“Can you tell me what, specifically, Ed means when ... - Cleveland.com

Can you tell me what, specifically, Ed means
when he talks of pay-­‐to-­‐play politics in Kasich
context?
Table Of Contents
d Picked Party Chairman Pled Guilty In A Pay-­‐To-­‐Play Scandal ................. 2
Governor. ......................................................................................................................................... 3
-­‐up ............................................................. 6
................................................................ 8
Organization ..................................................................................................................................... 9
......................... 11

Matt Borges:
A Pay-­‐To-­‐Play Scandal
Kasich Installed Matt Borges As The Chairman Of The Ohio Republican Party.
Dispatch: Borges
Borges, who has essentially been installed as the next
-­‐member central
committee. Many of its members were helped to election last year by
Dispatch, 4/24/13]
And Preisse Are Kasich Insiders; They Helped Raise Money For And
has partnered with Preisse to
help lobby for the county, according to Borges. Both Borges and Preisse are Kasich insiders; they
Borges Pled Guilty In A Pay To Play Scandal
2004: Borges Pled Guilty To One Count Of Improper Use Of Public Office, A Misdemeanor; He
Gave Preferential Treatment To Certain Brokers Who Made Contributions To His Boss. According
d guilty
Tuesday to misdemeanor charges involving campaign fund raising. The guilty pleas of former
Deters chief-­‐of-­‐staff Matthew Borges and former fund-­‐raiser Eric Sagun conclude a year-­‐long
investigation by a grand jury in Cuyahoga County that threatened
Borges, 32, of Columbus pleaded guilty to one count of improper use of
public office, a misdemeanor, and was fined $1,000 by Cuyahoga County Common Pleas Judge
Eileen Gallagher. Court documents said he gave preferential treatment to certain brokers who
-­‐
7/28/04]
Prosecutors Said Borges Instructed The State Investments Director To Dole Out State
According to The
office for securing preferential treatment for brokers who made campaign contributions.
Prosecutors said Borges instructed the state investments director to dole out state

6/28/04]
Pro
(Borges) admitted
doing, he used the power of his office to gain favorable treatment for vendors that did business
Cincinnati Enquirer, 7/28/04]
Three Kasich Insiders
Cashed In On
Their Relationship With The Governor.
Columbus Dispatch: [Don] Thibaut, Robert F. Klaffky And Douglas J. Preisse Are Ohio's Newest
Superlobbyists... Since Kasich's Election, Business Has Boomed For The Three Lobbyists.
According to The Columbus Dispatch "[Don ]Thibaut, Robert F. Klaffky and Douglas J. Preisse are
Ohio's newest superlobbyists, an ever-­‐shifting hierarchy that ascends and descends with the rise
and fall of each new governor. Since Kasich's election, business has boomed for the three
lobbyists, even though none has had to solicit new clients." [The Columbus Dispatch, 5/23/11]
During
According to The Columbus Dispatch "For the last two years, legislators, lobbyists and others have
been invited to Thibaut's house, to warm them at first to Kasich's candidacy and later to the
Republican governor's policies. Almost every Thursday during the 2010 campaign, Kasich's closest
advisers, including Klaffky and Preisse, met at Thibaut's house to strategize. After Kasich's victory,
candidates for his cabinet trooped to Thibaut's house to be vetted. " [The Columbus Dispatch,
5/23/11]
Donald Thibaut Enjoyed A Close Relationship With Kasich, Served As His Chief Of
A Decade For Political
Committees Associated With Kasich. According to The Associated Press "Don Thibaut is a
founding partner of The Credo Company in Columbus, formed in March to offer government
relations planning, consulting and lobbying services. He spent nearly 20 years as Kasich's chief of

