
When the former chair of the Republican Party of Florida was arrested and charged with grand theft and fraud, investigators seized his computers. On them, they found unfinished book manuscripts that reportedly were packed with details about former Gov. Charlie Crist, to whom the ex-chair was close, and the conservative takeover of the party.
This week, at the request of Jim Greer's lawyers, a Florida judge sealed the manuscripts until the trial.
The computer files were called "Betrayal and Vengeance" and "The Rise and Fall of the Moderate Wing of the Republican Party." Judge Marc Lubet ordered them sealed until the trial begins.
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A Florida doctor who raised millions of dollars for Republicans and advised Gov. Charlie Crist pleaded guilty Thursday to tax fraud, mail fraud and making false statements for his role in a fraud scheme involving lobbying and fundraising for political candidates and organizations.
Alan Mendelsohn admitted that he and his co-conspirators siphoned approximately $330,000 from the political entities -- both directly in the form of third-party payments -- for Mendelsohn's benefit from 2003 through 2008, according to the Justice Department.
Some of that money was used to buy a love-nest for him and his mistress, as well as a car for the mistress, prosecutors had charged. Mendelsohn also admitted to failing to report $82,000 in political donations that he secretly gave to a former state senator. All in all, Mendelsohn underreported his taxable income by over $600,000, said DOJ.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Former Republican Party of Florida chairman Jim Greer agreed earlier this year to pay back $7,337 in inappropriate expenses to the party. But, according to the results of an audit released by the party, the check bounced.
According to the audit, Greer's lawyer claimed in May that Greer had sent a check for the amount to the party. The check came a month later, and it bounced -- perhaps, as the audit notes, because his accounts have been frozen in connection with his federal fraud charges.
RPOF commissioned the audit from Alston & Bird LLP in the wake of spending scandals, stemming from reports of excessive spending by party leaders and eventually culminating in criminal charges against Greer, for allegedly creating a shell company to skim tens of thousands from the party.
The Republican Party of Florida certainly knows how to make the best out of a bad situation. At its meeting this Saturday, leaders discussed a forensic audit that had just been completed after a string of scandals in which party leaders, including current GOP Senate candidate Marco Rubio, were accused of improperly using tens of thousands of dollars of party money.
The RPOF has not released the audit to the public. The party did, however, claim to reporters Saturday that the review revealed that Gov. Charlie Crist, a Republican-turned-independent running for Senate against Rubio, ran up "hundreds of dollars" in bad expenses.
Jim Greer, the former chairman of the Florida Republican Party, who's now facing felony charges for grand theft, fraud and money laundering, has a small favor to ask of Charlie Crist.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)The Federal Elections Commission announced yesterday that it found no evidence of wrongdoing in six complaints, including ones against Charlie Crist's Senate campaign and President Obama's Victory Fund.
The complaint against Crist, filed late last year by Tampa Republican Club president Liz Wessel, alleges that he and a lobbyist friend violated FEC law when his friend, Rich Heffley, created an anti-Rubio web site without disclosing who he was.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Former Florida GOP Chair Jim Greer pleaded not guilty to charges of fraud on Thursday. A tentative trial date was set for Oct. 18, two weeks before Florida's Senate and gubernatorial elections.
Greer is facing six felony counts of grand theft, fraud and money laundering stemming from allegations that, as chair, he secretly awarded a party contract to his own shell company and funneled 10 percent of the party's donations to the firm. He was ousted as chair in January over charges of financial mismanagement of the party.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Embattled former Florida Republican Party chair Jim Greer is ramping up his defense against fraud charges in the Sunshine State -- and he plans to enlist some of his old friends to help. At a press conference Monday, Greer's attorney, J. Cheney Mason, told reporters that he'll call past and current heavy-hitters in the Florida GOP to the stand as he defends Greer, including Gov. Charlie Crist, state Attorney General Bill McCollum and current state GOP chair John Thrasher.
