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Post Office Box 1147
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Marblehead, Massachusetts 01945
▪ (781) 639-9709
“Every Tax is a Pay Cut ... A Tax Cut is a Pay Raise”
46 years as “The Voice of Massachusetts Taxpayers”
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their Institutional Memory — |
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CLT UPDATE
Monday, February 24, 2020
Federal
corruption indictment of state rep sucks up all oxygen
Jump directly
to CLT's Commentary on the News
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The
House is newly in receipt of an ambitious Senate-passed
carbon pricing bill and now a House-approved bill addressing
the impacts of climate change is stirring to life in the
Senate.
The
Senate Bonding, Capital Expenditures and State Assets
Committee plans a public hearing Tuesday afternoon on a $1
billion GreenWorks proposal to finance climate change
infrastructure and resiliency grants. The borrowing bill has
been resting before that panel since it cleared the House
last July.
The
House bill (H 3997) also calls for $100 million in spending
on a municipal microgrid energy systems matching grant
program, a $125 million program to encourage the
electrification of vehicle fleets owned by municipalities or
regional transit authorities, and $30 million for rebates
intended in spur people to buy electric vehicles.
The
House relies purely on borrowing to finance its proposal; a
similar measure filed by Gov. Charlie Baker would raise the
state's deeds excise tax to generate as much as $137 million
a year. Senate leaders haven't stated whether they prefer
borrowing, a new tax, or some other option.
The
Senate approved its carbon pricing bill (S 2477) on Jan. 30
while the House agreed to push back the deadline for a
committee report on a similar pricing bill from February
into early June. The Senate bill calls for net-zero carbon
emissions by 2050 and sets deadlines for the state to impose
carbon-pricing mechanisms for transportation, commercial
buildings and homes, while leaving the critical specifics up
to the executive branch.
State House News Service
Wednesday, February 19, 2020
GreenWorks Bill’s Long Senate Siesta Coming to End
Business owners and commuters may soon feel the pain of a
new broad-based tax, being promoted as an environmental
policy. The Transportation and Climate Initiative (TCI) is
an 11-state compact to reduce carbon emissions by imposing
fees on fuel distributors, which will increase gas prices
significantly for drivers and put Rhode Island’s small
businesses at a major competitive disadvantage.
As
details of TCI become clear, more states are questioning
their support for this deeply flawed public policy.
Proponents deceptively argue TCI isn’t a tax because it’s
the fuel distributors that would be forced to buy
“allowances” for the carbon intensity of their product. The
proceeds of these fees would be used by the state to promote
non-fossil fuel transportation such as public transit or
electric car charging stations.
But
don’t let that misleading pitch fool you — if it hits your
wallet like a tax, and the state is ultimately getting your
hard-earned money, it’s a tax.
Economic projections from the crafters of TCI show if
implemented, gas prices would rise as high as 17 cents a
gallon. Ironically, they also admit that carbon would
already be reduced without TCI over the next 10 years by 19%
because of better fuel economies and technology. According
to the program’s own analysis, TCI would only deliver
between a 1% and 6% reduction in carbon, but at an extremely
high price tag for all Rhode Island commuters and small
businesses.
Many small businesses require fuel for their operations —
from landscapers and excavators powering machines to pizza
and flower shops making deliveries. If the price of fuel
rises, the cost of products and services provided by those
companies will increase for the consumer.
It
will also become more expensive to ship products from Rhode
Island manufacturers, and retail stores will pay more for
goods. Meaning the budgets of consumers will be further
strained.
The
multi-state approach of TCI was intended to ensure the price
of fuel would rise uniformly across the region so no state
would get an economic advantage. But the compact is starting
to fall apart....
Governor Raimondo appears to stand with Massachusetts Gov.
Charlie Baker as a resolute supporter of this costly plan.
But House Speaker Nicholas Mattiello took a different tone,
stating that any tax increase, including a gas tax increase
resulting from TCI, would be looked at “skeptically.”
As
the coalition of TCI states crumbles, Rhode Island can
choose to tether itself to a high-cost state like
Massachusetts or opt-out on behalf of taxpayers like New
Hampshire.
All
small businesses, workers, and drivers in our state should
demand their elected officials reject the Transportation and
Climate Initiative to keep transportation costs affordable
and avoid this economically devastating policy.
The Providence (RI) Journal
Thursday, February 20, 2020
Fight governor’s higher gas prices
By Christopher Carlozzi
In
addition to the potential for a House transportation revenue
bill to emerge -- the House is planning a formal session
Wednesday, but the speaker's office has not indicated what
legislation might come to the floor -- House lawmakers plan
to sit down for a hearing on Gov. Charlie Baker's $18
billion transportation bond bill.
Also, advocacy groups pressing Beacon Hill to make a big
play for new transportation funding are mounting another
"call to action" Tuesday following a similar event last
October.
Legislative leaders agree with advocates that the current
situation - often substandard public transit service and
frequently clogged major roadways - requires a bold
response. However, House leaders have struggled to come up
with a plan they feel confident could clear the House, be
reconciled with the Senate, and overcome any objections from
Gov. Baker, all in an election year.
Baker says current record spending levels combined with the
outlays he's seeking in his bond bill are enough to tackle
the problems. The governor is also seeking reforms to
expedite spending, an area where there's conflict between
the executive and legislative branches.
Lawmakers are weighing proposals to increase the gas tax and
ride-for-hire company fees, while potentially easing the
financial burdens facing MBTA and regional transit authority
users. House Speaker Robert DeLeo's updated timeline for the
House to address the issue is sometime before the branch
tackles the fiscal 2021 budget in April.
