From WV Statehouse Double Dipping To Late Night Parties And More

Four Behind The Scenes Stories From Statehouse Employee's
by Jack Swint & Sam Webber .... WestVirginiaNews@gmail.com
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1. Will Governors Plan To Close Any Double-Dipping Loophole Include His Chief Of Staff Larry Puccio?
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Larry Puccio is currently the WV governor’s Chief of Staff. He is also partner with Fairmont native, Linda York. Together, they have a business called “Puccio & York.” Both have managed to cover every angle to ensure their ability to control everything from selling real estate, appraising, to WV State guaranteed mortgage loans. Has Mr. Puccio, & Linda York each created a conflict of interest? You decide.
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Besides being the governor’s Chief of Staff, Puccio has been a licensed realtor since April 1990. He is also on the WV Housing Development Fund Board, and according to Adolla Miller, he is the Chairman. According to their website, the HDF was established to develop and improve housing opportunities for WV residents. ( http://www.wvhdf.com/homebuyers/ ) His business partner, Linda York, is the Chairperson over the WV Appraisal Board. Like with the HDF, the governor appoints each member. So, Manchin has appointed both Larry Puccio & Linda York to these positions. ( http://www.wvappraiserboard.org/ )
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And, if that is not enough, Puccio & York are allowed to submit state bids to be awarded contracts from the state worth thousands of dollars in state funds and your tax dollars! Most recently, they submitted a bid to appraise property for the state worth hundreds of thousands of dollars a year. Has Larry Puccio given a whole new meaning to “insider trading?” How about the most recently used term of “double dipping?” It all depends on who you ask. According to the State Ethics Commission, Larry Puccio has not crossed any ethics violations or conflict of interest issues. That was supposedly all worked out back in 2005 when he was granted what they call a “Blind Trust.”
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To the rest of us, this is just a new terminology for another legal “loophole” It appears that politicians use this blind trust agreement a lot in order to protect their secondhand business ventures. Here is a legal synopsis of what this “trust” document is about. “A blind trust is a particular type of trust in which the executor or other kind of responsible fiduciary third party is empowered to administer the business of the trust without any input from the beneficiary. Along with granting full management discretion, the blind trust also prevents the administrator from providing any information about the day to day operations of the trust to the beneficiary.
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Blind trusts can be very helpful when an individual wishes to avoid any conflict of interest as a result of business assets by transferring the assets in question into a blind trust and granting control of the assets to the executor or an administrator through a power of attorney. Politicians often find a blind trust is an excellent means of managing personal assets. This is especially the case when running for an office, or, accepting an appointment to responsibilities that involve the administration of government funds to the private sector. The arrangement ensures that the politician will not be able to engage in acquiring personal gain as a result of his or her position and eliminates speculation about any conflicts of interest”….. Yada, yada, yada.
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In laymen’s terms? This blind trust is a nothing more then a SAVINGS ACCOUNT for when Puccio decides to get out of politics.
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The governor has said one of the first things he will do when taking office again in January 2009 is close the loopholes that allow double dipping. Does this mean situations like this, too??? That being said, here is something else that needs to be addressed that may explain why Larry Puccio loves this arrangement working for the governor and his appraisal business. An “anonymous source” recently mailed us documents showing one state bid that Puccio & York submitted in August 2008. The bid number was “TAX09001” and requested sealed bids to appraise property in different WV counties.
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Puccio & York submitted actual written bids along with 9 other companies. (Links are below). First thing that appeared odd, everyone but Larry Puccio’s company filled out worksheets the state provided. This show’s how each bidder came up with the dollar amount they believed would cost to complete the work. Puccio & York just wrote in an amount with no explanation.
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That in itself is nothing alarming. But, when we averaged out the amounts of the bids against what P&Y submitted, we found that P&Y grossly underbid the other companies.
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Example:
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County .....Puccio & York .......Others (average)
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Barbour ............$20,600 .....................$64,600
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Berkley ............$83,700 .......................$210,000
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Hancock ...........$33,500 ......................$81,300
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Then to be fair, we used one company who is located in the same geographic area as Puccio & York and has years of experience doing appraisals in their surrounding counties. They also bid on this same contract proposal. That comparison showed that Puccio’s bids were at least 72% lower than that competitor. Bottom line, did P&Y intentionally & drastically underbid on purpose? You would think if Linda York was the Chairperson on the WV Appraisal Board she would know how to actually appraise and make a sound bid based on facts. Or, do they have some inside information no one else knows about?
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We spoke to three of the companies who submitted their bids, and we were told that there was “no way” Puccio & York could accurately perform the required work at the bid amount they proposed. Another person said, “It’s ridiculous to think they actually did the math. My kid could have done a better job.” At the time of this writing, we have not been able to determine the exact amount of money Puccio & York has been awarded since at least 2005. We do know it is in the “multi-thousands.”
