Brauchler misrepresents jury decision to loving talk-radio hosts

August 24th, 2015

Journalists have been careful to report, as The Denver Post’s John Ingold and Jordan Steffen did today, that nine jurors apparently voted for the death penalty in the Aurora shooter’s trial, two were undecided, and one voted for life in prison. So the prosecutors were three votes short of the unanimous decision needed to put the murderer to death.

George Brauchler appears to present different versions of the decision, depending on the audience. If he’s talking to talk-radio hosts, who apparently aren’t concerned about the basic facts, Brauchler whines that he was only one juror away from winning the case.

“We were one vote away from getting what I thought was the just sentence on this,” Brauchler told KHOW’s Mandy Connell shortly after the trial ended. (Listen here at the one-minute mark.)

Talking to KNUS 710-AM’s Craig Silverman, Brauchler delivered similar misinformation at 36 minutes, uncorrected by Silverman.

Brauchler: It was one juror. You and I both know [former State Rep. Jovan Melton]. You know him better than I do. But it is such an outrageous blanket statement on an entire law based on the decision of one juror, who by the way found this guy sane, found the he committed this crime with aggravators, found that the aggravators outweighed any mental health issues or any other mitigators, and then hung up on that very last phase. And from that one decision, not only do you have Jovan calling the application of the death penalty racist, but you got The Denver Post backing him up and going crazy with their comments as well. And it’s an indictment of a system you can’t prove is racist….

Later in the same interview, at 53:55, Brauchler puffed:

Brauchler: But for this one juror, I think folks would have said roundly, ‘Men, you did this case perfectly.”

Yet, in talking about the decision to The Denver Post, where reporters are actually factually concerned about reality, Brauchler tells a different story.

The Post reported: “To Brauchler, [the 9-2-1 decision) is evidence that he was right to go to trial and seek the death penalty. After all, he said, he convinced at least nine jurors of his position.”

It’s a good example of why reporters are important. Brauchler apparently knew he wouldn’t get away with spinning them like he can loving talk-radio hosts.

Forget the corpse flower. Smell the putrid fungus.

August 22nd, 2015

The corpse plant over at the Botanic Gardens is getting viral love because it’s supposed to be so stinky. But it turns out to smell quite mild, as articulated in tweet from Denver Post reporter Kirk Mitchell: “Early visitors to Denver #CorpseFlower disappointed by lack of stench.”

If you want stench, you should check your yard for the stinkhorn mushroom, Plallus impudicus. While he corpse flower allegedly smells like rotten meat, this mushroom smells like something in between skunk, semen and moldy cheese. It’s the star of stink.

It’s guaranteed to small awful, and it’s common in Denver lawns, so you won’t have to wait in line like all those wanna-be sniffers at the Botanic Gardens.

As we write on our UrbanMushrooms.com website of the stinkhorn:

With their long white shafts and slimy greenish head, these penis-shaped mushrooms emerge from what looks like a smooth pinkish golf-ball.

It’s one of the few mushrooms that you often smell before you see. Noted mycologist Charles McIlvaine called the odor “aggravatingly offensive, attracting blow flies in quantities.”

Seriously, if you can find this in your yard, or a nearby park, why bother with the crowds at the Botanic Gardens. And this, you can actually eat! That is, if you’re the kind of person who likes to eat grasshoppers.

If you can’t find it, head over to the Denver Botanic Gardens Sept. 6 for the Colorado Mycological Society’s Mushroom Fair. It runs 11 am to 5 pm.

As you walk into Mitchell Hall, where the fair takes place at the Gardens, you’ll find a nice display of “City Mushrooms,” including, of course, the stinkhorn! Smell it until your craving for the foulest of odors subsides.

Also, bring along any mushrooms you find in your yard or the mountains. Expert mycologists will be on hand to identify them. And check out the huge display of wild mushrooms, as well as other mushroom exhibits for kids and adults.

Sure, the corpse flower has turned into a celebrity, but the poor Phallus mushroom is more deserving of attention as a reliable stinker.  Trust me on this.

Fact Check: Despite Gardner’s claim on the radio, people in Colorado would suffer if Planned Parenthood were defunded

August 19th, 2015

After he voted to defund Planned Parenthood, Sen. Cory Gardner hopped on the radio said, not to worry, no one in Colorado will suffer if the health organization loses federal funding.

