General Discussion

Julian Englis

(2,309 posts) Sat Apr 21, 2018, 11:31 PM Apr 2018

The New York Times Does an In-Depth History of Scott Pruitt's Corruption

Scott Pruitt Before the E.P.A.: Fancy Homes, a Shell Company and Friends With Money

Here's just a bit of it--and it gets worse as it goes on:

Early in Scott Pruitt’s political career, as a state senator from Tulsa, he attended a gathering at the Oklahoma City home of an influential telecommunications lobbyist who was nearing retirement and about to move away.

The lobbyist said that after the 2003 gathering, Mr. Pruitt — who had a modest legal practice and a state salary of $38,400 — reached out to her. He wanted to buy her showplace home as a second residence for when he was in the state capital.

“For those ego-minded politicians, it would be pretty cool to have this house close to the capitol,” said the lobbyist, Marsha Lindsey. “It was stunning.”

Soon Mr. Pruitt was staying there, and so was at least one other lawmaker, according to interviews. Mr. Pruitt even bought Ms. Lindsey’s dining room set, art and antique rugs, she said.

A review of real estate and other public records shows that Mr. Pruitt was not the sole owner: The property was held by a shell company registered to a business partner and law school friend, Kenneth Wagner. Mr. Wagner now holds a top political job at the Environmental Protection Agency, where Mr. Pruitt, 49, is the administrator.

According to real estate records, the 2003 purchase of the house for $375,000 came at a steep discount of about $100,000 from what Ms. Lindsey had paid a year earlier — a shortfall picked up by her employer, the telecom giant SBC Oklahoma.

SBC, previously known as Southwestern Bell and later as AT&T, had been lobbying lawmakers in the early 2000s on a range of matters, including a deregulation bill that would allow it to raise rates and a separate regulatory effort to reopen a bribery case from a decade earlier. Mr. Pruitt sided with the company on both matters, state records show.

In 2005, the shell company — Capitol House L.L.C. — sold the property for $95,000 more than it had paid. While shell companies are legal, they often obscure the people who have an interest in them, and none of Mr. Pruitt’s financial disclosure filings in Oklahoma mentioned the company or the proceeds — a potential violation of the state’s ethics rules.

The Oklahoma City deal, which has not been previously reported, was one of several instances in which Mr. Pruitt appeared to have benefited from his relationships with Mr. Kelly and Mr. Wagner while in state politics.

During his eight years as a Republican state senator, Mr. Pruitt also upgraded his family residence in suburban Tulsa from a small ranch-style home to a lakefront property in a gated community. In addition, he bought a sizable stake in a minor league baseball team, and took a second job at Mr. Wagner’s corporate law firm. Mr. Kelly’s bank, SpiritBank, would be there for much of it — providing financing for Mr. Pruitt’s Tulsa home and his stake in the baseball team, as well as the mortgage for the Oklahoma City house.

Mr. Pruitt’s interactions with SBC also show that his blurring of lines with lobbyists has roots in his Oklahoma years. One of the issues at the E.P.A. that has gotten Mr. Pruitt in trouble with government watchdogs involved his renting a room in Washington for $50 a night from the wife of an energy lobbyist who has had business in front of the agency.