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Bolger, Schmidt evade charges for election scheme

Updated: Thursday, August 15, 2013
Bolger, Schmidt evade charges for election scheme story image
KALAMAZOO, Mich. (NEWSCHANNEL 3) - A few days ago, a year-long grand jury of one cleared House Speaker Jase Bolger, of Marshall, and former State Representative Roy Schmidt of any criminal wrong doing in their keystone cops effort to rig an election last year with a fake Democratic opponent.

Tonight in Tom’s Corner, Tom Van Howe says that while they may not be crooks, there’s nothing suggesting either one can be trusted.

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How it can be that an effort to trick, to fool, to defraud voters, is anything but criminal is astonishing to me.

You can go to jail for cheating an innkeeper, but its business as usual when you're caught trying to cheat voters by abusing our electoral process.

In case your memory is foggy, here’s what happened.

Representative Roy Schmidt, a long-time Grand Rapids Democrat, decided he wanted instead to be a Republican.

So he huddled with House Speaker Jase Bolger and came up with a plan. Schmidt would wait until the last minute before the election, then take voters by surprise by filing as a Republican.

By pushing it to the brink it would leave his old party  without sufficient time to field a viable candidate.

But Schmidt and Bolger didn’t leave that to chance either; they recruited a kid—a friend of Schmidt’s son; someone who didn’t even live in the district; someone who has no political ambition—to file perjure himself as the Democratic challenger.

They offered him $1,000 to stay in the race.

But in the glare of media scrutiny, the young sacrificial lamb dropped like rock.

And because no money had actually changed hands—and only because of that—no law was violated.

“Intent,” apparently, only applies to other crimes.

In an incredible collapse, Schmidt went on to lose in the August primary to write-in Democrat Winnie Brinks.

Kent County’s Republican prosecutor William Forsythe said he could find no law that had been broken—but called the Bolger-Schmidt effort to rig an election a “travesty,” and likened it to rigging a boxing match.

There are laws against that, by the way.

So now a grand jury said the pair broke no law; that neither of them is a criminal.

Schmidt is already musing that he’d like to get back into politics. He says a suggestion by a former aide that there ought to be a law to prevent what he did from happening again is a “bunch of crap.”

Bolger has apologized;  but says he’d do it again. Without, the next time, the focus on the phony candidate.

He compared what he and Schmidt did to a football coach running a trick play.

Bolger is in his third term in the house and can’t run again. But the smart money says he’ll make a run for the state senate.

Just two guys who tried to rig an election. Two guys who violated the public trust. Two guys who abused the electoral process. They don’t get it.

Neither one deserves to hold elective office. One can only hope voters remember when the time comes to send them that very message.

In this corner...I’m Tom Van Howe.

Business News

Last Update on September 02, 2014 17:28 GMT

ECONOMY-MANUFACTURING

WASHINGTON (AP) -- U.S. manufacturing grew in August at the strongest pace in more than three years as factories cranked out more goods and new orders rose.

The Institute for Supply Management, a trade group of purchasing managers, says its manufacturing index rose to 59 from 57.1 in July. Anything above 50 signals that manufacturing is growing.

A gauge of production rose to the highest level in four years, and a measure of new orders jumped to its highest in 10 years. That suggests that the sector should continue to grow in the coming months.

CONSTRUCTION SPENDING

WASHINGTON (AP) -- U.S. construction spending staged a strong rebound in July, rising by the largest amount in more than two years. All major categories of construction showed gains in an encouraging sign that spending on building projects will help boost the economy in the second half of this year.

The Commerce Department says construction spending rose 1.8 percent in July, the biggest one-month gain since May 2012. It followed a 0.9 percent decline in June, the largest setback in a year. That decline had been blamed in part on soggy weather which depressed construction activity in many parts of the country.

The July rebound pushed total construction to a seasonally adjusted annual rate of $981.3 billion, the highest level since December 2008. Spending on housing, non-residential and government projects all increased.

HOME PRICES

WASHINGTON (AP) -- U.S. home prices rose in July but at a slower rate compared with earlier this year.

Real estate data provider CoreLogic says prices rose 7.4 percent in July from July 2013. That was slightly below June's year-over-year increase of 7.5 percent.

Prices rose 1.2 percent in July from June.

The smaller price gains should make homes more affordable and support sales. The average 30-year fixed mortgage rate was 4.1 percent last week, the lowest in a year. And the number of available homes rose 3.5 percent in July to the most in nearly two years. A greater supply tends to limit the bidding wars that inflate prices.

UKRAINE-ECONOMY

BRUSSELS (AP) -- The International Monetary Fund says Ukraine will need billions of dollars in additional support if the fighting between the military and Russian-backed separatists in the country's east persists.

In its first in-depth assessment since granting the country a $17 billion bailout program in March, the IMF said Tuesday "risks loom large" for the country's economy.