State House News Service
Friday, February 21, 2020
Advances - Week of Feb. 23, 2020
The
long arm of the law, belonging these days to U.S. Attorney
Andrew Lelling, reached into the State House this week for
an 11-term incumbent, dropping a lit firecracker into a
building that had been ready to take it easy for a few days.
Federal agents arrested long-time Democratic Rep. David
Nangle at his Lowell home on Tuesday morning, breaking up
what was supposed to be a quiet school vacation week by
dragging Nangle before a magistrate in Boston where he
pleaded not guilty to a raft of charges related to the
illegal use of campaign funds and bank fraud.
Lelling accused Nangle of digging himself deep into gambling
debt at a variety of New England casinos, and then using his
campaign account, and fraudulently obtained loans, to
finance a lifestyle he could not afford.
Flowers, golf club dues, hefty restaurant tabs.
Nangle, according to the indictment, was spending well
beyond his means and taking steps, such as concealing income
from the IRS and fabricating income to qualify for loans, in
order to pay for it all.
"This was not a momentary lapse or a technical foul. This
was a systemic pattern of theft and fraud going back to
2014," Lelling said....
Nangle's indictment stunned many of his colleagues on Beacon
Hill into silence, literally. Many of them just shook their
heads and kept walking rather than make a comment to
reporters swarming the building.
State House News Service
Friday, February 21, 2020
Weekly Roundup - A Nangled Web
Lowell state Rep. David Nangle is facing 28 federal charges
for “brazen and wide-ranging” misconduct and allegedly using
campaign funds to pay for personal expenses as he racked up
“tens of thousands of dollars” in gambling losses, according
to a federal indictment.
Nangle, 59, was arrested Tuesday morning and pleaded not
guilty to all counts at his arraignment in U.S. District
Court. He was released on a $25,000 unsecured appearance
bond. A magistrate judge also restricted Nangle from
participating in any gambling activities....
U.S. Attorney Andrew Lelling, at a press conference at his
office Tuesday, emphasized Nangle’s alleged activity was
long-running.
“This was not a momentary lapse of judgement,” Lelling said.
“This was a systematic pattern of theft and fraud going back
to at least 2014.”
Joseph R. Bonavolonta, special agent in charge of the
Federal Bureau of Investigation’s Boston office, said, “His
alleged misconduct, as outlined in this indictment, is
brazen and wide-ranging.”
“Let me be clear: this is not a case of mismanagement,
sloppy accounting, or innocent mistakes. We believe this was
a deliberate, yearslong attempt by Mr. Nangle to break the
laws he was sworn to uphold,” Bonavolonta continued.
The
indictment lists a wide range of Nangle’s alleged illicit
activities, including using campaign funds to pay for
personal expenses, defraud his bank lender and collect
income that he failed to report to the IRS.
Prosecutors say Nangle frequented casinos in Connecticut,
Massachusetts, Rhode Island and New Hampshire, in addition
to placing “thousands” of bets on gambling sites, incurring
“tens of thousands of dollars in gambling-related spending
and losses.”
The
feds say Nangle raised hundreds of thousands of dollars in
campaign funds despite running unopposed since 2013 and used
the campaign funds to supplement his personal finances.
“Simply put, Representative Nangle used the power of his
position on Beacon Hill to fund a lifestyle out of his
reach, unwittingly financed by those who put him there while
also cheating the taxpayers,” Bonavolonta said.
The Boston Herald
Tuesday, February 18, 2020
Lowell state rep pleads not guilty to federal campaign
spending charges
Federal Indictment of Rep. David Nangle
Rep. David Nangle plans to fight the more than two dozen
federal fraud charges unveiled against him Tuesday, and in
the meantime, House leaders are not saying how they plan to
respond.
House Speaker Robert DeLeo said in an afternoon statement
that the allegations are "serious and troubling and, if
true, represent a significant betrayal of the public trust."
However, he did not offer any insight into whether Nangle
will retain his leadership and committee posts while
awaiting trial or whether the House planned to open its own
investigation into Nangle's supposed campaign finance
violations and gambling debts.
"I
was shocked and disappointed to learn of his indictment this
morning," DeLeo said in a statement. "Representative Nangle
has been a friend and colleague for over 20 years. Never
once during that time did I have an inkling that he had a
gambling problem, much less a gambling problem as extensive
as what has been reported today."
Asked if the House Ethics Committee had launched an inquiry
or if Nangle would continue to receive his public salary —
$66,257 annually with another $30,000 stipend for serving as
second division chair in the House — a DeLeo spokeswoman
declined to comment beyond the speaker's statement....
Nangle arrived to the courtroom for his arraignment in
handcuffs and ankle shackles. An officer took the handcuffs
off as he entered, then put him back in handcuffs to escort
him out of the room.
The
FBI's Boston office began investigating Nangle in November
2017, officials said Tuesday, and authorities believe
Nangle's fraud dates back to at least 2014.
State House News Service
Tuesday, February 18, 2020
Nangle Pleads Not Guilty to Fed Corruption Charges
"Shocked" DeLeo Never Heard of Gambling Problem
Indicted Lowell state Rep. David Nangle stepped down
Wednesday from leadership and committee posts a day after
pleading not guilty to 28 federal charges in his corruption
case — but he did not resign.
