But, it’s something I’ve come to expect from you.

Comment by Rich Miller Monday, May 4, 09 @ 12:06 pm
Let me get this straight. We pay an investment manager a fee to manage an investment account (Bright Start, or part of it). Then the investment manager pays us back a fee. Is that not the very definition of kick back? Something is wrong with that picture. Oh, and then we use that kick back money to buy a car.

Comment by Cheswick Monday, May 4, 09 @ 12:22 pm
I think the Alexi car issue can cause a problem for him short term even though I don’t think it should. In this environment these kinds of stories resonate with the public. One thing that doesn’t sit well with me is that, assuming the treasurer’s office explanation is correct, staff members are driving in a car with the official number six license plate on it. I thought those plates were only supposed to be used by actual office holders. I am not sure how the rules work (or if there are any) but if I were Alexi I wouldn’t allow any staffer to use that plate in the future. Maybe all of the Consitiutionals do that. But it could make him look bad if the staffer is speeding or in an accident or worse. Small point I know but still…

Comment by Cosmic Charlie Monday, May 4, 09 @ 12:26 pm
Why isn’t Alexi responding personally to these charges? Having a spokesperson respond keeps the story going. This is a small fire that is blowing out of proportion. Whoever his advisors are, they they should have Alexi get out in front of this story.

Comment by Tom Joad Monday, May 4, 09 @ 12:28 pm
–How it is–
Shame on the Tribune for the headline . . .

Can’t anyone silence the dolgarned Tribune? I bet it’s McCormick again. Bright Start got any potential Zell-related investments out there?

Comment by Narcoleptic Monday, May 4, 09 @ 12:41 pm
Well Cheswick ignored my plea to not be intellectually lazy.

Like in most 529 plans, Oppenheimer does not receive a fee out of Illinoisians’ taxes.

So, Bright Start is pretty much self funded. Management fees are charged (and disclosed), and Bright Start has among the lowest - if not THE lowest - in the country. Like in every other state (and as was the practice during Topinka’s tenure) fund managers contribute to an administrative fund to cover administrative and operational expenses that the Treasurer’s office incurs in relation to Bright Start.

And, by the way, these very low management fees are one of the major reasons many of us financial advisors started recommending Bright Start again and why Bright Start shot up in the rankings.

But who cares about the facts when you can score with half-baked headlines and cheap shots on a blog?

Comment by Telling You How It Is Monday, May 4, 09 @ 12:41 pm
As an unrepentant Democrat, I strogly urge Paul Vallas to run. Losing control of the Cook County Board Presidency is the only way to sen an effective message that everyone is fed up with the Demiocratic Party plutocrats that we are fed up with their couuption and abuse of power, and disgusted by their annnointment of Todd Stroger.

Comment by Captain America Monday, May 4, 09 @ 12:41 pm
Surely Senator Meeks knows how committee people gain their power. He may run (although I wouldn’t be a dime) but it won’t be as an Independent.

Comment by Redbright Monday, May 4, 09 @ 12:52 pm
Alex should get rid of that car right now. It’s not that expensive as cars go but the appearance of impropriety is striking.

And it’s not like he came from poverty and got blinded by a pretty bauble. He comes from wealth. Why does he even need a work car. What was he thinking?

And an SUV is so, well, retro these days.

I used to like Alexi but I’ve put him back in the maybe-probably not column.

Comment by Anonymous Monday, May 4, 09 @ 12:56 pm
Does it really matter which of the various state funds a staff car comes from? They are not utilizing consumer investment funds; I understand that this is a budgeted administrative expense. As long as the Treasurer is not also getting per diems for mileage for use of the state car, it does not matter to me that his car was financed from Bright Start. Isn’t a constitutional officer entitled to a state vehicle for public purposes? This is not akin to Blago using the state plane for private purposes because he refused to live in Springfield. Not that big of a deal in my opinion.

Comment by Jake from Bellwood Monday, May 4, 09 @ 1:14 pm
The Trib is way off base here. The Treasurer’s office got a private company that wanted to do business with the state to foot part of the bill for expenses that otherwise would ahve had to be paid for by citizens of the state. This should be good news, not bad news.

Comment by RFK fan Monday, May 4, 09 @ 1:31 pm
Hey Mr. Fi-nancial Ad-visor, let me tell you how it is. Old AA has at least as much education and experience in the business as any of you annuity pushers and I’m stunned that you would defend the sloppy due diligence on the part of the Treasurer.
Go read Greg Hinz’ blog at Crain’s if you’re not familiar with the details, and I’m guessing you aren’t. You’re also walkin’ waaaay out on a limb if you think Alexi is gonna get that $85 million back; as a securities professional, you should know that investors can only recover losses in the event of fraud, which will be tough to prove here.