It says the bailout program already faces a $3.5-billion funding shortfall through 2015, with the economy forecast to shrink by 6.5 percent this year. Analysts say Ukraine's gross domestic product might tumble even more.

It says if the fighting in the eastern region -- representing about 16 percent of Ukraine's GDP -- were to persist through next year, Kiev would likely need additional support worth $19 billion only to shore up its central bank reserves.

NEW NATURAL GAS PIPELINE

NEW YORK (AP) -- Dominion Resources, Duke Energy and other partners have proposed building a $5 billion natural gas pipeline to connect the Southeast with the prodigious supplies of natural gas being produced in Pennsylvania, Ohio and West Virginia.

Gas is being relied upon to generate more of the nation's electricity in recent years because the enormous new domestic supplies have drastically lowered its price and it burns cleaner than the nation's other most important fuel for electric power, coal.

The 550-mile project will begin in Harrison County, West Virginia and stretch to Robeson County, North Carolina, in the southern part of the state.

The partners, which included Piedmont Natural Gas and AGL Resources, expect to receive regulatory approval by mid-2016 and to start operating the pipeline in 2018.

HALLIBURTON-SPILL SETTLEMENT

HOUSTON (AP) -- Halliburton says it has agreed to pay $1.1 billion to settle a substantial portion of plaintiff claims arising from the 2010 Gulf of Mexico oil spill.

The settlement, which is subject to court approval, will be paid into a trust until appeals are resolved over the next two years.

Halliburton was BP PLC's cement contractor on the drilling rig that exploded in the Gulf in April 2010, killing 11 workers and triggering the largest offshore oil spill in U.S. history.

The deal will settle claims assigned to Halliburton as a result of BP's settlement in 2012 and punitive damages from the loss of property or commercial fishing activity resulting from the oil spill.

DOLLAR GENERAL-FAMILY DOLLAR

GOODLETTSVILLE, Tenn. (AP) -- Dollar General is boosting its bid for rival Family Dollar to approximately $9.1 billion and says it's now willing to more than double the number of stores it would shed to avoid trouble with regulators.

The newest bid from Dollar General is worth $80 per share, up from $78.50. Dollar General's previous bid, worth nearly $9 billion, was rejected by Family Dollar in favor of an offer of about $8.5 billion from Dollar Tree Inc.

Dollar General Corp. says it will now divest 1,500 stores to steer clear of antitrust issues. It previously said it would divest up to 700 stores. The Goodlettsville, Tennessee company has also agreed to pay a $500 million reverse break-up fee to Family Dollar Stores Inc. if the deal runs into antitrust roadblocks.

COMPUWARE-TAKEOVER

UNDATED (AP) -- Private equity firm Thoma Bravo is spending about $2.5 billion to buy Compuware and take the software developer private.

The companies say Compuware stock owners will receive about $10.92 for each share they own. That price includes mostly cash and some stock from Compuware spin-off Covisint.

It represents a premium of about 17 percent to the Detroit company's Friday closing price.

Compuware says its board unanimously approved the deal and recommends shareholders vote for it as well. Activist investor Elliott Management has already agreed to vote in favor of the deal. Elliott holds more than a 9 percent stake in Compuware Corp. and tried to acquire the company last year.

Thoma Bravo and Compuware expect the deal to close early next year.

Shares of Compuware are soaring in morning trading.

NORWEGIAN CRUISE LINE-PRESTIGE-ACQUISITION

NEW YORK (AP) -- Norwegian Cruise Line is getting into the luxury cruise business by acquiring Prestige Cruises International in a deal worth about $3 billion.

Prestige operates high-end cruise lines Oceania Cruises and Regent Seven Seas Cruises.

Norwegian Cruise Line Holdings Ltd., based in Miami, values the deal at $3.025 billion, when debt is included. Its shares are up more than 10 percent today.

Prestige is owned by the private equity firm Apollo Global management LLC, which also owns a large stake in Norwegian.

The deal is expected to close in the fourth quarter.

1-800-FLOWERS-HARRY & DAVID

1-800-FLOWERS buying Harry & David for $142.5M

CARLE PLACE, N.Y. (AP) -- 1-800-FLOWERS.COM Inc. is buying Harry & David for $142.5 million to help broaden the assortment of foods that its customers can choose as gifts.

The deal includes Harry & David Holdings Inc.'s brands, websites, 47 retail stores, some plants, orchards and its headquarters in Medford, Oregon.

Harry & David's fruit, food and other gifts are housed under brands including Wolferman's, Cushman's and its namesake. Products include Royal Riviera pears, Wolferman's specialty English muffins and Cushman's HoneyBells citrus gifts.

1-800-FLOWERS' brands already include Fannie May, Cheryl's and The Popcorn Factory.

The transaction is expected to close in October.

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