“We voted to take the money from Planned Parenthood and distribute it to the community health clinics around the state of Colorado,” Gardner told KNUS 710-AM’s Dan Caplis Aug. 13, vowing that the investigation of Planned Parenthood in Congress will continue. “There are nine times more community health clinics than there are Planned Parenthood clinics, and so they provide more access to women and men across the state.” (Listen to Caplis belowAug. 13 and also on Kelley and Company here on Aug. 10.)

It’s true that there are many more community health centers than Planned Parenthood clinics in our state. But this doesn’t mean that throwing more money at the community health clinics would provide equal or greater access to healthcare than what’s available now.

First of all, studies have shown that the community health center (CHC) network and federally qualified health center (FQHCs) network don’t offer all types of birth control and reproductive health care. That’s why many large community health centers actually factually refer patients to Planned Parenthood. Planned Parenthood specializes in reproductive health care–while community health centers offer a wider range of services.

So it’s not surprising that even though Planned Parenthood operates just 10 percent of all publicly funded family clinics, 36 percent of patients seeking family-planning services turn to Planned Parenthood.

Poor people on Medicaid go disproportionately to Planned Parenthood for these services, and it’s unlikely that the safety net and the health care system, as currently configured, could absorb Planned Parenthood’s patients. This means that defunding Planned Parenthood would weaken our country’s already weak safety net.

Planned Parenthood Votes Colorado blogged this in response to Gardner’s radio remarks (and discussed the issue with The Denver Post’s Joey Bunch here):

In Colorado, Planned Parenthood serves over 80,000 people each year. Including helping 57,000 women get their birth control, 11,000 women get breast wellness exams, and 56,000 Coloradans get STD tests. These are services people need — usually immediately. And these services are being provided by PP most often to low-income and rural Coloradans. Three-quarters of Planned Parenthood’s patients are low-income, making less than $37,000 a year for a family of four. In Colorado, Planned Parenthood has 20 health centers, many of in rural communities, like Granby, Salida, La Junta and Alamosa. Women in all communities need reproductive health care, and Planned Parenthood provides it.

Furthermore, it is harder and harder for low-income people in this country to find a provider, even though they may now have coverage because of the Affordable Care Act. According to a report from the U.S. Government Accountability Office only 41 percent of OB/GYN’s in Medicaid managed care networks are even taking new clients. Without Planned Parenthood thousands of Colorado women, and millions around the country, would have no place to go when they need care.

Finally, you cannot write about the impacts of extracting Planned Parenthood from our communities without saying this: the debate about defunding Planned Parenthood is also about choice. Planned Parenthood is barred by law from using federal money for abortion, just as community health clinics are. But Planned Parenthood offers this option through other funding sources, while the community health clinics do not.

So, when an anti-choice politician like Gardner tells an anti-choice radio host like Caplis that our life in Colorado will be better off without federal funds for Planned Parenthood, you don’t have to dig too deep to find out there’s another side to the story.

Listen below to Sen. Cory Gardner on KNUS 710-AM’s Dan Caplis Show Aug. 13, 2015.

Reporters need to dog Stapleton for answers

August 18th, 2015

Update: Colorado Independent reporter Nat Stein’s answer to my question of whether Stapleton’s office gave her a reason for declining comment: “His comms guy pretty much hung up on me, and three emails went unanswered,” tweeted Stein. “I just wanna talk!!”

——–

When a public official starts to develop a reputation for stonewalling the media, the trend should be highlighted, especially now that fewer reporters are out there to ask public officials anything at all. Every reasonable question should be cherished. And every denial called out.

No long ago, State Treasurer Walker Stapleton declined to take questions from the evil Denver Post about why he withdrew his support from a bill aimed at making money for PERA, the state’s public retirement program. Then Stapleton shamelessly called the resulting article “completely misleading,” even though he’d refused to talk to the reporter about it.

Now Stapleton declined to comment on a softball request by the Colorado Independent’s Nat Stein about a #BlackLivesMatter campaign to change the name of the Stapleton neighborhood, because former Denver mayor Benjamin Stapleton was a member of the KKK.

Stein reports:

The Stapleton legacy — or its name, at least — still lives on in state government. Republican Walker Stapleton is currently serving his second term as state treasurer. His press office declined to comment on this article.

