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States News Service October 17, 2008 Friday LARSON FIRM FLS-CONNECT MAY BE PLAYING ROLE IN SLANDEROUS, POSSIBLY ILLEGAL RNC ROBO-CALLS The following information was released by the Minnesota Democratic Party: Several news outlets have reported on the massive robo-calling campaign that the McCainPalin campaign and the Republican National Committee launching a possibly illegal, massive robo-call smear campaign attempting to tie Barack Obama with terrorism. The high-powered Republican political-consulting firm FLS-Connect owned by Jeff Larson, Norm Coleman's closest political confidant has a major contract with the RNC and may be behind the calls. In 2000, Larson's firm was linked to robo-calls on behalf of the George W. Bush campaign during the highly contentious GOP presidential primary in South Carolina that year that accused John McCain of having fathered a black child out of wedlock and accused his wife of being a drug addict. DFL Chair Brian Melendez released the following statement: Norm Coleman needs to come up with some answers for Minnesotans. Given his closeness to Jeff Larson and FLS-Connect, did he know about these despicable calls in advance? And will he denounce the calls? Or will he do what he did after calling for a positive campaign wink at the outside groups that are spreading malicious smear attacks on Democrats in an attempt to depress voter turnout? If Jeff Larson and his company FLS-Connect are in fact behind these malicious and potentially illegal calls, Norm Coleman owes it to Minnesotans to publicly call on Larson to end them and run a clean and legal campaign. This latest development is nothing more than a final desperate attempt to scare voters with twisted facts and fear into voting for McCain but it won't work. Minnesotans are fed up with the Bush/Coleman economy and won't be distracted from making real change on November 4. Coleman's Landlord And Political Confidant May Be Behind Smear Call Campaign By McCain-Palin And RNC: Republican National Committee Is Funding Thousands Of Robo-Calls Across The Country Associating Obama With A Domestic Terrorist Who Killed Americans. According to the Star Tribune, Tim Streeter came home from work on Thursday and did what he usually does check the voice mails on his phone at his Edina home. A woman's voice on the line told him Democratic nominee Barack Obama associated with domestic terrorist William Ayers, who killed Americans. She warned about Obama's extreme leftist agenda and hung up after leaving the Washington number for the Republican National Committee. Like thousands of others on Thursday, Streeter had been robo-called, Minnesota-style. Ordinarily, a robo-call is one in which a potential voter is called at home by an automatic dialer and is spoken to by a recorded voice. Phone calls of that kind, 32 seconds long, spread throughout the country following Republican nominee John McCain's comments during a debate Wednesday about Ayers, a former Weather Underground member, and his relationship with Obama.
Minnesota RNC Calls Are Being Made By Live People. According to the Star Tribune, In Minnesota, however, according to McCain campaign officials, calls like the one Streeter received were made with actual people on the other line.
It is against a 1987 Minnesota law to use robo-calling unless it is preceded by a live operator. Without revealing how many calls were made or how long they will last, McCain campaign officials said they complied with state law, even with actual costs of a live call ranging from 20 to 30 cents apiece, about 10 times the cost of a recorded call.
REPUBLICAN NATIONAL COMMITTEE IS A CLIENT OF JEFF LARSON'S TELEMARKETING FIRM, FLS-CONNECT:
The Republican National Committee Is A Client Of Jeff Larson's FLS Connect. According to the FLS Connect website, Our client list consists of the last five Presidential Campaigns and Bush/Cheney 2004. We also provide services for the Republican National Committee, the National Republican Senate Committee, the National Republican Congressional Committee, and hundreds of Republican State Parties and candidates on all levels, as well as corporations, associations and other organizations
FLS-Connect Services Include Automated Calls. According to the FLS Connect website list of services, Automated calls, or pre-recorded messages, have proven to be a cost-effective way to reach a targeted group of people quickly. Automated calls give clients the ability to record unique messages, often featuring a celebrity voice to convey a message.
