Gallagher to Face Two Ethics Complaints

The Florida Ethics Commission on Friday found probable cause that state Chief Financial Officer Tom Gallagher violated state law on at least four instances when he bought the stocks of four companies that either had state contracts or were regulated by Gallagher’s office. To read more, click here.

Comments

[Baghdad_Tom]

When will this man have the dignity to drop out and save the party from a divisive fight?

No, I'm not afraid of a fight.

Yes, a legitimate debate of ideas is good.

However, this is a man that is so far behind he cannot win. Ask any impartial analyst. The only thing he can do is deplete much needed resources and weaken the nominee (Charlie Crist) through desperate negative attacks.

The race was already over. It was over before today.

Now it is worse.

Let's look at the reality. He will be found guilty and fined on two violations of insider trading.

Does anyone believe that the SEC will now look into this?

Next, there are more issues and complaints out there. Remember St. Joe and the $270,000 in stock he held while he was making a motion?

Remember the state employee who manages his "real estate" holdings?

What about that airplane deal?

To recap,

We have someone who is someone who by his own admission is at least 20 points behind with 5 weeks to go,

He just found out the Crist got more than $500k more in matching money and was behind by more than $1.5 million dollars,

He has now been found guilty of insider trading and the only detail is what is the fine,

Other complaints and investigations are coming, both at the state and federal level,

There is no shock and awe,

And he is being beaten on the ground-in the air-and tactically at ever move,

The extreme candidate makeover is not working,

No one has laid out a plausible or credible strategy for victory,

They whisper runors everywhere, but it is they who have the high ranking members of their staff and inner circle who are homosexual,

So they are left with what?

Yes, they have some money, but no hope...please, please, please, someone provide a good reason why Tom Gallagher should continue?

You can't!

No one is afraid of you. in fact, we would relish taking You apart bit by bit, piece by piece, making you and you supporters embarrassed to ever show you face in public ever again.

But who does that serve? only the democrats.

Tick tock. time to go. There is a place for all, but I would guess that there are only a few more days of shopping until your time runs out.

Stop being Baghdad Tom. This race is over admit it. Admit you have been careless, stupid, and evern corrupt. If you can't save your election, save your reputation, your wife, your loyal friends and supporters, and you sone from what will come.

Do the right thing. In your heart you know. If you have truly had a conversion, this shouldn't even be a question.

[Baghdad_Tom]

Just when you thought you've seen it all. A friend of a friend send me this.

I AM NOT MAKING THIS UP. GREAT NEWS???

WHEN THEY ARE FOUND GUILTY AND THE OTHER COMPLAINTS ARE HEARD WHAT WILL THEY SAY? JUST WHAT WE WANTED????

If after you read what's below and haven't been one of the many to call the Crist Campaign this week to sign on, you will now.

How do you they ever think have any credibility? Any?

From: Brett Doster
Subject: STATEMENT BY TOM GALLAGHER

Gallagher Team:

We have some great news today.

As you know, earlier this year, Treasurer Gallagher was the subject of politically-motivated complaints filed before the Florida Ethics Commission. The Commission met today to review the results of its investigation and to determine whether there was any reason to believe the Treasurer had violated any of our state’s ethics laws.

The Commission found that every single issue raised by others in their complaints was dismissed. The Commission found that the Treasurer did not misuse his office; that he did not give preferential treatment to any company in which he owned stock; and that the Treasurer did not use any “inside information” for his personal gain.

This is validation of Tom’s character and his commitment to leadership on behalf of the people of Florida.

The Commission did find that the Treasurer may have improperly held small amounts of stock in two insurance-related companies for brief periods several years ago. The Treasurer himself brought these issues before the Commission and asked for a review to clear up any confusion about the matter. Both issues involve technical violations, and the Commission found that there was no intentional wrongdoing on the Treasurer’s part.

There will be no further investigation by the Commission.

The Treasurer’s statement is attached. We’re happy to have this behind us.

We have 39 days left on this campaign. Let’s go win
Campaign Manager
Gallagher for Governor

Tom Gallagher for Florida Governor 2006
Political Advertisement. Paid for and approved by Tom Gallagher, Republican, for Governor

[David]

Hey Baghdad Tom.
Guess what -- probable cause doesn't mean he's guilty of anything. Case in point -- the Ethics Commission found there were two counts of probable cause against Charlie when he was running for Attorney General. The charges were later dropped.

