The Washington Post is reporting that as a result of a federal corruption probe, “Former Virginia governor Robert F. McDonnell and his wife, Maureen, were charged Tuesday with illegally accepting gifts, luxury vacations and large loans from a wealthy Richmond-area businessman who sought special treatment from state government.”  Here is a link to the 43-page criminal indictment naming McDonnell and his wife and describing the allegations against them.

In our post on May 4, 2013, entitled Governor Being Investigated, we asked, “In terms of compromising the integrity of the office an official holds and the public’s trust in the official, does it really matter if the high-value items such as cash, gifts, or lucrative business contracts have been given to close family members rather than directly to the public official?”

For that matter, does the value of the items gifted really matter?  How about an international cruise on a privately-owned yacht?  How about an expensive (value >$50.00) belt buckle?

Fortunately, there is not one official in Idaho who has ever taken a gift with a value in excess of $50.  Nope.  Never happened.

And of course, there are no Idaho agencies who have ever written provisions into contracts that allow the private contractor to use the State’s name as a client in its advertising in return for a few tens of thousands of dollars to be returned to the State.   Because that just might be seen as a kickback.

No, that kind of stuff only happens in Virginia.  Or someplace else.  But not Idaho.

ADDENDUM:  January 23, 2014 — The January 23rd Washington Post online has an article entitled Legal experts: McDonnell trial will test line between political favors, official action.  It’s a pretty good explanation about the challenges faced by both sides in corruption trials.

And for those in Idaho who think, “Well, that’s just in Virginia…”, read this New York Times article With ‘Virginia Way,’ State Thought It Didn’t Need Rules.  Substitute “Idaho” for “Virginia” in the article.  Maybe it’s time our three branches of Idaho government stop DWHUA.

As this recently released IRS document Examples of Public Corruption Investigations – FY 2014 shows, public corruption is not slowing down.  The cases summarized in the document include:

• Ohio Man Sentenced for Bribing Public Officials
• Former Michigan Public Schools Accountant Sentenced on Fraud and Money Laundering Charges
• Former President of Union Sentenced for Accepting Kickbacks and Tax Evasion
• Former Congressman and Real Estate Investor Sentenced on Federal Charges
• Former County Worker and School Board Member Sentenced for Accepting Bribes
• Former Detroit Mayor and Others Sentenced in Racketeering Conspiracy

In a December 12 press release, André Birotte Jr., the US Attorney for the Central District of California, announced that former Bell, California, Chief Administrative Officer Robert A. Rizzo has agreed to plead guilty to two felony charges: conspiracy and filing a false federal income tax return with the Internal Revenue Service. In the plea agreement, Rizzo admitted that he created a corporation to fraudulently claim losses on his income tax return, which served to illegally reduce his tax liability on the significant income he was receiving from the City of Bell.

According to the press release, Rizzo and co-conspirators (including his tax preparer Robert J. Melcher) formed an S Corporation to claim bogus losses in relation to a purported rental property in Auburn, Washington. He also used an S-Corp account to pay for more than $80,000 in personal expenses in 2009 and $120,000 in construction work on his residence in Huntington Beach in 2010, then falsely claim that these expenses were related to rental property.

As the last sentence in the press release states, the federal investigation is not over.  According to reporter Jeff Gottlieb’s article in the Los Angeles Times, Rizzo’s charging documents refer to “A.S.” and her company, Sheffield Management Corp.  That is almost certainly a reference to Angela Spaccia, whose married name was “Sheffield” when she was in Coeur d’Alene and Kootenai County, Idaho, working for the YWCA and serving for two years as Kootenai County’s Finance Director.   OpenCdA hopes the federal investigation will reveal who the tax preparer, accountant, or attorney was who helped Angela set up Sheffield Management Corp.

OpenCdA encourages readers to carefully and thoughtfully consider Wednesday’s editorial in the Los Angeles Times.  The editorial was headlined The lesson of Bell:  A watchful citizenry is still essential (I’ve highlighted important lessons to be learned in this reprint).

While OpenCdA completely agrees with the need for a watchful citizenry, that simply isn’t enough.  Had it not been for the diligent news coverage by the Los Angeles Times, the magnitude and scope of the crimes might never have been known.  Press curiosity encourages honesty and openness.  Diligent, persistent, and penetrating press reporting discourages corruption.

We in Coeur d’Alene have often heard some of our own city councilmen, most often outgoing Councilman Deanna Goodlander, tell us that they don’t need to pay attention to the details and neither do we.  “Trust the City Staff.”

In Bell, the trusted City Staff was City Administrator Robert Rizzo and Assistant City Administrator Angela Spaccia.  Another former member of the trusted Bell City Staff, the City Clerk, testified that she falsified public records when directed.  And five of the six City Councilmen who trusted them so blindly have now been convicted of some crimes and may face retrial on other charges as well.

For us in Coeur d’Alene, The Lesson of Bell ought to be to unquestioningly trust no one at City Hall.  We private citizens need to pay attention.  Paying attention won’t be easy because our local and regional news media appear to be intentionally not paying attention.  But we have to try.

This is the photo taken of Pier’ Angela Spaccia by the Los Angeles County Sheriff’s Department when she was booked into the Los Angeles County jail in 2010.  Spaccia is currently on trial in California Superior Court, charged with a total of 13 counts including conflict of interest, misappropriation of public funds, secretation of public records, receiving unauthorized compensation and conspiracy.

As Los Angeles Times reporters Jeff Gottlieb and Ruben Vives have reported,  Spaccia has a fairly recent connection to both Coeur d’Alene and Post Falls.  She was known as Angela Sheffield when she was Kootenai County’s Finance Director.

In her second comment appended to yesterday’s OpenCdA post titled Bell Corruption:  Tightening the Coeur d’Alene Connection, Stebbijo remarked, “… however, there isn’t much, connecting her to this area other than a sealed case out of Post Falls, Idaho.”

Here is what we’ve been able to find from a cursory inspection of public records. (more…)

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Last Saturday’s OpenCdA post titled Coeur d’Alene’s Connection to the Corruption in Bell asked why Angela Spaccia was interested in buying some very expensive property in Coeur d’Alene, Idaho.  More specifically, we wanted to know what Spaccia’s connection was and is to Coeur d’Alene.

Today, we have a much better idea. (more…)

There was a tantalizing mention of “Idaho” twice in the Los Angeles Times story dated November 14, 2013, headlined Ex-Bell leader Spaccia faces cross-examination in corruption trial.

These two sentences appeared near the end of the article:

“Spaccia also testified that in 2010, she borrowed $200,000 from Rizzo’s mother-in-law to buy a house in Idaho.”

“Adams testified that Spaccia asked him for a $350,000 loan for property in Idaho in February 2010.”

OpenCdA was curious about where  Angela Spaccia had been trying to buy property in Idaho, so we contacted LA Times reporter Jeff Gottlieb and asked.    His answer:  “In your fair city, Coeur d’Alene.”

Mr. Gottlieb’s answer raises more questions.  Why did Angela Spaccia happen to choose Coeur d’Alene?  Does she have friends, family, or business associates here?   During her tenure as Bell’s Assistant City Administrator, had she been in contact with someone in Coeur d’Alene who suggested this would be a good place to “get lost” because our local and regional news media and law enforcement are not professionally too inquisitive?

Maybe some day we’ll get an answer to these questions.

ADDENDUM:  Here’s a link to some selected news stories the Los Angeles Times has published concerning the Bell corruption.