staff in Congress and has been receiving compensation for a decade through political committees
associated with Kasich." [The Associated Press, 11/5/10]
Best Friend. According to The
Columbus Dispatch "A half-­‐dozen blocks south of the Statehouse, Donald G. Thibaut's red
clapboard house in German Village has become a center of political power in Ohio. Gov. John
Kasich's best friend has set up a lobbying shop, signing up a dozen blue-­‐chip companies. [The
Columbus Dispatch, 5/23/11]
After Kasich Was Elected Governor; Charged Enormous Fees To Clients.
Columbus Dispatch: Don Thibaut
-­‐
Credibility Of Kasich's Oft-­‐
According
to The Columbus Dispatch "A half-­‐dozen blocks south of the Statehouse, Donald G. Thibaut's red
clapboard house in German Village has become a center of political power in Ohio. Gov. John
Kasich's best friend has set up a lobbying shop, signing up a dozen blue-­‐chip companies. His
overnight success as a first-­‐time lobbyist is turning heads on Capitol Square -­‐ and testing the
credibility of Kasich's oft-­‐made promise that friends will get no special treatment." [The Columbus
Dispatch, 5/23/11]
2011: In
According to The Columbus
Dispatch "These days, the 67-­‐year-­‐old Thibaut welcomes clients into his home. At least 12
companies have hired him -­‐ probably for fees ranging from $4,000 to $10,000 a month, according
to estimates by other independent lobbyists." [The Columbus Dispatch, 5/23/11]
Klaffky And Preisse
According to The Columbus Dispatch "Allies of DeWine say the bid to unseat him is being led by
-­‐trusted confidants: lobbyists Donald G. Thibaut, Robert F. Klaffky and
al assistant, Jai Chabria. They say the effort is

[The Columbus Dispatch, 12/4/11]
2011: Klaffky And Preisse Together Registered About 20 Clients. According to The Columbus
Dispatch "Klaffky and Preisse, who are partners in a 28-­‐year-­‐old lobbying firm, have registered
about 20 clients. Preisse, chairman of the Franklin County GOP, headed Kasich's inaugural
committee. Klaffky was a top Kasich campaign policy adviser." [The Columbus Dispatch, 5/23/11]
Klaffky Pitched JobsO
According to The Columbus Dispatch
"Some House Republicans groused that it was inappropriate for Klaffky to appear at their private
caucus in February to explain Kasich's JobsOhio plan to privatize state job-­‐creating functions.
was one of those things where they (the administration)
5/23/11]
Clients And Influence
Thibaut Klaffkey And Preisse Were Retained By
Online Charter School; Klaffky
Took Credit In The House For Restoring A Moratorium On Competition For Lager's Schools That
The Administration Had Removed. According to The Columbus Dispatch "Thibaut, who has known
Kasich since 1974 and served as his congressional chief of staff, and the Klaffky-­‐Preisse firm share
some clients, including generous GOP donor William Lager, owner of the state's largest online
charter-­‐school operation. Although the impending state budget includes many provisions to help
Lager's operation, Thibaut said he had nothing to do with them. Klaffky, a longtime friend of
House Speaker William G. Batchelder, R-­‐Medina, took credit in the House for restoring a
moratorium on competition
number of things that just appeared (in the budget bill) that caused some of us to scratch our
5/23/11]
Klaffky, Preisse And Thibaut Were All Hired By Private Prison Operators After The Budget Called
For State Prisons To Be Privatized. According to The Columbus Dispatch "While all are good
friends, Thibaut also is in competition with Klaffky and Preisse. With the budget calling for six state
prisons to be privatized, Thibaut has been retained by one of the nation's two largest private-­‐
prison operators, and Klaffky and Preisse represent the other." [The Columbus Dispatch, 5/23/11]
ky, Preisse And Thibaut
Were Hired By Lottery Machine Suppliers. According to The Columbus Dispatch "Likewise, with
the possible privatization of the Ohio Lottery, Thibaut represents one of the world's largest lottery-­‐