According to the AP Mason told reporters that the multiple fraud charges Greer faces in state court are due to "right-wing conservatives who turned against Crist, the man who picked Greer to head the state party, and decided to punish the governor by ruining Greer".
Greer is the "victim" in the case, Mason said.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Police documents released this week in the Jim Greer alleged fraud case make the Republican Party of Florida out to be a fairly ugly, sexist place to work.
A while back, we noted the allegation that Greer became jealous of Meredith O'Rourke, a top fundraiser for Gov. Charlie Crist, after Greer became FL GOP chair in 2007 and saw she O'Rourke making $30,000 per month in fundraising fees. Greer allegedly tried to convince her to give him a share of her profits, and, when she refused, he cut off her access to Crist.
The new documents include a police summary of investigators' interview with O'Rourke in which she describes Greer making "inappropriate sexually related comments in her presence."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (3)Prosecutors Wednesday released hundreds of pages of documents of evidence in the fraud case against former Florida GOP chair Jim Greer.
A couple highlights:
According to a female party official who spoke to investigators, Greer organized a men-only trip to the Bahamas with major donors and "women were involved and paid." Gov. Charlie Crist, who was on the same trip and hand-picked Greer for the top GOP job in 2007, said today that the charge there were escorts or other paid women involved is "absurdly false."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)One of the most eye-popping recent revelations about former Florida GOP chair Jim Greer is that, when he was struggling with money problems, one generous Republican donor ponied up $10,000 per month for over 18 months to help Greer out, according to the criminal fraud charges against Greer.
But the story just got even better: none other than Palm Beach County businessman Harry Sargeant, who has been popping up as a player in political scandals since John McCain's 2008 presidential campaign, has acknowledged to the Miami Herald that he is the donor who stepped in to give Greer a hand. Sargeant is a friend of Gov. Charlie Crist and a former state GOP official.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)The attorney for former Florida GOP chief Jim Greer is asserting that Gov. Charlie Crist personally approved a fundraising arrangement under which a Greer company got a cut of donations to the party -- which is now the subject of criminal fraud charges against Greer.
The Miami Herald has the story:
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)The arrest of Jim Greer today marks the culmination of a year long scandal at the Florida Republican party that began with revelations of personal spending sprees on party credit cards and has now escalated to criminal charges of fraud and grand theft.
Greer, who spent three years as chair of the Florida GOP after being handpicked for the slot by Gov. Charlie Crist in 2007, allegedly skimmed 10% of GOP fundraising revenue for his own shell company, which had been secretly awarded a party contract by Greer. He was ousted from the party in January amid charges of financial mismanagement.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (4)TPMmuckraker is digging into the arrest affidavit for former Florida GOP chair Jim Greer and here's the first good nugget: Greer allegedly tried to strong-arm a professional fundraiser for the state GOP into giving him a percent of her earnings -- and when she refused, he cut off her access to his close ally Gov. Charlie Crist.
A veteran professional fundraiser who had worked for Crist's campaign, Meredith O'Rourke was on a $30,000-per-month contract with the state party. Greer approached her a few months after his election as chair in 2007 and "stated to her that he realized there was a lot of money to be made in political fundraising," the affidavit alleges. It continues:
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)Former Florida GOP chair Jim Greer is charged with six felony counts of fraud, theft, and money laundering in connection with a company he allegedly created to take a cut of the state party's fundraising revenues, Florida authorities announced this morning.
At a news conference moments ago, Statewide Prosecutor William Shepherd charged that the money gained by the company was "used by Mr. Greer to support his own personal lifestyle."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Former Florida Republican Party Chair Jim Greer was arrested this morning and charged with grand theft, attempt to defraud, and money laundering the Orlando Sentinel reports.