And as for the obvious question — well, what should Stapleton be named instead? — Pullen said Black Lives Matter 5280 hopes Stapleton could be renamed after a woman of color who made significant, historical contributions to Denver.

Nat Stein did not respond immediately to a request via Twitter to explain why Stapleton’s office refused to address questions about his family’s KKK history. I mean, how hard can this be for Stapleton to answer?

Media omission: Trump’s stance against birthright citizenship mirrors Coffman’s

August 17th, 2015

Donald Trump sort of clarified some aspects of his immigration position over the weekend, giving local media a chance to educate us about the illusory stance of Rep. Mike Coffman of Aurora.

Trump released a document outlining a number of ideas, but the headliner was his newly articulated opposition to “birthright citizenship,” the longstanding U.S. law granting citizenship to people born on American soil, even if their parents are not citizens.

Coffman has been way ahead of Trump on this one, reaffirming his opposition to birthright citizenship in a Denver Post interview in 2013.

Coffman: You know, I think we should probably adopt the policies of other countries, that you are a citizen of your parents. But the fact is, that we have children who were born under current U.S. law. And therein lies the challenge that I have, particularly in meeting families up in what is a very new district. And that –

Denver Post: You’d see that changed, right? Is that what you’re saying?

Coffman: Sure. I mean, I think we ought to look at that. But , the fact is, what we have to understand, the fact is, we don’t revoke citizenship once it’s given. [BigMedia emphasis]

Trump’s immigration paper, which received substantial attention, also renewed his call for deporting all undocumented immigrants, cattle-car style, back to their country of origin. And then expediting the return of the good ones, but not granting them a path to citizenship.

Like Trump, Coffman has also called for giving a vague “legal status” for adult immigrants, without a path to citizenship. He hasn’t said whether he’d require cattle-car deportation first. Either way, Coffman appears to be aligned with Trump on creating an underclass of workers, in the great tradition of taxation without representation.

High-profile policy pronouncement by celebrity presidential candidates continue to offer a great avenue to educate the public about the positions of their local politicos. I’m hoping reporters jump all over these local angles as we get closer to next year’s election.

 

Irony Watch: Michael “Heckuva a Job” Brownie calls Black Lives Matter protesters “dip-wads”

August 13th, 2015

You’d think if there were anyone who’d understand the Black Lives Matter protests, it would be President George W. Bush’s  FEMA Secretary Michael “Heck’ve a Job” Brownie.

But, alas, no. Apparently forgetting that he embodies the problem that Black Lives Matter is trying to spotlight, Brownie had this to say Monday about a protest pointing out that Benjamin Stapleton was a member of the KKK and calling for Denver’s Stapleton neighborhood to change its name.

“You dip-wads. You absolute dip-wads,” said Brownie on his  KHOW 630-AM morning show (@5:15 below), arguing that Stapleton, a former Denver mayor, was a leader to create red rocks and people like Cesar Chavez has been accused of initiating violence.

Brownie played a news clip of a protester saying that Stapleton’s name is a symbol of “lingering white supremacy in our community.”

Brownie mocked the comment (@6 minutes): It is. It absolutely is. Because if you go out there go that Stapleton neighborhood right now, you won’t find one black person out there at all. Not at all. And in fact, I can remember at Stapleton, I would look around to find someone to help me with my bags. There was never a black person working at Stapleton International Airport. Never. Never. Never. Never.

You people are so full of crap it just drives me up the wall. If you would just open your eyes and look at the fricking Stapleton development, what would you see. I bet you’d see evil white people. Then you’d see black people. Then you’d see Hispanic people. And I don’t know, you might have to dig, but you might even see some Asian people. Although I really doubt there are, like, Native American people out there, because Native Americans just live in Teepees on the reservation, so there wouldn’t be like any Indians living out at Stapleton. No. Not at all. You people are the biggest dumb-asses I’ve heard in ages. ‘We just want you to be aware that this is just a reminder white supremacy,’ said the black people living at Stapleton. God you’re dumb.

How could the man who presided over the Katrina disaster, and resigned in disgrace, deliver a rant like that? I guess it’s because Brownie is the guy who presided over the Katrina disaster. Yet another need for the Black Lives Matter protests.

