Ed Fallon has attacked the attempt to close the “Fallon Loophole,” the practice of professional politicians paying themselves salaries with campaign funds, as “status quo politics at its worst.” As laughable as this statement may be, Fallon’s own reprehensible actions show why the legislature must take action.
While Fallon defend paying himself from campaign funds by stating “Most candidates aren’t as fiscally responsible as I am. They finish in the red. I managed to finish in the black,” Fallon was lying at the time. According to an amended campaign finance report filed by his gubernatorial campaign the very same day his quote appeared in the Des Moines Register, Fallon for Governor was $21,225.51 in debt. This debt had been growing since the end of the campaign, mostly fueled by Fallon’s salary, although significant payments were also made to Fallon’s girlfriend, Lynn Heuss and Fallon’s daughter Fionna received smaller payments as well. While Fallon was an advocate for Iowa’s “Mom and Pop businesses” while running for Governor, he never made it clear that he considered his campaign to be one of those businesses.
It is behavior like this that shows why the legislature needs to stop other politicians from following in Ed Fallon’s sleazy footsteps. After all, a ban on this sort of activity was a fundamental part of the ethics reform legislation that Barack Obama passed in Illinois. But unfortunately, the legislature can’t protect everyone from Fallon’s serial profligacy. His campaign has less than $3000 in net assets and a payroll of roughly $40,000 a month and Fallon already has a history of leaving his campaigns deep in debt. If I was a Fallon staffer, I would insist on getting paid in cash.
April 17th, 2008
Iowa Independent just published a story that reveals that congressional candidate Ed Fallon has been hiding contributions to his political organization, IM For Iowa. Although IM for Iowa’s goal is “further develop a broad movement committed to progressive reform in state and local politics,” it is legally a for-profit partnership between Fallon and his campaign manager and girlfriend Lynn Heuss. As a result, IM for Iowa can take an unlimited amount of contributions and does not have to reveal its contributors or how it spends its money. However, it is highly questionable how a building a grassroots movement in Iowa for causes like advocating Clean Elections can be a moneymaking, for-profit entity. IM for Iowa does not sell any product or produce anything of tangible commercial value. People who give money to it have no idea where their money went. In fact Fallon admitted that he has been paying himself from IM for Iowa’s coffers, stating that “both Lynn and I took a small draw on the business.” Fallon compared his actions to that of former Congressional candidate Jeff Lamberti who received a salary from Casey’s, a family owned chain of conveniences stores that is a publicly traded stock on NASDAQ and subject to a wide array of federal disclosure laws. IM For Iowa is not subject to any federal disclosure laws, let alone traded on NASDAQ.
Last month, Fallon attacked Leonard Boswell for receiving a $5000 contribution from an AT&T sponsored PAC and then for voting for one version of telecom immunity. Regardless of whether one morally approves of Leonard Boswell taking a donation from a PAC, it is both clearly legal and the donation is fully disclosed. The public knows who gave money to Leonard Boswell and has the ability to raise questions about it. Fallon’s conduct with IM For Iowa raises some serious legal questions but most importantly, it raises the question of who is giving money to Ed Fallon and what are they getting in return?
Fallon’s political reputation is that of someone who values principle above all else, even at his own expense. But when he’s running an organization like IM for Iowa that seems to be deliberately structured to avoid any financial disclosure that undermines everything Ed Fallon has seemingly stood for in his decade and a half in public life. On one hand, Ed Fallon stands for clean elections, on the other, he is engaging in political activity that clearly violates the spirit of the election law he considers far too weak, (not to mention the actual law himself). Ed Fallon needs to make public all pertinent records and tax filings of IM for Iowa immediately. After all, if he has behaved ethically and has nothing to hide, it would only reinforce his reputation for probity. But if Fallon does not come clean, his reputation for honesty will be permanently tainted, if not destroyed.
March 20th, 2008
