Last Friday we posted a story about an email sent out by Rep. Gary Miller concerning 42nd Congressional candidate Lee McGroarty titled, "Challenger Operates Businesses With Suspended Licenses."
McGroarty has now commented on the email, which you can find below.
When McGroarty originally responded his web site said,
"McGroarty's personal accountant, Ron Uehle, responded with the following statement: "Lee, I just spoke with the Franchise Tax Board and have cleared up the matter of your corporations being "suspended". The Franchise Tax Board failed to forward to the Secretary of State's office the paperwork that was filed in 2008 on your behalf. It will take 10 business days for the Secretatary of State's website to be updated to show the "active" status of your corporations."
The McGroarty campaign originally said that the problem started in 2008 when "The Franchise Tax Board failed to forward to the Secretary of State's office the paperwork that was filed in 2008," but Miller's email and documentation on Lee McGroarty for Congress stated his corporations were suspended in 2007. Now the McGroarty campaign says the problem started in 2006/2007 and say that the problem is because,
"a Statement of Information Form and a $25 filing fee were not filed properly by my accountant. My accountant corrected the error in 2008 but the Secretary of State did not update its records. The Franchise Tax Board has assured us that this was an oversight and the error is being resolved. 401(k) Administrators, Inc. had not filed a tax return for the past few years as the corporation was dissolved. However, the State is not showing receipt of the one-page form for dissolving that corporation and my accountant is working to resolve this technical error."
Now to the release,
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McGroarty Blasts Miller's Fraud Allegations
Congressman Miller recently sent out an extremely deceptive and misleading mass email claiming that I have been operating my businesses without proper licensure and have been "handling retirement funds without a license." In the process, Congressman Miller has smeared my business, my clients and my family as we have worked extremely hard to build a solid reputation in the community and in the financial services industry.
To continue reading please click Read More below.
In 2006/2007, after moving our business to Chino, we decided to merge our 401(k) Administrators, Inc. and RetireAmerica businesses into one firm called RetireAmerica Corporation, a full-service retirement plans company. My accountant had believed that he had completed all proper forms. However, the Franchise Tax Board has recently informed us, after we contacted them, of a few "minor" issues that are causing the State's website to show my firm as "suspended." At no point was I ever aware of any issues that could cause my company to be questioned.
For starters, RetireAmerica Corporation has filed its taxes every year in a timely fashion. Not once have we been audited, nor have we experienced any issues that would have alerted us of any suspension on the Secretary of State's website. At the time of the merger, a Statement of Information Form and a $25 filing fee were not filed properly by my accountant. My accountant corrected the error in 2008 but the Secretary of State did not update its records. The Franchise Tax Board has assured us that this was an oversight and the error is being resolved. 401(k) Administrators, Inc. had not filed a tax return for the past few years as the corporation was dissolved. However, the State is not showing receipt of the one-page form for dissolving that corporation and my accountant is working to resolve this technical error. There is nothing sinister that has occurred and for Congressman Miller to assert otherwise is shameful on his part. This is nothing more than politics as usual from our Congressman.
The issue of fraud is an entirely different matter and I take personal exception to Congressman Miller's allegations.
Congressman Miller stated that I was a fraud for "handling clients' retirement funds without a license." As a member of the House Committee on Financial Services, Mr. Miller is fully aware that I am NOT required to hold a corporate license to "handle clients' retirement funds". I am ONLY required to have Financial Industry Regulatory Authority (FINRA) registrations (Series 6, 7, etc.) and California Department of Insurance licenses -- all of which I have and are FULLY ACTIVE! My licenses to manage people's money have never been suspended nor ever been questioned.
In the more than 23 years in the financial services industry, I have had ZERO client/customer complaints filed with my Broker/Dealers, FINRA or CA Department of Insurance. ZERO! I am very proud of this FACT and I take very seriously the assertion that I am a "fraud", "wolf of the henhouse" or "lawbreaker", as Mr. Miller asserts.
Congressman Miller has attacked me to divert attention from his corruption scandals. Since 2007, it is Congressman Miller that has been under House Ethics Investigation and FBI Investigation for earmarks and land deals outside the 42nd District. It is Congressman Miller who was forced to apologize on the floor of the House of Representatives for corruption allegations. It is Congressman Miller that received $50,000 in PAC contributions from people involved in the "biggest political corruption scandal in San Bernardino County history" as defined by District Attorney Mike Ramos in February 2010...all of whom are located outside the 42nd District.
Congressman Miller's actions speak louder than words and I will not be intimidated by fraudulent attempts at smearing my reputation or business. Unlike our Congressman, I show up to work every day like the rest of the People of the 42nd District. I don't rely on TARP Bailouts, Cash for Clunkers or Earmarks to enhance my business interests. I am proud of my business and my clients appreciate the servicing we have shown them.