This doesn't help the campaign but it's also clear the Ethics Commission didn't find any insider trading going on either. They also dropped two charges.

[Conservative_Voter]

Gallagher..What a DISATER!!!So much could be said!!!its simple TIME TO GO GALLAGHER!!, GET OUT THE RACE!! and stop dragging down other Republican races with your "Culture of Corruption" disasters!!!

[Jim Johnson]

David, you are right. But the headlines are not good.

The Times says "Tom Gallagher to face ethics charges"

I can see that in an attack piece. The details are not relevant - Tom will have to spend money to explain that it only means someone thinks he "might have" done something wrong.

Consider how many other headlines can be used like that (Where's C.V. when you need him/her?)...

Down in the polls, down in the money, and way ahead in the negative headline count... I am about ready to say it's time to stick a fork in him. He's done.

[I drank the kool aid]

Brett,

Your friends are worried about you. Honest! It's one thing to put up a good fight. It is totally another to defend he who doesn't deserve it, simply because you can't admit you made a mistake. What would Jesus do?

-Your true friends.

the story is out on a friday night, gallagher camp spun it perfect. inning over - crist is up to bat

The fat lady is mounting the stage, clearing her throat, and getting ready to start singing "So long its been good to know you..."

Down by 20-30 points in the polls, it just got worse for TG. The Ethics charges are bad enough, but Doster's spin is akin to throwing red meat at the hungery press dogs, who really lay it to you when you tell bald face lies, like Doster's press release saying "we have great news today...

This story will run in the press on Saturday and again next Wednesday when the hearing transcript is released, which will hardly reflect "great news." Rather, it will probably show TG's lawyer(s) arguing hard against the charges...Expect some stories to be drippiong with sarcasm.

Over the next week, also expect saavy friends of Tom to start quietly telling him that the time has come to hang it up

The last post was by zenator, who is still trying to figure out how to use this new format

I thought Tom was bad but it looks like Brett sold his soul.

gallagher is toast. pack it in and let the party move forward.

[TrueBelieverCRST]

I hear he kept Ameritrade up on his office computer all day long. Nice job Tom!

It is time to jump ship everyone, its sinking fast.

Is the St. Pete Times employed by the Crist for governor campaign?

Apparently. The liberal bias is nauseating.

gopn1

Gallagher has taken the tite of the
most embarassing Republican from Harris. This guy might yet end up in prison stripes!

the "gopn1" post must be a Democrat!! as only Democrats would be rooting for Gallagher to gurantee Democrats will win in November.

First of all the Dems don't have a prayer in Nov except with Bill Nelson.

Secondly,wishinful thinking on the rest of your remarks.

gopn1

“Name for me one governor of Florida in modern times, one major candidate who is running while facing probable cause findings under Florida ethics laws,’’ said Mac Stipanovich, a Tallahassee lobbyist and Republican strategist.

Name for me one governor of florida in modern times, one major candidate who is gay.

Brett,
I deeply respect your tenacity to hang in there for a client who is about to get pummeled in the Sept. 5th primary, but come on, your response to the Friday vote was a mischievious blurring of reality. You know better!

While Brett is whistling past the graveyard, the press sleeps and takes in the spin without any investigative work.

How else do you explain them making 7,000 shares of stock and a small gain or loss.

Nice spin, might be the best you've done so far. Once you've lied to yourself enough about the conservative conversion, this must be easy.

But let's look at the facts. Try to deny this Gallagher kids:

Day Trading…

• He made most of his trades during the day, from his state office, when he should have been attending to his official state duties.

• Tom Gallagher traded on margin (borrowed money). His 2002 Tax Return shows a $9,031 investment expense for interest charged on his margin account. His 2003 Tax Return shows a $8,043 investment expense for interest charged on his margin account.

• Trading on margin is a staple of day trading. See the website of the Securities and Exchange Commission, www.sec.gov/investor/pubs/daytips.htm.

• A “pattern day trader”, a certain type of day trader, is defined in part by the New York Stock Exchange as a customer who executes four or more day trades within five business days. See the website of the NYSE at www.nyse.com/pdfs/im01-9Microsoft%20Word%20-%20Document%20in%2001-9.pdf.

• Arthur Levitt, chairman of the Securities and Exchange Commission, noted in a recent speech that one state found that 67 out of 68 day traders at a company lost money.

• Levitt, often a critic of day trading, is concerned that more people may be undertaking day trading strategies without understanding the risk and difficulty involved. He has said many day traders are gambling -- not investing.

