Skip to main content

Looking at the way the traditional media has covered the recent stories concerning both Tom Daschle and Michael Steele, it is evident that a double standard exists.  

What Daschle did was underreport his income by not taxing the benefits of a personal driver provided by someone he was maintaining a business relationship with. At worst, he broke IRS rules and as such is subject to a  fine plus interest which he paid when he amended his tax returns. Steele, on the other hand, engaged in two frauds, paying for services not rendered AND reporting that the services he paid for were actually performed.

Speaking in his defense, Steele opted for the "shoot the messenger" defense, slamming his accuser as a "convicted felon." What Steele omitted in that description was that the accuser, Alan Fabian, once served as Steele's campaign finance director during Steele's failed 2006 run against Ben Cardin for U.S. Senate.

The Washington Post reported that Fabian was accused of orchestrating multimillion-dollar frauds unrelated to the campaign, according to a confidential court document.

Hoping prosecutors would recommend a lighter sentence, Fabian provided them with information about Steele and said he would be willing to testify against him, according to the document, a sentencing memorandum prepared by Fabian's attorney and filed under seal in the fall before Fabian's sentencing in federal court. The U.S. attorney's office did not recommend a shorter prison term, and Fabian was sentenced in October to nine years behind bars.

Steele is accused of paying his sister and a firm she established for work she did not do. In plain English (which Steele supported as being the OFFICIAL LANGUAGE of the state of Maryland) he is continuing the upstanding Republican tradition of funneling slush fund money to supporters, or in his case, to a family member.

In the defense memorandum, Fabian cited four specific transactions. In addition to the payment to Steele's sister, Fabian said that the candidate used money from his state campaign improperly, that Steele paid $75,000 from the state campaign to a law firm for work that was never performed and that Steele or an aide transferred more than $500,000 in campaign cash from one bank to another without authorization.

A spokesman for Steele refuted the allegations. Moreover, the spokesman, Curt Anderson, said the payment in question was unrelated to the inquiry. Additionally, Anderson noted that Steele had the authority  to transfer the money from one campaign account to another.

However, supporters of Steele's former running mate, ex-governor Robert Ehrlick Jr., insisted that the money was only for state campaign related activiites. More importantly, Ehrlick's allies were furious because they had raised the bulk of the money and hoped it would be used to support OTHER Republican candidates statewide and not be used as a slush fund by Steele.

Campaign records indicate that $37,262 paid to Brown Sugar Unlimited covered catering and Web services. But it came 11 months after Turner, a pediatrician who lives in Potomac, had legally dissolved the company.

Steele said that not paying his sister for her work would have been a violation of campaign finance law. He criticized The Post for publishing a story where "there is no story" and said he provided receipts to prove the expenses were legitimate. On Friday, a spokesman for Steele provided a receipt for catering costs totaling almost $15,000 for two events, about half the total. The spokesman said they were searching for receipts to document the rest.

George Stephenopolis, the host of This Week on ABC, questioned Steele yesterday about the fact that Steele presented a payment to his sister to a company that no longer existed.

"That, I don't know about. What I do know about is the fact that, as she understood it, the company was still in existence. Her lawyers were telling her they were in the process of dissolving the company, so at the time when the checks were written back to her to reimburse her, she just said, 'Go ahead and write the checks to the company,' because the company had, you know, done the services that were provided."

According to Reporter Henri Colvin, Anderson said Turner "did a lot of media stuff" for the campaign.

He later provided a copy of an invoice for nearly $15,000 for catering services for one event in October 2006 and for another in July 2007. The invoice was dated December 2006, a discrepancy Anderson said was a typographical error.

Federal election law permits a candidate's family members to be paid for work on a campaign. Any compensation must be for actual services and must be at a fair market rate.

In contrast,Daschle  filed amended tax returns for 2005, 2006 and 2007 to reflect additional income for consulting work, the use of a car service and reductions in charitable contribution deductions. He filed the returns after the announcement that Obama intended to nominate him to head HHS.

One reason for the focus on Daschle's amended returns is that a similar issue over the use of a personal driver forced NY State Comptroller AlAllan Hevesian Hevesi to resign 2006.

