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Norm Coleman: November 2008

Coleman's NRSC Decision Benefits Ethics Chair -- Who Could Head Coleman Probe

Zachary Roth | November 14, 2008, 5:21PM

A good catch by The Huffington Post yesterday, in response to the news that Norm Coleman is dropping out of the race for chair of the National Republican Senatorial Committee (NRSC) to focus on the Minnesota recount -- and is throwing his support behind John Cornyn, who will almost certainly now win the post.

HuffPo notes that Cornyn, of Texas, is also currently the GOP chair of the Senate Ethics Committee - the body that could well investigate whether Coleman accepted gifts from his longtime supporter Nasser Kazeminy.

Earlier this week, the Alliance for a Better Minnesota, a good-government group that ran anti-Coleman ads during the election, publicly called on the Ethics Committee, as well as the FBI, to look into sworn allegations, made in a lawsuit, that Kazeminy passed $75,000 to Coleman by having one of Kazeminy's companies make payments to an insurance brokerage that employs Laurie Coleman, the senator's wife.

So Coleman's decision to drop out of the NRSC race directly benefits one of the people who will have the most influence over the direction of any investigation by the Ethics Committee.

Coleman's Senate office has not responded to numerous requests from TPMmuckraker to comment on whether he has already been contacted by investigators.

But there's another wrinkle beyond HuffPo's catch: But for the GOP chair of the supposedly non-partisan Ethics Commitee to also serve as head of the NRSC -- an explicitly political post -- might appear to present a conflict of interest.

Cornyn's office did not immediately respond to a call from TPMmuckraker asking whether Cornyn intended to serve in both roles at once.

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Topics: Nasser Kazeminy, Norm Coleman, Senate Ethics Committee

Norm Coleman

Taking Stock Of The Coleman-Kazeminy Charges

Zachary Roth | November 13, 2008, 1:46PM

As Norm Coleman gets set for a recount in his bid to hold onto his Minnesota Senate seat, it's worth considering where things stand on the allegations that surfaced in the waning days of the campaign about Coleman's relationship with his friend and longtime associate, the businessman Nasser Kazeminy.

Here's what we know:

Late last month, in a suit filed in Texas, Paul McKim, the former CEO of Deep Marine Technologies (DMT), alleged in a sworn statement that Kazeminy -- who owns DMT -- directed him to make payments totaling $75,000 to the Hays Companies, a Minnesota insurance brokerage that employs Coleman's wife Laurie Coleman. The payments, claimed McKim in the suit, were not for legitimate work performed by Hays for DMT, but rather were a way for Kazeminy to funnel money to Coleman.

Soon afterwards, a group of DMT investors filed a separate suit naming both Kazeminy and McKim as defendants, and making similar allegations.

Since news of the suits surfaced in late October, none of the principals has offered responses that have put the matter to rest.

Coleman has vehemently denied the charges, and even cut a last-minute TV ad suggesting, with little evidence, that the campaign of his opponent, Democrat Al Franken, was behind them. And yesterday, when a progressive Minnesota watchdog group that ran ads attacking Coleman during the campaign held a press conference at which it called for investigations by the FBI and the Senate Ethics Committee into the matter, Coleman quickly said in a statement that he would welcome such probes, and that he wanted them to start "immediately." (Coleman's Senate office did not immediately respond to a detailed message from TPMmuckraker asking whether he has already been contacted by investigators.)

But neither Norm Coleman nor Laurie Coleman have offered details on the nature of her work for Hays.

Neither has Hays. Soon after news of the allegations broke, the company put out a statement calling the charges "libelous and defamatory." It said that Laurie Coleman "has been an Independent Contractor for Hays Companies since 2006," but offered no further detail on what she does for the company, beyond saying that she "receives no compensation related to the services we provide for our client Deep Marine Technology."

What are those services? Again, the statement was vague, saying only: "In the first half of 2007, we were retained to provide our risk management consulting services, and that work continues at this time."