Exit interview: Joanne Davidson answers questions about journalism and her 29 years at The Denver Post

August 12th, 2015

Last month, Joanne Davidson took a buyout from The Denver Post and left the newspaper after a 29-year run, serving as society editor since 1985. Prior to The Post, she worked for U.S. News and World Report. Davidson’s coverage of social gatherings, fundraisers, and nonprofit events was a benefit to our community, beyond what many people understand. Her work will be missed.

Davidson kindly accepted my request to answer a few questions about journalism and her career at The Post.

Why are you leaving The Post? Would you have stayed on if not for the economic troubles facing the newspaper and the pressure this puts on reporters?

I left The Post, after 29 years and eight months, not because I wanted to but because I was afraid of what might happen if I did not accept the buyout that was made available to 20 employees. When the buyout was announced, it was made clear that even if 20 people were to accept, there was a chance that further belt-tightening would be necessary. Which I interpreted to mean getting laid off without the financial cushion that the buyout provided.

You were known for writing about fundraisers and “society” events. Do you know if The Post will continue covering this beat after your departure—and it seems no other media outlet in town covers this stuff? What’s lost for Denver if your beat is eliminated or scaled way back?

I don’t know what the plans are, although I would be very surprised if the coverage is discontinued. It may continue in a different format, such as pictures only, or it might continue with general assignment reporters or interns taking turns covering the events. I just don’t know.

It would be a huge loss if it was discontinued. Nonprofits count on the exposure to build awareness and attract new supporters. And people new to town can learn about the various worthy causes by reading about the organizations that I covered.

But society coverage is much more than shooting pictures of people all dressed up in their party clothes. (And by the way, I need to emphasize how much I dislike the term “society coverage.” It implies a focus on rich white people when in fact I worked very hard to be as inclusive as possible).

Many years ago I did a story that outlined the “trickle-down theory of society economics.” It pointed out the financial reach a fundraising event has: the graphic artists who design the invitations, printed programs and souvenir journals; the printers who print them; the venues who rent the space for the events; the purveyors who sell the meat, veggies, breads and whatnot to the chefs who prepare the meals; the waiters and bartenders who staff the event; the florists who provide the flowers; the valets who park the cars; the event planners hired to make sure everything runs smoothly; the boutiques, department stores and tuxedo rental shops where those attending the events buy or rent something to wear; the musicians and speakers who are booked to entertain or inform; hair stylists and manicurists who have an uptick in business the day of the benefit …

Diminished resources aside, what are your biggest concerns about how political journalism is practiced in Colorado today?

My biggest concern is that without a newspaper adequately staffed with inquisitive and knowledgeable reporters, too many things that need to be brought to the public’s attention will pass unnoticed. Reporters need to be watchdogs, unafraid to hold any decision-maker’s feet to the fire.

What do you admire most?

How well my colleagues are able to keep on keepin’ on despite the challenges with which they are saddled.

What’s the worst error you made as a Colorado journalist? Can you name a story or two you’re most proud of?

The worst error came about a week after I started at The Post.

I was covering a holiday party put on by the president/ceo of The Denver Dry Goods. I had just walked in the door when a guest approached and asked, “Have you met our host yet?” I said that I had not. So the guy says, “Well, his name is Joe Davis. He’s surrounded by people right now, but let me see if I can break him away for a minute so the two of you can chat.” Long story short, I had another event to get to that night, so I could only stay at that party for roughly a half-hour and wound up having to leave without having been introduced to the host. But, in the story I wrote, I described in great detail the party that Denver Dry Goods president Joe Davis had hosted. The ink was barely dry on the paper when a barrage of angry phone calls began. Joe Davis, they pointed out, was president/ceo of the Denver Dry’s arch rival, May D&F! Tom Roach was the boss at The Denver Dry Goods.

Needless to say, both the editor, publisher and vice president of advertising were not pleased. Joe Davis and Tom Roach, were able to laugh it off, thank goodness. But not before I hand-wrote letters of profuse apology that were delivered by courier, along with very expensive bottles of their favorite adult beverage.

As for stories of which I am most proud, I would have to say no one story in particular but the fact that I made it a priority to get to know and write about people from all of Denver’s ethnic and income communities. Years ago I read an obituary for New York Times society columnist Charlotte Curtis that recalled the answer she had given when someone asked what her definition of “society” was. To her, “society” was the entire human race.

