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  • 5
    Jun
    2013
    6:57am, EDT

    FBI agents raid offices of California state senator, Latino caucus

    Rich Pedroncelli / AP

    FBI agents are let into the office of Democratic California state Sen. Ron Calderon on Tuesday.

    By John Newland, Staff Writer, NBC News

    FBI agents raided the offices of California state Sen. Ron Calderon and the Latino caucus Tuesday afternoon at the Capitol in Sacramento, but the agency would not disclose the reason or the nature of its investigation.

    “Those warrants are sealed by order of the federal court; therefore we have no further information,” Tony Beard, the state Senate sergeant-at-arms said in a statement. “The Senate has and will continue to fully cooperate with the agents in this matter.”

    An FBI spokeswoman in Los Angeles, Laura Eimiller, said the warrants were served at about 3 p.m., as members of the Latino caucus were meeting with reporters to discuss their legislative priorities, The Associated Press reported, adding that six to eight agents left the Capitol more than six hours later carrying at least a half-dozen boxes and what appeared to be a computer hard drive.

    Eimiller said the investigation was being led by federal authorities in Southern California but the search warrants were issued in U.S. District Court in Sacramento, according to the AP, which quoted her saying that the investigation involved “allegations of criminal activity.”

    "This is an ongoing investigation," she added. "Searches are typically done in the early stages of an investigation, so it would be premature to say that charges will be filed."

    Calderon, a Democrat, represents a district in Los Angeles County and is chairman of the state Senate’s Insurance Committee, as well as three select committees: Film and Television Industries, International Business and Trade, and Economic Development.

    He was first elected to the state Senate in 2006, having served two terms in the State Assembly.

    His oldest brother, Charles Calderon, served in the state Senate from 1990 to 1998, and his older brother, Thomas Calderon, served in the assembly from 1998 to 2002, according to his Senate biography.

    Before being elected to public office, he had worked as a mortgage banker, real estate agent, manufacturing manager and marketing firm owner, the biography states.

    95 comments

    “Those warrants are sealed by order of the federal court; therefore we have no further information,” Tony Beard, the state Senate sergeant-at-arms said in a statement. “The Senate has and will continue to fully cooperate with the agents in this matter.”

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  • 5
    Mar
    2013
    4:30am, EST

    Woman changes story, denies being paid for sex with Sen. Robert Menendez

    By Manuel Jimenez, Kevin Gray and Edith Honan, Reuters

    SANTO DOMINGO, Dominican Republic - A Dominican woman who previously stated in a video that she was paid to have sex with Senator Robert Menendez of New Jersey now says the allegations were false, according to a sworn statement released by a lawyer on Monday.

    The notarized affidavit was distributed by a prominent Dominican lawyer and friend of Menendez, Vinicio Castillo, who said it had been handed over to prosecutors. Castillo is not acting as the lawyer to the woman.

    In her sworn statement, Nexis de los Santos Santana denied ever meeting Menendez and said she never agreed to be filmed.

    New Jersey Sen. Robert Menendez is addressing allegations that he hired a prostitute on a trip to the Dominican Republic, saying they are "totally unsubstantiated." The campaign donor with whom he traveled is currently under federal investigation. NBC's Kelly O'Donnell reports.

    Menendez, a Cuban-American Democrat who chairs the Senate Foreign Relations Committee, won re-election to a second term last year. He has repeatedly denied the sex claims, calling them "politically motivated" smears.

    Asked on Monday night about the affidavit, a spokeswoman for the senator declined to comment. The affidavit was first reported by the Washington Post.

    The original videotaped interview with the woman features her saying that Menendez paid her for sex and that she was cheated out of the full amount he had agreed to pay.

    But according to the affidavit released on Monday, the woman now says she was paid to read from a prepared text and was videotaped without her consent.