• One former trader said day trading is worse than gambling. "Gambling has rules," he said. (Gamblingmagazine.com)

• Gallagher is the subject of an investigation by the Commission on Ethics because he owned insurance stocks in 2002 while he was the state's insurance regulator, and he owned stock in an energy company in 2004 when he voted in favor of the company's project as a Cabinet member. They found probable cause of 5 violations of state law yesterday.

Details…

• On Saturday, January 22, 2205, Tom Gallagher posted his tax returns for the years 2000-04 in response to allegations of financial impropriety. Those tax returns reveal the following:

2002

• Tom Gallagher, while Insurance Commissioner in 2002, day traded 5.2 Million dollars in stocks using Ameritrade from his state office. Those trades consisted of 5.221 Million in purchases, and 5.229 Million in sales.

2003

• Tom Gallagher, while Chief Financial Officer in 2003, day traded 6.7 Million dollars in stocks using Ameritrade from his state office. Those trades consisted of 6.76 Million in purchases, and 6.743 Million in sales.

• In 2003, Tom Gallagher made 494 trades. There are approximately 250 trading days, or days when the markets are open, a year.

• In 2003, Tom Gallagher made 2 trades valued at over $200,000, 27 trades over $100,000, 82 trades over $50,000, 245 trades over $20,000, and 309 trades over $10,000.

• Tom Gallagher made 20 trades of one stock in a single day on Monday, August 4, 2003. On 15 different days, he traded at least 10 times in a single day, and on 45 different days traded at least five times in a single day.

2004

• Tom Gallagher, while Chief Financial Officer in 2004, day traded more than $490,000 in stocks using Ameritrade from his state office. Those trades consisted of $492,141 in purchases and $434,795 in sales.

• In 2004, Tom Gallagher made 122 trades. He made 1 trade over $60,000, 12 trades over $20,000, and 41 trades over $10,000.

2002-2004

• The total amount day traded by Tom Gallagher over the past three reportable years is 12.4 Million dollars.

• In 2003-04, Tom Gallagher made 616 trades. The number of trades made in 2002 is not available.

• From 2003-04, Tom Gallagher made 2 trades over $200,000, 27 trades over $100,000, 383 trades over $50,000, 257 trades over $20,000 and 350 trades over $10,000

• Stocks were traded Very Quickly: $1.2 Million Worth of Stocks were bought & sold in 1 day or less, $3.1 Million in 5 days or less

• For 2003-2004, there were $7.1 Million worth of Stocks bought & sold in 28 days or less. 70% of all Trades were completed in less than 30 days

2005

• Republican candidate for governor Tom Gallagher owned stock in St. Joe Co. last year when he voted to rank some of the company's vast land holdings as a priority for state acquisition.

• Gallagher, didn't disclose his 4,000-share stake in St. Joe when the Cabinet voted on the land rankings Feb. 16, 2005. The $270,000 investment was Gallagher's biggest gamble by far since he began playing the market using an online brokerage account four years ago.

• Gallagher's brief ownership stake in a company with significant political clout and the largest private land holdings in Florida.

• St. Joe is a company whose financial health is so reliant on government approvals that the land developer mentioned the Florida Cabinet among the potential "risk factors" to growth in the firm's annual report to investors in 2005.

• Gallagher did not own his St. Joe shares for long. He began buying them on Jan. 10, 2005, and sold all of them by March 21, 2005, netting a profit of $3,716.

• At the 2005 Cabinet meeting, Gallagher made the motion to approve an annual list that ranks projects for purchase under a program known as Florida Forever.

• At the meeting, the St. Joe site was not mentioned. Gallagher questioned Colleen Castille, the state's chief environmental regulator, about the process of ranking projects and spoke in favor of giving state land acquisition experts more discretion in negotiations with landowners.

Specifics on AES Trades…

• Tom Gallagher traded 1.7 MILLION IN AES STOCK IN 2003 ON DATES SURROUNDING GOVERNMENTAL ACTION
. How much he made or lost is immaterial. He used inside information and tried to make money. He was doing this from his state computer, when he should have been doing our job. This is the worst form of online gambling, no ifs ands or buts

• For the Two Years Preceding Cabinet Approval, TG trades 290,000 Shares of AES Stock worth $1.9 Million. This is on a salary of just over $100,000.