WhiskeyRebel, your figures are about as accurate as a Filan budget. The Oppenheimer Bond Fund that blew up never made 20 percent, more like 10, and even if the market recovers, the $85 million in losses will be harder to get back, as investment genius Alexi ordered all new flows into the fund invested in short-term TSY in December. (That move alone probably gets Oppenheimer off the hook for liability, but what does AA know.)

Anyhoo, what’s this about a car?

Comment by Arthur Andersen Monday, May 4, 09 @ 1:37 pm
AA says it better than I ever could but I didn’t get this line from WhiskeyRebel either:

>

The article states that the fund lost $85 million last year. That’s still accurate, still relevant and still significant to the fund’s investors.

Even if the fund is recovering today, it does so from a vastly reduced base, thanks to last year’s loss of $85 million.

Comment by Zora Monday, May 4, 09 @ 1:56 pm
Something ate what I was trying to quote, which was this line:

“BTW, the 85 million loss number is old.”

Comment by Zora Monday, May 4, 09 @ 1:57 pm
oops AA you are right, I was mistaken. The Core Bond fund actually returned 29% in the 2 yrs leading up to fy08. Sorry for the mistake.

So, again, why exactly is Giannoulias’ use of administrative funds for administrative purposes a bad thing? Other than the fact that it allows the Trib to write a headline that makes it sound like Alexi was out using my kids college money to buy spinners on his new Caddy Escalade….

Comment by WhiskeyRebel Monday, May 4, 09 @ 2:11 pm
WR—

Because it’s sooooo….tacky.

Comment by Anonymous Monday, May 4, 09 @ 2:33 pm
Whiskey, you must be the same dude that did the figures for Alexi on his ILL-PERS pension plan. In other words, all wrong.

Mutual funds don’t usually measure performance by State fiscal year, but for the 1.5 years Bright Start held Core Bond in calendar 2007-2008, the performance was approx. 8%. (Source: Morningstar)No way, no how, any Core Bond Fund was making 29%.

BTW, haven’t heard much about that ILL-PERS ideer lately.

Oh, and which Scott are you, just so we know?

Comment by Arthur Andersen Monday, May 4, 09 @ 2:39 pm
Telling you how it is,

You conveniently ignore the basic facts. Forget the car. Alexi’s office pushed the core bond fund as a safe investment for those close to taking cash out. It was supposed to be the most secure investment and yet Alexi’s folks conveniently ignored the prospectus and other communications from Oppenheimer which clearly stated they could put up to 50% into mortgage backed securities. 50%!!!

Even when they were performing, their results on the plus side were well outside of benchmarks and Alexi’s office was warned of this early on and repeatedly. Instead of dealing with it, they stuck their heads in the sand and hoped it would be ok…with people college $$.

I know people who lost a lot in this supposedly safe investment. Alexi and all his people should be ashamed of themselves for seeking promotions when they failed in their most basic duty.

Comment by They failed but all want promotions Monday, May 4, 09 @ 2:42 pm
–WR Kennedy–

Those cheap 30-minute infomercials with Alexi sitting in the SUV, Dukakis’ helmet protruding from the sun roof, face-on close-up telling us how losing $85 million in Bright Start funds actually benefited Illinoisans is going to clarify this issue to everyone–especially those in Alexi’s camp.

Comment by Narcoleptic Monday, May 4, 09 @ 2:42 pm
So Oppenheimer charges a management fee to invest Bright Start Funds. But, they also “contribute” to the state some money for the state expenses related to Bright Start. This is the money spent on the SUV.
Are we to believe that this “contribution” of money to Illinois is due to shrewd negotiation from Alexi? If so, why didn’t he negotiate a lesser mgmt fee of the same amount for investors? More likely, Oppenheimer increased its management fee they charge Illinois to handle Bright Start money. I don’t think this money is given to Illinois out of the kindness of their heart. So the return is lessened to investors by the increased amount of the Oppenheimer fee. Thus, the investors did pay for the SUV after all, just in a round about, hard to follow,shell game, way.
Let’s really tell it like it is.

Comment by Tom Joad Monday, May 4, 09 @ 3:36 pm
Surprise, surprise…the half baked analysis continues courtesy of someone who takes his call name from a company indicted for lying and shredding documents.

You read the Hinz articles and think that makes you an expert in the facts of this case? Think again.

