Federal authorities have charged the finance director for state House Speaker Christopher Donovan's congressional campaign with trying to hide campaign contributions following an FBI undercover investigation of alleged influence-buying at the state Capitol.
Robert Braddock Jr., the campaign employee, was arrested Wednesday night, according to a variety of sources. The questionable contributions were made in connection with efforts to kill legislation that would that would have imposed new fees and taxes on certain kinds of tobacco retailers, according to the arrest warrant affidavit.
Braddock has been fired, along with at least one other campaign employee allegedly involved, Donovan said in a statement early Thursday evening.
Donovan's campaign spokesman would not say how many others were fired, and wouldn't elaborate on the statement. Donovan did not make himself available on the telephone.
U.S. Attorney David B. Fein said the investigation is continuing.
Although Braddock is clearly identified by his position and name in investigative documents that federal authorities have made public, Donovan is not.
Braddock is described in the affidavit as finance director for "Public Official Number 1," who is a candidate for the U.S. House of Representatives from the state's 5th Congressional district and who is a current member of the state House of Representatives.
Public records show that Braddock has been working for Donovan for about $3,800 a month.
Donovan is the Democrats' endorsed candidate for Congress in the 5th District. He faces an Aug. 14 primary for his party's nomination against Democratic challengers Elizabeth Esty and Dan Roberti.
Federal agents have fanned out across party lines, and they went undercover to pursue the investigation. They have talked to as many as 12 legislators from both Democratic and Republican parties, as well as legislative aides. Interviewees included Democratic and Republican leaders, sources said. Two Republicans, House Republican Leader Lawrence Cafero of Norwalk and a House Republican legislative aide, John Healey, who both have been advised that they are not targets of the probe, sources said.
Donovan issued a statement shortly before 5:30 p.m. Thursday, saying: "I am cooperating fully with the investigation, which is on-going, as is my campaign."
"The campaign employees allegedly involved" – including Braddock – "have been terminated, and the leadership of the campaign has changed. Tom Swan is joining the campaign, as campaign manager, effective immediately."
Gov. Dannel P. Malloy, Donovan's fellow Democrat, commended the feds "for their diligence in the investigation and the speed in which they've taken action." He said "these allegations are despicable" and said Donovan should come forward with an explanation. "While I am encouraged that the Speaker is cooperating with the investigation, his position requires that he give our residents a full explanation of what he knows," Malloy said.
"Allegations like this not only damage a campaign or a candidate, they also undermine citizen's belief in their government's ability to carry out its responsibilities," Malloy said.
"These are very serious allegations that we expect will be thoroughly investigated," said Jeb Fain, spokesman for Esty, one of Donovan's Democratic rivals.
"This could be another in a series of ethical lapses by Donovan's campaign," said Chris Cooper, campaign spokesman for Mark Greenberg, one of four Republicans contending in an Aug. 14 primary for their party's 5th District nomination. Cooper cited Donovan's acceptance of legal donations — but, Cooper said, questionable ones — from lobbyists with bills pending before the legislature during its recently concluded 2012 session. "These are very serious charges, and at the very least they speak to the issue of judgment and character," Cooper said. "If it should turn out that Donovan knew about this activity, it is the worst possible breach of the public trust."
U.S. Attorney David B. Fein and Kimberly Mertz, who leads the FBI office in Connecticut, said Braddock, 33, was charged with conspiracy to conceal the source of contributions to the campaign of a candidate for the U.S. House of Representatives.
The complaint alleges that Braddock conspired with others to accept conduit campaign contributions, which are contributions made by one person in the name of another person. It is a violation of federal campaign finance law for any person to knowingly accept a contribution made by one person in the name of another person.
The purpose of the conduit contributions alleged in the complaint was to conceal the fact that the individuals who were actually financing the payments had an interest in tax and licensing legislation that was introduced earlier this year in the Connecticut General Assembly, over which Donovan holds considerable influence as speaker.
The legislation introduced would have deemed "Roll-Your-Own" smoke shop owners to be tobacco manufacturers under Connecticut law, a designation that would have subjected these shop owners to a substantial licensing fee and tax increase. The Legislature's Joint Committee on Finance, Revenue and Bonding voted in favor of the bill, Senate Bill 357, on April 3, 2012.
Forex: EUR/USD falls and tests 1.2400 - FXStreet.com
FOREX-Euro slumps; safe-haven yen rallies broadly - Reuters UK
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EU finance ministers haggle over bank rules - Yahoo Finance
BRUSSELS (AP) -- European Union finance ministers are to meet in in Brussels Tuesday to hammer out an agreement over how high banks should build their defenses against future financial shocks, with the U.K. running the risk of being isolated over who should set the height.
The EU's 27 members agree on the need to increase capital reserves of banks, following an international agreement called Basel III, which was negotiated by the world's largest economies to avoid another financial meltdown such as the one brought on by the collapse of U.S. investment bank Lehman Brothers in 2008.
But the U.K. wants national regulators to be able to set requirements significantly higher than those of the EU — a position opposed by almost all other EU members, who fear investors might then prefer UK banks and flee from those in other countries.
On his way into the meeting Tuesday morning, George Osborne, the British chancellor of the exchequer, was non-committal about the possibility of reaching an agreement.
"This is a time of considerable uncertainty in the eurozone economies," he said, referring to the 17 countries — the U.K. not among them — that use the euro currency. "And that uncertainty is undermining the entire European recovery. And I think we're reaching a point where we've got to make a decision to see the eurozone stand behind their currency. A very important part of that, of course, is strengthening the entire European banking system. And that is what we intend to do today."
Once enacted, Basel III would require lenders to increase their highest-quality capital — such as equity and cash reserves — gradually from 2 percent of the risky assets they hold to 7 percent by 2019. An additional 2.5 percent would have to be built up during good times. All members of the G-20 have agreed to implement Basel III; if the European Union succeeds, it would become the first entity to institute the new requirements.
The U.K. is arguing that, because national taxpayers have to bail out banks when they fail, national authorities should be able to set more stringent requirements to guard against such failures. A compromise proposal offered by the Danes, who hold the rotating presidency of the European Union, would allow national authorities some leeway to increase requirements beyond those called for in the Basel III agreement. That proposal has broad support — except, so far, from the U.K.
The finance ministers can approve the compromise proposal without British support, through what is known as qualified majority voting, in which member countries have different numbers of votes according to their populations. However, there is a tradition in the EU that changes that would affect an industry in a particular country — such as the banking sector in the U.K. — are not forced into effect over the objections of that country, and consensus is sought.
"I think there should be a unanimous decision on such an important issue," Swedish Finance Minister Anders Borg said on his way into the meeting.
Forex: EUR/JPY sub-97, lowest since Dec year 2000 - FXStreet.com
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