That’s how I define it, too.

What would you say to a young person considering a career in journalism?

Go for it. It’ll be the best job you will ever have.

What will you miss most about your job at The Post?

The people, the long hours, the pressure … swear to God, I loved it all. But the landscape has changed and it’s time to move on.

Anything else you’d like to say?

Stay tuned. You haven’t seen the last of me yet!

[See more in this series of “Exit Interviews” with journalists here.]

Coffman and Rubio’s path away from immigration reform

August 11th, 2015

A good way to understand (or get further confused) about Rep. Mike Coffman’s illusive position on immigration is to compare it to Florida Sen. Marco Rubio’s. And reporters should consider using this comparison to help explain Coffman’s (non)position to voters.

Back in 2013, Rubio was part of the “Gang of Eight” Senators (including Michael Bennet) who pushed a comprehensive immigration bill that, miraculously, passed the U.S. Senate. It offered major border security, along with a long path to citizenship for undocumented immigrants in America.

Despite claiming to be for “comprehensive immigration reform,” Rep. Coffman opposed the Rubio bill and its path to citizenship. And House Republicans, with Coffman’s blessing, never voted on the Rubio bill, and it died a truly tragic death.

Asked why he wouldn’t support the comprehensive-immigration-reform legislation, after he’d thumped his chest in The Denver Post in favor of the idea, Coffman said he didn’t want it all in one bill.

Instead, Coffman said he wanted a “step-by-step,” multiple-bill strategy, telling the Aurora Sentinel that a “comprehensive approach doesn’t have to be a comprehensive bill.”

And Coffman scrubbed the phrase “comprehensive immigration reform” from his website.

Now Rubio is running for President and facing Republican voters who are hostile to immigrants entered our country illegally. And so he’s given up on his gang-of-eight, comprehensive bill and is now favoring of a vague “three-step” dance that ends with a “further discussion about whether they’re allowed to apply for a green card.” The path to citizenship is gone.

In its place, Rubio has advocated Coffman’s position to give “legal status” to adult undocumented immigrants, creating a taxation-without-representation underclass of America workers.

With this new stance, Rubio is no longer considered a moderate on immigration. He’s joined Coffman and the Republican right in opposing serious reform. At this point, with his position such as it is, Rubio would vote against his own immigration bill of 2013.

For his part, Coffman hasn’t even said which parts of Rubio’s vague “step-by-step” process he favors, since Coffman has never outlined the steps—even in bare bones terms–much less identified specific bills that he actually factually would vote for.

So Rubio’s flipping and flopping sheds some light, such as it is, on Coffman’s immigration mushiness. It’s a useful trip back, and, for reporters, there will be more opportunities like this to review policy stances of local politicians as the presidential campaign drags on.

 

Media omission: Brauchler denies “ego” or “political ambition” as he goes on the radio attacking the Aurora murderer’s parents and The Denver Post

August 10th, 2015

George Brauchler leaped onto conservative talk radio this morning to deny that his decision to pursue the death penalty in the Aurora-shooting case, instead of saving big bucks and major trauma by accepting a plea deal of life in prison, was driven by “ego” or “political ambition.”

“People who are opposed to the death penalty are going to find reasons to accuse me or any other prosecutor for seeking it,” said Brauchler on KHOW’s Mandy Connell show this morning. “And the most likely targets are, ‘Oh, it must have been ego, or it must have been political ambition.’

Brauchler denied this, but there he was leveling his harshest tone and barbs on conservative talk radio. Home base of the Republican Party, on the morning after the verdict. You respect Brauchler for taking questions about the case, but why jump on conservative talk radio circuit and sound like a conservative talk-radio host?

At one point  on KNUS’ Craig Silverman Show Saturday, Brauchler attacked the parents of the shooter for not talking to him directly during the trial.

Then he slammed not only a Denver Post editorial as “strident” but The Denver Post editorial board itself as becoming irrelevant.

First, here’s Brauchler’s comment to Silverman, lambasting the murderer’s parents for not calling him up and begging, as Brauchler put it, “Please, God, don’t kill my son….”

To his credit, Silverman pointed out that the parents were likely just following their lawyers’ instructions not to talk to a guy who’d successfully sought the death penalty in the past and was crusading to put their son to death.