Clients simply call a toll-free number to record a message, which is digitally captured on our specially designed system. Automated messages are delivered perfectly each time they are played, including to answering machines. FLSConnect.com, Our Services-Automated Calling, accessed 10/17/08]
FLS-CONNECT LINKED TO SLANDEROUS ANTI-McCAIN ROBOCALLS IN 2000 SOUTH CAROLINA GOP PRIMARY
McCain Was Target Of "One Of The Most Notorious Smear Campaigns" In 2000 South Carolina Primary. According to the New York Times: "In the 2000 South Carolina primary, one of the most notorious smear campaigns in recent American politics peddled distortions and lies about him, among them that Mr. McCain's current wife, Cindy, was a drug addict and that the couple's daughter Bridget, adopted from Mother Teresa's orphanage in Bangladesh, was a black child Mr. McCain had fathered out of wedlock.
Anti-McCain Smear Tactics Included Robo-Calls. According to a July 2008 Washington Post op-ed, In 2000, calumny effectively led to John McCain's defeat in South Carolina. That smear campaign against him used robo-calls and fliers, and e-mail also played an important role, as the New York Times reported in February 2000.
Larson Acknowledged 2000 Bush Robo-Calls In South Carolina. In 2000, the Washington Post reported that the precursor to Larson's firm FLS-Connect, Feather, Hodges, Larson and Synhorst, were linked to the South Carolina calls.
The advocacy calls for George W. Bush's campaign that became an issue in this year's South Carolina GOP primary were developed by Feather, Hodges, Larson and Synhorst. The firm maintains seven phone banks and 500 phones scattered from Phoenix to Minnesota. South Carolina, home of the Bush blitz, is one of the firm's best' phone centers, said partner Jeff Larson. Military wives from all over the country make calls for us there.'
Phones are great,' he said, because you can change your message right away.' With better voter lists and a new trend toward recorded messages, today's political calls are narrowcast' antiabortion activists will hear one script, voters in one small area will hear directly from a local pol. It's a blossoming business.'
JEFF LARSON IS A KEY FIGURE IN COLEMAN'S POLITICAL OPERATION
FLS-Connect Partner Jeff Larson Is Part Of Coleman's Inner Circle Of Advisors. According to the Pioneer Press, Larson is among the inner circle of advisers to Sen. Norm Coleman.
Larson Is The Treasurer Of Coleman's Political Action Committee. According to records filed with the Federal Election Commission, Jeff Larson has served as Treasurer for Norm Coleman's political action committee, Northstar Leadership PAC, since the committee was formed in April 2003.
Coleman Called Larson The Most Connected Person In D.C. That Nobody In Minnesota Knows. According to National Journal, Coleman said of Larson, He's the most connected person in D.C. that nobody in Minnesota knows.
COLEMAN'S CAMPAIGNS AND PAC HAVE PAID FLS-CONNECT MORE THAN $1.5 MILLION
Coleman Campaign Has Paid More Than $1.3 Million To FLS-Connect For Consulting Services And Rent. According to FEC expenditure reports, Coleman's campaign has paid FLS Connect $1,341,773.70 for consulting services and rent, with $469,395.64 in 2007 and $176,274.40 in the first quarter of 2008 alone. In 2006, FLS took in $109,019.04 from Coleman; 2005: $193,751.61; 2004: $144,139.63; 2003: $80,135.29; 2002: $139,738.62 and in 2001: $29,319.65.
Coleman's PAC Has Paid FLS-Connect More Than $193,000 For Services. Coleman's Northstar Leadership political action committee has paid FLS-Connect $193,214 for services. In the first quarter of 2008, Coleman's PAC paid FLS-Connect $49,849; 2006: $52,903 and during the 2004 cycle, FLS was paid $91,462.
As Recently As August 2008, Coleman's PAC Rented Office Space From FLS-Connect; Owed $17,500 In Rent. According to Northstar Leadership PAC's preprimary filing with the FEC, Coleman's PAC reported two payments on August 5, 2008of $3,500 to FLS Connect for rent and PAC management salaries. Coleman's PAC also reported an outstanding debt of $17,500 to FLS Connect for rent, and PAC management salaries.
