Tag Archives: goozeviews

The Huge Controversy Over Gas Pipelines

atlantic coast pipeline demonstratorsBy Peter Galuszka

Just a few years ago, Gov. Terry McAuliffe seemed to be a reasonable advocate of a healthy mix of energy sources. He boosted renewables and opposed offshore oil and gas drilling. He was suspicious of dangerous, dirty coal.

Then he started to change. During the campaign last year, he suddenly found offshore drilling OK, which got the green community worried. But there’s no doubt about his shifts with his wholehearted approval of the 550-mile Atlantic Coast Pipeline proposed by Duke Energy, Piedmont Natural Gas and AGL Resources, along with Richmond-based Dominion, one of McAuliffe’s biggest campaign donors.

The $5 billion Atlantic Coast Pipeline is part of a new phenomenon – bringing natural gas from the booming Marcellus Shale fields of Pennsylvania, Ohio and northern West Virginia towards busy utility markets in the Upper South states of Virginia, North Carolina and parts ones even farther south. Utilities like gas because it is cheap, easy to use, releases about half the carbon dioxide as coal, which is notorious for labor fatalities, disease, injuries and global warming.

The Atlantic Coast Pipeline would originate at Clarksburg, W.Va. (one of my home towns) and shoot southeast over the Appalachians, reaching heights of 4,000 feet among rare mountain plants in the George Washington National Forest, and then scoot through Nelson, Buckingham Nottoway Counties to North Carolina. At the border, one leg would move east to Portsmouth and the Tidewater port complex perhaps for export (although no one has mentioned that yet). The main line would then jog into Carolina roughly following the path of Interstate 95.

It’s not the only pipeline McAuliffe likes. An even newer proposal is the Mountain Valley Pipeline that would originate in southern West Virginia and move south of Roanoke to Chatham County. It also faces strong local opposition.

atlantic_coast_pipeline mapThe proposals have blindsided many in the environmental community who have shifted some of their efforts from opposing coal and mountaintop removal to going after hydraulic fracking which uses chemicals under high pressure and horizontal drilling to get previously inaccessible gas from shale formations. The Marcellus formation in Pennsylvania, New York, Ohio and West Virginia, the birthplace of the American oil and gas industry, has been a treasure trove of new gas.

The fracked gas boom has been a huge benefit to the U.S. economy. It is making the country energy independent and has jump started older industries in steel, pipe making and the like. By replacing coal, it is making coal’s contribution to the national energy mix drop from about 50 percent to less than 40 percent and is cutting carbon dioxide emissions that help make for climate change.

That at least, is what the industry proponents will tell you and much of it is accurate. But there are big problems with natural gas (I’ll get to the pipelines later). Here’s Bill McKibben, a Middlebury College professor and nationally known environmentalist writing in Mother Jones:

Methane—CH4—is a rarer gas, but it’s even more effective at trapping heat. And methane is another word for natural gas. So: When you frack, some of that gas leaks out into the atmosphere. If enough of it leaks out before you can get it to a power plant and burn it, then it’s no better, in climate terms, than burning coal. If enough of it leaks, America’s substitution of gas for coal is in fact not slowing global warming.

Howarth’s (He is a biogeochemist) question, then, was: How much methane does escape? ‘It’s a hard physical task to keep it from leaking—that was my starting point,’ he says. ‘Gas is inherently slippery stuff. I’ve done a lot of gas chromatography over the years, where we compress hydrogen and other gases to run the equipment, and it’s just plain impossible to suppress all the leaks. And my wife, who was the supervisor of our little town here, figured out that 20 percent of the town’s water was leaking away through various holes. It turns out that’s true of most towns. That’s because fluids are hard to keep under control, and gases are leakier than water by a large margin.

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The Simple, Lovable Sidewalk

sidewalk By Peter Galuszka

Forever humble, the simple sidewalk is becoming an issue in land planning and transportation.

In densely-populated populated urban areas, sidewalks have been a staple of living since the time of the Ancient Greeks. They were classics in the familiar grid plans that marked most American towns in the 19th and early 20th centuries.