“I
think that’s appropriate,” Gov. Charlie Baker told reporters
Wednesday after Nangle relinquished his title as second
division chair in the House, and with it a $30,000 bonus on
top of his $66,257 base salary as a legislator, and, in an
email to the House Clerk, removed himself from his
assignments.
The Boston Herald
Wednesday, February 19, 2020
Embattled Lowell state Rep. David Nangle resigns top posts
amid corruption charges
‘I think that’s appropriate,’ said Gov. Charlie Baker
Boston Herald Photo:
Rep. Dave Nangle’s
fundraisers always attract
top state politicians. At
his annual steak and lobster
event at Lenzi’s in Dracut
in September 2018, Nangle
shares the spotlight with
Gov. Charlie Baker and Lt.
Gov. Karyn Polito.
Here he is, the hack du jour, Rep. David Nangle of Lowell,
with two of his closest political friends, Gov. Charlie
Baker and Lt. Gov. Karyn Polito, in what are customarily
described as happier times.
Nangle is a Democrat, and Tall Deval and Polito are
Republicans, but what’s party affiliation mean at the State
House?
I
mean, if you’re indicted, you’re invited, and Nangle got the
ultimate invitation Tuesday — he was arrested by the FBI
after a 28-count corruption indictment for, among other
crimes, mail fraud, wire fraud and filing false tax returns.
The
extinguished statesman is, of course, a member of the House
Ethics Committee.
Nangle is 59, a former gas company employee who discovered
his mission in life when he got a job as a hack coat-holder
for the local hack state senator. There’s a long, long
history of sticky fingers in Lowell politics — B. Joseph
Tully, the ex-state senator, went away for attempted
extortion at age 61 and then at age 84 was convicted of
attempted extortion.
He
was succeeded by Paul Sheehy, a jailbird state rep when he
was elected to the state Senate, after a short stretch in
Danbury for bank fraud where he was visited by young Marty
Meehan, the future $602,500-a-year president of the
University of Massachusetts....
Please, try not to let this destroy your faith in the
integrity of the Massachusetts General Court. Look on the
bright side — it took 49 days for the first solon of the
year to get indicted.
The Boston Herald
Wednesday, February 19, 2020
Finding corrupt Mass. pols is no gamble
By Howie Carr
Members of the Governor’s Council are accusing the Baker
administration of creating a "patronage pipeline" with
nominations to high-paying state court jobs.
Last week, Fitchburg attorney Damian Riddle was approved by
the Governor’s Council for a clerk magistrate position with
the Ayer District Court. Riddle, who was nominated by Lt.
Gov. Karyn Polito, has donated at least $850 to Polito's
campaign since 2017, including a $500 contribution shortly
before he applied for the magistrate's job.
Eileen Duff, one of two councilors who voted against
confirming Riddle, said the nomination is the latest in a
series of examples where applicants with connections to
Polito and Gov. Charlie Baker have landed "lifetime" jobs
with the state.
"It's really disturbing," said Duff, a Gloucester Democrat
whose council district includes most of Essex County. "It
makes me question the integrity of the judicial nominating
process."
Massachusetts is one of few states where judges are
appointed to the bench for life. Polito, a Shrewsbury
Republican, chairs the eight-member Governor’s Council,
which has final say on judicial nominations....
Other councilors have raised concerns about a growing
perception that people with ties to the governor and
lieutenant governor have a leg-up on plum judicial
appointments.
Councilor Bob Jubinville, a Milton Democrat and defense
attorney, has voted against several of Baker and Polito's
appointments because of their political connections.
At
confirmation hearings, he has chided other councilors for
not being skeptical enough of the nominating process, which
he says is done largely "behind closed doors."
"We're supposed to be a check and balance on a powerful
governor," Jubinville said. "We're not supposed to be in his
pocket. We're supposed to be independent."
The Salem News
Thursday, February 20, 2020
Baker-Polito nominations draw claims of patronage
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Chip Ford's CLT
Commentary
It was a quiet
"school vacation" week on Beacon Hill with little if
anything going on — until
the United States Attorney's office woke state Rep.
David Nangle in his Lowell home early Tuesday morning
and took him away in handcuffs, charging the 11-term
House Democrat with 28 federal charges of corruption and
tax evasion.
By Wednesday the disgraced salon had resigned from all
his committee assignments: Second Division Chair
in the House
—
a position near the top of House Speaker Robert DeLeo’s
leadership hierarchy which, on top of Nangle's annual
$66,257 base legislative salary, paid him an additional $30,000
each year
—
along with his seats on
the House Committee on Ethics, the House Committee on
Rules, and the Joint Committee on Rules.
The House
Committee on Ethics. You can't make this stuff up,
but it's so typical Massachusetts politics.
Quietly behind
the scene "transportation" and "climate change
mitigation" tax hikes are still being plotted.
According to the State House News Service's advances for
this week ahead, "the House is planning a formal session
Wednesday, but the speaker's office has not indicated
what legislation might come to the floor."
"House
Speaker Robert DeLeo's updated timeline for the
House to address the [new transportation revenue] issue is sometime before the branch
tackles the fiscal 2021 budget in April."
The federal
indictment of Lowell state Rep. David Nangle sucked up
most of the oxygen on Beacon Hill news coverage last
week, while the "fulltime" "Best Legislature Money Can
Buy" went idle to celebrate "school vacation week."
Rank-and-file legislators were kept in the dark per
usual while behind the curtain legislative leadership
continues plotting their next moves. The Speaker
and his lieutenants will instruct House followers how to
vote when the mysterious legislation to be introduced in
Wednesday's formal session is dropped on them.
