Kentucky Politics

RPK Chairman wants Beshear firm fired

Steve Robertson, Republican Party of Kentucky, tells the AP he wants the state to fire Stites and Harbison over the ethical lapses detailed in the Kentucky Central investigative report.

New Fletcher ad released on Kentucky Central scandal

Kentucky's Enron: Beshear claims refuted by careful reading of report

With a 48-hour head start on the Fletcher campaign, the Beshear camp effectively spun the analysis of the Kentucky Central investigative to some members of the Frankfort press corps. Fortunately, what was coming from Stites & Harbison and Beshear last Saturday is easily refuted by a careful reading of the investigatory report. Click the following link for a point-by-point summary rebuttal of the Beshear spin.
Click here to read a rebuttal of Beshear's claims.

And hang on for the ride, there will be lots more fireworks on this front in the coming days.

Herald Leader: Beshear failed to disclose key facts

Ryan Alessi continues to surpass other print journalists with his coverage of the Kentucky Central scandal. It's a complicated mess, and Alessi is the only reporter who has been willing to eschew other stories to focus his attention on unraveling the Gordian knot that Beshear and Graham have managed to keep tied up over the past 12 years. Showing his frustration with Alessi's success at getting the secret investigation revealed, Beshear reportedly vented at Alessi on his press conference by telephone yesterday.

Report reveals conflict of interest
Beshear failed to disclose key facts to state official

By Ryan Alessi

A conflict of interest by Steve Beshear's former law firm was "detrimental" to rescuing the financially crippled Kentucky Central Life Insurance Co., and Beshear failed to disclose key information to the state official overseeing the process, a confidential legal ethics report says.

The investigative report -- released at noon yesterday after being locked away for 12 years -- said Beshear was at least generally aware of a potential conflict of interest and that his former firm, Stites & Harbison, violated three Kentucky Supreme Court ethics rules.

Read more

Hebert: Report "likely puts Beshear campaign on its heels"

Mark Hebert's report on Louisville's WHAS TV last night was a solid summation of the impact of the secret report on the Kentucky Central scandal. Larry Forgy raises the specter of a federal investigation into Beshear's conduct. Best part of Hebert's report is an opportunity to see up close Beshear's legal adviser and cover-up buddy Retired Franklin Circuit Judge William Graham. Graham, who we're sure made several involuntary commitments to Eastern State while he sat on the bench, says that he and his friends would send Larry Forgy to "the looney bin." Glad to know that a political disagreement is your legal standard for commitment to the mental hospital, Judge.

Report opens door to federal investigation of Beshear

The report on Steve Beshear and his law firm came out today at 12 noon, just as planned.  The 91-page report supported by 308 more documents, may be the end of Beshear's political career. 

If the statements of fact and conclusions are correct, the Democrat gubernatorial nominee could be the target of a federal investigation for securities fraud and other offenses. 

Beshear and his law firm, Stites & Harbison, are accused of unethical behavior involving $15.4 million in securities pledged to the Bank of Louisville by Kentucky Central Life Insurance Co., both of whom happened to be clients of the firm.

The report describes how Stites & Harbison attorneys engineered a very clever end-around sale of those federal securities -- backed by the U.S. Treasury and GNMA -- without informing their client, Kentucky Central.

The report specifically names Beshear as knowing the transaction was occurring but did not inform his client that, in essence, $15.4 million was being taken from them without their knowledge.  Legal ethics and a commitment letter from Beshear's own law firm were violated time and again, according to the report by Porter, Wright, Morris & Arthur, the law firm that conducted the investigation in the mid-1990s.

Beshear, for his part, states repeatedly "I don't recall" specific events during the 1993 securities heist.  (Sound familiar?) 

When Don Stephens, liquidator for Kentucky Central, learned of the $15.4 million theft, the report states he asked Beshear about it.  Beshear claimed it didn't happen, but promised to get to the bottom of it.  The next day, Beshear gave Stephens a one-page letter with scant details of the transaction, according to the liquidator.  Beshear's recollection is much different; he says he gave Stephens a thick file with all the details.

As you can see, everyone is telling the same sad story except the man who wants to be our governor:  Steve Beshear.

How will he try to spin this?  An afternoon news conference by telephone may give us a clue. 

A national public relations firm has been called in to help with damage control, compliments of Stites & Harbison.  Will this in-kind corporate expenditure to the Beshear campaign be reported to the Kentucky Registry of Election Finance?  Regardless, is it a legal expenditure?

Steve Beshear may or may not recall.

The Kentucky Central scandal investigative report

Part One

Part Two

Still reading it myself, check back soon for an analysis and thoughts.

Joe B. Hall to West Ky Dems: Kentucky Central scandal will "shake you up"

The West Kentucky Journal is reporting that Steve Beshear canceled an appearance at the last minute at the West Kentucky Democrat Fish Fry in order to prepare for damage control in the wake of the expected release of the Kentucky Central scandal investigative report. In his place, he sent Joe B. Hall, former UK basketball coach. Many readers know of Hall's frequent surrogacy for Democrat candidates. In 2003 he traveled the Commonwealth for Ben Chandler in that gubernatorial tilt.

The Journal reports that Hall delivered a "chilling" message to Democrats, warning them to "be prepared for attacks that will shake you up." Based on the tone of the article, Hall's ominous remarks alone shook up the Democrats in attendance. Many Democrats left the event wondering if Hall's warning were true, will the Kentucky Central scandal spell defeat and disgrace for Steve Beshear? The Journal says Hall didn't explain.

Does Joe B. Hall already know what we're going to find out at noon today?