    Related:

    After ethics complaint, Sen. Menendez pays $58,500 for two flights to Dominican Republic

    560 comments

    Oh sure. LOL

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  • 7
    Nov
    2012
    6:46am, EST

    Embattled Jesse Jackson Jr. wins re-election despite criminal probe

    Katy Wolpoff / NBC Chicago

    Jesse Jackson Jr. won re-election to Illinois' 2nd Congressional district by a landslide Tuesday night, NBC Chicago reported.

    By Andrew Greiner, NBCChicago.com

    CHICAGO — U.S. Representative Jesse Jackson Jr., who has made no public appearances since for several months amid illness and who faces a criminal probe into alleged misuse of public funds, easily won re-election to his Chicago-area district on Tuesday.

    Jackson, a Democrat who has served in the U.S. House of Representatives since 1995 and who was diagnosed earlier this year with bipolar disorder, won re-election to Illinois' 2nd Congressional district by a landslide, beating his two opponents, Marcus Lewis and Brian Woodworth.

    As of 2 a.m. local time Wednesday (3 a.m. ET) and with 99 percent of precincts reporting, Jackson had captured 63 percent of the vote.


    "My deep and sincere thanks to the people of the 2nd Congressional District, I am humbled and moved by the support shown today," Jackson said in a written statement. "Everyday, I think about your needs and concerns. Once the doctors approve my return to work, I will continue to be the progressive fighter you have known for years. My family and I are grateful for your many heartfelt prayers and kind thoughts. I continue to feel better everyday and look forward to serving you."

    Jesse Jackson Jr. under federal investigation over alleged financial improprieties

    Jackson reportedly spent the night at the Mayo Clinic in Minnesota.

    August 2012: Former Rhode Island U.S. Rep. Patrick Kennedy visited longtime friend and colleague U.S. Rep. Jesse Jackson, Jr., who is undergoing treatment for bipolar disorder. Kennedy described their mutual struggle with depression in this extended interview with NBC News.

    Jackson disappeared from public view before the primary when he left for a treatment center in Arizona in early June. He later moved on to Mayo where he was diagnosed with bipolar depression and gastrointestinal issues.

    More stories from NBCChicago.com

    In October, federal prosecutors and FBI agents in Washington, D.C., launched a criminal investigation into Jackson involving alleged financial improprieties.

    At the same time, a House Ethics Committee continues to look into Jackson's supposed involvement in trying to be appointed to now-President Barack Obama's seat in the U.S. Senate. Jackson has admitted he wanted to be appointed to the Senate, but has repeatedly denied allegations he sent emissaries to offer campaign cash to then-Gov. Rod Blagojevich in exchange for the seat.

    The emissary that he denies sending to negotiate with Blagojevich, Raghuveer Nayak, was arrested on 17 counts of fraud in June.

    Once a rising star, the Illinois Representative has not been seen in Congress since early June. Friends and colleagues say Jackson was being treated at a facility in Arizona. NBC's Andrea Mitchell reports.

    More election coverage from NBCNews.com:

    • Victorious Obama 'more determined' in face of challenges
    • Now that he's won, six splitting headaches waiting for Obama
    • Democrats retain control of Senate with series of hard-fought wins
    • One big winner in Tuesday's vote: health reform
    • Romney's English cousin sad he lost, sort of
    • Rape remarks sink two Republican Senate hopefuls
    • In costliest-ever Senate race, Warren beats Brown for Mass. seat
    • Maine's Harley-riding King vowed to 'shake up' D.C.
    • Republicans easily maintain control of House
    • Colorado, Washington approve recreational marijuana use
    • Wisconsin's Baldwin becomes 1st openly gay senator
    • Pence in as governor of Indiana; Hassan wins in N.H.
    • World welcomes Obama's 2nd term - but many challenges loom
    • Majority of voters see American on wrong track
    • Top 10 foreign policy issues facing Obama

    Follow NBC Politics on Twitter and Facebook

     

    172 comments

    Like father like son - - - vote blindly for the name - NOT the individual - AKA Kennedy, etc.