On a personal
note — last Monday would
have been Barbara Anderson's birthday. In memory
of one of her two last wishes, I wrote a column for The
Salem News (which published her weekly columns for
decades), "'Death with dignity' restores personal
liberty." It was published on Friday in both
The Salem News and
The Gloucester Daily Times.
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Chip Ford
Executive Director |
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State House
News Service
Wednesday, February 19, 2020
GreenWorks Bill’s Long Senate Siesta Coming to
End
By Michael P. Norton
The House is newly in receipt of
an ambitious Senate-passed carbon pricing bill
and now a House-approved bill addressing the
impacts of climate change is stirring to life in
the Senate.
The Senate Bonding, Capital Expenditures and
State Assets Committee plans a public hearing
Tuesday afternoon on a $1 billion GreenWorks
proposal to finance climate change
infrastructure and resiliency grants. The
borrowing bill has been resting before that
panel since it cleared the House last July.
The House bill (H 3997) also calls for $100
million in spending on a municipal microgrid
energy systems matching grant program, a $125
million program to encourage the electrification
of vehicle fleets owned by municipalities or
regional transit authorities, and $30 million
for rebates intended in spur people to buy
electric vehicles.
The House relies purely on borrowing to finance
its proposal; a similar measure filed by Gov.
Charlie Baker would raise the state's deeds
excise tax to generate as much as $137 million a
year. Senate leaders haven't stated whether they
prefer borrowing, a new tax, or some other
option.
The Senate approved its carbon pricing bill (S
2477) on Jan. 30 while the House agreed to push
back the deadline for a committee report on a
similar pricing bill from February into early
June. The Senate bill calls for net-zero carbon
emissions by 2050 and sets deadlines for the
state to impose carbon-pricing mechanisms for
transportation, commercial buildings and homes,
while leaving the critical specifics up to the
executive branch.
Sen. Michael Moore of Millbury chairs the Senate
Bonding Committee. His panel meets at 1 p.m.
Tuesday in Room A-2.
The Providence
(RI) Journal
Thursday, February 20, 2020
Fight governor’s higher gas prices
By Christopher Carlozzi
Business owners and commuters may
soon feel the pain of a new broad-based tax,
being promoted as an environmental policy. The
Transportation and Climate Initiative (TCI) is
an 11-state compact to reduce carbon emissions
by imposing fees on fuel distributors, which
will increase gas prices significantly for
drivers and put Rhode Island’s small businesses
at a major competitive disadvantage.
As details of TCI become clear, more states are
questioning their support for this deeply flawed
public policy.
Proponents deceptively argue TCI isn’t a tax
because it’s the fuel distributors that would be
forced to buy “allowances” for the carbon
intensity of their product. The proceeds of
these fees would be used by the state to promote
non-fossil fuel transportation such as public
transit or electric car charging stations.
But don’t let that misleading pitch fool you —
if it hits your wallet like a tax, and the state
is ultimately getting your hard-earned money,
it’s a tax.
Economic projections from the crafters of TCI
show if implemented, gas prices would rise as
high as 17 cents a gallon. Ironically, they also
admit that carbon would already be reduced
without TCI over the next 10 years by 19%
because of better fuel economies and technology.
According to the program’s own analysis, TCI
would only deliver between a 1% and 6% reduction
in carbon, but at an extremely high price tag
for all Rhode Island commuters and small
businesses.
Many small businesses require fuel for their
operations — from landscapers and excavators
powering machines to pizza and flower shops
making deliveries. If the price of fuel rises,
the cost of products and services provided by
those companies will increase for the consumer.
It will also become more expensive to ship
products from Rhode Island manufacturers, and
retail stores will pay more for goods. Meaning
the budgets of consumers will be further
strained.
The multi-state approach of TCI was intended to
ensure the price of fuel would rise uniformly
across the region so no state would get an
economic advantage. But the compact is starting
to fall apart.
After TCI’s organizers announced their
projections for much higher gas prices last
December, New Hampshire Gov. Chris Sununu
immediately dropped out of the pact. He declared
his state’s residents should not face
significantly higher fuel charges to fix
Massachusetts’ “crumbling infrastructure” and
referred to TCI as a “financial boondoggle.”
Other governors and legislative leaders are
raising similar concerns. Governors of Vermont,
Connecticut, and Maine have said they too have
apprehensions about adopting the program.
In a December 2019 television interview when
asked about TCI, Gov. Gina Raimondo commented,
“Will there be a tax associated with the
Transportation and Climate Initiative? Oh, most
certainly.”
Governor Raimondo appears to stand with
Massachusetts Gov. Charlie Baker as a resolute
supporter of this costly plan. But House Speaker
Nicholas Mattiello took a different tone,
stating that any tax increase, including a gas
tax increase resulting from TCI, would be looked
at “skeptically.”
As the coalition of TCI states crumbles, Rhode
Island can choose to tether itself to a
high-cost state like Massachusetts or opt-out on
behalf of taxpayers like New Hampshire.
All small businesses, workers, and drivers in
our state should demand their elected officials
reject the Transportation and Climate Initiative
to keep transportation costs affordable and
avoid this economically devastating policy.
— Christopher
Carlozzi is the state director of the National
Federation of Independent Business, which
represents hundreds of small and independent
businesses in Rhode Island.
State House News Service
Friday, February 21, 2020
Weekly Roundup - A Nangled Web
Recap and analysis of the week in state
government
By Matt Murphy
The long arm of the law,
belonging these days to U.S. Attorney Andrew
Lelling, reached into the State House this week
for an 11-term incumbent, dropping a lit
firecracker into a building that had been ready
to take it easy for a few days.