Try reading the Oregon law suit and the coverage of the situation in other states involved in the Oppenheimer “case”. And, if as was mentioned in the Laura Washington piece today they really are in settlement negotiations, there are plenty of more facts that will come out at the conclusion of those negotiations.

Once again, don’t be lazy. And if you’re so concerned about cars, find out who is travelling on the state dime for personal and political purposes.

Comment by Telling You How It Is Monday, May 4, 09 @ 3:54 pm
If that 29% core bond figure is true, then it beats me why anyone with a vague idea of normal investment grade returns wouldn’t have immediately questioned the fund’s allocation.

AA- you should be pointing out that the higher the return during the run-up, the dumber the treasurer’s office looks.

I know how my boss would react to that: “We’ll keep the return, but you’re fired for bs’ing the risk.”

Comment by Greg Monday, May 4, 09 @ 4:15 pm
Alexi’s getting pounded by Channel 5 up here. They make it sound like he lost $85 million in Vegas then turned around and bought an SUV “Bright Start money.”

Andy McKenna even gets a “It’s about judgement” bite.

Comment by wordslinger Monday, May 4, 09 @ 6:02 pm
pardon, “bought an SUV with Bright Start money.”

Comment by wordslinger Monday, May 4, 09 @ 6:08 pm
Telling, it’s ironic that an annuity pusher would throw around the word “lazy” as much as you do.

Speaking of irony, since it’s clearly your first day here, my blog handle was picked years ago in protest of the State’s Enron-like financial management. in other words, it’s a joke-get it?

I have read the OR lawsuit, front to back, along with quite a few clips from Bloomberg-you do have a Bloomberg terminal, dontcha? Interesting reading but not highly relevant to the question of whether or not the Treasurer of Illinois was properly exercising his fiduciary duty to the owners of shares in BrightStart funds. There is notable reluctance on the part of the Treasurer and staff to address these matters with the press; Hinz’ blog is the best example of that reluctance.

I’m certain as a pretty sharp eyed investment pro, you’ve also noticed that the Treasurer’s office has had problems when they do talk to the press keeping their story straight as to such basic questions as whether or not Illinois is participating in the settlement talks and, stunningly, exactly which Oppenheimer fund took the haircut.

Oh, and I could care less about the SUV.

Greg, I had the same thought about the 29%, but I think my folks would have sent me back to get the right numbers, because NFW should an intermediate core bond fund be kicking out that kind of return if managed according to guideline.

Bad year for Oppenheimer-they also own a hedge fund called Tremont, which basically did nothing except feed money to Bernie Madoff. $3.5 billion down the crapper.

Comment by Arthur Andersen Monday, May 4, 09 @ 7:17 pm
AA -

OR lawsuit is actually very relevant to the questions you raise. It alleges misrepresentation, fraud and failure to disclose. If that is what they did in OR, that was presumably how they dealt with Illinois and the four other states as well.

In any case, Giannoulias has up to this point run an office that by all accounts has been professional, ethical and efficient. If settlement talks are ongoing, it is unreasonable to expect him to disclose what may be the subject of those talks or possible litigation on Greg Hinz’s timeline.

Comment by John 3:16 Monday, May 4, 09 @ 10:13 pm
Telling, I don’t think much in the way of facts will come out of any settlement talks. Gag orders are routine as part of the settlement package.

Comment by Just Another Lawyer Monday, May 4, 09 @ 10:49 pm
John 3:16, I would generally agree with the conclusions you reached from reading the OR report. The positive steps and good efforts going on in other places can and should be going on in Illinois instead of going through another he said, she said. PS: Any visitors from Dearborn with shiny stars and big pistols yet?

Comment by Arthur Andersen Monday, May 4, 09 @ 11:49 pm
=================
If he was puttering around in a Smart car, would you vote for him?
=================

That’s a tough one, VMan. In Kirk’s case, however, I’d make an exception and ignore the car.

Comment by Anonymous Tuesday, May 5, 09 @ 12:41 am
I am a parent and outraged. I invested $5000 at the birth of each of our 6 grandchildren. Only a portion of that amount is now left in their accounts. The bottom line, it is the investors that purchased the car. It is the investors that pay the fee for the fund management. It just blows my mind that the treasurer has the audacity to link Bright Start with the state’s vehicle purchas in these economic times. I would not be outraged if the accounts were making 20%. I am outraged that they are losing money that I have invested for the education of my grandchildren.

Comment by Grandpa60 Tuesday, May 5, 09 @ 10:35 pm