machine suppliers, and the Klaffky-­‐Preisse team has been hired by the other big player in the
business." [The Columbus Dispatch, 5/23/11]
Jim Leftw
Cover-­‐up
Kasich Insider Jim Leftwich left the administration following reports he directed companies he had
a financial stake in to seek grants that he helped distribute. The Kasich administration circled the
wagons and refused to release records relating to Leftwich on behalf of the Governor.
Leftwich Served Multiple Roles In The Kasich Administration
2011: Kasich Appointed Jim Leftwich Director Of The State Department Of Development.
According to The Dayton Daily News "Leftwich has been tied to state government since the
beginning of the Kasich administration. In March 2011, the governor tapped Leftwich, then
director of the Dayton Development Coalition, to be director of the state Department of
Development, a job that paid $127,400-­‐a-­‐year." [The Dayton Daily News, 11/24/12]
After Leaving The Department Of Development, Leftwich Was Hired To Advise Governor Kasich
On Aerospace And Defense Issues.
top policy advisor, told the development department that he wanted Leftwich hired as a
consultant for the unmanned aerial vehicles airspace project in the Dayton area, according to
employee charged with advising the governor on aerospace and defense issues. It is unclear
exactly why Leftwich was hired as a state employee, which automatically made him subject to
state ethics laws." [The Dayton Daily News, 11/24/12]
Kasich Appointed Leftwich To The Third Frontier Advisory Board. According to The Dayton Daily
News "In August, shortly after Leftwich signed his current contract with Wright State, Republican
Gov. John Kasich appointed him to the board for the Third Frontier program, a $2.3 billion
technology." [The Dayton Daily News, 11/24/12]
Leftwich Advised His Undisclosed Private Sector Clients To Seek Grants Through
Third Frontier While Serving On Its Board; Stood To Gain 25% Equity In Involved
Businesses

After The Kasich Administration Appointed Leftwich To The Board Of The Third Frontier
Program, Leftwich Suggested To His Private Clients Use Third Frontier Money To Boost Their
Startups. According to The Dayton Daily News "In August, shortly after Leftwich signed his
current contract with Wright State, Republican Gov. John Kasich appointed him to the board for
the
conomy through
investments in targeted innovation and technology. Three weeks later, on Aug. 28, Leftwich
suggested to Fyffe that Wright State could use Third Frontier money to help launch two potential
start-­‐up businesses the university was working to cre
100K into the university to prep each technology for the market and an additional 100K for each
start-­‐
lk strategy for our two start-­‐
[The Dayton Daily News, 11/24/12]
Leftwich Stood To Take 25% Ownership Of The Startups Involved. According to The
Dayton Daily News "Emails and documents obtained by the Daily News show that Leftwich
was on the state payroll when he and Wright State University Vice President for Research
Robert Fyffe outlined a plan to give Viance Partners a 25 percent ownership stake in start-­‐
up companies established based on the WSU-­‐originated research. Leftwich and his
company would find entrepreneurs and line up funding, but apparently he did not disclose
what he was doing to his supervisors in state government. As a state employee, Leftwich
was required to follow state ethics rules, which require disclosure of outside work." [The
Dayton Daily News, 11/24/12]
Leftwich Failed To Disclose His Private Contracts, In Violation Of Ethics Rules. According to The
Dayton Daily News "Leftwich and his company would find entrepreneurs and line up funding, but
apparently he did not disclose what he was doing to his supervisors in state government. As a
state employee, Leftwich was required to follow state ethics rules, which require disclosure of
outside work." [The Dayton Daily News, 11/24/12]
The Kasich Administration Refused To Disclose Information On
Work For The
According to The Dayton Daily News "Kasich Press Secretary
ffice that he had a consulting contract