Federal agents arrested long-time Democratic
Rep. David Nangle at his Lowell home on Tuesday
morning, breaking up what was supposed to be a
quiet school vacation week by dragging Nangle
before a magistrate in Boston where he pleaded
not guilty to a raft of charges related to the
illegal use of campaign funds and bank fraud.
Lelling accused Nangle of digging himself deep
into gambling debt at a variety of New England
casinos, and then using his campaign account,
and fraudulently obtained loans, to finance a
lifestyle he could not afford.
Flowers, golf club dues, hefty restaurant tabs.
Nangle, according to the indictment, was
spending well beyond his means and taking steps,
such as concealing income from the IRS and
fabricating income to qualify for loans, in
order to pay for it all.
"This was not a momentary lapse or a technical
foul. This was a systemic pattern of theft and
fraud going back to 2014," Lelling said.
A week after Judge Leo Sorokin again tossed the
federal government's corruption case against two
top Boston City Hall aides, this time overruling
a jury's guilty verdict, Lelling wasted little
time getting back on the horse.
Perhaps that's what he was thinking about when
he assured reporters, none of whom had yet
asked, that he would not be gun-shy about going
after public officials.
"In case anyone is wondering if my office will
continue to aggressively pursue public
corruption cases, the answer to that question is
an unequivocal yes," Lelling said.
Nangle's indictment stunned many of his
colleagues on Beacon Hill into silence,
literally. Many of them just shook their heads
and kept walking rather than make a comment to
reporters swarming the building.
But some did talk, and there was a healthy dose
of empathy for Nangle, especially if it's true
he was struggling with gambling.
"I love Dave Nangle. We all make mistakes. I
just hope the best for him moving forward," said
Rep. John Rogers, a Norwood Democrat.
Even Republicans seemed contented by Nangle's
decision to resign his leadership posts,
including his $30,000-a-year title as second
division leader, and to let the legal process
play out. There were no calls for Nangle to
resign his seat altogether, at least not yet.
During a week when all eyes were on the latest
politician to be ensnared by the dragnet of the
U.S. Attorney's office, another state
legislator, who at one point, it seemed, only
narrowly escaped a similar fate, said he was
calling it quits after 34 years.
Ludlow Democrat Thomas Petrolati told his local
newspaper this week that he would not be seeking
an eighteenth term in the House in November.
Once the third highest ranking Democrat in the
House, Petrolati stepped out of the spotlight in
2011 as his name became caught up in a patronage
hiring scandal that never quite caught up with
anyone in the Legislature.
In the ensuing years, he gradually worked his
way back into House Speaker Robert DeLeo's inner
circle, and will retire as the chairman of the
Steering, Policy and Scheduling Committee, which
helps to set the floor agenda for the House.
The speaker called Petrolati "both a masterful
parliamentarian and a friend," and said he "will
be missed in the House of Representatives and on
the rostrum."
Petrolati joins a group of nine House members so
far who have said this will be their last terms,
and three others who have already left for other
jobs. Rep. RoseLee Vincent of Revere also joined
the list this week, announcing she was also not
running for re-election....
Senate leaders started preparing legislation for
a debate next week that would allow cities and
towns to begin to use red light cameras to catch
those flaunting the rules of the roads out of
sight of police, who can't be everywhere. Is
Massachusetts ready for government to monetize
bad driving?
One of the new rules of the road takes effect
this weekend. Starting Sunday, the state's ban
on the hand-held use of cellphones while driving
becomes law, but drivers will have until April -
April Fool's Day - before fines kick in.
To make sure drivers are aware of the new law,
the State Police are ramping up patrols.
So drive safely.
The Boston
Herald
Tuesday, February 18, 2020
Lowell state rep pleads not guilty to federal
campaign spending charges
By Todd Prussman and Andrew Martinez
Lowell state Rep. David Nangle is
facing 28 federal charges for “brazen and
wide-ranging” misconduct and allegedly using
campaign funds to pay for personal expenses as
he racked up “tens of thousands of dollars” in
gambling losses, according to a federal
indictment.
Nangle, 59, was arrested Tuesday morning and
pleaded not guilty to all counts at his
arraignment in U.S. District Court. He was
released on a $25,000 unsecured appearance bond.
A magistrate judge also restricted Nangle from
participating in any gambling activities.
William Connolly, Nangle’s attorney, said his
client will fight the charges.
“Dave Nangle is a good person,” Connolly said
outside of the courtroom. “He has proudly served
the people of his district.”
Nangle did not speak to reporters as he left the
courthouse.
U.S. Attorney Andrew Lelling, at a press
conference at his office Tuesday, emphasized
Nangle’s alleged activity was long-running.
“This was not a momentary lapse of judgement,”
Lelling said. “This was a systematic pattern of
theft and fraud going back to at least 2014.”
Joseph R. Bonavolonta, special agent in charge
of the Federal Bureau of Investigation’s Boston
office, said, “His alleged misconduct, as
outlined in this indictment, is brazen and
wide-ranging.”
“Let me be clear: this is not a case of
mismanagement, sloppy accounting, or innocent
mistakes. We believe this was a deliberate,
yearslong attempt by Mr. Nangle to break the
laws he was sworn to uphold,” Bonavolonta
continued.
The indictment lists a wide range of Nangle’s
alleged illicit activities, including using
campaign funds to pay for personal expenses,
defraud his bank lender and collect income that
he failed to report to the IRS.