Greer -- a close ally of Gov. Charlie Crist -- was reported to be under criminal investigation for a contract worth around $200,000 that he awarded to himself and the state party's executive director. The Florida Republican Party revealed the news in March, saying it had uncovered the contract in the course of its annual financial audit, and referred the matter to authorities.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)North Carolina Republicans are circulating court documents that suggest a far-right Tea-Party-backed congressional candidate claimed to be the Messiah, tried to raise his stepfather from the dead, believed God would drop a 1,000-mile high pyramid as the New Jerusalem on Greenland, and found the Ark of the Covenant in Arizona.
Tim D'Annunzio also has written that he wants to abolish several key government departments, including the IRS. But there's more going on here than just another wacky conservative politician. The effort by GOP leaders to stop D'Annunzio at all costs offers an intriguing test case of their ability to keep control of the party in the face of challenges from the Tea Party wing. Or as D'Annunzio himself has put it: "The power brokers in Raleigh and in Washington are willing to go to any length and use any unscrupulous tactic to try to destroy somebody. They think that they're losing their control over the Republican party."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (5)Rep. Kendrick Meek (D-FL), who is running for Senate in Florida, sought earmarks to help a developer who gave a top Meek staffer $13,000 in 2003 for a down payment on a house, and paid Meek's mother, former congresswoman Carrie Meek, $90,000 plus use of a Cadillac Escalade for consulting services, the Miami Herald reports.
The developer, Dennis Stackhouse, is now facing fraud charges associated with the Poinciana Park project in Liberty City, Miami, a proposed biopharmaceutical complex that was never built.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)Forensic auditors going through the books of the Florida Republican Party recently discovered that a close friend of Gov. Charlie Crist was paid over $350,000 for unspecified consulting work that no one seems to have known about. But, the former No. 2 at the state party tells TPMmuckraker, that revelation may be only the beginning.
"I think there were a lot of cronies that were receiving pay washed through the Republican Party of Florida," says Allen Cox, who stepped down as vice chair of the party in January after going after chairman and Crist ally Jim Greer, who was ousted soon after, for financial mismanagement.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (5)With the expected news that Florida Gov. Charlie Crist is opting to run for Senate as an independent, the general election is set to have two major candidates -- Crist and presumptive GOP nominee Marco Rubio -- tarred by the wide-ranging spending scandal that is rocking the state Republican Party.
The scandal -- in which GOP officials are accused of spending party money on lavish personal expenses along with other financial malfeasance -- is tailor-made for attacks ads come the general election season, which is shaping up to be a three-way contest among Crist, Rubio, and likely Democratic nominee Rep. Kendrick Meek.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (5)Earlier this week we learned that federal authorities are investigating Florida Senate candidate Marco Rubio. Now, the St. Petersburg Times reports that investigators are interested in the role of Rubio's opponent, Gov. Charlie Crist, in the seemingly ever-expanding scandal over lavish spending at the state GOP.
The paper, which has been on a roll with this story, talked to a GOP fundraiser named Al Hoffman, who says he was interview by the FBI last month:
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (3)Looking for a quick and easy way to impress people without actually doing any work? Take a lesson from Jim Greer.
Near the end of a profile of the former Florida GOP chair and Charlie Crist buddy -- who recently stepped down amid a spending scandal, and now is the subject of a criminal investigation for a contract awarded to himself and his executive director -- the Orlando Sentinel reports:
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)Over the past year, we've seen example after example of Florida GOP leaders using party credit cards for lavish personal spending -- from an $839 Starbucks bill to a $134 haircut and, now, a new allegation that the party chair used official funds to enrich himself.
Yesterday, we passed along the news that former FL GOP chair Jim Greer is under criminal investigation for allegedly awarding himself a lucrative party fundraising contract.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (6)The former chair of the Florida GOP -- a close ally of Gov. Charlie Crist -- is said to be under criminal investigation for a contract worth around $200,000 that he awarded to himself and his executive director. The news was revealed today by the state party, which says it uncovered the contract in the course of its annual financial audit, and referred the matter to authorities.