It all changed after World War II when thousands of veterans came home with access to cars and cheap mortgages and builders started constructing car-centric neighborhoods. The cookie-cutter plan included big subdivisions with only one or two access points, lots of cul de sacs and long streets and wound around until they emptied into the few access roads.

You couldn’t walk anywhere. The feeling was, with the complicity of such car-centric bodies as the Virginia Department of Transportation, that you didn’t need sidewalks because the kids could play in the cul de sacs and anyone could drive.

This started to change a decade or so ago as pe0ple wanted to walk more to the library, the store or to visit a neighbor. Suburban planners are taking this into consideration and are “encouraging” developers to put in sidewalks.

A couple problems here:

First, although the Tim Kaine administration changed VDOT policy to advocate more intersecting streets in new developments along with sidewalks, the policy has been watered down under pressure from the development industry.

The other problem is that while it is a simple matter to put sidewalks in new projects, retrofitting them in older ones is tough. It is expensive, there are rights of way issues and sometimes the terrain doesn’t lend itself to them. And, when sidewalks are put in, they merely connect with gigantic feeder roads where one might have to walk a half a mile to a stoplight just cross safely, as is the case in one instance in Chesterfield County.

For more, read my recent pieces in the Chesterfield Monthly and Henrico Monthly.

Richmond’s Tech Star in Kickback Scheme?

HDL LogoBy Peter Galuszka

Critics of the American healthcare system have long cited hidden charges as one reason why costs are so high and why reform is needed.

So, it is disturbing to read a report on the front page of today’s Wall Street Journal that Health Diagnostic Laboratory, arguably the most successful of the biotechnology firms to come out of a much-touted research park in Richmond, is implicated in a possible scheme to pay kickbacks to doctors who use its blood testing services.

The Journal reports:

Until late June, HDL paid $20 per blood sample to most doctors ordering its tests — more than other labs paid. For some physician practices, payments totaled several thousand dollars a week, says a former company employee.

HDL says it stopped those payments after a Special Fraud Alert on June 25 from the Department of Health and Human Services, which warned that such remittances presented “substantial risk of fraud and abuse under the anti-kickback statute.

HDL Chief Executive Tonya Mallory told the Journal that her firm “rejects any assertion” that the company grew as fast as it did “as a result of anything other than proper business practices.”

Meanwhile, HDL has sent Bacon Rebellion this updated response.

Others say that paying doctors fees sets up the chances for fraud, especially in Medicare, one of HDL’s biggest markets, the Journal reports. Other testing firms, the Journal reports, pay doctors nothing for using their services.

This is bad news for what was Richmond’s Poster Child of successful high tech startups after years of flops at the Virginia Biotechnology Research Park. Founded in 2008 under Mallory’s leadership, HDL zipped up to $383 million in revenues with 41 percent of that coming from Medicare,” the Journal says.

Much of the issue seems to be related to how accurately and fairly to define what is merely drawing a patient’s blood and how much goes for “P&H” or processing and handling. A problem is that Medicare doesn’t pay any more than $3 for merely drawing blood. HDL has estimated that the “P&H” part is worth about $17. The firm claims it has special proprietary methods that give it an edge.

According to Virginia Business magazine, which named Mallory its person of the year last year:

Mallory, 48, founded HDL in the summer of 2009. Since then, it has grown from a kitchen-table business plan to a corporation earning more than $420 million in annual revenue, employing 750 people, processing 4,000 lab samples and running more than 60,000 lab tests each day. HDL has driven near constant construction at its home in downtown Richmond’s Virginia BioTechnology Research Park, where a $68.5 million expansion soon will triple the company’s footprint to 280,000 square feet.

Last year Mallory received the Ernst & Young National Entrepreneur of the Year award in the Emerging Company category. One of the country’s most prestigious business awards for entrepreneurs, it recognizes leaders who demonstrate innovation, financial success and personal commitment as they build their businesses.

The Journal, however, quotes several disgruntled employees and notes that Mallory had worked for a California firm called “Berkeley Heart Lab Inc,.” which began using tests called “biomarkers” which can predict future health problems by analyzing blood.