• Talk About a Very Questionable Trade—On 11-17-03 TG sells 15,000 shares of AES “Short” just before Bad News on AES

• According to Mr. Gallagher’s tax returns, he traded AES stock in 2002, 2003 and 2004. The amount traded was more than one million dollars. At the March 9, 2004, Cabinet meeting, CFO Gallagher made the motion that AES Corp. of Virginia be permitted to lay pipeline off Broward County. At the time he made the motion, and voted on the AES project, Gallagher held 1,000 shares in the company. He continued to execute trades in AES after the matter was approved by the Cabinet

KEEP SPINNING, but all of this is available online, on his tax returns, and the pattern or behavior is very clear.

Looks like the SEC should be intervening shortly.

Crist is not gay--he's just "playing possum" to get the gay vote.

[zenator]

Anonymous:

It speaks eloquently that Brett believes that it is "great news" that Tom is ONLY being prosecuted for 2 ethics violations.

It is akin to Bubba's spokesperson asserting that it was "great news" that Bubba's DNA was found on ONLY one intern's dress.

Hyperbole aside, it is never good news for a candidate to be investigated for ethics violations, let alone suffer a finding of probable cause as to 4 charges with prosecution recommended as to 2. Admittedly, the violations do not involve big money, but mere technicalities they are not. As insurance commissioner, Tom should have known better than to trade stocks in insurance companies his office regulated.

The timing of this news could not be worse for TG, who is already down 20-30 points 6 weeks before the election. It represents yet another major stumble and loss of ground for a candidate, who is already too far behind.

[end the spin]

tom gallagher should stop trying to fool floridians.

[unprecedenteDEM]

so, the first republican to serve as the insurance commissioner is the first cabinet member to have probable cause for ethics violations.

i hope that tg will run a negative campaign, make the republicans spend all of their money, and weaken their chances in november.

i encourage tom to stick around and stink up the joint as long as he wants.

Well if CC thinks he has the race all sewn up, isn't it time he told us what his plans are for Florida? Silly one-liners don't fool anyone.

mega dittos 11:10 am

gopn1

[RepublicanMushroom]

Gallagher just won't give up. I think he is afraid to not hold elected office, whatever will he do?

Have the Log Cabin Republicans endorsed CC yet?

[Irish Whiskey]

As a state employee, I had to sign a statement that I would never use my state-owned computer for personal business (personal business meaning dirty pictures and everything else including email that's not in the job description, like day trading.) Part of that statement was a notice that I could be fired if caught in the act.

Was I wrong in thinking that applied to all state employees? Wouldn't that include both CC and TG?

It includes all state offices - even the Attorney General. Wouldn't want to have a look there, of course, if you are for CC ...

Tom Gallagher is the only Repub ever elected as Insurance Commissioner?

I don't know which is worse, that or the day trading?

So how about it, anybody have any idea what CC's plans are for Florida? He sure isn't talking about issues...

If CC gets elected, who is going to be the First Lady of Florid?

This is how the dialog goes...
-TG cheated on his wife. Response: Yeah, well CC is gay
-TG smoked pot as a legislator. Response: Yeah, well CC is gay
-TG tried to assault his mother in law. Response: Yeah, well CC is gay.
-TG daytraded on the government dime. Response: Yeah, well CC is gay.
-TG tried to steal his ex wife's car. Response: Yeah, well CC is gay.
-TG is guilty of breaking and entering. Response: Yeah, well CC is gay.
-TG tried to steal his ex wife's dog. Response: Yeah, well CC is gay.
-TG used to be pro-choice. Response: Yeah, well CC is gay.
-TG used to be against school prayer. Response: Yeah, well CC is gay.
-TG is facing ethics charges. Response: Yeah, well CC is gay.
-TG is accused of using cocaine. Response: Yeah, well CC is gay.

I could go on, but I am tired of typing.

Gallagher the DISASTER!!, making florida history!!!
----------------
By KEVIN BEGOS
The Tampa Tribune
Published: Jul 29, 2006

.."There's never been a probable cause finding against a member of the Cabinet," said Kerrie Stillman, spokeswoman for the Commission on Ethics."...
-------------------------------

BY BRENDAN FARRINGTON
AP POLITICAL WRITER
July 28, 2006

TALLAHASSEE, Fla. -- The ethics commission determined Friday that Republican gubernatorial candidate Tom Gallagher may have violated ethics laws because he owned stock in two insurance companies while regulating the industry.