As for Kazeminy, after initially remaning silent, he eventually hired a top Minneapolis-based crisis management expert, who late last week issued a tautological denial on his behalf: "Mr. Kazeminy vehemently denies the false and baseless claims made against him in recent weeks."

It's also worth noting that Norm Coleman and the Hays Companies may not have been on the same page about the arrangement between the firm and Laurie Coleman - a former model and actress who, according to state records examined by TPMmuckraker, only received her insurance license in October 2006. As we reported earlier this week, Norm Coleman wrote on his Senate disclosure forms for 2006 and 2007 that Laurie Coleman receives a salary from Hays - which would appear to contradict Hays' assertion that she's an independent contractor.

And according to FEC records examined by TPMmuckraker, Hays has been a frequent financial contributor to Coleman's Senate campaigns.

We may have to wait for possible law-enforcement or congressional investigations to get to the truth about Coleman's role in the alleged scheme. But it's certain that, barring any compelling explanations from any of the principals said to be involved, questions about the affair won't be going away any time soon.

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Topics: FBI, Hays Companies, Nasser Kazeminy, Norm Coleman, Senate Ethics Committee

Norm Coleman

Coleman Camp: Sec of State's Comments on Recount Were "Offensive"

Zachary Roth | November 12, 2008, 3:57PM

The Republicans' apparent effort to de-legitimize the coming recount in the Minnesota Senate race continues.

Yesterday, we reported that the NRSC was distributing to the press a negative research document attacking the man who'll oversee the recount, Minnesota's secretary of state Mark Ritchie, as a partisan Democrat with ties to ACORN, among other alleged sins.

Today, the campaign of incumbent Republican Norm Coleman doubled down on that strategy.

This morning, in an interview with MSNBC, Ritchie was asked about the Coleman camp's criticism of the recount. He replied: "Their goal is to win at any price. They've invested millions and millions of dollars. We consider this part of the normal political rhetoric."

Ritchie added: "We're used to the political rhetoric being amped up. That's part of their job -- to win at any price."

Ritchie seemed to be trying to say that amped-up political rhetoric is to be expected from both sides. But his comments were clumsy at best, and they offered Coleman an opening.

Soon afterwards, the Coleman campaign released a statement calling the remarks "offensive" and saying they underscore "our concerns about his ability to act as an unbiased official in this recount."

With the first count almost complete, Coleman leads by around 200 votes. Although that's easily within the margin that triggers an automatic recount under state law, Coleman has fought the notion of a recount from the start. He originally called on Al Franken, his Democratic challenger, to waive his right to a recount -- a request Franken quickly declined.

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Topics: Mark Ritchie, Norm Coleman, Voting

Norm Coleman

Good Government Group Calls On FBI, Senate, To Probe Coleman

Zachary Roth | November 12, 2008, 12:19PM

A Minnesota good government group that works with Democrats and progressives has called on both the Senate Ethics Committee and the local FBI office to investigate allegations that GOP senator Norm Coleman accepted $75,000 in gifts from a friend and supporter.

Alliance for a Better Minnesota (ABM) is also circulating a petition to demonstrate public support for the desired probes. It will release letters to the FBI and the Senate Ethics Committee at a press conference this afternoon at the state capitol.

The claims against Coleman were made in a lawsuit filed last month against Nasser Kazeminy, a close associate of the senator. The suit, filed by the former CEO of the Kazeminy-owned Deep Marine Technology, alleges that Kazeminy passed money to Coleman's wife, Laurie Coleman, by ordering Deep Marine to make payments to the Hays Companies, an insurance broker that employed her. Kazeminy and Coleman have denied the claims, and Coleman has not been formally charged with any wrong-doing.

A press release announcing Alliance for a Better Minnesota's effort was forwarded to TPMmuckraker by the communications office of Minnesota's Democratic party.

Coleman faces a recount in his high-profile Senate re-election fight against Democrat Al Franken.

Late update: Here are the letters sent by ABM to the FBI and the Senate Ethics Committee.