Mallory, who was raised in Hanover County and attended Virginia Commonwealth University, was senior lab-operations manager at Berkeley until she left for Richmond in 2008, the Journal says. Two Berkeley sales executives went with her and formed a company that ended up marketing HDL’s products.
Berkeley sued HDL, accusing it of stealing its business. HDL denied the allegations. HDL settled one case for $7 million, the Journal says, but other cases are pending.

It’s Oh, So Richmond!

By Peter Galuszka

cantorWhen I looked at my Richmond Times Dispatch, I was stunned. I couldn’t find a story that their wunderkind Congressman, Eric Cantor, the kind of Republican they love, had gotten a big deal job with Moelis & Co., a New York boutique investment bank.

There was the story in the Wall Street Journal and the Washington Post. Finally, the RTD straggled  on with brief piece at 6:22 a.m. on its Website.

Maybe it’s embarrassment. Cantor, the former House Majority Leader, could do no wrong with his Main Street Republican friends or the editors of the local newspaper. His wife, Diana, was on the board when the newspaper was owned by Media General. Then came his stunning defeat in a June primary to unknown David Brat, who ran a mash-up of a Tea Party and Libertarian insurgency.

Moelis says it is hiring Cantor “for his judgment and experience” and ability to open doors, says the Journal. He’ll live in Virginia and have offices in Washington and New York.

Well, that was quick! Or maybe not. Cantor has raised $1.4 million from the financial services sector, as well as lots from managed care. His sense of entitlement is astounding. First, he thought he didn’t have to bother with the home folks in the Seventh District any more, costing him the election. They he arranged (with Gov. Terry McAuliffe’s help) a special election.

Doing so would get his replacement in office faster and thus Virginia can keep its seats on some important committees. But it also frees Cantor to take his plum job.

You didn’t read it in the RTD first! Somethings will never change.

Why There Will be No Ethics Reform

maureen_and_bob(1)By Peter Galuszka

As the McDonnell corruption trial moves towards its end, the predictable stories are decrying – once again – Virginia’s absurdly lax ethics laws and why they must be toughened.

There’s the usual observation that the five-week extravaganza of a trial that is drawing international attention will put the state on an entirely new axis when it comes to public integrity. Plenty of harrumphing.

The General Assembly, however, had its shot this winter and came through with only very mild changes putting dollar limits for tangible “gifts” while failing to take any kind of substantive measure, such as establishing a real investigatory ethics commission.

The best work I’ve seen has come from the Roanoke Times’ Dan Casey who pored over the new ethics law that went into effect July 1 and compared it with testimony that ended last week at the McDonnell trial (it goes to the jury tomorrow.)

A few of Casey’s pointers:

  • The famous $6,500 Rolex. Would Jonnie Williams been stopped from giving it to Maureen and then Bob McDonnell? Not at all. The new law says that officials, spouses an immediate family may not accept anything tangible that is more than $250 in value. But, this applies only to lobbyists and business executives seeking state contracts. Williams wasn’t looking for a traditional state contract, specifically. He wanted gubernatorial help in prompting his product Anatabloc and gubernatorial muscle to pressure state universities into researching its key ingredient, anatabine.
  •  Bob probably wouldn’t have had to report the Rolex because it came from a “personal friend” who is not a lobbyist or person doing business with the state. At least McDonnell testified that he thought he was a friend. Not Jonnie whose plan was  to schmooze up Maureen and Bob, get them to get state university research and then the schools would apply to the Virginia Tobacco Indemnification and Community Revitalization Commission to give them more research money (plus the prestige of having the University of Virginia or Virginia Commonwealth University seal of approval on it.)
  • McDonnell daughter Cailin didn’t want the $15,000 Jonnie gave for her wedding luncheon. In fact, she wanted a very different, much smaller wedding that she and her husband would mostly finance. Mommy and Daddy said no but were short funds and Jonnie helped out. Would the new law change anything? Not at all. The law puts the $250 limit on “tangibles” but “intangibles” like dinners, outings, five figure vacations, a wedding event or $5,000 Louis XIII cognac bottles don’t count although they are supposed to be reported.
  • As for an ethics commission, we have a milquetoast “advisory” panel that has no investigative power. Once again, the “Virginia Way” prevails (see my Washington Post piece from last year. The state is all about self-policing because it is assumed that since Thomas Jefferson was honest, Virginia politicians must be, too. While Virginia has an excellent data base, the Virginia Public Assess Project, a non-profit, that can reveal what’s reported quickly and easily, it is too often seen as a substitute for a real ethics commission with subpoena power.