COLEMAN LITERALLY SLEEPS IN FLS-CONNECT'S WASHINGTON OFFICE IN A SWEETHEART RENT DEAL IN LARSON'S MILLION-DOLLAR TOWN HOUSE
FLS-Connect Employee Uses Apartment To Work And Take Calls. In June 2008, National Journal reported, Coleman has a bedroom and a bathroom in Larson's town house and shares the remaining living space, which includes his old couch, table, and chairs, with FLS Connect. A company employee uses a portion of the apartment to work and take calls on some days, according to Larson.
Coleman Is Paying Just $600 Per Month To Live The Basement Of Jeff Larson's Simply Divine Million-Dollar House. In June 2008, National Journal reported, In July 2007, Coleman began paying Larson $600 a month in rent for a portion of a one-bedroom basement apartment in a Capitol Hill town house that Larson owns.
In February 2007, 140 North Carolina Ave SE (Larson's house) was placed on the market and listed on the website of Phyllis Jane Young Realty. Included in the listing is a huge English basement with a media center, office space, gorgeous custom marble and oak bar plus an airy guest bedroom and bathSimply Divine! According to District of Columbia records, Larson paid $989,900 for the house.
Coleman Missed Two Months' Rent; Retroactive Rent Paid Only After Press Inquired. According to National Journal, Earlier this month, after National Journal questioned Coleman and Larson about the living arrangement, the senator said he discovered that his rent for last November and January had not been paid. In mid-June, Coleman covered the back rent with a personal check for $1,200 made out to Larson and signed by the senator's wife.
Coleman Paid Several Months' Rent Late. According to National Journal, Coleman and Larson have had a rather loose arrangement when it comes to the senator's monthly $600 rent payments. Copies of the checks they provided to National Journal showed that the checks were often written nine or more days after the first of the month. Larson didn't cash a check written on March 10 until June 17after NJ questioned Coleman and Larson about their arrangement.
Coleman Sold His Own Furniture In Lieu Of One Month's Rent. According to National Journal, To cover one month's rent, Coleman sold Larson a couch, a table and chairs, and a desk from his old apartment. How did they determine that the furniture was worth $600? Larson: We just looked at it, estimated it was $600 and one month's rent. We were always conflictedif it was too high, somebody would say it's not worth that much. We erred on the side of taking one month's rent, valued at $600.'
COLEMAN DIDN'T HAVE TO PAY UTILITY BILLS IN LARSON'S APARTMENT FOR 12 MONTHS
Coleman Didn't Have To Pay Utilities For 12 Months. According to the Star Tribune, the Coleman campaign Wednesday released copies of the lease that Coleman and Larson signed July 3, and the $532.88 check that Coleman's wife, Laurie, made out July 14 to Larson for 12 months' worth of unspecified utilities.
COLEMAN'S SWEETHEART HOUSING DEAL HAS COME UNDER FIRE
Washington Post's Capitol Briefing: Revelations Surrounding Coleman's Living Arrangement With Larson Means Coleman Probably Needs A Good Lawyer. In June 2008, the Washington Post's Capitol Briefing detailed Coleman's living arrangement with Republican operative Jeff Larson, adding, Coleman appears to have a good friend in Larson and a great place to live in D.C. Now he probably needs a good lawyer.
Independent Watchdog Group CREW Filed A Complaint With Senate Ethics Committee Requesting Investigation Into Whether Coleman's Rent Of FLS-Connect Apartment Violated Senate Ethics Rule. According to a July 1, 2008, press release, Citizens for Responsibility and Ethics in Washington (CREW) filed a complaint with the Senate Select Committee on Ethics asking for an investigation into whether Senator Norm Coleman (R-MN) violated the Senate gifts rule by accepting lodging from Republican operative Jeff Larson.
CREW is asking the Senate Ethics Committee to look into whether or not Sen. Coleman is paying fair market value for the apartment, whether Sen. Coleman would have paid the November 2007 and January 2008 rent had National Journal not raised the non-payment as an issue, whether Sen. Coleman and Mr. Larson had agreed that Mr. Larson would not cash the March 2008 rent check, why Sen. Coleman suddenly made up his back rent after National Journal asked questions about it, and why Sen. Coleman's office announced that Ms. Kainz would be leaving the senator's employ after National Journal asked about her role.