Prosecutors say Nangle frequented casinos in
Connecticut, Massachusetts, Rhode Island and New
Hampshire, in addition to placing “thousands” of
bets on gambling sites, incurring “tens of
thousands of dollars in gambling-related
spending and losses.”
The feds say Nangle raised hundreds of thousands
of dollars in campaign funds despite running
unopposed since 2013 and used the campaign funds
to supplement his personal finances.
“Simply put, Representative Nangle used the
power of his position on Beacon Hill to fund a
lifestyle out of his reach, unwittingly financed
by those who put him there while also cheating
the taxpayers,” Bonavolonta said.
In a statement, Gov. Charlie Baker said,
“They’re serious charges and I anticipate that
they will be fully investigated by the U.S.
Attorney.”
Nangle is a Democrat from Lowell representing
the 17th Middlesex District. He’s been a member
of the legislature since 1999, according to his
legislative biography, and is listed as a
current member of the House Committee on Ethics.
Nangle is also a top member of House Speaker
Robert DeLeo’s leadership team.
Nangle’s leadership position as Second Division
Chair entitled him to an extra $30,000 annually
on top of his legislative pay, according to the
indictment.
DeLeo’s office did not immediately respond to a
request for comment.
Nangle faces a maximum prison term of 30 years
on eight of the 28 federal offenses. His next
court date is scheduled for March 19, and Nangle
won’t be required to attend.
State House
News Service
Tuesday, February 18, 2020
Nangle Pleads Not Guilty to Fed Corruption
Charges
"Shocked" DeLeo Never Heard of Gambling Problem
Chris Lisinski and Katie Lannan
Rep. David Nangle plans to fight
the more than two dozen federal fraud charges
unveiled against him Tuesday, and in the
meantime, House leaders are not saying how they
plan to respond.
House Speaker Robert DeLeo said in an afternoon
statement that the allegations are "serious and
troubling and, if true, represent a significant
betrayal of the public trust." However, he did
not offer any insight into whether Nangle will
retain his leadership and committee posts while
awaiting trial or whether the House planned to
open its own investigation into Nangle's
supposed campaign finance violations and
gambling debts.
"I was shocked and disappointed to learn of his
indictment this morning," DeLeo said in a
statement. "Representative Nangle has been a
friend and colleague for over 20 years. Never
once during that time did I have an inkling that
he had a gambling problem, much less a gambling
problem as extensive as what has been reported
today."
Asked if the House Ethics Committee had launched
an inquiry or if Nangle would continue to
receive his public salary — $66,257 annually
with another $30,000 stipend for serving as
second division chair in the House — a DeLeo
spokeswoman declined to comment beyond the
speaker's statement.
Hours after his arrest Tuesday, Nangle pleaded
not guilty to 10 counts of wire fraud, four
counts of bank fraud, nine counts of making
false statements to a bank, and five counts of
filing false tax returns.
Magistrate Judge Page Kelley ordered Nangle to
be released on a $25,000 unsecured bond with
several conditions on his travel and a
requirement that he not gamble.
Nangle did not answer questions from reporters
outside the John Joseph Moakley United States
Courthouse, walking silently from the building
exit to a black SUV that was waiting curbside.
His attorney, William Connolly, repeated an
earlier statement to reporters outside the
courtroom and declined to comment further.
"Dave Nangle is a good man who has proudly
represented his district as a State
Representative," Connolly said. "The charges
against David are nothing more than allegations.
We will fight these charges in court."
Nangle arrived to the courtroom for his
arraignment in handcuffs and ankle shackles. An
officer took the handcuffs off as he entered,
then put him back in handcuffs to escort him out
of the room.
The FBI's Boston office began investigating
Nangle in November 2017, officials said Tuesday,
and authorities believe Nangle's fraud dates
back to at least 2014.
"Simply put, Representative Nangle used the
power of his position on Beacon Hill to fund a
lifestyle out of his reach, unwittingly financed
by those who put him there, while also cheating
the taxpayers," Joseph Bonavolanta, special
agent in charge of the FBI's Boston division,
said at a press conference.
Investigators allege that Nangle, a conservative
Democrat who has served in the House since 1999,
used tens of thousands of campaign dollars on
flowers for his girlfriend, gift cards for
himself, hotel and restaurant charges, and more.
Nangle allegedly spent thousands of dollars
raised for his campaign on member dues, locker
fees and cart charges at a golf club in Lowell,
then described the expenses on mandatory Office
of Campaign and Political Finance reports as
catering or volunteer events.
Authorities also allege Nangle filed fraudulent
tax returns and provided a Lowell bank with
false information to acquire loans, hoping to
hide his debts and fund extensive gambling at
casinos around New England.
The Boston
Herald
Wednesday, February 19, 2020
Embattled Lowell state Rep. David Nangle resigns
top posts amid corruption charges
‘I think that’s appropriate,’ said Gov. Charlie
Baker
By Mary Markos
Indicted Lowell state Rep. David
Nangle stepped down Wednesday from leadership
and committee posts a day after pleading not
guilty to 28 federal charges in his corruption
case — but he did not resign.
“I think that’s appropriate,” Gov. Charlie Baker
told reporters Wednesday after Nangle
relinquished his title as second division chair
in the House, and with it a $30,000 bonus on top
of his $66,257 base salary as a legislator, and,
in an email to the House Clerk, removed himself
from his assignments.