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  • 5
    Nov
    2012
    4:34am, EST

    Election's enigmatic biggest corporate donor has contributed $5.3 million

    In the campaign's closing weekend, President Obama and Governor raced across several battleground states to rally supporters as voters get ready to head to the polls in less than 24 hours. NBC's Peter Alexander reports.

    By Michael Beckel and Reity O’Brien, The Center for Public Integrity

    Updated 5:20 p.m. ET -- The biggest corporate contributor in the 2012 election so far doesn’t appear to make anything — other than very large contributions to a conservative super PAC.

    Specialty Group Inc., of Knoxville, Tenn., donated nearly $5.3 million between Oct. 1 and Oct. 11 to FreedomWorks for America, which is affiliated with former GOP House Majority Leader Dick Armey.

    FreedomWorks’ super PAC has spent more than $19 million on political advertising, including $1.7 million on Oct. 29 opposing Tammy Duckworth, a Democrat running for Congress in Illinois against Tea Party favorite Joe Walsh, a first-term incumbent.


    The buy was more than four times greater than the group’s previous largest single expenditure.

    Specialty was formed only a month ago. Its “principal office” is a private home in Knoxville. It has no website. And the only name associated with it is that of its registered agent, William S. Rose Jr., a lawyer whose phone number, listed in a legal directory, is disconnected.

    Rose released a press release Monday saying the company was created to "buy, sell, develop and invest in a variety of real estate ventures and investments." 

    In the six-page statement, Rose said he was a "disappointed, yet staunchly patriotic, baby boomer" with concerns about the administration's handling of the terrorist attack on the U.S. diplomatic mission in Benghazi, Libya, as well as the Department of Justice's botched "Operation Fast and Furious" gun-walking program. 

    Specialty is the biggest and most mysterious corporate donor to super PACs, but it is not unique.

    A new analysis by the Center for Public Integrity and the Center for Responsive Politics shows that companies have contributed roughly $75 million to super PACs in the 2012 election cycle.

    Super PACs, which were created in the wake of the controversial U.S. Supreme Court’s Citizens United decision in 2010, can accept donations of unlimited size from corporations, unions and individuals. They spend the funds mostly on negative advertising.

    The centers’ analysis found that 85 percent of money from companies flowed to GOP-aligned groups, 11 percent went to Democratic groups and the remainder went to organizations not aligned with either party.

    First Read: Full coverage on the campaign trail

    Prior to Citizens United, corporate spending on candidate advertising was not allowed. The decision raised fears that massive donations from corporate treasuries would flood the election in 2012.

    In fact, the largest amounts have come from wealthy businessmen. However, about 11 percent of the $660 million raised by all super PACs through mid-October has come from company treasuries — mostly privately held businesses, sometimes organized as limited partnerships or limited liability companies.

    High-profile donors
    Yet a few high-profile companies haven’t been afraid to jump into the partisan fray.

    In mid-October, oil and gas giant Chevron donated $2.5 million to a super PAC close to House Speaker John Boehner, R-Ohio, called the Congressional Leadership Fund, which has aired a bevy of ads attacking Democratic House candidates.

    Oxbow Carbon, the energy company owned by billionaire William Koch, the lesser-known brother of conservative industrialists David and Charles Koch, and Contran Corp., the business of Republican super donor Harold Simmons of Texas, have both steered significant sums to the coffers of super PACs.

    With polls showing a neck-and-neck presidential race, NBC's Chuck Todd runs through some potential paths to presidential victory, including how it might go if President Obama won the Electoral College vote and Governor Romney won the popular vote.

    Oxbow Carbon has donated $4.25 million to GOP super PACs, making it the No. 2 corporate donor to super PACs, while Contran, No. 3, has donated more than $3 million to Republican-aligned groups.

    Another top corporate donor is a retirement community in central Florida known as The Villages — a Republican stronghold where Paul Ryan held his first campaign rally the day after GOP presidential nominee Mitt Romney named him as his running mate.

