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GOP Govs Group Got Whopping $200,000 From Accused Fraudster

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Scott Rothstein (inset)

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The Republican Governors Association got a $200,000 donation last year from Fort Lauderdale attorney Scott Rothstein, who is being accused of a fraud worth as much as $1 billion. The RGA did not respond to requests for comment about the contribution, and it's not known whether the money has, or will be, returned.

Rothstein was until his fall a top donor and fundraiser for Florida Gov. Charlie Crist, who is now locked in a hotly contested U.S. Senate primary with conservative Marco Rubio.

The week before Rothstein's donation, RGA's annual conference was held in Crist's home state, in Miami (headlined, you may recall, by Sarah Palin). It's possible the Nov. 17, 2008 donation helped burnish Crist's reputation within RGA. Along with Rothstein's, a flurry of other Florida donations were entered for Nov. 17 in the group's post-election IRS filing (read it here).

Politicians around Florida of both parties, but particularly Republicans, were the beneficiaries of Rothstein's extraordinary largesse in the past five years. He, his family, and law firm distributed nearly $2 million to political causes since 2006, including $525,000 to the Florida GOP.

Since the accusations of fraud emerged two weeks ago, politicians have scrambled to unload Rothstein donations, sending the money to charities or pledging to give it to a victim compensation fund.

Rothstein is accused of setting up a side business to sell bogus legal settlements out of his law firm. While his 87-foot yacht and luxury car collection have been seized by authorities, he has not been criminally charged.

Late Update: The Palm Beach Post adds this useful context on the relationship between Crist and the RGA:

Gov. Charlie Crist hosted the conference, where he was hailed as one of the party's rising stars. In 2006, the RGA, led by then-Massachusetts Gov. Mitt Romney, donated $1 million to Crist's gubernatorial campaign.

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7 comments

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November 17, 2009 10:23 AM   

Crist is gonna have a hard time 'splainin' his money connection to mini-Madoff.
Better get used to the sound of Governor Rubio unless the Dems can field a viable candidate.

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November 17, 2009 10:34 AM   

You know, things like this are always going to happen as long as we have a political system that is totally dependent upon the largesse of rich and well-connected people like Rothstein. Unless we have serious campaign finance reform in this country, we'll keep seeing politicians and political groups like the RGA having to return tainted money, and the first loyalty of elected officials will always be to the big-money interests that helped get them elected rather than the people they supposedly represent. Not an original thought, I know, but maybe the embarrassment caused by these dirty-money contribution are what's needed to spur some change.

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November 17, 2009 12:22 PM    in reply to commie atheist

I somewhat agree...
Both sides (remember Hillary's fraudulent donor?) are on tthe take, even though some individuals (those who get the committees nobody will ever hear about) are honest.
But campaign reform is and will ALWAYS be a no show, since the crooks in charge have a tendency to be crooked and dishonest. We REALLY need to get rid of both parties for a few cycles and vote in folks who have NO connections to be obedient to.
Remember... The Republicans have not gotten us into the fixes we are now in. The Democrats have not gotten us into the fixes we are now in. The Republicans AND the Democrats have gotten us into these fixes... IMHO

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November 17, 2009 2:29 PM    in reply to johnnydoughey

Maybe those Tea Party people can do some good, and actually mobilize on behalf of real campaign reform. Republicans seem to be willing to do and say whatever batshit crazy thing the tea partiers think is true; maybe they'll do the same thing with finance reform.

Nah, who am I kidding.

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November 17, 2009 10:38 AM   

Investigating Rothstein is like investigating the Bush Administration. The corruption goes off in so many different directions that it's like walking through knee deep mud (or something).

View from another angle. Rothstein set up a hospitality practice. Pearson was in on a deal for a maxi build at the Ritz Carlton that fell through. Orion Communities too.


And, I believe that the boys were doing a feasibility study for Inn Of The Mountain Gods Resort & Casino. Home base, Rusidio, NM - Wilkes' buddies. Another Indian rip-off?


Wondering if Mardi Gras Casino was connected to failed Pacific Coast Bank?

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November 17, 2009 11:38 AM   

"Oh, won't someone help that poor RGA...?" (h/t to Mel Brooks.)

They're not doing so well these days, losing Mark Sanford and now this?

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November 17, 2009 2:23 PM   

And how much of that $500,000 this fraudster gave to the Republican Governors' Association was, in turn, used to run pro-Chris Christie ads in NJ? The RGA ran more Christie advertisements than did the campaign itself. Christie should demand an accounting from the RGA and volunteer to pay back to the victims of this guy's fraud the amounts the RGA spent to get him elected.

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