And here's a response from Coleman to ABM's move.

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Topics: Nasser Kazeminy, Norm Coleman, Senate Ethics Committee

ACORN

Before Recount, GOP Smearing Minnesota Sec Of State

Zachary Roth | November 11, 2008, 5:00PM

The recount in the Minnesota Senate race hasn't even begun yet, but already the GOP is working to delegitimize it in advance, by smearing the man who will run it as a partisan Democrat.

The National Republican Senatorial Committee (NRSC) has been distributing to reporters a three-page "backgrounder" that attacks Secretary of State Mark Ritchie, a Democrat, for having spoken at the Democratic convention this summer, and for having "led a voter registration coalition that included ACORN," among other alleged sins.

In the first vote count, Republican incumbent Norm Coleman currently holds an edge of around 200 votes over Democratic challenger Al Franken, though that number may continue to dwindle as more votes are counted. Either way, the margin is easily close enough to require a recount under state law, which will begin next week under Ritchie's supervision.

Despite the backgrounder's sometimes hysterical compilation of anti-Ritchie greatest hits -- it claims that "the Communist Party USA Wrote Encouragingly Of His Candidacy," citing an unsourced line from a report in the Minneapolis Star Tribue -- there's no evidence that Ritchie has ever used his role as the state's top elections administrator to advantage Democrats.

But that likely misses the point of the GOP gambit, which appears to be to cast public doubt on the integrity of the recount process, thereby bolstering Coleman's claim that's he's the rightful winner and that a recount is unnecessary -- just the strategy pursued by George Bush's campaign in Florida in 2000.

Indeed, Coleman's shrinking lead in the first count has already prompted him to try to question the ongoing vote counting. A lawyer for the campaign yesterday told The Politico: "We're not going to sit idly by, while mysterious, statistically dubious changes in vote totals take place after official government offices close."

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Topics: ACORN, NRSC, Norm Coleman, Voting, voter fraud

Norm Coleman

Coleman, Hays, Appear To Differ on Wife's Employment Status

Zachary Roth | November 10, 2008, 4:27PM

One of the key questions in the lawsuit filed against Nasser Kazeminy, a close friend and supporter of Minnesota Republican senator Norm Coleman, relates to the nature of the work done by Coleman's wife Laurie for the Hays Companies.

And on that score, there seems to be a noteworthy amount of confusion among the principles.

Let's back up. The suit, filed late last month in Texas by the former CEO of Deep Marine Technologies, alleges in part that Kazeminy set up a scheme to pass money from DMT, which he owns, to Coleman, through the Hays Companies, a Minneapolis-based insurance broker. The suit claims that Laurie Coleman received $75,000 from Hays, without performing legitimate work for the company, and that these payments were an effort by Kazeminy to get money to Norm Coleman.

The senator -- who faces a recount in his reelection race against Democrat Al Franken -- has denied the allegations. And Hays Companies, in a statement issued after the suit was made public, called them "libelous and defamatory."

But are the two on different pages as to the nature of Laurie Coleman's relationship with Hays?

In that statement, Hays declared that Laurie Coleman "has been an Independent Contractor for Hays Companies since 2006," without elaborating as to the nature of her work for Hays.

But on his Senate disclosure forms for 2006 and 2007, Norm Coleman explicitly lists the type of income that his wife received from Hays as "salary" -- which by definition would render Laurie Coleman an employee, rather than an independent contractor.

Of course, Norm Coleman may simply have been imprecise in filling out the disclosure form and used "salary" as shorthand for compensation. But it's a discrepancy that would be worth resolving.

Calls by TPMmuckraker to Norm Coleman's campaign and Senate offices, and to a lawyer for the Hays Companies who has been handling questions on the lawsuit, were not immediately returned.

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Topics: Hays Companies, Nasser Kazeminy, Norm Coleman

Norm Coleman

Key Player Not Denying Allegations Against Coleman

Zachary Roth | November 2, 2008, 3:27PM

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.