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Key Player Not Denying Allegations Against Coleman
In the last few days, Norm Coleman, who's in a desperate fight to hold onto his U.S.
Senate in Minnesota, has had to answer questions about appearing in a suit filed against one of his supporters, a politically connected multimillionaire named Nasser Kazeminy.
Paul McKim alleges in the suit that last year Kazeminy used Deep Marine Technologies to funnel $75,000 to Coleman, a Republican, through the Hays Companies, an insurance brokerage that employs Coleman's wife, Laurie. McKim was formerly the CEO of Deep Marine, which Kazeminy owns.
The suit claims that Deep Marine last year sent money to Hays in three $25,000 installments. These payments, it alleges, were a way for Kazeminy to get money to Coleman, rather than payments for legitimate insurance services provided by Hays.
Of course, these are only allegations -- one reason we've been wary of rushing to judgment here. But it's worth noting that Hay's owner, Jim Hays, doesn't seem to be strongly denying the charges that his firm was involved in the alleged scheme.
The Minneapolis Star Tribune reported Friday:
Jim Hays, owner of the Hays Companies, could not be reached for comment. His attorney, Dan Walseth, said Hays Companies has "a fee arrangement with them [Deep Marine] ... to provide insurance advice with them. I don't want to go any further than that.
And later, the company issued a statement saying that it provides risk management consultation to Deep Marine Technology, and adding, "We stand by our reputation as leaders in our industry and will not engage in empty speculation that is clearly meant to interfere with the election."
If Hays really had performed legitimate services for Deep Marine, you'd expect its owner to simply declare that on the record.
Coleman, too, has yet to offer a detailed denial. At a press conference held Friday to address the issue, Coleman called the allegations "absolutely false" and "defamatory." But the centerpiece of his remarks was a counterclaim that the Al Franken campaign had conspired with the Star Tribune to embarrass Coleman by exposing the contents of the lawsuit.
And Kazeminy has not publicly commented on the allegations.
Coleman and Kazeminy have had a close working relationship. The Star Tribune reports that in 2005, Kazeminy had provided $2,870 in flights for the Colemans, according to Senate disclosure forms.
And as we noted at the time, last month Harpers reported:
I've been told by two sources that [local businessman and political contributor Nasser] Kazeminy has in the past covered the bills for Coleman's lavish clothing purchases at Nieman Marcus in Minneapolis. The sources were not certain of the dates of the purchases; if they were made before Coleman joined the Senate in 2003, he obviously would not be required to report it under senate rules. But having a private businessman pay for your clothing is never a good idea if you're a public official (Coleman was mayor of St. Paul from 1994 to 2002).
In response, Coleman did not directly address the charge, saying that no one other than he or his wife had bought his suits, and adding: "If my friends have shared gifts with me and my family - or I have shared gifts with them - if they rose to the level of having to be reported - they were reported."
So in the absence of exculpatory evidence -- or even a clear and detailed denial of the charges form the principals in the case -- it looks like the claims will continue to dog Coleman, until election day and beyond.
Late Update: The Hays Companies also released the following statement Friday, which again does not directly deny the charges at the center of Coleman's role in the lawsuit -- that Hays acted as a pass-through for Kazeminy to funnel money to Coleman:
Minneapolis -- We believe the allegations in the lawsuit referenced in a story in today's Star Tribune newspaper -- a lawsuit to which we are not a party -- are libelous and defamatory, and we intend to protect our name and our reputation vigorously with whatever means necessary.The allegations that we are not licensed to perform services in Texas are simply false, as are other allegations contained in this disreputable lawsuit that refers to Hays Companies.
Laurie Coleman, who is fully and legally licensed to sell insurance in Minnesota, has been an Independent Contractor for Hays Companies since 2006.
We are pleased with her work, and we find any allegations that she accepted money for work she was not responsible for to be outrageous and contemptible.
Laurie Coleman receives no compensation related to the services we provide for our client Deep Marine Technology.
In the first half of 2007, we were retained to provide our risk management consulting services, and that work continues at this time.













Coleman may pull this one out, but I suspect he will be in for a rough go in front of the ethics committee come January. I'd rather have him gone, but if he stays it will be very entertaining to see him get his butt kicked on all of this.
November 2, 2008 3:54 PM | Reply | Permalink
It would be so much simpler if Minnesotans just went ahead and elected Al Franken to the former Paul Wellstone Senate seat. That would be a good start and then the FBI and Justice Department could begin the investigation to assure the country whether federal laws were broken by Norm Coleman and his buddies. Alaska's Senator Stevens wants to serve even though he has been recently convicted. If Norm gets defeated, he would not have to go through the Senate Ethics Committee investigation and go straight to criminal proceedings. If he is innocent he could run for Governor when Tim Pawlenty hangs up his spurs soon or he could get a lucrative job with the offshore drilling company that supposedly funneled the money to his wife.
November 2, 2008 4:36 PM | Reply | Permalink
A suit about suits. I have never heard of a man giving another man a suit -- it doesn't make sense -- Coleman would have had to go in to be fitted. He can't use a Felonious Ted excuse; i.e., "he gave 'em to me but I didn't ask for 'em and I didn't want 'em." These people are almost hilarious in the breadth of their greed -- they've got the gimmes from the petty to the substantial.
November 2, 2008 4:49 PM | Reply | Permalink
Please call the lawsuit an "action," which is what it is referred to under the Federal Rules of Civil Procedure, and not a "suit," which is the fabricky object of the action.
