By Phyllis Schaltenbrand
& Tony Brockmeyer
While researching campaign-spending records with the state of Missouri for our ongoing series on the influence of big money in the campaign of State Representative Tom Dempsey, the First Capitol News uncovered new evidence of the possible corrupt influence of funds being floated through yet another front committee. The Regional St. Charles County Leadership Fund, newly formed in March of 2006 by TR Hughes and employees of his, held a massive fund raising dinner on the evening of the 7th of April at the Columns Banquet Center an establishment owned and operated by the Dempsey family.
The gala event quietly raised $213,000 that evening. Expenses for the event totaled $29,116.45 paid to the Dempsey’s Columns Banquet Center. Records with the state indicate that employees of TR Hughes control the fund. All monies collected by the fund, however, were later transferred to Committees and a business under the control of Thomas W. Smith, a state employee working for and allied with State Representative Tom Dempsey (R) 18 District.
Dempsey had previously rushed special-interest legislation into law that enabled TR Hughes to have sewer connections for homes in one of his developments. Hughes was in a bind because the private sewer company, East Central Missouri, had no valid contract with the City of St. Charles to continue to treat their sewerage. While the two parties were negotiating this dispute, the City of St. Charles told East Central Missouri that they could no longer hook up additional customers to their private sewer system and expect the City to handle the extra capacity. This meant Hughes could not hook up any more of the homes he was building in the County.
The legislation, sponsored by Dempsey, forced the City of St. Charles to have to treat the sewage of this private company despite not having a valid contract with them. Further, the legislation was written so one-sided, that the citizens of St. Charles were required to pay to maintain the private sewer line in order to keep treating the sewage even if the private line collapsed. These lines and the development by Hughes on the site of the old St. Andrews Golf Course are outside of the corporate city limits of St. Charles and outside of the 18th State Representative District, which Dempsey represents.
The legislation helped Hughes directly to be able to continue to build new homes in this development. It also placed an additional burden on City taxpayers and sewer users who will have to pay for expanding and upgrading the Mississippi River Treatment Plant to handle this and other growth. It is likely the City of St. Charles will be raising sewer rates in the near future to pay for such upgrades.
This special legislation, sponsored by Dempsey, was rushed through the legislature due to Dempsey’s leadership position as Majority Floor Leader. It was passed last year and was widely criticized by St. Charles City officials, the Mayor, and City Administrator.
The fundraiser this year appears to have been a thinly veiled attempt to disguise TR Hughes funneling money to help Tom Dempsey. Hughes was active in financing and promoting the recall attempts to have Councilwoman Dottie Greer and Councilman Mark Brown removed from office. Those attempts were plagued with fraud and forgeries and in which individuals were charged with crimes and others are being investigated. Hughes, himself, donated $9,600 and was joined by numerous other developers and noteworthy individuals including:
Cole and Associates $9,600 (A company controlled by former St. Charles Councilman Kevin Riggs)
Grace Harmon, $12,000
Wm. Randolph Weber $2,400
Keith Hazelwood $3,600
Mary West $1,200 (Former St. Charles Councilwoman)
Kevin Kast $2,400 (former head of SSM St. Joseph Health Center who resigned suddenly and was active in promoting and financing the recall attempts on Councilwoman Dottie Greer and Councilman Mark Brown. Recall attempts that were plagued with fraud and forgeries and in which individuals were charged with crimes and others are being investigated)
Missouri Health Care Association $12,000
Environmental Operations, Inc. $9,600
McBride & Son Management Co. $12,000
Enterprise Financial $5,000
Foresight Development Group $9,600
Quilogy $12,000
CSM & Associates $4,800 (A company controlled by Mike Sellenschuetter who was active in promoting and financing the recall attempts on Councilwoman Dottie Greer and Councilman Mark Brown. Recall attempts that were plagued with fraud and forgeries and in which individuals were charged with crimes and others are being investigated)
Henry Clever $100
A complete list of the contributors can be found at firstcapitolnews.blogspot.com
The fundraiser, held at the Dempsey’s Columns Banquet Center, was held while the legislature was still in session. Incumbent candidates are forbidden from accepting money from lobbyists during the five months of the legislative session, which runs January through May. The April 7th fundraiser was well within the time period that other incumbent state representatives were prohibited from raising money. Hughes, Smith, and Dempsey circumvented this restriction by creating this third party committee, The Regional St. Charles County Leadership Fund. They then later channeled the money directly into the committees controlled by Dempsey’s aide, Thomas W. Smith.
Dempsey’s opponent in the November 7th election, City Councilman Joe Koester, stated previously that he was motivated to run for office because of the special interest legislation Dempsey had passed for Tom Hughes. “It made me angry that the interests of average citizens and the people he was sworn to represent, were taking a back seat to the private profit motives of a millionaire developer. I could not believe how the interests of the public had been so blatantly and willfully surrendered to special interests.”
Learning of the findings of our investigation, Councilman Koester had this to add, “I hope the public can now see that their interests were not sold cheaply but were surrendered for $213,000 from a millionaires club.”
SEE RELATED ARTICLE "CASINOS BET HEAVILY ON INFLUENCE OF DEMPSEY. Scroll down to read that story.