Hevesi was accused of using government services ( a driver) for his wife, who suffers from dementia. Former GOP presidential candidate Rudolph Giuliani was accused of similar behavior, using NYPD personnel to drive then girlfriend Judith Nathan around Manhattan when Giuliani was mayor.

One difference between Hevesi and Daschle is that Hevesi's transgressions were done on the dime of NY State taxpayers as he was using the driver provided as a perk of being NY State Comptroller. Daschle, on the other hand, merely created the appearance of impropriety because the driver was provided free of charge by a lobbyist whom Daschle was consulting for.

What Daschle did was stupid. Was it as clueless as Treasury Secretary Geitner underpaying his taxes? No, but unfortunately for Daschle, timing is everthing as details of his tax issue were revealed AFTER Geitner.

Moreover, IMO the Daschle nomination was not squashed by this news since the chummy club that is the Senate seems to have a completely different set of rules for its members and ex members than the rest of us. Basically, the Daschle nomination was dead in the water when TPM Muckrackerreported Daschle's links to lobbyists.

The nomination of Steele to head the Republican National Committee is problematic for a myriad of reasons. He was chosen because the two of the other contenders for the post were basically KKK holdovers. One distributed a CD to prominent Republicans with songs like Barack the Magic Negro and the Star Spanglished Banner." The other candidate announced that he had been a life long Republican due to that party's opposition to desegregation.

So the GOP picked an African American to put a nice face on the blatantly racist history of the modern Republican Party. TheGOPocrites also picked a man that falsely tried to present himself TWICE to Maryland voters as a Democrat, thereby tricking voters(mainly African Americans) into supporting a man whose views they likely found repugnant.

In other words, the GOP selected a man that feels so weakly in his political convictions that the only chance that he might have in getting elected is to hoodwink voters into believing that he shares the same beliefs as they do.

Over the years, money trouble has been a persistent problem for Steele. His first race for public office, a 1998 bid for the Republican nomination for state comptroller, ended nearly $35,000 in debt, much of it to his sister. He was fined twice by state officials for missing deadlines to file campaign finance reports and was in debt and had faced foreclosure in 2001, the year before he was selected as Ehrlich's running mate. The state party threw Steele a financial lifeline, awarding him an unusual $30,000 consulting contract.

Originally posted to Dirk McQuickly on Mon Feb 09, 2009 at 07:36 AM PST.

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

    •  Here's the absolutely crazy double standard... (2+ / 0-)
      Recommended by:
      Dirk McQuigley, smkngman

      Remember how Steele said "use wright" "use ayers"

      Monica Turner, Steele's sister and major donor on his political campaigns has a child by a huge convicted Crack Cocaine dealer. He paid her way through school, and gave her a significant number of cars, furs etc...

      So far no one has brought this up in connection with her financial support of his efforts.

      Did the money come from Mike Tyson or the drug dealer?

      •  Jake Tapper's Reporting here... (1+ / 0-)
        Recommended by:
        Dirk McQuigley

        "But Turner's romance with Tyson isn't as anomalous as it might seem. Long before Turner met Tyson, she dated another guy who had a tendency to end up standing in front of judges explaining his behavior: Eugene B. Byrd, a fast-living, drug-dealing club manager old enough to be her father."

        "By the late '80s, Byrd had become manager of Les Nieces, a popular club on upper 14th Street NW. In 1989, Turner, then 23, was pregnant with Byrd's daughter."

        ""She came with him from time to time into the office," says Byrd's attorney at the time, Bill Moffitt, "and we discussed matters that were pertinent to that point. She was going to school at the time and was preoccupied with becoming a professional. She was clearly fond of Gene and was a very nice young woman. Clearly very smart....She was somebody who wanted a future for herself.""

    •  Jake Tapper is starting down the Crack Cocaine .. (0+ / 0-)
  •  My wish: (1+ / 0-)
    Recommended by:

    the the withdrawal of Daschle and the future resignation(hopefully in the very near future) of Steele are a sign of a new era in American politics. It's not OK no matter which party you belong to.

