Thursday, October 28, 2010

Todd Staples' slimy pyramid scheme

Even compared to the vast corruption of Rick Perry, the incumbent agriculture commissioner occasionally manages to one-up the Eagle Scout/Aggie yell leader.

A criminal case from the mid-1990s refers to an "endless chain scheme" called the Friends Gifting Network (or the "Friends Gift Network" or  "Friends Network" or "Friends Helping Friends", and a variety of similar names).

In 1994, Todd Staples participated in this pyramid scheme and had family (his brother-in-law) participating in it. A criminal complaint was filed in Anderson County -- the seat is Palestine, Staples' hometown -- and Staples' brother-in-law was arrested and charged. The Palestine city attorney followed up by requesting help from the Anderson County district attorney for assistance in investigating the illegal pyramid scheme. (Staples is between elected-official jobs at this time; he has previously served on the Palestine city council, and for the years 1990 and '91 as mayor pro tem.)

This document reveals that the case was put on "hold" in 1994 and then dismissed in '96.

The case was dismissed because Todd Staples -- who was elected state representative in a special election to fill a vacancy in 1995 -- voted in favor of legislation that legalized the crime for which his brother-in-law was charged. This had the added benefit, of course, of making it impossible for Staples himself to ever face any charges or even be questioned in detail about the matter by a prosecutor, or the media.

But Staples wasn't finished. From the press release:

Staples and others managed to escape prosecution for their participation in the illegal enterprise, and court records reveal that Staples and Jeff Herrington, the Anderson County DA at the time, worked in concert to get the officer that investigated the scheme and arrested Staples’ brother-in-law removed from his job. At the time, the same police officer who investigated Staples’ brother-in-law was raising serious questions concerning why Herrington and his office received an unauthorized share of federal drug forfeiture funds. Additionally, a member of Herrington's staff had been implicated along with Staples in the pyramid scheme.

You read it right. Staples exacted revenge on the officer who investigated the case, Commander Jerry Powell of the Texas DPS, by colluding with DA Herrington to remove Powell from his post.

According to additional court records, shortly thereafter, Staples became involved in a series of events leading to the removal of a narcotics officer who arrested his brother-in-law and was the lead officer investigating the Friend’s Gifting Network.

Court records show that Staples’ facilitated meetings with the head of the Texas Department of Public Safety at the behest of, among others, the same Anderson County District Attorney whose staff member was involved in the pyramid scheme, in order to discuss removal of the police officer.

Court filings also show that, were the word of Staples’ high-level participation in the Friend’s Gifting Network become publicly known prior to the 1995 special election to replace State Rep. Elton Bomer, it would have likely ended Staples’ political career. The same court filings show that Staples’ assistance to the District Attorney came at a time when he and his office were accused of receiving an unauthorized share of funds seized during a federal narcotics investigation. The same police officer who arrested Staples’ brother-in-law had initiated inquiries to determine why the DA’s office had received this share of funding.


This document contains a transcript of an undercover phone call regarding Friends Gifting Network; these documents show Staples' rise to "vice-president" in the Friends Network pyramid scheme and contain the police case file on Staples' brother-in-law. This document is the transcript of the arrest in which Staples' brother-in-law helps entice the undercover police officer to participate in the pyramid scheme.

Finally, these documents contain the response to Staples' Motion for Summary Judgment, and the Affidavit of Plaintiff talks about Staples' motivation, mentioning the case's potential for damaging his budding political career.

Let's review: Todd Staples participated in an illegal pyramid scheme which bilked hundreds of East Texans out of thousands of dollars. The crime was investigated and his accomplice brother-in-law charged. Staples went on to be elected to the Texas Legislature, where he voted in favor of a bill which made illegal pyramid schemes legal, exonerating his brother-in-law in the process. Staples then conducted a personal vendetta against the investigating officer of the case.

All so as not to damage his future political viability. Because as all Texans are aware, you never know when the agriculture commissioner might one day become the longest-serving governor in the history of Texas.

Do we want to really reward this slimeball with re-election? No, we don't.

We want a new Commissioner of Agriculture (whose greatest crime, it should be noted, happens to be not wearing his seatbelt, and working out a payment plan with the IRS).

Update: Read this Dallas Morning News story and don't miss reading the comments.

Wednesday, October 27, 2010

The House may be lost

Some additional insights here from electoral-vote.com worth knowing.

Long-time political observer Charlie Cook is predicting the Republicans are likely to win 198 seats in the House, with another 47 being tossups. If the Republicans win even half of these, that gives them the majority. But in wave elections most of the tossups go the same way, so the odds of the Republicans winning 30 or more of the tossups are reasonably good. Cook's best guess is that they will pick up something in the range of 48 to 60 seats. This would put this election on a par with 1994, when they picked up 52 seats in the House.

In the Senate, he is predicting a Republican gain of about 8 or 9 seats. If that happens, all eyes will be on Sen. Ben Nelson (D-NE) and Sen. Joe Lieberman (I-CT) to see if they jump ship. However, both of them are keenly aware of what happened to Sen. Arlen Specter (D-PA) when he did just that: he was defeated in a primary. Both of these could expect nasty primary fights if they became Republicans, especially if it were to save their own skins rather than out of some deep-seated convictions that have been rather absent until now. Nelson has to worry about the fact that Nebraska is full of Republican politicians who would primary him with the slogan "vote for a real Republican." If he decided to switch, his real battle would be the primary--where only Republicans can vote--rather than the general election, where Democrats can, too. Lieberman is so unpopular and unpredictable that anything is possible with him, but he has nothing in common with Jim DeMint and even less with Rand Paul and Sharron Angle, so he is likely to continue to caucus with the Democrats.

If the Republicans capture the House, as Cook, Nate Silver, and other close observers predict, the new Speaker of the House is virtually certain to be Rep. John Boehner (R-OH) (which he prefers to pronounce "Bayner" rather than "Boner" or "Booner"). Boehner has an everpresent deep tan and smokes two or three packs of cigarettes a day. The Washington Post has a long profile of him today.

Boehner has a strange history within the caucus. He was one of the authors of the Republicans' "Contract with America" that propelled them to victory in 1994. But in 1998, he was booted out of his leadership position, only to be elected majority leader in 2006. He is more of a back-room wheeler-dealer type person than an "ideas" man, as former Speaker Newt Gingrich fancied himself. Still, if the Republicans have a small majority starting in January, he is going to need all his people skills to rein in the fractious tea partiers intent on changing Washington the moment they arrive. It is likely that the tea partiers will form their own coalition. If they get more members than the Republicans' majority, they get a de facto veto on everything he does, much as the Blue Dogs have with the Democrats. However, since the brunt of the voters' wrath is going to fall on the Blue Dogs next Tuesday, the Democratic caucus is going to move to the left, and with the tea party members of his own caucus pulling him to the right ... he is not likely to accomplish much.

If Boehner moves up, the other Republican leaders will move up. Rep. Eric Cantor (R-VA), the only Jewish Republican in Congress, is likely to become majority leader and Rep. Mike Pence (R-IN) would then become whip. Boehner is not very close to either of these -- just as current Speaker Nancy Pelosi doesn't especially care for her #2, Rep. Steny Hoyer (D-MD). Boehner tends to hang with some of the rank-and-file Republicans, especially Rep. Tom Latham (R-IA). Boehner lives in a basement apartment he rents from one of his many lobbyist friends. His wife, Deborah, lives in Ohio.