Friday, May 12, 2006

MONEY LAUNDERING OR SMART POLITICS - The People Have A Right To Know

By Phyllis Schaltenbrand
and Tony Brockmeyer

FIRST IN A SERIES

From a quiet, unassuming home at 320 Monroe Street in St. Charles millions and millions of dollars of political contributions are being funneled into Republican political campaigns with no limits on how much can be contributed or on how the money can be spent. Some call it “Money Laundering” while others say it is “Smart Politics’.

To circumvent political contribution limits, Legislative Party Committees have been formed. Unlimited contributions are given to these Legislative District Committees and are then funneled through backdoors making it almost impossible for the public to know who is giving and who is receiving.

In this and coming editions we will tell you what we discovered, who is trying to hide their contributions, how these backdoor committees effect your daily lives and how all this relates to the problems we are having in the City of St. Charles and the State of Missouri.

The First Capitol News has discovered TEN of those back door funding Legislative Committees being operated out of a home at 320 Monroe Street in St. Charles with the only treasurer for each committee listed as Thomas W. Smith, Jr. We have also discovered several fictitious registered companies, apparently unlicensed, owned and operated by Smith, receiving funds from these same committees.

According to information received from the office of Missouri Secretary of State Robin Carnahan, Thomas W. Smith is a state employee and Legislative Aide to State Representative Tom Dempsey (R) St. Charles. He is paid $53,530 a year in taxpayer funds by the State of Missouri.

When the campaigns to recall Councilwoman Dottie Greer and Councilman Mark Brown first began, signs supporting the recall began sprouting up around the City. There was a telephone number on the signs and it was suggested people call for information, or to support the recall efforts. An answering machine answered the telephone; it was identified as a company called Survey St. Louis.

Research we conducted revealed Survey Saint Louis, L.L.C. was a fictitious registered name in the Secretary of State’s office, owned by Display Stuff, L.L.C at 320 Monroe Street in St. Charles. It was filed on February 24, 2004. Display Stuff L.L.C. was registered on October 26, 2000 as a Limited Liability Corporation with the registered agent being Thomas W. Smith, Jr. at 320 Monroe Street in St. Charles.

We were unable to locate a St. Charles business license or home occupation license for either Survey St. Louis or Display Stuff L.L.C. even though the address given by both are about one block from City Hall. Apparently those companies have not paid any business license tax to the City.

Advisors in Finance, LLC is also a fictitious Name that lists its address as 320 Monroe Street in St. Charles. Display Stuff, LLC is registered as the owner and is listed at 320 Monroe Street. Tom Smith signed the paperwork on file at the office of the Missouri Secretary of State. The registration was filed on February 18, 2004. We could find no St. Charles business license or home occupation license for Advisors in Finance.

Gateway To Victory Fund is a fictitious registered name. It was registered with Missouri Secretary of State, Matt Blunt on July 16, 2003. Thomas W. Smith signed the papers on file with the state and the owner is listed as Thomas W. Smith, Jr. at 320 Monroe Street in St. Charles.

Thomas W. Smith, Jr. is a member of the St. Charles City Park Board. His term expired several months ago. When his name was brought up by the Mayor for reappointment to the board the City Council voted not to reappoint him. It would appear Smith is in arrears with the City. The Mayor has not submitted any other name so he continues to serve on the board even though his term expired, his reappointment was not approved and he is apparently in arrears. We also learned that Smith had Survey St. Louis do work for the St. Charles Park Board.

The property at 320 Monroe Street in St. Charles lists Thomas W. Smith, Jr. as the owner.

State Representative Tom Dempsey (R) represents the 18th Legislative District, which covers a large part of the City of St. Charles. Dempsey is a former St. Charles City Councilman and is the manager and part owner of the Columns Banquet Center on Veterans Memorial Parkway in St. Charles. His father, Ernie Dempsey, is the owner of Pio’s Restaurant in St. Charles and was recently given the patronage state license office on Randolph in St. Charles. That office is said to be one of the highest grossing in the State. Ernie Dempsey has been heavily involved in the Republican Party and has been a large contributor to them and their candidates. Ken Kielty who operated it for several years had previously owned the patronage state license office in St. Charles. Kielty had been given the office by a Democratic governor. A corporation that is owned by Kielty and Dempsey reportedly owns the building on Randolph that houses the patronage license office.

There have been reports in the major press in recent weeks that a Federal Investigation is underway regarding the patronage state license offices and how they were appointed by Governor Matt Blunt. The United States Attorney from Arkansas is reportedly overseeing the investigation of the patronage appointments. The United States Attorney from the Eastern District of Missouri is Catherine Hannaway who recently served as the Republican Speaker of the Missouri House of Representatives.

Both Kielty and Dempsey are close confidants and supporters of St. Charles Mayor York. York has been openly active in the recall campaigns of Councilwoman Greer and Councilman Mark Brown. We have been told Kielty handled her last Mayoral race against St. Charles County Councilman Dan Foust. Kielty has also been active in the recall campaigns attempting to oust Councilwoman Dottie Greer and Councilman Mark Brown. Kielty and Glennon Jamboretz formed St. Charles Citizens for Responsible Government with a stated purpose of recalling St. Charles City officials. They terminated their committee shortly after Councilwoman Greer defeated the recall effort. Brown recently claimed York diverted taxpayer funds to the recall campaign using fictitious names and companies, with the money finally arriving at a company owned by Glennon Jamboretz. He indicated that a investigation is being conducted. It is believed to be by Federal Officials but Brown would neither confirm or deny.

The First Capitol News believes the people have a right to know. Where does the money come from, where does it go and what do the givers expect to receive for it? How does it affect the problems we are experiencing in the City of St. Charles and the State of Missouri? Our investigative series will continue in our next edition.