When asked if Nangle should step down from
public office entirely, Baker said, “Remember,
there is something called innocent until proven
guilty here. If he’s deemed to have committed
these crimes, then yeah, at that point he should
definitely step down.”
“These are very serious allegations,” Minority
Leader Rep. Bradley Jones said. “While he
retains the presumption of innocence until
proven otherwise he made the right decision to
step down from his posts within the legislature.
Whether he steps down prior to the next election
is a decision for his conscience, his
constituents and their mutual judgments about
him being able to be effective on their behalf.”
Nangle, 59, pleaded not guilty on 10 counts of
wire fraud, four counts of bank fraud, nine
counts of making false statements to a bank and
five counts of filing false tax returns Tuesday.
A 21-page indictment details several different
methods Nangle allegedly used to cover up his
campaign fund abuse, including buying $7,500
worth of gift cards from stores like CVS and
Rite Aid that he reported as spending on
supplies.
“Due to recent, unfortunate events I believe it
would be in the best interest of the House of
Representatives that I step down from my
leadership position and committee assignments,”
Nangle wrote in the email Wednesday. “It has
been an extreme honor to serve you, my
colleagues and the citizens of the Commonwealth
in my position as Division Floor Leader.”
Nangle removed himself from his assignments to
serve on the House Committee on Ethics and the
House Committee on Rules.
Speaker Pro Tempore Patricia Haddad, a member of
the Ethics Committee, said, “the House and the
Ethics Committee both have procedures that will
be followed. To say anymore could damage the
integrity of the process.”
Both Speaker Robert DeLeo and the House Chair of
the Ethics Committee Christopher Markey did not
respond to requests for comment.
When asked whether there should be more
stringent policies for campaign funds to allow
for more translucence, Baker said, “Well
certainly the rules that we all operate under as
elected officials have to do with reporting to
the Office of Campaign and Political Finance but
obviously a federal investigation is going to
take precedent over anything any of us would do
at the state level and it should.”
Boston Herald
Photo:
Rep. Dave
Nangle’s
fundraisers
always attract
top state
politicians. At
his annual steak
and lobster
event at Lenzi’s
in Dracut in
September 2018,
Nangle shares
the spotlight
with Gov.
Charlie Baker
and Lt. Gov.
Karyn Polito.
The Boston
Herald
Wednesday, February 19, 2020
Finding corrupt Mass. pols is no gamble
By Howie Carr
Here he is, the hack du jour,
Rep. David Nangle of Lowell, with two of his
closest political friends, Gov. Charlie Baker
and Lt. Gov. Karyn Polito, in what are
customarily described as happier times.
Nangle is a Democrat, and Tall Deval and Polito
are Republicans, but what’s party affiliation
mean at the State House?
I mean, if you’re indicted, you’re invited, and
Nangle got the ultimate invitation Tuesday — he
was arrested by the FBI after a 28-count
corruption indictment for, among other crimes,
mail fraud, wire fraud and filing false tax
returns.
The extinguished statesman is, of course, a
member of the House Ethics Committee.
Nangle is 59, a former gas company employee who
discovered his mission in life when he got a job
as a hack coat-holder for the local hack state
senator. There’s a long, long history of sticky
fingers in Lowell politics — B. Joseph Tully,
the ex-state senator, went away for attempted
extortion at age 61 and then at age 84 was
convicted of attempted extortion.
He was succeeded by Paul Sheehy, a jailbird
state rep when he was elected to the state
Senate, after a short stretch in Danbury for
bank fraud where he was visited by young Marty
Meehan, the future $602,500-a-year president of
the University of Massachusetts.
Nangle doesn’t rise to quite to the level of
those Merrimack Valley Hack Hall of Famers. But
this indictment does indicate that he squandered
most of his cash at six New England casinos and
assorted internet gambling sites.
Among the accusations:
Borrowed $100,000 from a relative who owned a
Dracut restaurant but “as of late 2018, NANGLE
owed the Dracut Owner approximately $87,000.”
Borrowed $7,000 from a fellow state rep and
still owes him $4,500, but apparently paid back
some of the money in the form of campaign
contributions.
Got a hack job for a Lowell constituent, then
had him file fraudulent tax returns, but the
payroll patriot “refused to hit the submit
button on TurboTax because he was aware that the
inflated expenses were fraudulent. In response,
NANGLE pressed the submit button, assuring the
Lowell State Employee that NANGLE would ‘take
the blame if anything happens.’ ”
Claimed for tax purposes that he’d driven
290,040 miles in 2014-17, when in reality he’d
only traveled 132,500 miles.
He “double-dipped” — and the feds actually use
that word — taking deductions on expenses he’d
already been reimbursed for as a solon, all of
which was part of his scam that he ran a
“consulting” business which didn’t exist.
Used campaign cash to buy flowers for his
girlfriend.
Claimed $6,500 in fraudulent charitable
deductions.
Used a “straw vendor” to launder $1,500 in cash
from his campaign account.
Once, after winning $1,221 at a Connecticut
casino, he paid someone else to cash the
winnings, so as to avoid paying income taxes —
all of which the feds say was captured on
surveillance cameras.
“The charges against David are merely
allegations,” his lawyer said, and that
presumably includes the surveillance video.
By the way, Nangle blames his financial woes on
… his ex-wife. Stop me if you’ve heard any of
this before.
In addition to the Ethics Committee post, he has
one of those phony-baloney “leadership” jobs —
“second division chair.”
Chair? How much does the second division table
get? In addition to his $62,000 or so base, he
grabs — grabbed — another $30,000. That’s how
the speaker, who was once himself listed as an
unindicted co-conspirator in another corruption
conspiracy, keeps him and all the rest of ‘em in
line.
