Legum’s New Line

RNC Chairman Michael Steele is under fresh scrutiny for more suspect expenditures from his 2006 Senate campaign. WBAL News reports that, at the end of his 2006 campaign. Steele made $64,000 in questionable payments to a firm named Allied Berton, LLC.

The firm’s website indicates that Allied Berton was “in the business of trading commodities, such as minerals, metals, coffee and sugar.” The purpose of Steele’s payments to the company, however, was listed as “political consulting.” Further, “At the time the campaigns made the payments, Allied Berton’s right to conduct business had been forfeited by the state for failing to file the proper paperwork.”

All told, Steele, former Governor Bob Ehrlich, Ehrlich’s running mate Kristen Cox and the Maryland Republican party paid over $400,000 to Allied Berton. Watch WBAL’s Report:

Previously, the Washington Post reported that FBI was investigating a $37,000 campaign payment by Steele to a defunct company owned by his sister-in-law. A former campaign official claims no work was done for the payments.

So far, this latest has not been covered by the national media. Stay tuned to the New Line for updates.

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The New Line has obtained two ethics complaints filed by Del. Rick Impallaria (R) against Delegates Donna Stifler (R) and B.J. Jennings (R). In the complaints Impallaria alleges that Del. Stifler falsely accused him of abusing one of Stifler’s aides. Impallaria also claims that Jennings participated in the “slander.”

The complaints are related to the same set of circumstances that lead Impallaria and Del. Susan McComas (R) to be deposed from their leadership positions in the Harford County delegation, reported by the New Line earlier this week.

In the complaint to Ethics Counsel William G. Somerville, Impallaria writes:

I told Delegate Stifler that we would have to talk to her aide, and she said I would not be allowed to talk to her aide because I had abused her. At that point, I realized there was no reasoning with her and told her that she was a “kook.” I stand by that statement and still believe it to be solid and true.

According to the Baltimore Sun, Del. Impallaria has a lengthy criminal record and got into a shoving match with immigration activists in 2004. You can read the full complaint filed by Impallaria below.

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It’s still almost two years until the next state-wide election, but the state’s major political players are already actively raising money. Campaign finance reports covering 2008 were due yesterday and many have already been posted online by the University of Maryland.

Here’s a breakdown of the fundraising activity of some of the state’s prominent politicos (click the name for details):

Mike Busch (House Speaker)
Raised: $116,245
Spent: $56,943
Cash on Hand: $169,943

Mike Miller (Senate President)
Raised: $379,140
Spent: $114,790
Cash on Hand: $644,233

Doug Gansler (Attorney General)
Raised: $660,384
Spent: $51,200
Cash on Hand: $1,255,115

Bob Ehrlich (Former Governor)
Raised: $95,640
Spent: $66,559
Cash on Hand: $151,529

Jim Smith (Baltimore County Executive)
Raised: $643,543
Spent: $172,885
Cash on Hand: $696,617

O’Malley’s report wasn’t available when I wrote this post but, according to news reports, he has about $2 million cash on hand. At this point, it does not appear that Ehrlich is planning on mounting a serious challenge to O’Malley in 2010.

Another note: If you examine the reports closely, you’ll see that in Maryland a good deal of money is raised directly from corporations and businesses. This isn’t allowed at the federal level.

You can look up their campaign finance reports for other candidates here.

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A State House source tells the New Line that Del. Saqib Ali will kick off this year’s legislative session by dropping a bill that requires any U.S. Senate vacancy in Maryland to be filled by special election, rather than Gubernatorial appointment. The timing hasn’t been finalized, but Del. Ali could drop the bill as soon as this afternoon.

If enacted into law that bill would take effect in 2015. Del. Ali has told colleagues that he inserted the provision to avoid any implication that sitting Governor Martin O’Malley is corrupt.

The bill appears to be an effort to avoid a repeat of the debacle in Illinois. Gov. Rod Blagojevich was able to appoint Roland Burris to the vacancy created by Barack Obama even after Blagojevich was indicted for trying to sell the seat.

Blagojevich was subsequently impeached by the Illinois House. Nevertheless, after initial resistance, Burris is expected to be seated by the U.S. Senate this week.

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The Daily Record has the story:

Baltimore Mayor Sheila Dixon was indicted today by a grand jury on 12 counts of criminal misconduct, culminating a two-year investigation into her connections to a prominent real estate developer.

According to a news release from the Office of the State Prosecutor of Maryland, the charges include perjury, theft, fraudulent misappropriation by a fiduciary, and misconduct in office.

The indictment alleges that in 2004 Dixon accepted gifts of travel, lodging and a gift certificate that was used to purchase fur coats from “a real estate developer” in 2004, a reference to Doracon Contracting president Ronald H. Lipscomb, whom Dixon briefly dated in 2003 and 2004.

The statement went on to allege that Dixon misused gift cards that were meant for needy families to buy consumer electronics including an Xbox 360 and a Playstation game console, and that she inappropriately distributed the gift cards to her staff.

More coverage from the Baltimore Sun and the AP.

UPDATE: Shelia Dixon releases a statement: “I am being unfairly accused. Time will prove that I have done nothing wrong, and I am confident that I will be found innocent of these charges. But, for the moment, I cannot comment further on the allegations that have been made against me. Instead, my attorneys will address these matters on my behalf.” Full text here.

UPDATE II: Read the indictment here. Timeline of the investigation here.

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