Jim Greer was appointed to run the state GOP by Crist in 2007, but was forced out of the job in January, after reports of lavish party spending, much of which went on the credit card of the party's executive director, Delmar Johnson.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Marco Rubio has led a pretty charmed life lately, as he's vaulted past Gov. Charlie Crist to take a commanding lead in the race for the GOP nomination for the U.S. Senate.
But that could be ending. Last week, the Miami Herald reported that Rubio had charged computer supplies, groceries, and products from a music equipment store and a wine store, among other items, to the Florida GOP. And over the weekend, the St. Petersburg Times added to the picture, with a detailed look at the finances of the various political action committees that Rubio set up over the last decade, as he charted a course from little-known local pol to Speaker of the Florida House.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (3)Leaked documents showing that Marco Rubio charged computer supplies, groceries, and products from a music equipment store and a wine store, among other items, to the Florida GOP may represent the first major bump in the road for the U.S. Senate candidate and conservative darling. But was the leak an act of political payback?
In a letter to the state party chair, Rubio accused former party chair Jim Greer -- a close ally of Rubio's rival, Gov. Charlie Crist -- of being behind the leak. "It is clear these internal documents were taken from the RPOF by former Chairman Jim Greer, or someone working for him, and were leaked to the media by the Crist Campaign," Rubio wrote, calling the leak, "an appalling act of political desperation."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)A fundraising email sent yesterday by the National Republican Congressional Committee (NRCC) appeared under the name "Nancy Pelosi," and was addressed to "Dear Naive Republican."
No, the Speaker hasn't switched parties. Rather, the email, obtained by TPMmuckraker, seems to have been a crude stab at satire by the NRCC, designed to highlight what the committee sees as the failure of the stimulus plan.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)The two-man team of Florida political activists who are claiming the rights to the "Tea Party" name have been accused in the past of engaging in political trickery for profit, including allegedly pressing opposing candidates to pay for the endorsement of their candidate.
In August, Orlando lawyer Fred O'Neal registered the "Tea Party of Florida" (TPOF) as an official political party. Since then, as we reported yesterday, he and his close ally, GOP political consultant Doug Guetzloe, have asserted rights to the Tea Party name, and tried to strong-arm some local groups to drop the well-known moniker.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (4)In the years spent living off the profits of his alleged $1 billion Ponzi scheme, Florida attorney Scott Rothstein went on a Mike Tysonesque buying spree that's likely to make even the denizens of money-drenched Fort Lauderdale blush.
We already knew about the $52,000 birthday cake for Gov. Charlie Crist, and the special performance of Life in the Fast Lane for Rothstein's wife at an Eagles concert, but court papers filed earlier this week show the disgraced attorney also indulged his taste for gaudy jewelry, luxury automobiles, and real estate, even buying a 10% stake in the Versace Mansion in Miami Beach.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (3)Charges released this afternoon against Scott Rothstein, who was arrested earlier today, provide new details on how his alleged Ponzi scheme worked. He plead not guilty this morning.
The five-count criminal information seeks forfeiture of $1.2 billion, including bank accounts and no less than 24 luxury cars. The full 34-page document, released by the U.S. Attorney for southern Florida, can be read below (see page 23 for the car list).
"Scott Rothstein appeared to be a charismatic, reputable attorney one could trust to invest one's money and make a sizeable profit," said Miami FBI agent John Gillies, in a statement today. "We now know it was all smoke and mirrors."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)A month after he returned to Florida from a brief trip to Morocco, prominent attorney Scott Rothstein was arrested by federal authorities this morning, accused of running a $1 billion investment fraud, the Miami Herald reports.
Rothstein, who has reportedly cooperated with authorities in recent weeks, is expected to plead guilty to a RICO conspiracy charge, according to the Herald.
Investors have accused Rothstein of promising them big returns on phony legal settlements he sold out of a side business at his Fort Lauderdale firm, Rothstein, Rosenfeldt, and Adler. Over the past seven years, he has had a meteoric rise through the South Florida business and political elite, doling out millions in campaign and philanthropic donations along the way.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (4)Bill McCollum, the likely GOP nominee in the Florida gubernatorial race, is calling on the Republican Governors Association to give back a $200,000 donation from accused fraudster attorney Scott Rothstein, whose political support has become a hot issue in the race.