    Developer H. Gary Morse created The Villages more than 50 years ago, and this election cycle, more than a dozen companies connected to Morse and The Villages have collectively steered $1.6 million to GOP super PACs. That’s in addition to the $450,000 that Morse and his wife, Renee, have donated from their personal funds.

    Notably, Morse is also the Florida co-chairman of the Romney campaign, and during the Republican National Convention, Morse’s Cayman Island-flagged yacht, named “Cracker Bay,” was the site of a soiree for some of Romney’s top donors and fundraisers.

    Other high-profile corporate donors include:

    • The Apollo Group, a for-profit education company, which gave $75,000 to the pro-Romney Restore Our Future and another $5,000 to JAN PAC, the super PAC of Arizona’s Republican Gov. Jan Brewer;
    • Convenience store giant 7-Eleven, which donated $25,000 to Hoosiers for Jobs, a super PAC that supported Sen. Dick Lugar, R-Ind., during his failed primary campaign;
    • Hamburger chain White Castle, which gave $25,000 to the Congressional Leadership Fund;
    • Defense contractor B/E Aerospace, which gave $50,000 to Restore Our Future;
    • Payday lender QC Holdings, which gave $25,000 to Restore Our Future; and
    • Weaver Holdings, the parent company of the Indiana-popcorn company known for its brands “Pop Weaver” and “Trail’s End,” sold by Boy Scouts across the country, which has donated $2.4 million to American Crossroads, the super PAC founded by GOP strategists Karl Rove and Ed Gillespie.

    Only a few other Fortune 500 companies have joined Chevron, which ranks third on the elite list behind only Exxon Mobil and Walmart, in making contributions to super PACs, and none has given as much as the energy giant.

    Caesar’s Entertainment Corp., for instance, ranked by Fortune at No. 288, has given $150,000 to Majority PAC, a group that is spending to help Democrats retain the majority in the U.S. Senate.

    “Fortune 500 companies are the least likely to be the ones who will be out in front giving publicly,” said Rick Hasen, a law professor at the University of California-Irvine. “They want to have influence over elections and elected officials, but they don't want to alienate customers.”

    By category, companies in the finance, insurance and real estate sector donated more than $15 million, “general business sector” firms gave about $14 million and energy sector companies contributed more than $11 million, according to the analysis.

    Unions, by contrast, have donated about $60 million to super PACs, from their treasuries or political action committees.

    The top union donors include the National Education Association ($9 million), the United Auto Workers ($8.6 million) and the AFL-CIO ($6.4 million). All of these groups have spent heavily on Democratic candidates.

    Money 'hiding in plain sight'
    Additional corporate money may be flowing through politically active nonprofits that don’t disclose their funders.

    “I strongly suspect that most of the corporate money is hiding in plain sight in trade associations like the U.S. Chamber of Commerce,” said Ciara Torres-Spelliscy, a professor at the Stetson University College of Law.

    For its part, the Chamber — which collects dues from companies such as Aetna, Chevron, Dow Chemical and Microsoft — has reported spending more than $35 million on political ads, which have overwhelmingly favored Republican politicians.

    Facts about Specialty Group Inc. are scant.

    Records filed with the Tennessee Secretary of State’s office show it registered on Sept. 26, listing 61-year-old attorney William S. Rose, Jr., as its agent. Rose’s $634,000 home — about a 30-minute drive from downtown Knoxville — is listed as its “principal office.”

    Yet the company’s money has made a huge impact.

    TODAY's Matt Lauer speaks with Democratic strategist Hilary Rosen and Republican strategist  Mike Murphy on Ohio's influence on the presidential race. They also offer opinions on what each candidate can do to seal the deal.

    After the cash infusion from Specialty, FreedomWorks produced numerous advertisements, including one that blasts Duckworth as a crony of former Illinois Gov. Rod Blagojevich, who was impeached and sentenced to 14 years in federal prison following a corruption scandal.