11/24/12]
Stan Heffner
;
The Inspector General Found That State Superintendent Stan Heffner Acted
Improperly; Used His Position To Testify In Favor Of Legislation Benefitting A
Company He Planned To Work For
August 2012: The Ohio Inspector General Released A Report Stating That Heffner Acted
Improperly By Testifying In Favor Of Legislation Benefitting A Company He Planned To Work For.
According to The Plain Dealer "Ohio Schools Superintendent Stan Heffner acted improperly when
he testified last year in favor of legislation that benefited a private education company that he
planned to work for, according to an Ohio inspector general's report released Thursday." [The
Plain Dealer, 8/2/12]
At The Time He Testified In Favor Of The Legislation, Heffner Had Secured A Position With
Educational Testing Service, And Allowed The Company To Pay For His Travel. According
to The Plain Dealer "When he advocated for the bill as state superintendent in May 2011,
Heffner already had worked behind the scenes to secure a position with a longtime Ohio
vendor, Educational Testing Service. He also had allowed the company to pay for his travel
and began his move to San Antonio for the job." [The Plain Dealer, 8/2/12]
Heffner Used State Resources For Personal Interests
The Inspector General Report Cited Other Improper Acts By Heffner, Including Encouraging
Business Associates To Communicate With Him On A State Issued Cell Phone And Directing State
Workers To Perform Tasks In His Private Interest. According to The Plain Dealer "The report also
cited other improper acts. It said that Heffner encouraged business associates to communicate
with him on his state-­‐issued cell phone, and that Heffner directed state workers to perform tasks
in his private interest, such as arranging a personal business flight to South Dakota. Those things
happened before he was the permanent superintendent." [The Plain Dealer, 8/2/12]
The Report Was Forwarded To Local Law Enforcement

The Inspector General Report Was Forwarded To Local Prosecutors. According to The Plain
Dealer "The inspector general did not make a criminal referral, although the report was forwarded
to local prosecutors." [The Plain Dealer, 8/2/12]
Kasich Continued To Support Heffner; Opposed Firing The Superintendent
Kasich Spokesman On Heffner
According to The Plain Dealer "A spokesman for Republican Gov. John Kasich said Heffner should
way he did and demonstrating that kind of bad judgment is unac
8/2/12]
s Secrecy Was So Extreme It Even Spurred Republicans
To Force An Audit Of The Organization
Allies Refused to Cooperate with an Audit of How Tax Dollars Were Spent at JobsOhio.
According to The Columbus Dispatch "State Auditor Dave Yost issued a subpoena for the financial
records of JobsOhio yesterday after Gov. John Kasich's privatized economic-­‐ development agency
failed to turn them over. 'They are not cooperating with our attempts to audit them,' Yost told The
Dispatch, asserting his legal authority to review the finances of the private entity that spearheads
Kasich's efforts to attract jobs to the state. " [The Columbus Dispatch, 4/7/13]
Republican State Auditor David Yost Was Forced To Subpoena
After The Organization Stonewalled For Months. According to The Associated Press "Yost has
given JobsOhio Chief Financial Officer Kevin Giangola until noon on March 19 to produce the
records after JobsOhio declined to volunteer the documents, in a development first reported by
The Columbus Dispatch. The subpoena, issued Wednesday, seeks financial statements, spending
and revenue ledgers, salary and benefits payments and other documents or an explanation for
withholding the materials. " [The Associated Press, 3/7/13]
Republican Auditor Yost Issued A
His Office And JobsOhio. According to The Columbus Dispatch "State Auditor Dave Yost issued a
subpoena for the financial records
economic-­‐
months of negotiations between his office and Jobs-­‐Ohio chief financial officer Kevin Giangola, and