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Then there is former State employee, Wade Thompson, who recently retired from his $64,800 a year job as tax director. Right before he left, Wade was able to get incoming Tax Director, Jeffrey Amburgey, to arrange for Thompson to receive a state contract worth approximately $105,000 a year. In an August 13, 2008, letter from Amburgey to County Assessor’s Offices, he introduced Wade Thompson (Wade Consulting) as the contracted “project manager.”
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Is this double dipping? Thompson is drawing his State pension and is also now being paid as a contractor for the state. He was awarded the job on July 2, 2008, at $50.00 an hour for up to two years.
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http://www.state.wv.us/admin/purchase/Bids/FY2009/B_TAX09001_5.pdf ...(Puccio Bid)
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http://www.state.wv.us/admin/purchase/Bids/FY2009/BO20080822.html ... (Competing Bids)
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http://www.state.wv.us/admin/purchase/bids/fy2008/B_TAX08014_1.pdf ...(Wade Thompson)
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2. Who Is To Blame For Poor Management Of Older Workers Compensation Cases? ***Updated December 6, 2008***
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According to several employees, you can’t blame Commissioner Jane Cline because she is never there. Cline is allegedly jet setting around the U.S. and abroad. Being married into the Charleston Newspapers “Chilton” family must have its perks.
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Employees say that it really makes very little difference whether Mrs. Cline is in or out of the office. Deputy Commissioner Bill Kenny really runs the department. There could be some truth to this if you base your beliefs on who is paid the most. According to the “2007 Total Compensation” website link, Kenny earns $94,000 and Commissioner Jane Cline $92,500. We were told he came to the Statehouse several years ago after leaving the City of Charleston.
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Reportedly, while the cat is away, at least one mouse plays, drinks and allegedly accepts gratuities from two companies that oversee the older Workers Compensation Cases that BrickStreet said they could not control. These are all cases from 2005 back. Sources tell us Bill Kenny’s meetings with those representatives from “Sedgwick” & “American Mining” go way into the night with outrageous partying at local Charleston hotspots like Lauwry’s, the Marriott and even the Red carpet Lounge. (Wells Fargo is the 3rd company who handles these accounts.)
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In fact, it is alleged, that alcohol related hangovers from a late night St Patrick Day’s party with American Mining folks at the Red carpet Lounge was the sole reason most of their staff missed a meeting the next day to go over the old comp claims. **One anonymous source from Clines office came forward to state that Bill Kenny is also being wined, dined and frequently goes out on the boat owned by the CEO of an insurance company Kenny regulates.** WV Secretary of State records show that Sedgwick claims offices are in Memphis, TN. American Mining is addressed in Birmingham, Alabama.
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Besides the millions of dollars a year of your tax dollars going to pay these third party companies, you are also paying for other companies to be “consultants” to Sedgwick, American Mining & Wells Fargo. Another source in the Insurance Commissioner’s office alleges the state passed over a lower bidding consulting firm from a WV company to make sure Illinois based, DDP Group, (owned by Lawrence Della Vedova & his wife, Dawn) obtained that bid. Vedova allegedly received the bid because of his prior involvement as a sub-contractor for another out-of-state business, “PRAG Group” that the governor has friends with.
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It appears another former member of the PRAG group, Peggy Steuben, out of Chicago, obtained a very lucrative contract deal, too. Just how financially smart is the State government in their costs of maintaining these old accounts? How many hands are really in the big WV cookie jar? Here is a thought and question for Mrs. Cline & Joe Manchin… Since the state finally opened the door to allow more insurance providers to sell workers compensation coverage, let them equally take over the older accounts that BrickStreet refused to keep???
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3. Who Really Runs The Division Of Labor??
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Most employees we spoke to say that the unions control what goes on in their day to day work. How could this occur? Commissioner David Mullins is a union man himself. And, sources say, he was appointed by the Governor to fulfill a campaign promise made to union companies.
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There are approximately 50 Labor Inspectors in the DOL whose responsibility is to enforce all labor related laws including inspection of all company records, licenses and undocumented worker’s status. They also respond to complaints that are called into the state office from a worker not being paid correctly to owed monies to firings. “The unions in WV run the Division of Labor” said one anonymous source. “In fact, union organizers dictate policies involving when, where and how, when it comes to inspectors doing their jobs.”
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When asked just how unions can run their office, we were given multiple examples. One stood out more then others of how union contractors undermine inspector’s authority by contacting State officials to “get out of violations” inspectors have cited them for. One inspector said, “We have no real authority to enforce laws against union companies. Their representatives know someone higher up in the Statehouse that they can call to override us.” Another inspector said those contractors and or companies are as bold as to call someone right in front of them to try and squash a violation.
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Other noted problems range from union people constantly calling into the office to report “alleged” violations on non-union jobs. According to one DOL employee, “this takes up a tremendous amount of time, and usually the inspectors find no violations exist.” Either way, they are supposed to immediately drop what they are doing and run out and investigate if it is a union person complaining. When asked if non-union contractors call in on union people and complain? “Not hardly at all.”
