Wednesday May 2 - Report II Day? - Faughn Claims Cash Was His - Greitens PFD and more...

TMC Report Day

It’s expected that the House Special Investigative Committee will issue its second report today.  This one will present the evidence about how the Greitens campaign came to possess the donor list from the governor’s former nonprofit, The Mission Continues.

Some have speculated that this report won’t be impactful because it won’t contain ugly personal details like the first report.  Others think it could be more damning if it shows undeniably that a crime occurred.

If they do a release similar to last report, look for it to come out late afternoon.

What’s Next?

There are several other lines of investigations still open.  So the question is: will the Committee continue to pursue those, or will it move to begin writing articles of impeachment?


Faughn: It Was My Money

KMOX’s Mark Reardon reported that Scott Faughn claims that the $50K he delivered to Al Watkins was his own money.  Reardon also said he doesn’t believe Faughn.  Likewise, 0% of the people I spoke to in the building yesterday believe it was Faughn’s personal money.

CaseNet shows various tax liens associated with Faughn, one personal and about ten related to The Missouri Times.  It’s just not the profile of someone with $50K laying around.


Post-Dispatch reports that [a]s recently as Friday, Faughn appeared on ‘Reardon's Roundtable’ on KMOX, participating in discussion about the two $50,000 payments made to Watkins by then-unknown sources, and continuing his criticism of the governor. Faughn didn't mention that he was responsible for delivering one of them…

"A basic standard of journalism is that you do not participate in the events — the issues — in which you are covering," said Phill Brooks, an associate professor emeritus at the Missouri School of Journalism who has covered the state Capitol for KMOX Radio since 1970.

He said the fact that Faughn delivered $50,000 to Watkins — whatever the motive — is "as serious an ethical violation as you can find in American journalism."

"This is a member of our Capitol news association who is engaged in funneling money to an agent involved in trying to oust the governor of the state of Missouri," Brooks said…


Second Bagman

Speculation about the identity of the second $50K delivery-person continues.  Al Watkins has said he was named “Skyler.”  Some are wondering if it could be a former Brunner staffer, Skyler Roundtree.  We’ll see….


Morris Family Pharm Bankruptcy Filing

Springfield Business Journal reports that Rep. Lynn Morris’ Family Pharmacy Inc has filed for bankruptcy.  See it here.

Pull Quote: Morris, who’s also a Missouri state representative, could not be reached for comment by deadline. On his personal Facebook page, Morris yesterday indicated he and his wife Janet retired from Family Pharmacy.

In the initial petition filed yesterday, Family Pharmacy listed estimated liabilities of $10 million to $50 million, the same as estimated assets. Court documents show Family Pharmacy posted net losses of $3.5 million in 2017 and $4 million in 2016 following profits of $686,000 in 2015. Gross revenue dipped to $60.3 million in 2017 from $66.8 million in 2016 and $68.3 million in 2015… Officials also cited increased competition from national pharmacy chains, downward pricing pressure from insurance providers and carriers, cash flow issues, and “the debtors’ failure to adapt and adjust their business model, overhead and expenses quickly enough to remain profitable,” according to court documents.


One lobbyist mentions that Morris, in hearings, has blamed prescription benefit management companies for his troubles, and has pushed for changes in the law accordingly – SB 826 is a vehicle.  But it’s nearly impossible to reverse the macroeconomic trends, and greater larger competitive environment.


Greitens PFD

KCStar reports on Governor Eric Greitens’ personal disclosure form.  It covers 2017, so there’s no reporting of any “legal gifts” he may have received this year.  See it here.

Pull Quote: The lion’s share of the cost of Greitens’ 2017 travel included on his personal financial disclosure is picked up by Herzog Contracting Corp… Herzog’s company paid for the governor to travel to Las Vegas for a Republican Jewish Coalition conference in February 2017; to the American Enterprise Institute World forum in Georgia in March 2017; to a Republican Governor’s Association event in New Jersey in October 2017; and to Des Moines, Iowa, the same month to attend a campaign kickoff event for Iowa Gov. Kim Reynolds… St. Louis-based Drury Development Corp. paid $3,800 for Greitens’ trip to Washington, D.C., for President Donald Trump’s inauguration.

Taking these gift seems to violate the spirit of Greitens’ first executive order banning gifts from lobbyists… No state employee of the executive branch shall knowingly solicit or accept any gift from a lobbyist… No state employee of the executive branch shall participate in a proceeding or decision in which the state employee's impartiality might be reasonably questioned due to the state employee's personal or financial relationship with a participant in the proceeding.

Herzog Contracting has millions of dollars and state contracts and while Drury isn’t a “lobbyist” itself, its parent company Drury Hotel is lobbyist principal, employing a lobbyist.


Also from the Star article: The governor’s new disclosure form does not list any real estate holdings, but it does list a company called J&J Escape LLC under the governor’s business holdings.

The company was incorporated on Jan. 17, 2017 — a week after Greitens was inaugurated — and Greitens’ name appears nowhere on the articles of organization that were filed with the Missouri secretary of state’s office.

But the governor is listed as the manager of the company for a deed of trust signed a month later after the purchase of a lakefront property in Innsbrook.

Among the reasons people use LLCs to buy real estate are to reduce liability and maintain privacy.


Follow-Up on Michael G Adams

MOScouter writes:“the attorney general or a local prosecuting attorney would have concurrent jurisdiction to pursue civil or criminal actions relating to the unlawful practice of law… Another ball back in Hawley or M. Richardson's court…”



CNN says that the White House is asking around about possible Greitens scandal contagion.  See it here.


New Committees

Marissa Brown formed a candidate committee (Citizens To Elect Marissa Brown) to run for House 76 as a Democrat.

Dennis Lee Chilton formed an exemption committee to run for House 135 as a Republican.

Janet Burlingame formed a candidate committee to run for Cass County Clerk as a Democrat.


Today’s Events

St. Louis Happy Hour with Hillary Shields (Dem, Senate 8) at The Fountain on Locust, St. Louis – 4PM.


Lobbyists Registrations

Sarah Schlemeier added Coalition Of Service Providers Of St. Charles County.

Brian Treece and Mary Timothy Phillips deleted Preferred Family Healthcare.

Andrea Young deleted Port Authority of Kansas City.

James Farnsworth deleted University of Missouri Office of General Counsel.


$5K+ Contributions

Civic Progress Action Committee - $7,500 from RGA Reinsurance Company.

Find The Cures - $10,000 from Bradley Bradshaw.

Friends of the St Louis Zoo - $100,000 from Saint Louis Zoo Association.

Civic Progress Action Committee - $13,000 from Express Scripts Inc.



Happy birthdays to Scott Dieckhaus, Jac Cardetti, and David Smith.