By Peter Galuszka
When is too much, too much?
That’s my thought when I read the Richmond Times-Dispatch‘s intriguing story this morning that Maureen McDonnell, wife of the embattled governor, traded thousands of dollars worth of Star Scientific stock supposedly without her husband’s knowledge.
In May, 2011, Jonnie Williams Sr., head of the troubled Star Scientific dietary supplement maker, gave Mrs. McDonnell $50,000. Used $30,000 of it to buy 6,500 shares of Star stock without husband Bob’s knowledge.
Let’s see if we have this right. Williams “loans” Maureen money. She uses more than half of it to buy stock in Williams’ company. Why?
When the stock tanked, she sold it, only to rebuy more shares later, again without husband Bob’s knowledge. Again, why? Buying Star isn’t exactly like buying Apple.
None of this was clearly reported. Under Virginia law, stock holdings of a public official and a spouse of more than $10,000 must be filed in an annual statement of economic income. Gifts to immediate family members do not have to be reported. The stock holdings were apparently reported in such a vague way no one could easily make the link between the McDonnells and Star Scientific stock. (Note correction from earlier filing.)
You mean husband Bob, cash strapped because his vacation properties weren’t renting, did not know that wife Maureen was trading thousands of dollars worth of stock while also promoting the firm’s products? He also didn’t know that the $6,500 Rolex was a “gift” from Maureen when it was really purchased by Williams? He did give the watch back.
By the way, Attorney General and gubernatorial candidate Ken Cuccinelli also held Star shares that he didn’t initially report. That was an “oversight” and he’s been cleared by prosecutors.
This is all getting too much. Bob McDonnell should have and should now go on TV and tell Virginians what the hell was going on. Completely, that is. Partial apologies and paybacks aren’t good enough. One wonders what state and federal investigators will come up next.
Each disclosure makes Virginia sound more and more like some little tinpot Third World country where a president-for-life sits on a pedestal while the wife and kids squander the country with payoffs, gifts or whatever.
Some years ago, for instance, I traveled extensively in Indonesia when iron-fisted Suharto was leader. His wife was known locally as “Madame Ten Percent” because in order for a foreign firm to get gas or oil or mineral rights, she needed a 10 percent payoff. It also reminds me of a major newsweekly magazine where I worked for 15 years. We had to disclose our holdings, including stocks, each year. So did our spouses.
The McDonnell camp keeps insisting that nothing was delivered due to its close ties with Williams, although Maureen did host lunches in the Executive Mansion for Star and pushed state officials to buy his products.
That’s OK, you see, because of Virginia’s daffy disclosure laws. Maureen’s lawyer has reassured us that everything was legal. McDonnell filed the stock ownership under “health care.” How helpful.
The Virginia Public Access Project, which tracks disclosures, couldn’t know about this because of the way it was reported, or not reported. The public didn’t know because if there is no data, there’s no disclosure. And it’s all legal and merry as a marriage bell.
Speaking of marriage, one gets a creepy feeling that the professional trouble shooters protecting Bob are throwing Maureen under the bus. Is she being set up to take the rap? Gee, it would be really hard to indict her.
As has been noted, the McDonnell camp has been turning on Jonnie Williams as well. Star says it won’t be indicted and is “cooperating” with prosecutors.
You may have thought that he and the McDonnells were good, good friends. Well, think again.