Gov. Terry McAuliffe, who signed the limp-wristed law, says he wants to review ethics and make regs tougher.

I doubt that will happen. I do not think we’re seeing a sea change in attitudes among legislators. Even if voters were going nuts, they’d still have to deal with a General Assembly that is dominated by hard-right Republicans who are selected in primaries and not general elections and are probably the most conservative ever thanks to gerrymandering and the anti-reg mantra they pray like a Rosary.

Can GiftGate happen again in Virginia? In the words of convicted former Illinois Gov. Rod Blagojevich: “You betcha!”

A Confederacy of Cynics

But Maureen gave them back

But Maureen gave them back

By Peter Galuszka

It was an odd scene. The first floor security point at Richmond’s federal court was filled with spiffy, middle aged blonde women all chattering loudly as the grandfatherly guards tried to herd them through. Some had so much bling, they had to go through the metal detector three times after removing yet another trinket or belt or watch or bit of jewelry. Normally, the line would be the usual mob of family, reporters, sketch artists and stray onlookers.

On the  corridor outside the seventh floor trial room, it might have been cocktail hour at the Republican Governor’s Association. The same pack of blondes was there. Many had large handbags stuffed with big pillows for their day on the hard wooden seats. Hugs and kisses everywhere. One man was especially natty in a Navy blue blazer, open necked striped dress shirt and a year-round tan. Palm Beach, anyone?

A younger woman kept bumping into people amidst the din as we all waited to be let in the courtroom. She sported a thin Louis Vuitton handbag. Then it struck. This is Maureen McDonnell’s cheering section for closing arguments that lasted from morning until early evening on Friday. That designer name, along with Oscar de la Renta, seems to have been her favorites when she pushed businessman Jonnie Williams to take her on shopping sprees or send her things.

After the Virginia State Police called in for an interview in February 2013, she packed up the goodies and sent them back to Jonnie. In some cases, these were items she had received two years before. Suddenly Maureen wanted to give them to “charity” or to one of the Williams’ daughters.

And that — the curious timing of scores of seemingly unrelated events over a period of more than two years from 2010 to 2013 — is what the seven men and five women jury must decide this coming Tuesday.

The point isn’t the gaucheness of the designer label stuff. Ms. McDonnell wasn’t a public servant and normally could accept whatever she wanted from Williams or anyone else. If it were stock, her husband, the former governor, would have to report it on his annual Statement of Economic Impact form. One year, Ms. McDonnell sold her stock in Williams’ company Star Scientific before the reporting deadline only to repurchase it the next year. The conclusion seems obvious, but draw your own.

It’s these kinds of coincidences that really do add up, argued David Harbach, a deputy at the public integrity section of the U.S. Department of Justice, who set up a powerful case against the McDonnells by connecting the evidentiary dots. Jonnie meets with the couple, the inaugural dress comes up and is dismissed by the governor’s staff but Maureen gets a Williams spending spree in New York as a consolation prize.

Or take the Bob McDonnell. He’s setting up meetings for Williams to break free possible research on his product by top state schools just as he is mulling of terms for a $50,000 loan from Williams (his staff is kept in the dark about how much he is in hock to JW, a self-styled “Southern Boy”). The pattern seems rather obvious after five weeks of mucking through a swamp of often confusing evidence. An email comes in, a deal with Jonnie for something personal is struck, a check arrives, an email is sent, and a luncheon at the Executive Mansion or some other event featuring the Governor or the First Lady or both pushing Anatabloc, Williams’ anti-inflammatory nutraceutical, is scheduled.