Sorry, George Kay, Founder of Men's Wearhouse, but Norm Coleman is NOT going to like the way he looks. On the curb. On Wednesday.
November 2, 2008 5:18 PM | Reply | Permalink
And what the frack is it with Republicans and Neiman-Marcus clothing?
November 2, 2008 5:19 PM | Reply | Permalink
Sufficient information has not been aired to make a sound judgment one way or another but the following does raise a few question: "Laurie Coleman, who is fully and legally licensed to sell insurance in Minnesota, has been an Independent Contractor for Hays Companies since 2006." Yes, she is in the insurance industry but 2006 she signed up with Hays? This does not prove anything but it does raise a lot of issues!
November 2, 2008 6:16 PM | Reply | Permalink
George Galloway must be laughing his ass off...
November 2, 2008 6:22 PM | Reply | Permalink
It's nearly 6:00 in Mpls now, and at 7:00 CST, the three candidates will be debating each other at the Fitzgerald Theatre in St. Paul. I don't know if it will be on C-Span, but if you want to listen, Minnesota Public Radio, (MPR) will be streaming the audio, and will have the debate archived a few hours after it is over.
I would assume the moderator will ask this question, not only about the money his wife may have received, but also about who paid for the suits.
November 2, 2008 6:57 PM | Reply | Permalink
Full text of the complaint is available here:
http://minnesotaindependent.com/wp-content/uploads/2008/10/deepmarine.pdf
My favorite part is as follows:
These are very serious accusations.
November 2, 2008 8:38 PM | Reply | Permalink
"Well, to be accused of a lack of moral character by Senator Norm Coleman is a bit like being told to sit up straight by the hunchback of Notre Dame."
---George Galloway, MP
November 2, 2008 9:37 PM | Reply | Permalink
"Well, to be accused of a lack of moral character by Senator Norm Coleman is a bit like being told to sit up straight by the hunchback of Notre Dame."
---George Galloway, MP
November 2, 2008 9:39 PM | Reply | Permalink
It's perhaps worth noting that the Star-Tribune endorsed Coleman.
November 3, 2008 1:23 AM | Reply | Permalink
If she is an independent contractor she is not an employee. As an independent contractor, the company would just write her a check rather than take out taxes, etc. She would be responsible for her own taxes, social security etc. One would think that if she is an independent contractor, there is a contract. Is there one?
November 3, 2008 7:14 AM | Reply | Permalink
You have to admit that Norm does have a glow about him, a remarkable ability to look earnestly into the camera and say "it never happened." And I have to admit he is surprising sincere and convincing.
I asked my congresswoman what has happened to our country, that nobody feels shame about being caught in a lie. She had no answer. But I wonder why the only people who are expected to be accountable for what they do are high school teachers. Is lying ok?
But Norm seems good at it. He looks good on TV and in person. And I suppose his affairs and chasing after women year after year is not really any of our business except when he stares straight into the camera and says he has always been faithful to his wife. But in America if you can't tell a lie, it is just that much harder to understand the truth.
November 3, 2008 11:22 AM | Reply | Permalink
The robo call company FLS-DCI has extensive ties to Norm Coleman. Coleman rents the basement of a DC townhome from Jeff Larsen,he's the L in FLS. Coleman also uses the FLS Minnesota office adress as HIS addresss for FEC filings and other camapaign related issues. Now, Jeff LArsen ALSO is the one who was responsible for the $150,000 wardrobe for Palin-inexplicably, at Neiman Marcus also. Whats with Neimans and Minnesotan GOP? Is this really a kickback scam using Neimans to "launder money?" Guess who's being taken to the cleaners?
November 3, 2008 11:17 PM | Reply | Permalink
Factoids-
Deep Marine Technology, Inc. is an oil service company, which does work underwater on oil rigs out in the gulf.
The Hays Company are insurance brokers bringing clients and companies together, investments/pensions. Risk Mgmt work, etc. It works with the AIG's, Travelers and other big underwriters. Go to the Hays Company web site and on the products page you'll see a refinery.
In the paper here Hays spokeman said it has a risk mgmt advisory contract with DMT, so what's with the independent contractor status???
Twenty-five grand a quarter is something I've never heard of for advice...advice is usually free in this business--leading to sale of product. Sworn statements from DMT say Hays hasn't done jack. Also, there is very little risk for DMT, the risk is held primarily by the oil producer hiring DMT. This is fishy as hell.
The Hays company didn't need to hire the actress Laurie Coleman... if you check any stories on Hays in the press you see they have gotten their talent from the shrinking/consolidating fiancial services market. The number of big brokers has been shrinking in this free-for-all financial services market. There are plenty of knowledge risk managers, consultants, underwriters, analysts, actuaries, and folks with fancy letters like cpcu, rma, aas, etc. behind their names that they didn't have to hire an actress to play in the high stakes, high risk world of specialty lines insurance.
This story not only has legs, it has tenacles. How many clients has Kazeminy brought Hays for this money laundering operation for Coleman??? What are Laurie's responsibilities, who are her clients?
How many other companies in the ultra rich oil bidness and other industries that have profited immensely the last few years, financial services, pharmas, mil.contractors use a similar strategy to support their candidates through such laundries such as the Hays Company and spouses who happen to work for them as "consultants" without experience or education?
The "independent contractor" status of Laurie at Hays really stinks. Mr. Hays is running from this as fast as his lawyers can put words in his mouth. The Senate Ethics committee and the FBI need to talk to this man. There has to be a link of cooperation here to make this scam fly.
November 6, 2008 9:16 PM | Reply | Permalink