    CHRISTIAN, n. One who believes that the New Testament is a divinely inspired book admirably suited to the spiritual needs of his neighbor. A. Bierce

    by irate on Mon Feb 09, 2009 at 07:42:31 AM PST

    •  Daschle: Neville Chamberlin Democrat (4+ / 0-)

      Daschle, Harry Reid, and other DLC toadies practice the bogus form of "bipartisanship" as defined by the GOP. They are aligned with special interests although not knee deep in criminal activity like their GOP counterparts.

      As Senate Majority Leader, Daschle was flacid. He was ineffective at communicating the Democratic position through the media AND undermined the progressive agenda at every turn. IMO TPM did a great service to Americans to undercut his nomination and spare us from another Liebercrat in the Cabinet.

  •  Ultimately It All Rests on That Typo (2+ / 0-)
    Recommended by:
    Dirk McQuigley, soms

    $15,000 for catering one event during a campaign for statewide office?  Perfectly reasonable.  The only "smoking gun" is the date, which Steele claims is a typo.  He hasn't actually done anything wrong unless his sister's company never provided the service in question.  Not sure what the official response is on the "her company no longer existed" bit.  Even if that's true, if the invoice is legit the right thing was to pay it.

    I assume Steele lies about everything of course, because I hate him... but would need more evidence to say he was actually guilty of anything.  In Daschle's case he's basically admitting stupidity.

    If spittle & tooth=vigor & youth Bill-O & Savage won't grow any older If wishes & dreams=bitches & beams We'll all live in skyscrapers bu

    by TooFolkGR on Mon Feb 09, 2009 at 07:43:09 AM PST

    •  Suspiciously convenient typo (2+ / 0-)
      Recommended by:
      TooFolkGR, MariaWr

      Of course it depends on whether or not the invoice was computer generated. Some automatically provide the actual date and are hard to back date. Moreover, it raises additional questions about Monica Turner at minimum and also the person running the Steele campaign fiances ..which was Fabian.

      My guess is that Fabian did NOT approve of these expenditures because if he signed off on them, it is also his ass responsible for violations of campaign finance law since he was the treasurer.

      Another issue is where was the check made out to a company that no longer existed deposited. Was it made out to Monica Turner? If the check was deposited and was made out to Brown Sugar, that would probably have triggered an inquiry by the depositing bank and also the bank from which the check was issued.

      •  It Definitely Is (0+ / 0-)

        But either the event happened or it didn't, either the thing was catered or it wasn't, and either her company did it or they didn't.

        There would have had to have been 200+ people there for a catering bill like that.  These three facts should be things that can be confirmed or disproved.

        If spittle & tooth=vigor & youth Bill-O & Savage won't grow any older If wishes & dreams=bitches & beams We'll all live in skyscrapers bu

        by TooFolkGR on Mon Feb 09, 2009 at 08:15:00 AM PST

        [ Parent ]

  •  Steele embraces his GenJones identity in video (0+ / 0-)

    Relevantly, Michael Steele, born 1958, is a member of Generation Jones---the generation between the Boomers and Gen X'ers.  As many influential media venues (New York Times, Time Magazine, NBC, Newsweek, ABC, etc.) continue to point out, the Boomers have passed the leadership torch to the Jonesers.

    Obama, and many of his Administration's top players, are Jonesers, including Geithner, Duncan, Rice, Summers, Emanuel, Jarrett, Napolitano, and Axelrod. The GOP is also now led by Jonesers, including Steele, Palin, Pawlenty and  Sanford.

    There is a brilliant op-ed about exactly this topic—GenJones as the new generation of leadership-- in USA TODAY last week: .

    In this short video, Steele discusses his own Generation Jones identity, and the relevance of this new generation of leadership:

    I’m very curious to see what Steele’s early several weeks at this new job will look like.

  •  Steele Comes Out Of The Crazy Corrupt Erlich Crew (0+ / 0-)

    They were a bunch of crooked circus clowns

  •  Is Steele a real live "Clay Davis" (0+ / 0-)

    Taking contributions from drug kingpins. Sounds just like what Clay Davis was doing in The Wire.


  •  Or could it Krusty's Klown Kollege? (0+ / 0-)

    That would make Steele Sideshow Bob, who just happens to be Republican.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site