Late last year, the payments to the lawyers
started showing up on his campaign-finance
reports. His local paper, the Lowell Sun, asked
him if he was jammed up.
Being a member of the Ethics Committee, Nangle
of course lied:
“It is advisable in this day and age of
government accountability to obtain professional
assistance from accountants, attorneys and
consultants on a host of government-related
issues. These professionals are helpful in
navigating the complex issues and requirements
of a state legislator.”
Translation #1: Not guilty, Your Honor!
Translation #2: I have a disease, Your Honor.
I’m a gambling addict.
Please, try not to let this destroy your faith
in the integrity of the Massachusetts General
Court. Look on the bright side — it took 49 days
for the first solon of the year to get indicted.
The Salem News
Thursday, February 20, 2020
Baker-Polito nominations draw claims of
patronage
By Christian M. Wade, Statehouse Reporter
Members of the Governor’s Council
are accusing the Baker administration of
creating a "patronage pipeline" with nominations
to high-paying state court jobs.
Last week, Fitchburg attorney Damian Riddle was
approved by the Governor’s Council for a clerk
magistrate position with the Ayer District
Court. Riddle, who was nominated by Lt. Gov.
Karyn Polito, has donated at least $850 to
Polito's campaign since 2017, including a $500
contribution shortly before he applied for the
magistrate's job.
Eileen Duff, one of two councilors who voted
against confirming Riddle, said the nomination
is the latest in a series of examples where
applicants with connections to Polito and Gov.
Charlie Baker have landed "lifetime" jobs with
the state.
"It's really disturbing," said Duff, a
Gloucester Democrat whose council district
includes most of Essex County. "It makes me
question the integrity of the judicial
nominating process."
Massachusetts is one of few states where judges
are appointed to the bench for life. Polito, a
Shrewsbury Republican, chairs the eight-member
Governor’s Council, which has final say on
judicial nominations.
Duff said Riddle was selected over acting Ayer
Clerk Magistrate Jennifer Lennon, who has worked
for the court system for more than 14 years.
Lennon applied for the job but wasn't called to
interview with the 21-member Judicial Nominating
Commission, according to Duff and other
councilors.
"She was told she wasn't qualified," Duff said.
"That's absurd. She's worked for the court
system for years."
A Baker-Polito spokeswoman deferred comment to a
representative of the pair's political team, who
didn't immediately respond.
Councilors have clashed with the administration
over several politically connected nominations,
including former Shrewsbury police Detective Lt.
Joseph McCarthy Jr., who was tapped for a clerk
magistrate post with the Westborough District
Court. McCarthy, who coached Polito’s son in
youth football, was narrowly confirmed in
September after a contentious hearing.
In April, Baker nominated his deputy legal
counsel and the executive director of the
Judicial Nominating Commission, Sharon Casey,
for a post as clerk magistrate in Cambridge.
Other councilors have raised concerns about a
growing perception that people with ties to the
governor and lieutenant governor have a leg-up
on plum judicial appointments.
Councilor Bob Jubinville, a Milton Democrat and
defense attorney, has voted against several of
Baker and Polito's appointments because of their
political connections.
At confirmation hearings, he has chided other
councilors for not being skeptical enough of the
nominating process, which he says is done
largely "behind closed doors."
"We're supposed to be a check and balance on a
powerful governor," Jubinville said. "We're not
supposed to be in his pocket. We're supposed to
be independent."
Councilor Terry Kennedy, an Everett Democrat and
attorney who represents the 6th District, shrugs
off any suggestion that political donations are
a factor.
"Do I think someone who gave the lieutenant
governor $500 got a job for it? Absolutely not,"
said Kennedy, who voted for Riddle's
appointment. "That's kind of absurd."
Kennedy said investigating how judicial
nominations are made is beyond the scope of the
Governor's Council mandate.
"Our job is to decide if they have the
qualifications and temperament for the job," he
said. "It not our job to investigate how they
got there."
Some councilors point out that Riddle, the most
recent nominee, has also contributed money to
Democrats over the years, including to former
Lt. Gov. Tim Murray, who stepped down in 2013.
The Governor's Council is the final step for
judicial nominees selected for court jobs by the
executive branch. Nominations are initially
vetted by the nonpartisan Judicial Nominating
Commission, which is filled with gubernatorial
appointees. The commission reviews and grades
nominees before the Governor's Council holds
final confirmation hearings.
The Baker administration has nominated scores of
judges and magistrates to fill state court
vacancies, including Supreme Judicial Court
justices David Lowy and Kimberly Budd. Most of
the administration's nominees are approved. Only
a handful have withdrawn before their
nominations went to a vote on the Governor's
Council.
To be sure, former Gov. Deval Patrick also left
a huge mark on the judiciary during eight years
in office. The Democrat appointed 188 state
judges and 29 clerk magistrates.
Meanwhile, the state's Democratic Party is
trying to raise money off the controversy over
the appointments.
The party sent an email blast to members last
week, attributed to Councilor Duff, calling for
donations to "stop the patronage pipeline.”
"Opportunities in our state shouldn’t be based
on how much you donate to Karyn Polito’s
campaign," the email stated. "Help the MassDems
build the grassroots networks they’ll need to
take on Polito, Governor Baker, and their
patronage pipeline."
— Christian M.
Wade covers the Massachusetts Statehouse for The
Salem News and its sister newspapers and
websites.
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