    Duckworth is a double amputee and Iraq War veteran. She headed Illinois’ Department of Veteran Affairs and later served in President Barack Obama’s U.S. Department of Veterans Affairs.

    FreedomWorks’ new ad features grainy footage of Duckworth and audio of her saying, “Gov. Blagojevich has charged me with the mission of taking care of my buddies, and that is what I’m doing.” But it leaves out the fact that when she said “buddies,” she was referring to other veterans and members of the military.

    FreedomWorks for America treasurer and legal counsel Ryan Hecker says the organization only supports candidates who are “ethically right.”

    Anton Becker, Duckworth's campaign press secretary, says it’s conservative outside groups who are peddling "lies."

    When asked for details about Specialty Group and the source of its contributions, Hecker expressed ignorance, and doubted that voters care about where the money came from.

    “We are in compliance with the law, and we are doing what we can to report to the Federal Election Commission,” he said. “If there’s an issue with Specialty, it’s their issue. It’s not our issue.”

    Andrea Fuller of the Center for Public Integrity contributed to this report.

    This story is a collaboration between the Center for Public Integrity and the Center for Responsive Politics. For up-to-date news on outside spending in the 2012 election, follow our Source2012 Tumblr and the hashtag #Source2012 on Twitter.

    More from Open Channel:


     

  • Delphi retirees say Obama administration betrayed them
  • Wind, flames, Our Fathers: the inside story of Breezy Point's terrible night
  • Ex-Penn State President Graham Spanier charged in child sex abuse scandal
  • Behind closed doors: GOP and Dems alike cloaked redistricting in secrecy
  • Wisconsin objects to Romney training manual urging incognito poll watchers
  • Super PACs, nonprofits helped Romney narrow Obama fundraising edge
  • N.C. neighbors aghast to learn drinking water contaminated for years
  • In Mali, land of 'gangster jihadists,' ransoms help fuel the movement
  • Plane truth: Millions spent on rarely used Gary, Ind., airport
  •  

    Follow Open Channel from NBCNews.com on Twitter and Facebook

     

     


    599 comments

    Welcome to the Corporate States of America.

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  • 14
    May
    2012
    2:54am, EDT

    Edwards case: Denial of dismissal bid is anything but routine

    John Edwards' defense team is eager to change the focus of the former presidential candidate's corruption trial from sex, lies and betrayal to the fine print of campaign finance laws. NBC's Lisa Myers reports.

     

    By Hampton Dellinger, Special to msnbc.com

    ANALYSIS

    The judge’s ruling was written on the lawyers’ faces.  Last Friday, after Catherine Eagles denied John Edwards’s motion to dismiss the six felony charges against him at the close of the government’s case, the former Democratic senator’s lead attorney sat red-cheeked and grim.  To his right, the typically stiff lips of the federal prosecutors curled into small grins.  

    While Edwards’ request to have the case thrown out for lack of evidence was a long shot, the decision highlights the ever increasing peril Edwards faces and previews what’s to come. The transcript of the argument is a worthy read for anyone whose interest in the trial is more than passing and, thanks to NBC News, it’s available here. For Edwards case followers in a hurry, here are four ways the seemingly routine motion is actually a big deal. 


    Odds of Edwards going to prison just increased
    When Edwards decided to contest the government’s claim that he violated the Federal Election Campaign Act (FECA) rather than reach a plea deal, his risk analysis included the hope that a judge would end the case long before jury deliberations began.  While such court-ordered judgments of acquittal are infrequent, they are not unheard of.  Indeed, in May 2011 a district court judge from the same appellate circuit (the Fourth) stopped the prosecution of a corporate lawyer on obstruction of justice charges because of the government’s failure to prove its case.  

    As lawyers for John Edwards prepare to launch a defense to charges he diverted campaign cash to fund a love interest on the side, there's one question everyone wants to know: Will he testify? NBC's Lisa Myers reports.