CREW Executive Director: Senators Must Abide By The Ethics Rules At All Times, Not Just When They Get Caught Flouting Them. In July 2008, CREW Executive Director Melanie Sloane said, Few Americans have landlords who sometimes fail to cash their rent checks, ignore unpaid rent, or accept furniture in lieu of rent.
That Sen. Coleman has just such a landlord, who also happens to financially benefit from his relationship with the senator creates exactly the sort of appearance of impropriety that undermines the public's faith in government. Sloan added, Senators must abide by the ethics rules at all times, not just when they get caught flouting them.
Under Senate Rules, Ethics Complaints Trigger A Preliminary Inquiry By The Ethics Committee. According to the Senate Ethics Manual, Upon the receipt of allegations of misconduct, a preliminary inquiry is commenced of such duration, scope, and conduct as may be deemed appropriate, judgments which are normally made by the Chairman and Vice Chairman, acting jointly. Such preliminary inquiry may include any inquiries, interviews, sworn statements, depositions, or ubpoenas (sic) deemed appropriate to obtain the information to make any required determination.
Common Cause: Coleman Is Paying Below Market Value For D.C. English Basement. In August 2008, Mary Boyle, Vice President of independent watchdog group Common Cause, said, This is a legitimate question to be asking in light of the fact that he is apparently renting from someone with an interest in his official actions as a senator It would be one thing if he was paying above market value and they could argue that it is included in his rent. But he is paying below market for this apartment.
Common Cause: At a Minimum Not Paying Utilities Would Be Violation Of the Congressional Gift Ban. In August 2008, Mary Bolye of the good government group Common Cause told Sam Stein of the Huffington Post, At a minimum would be a violation of the congressional gift ban. Certainly under no way is it okay for a member of Congress to be taking free or subsidized rent or benefits from anyone, particularly from someone you are working with.
Washington Post's The Fix: Coleman Is Going To Continue To Face Questions About Living Arrangement In Larson's Basement. In August 2008, the Washington Post's The Fix ranked Coleman's Senate seat as the 7th most likely to change parties in 2008, and highlighted Coleman's living arrangement as one potential cause, noting, Sen. Norm Coleman ( R) is going to continue to face questions in the coming months about his housing situation while in Washington.
COLEMAN RECEIVED DISHONORABLE MENTION ON MOST CORRUPT LAWMAKERS LIST FOR SWEETHEART HOUSING DEAL
Coleman Received Dishonorable Mention on Citizens for Responsibility and Ethics in Washington (CREW) Twenty Most Corrupt Lawmakers' List. In September 2008, Coleman received a dishonorable mention from CREW on its list of twenty most corrupt lawmakers in Washington, citing the ongoing investigation into Coleman's questionable living arrangement with a Washington lobbyist.
CREW wrote, Over the past year, Sen. Coleman appears to have accepted lodging from Mr. Larson for at least three months without paying the agreed upon rent until caught by National JournalBecause lodging clearly falls within the Senate's definition of gift, Sen. Coleman appears to have violated the Senate gifts rule by accepting free lodging from Mr. Larson, someone who financially benefits from his relationship with the senator.
DFL PARTY HAS PREVIOUSLY CALLED ON COLEMAN TO COME CLEAN AND EXPLAIN HOW MUCH FLS-CONNECT BUSINESS IS CONDUCTED IN HIS APARTMENT-COLEMAN STAYS MUM
June 2008: Minnesota DFL Party Called On Coleman To Explain What FLS-Connect Business Is Conducted In His Apartment. In June 2008, the Minnesota DFL Party held a press conference to address Coleman's sweetheart living arrangement. Among the questions the DFL called on Coleman to answer was: how extensively do employees of Larson's company FLS-Connect use the living space for corporate business? What business do they conduct there, and how much contact does Coleman have with them? "
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