The commission found "probable cause" to believe a violation occurred and will later determine whether action should be taken against Gallagher because of stock he owned in Penn Treaty American Corp. and Conseco Inc.
---------------------------------

[zenator]

Anonymous at 5:52PM:

The important distinction is that the charges against TG, while mostly irrelevant, are true. In contrat, the charge against CC, while irrelevant, is false.

I recommend that TG's supporters listen to their candidate, who says that he is going to run a positive campaign. Stop the slander.

We all need to recognize that CC is almost certainly going to be the Repub nominee and start working together to make sure that he wins in November.

zenator, you really think someone is going to swish into the Florida Governor's mansion without once having issues a substantive position on how to address the real issues we face, like insurqances, taxes, etc.?

Think again and say "Governor Smith" or "Governor Davis".

I don't care who the Governor sleeps wth. I care about my property taxes. I care about my insurance bill. I care that kids are still illiterate.

When CC says stuff like he wants to 'blow up" Citizens Insurance, it makes it very difficult to take him seriously.

[1catalyst]

Hey 7:38PM

You have to be Terminator with the comment, "you really think someone is going to SWISH into the Florida Governor's Mansion..."

Come on sign your pen names, please and give a fake email so I can follow these threads.

However, until the BUZZ Editor gets this new system fixed we can have our names hijacked with others posting in our names - which already is happening.

Coming soon an new TG Ad.
the Script:
TG with the wife and Kid, "Hi, I'm Tom Gallagher the Crook for Governor", fade to little Charlie holding up handcuffs.

CC will be possibly noted for his own downfall, as quoted by his own campaign, being “OFF MESSAGE” way more than a couple times lately.

EXAMPLES:

If I were in the US senate, I would have voted for federally funded Embryonic Stem Cell research.

Gay Civil Unions are fine.

Gay adoption, I have not thought extensively about the issue. That issue is not part of my campaign.

Other examples of perhaps missteps:

CC took thousands and thousands of dollars from GEO, the company that builds private prisons in FLA. And He also sought and received an endorsement from The PBA of FLA. The PBA staunchly opposes private prisons because they don’t use or hire state employees.

DOZIER and his hateful remarks about Islam, etc. and his hearing from Jesus that CC would be the next Gov. of FLA.

There have been others and this simply sites a few.

The second biggest downfall for CC will be “MAC” and his buddies. Many staunch politicos strongly believe he is the man behind the many curveballs thrown towards TG lately and the old saying somehow always come true. “WHAT GOES AROUND COMES AROUND”. Ironic but true!

Posted by: | July 29, 2006 at 08:39 PM

CC is surrounded by a lot of people who support him for much the same reason as other people pick a simple microwave oven or PC: it is easier to handle, more user friendly.

CC is not a man given to thinking for himself. He is known for being a "good politician" meaning he will do practically anything for poractically anyone in return for their support.

What will Florida be like by 2010 with a Governor who is run by his supporters.

[zenator]

Anonymous at 7:38 PM

If the question is do I really believe that CC will beat either Dem in November, then my answer is "yes".

The reasons are several. CC is a good, experienced candidate with high positive name recognition statewide, who will have boatloads of money, perhaps as much as $20mm. In contrast, neither Smith or Davis has ever run statewide before, neither will be able to raise enough money, and neither will be able to solve the longstanding Florida Dem problem of being incapable of turning out its base in non-presidential elections.

In terms of the charge lack of substance, it is a subset of the broader category commonly refferred to as "Competence". CC's resume, including his stint as AG, is more than adequate for election purposes, especially where neither DEm has ever hels statewide office and suffer by comparison.

Finally, if your point is that TG is a man of greater substance in terms of his command of policy etc. You are right. But, intelligent people often make stupid decisions, such as Al Gore's decsion to be come a born again populist.

I respectfully submit that CC's political IQ is way higher than Tom's...

zenator: A full resume does not competence make. You would understant that if you understood the concept of substance. For a CC supporter to equate the two is to show CC for what he really is: A silly man with a paper resume that looks good, but with no real achievements to bolster the claim of competence.

I do respect your willingness to admit that CC is nothing but a wily politician.

Being a good politician might get you elected. Being intelligent, well versed in the various issues that concern your constituents: that is what makes a good governor.

CC wants to get electet because he is a good politician. Being Governor is the natural "promotion" after having gotten fimself past better candidates for the post of Attorney General. He has not distinguished himself in that post and would outright disgrace himself (and our Party) in the post of Governor. I hope that disaster doesn't happen.