“He wrapped himself up in the flag of the Commonwealth and stomped on it,” Harbach told the jury. “This is not how governors behave. Don’t stand on the coattails of Thomas Jefferson and Patrick Henry. Don’t let them do this.”

For the jury to do just that, it will have to weigh a key point of law. This is how far the idea of “honest services” goes with the wire fraud counts. It basically means that it is a crime if public officials deny their honest services to their citizens by accepting bribes or become involved in a conflict of interest. Prosecutors argued there doesn’t have to be a clear quid pro quo, something defense attorneys William Burck and Henry Asbill hammered against for hours. Honest services fraud has been used to nail former Alabama Gov. Don Siegelman, former U.S. Congress (and top Navy pilot in Vietnam) Duke Cunningham and former Illinois Gov. Rod Blagojevich.

The Supreme Court has moved to define more narrowly how “honest services” can be defined but it still is on the books. A crucial turn in the drama will come Tuesday, when U.S. District Judge James R. Spencer gives his extensive instructions to the jury. His definition of “honest services” will be an important part of that. Meanwhile, if you demand a “smoking gun” (whatever that is supposed to mean), I suggest you get back to watching Perry Mason reruns.

The defense spent a lot of time bringing up the McDonnells’ troubled marriage and financial debt. This is sad, tough stuff to go through day after day. And it is easy for anyone to be drawn into pangs of sympathy for hyper-anxious, lonely Maureen or serious, well-meaning Bob, “Boy Scout of the Year,” according to one friendly witness.

Contrasting that, of course, is the greedy, scheming Maureen (a “nutbag,” according to a staffer) and a self-absorbed, double-dealing Bob who should have known what is right and wrong for a public official to do. Conversely, he also would know how to hide stuff on his disclosure forms. We tend to forget that he was state attorney general not that long ago.

The creepiest part of all of this is how slyly the defense has humiliated Maureen as part of the “throw her under the bus” strategy. Yet she is going along with it, as her husband of 38 years. In doing so, the McDonnells are doing an amazing thing. They are actually beating Jonnie Williams on the cynicism scale and even the prosecution says he’s a criminal. No doubt about it.

I agree with the prosecution that Bob is a phony. On the stand, he was by turns humble and scolding. He casts himself as a public servant so pure of heart that it was almost a joke to listen to. He was always “accepting responsibility.” But he was always blaming someone else. Maureen, of course. His former brother-in-law screwed up the books at the troubled beach houses. He didn’t report a few golf outings on Jonnie’s tab at the posh Kinloch club in Goochland County because his staff screwed it up.

“This is a sad case, “Michael Dry, a prosecutor, told the jury Friday. “It is sad for the McDonnell family and sad for the state of Virginia.”

The View from Federal Court’s Media Room

mcdonnell By Peter Galuszka

The media corps is just starting to amble into small room granted by the U.S. District Court, albeit with tight rules. No cell phone calls outside the cramped quarters in the hallways. No slouching in the corridor with your laptop on the floor hoping your cellphone hot spot still works.

If you violate the rules, guards under the supervision of U.S. District Judge James Spencer, you could have your electronics confiscated.

The fun part is that it’s a congenial group with several from the local newspaper, three from The Washington Post which broke the McDonnell story, one from the Los Angeles Times, Reuters, the Wall Street Journal, Politico and me, for Bloomberg News.

We sit for hours on hardwood seats waiting for breaks to file updates or stories. The television folks must go tot he sidewalks outside and they have been admonished by tough Judge Spencer not to block the doorways.

The witnesses are a study in contrast — the largest being former Gov. Bob McDonnell who seemed calm, collected, even charming under three days of defense direct questioning.

It was a different tune yesterday under cross by Asst. U.S. Atty. Mike Dry, who in a steady and deliberate manner foisted a metamorphosis of McDonnell that would have done Kafka proud. Gone was the likable, good-looking man who almost broke down when he was shown the lovesick email he wrote his wife to save his failing marriage.