Brauchler (below at 11 minutes): There is something that sticks out to me that I find completely unusual, and that is, at no time during the pendency of this case have the ever reached out to me. In fact, I had people call them throughout the pendency of this case, and they continued to hide behind an attorney. And while I get there are legal reasons for them to maybe not talk, but as a parent myself, and I’d ask anybody listening to this, if your son or daughter was facing the potential of a death penalty, what could stop you from calling the DA and saying, ‘Please, God, don’t kill my son or my daughter.’ Instead, they went to The Post and did an op-ed piece coincidentally timed with three days after the juror summonses went out. And then mom published a book of thoughts—or whatever they were—calling into question, of course, our motives, and saying a bunch of things about mental illness coincidentally timed with the middle of jury selection, right before opening statements. I mean, again, they are not at fault for what happened here, but I can’t, as a parent, envision taking the path that they took.

Silverman: Bob and Arlene [the murderer’s parents] were in the courtroom. I imagine they were following the instructions of the public defenders, their son’s attorneys. …

Later, Brauchler turned his attention to The Denver Post, saying its “strident” Friday editorial against the death penalty is evidence, along with polls showing 2-1 support for the death penalty in Colorado, that the newspaper’s “editorial board continues to demonstrate some irrelevance.”

Brauchler (@ 50 minutes 20 seconds): The Post op-ed piece [sic] was striking in how over-the-top it was to me. And I get that they had been opposed to the death penalty from the word go. But the strident language that they used to suggest that somehow I had seriously misjudged the jury. It sounds like there was one juror, and the other jurors were on board with moving forward through the rest of the trial, as was even that juror. I wonder what that their tone would have been had that one juror gone the way of the others and they had imposed death. I’m sure it would have been critical. And I think the point that The Post missed, and maybe this is the part of how this editorial board continues to demonstrate some irrelevance, is this Quinnipiac poll showing Coloradans are two-one in favor of the death penalty.

Lashing out at the murderer’s parents? At The Denver Post? On conservative talk radio? Why is Brauchler behaving like this? Hmmm.

Brauchler on KNUS’s Craig Silverman Aug. 8, 2015:

Brauchler on KHOW’s Mandy Connell Aug. 10, 2015.

Media omission: GOP activists allege that GOP State Chair is concealing dire financial problems from donors

August 10th, 2015

UPDATE: In the FAQ below, GOP activists have clarified and corrected a couple issues in this blog post, but the central points still stand.

—–

In an email distributed Friday by GOP activist Marilyn Marks, three GOP Central Committee members express dismay over the financial health of the state Republican Party and accuse State Chairman Steve House of concealing outstanding liabilities from donors.

The letter was signed by Nicholas Lundberg and Doug Childress. They did not immediately respond to my request to verify the letter, but other sources have verified it.  It was addressed to members of the Republican Central Committee.

The email lists 11 specific items, and it requests that the Executive Committee, which beat back an effort to oust House, address the financial concerns at its Aug. 19 meeting.

Most of the points focus reporting failures; others allege deception:

3.        Chairman House acknowledged that he concealed and failed to report outstanding liabilities and bank debt to avoid donors learning that the party was in “dire financial straits.” Such failure to disclose violates campaign finance laws, violates bank covenants, and is unethical with respect to reporting obligations to the CRC.

4.        Chairman House states that at least $188,000 in unrecorded liabilities have intentionally not been disclosed. He states that unpaid legal bills make up a significant amount of the liability and relate to the Independent Expenditure Committee (IEC) legal issues. He further states that it is undetermined whether the party will ultimately pay for this liability.

An email seeking comment from the Colorado Republican Party was not immediately answered.

The letter asks that the Committee insist that an “independent CPA firm be immediately engaged to audit the books and records and prepare financial statements as required” by the bylaws of the state Republican Party.

The letter summarizes the situation this way:

We write you as concerned legal and financial professionals to explain our growing concerns about the Colorado Republican Party’s financial reporting and disclosures. The party appears to be materially out of compliance with federal and state reporting requirements, bank loan covenants, and bylaw financial reporting requirements. This situation is exacerbated by Chairman [Steve] House’s disregard for basic requirements of financial transparency, decisions to conceal material liabilities, and his lack of candor regarding financial matters…

Repeated efforts made by several other CRC members to persuade Chairman House to address the issues have been unsuccessful. Instead, he has demonstrated a lack of basic business knowledge and financial literacy resulting in significant financial reporting problems and reputational damage to the party.