Columbus Dispatch, 3/7/13]
Auditor
obsOhio] Said [Whether Or Not To Turn Over
According to The Columbus Dispatch "Yost said he
issued the subpoena after several months of negotiations between his office and Jobs-­‐Ohio chief
ear over the last three days or so that
[The Columbus Dispatch, 3/7/13]
The Kasich Administration Urged The General Assembly To Remove The Au
Audit JobsOhio. According to The Plain Dealer "JobsOhio President and Chief Investment Officer
John F. Minor Jr. said it would ask the General Assembly for legislation that makes clear that as a
sich administration
creation caused by a mistaken, overly-­‐
spokesman Rob Nichols said Tuesday." [The Plain Dealer, 3/19/13]
While Kasich Blocks a Public Audit of JobsOhio, A Secretive Private Audit was Conducted that
Included a Section with Three Full Pages Blacked Out. According to The Columbus Dispatch "The
report, which includes a financial audit by KPMG, lists 289 projects JobsOhio completed, resulting
in more than 20,000 new-­‐job commitments, 50,000 retained jobs and a total annual payroll of $3.3
billion. But that section of the report also is packed with redactions, including nearly three full
pages blacked out for lost or canceled projects. The agency called the information 'trade secrets.'"
[The Columbus Dispatch, 3/2/13]
The Public Was Misled To Believe That JobsOhio only received $1 Million In Public Funds, But
$5.3 Million In Additional Funds Were Secretly Sent To The Organization. According to The
Columbus Dispatch "While Ohio officials have said $1 million in state money has been spent on
Gov. John Kasich's JobsOhio initiative, recently released records show that an additional $5.3
million in public money was directed to get the new program off the ground. " [The Columbus
Dispatch, 3/5/13]
Development Services Agency Director Schmenk Stepped Down Amid Scrutiny Of JobsOhio
Grants. According to The Columbus Dispatch "Kasich formally announced what The Dispatch and
others began reporting on Wednesday night: Schmenk is out as director of the Development
Services Agency and will be replaced by current Commerce Department Director David Goodman.
The switch, effective Monday, comes amid scrutiny of contracts signed by Schmenk worth millions
of dollars in state grants to JobsOhio's subsidiary." [The Columbus Dispatch, 3/15/13]

The FBI Investigated Kasich
Republican Party
Fellow Republicans Accused Kasich Allies Of Offering Influence In Exchange For
Political Allegiance
A Republican County Chairman
Allies Promised Special Influence Over State
Appointments In Return For Political Allegiance. The Columbus Dispatch reported on March 9,
2012 that Andrew Manning, "chairman of the Portage County Republican Party says that allies of
Gov. John Kasich offered him special influence over gubernatorial appointments if he agreed not
to run for the state GOP central committee, which Kasich has been trying to take over." [Columbus
Dispatch, 3/9/12]
Allies Offered Influence
In Exchange For Agreeing Not To Run for Ohio GOP Leadership. According to The Plain
Dealer "Former Portage County Republican Party Chairman Andrew Manning has
confirmed that he has spoken to the FBI in connection with a dispute involving allies of
Gov. John Kasich over control of the Ohio Republican Party. Manning sent a sworn affidavit
to the FBI earlier this year alleging that two of Kasich's allies had offered him influence
within the governor's administration if he agreed to not run in the March 6 elections for
the state Republican party central committee." [The Plain Dealer, 5/17/12]
The Claims Were Serious Enough To Warrant A FBI Investigation
Allies Broke the Law by Offering to Trade Taxpayer
Resources for Control of the Ohio Republican Party. According to The Columbus Dispatch "The FBI
has interviewed former Portage County Republican Party Chairman Andrew Manning in
connection with a nasty feud that led to a change of leadership at the Ohio Republican Party.
Manning, a member of the GOP State Central Committee, filed an affidavit on March 8 with law-­‐
enforcement authorities saying that allies of Gov. John Kasich's offered him special influence over
gubernatorial appointments if he agreed not to run for the central committee, which Kasich
successfully took control of in April." [The Columbus Dispatch, 5/17/12]
A Republican Chairman Met With FBI Officials, His Attorney Characterized The FBI's Involvement
As An 'Investigation'. According to The Plain Dealer "His attorney, David Langdon, of Cincinnati,
issued a statement on Thursday confirming that Manning met last week with FBI officials. 'He

answered questions about the statements in his affidavit, which he sent to the Justice Department
in March of this year, that top allies of Gov. John Kasich offered him special influence over
gubernatorial appointments if he agreed not to run for the state GOP central committee,'
Langdon's statement read. 'He will have no further comment until the investigation has
concluded,' the statement said." [The Plain Dealer, 5/17/12]