McDonnell had turned clipped, angry and confrontational. The more crew-cut Dry hit home at the contradictions, the more McDonnell went to tart ?No” or “Yes” answers.

How could it be that you and Maureen were so strained in your relations that you barely spoke (and thus could hardly conspire) when you took 18 trips with her in a 22 month time frame, including Florida, Kiawah, Smith Mountain Lake and other places.

You say you are a “good personal friend” of Richmond philanthropist William Goodwin (who gave you the $23,000 Kiawah trip). Name his children. McDonnell couldn’t.

You say your finances are in order (and you had a financial “expert” show that rentals at Sunseeker down in Sandbridge and the other properties were on the mend. How is it then that about a dozen financial institutions turned you down for traditional refinancing and you had to go to personal sources like Jonnie Williams for a bailout?

And if you were upset that wife Maureen had taken a $50,000 loan from Williams without your knowledge, why did you wait more than a month to contact Williams to ask what was going on?

We’ll have to see how long Dry continues with his cross examination. Some say it might end today. His strategy is to draw out endless inconsistencies. We’ll see how it works with the jury.

Comparing Virginia’s First Ladies

 By Peter Galuszka

Military Moms From  Ft. Belvoir Attend Group Baby Shower

Maureen McDonnell

How does Maureen McDonnell define being Virginia’s first spouse? What does she say about other women who are or have been in her role? How does she compare with other First Ladies?

Testimony in the federal corruption trial of Ms. McDonnell and her husband former Gov. Robert F. McDonnell has been highly defamatory to her. She’s been characterized as a greedy, deceptive “nutbag” who misled her husband, demanded fine things like designer clothing, and maintained a strange, emotionally close relationship to Jonnie R. Williams, a businessman who gave the McDonnells more than $170,000 in various loans and gifts to gain their help in promoting his products.

In another setting, anything of this, assuming it is true, would be a personal matter. But it isn’t. The fact is that Ms. McDonnell was very much a part of the political process. McDonnell ran for office repeatedly on the theme that he and his wife were religious, family-oriented individuals dedicated to public service. She could have chosen to minimize her role but she did not.

In fact, according to evidence introduced at the trial, she actually sent instructions to state employees pretending that she had the authority of the “Gov” to do the bidding of Williams. And when she traveled with Williams out of state to promote his product Anatabloc, she represented herself as “The First Lady of Virginia” and often had security officers with her at taxpayers expense. In other words, she is fair game for comparisons. Mind you, just a few years ago, this woman could have been a possibility for First Lady of the United States some time down the road.

She grew up mostly in Northern Virginia in a large family parented by civil service workers of the FBI. The former Washington Redskins cheerleader attended community college and worked mostly as a secretarial worker or aide for the FBI and other federal agencies. She and her husband have five children, and besides raising them, she has had a small, part-time business selling beauty and creams and health aids. As First Lady, she ran an initiative to help women and promote wine, veterans benefits and other matters.

The trial, now entering its fourth week, begs questions about what differentiates her background and behavior  with that of other recent First Ladies. I think it is a fair question. None of the others has ever had similar questions about them. I think a review of their backgrounds and accomplishments is the best way to make the point. Here goes:

Dorothy McauliffeDorothy McAuliffe, wife of current Gov. Terry McAuliffe. A graduate of The Catholic University of America and the Georgetown University Law Center, she has practiced securities law and now advocates for children and family issues.

Anne Holton, wife of former Gov. and U.S. Sen. Tim Kaine. As a child, Anne-Holtonshe and her father, former Gov. Linwood Holton, made national headlines during the civil rights area when they were photographed walking hand-in-hand to a newly integrated Richmond public school. The brave image helped calm tensions over court-ordered integration. She graduated magna cum laude from the Woodrow Wilson School of Public and International Affairs at Princeton and then got a law degree cum laude from Harvard. She was a prominent judge specializing in youth and domestic relations issues and is now Virginia’s Secretary of Education.lisa_collis2

Lisa Collis, wife of former Gov. and U.S. Senator Mark Warner. A graduate of the University of Virginia and the University of Texas, she has specialized in health and youth  issues as head of the Collis Warner Foundation.