The text of the letter, without attachments, follows:

Dear Fellow Central Committee Members:

As we work to prepare for an exciting 2016 election, our state party must undertake some preparatory work to ensure that the party is in a strong position going into election season.  Financial health and transparency are essential foundations for success as we seek to attract voters, candidates and donors. The party faces concerning financial reporting issues we wish to bring to your immediate attention for a timely remedy.

We write you as concerned legal and financial professionals to explain our growing concerns about the Colorado Republican Party’s financial reporting and disclosures. The party appears to be materially out of compliance with federal and state reporting requirements, bank loan covenants, and bylaw financial reporting requirements. This situation is exacerbated by Chairman House’s disregard for basic requirements of financial transparency, decisions to conceal material liabilities, and his lack of candor regarding financial matters.

The problems are attracting the attention of the press, candidates, volunteers and donors. They must be promptly addressed by the officers of the party to repair the reputation of the party, and to diminish the financial risks. Repeated efforts made by several other CRC members to persuade Chairman House to address the issues have been unsuccessful. Instead, he has demonstrated a lack of basic business knowledge and financial literacy resulting in significant financial reporting problems and reputational damage to the party. We ask that you join with us to seek the commitment of Chairman House, the Audit Committee and the Executive Committee to bring the party into compliance with: Federal Election Commission financial reporting requirements Affirmative Loan Covenants with Centennial Bank requiring the books and records be kept in accordance with Generally Accepted Accounting Practices (GAAP); Bylaw requirements for independent CPA firm annual audits; Bylaw requirements to provide quarterly financial statements to membership.

Non-compliance may have been a problem in prior administrations, but improper past practice cannot stand in the way of the transparency and compliance. Nor can the excuse of “competitive secrets” be used to conceal financial information that must be public. The public has access to exceptionally detailed financial transactions through required FEC reporting, such as this 35 page June, 2015 report. Political parties are by law not permitted to have much “confidential financial information.”

Our concerns are based on the correspondence attached to this letter, the Quarter 1 and 2 schedules transmitted to the CRC, and recent FEC reports. We have also referenced loan documents and party bylaws. Our major concerns are:

1.         Chairman House improperly asserts that the party is not required to use GAAP. However, bank loan covenants require GAAP. The party is in technical default with the loan’s affirmative covenant to maintain its books and records in accordance with GAAP.

2.        Party members have a reasonable expectation of meaningful quarterly statements. Chairman House makes the nonsensical argument that the “books” are kept on different basis of accounting than used in the preparation of the financial statements.

3.        Chairman House acknowledged that he concealed and failed to report outstanding liabilities and bank debt to avoid donors learning that the party was in “dire financial straits.” Such failure to disclose violates campaign finance laws, violates bank covenants, and is unethical with respect to reporting obligations to the CRC.

4.        Chairman House states that at least $188,000 in unrecorded liabilities have intentionally not been disclosed. He states that unpaid legal bills make up a significant amount of the liability and relate to the Independent Expenditure Committee (IEC) legal issues. He further states that it is undetermined whether the party will ultimately pay for this liability.

5.        Chairman House states that he did not want to “dump” all the liabilities onto the required disclosure statements because it would appear to be blaming Ryan Call for large unpaid expenses.

6.        The bylaws require an annual audit by an independent CPA firm and to report the results of the audit to the executive committee. To our knowledge, no such audit was conducted for the year ending December 31, 2014, a clear violation of the bylaws.

7.        Chairman House’s staff wrote an email on July 9, 2015 that first quarter audit was under way, causing the delay in the CRC receiving the financial statements. However when the financial “statements” were released, they had not been audited.

8.        The recently released nonstandard, incoherent quarterly financial schedules were supplied to the CRC in lieu standard “quarterly financial statements.” Chairman House refused to provide the fundamental statements required by GAAP, Balance Sheet, Statement of Cash Flows and Income Statement. He argued that such statements are not required, although they are universally understood to be essential elements of an organization’s “financial statements” required under GAAP.

9.        The nonstandard financial schedule provided to the CRC classifies the $70,000 proceeds from a bank loan as a contribution and income, not as a liability. Chairman House considers it a “contribution” in his communication attached. Treating loan proceeds as income is not compliant with GAAP.