I will continue to talk to the People of the 42nd District about the issues and how we can recover from the mess Congressman Miller helped create with Earmarks, Sub-Prime Housing and Bailouts. I will not be intimidated and on June 8th, with the support of the voters, I WILL WIN!
For more information, please review Lee McGroarty's website at www.mcgroartyforcongress.com
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Why would he put out a statement without knowing all the facts? First it is just a minor paperwork issue from 2008. Now he admits not filing the right paperwork, not paying fees and not filing taxes. It looks like a cover up. Who are his advisors? They should be fired.
ReplyDeleteLee also deserves the Spin of the Year Award. He says, "However, the Franchise Tax Board has recently informed us, after we contacted them, of a few "minor" issues that are causing the State's website to show my firm as "suspended."
Really, "after we contacted them?" Obviously the state knew about the problems because they were suspended. Miller appears to have knew as well because he has a document showing it was suspended. Why didn't McGroarty, who claims to have a "solid reputation in the community and in the financial services industry," know?
He only tried to fix it once it went public and now he acts like nobody knew about it until he brought it to their attention.
Lucky,
ReplyDeleteYou should just save some time and confusion and change the name of the blog from "Three Corners Politics" to "Gary Miller Politics". I think I'll nominate you for the Spin Award, as you've spun every story into either an attack on Gary's opponents, or in the case of Gary's scandal after scandal, un unfair attack on a solid Congressman. From the day McGroarty fired the first salvo at the MILLER MACHINE, you've been there to fire back. It's no surprise that every time Miller comes out with a blast against Liberatore or McGroarty, his personal attack dog "Lucky" knows all about it.
For the record, I am the corporate secretary for a California corporation and I think I am familiar with exactly what form they are reffering to. I believe it is a $25 yearly fee on a form that updates the state on changes to the corporation. Obviously, there are no excuses for not filing, but in the scope of wrongs it pales in comparison to most of things Miller has done.
Back during the week of 5/2-5/9 Lucky, you wrote that "you noticed" McGroarty's license showed as suspended while you were LOOKING AT MCGROARTY'S WEBSITE POSTING OF THE COMPLAINT. First, obviously they had nothing to hide. Secondly, obviously McGroarty was unaware at that time, or he'd have fixed this or addressed it then. I also find it funny that Miller began using it after "you" noticed it.
It is clear that you stumbled across something that was wrong, but now has been fixed. If the state does correct the status, then it supports the McGroarty statement. Yet, you SPIN his statement into his admission that he didn't file taxes (without mentioning that his statement included there were no taxes due because of the dissolution of the corporation).
Yes Lucky, there is a lot of SPIN going on in this post, but its all in your and Gary's direction. I sincerley hope that the voters of the 42nd have had enough of bailouts, had enough of incumbents, and especially had enough of Miller.
Oh Dennis,
ReplyDeleteFirst,
The above release came from the McGroarty campaign, not the Miller campaign. So the comment "It's no surprise that every time Miller comes out with a blast against Liberatore or McGroarty, his personal attack dog "Lucky" knows all about it." makes no sense. Of course I knew about this, I went to McGroarty's website. Duh, anyone can have that information.
Second,
I find it funny that McGroarty supporters keep saying what McGroarty did was wrong (made up endorsements, FEC investigations, Suspended business entities, etc...) but Miller is worse. Not really a good campaign strategy.
Third,
Regarding your comment about "Miller began using it after "you" noticed it," comment. I found that information the same day I posted a story about the FEC investigation. Miller has a document from last December so I doubt I tipped him off to it.
Doesn't it seem odd that McGroarty had no idea what was going on with his business licenses but Miller knew about it last December. If I was a business owner I would like to think I would pay much better attention.
Finally, regarding your comment that I "Spin his statement into his admission that he didn't file taxes..." I never made any statement about that in my post. I only had his quote. But why would he admit not filing a tax return. Doesn't he know that his opponents can use that against him?
Dennis,
ReplyDeleteOne more thing. Regarding your comment,
"Back during the week of 5/2-5/9 Lucky, you wrote that "you noticed" McGroarty's license showed as suspended while you were LOOKING AT MCGROARTY'S WEBSITE POSTING OF THE COMPLAINT. First, obviously they had nothing to hide. Secondly, obviously McGroarty was unaware at that time, or he'd have fixed this or addressed it then. I also find it funny that Miller began using it after "you" noticed it."
McGroarty wasn't talking about his corporations. He was admiting to being investigated by the FEC. We saw the suspended listing in the packet McGroarty posted on his website. Like I said earlier, Miller has a December document on his web site that says they are suspended, so he obviously knew about it first. But when we posted about it McGroarty had never admited to it and was not yet aware of the suspension. So don't pretend like McGroarty came forward with the information first. He even had the document saying it was suspended but didn't notice it until we posted the story.