Roxanne Gatling Gilmore, wife of former Gov. Jim Gilmore. A roxannegildescendant of the man who invented the rapid-fire Gatling gun, Ms. Gilmore is a University of Virginia graduate and has a bachelor’s and master’s degree. A specialist in classical studies she has taught Latin at the high school level and has been a professor in Greek and Roman studies at Randolph Macon College. She oversaw a multimillion makeover of the Executive Mansion and later wrote a book about it.

Susan-AllenSusan Brown Allen, wife of former Gov. and former U.S. Senator George Allen. She is a marketing specialist from Charlottesville who graduated from the University of South Carolina.

With one possible exception, I’d say that Virginia should be proud of its FLOVAs, the security term for First Lady.

Bob McDonnell’s Big Decision

 smith_mountain_lake2By Peter Galuszka

It was a gubernatorial quandary only Virginia could have .

In the summer of 2011, former Gov. Robert F. McDonnell was ready to take a few days off. He and his family had been going to Smith Mountain Lake, a popular destination near Roanoke with lots of golf courses and seven-figure lakeside homes.

At his corruption trial this week, McDonnell testified that his summer getaway had been bankrolled by Delta Star, a company with a big factory in Lynchburg that makes portable industrial electrical gear. The firm had put him up at one of their lakefront houses for $2,474 in 2010, according the VPAP, which runs a data base about this kind of thing.

Summer 2011 had proved a big problem, however. His wife, Maureen, had become fast friends with Jonnie R. Williams a rich Goochland County businessman. Williams had given Ms. McDonnell a $50,000 check and also paid $15,000 for her daughter’s wedding luncheon that June. She had traveled with Williams helping promote Anatabloc, Williams dietary supplement that has since been pulled off the market by the U.S. Food and Drug Administration.

The problem was — whose million-dollar-plus house would the McDonnells use? Williams very much wanted the McDonnells to stay at his sprawling domicile on the tip of a peninsula. Delta Star wanted the McDonnells to stay at their place.

What to do? They split it. The McDonnells stayed at Williams’ house for a getaway valued at $2,268 value according to VPAP. He also laid on a Ferrari that the governor could enjoy driving on the way home.

Delta Star made sure the family was entertained and fed. They provided the family with their very own boat to cruise the lake and catered meals – a $1,892 value for a long weekend.

Delta Star’s feelings didn’t seem to be hurt since they laid on another entertainment gift worth $10,182 in 2012.

And while we’re talking lakeside homes, guess who else also stayed at Williams’ place? Former Atty. Gen. Kenneth Cuccinelli, that’s who – to the tune of $3,000 in 2011. We haven’t heard much recently from the former firebrand, hard right politician but he is on the witness list.

And so it goes. And, by the way, getting vacation favors is very common. Check out former Gov. Tim Kaine’s expensive sojourn on the turquoise blue waters of the Caribbean Sea.

It’s not the only way Virginia’s extremely lax ethics laws work.

If you use your PAC, you have an automatic teller machine. For instance, Tim Hugo of Fairfax, the third-ranking Republican in Virginia’s House of Delegates, expensed nearly $30,000 for travel and food and $9,400 for his cellphone over an 18-month period. As a spokeswoman for the State Board of Elections told The Washington Post’s Laura Vozzella in 2013, “If they wanted to use the money to send their kids to college, they could probably do that.”

Is Pretentious Richmond Really Hooterville?

green acresBy Peter Galuszka

Is Richmond really Hooterville?

By golly gosh, that’s the impression that one might come away with after 14 days of testimony at the corruption trial of former Gov. Robert F. and Ms. Maureen McDonnell.

Pretentious Richmond likes to see itself as a genteel and sophisticated historic relic with a Southern snob appeal rivaling Charleston, S.C.; an architecture and culture that worship the English (although the best of the Brit lot didn’t always end up here); and basic unfriendliness. At the upper levels, people whose can’t trace their families back several generations are not really welcome unless they have lots of money, which bespeaks Richmond’s more honest background as a service and industrial town.