10.    Chairman House acknowledges that, despite the many month delay in producing financial statements, material adjustments must be made to the financials once they are “through the August ExComm meeting,” and “before month end,” implying that the ExComm will still not receive accurate financial statements in August.

11.    Chairman House indicates that the Q1 and Q2 financial schedules were prepared based on an “sense of” current “running rates” rather than actual financial activity. This is a serious departure from GAAP maintained books and records required by CRC’s lender, Centennial Bank.

Our concerns about the loan covenant default and CRC bylaw compliance are serious. The Audit Committee, which requires one of the three members to be a CPA, must provide immediate and direct oversight of financial management and reporting. It is imperative that an independent CPA firm be immediately engaged to audit the books and records and prepare financial statements as required in Article X of the bylaws.

We urge each of you to contact voting and non-voting members of the Executive Committee prior to their August 19 meeting to ensure that these issues are addressed by the Executive Committee. Urge the Executive Committee to direct the Audit Committee to set the scope of the audit at the Formal Audit level, as opposed to a review or a compilation, consistent with Article X.A.1.d of the bylaws.  All county chairs and congressional district chairs are members are the Executive Committee, whether they are voting or non-voting members. Non-voting members can attend executive sessions and take a meaningful part in requesting information and offering suggestions.

The linked pages of correspondence are included as supporting documentation for the summary of our concerns. We have highlighted some of the more concerning statements in yellow. While House’s assertions may appear reasonable if you skim his communications, a thorough reading reveals illogical deflection and lack of candor that represents an ethical breach and failure to disclose material financial information.

With the attention of the CRC and its Executive Committee, financial management issues can be brought under control in a timely manner so that our party can prepare itself for 2016 success.

Sincerely,

Nicholas Lundberg, Accountant, Denver CRC member

Doug Childress, CPA, Jefferson County CRC member

Celeste Gamache, Attorney, Denver County, CRC member

The day after the above email was distributed, Marilyn Marks send out a second email below, signed by the same GOP activists along with Randy Corporon, clarifying and/or correcting a few points:

Dear Central Committee Member:

You should have received an email yesterday that we wish to update to answer some of your inquiries and correct a few errors.

FAQs

Is the party insolvent? Is it able to pay the bills?  

Given Chairman House’s statements that liabilities may exceed $188,000 and a recent FEC report showing cash on hand of $125,000, there is reason for concern and Executive Committee review.

If the party is out of compliance with bank debt agreements, does that mean that the bank will call the loan?

Not necessarily. The bank will likely undertake a review of the financial condition, and make their decisions based on current risks and liquidity. They will likely demand financial statements based on Generally Accepted Accounting Principles.

Aren’t these just petty accounting technicalities that make no difference in getting Republicans elected in 2016?

No. If the party is in stable financial condition, the reporting issues can be promptly remedied. However, if the organization is facing a cash crisis, it will shake the confidence of donors, candidates, and vendors.

Chairman House’s emails state that he plans to have a closed-door session to discuss financial matters at the August meeting. Can he do that? 

Yes, but the Executive Committee should discourage that, given the legitimate interest that members, candidates, and donors have in the party’s financial picture.

Also, non-voting members may attend. All county chairs, CD chairs and chairs of affiliated organizations should be encouraged to attend, speak up and get answers for their constituents.

Shouldn’t this criticism be behind closed doors? Aren’t we just giving the Democrats ammunition and making 2016 tougher for us?

Private inquiries and requests have been unsuccessful. Chairman House has not been candid and has concealed information that the party is required to disclose.

The Democratic Party does opposition research and likely knows more about the issues than most Central Committee members do. We should expect them to use it mid-next year when it is too late for us to remedy the issues.

These financial reporting issues were inherited. Why are you blaming Chairman House?

Chairman House is responsible for complying with the bylaws, bank covenants and campaign finance laws, which all require a recognition of liabilities, whether or not they were reported in the past.

If you have additional questions, please let us know at ColoradoConcernedGOP@gmail.com .

Thank you for your questions and concern.

Sincerely,

Randy Corporon

Doug Childress

Nicholas Lundberg

This blog post originally listed Celeste Gamache, Attorney, Denver County, CRC member, as a signer of the Aug. 7  letter. She did not sign it.