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Commissioner David Mullins has only been over the division for two years. Morale is allegedly at an all time low throughout the department. Mullins says he has an “open door” policy for anyone to come in and talk. And, for the most part, that is true. But, if you do, you’re labeled a problem employee, and it is all downhill from there. They have been told that no one will receive a positive job review in order to keep down expenses for raises. Friends and retired police & military officers (drawing pensions) are being hired at higher rates of pay then seasoned inspectors. These new employees have no training, experience or are given any type of testing when hired in.
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Low morale appears to be a problem across the board when you work for the State. According to State personnel records, there were 1,798 grievances filed by employees this year. Four people who talked to us say their commissioner does not practice what he preaches. He uses his State car and credit card for personal use everyday. According to three of the four employee's, Mullins has allegedly been convicted of a DUI but, still drives his state car to local union halls and drinks alcohol, then drives that vehicle home.
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Director Larry Walker allegedly likes to yell and scream at DOL employees if he feels they have done something not to his liking. One employee said that he acts like a “Misogynistic, narcissistic, obsessive-compulsive psychopath”. Another favorite saying is everythings “Larry Law.” And it doesn’t matter which policy or State statue it is, “if Larry wants it done differently, you have to.” He has even overridden laws enacted and or set in stone by the Supreme Court saying the justices are wrong. Walker has reportedly become so out-of-control and hostile that at least 3 attorneys assigned to the DOL from the Attorney General’s office have either been run off or refuse to work with that division.
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Now Commissioner Mullins may have overstepped his own legal boundaries when he volunteered the use of his State inspectors to oversee federal mine safety laws that can only be enforced by MSHA. Several State inspectors told us that Mullins volunteered inspectors to go out to coal mines and investigate “red hat” complaints that new miners are not being properly trained to work in the mines. Reportedly, some of the non-union mines are using manpower services to provide underground coal miners.
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“We can’t investigate these types of complaints. For one, there are no policies to follow. But, worse then that, there are no State codes we could enforce if we wanted to. It’s all federal.” This source did say that they do have some State duties at the mines to enforce, but nothing that has to do with MSHA.
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4. Do You Really Want Four More Years From The Earl Of WV?
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Earl Ray Tomblin has been Senate President since 1995. Is it time for a change?? Depending on what part of the state you are in, he is either an “icon” or a “scoundrel.” There is an opportunity on the horizon for WV senators to elect a new President-Lieutenant Governor for the next four years. And with the rumors of Manchin either being indicted by the Feds or his assuming Senator Robert Byrd’s position in Washington, DC, Tomblin could be the next governor of this state.
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Over the years, Earl Ray has positioned himself to be either chairperson or member to every committee or position of power in the state. Some say it is to head off any scandals that befall him and or his family, while others say it is just good strategic planning. Either way, Tomblin has more power and authority then Governor Manchin himself when you include his total participation in WV government.
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Senate sources we have spoken to over the past 8 months feel Earl Ray has rough shod his way into getting his own agenda in place. Several stories (links at the end of this segment) concur with that belief. Two senators went off the record to explain to this author that the Senate President has gone as far as to tell them that their job is not to ask questions or understand a bill or any legislation; it is to vote his way. Hard to believe? Ask around.
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Bottom line, it is up to the former and new incoming senators to decide. All we can do is remind them of what the current options are. Four more years of the same old thing? -OR- Four new years of change and new direction?
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Here is a link to the WV Senate where you can contact your local senator or all of them.
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http://www.legis.state.wv.us/Senate1/members/senmemview.cfm
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Three Previous stories on Earl Ray Tomblin & his interests.
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http://westvirginianews.blogspot.com/2008/08/my-name-is-earl.html
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http://westvirginianews.blogspot.com/2008/09/former-lobbyist-owns-bragging-rights-on.html
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http://westvirginianews.blogspot.com/2008/10/chapmanville-killing-fields-inside-one.html
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End Of Stories.....
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Jack Swint-Publisher

West Virginia News

E-Mail: WestVirginiaNews@gmail.com

Website: http://WVNewsOnline.com

Blog: http://WestVirginiaNews.blogspot.com

Twitter: @WVNewsOnline

LinkedIn: Jack Swint

Want To See How Much Your WV State Officials Earn Each Year???....

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There are two ways to look them up online. One at a time, or all at once. Use the two links below to see just how much the governor, politicians & other state employees are paid. You will be surprised to see who earn the most.
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Examples....
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Governor Joe Manchin - $94,999.00
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Earl Ray Tomblin - $36, 250.00
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Robert Sears - $212,187.00
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John P Beilein - $284,696.00
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Also, here is a link to a graph to compare governors salaries in the U.S
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http://www.stateline.org/live/details/story?contentId=207914
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