“RVA” as its promoters like to now brand it, is supposed to be a tourism and great restaurant destination with professional service (that’s a laugh). Residents are supposed to enjoy a high life that goes well beyond a burg of 1.25 million trapped in the distant shadows of Washington, D.C.

To be sure, some younger Richmonders are thankfully well beyond these handcuffs. So are a passel of “come heres” who have brought the town more sophistication from Germany, Japan or Croatia or even from  even from such Deeper South spots as Charlotte and Atlanta — Charleston being little more than a tourist trap and shipping center. Richmond does have nice museums, art galleries and a popular baseball team that they’re trying to ruin by moving it to a congested, politically orchestrated spot.

But you’ve got to wonder. In recent trial testimony, the story was told of Jonnie R. Williams, star witness for the prosecution, who tried to court (among many others) Dr. George Vetrovec, a researcher at Virginia Commonwealth University. Williams was trying to get VCU’s and the University of Virginia’s imprimatur on Anatabloc, Williams’ over-the-counter anti-inflammatory so questionable it has just been pulled off the shelves nationally. The former used car salesman also dotted doctors’ meetings with props from Johns Hopkins University as if they were supposed to impress the supposedly lower-tier Virginia folks. To their credit, many state officials didn’t bite.

Dr. Vetrovec thought he was going with Williams to the Executive Mansion to sample some of Ms. McDonnell’s cookies which are supposed to be delicious. Instead, it was a reception for dynamite director Steve Spielberg, in town to film “Lincoln” in October 2011.

Wowie! Zowie! THE Spielberg! “This is the most unusual event you can ever imagine,” the doctor said. As readers can see from the link, Vetrovec’s statements were reprinted in the London media, giving Richmond a somewhat laughable reputation.

Huh? Where the hell are we? “Green Acres?” Go to any city that Richmond aspires to be like Atlanta, D.C. or New York. No one would go nutty over Spielberg-spotting. Movie stars and directors are like so, so what? But Richmond was mad about “Lincoln” and was chock-a-block with all the local stand-ins they hired. You couldn’t walk downtown without tripping over the beard of an extra that he might have waxed with bacon grease to give it an 1865 look and aroma.

My own sister was an extra in “The Exorcist” in Georgetown back in the 70s but she never regarded it as the high point of her life. It was more an amusing anecdote to be shared over a glass of wine. When I worked in Moscow in friendlier times in the 1990s, I was driving downtown near a hotel. I was amazed since it was covered in bullet holes – even more so that I didn’t hear the shots although I lived nearby. Turned out it had been a prop for a Val Kilmer movie and they hadn’t cleaned it up yet. Muscovites did not gush. They walked silently by.

So are Richmonders really that impressionable? Is it a deep sense of being second rate? Is it an over-sized turnip truck? Why were the McDonnells so impressed with Williams’ Ferrari that they had 25 pictures of them with it? Had they never seen a Ferrari before?

There’s the $5,000 bottle of Louis XIII cognac in New York’s Four Seasons hotel. Later, Williams spent something like $36,000 for a four-day getaway for six people including the McDonnells at a posh Cape Cod resort. The six tippled 16 glasses of Louis XIII for something like $125 a snifter. Their dinner menus included lobster, duck, steak and fish – all on Williams’ tab.

And on it goes – the Rolex, Louis Vuitton, Oscar de la Renta, the golf clubs and so on.

The obvious corruption is worrisome and hopefully the  federal (not state)  court will address it.The extra blow is that Richmond doesn’t just look bad, it looks ridiculous. It seems like a Third World capital, perhaps Jakarta, where traders and investors used to bring special goodies for Mrs. Suharto (a.k.a. “Mrs. Ten Percent.”)

Will Richmond be regarded as too simple to handle business, culture, science and education in  a much more interconnected and increasingly sophisticated world? Will foreign business scouts show up at RIC with suitcases full of cash, or maybe fake gold trinkets? Could it be that the McDonnells have it right — Richmond is really Hicksville after all?