The statement from McCollum, who is in Austin for the RGA conference this week, comes on the heels of a demand from the Democratic Governors Association that McCollum ask the RGA to give the money back.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)The Democratic Governors Association is going after Bill McCollum, the likely GOP nominee in the race for Florida governor, in the wake of TPMmuckraker's report that the Republican Governors Association got a $200,000 from accused fraudster Scott Rothstein.
"Bill McCollum is spending the week with RGA leadership at their annual fundraiser - in fact, this is the same fundraiser where Rothstein contributed his $200K last year," said DGA communications director Emily DeRose in a statement. "McCollum has two choices: Will he ask the RGA to return the fraudulent money, or will he thank them for using it to boost his chances in Florida?"
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)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.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (2)A photo hanging in the law firm office of accused fraudster Scott Rothstein shows the Fort Lauderdale attorney in a full embrace with Florida Gov. Charlie Crist and features a handwritten note from Crist: "Scott --- you're amazing!"
The story of Rothstein's alleged $1 billion fraud, which TPMmuckraker has been following, was featured on the front page of the weekend edition of the Wall Street Journal, illustrated by the Crist-Rothstein photo.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (4)Estimates of the size of the investment scheme allegedly carried out by politically connected Fort Lauderdale attorney Scott Rothstein have now soared to $1 billion, up from $500 million, which was up from $100 million. Meanwhile, Rothstein is still free and was even taped Monday having a lunchtime cocktail at Fort Lauderdale's Capital Grille.
Civil charges were brought in the case Monday by the IRS and authorities have seized his 87-foot yacht and several sports cars, but Rothstein, who was a top moneyman for Gov. Charlie Crist known for his expensive tastes, has not been charged criminally.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (1)Two Florida newspapers have published pictures of the birthday cake for Charlie Crist sponsored to the tune of $52,000 by Fort Lauderdale super attorney Scott Rothstein.
Remember, Rothstein has been accused of orchestrating a gigantic fraud scheme out of his firm, but Gov. Crist claims that Rothstein is just another supporter, suggesting this week he hardly knows the man.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (5)Florida Gov. Charlie Crist's assertion that accused fraudster attorney Scott Rothstein was nothing more than another campaign supporter is starting to look even thinner.
A Florida source familiar with the situation tells TPMmuckraker that Rothstein often bragged about his closeness to Crist, now a candidate for US Senate. The source says Rothstein once remarked: "It's one thing when you've got the governor on speed dial. It's another thing when the governor has you on speed dial."
"They were friends," the source tells us. "To say anything else is ridiculous."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (3)Something is rotten in the state of Florida?
With the accusations this week that Scott Rothstein, fast-living Fort Lauderdale attorney and friend and donor to Gov. Charlie Crist, orchestrated a massive fraud out of his law firm, there are now three Crist moneymen caught up in alleged criminal or extremely shady activity.
Crist, whose career has been fueled by his skill as a fundraiser, finds himself entangled with the trio of scandals just as his U.S. Senate primary campaign against conservative Marco Rubio is attracting national attention. And there's already talk down in Florida that the Crist-linked scandals may become a factor in the primary contest.
So what's it all about? Let's go to the tape.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (6)Back in south Florida after a trip to Morocco, the high-profile attorney who has been sued for allegedly operating a fraud scheme out of his law office met with federal prosecutors last night and criminal charges are likely to come soon, the Broward-Palm Beach New Times reports.
In a suit filed Monday, the law firm of politically-connected Fort Lauderdale attorney Scott Rothstein alleged that he set up a side business that sold phony legal settlements to outside investors with promises of guaranteed high returns.
There have been a flurry of developments in the Rothstein case in the last 24 hours, so we rounded up a few articles worth taking a look at:
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