    Hampton Dellinger

    Hampton Dellinger, a litigation partner with Robinson Bradshaw & Hinson of Charlotte and Chapel Hill, N.C., is former deputy attorney general of North Carolina and has taught election law at Duke University Law School. In 2008, he sought the Democratic nomination for lieutenant governor of North Carolina.


    Edwards’ hope for a similar outcome rested primarily on the novelty of the government’s theory: never before has money from third-parties (Fred Baron and Rachel “Bunny” Mellon) to other third-parties (Andrew and Cheri Young with a smaller amount to Rielle Hunter) led to a candidate’s indictment under the FECA.  Last fall, Edwards spent hundreds of pages briefing that argument (i.e, that he had no “notice” that such an arrangement could be illegal and thus no criminal intent) plus other reasons for dismissal…and lost.   Last week, Edwards attorney, Abbe Lowell, spent 90 minutes again beseeching Eagles to end the prosecution…and lost. 

    For years, Edwards the plaintiffs’ attorney fought as hard as he could to overcome opponents’ efforts for judge-directed dismissals so the outcome of his clients’ personal injury claims could be determined by a jury.  Ironically, if Edwards the defendant had known for sure that his own case would go all the way to the jury, I’m not sure he would have rejected whatever the government’s best plea deal was. 

    How judge's ruling was unnerving for Edwards camp 
    In the run up to his motion argument, Lowell gently expressed to Eagles his hope that she would devote the weekend or at least much of Friday to considering his arguments before ruling.  Rather than rejecting the motion after days or hours of pondering, Eagles did so in minutes.  Moreover, the judge allowed that the “closest questions in my mind have to do with some of these venue issues” (i.e., did the crimes Edwards is accused of have a sufficient connection to the district where he is being tried).  Both the speed and substance of her decision suggest that Eagles has little concern about the prosecution’s theory or the quality and quantity of evidence presented in the government’s case. 

    Full trial coverage from NBC News and msnbc.com

    Analysis by Hampton Dellinger

    More bad news in battle over experts?
    In the face of Friday’s setback, the defense doesn’t appear to be shrinking from its chief argument for dismissal: that the government has not proved and cannot prove “that Mr. Edwards acted with knowledge that his actions would violate campaign laws.” Late Friday, the defense submitted its witness list for Monday.  Appearing first: Scott Thomas, the former Federal Election Commission chairman, who is prepared to testify that the prosecution “is without precedent in federal election law and that the FEC would not support a finding that the conduct constituted a civil violation much less warranted a criminal prosecution.”  The problem for Edwards is that the government is contesting vigorously the right of Thomas to testify as an “expert witness” and Eagles on Friday suggested she thought several FEC-related issues were “pretty straightforward.”  Such phrasing is not suggestive of a judge likely to let the former FEC chair testify broadly.  But at this point, Edwards will likely consider it a win if Thomas is allowed to take the stand at all.  

    Closing arguments previewed
    Friday’s motion hearing made something clear and it's bad news for Edwards: Andrew Young’s story sounds better when someone else tells it.  Skilled federal prosecutor David Harbach opened his oral argument reading excerpts from Young’s most Edwards-damning testimony.  Whether presented via the prosecutor, or Young’s wife, Cheri, the former political aide’s claim that Edwards orchestrated the sex affair cover-up is more compelling when separated from Young's hazy memory and admitted misstatements.  Similarly, Harbach was able to transform the testimony of other witnesses potentially off-putting to jurors (such as the long-winded Wendy Button) into an efficient, effective litany of evidence of guilt.  While Lowell is holding his own as quarterback of the defense team, Harbach’s ability to serve as a likeable standard bearer for the prosecution’s witnesses has to be making Team Edwards nervous -- very nervous -- as closing arguments fast approach.  


    Follow @msnbc_us

    112 comments

    The Government BS is endless. It will cost the taxpayers regardless of the decision

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