Abuse of Power and Culture of Corruption

Dean: Bush Still Refuses to Return Tom's Tainted Money

March 1, 2006

A report in the Toledo Blade this weekend showed the corrosive effect of the pay-to-play system concocted by President Bush's reelection campaign. According to the Blade, indicted Republican fundraiser Tom Noe "was so eager to become a Bush 'Pioneer' that he used a pair of former top aides to Gov. Bob Taft to launder campaign contributions to the President's re-election bid." [Toledo Blade, 2/25/06] H. Douglas Talbott and Doug Moormann were convicted of criminal charges stemming from their participation in Noe's scheme to illegally funnel more than $14,000 in campaign contributions.

The convictions of Talbott and Moormann follow Noe's indictment earlier this month on 53 felony counts related to his alleged theft of millions of dollars from the Ohio worker's compensation fund and his indictment in October on charges that he laundered $45,400 into President Bush's reelection campaign.

After raising more than $100,000 for the Bush campaign, Noe received invitations to a White House Christmas Party and a White House ceremony honoring the Ohio State University football team. Noe was also invited to attend an "Ohio political strategy session" that included Bush's campaign manager, Ken Mehlman, and Bush confidante Karl Rove. [Toledo Blade, 2/25/06; Toledo Blade, 7/7/05] President Bush has returned $4,000 in contributions made directly by Noe and his wife, but has refused to return the rest of the money Noe raised.

"The longer President Bush refuses to return Tom Noe's tainted money and the more the American people learn about the access Tom Noe bought with his illegal contributions, the more apparent the President's complicity in this scandal becomes," said Democratic National Committee Chairman Howard Dean. "President Bush's campaign created a fundraising scheme that was riddled with opportunities for abuse. Tom Noe was willing to do anything, including break the law, to raise the money he needed to buy influence, and access to the Bush White House.

"Together, America can do better. President Bush needs to return Tom Noe's tainted money and join Democrats in fighting to restore honesty and dignity to all levels of government by supporting legislation that renews honest leadership and open government."

The following is a fact sheet prepared by the DNC Research Department on the corruption fostered by the Bush-Cheney campaign fundraising scheme:

Tom Noe Just the Tip of The Iceberg

During the 2000 and 2004 elections, the Bush Presidential campaign established elite fundraising clubs, for individuals who could raise money in the 6 figure range. Those who raised over $100,000 were designated "Pioneers" while those raising over $200,000 were deemed "Rangers." Eight of these elite fundraising pioneers have been convicted, indicted, or named in federal corruption investigations. All together, these corrupt fundraisers banked $900,000 for Bush's two presidential campaigns.

THOMAS NOE, BUSH PIONEER
Noe Under at Least Six Separate Investigations. Noe was tapped by the Voinovich Administration to manage a portion of the Ohio Workers' Compensation Bureau's pension funds. "He also happened to be a dealer in rare coins. And in 1998, the Ohio Workers' Compensation Bureau agreed to invest in a rare-coin fund that he controlled as a way to hedge its holdings in stocks and bonds, an investment that experts have called highly unorthodox. Mr. Noe's lawyers said that as much as $13 million of the state's $50 million investment in his two funds could not be accounted for. Mr. Noe, meanwhile, has become the focus of at least six investigations or audits involving either his handling of the coin investments or his campaign fund-raising. Federal investigators are also looking into his contributions to President Bush's 2004 campaign as a 'Pioneer,' raising more than $100,000." [New York Times, 5/28/05]

JACK ABRAMOFF, BUSH PIONEER
Jack Abramoff: Bush Pioneer, Pleaded Guilty In Federal Corruption Investigation. On January 3, 2006, Jack Abramoff pleaded guilty to Federal charges of tax evasion, conspiracy, and mail fraud in connection with the federal task force investigating his lobbying practices [United States of America Vs. Jack A. Abramoff Plea Agreement, 1/3/06]

RALPH REED, BUSH PIONEER (2000) & RANGER (2004)
Reed: Named In Investigation Of Abramoff Payments.
The Senate Indian Affairs Committee, as part of its ongoing investigation of Jack Abramoff, subpoenaed Reed. In addition, investigators are looking into a $4 million payment that Abramoff made to Reed. [Washington Post, 4/27/05; 4/22/05]

JAMES TOBIN, BUSH RANGER
Tobin Indicted For Phone Jamming Conspiracy. Bush Ranger and former NRSC regional political director James Tobin has been indicted on four counts of conspiracy. The charges stem from Tobin's work in the 2002 Senate race between former NH Governor Jean Shaheen (D) and John E. Sunnunu (R). Tobin was accused of conspiring to jam the phone banks of the Democratic Party and labor organizations on election day. [Manchester Union Leader, 8/13/05]

SAM AND CHARLES WYLY, BUSH PIONEERS
Wyly Brothers Involved in a State and Federal Tax Investigation.
According to news reports, Sam and Charles Wyly, better known as the "Wyly Brothers" are under investigation for tax evasion. In early 2005, Michaels Stores Inc. revealed that U.S. Securities and Exchange Commission and the New York County District Attorney were investigating the stock transactions of Charles and Sam Wyly, the company's President and Vice-President. The billionaire Bush patrons are accused of setting up offshore trusts on the Island of Man, a noted tax shelter in the Irish Sea, in an attempt to evade paying taxes on stock options. [Dallas Morning News, 6/4/05]

ROBERT KJELLANDER, BUSH PIONEER
Kjellander Subpoenaed in Corruption Investigation. Robert Kjellander was named RNC treasurer in early August of 2005, soon after it was reported that a federal prosecutor was investigating corruption at the Illinois Teacher's Retirement Systems, a state run teacher's pension fund. The subpoena specifically sought records relating to Kjellander's receipt of $4.5 million in fees from the Carlyle group, for helping to land the business with the pension fund. [AP, 8/10/05]

BRENT WILKES: BUSH PIONEER
Brent Wilkes: Bush Pioneer, Under Federal Investigation in Corruption Probe. Agents from the FBI, IRS, and Defense Department raided the home of ADCS Inc. Chief Executive Brent Wilkes, in connection with an ongoing corruption investigation of Republican Congressman Duke Cunningham. "Neither law enforcement officials nor the company would comment on the reason for the search. Wilkes is a former business associate of Mitchell J. Wade, the head of MZM Inc., a defense contractor under investigation by a San Diego grand jury. That inquiry was prompted by newspaper reports in June suggesting that Wade had done financial favors for [Representative Duke] Cunningham (R-CA)." According to FEC filings, Wilkes and his wife have donated $139,806 to politicians since 2001, not including the $100,000 Wilkes raised as an elite fundraising Pioneer for Bush in 2004. [Washington Post, 8/18/05]