Part of the Bay Area News Group

The Rick Davis/Freddie Mac lie, compounded

By Josh Richman
Thursday, September 25th, 2008 at 12:34 pm in Elections, John McCain.

Remember, I’ve resolved here to call a lie a lie, not a “spin” or an “exaggeration.” And this case, readers, sounds to me like a lie told to cover up a lie.

Republican Presidential nominee John McCain, responding to concern that his campaign manager and longtime political aide/confidante Rick Davis was paid for advocacy work on behalf of the now-wrecked Freddie Mac and Fannie Mae government-sponsored mortgage giants, told the New York Times a few days ago that Davis had no such involvement since 2005 — yet the Times found Freddie Mac had made payments to Davis’ lobbying firm through last month.

The McCain campaign posted a statement to its Web site yesterday attacking the Times’ reporting:

As has been previously reported, Mr. Davis separated from his consulting firm, Davis Manafort, in 2006. As has been previously reported, Mr. Davis has seen no income from Davis Manafort since 2006. Zero. Mr. Davis has received no salary or compensation since 2006. Mr. Davis has received no profit or partner distributions from that firm on any basis — weekly, bi-weekly, monthly, bi-monthly, quarterly, semi-annual or annual — since 2006. Again, zero. Neither has Mr. Davis received any equity in the firm based on profits derived since his financial separation from Davis Manafort in 2006.

Further, and missing from the Times’ reporting, Mr. Davis has never — never — been a lobbyist for either Fannie Mae or Freddie Mac. Mr. Davis has not served as a registered lobbyist since 2005.

Yet Newsweek reports Davis “has remained the treasurer and a corporate director of his lobbying firm this year, despite repeated statements by campaign officials that he had ended his relationship with the firm in 2006, according to corporate records.” Here’s one of those records, the firm’s 2008 annual report to the Virgina State Corporation Commission, listing Davis as an officer and director.

All of which is talking around the main point: These out-of-control mortgage lenders were shelling out paychecks to Davis and/or Davis’ firm for years merely because Davis is McCain’s top adviser. The Times’ sources “said they did not recall Mr. Davis’s doing much substantive work for the company in return for the money, other than speak to a political action committee of high-ranking employees in October 2006 on the approaching midterm Congressional elections. They said Mr. Davis’s firm, Davis & Manafort, had been kept on the payroll because of Mr. Davis’s close ties to Mr. McCain, the Republican presidential nominee, who by 2006 was widely expected to run again for the White House.”

And whether Davis has drawn a paycheck from his firm since 2006 isn’t the point. Does Davis contend he’ll never return to his firm after this campaign is done, a firm enriched in the interim by Freddie Mac? Certainly not. The fact is, the firm Davis helped found, of which he’s still apparently an officer and director, made about $500,000 from the failed mortgage giant based on Davis’ access to McCain and during the same time Davis has been working to put McCain in the White House (and all this after Davis undisputedly made about $2 million working on the mortgage lenders’ behalf from 2000 through 2005).

Having a top aide and/or his firm taking money from troubled mortgage lenders sounds not unlike the sort of “poor judgment” McCain showed in a scandal at the heart of the last big government bailout. And this series of lies to cover it up sounds like anything but “straight talk.”

[You can leave a response, or trackback from your own site.]

  • http://www.ConstitutionalRepublicans.org Walter, GOP Livermore City-Chair

    Republican Establishment Sues Elected Ron Paul Supporters Taking Back the Party

    Alameda County, California – The Republican establishment is suing seven Ron Paul supporters, including the author of this article, who were newly elected to the Alameda County Republican Central Committee, using the Committee Chairman, Paul Cummings, as their surrogate. If the establishment is successful in this lawsuit, you can expect this tactic, or similar ones, to be repeatedly utilized to crush Ron Paul supporters. We could have agreed not to contest the lawsuit and quietly faded away; instead we remained committed to the Revolution and elected to fight. However, we can not have a successful Revolution if patriots such as ourselves are forced to stand alone on the battlefield. We need your support and, most importantly, financial assistance to win this lawsuit, and help take back the Republican Party from within. (See below how to help out.)

    Prior to the June 3rd election, many of us were questioning what role we would play in continuing the Revolution and advancing the cause of liberty in our local area. For many of us, we knew all along that the Revolution was about the “message” and not the “man,” so a number of us decided to take Ron Paul’s advice and took steps to get involved with the local political process by running for the Alameda County Republican Party Central Committee. (Alameda County is across San Francisco Bay from San Francisco) We felt that we could put what we had learned during the Ron Paul Presidential Campaign to good use in promoting our own campaigns for Central Committee. Along with other like minded supporters, we formed a group which we named the Constitutional Republicans in honor of Ron Paul. We used our organizational skills to get a professional looking website up and running, personalized fliers printed and a Meetup Group started. We did canvassing drives, literature drops, sign bombs, flier bombs, email blasts and a whole host of other things to get our slate of Constitutional Republicans recognized and elected.

    After the June 3rd election, it was obvious that our hard work had paid off. We ran a total of 18 candidates, and 12 were successful in winning seats on the 30 member Central Committee. Our entire group received 67,829 individual votes from the Republican voters of Alameda County. We were all very grateful to the voters, for supporting us and giving us the chance to do our part in returning the Republican Party to its roots.

    After the results of the election had been certified by the Board of Supervisors, the Chairman decided to file a lawsuit contesting the election of seven of the newly elected members. We believe that this was a desperate attempt to deplete our numbers and scare our people from serving on the Central Committee. Needless to say, the Chairman’s plan did not work, as this lawsuit has effectively turned our group from a herd of alley cats into a pride of lions! We are now more organized, dedicated and committed than ever before.

    This is not to say that our battle is over… It’s far from it! We still need all the help that we can get. Up to this point we have been coordinating our legal defense among ourselves and doing the best we can. We have a strong case but we need to retain legal counsel to assist us and argue our case in court. It is also very important to stop the Republican establishment from using this tactic against other Ron Paul supporters, or as I like to say, “Constitutional Republicans.” If we fail, you can all be assured that this tactic will be used every time we gain ground in restoring our Constitutional Republic!

    I will post the links below to our website, our Legal Defense Fund Chip-In account, our YouTube channel with videos, newspaper articles and the Chairman’s email.

    Please make a donation to our Legal Defense Fund Chip-In account! No donation is too small, every dollar counts and is much appreciated. Our trial is set for October 17th, so time is short. This Revolution will continue…

    “The only thing necessary for the triumph of evil is for good men to do nothing.” – Edmond Burke

    Our website with details of our organization and our court case:

    http://www.ConstitutionalRepublicans.org

    Legal Defense Fund Chip-In Account:

    http://constitutionalrepublicans.chipin.com/help-fight-the-lawsuit

    YouTube Channel & Videos: (subscribe and post a comment)

    http://www.youtube.com/user/TakingBackTheGOP

    Part-1- (view, rate and comment)

    http://www.youtube.com/watch?v=63XlEkf2mdI

    Part-2-

    http://www.youtube.com/watch?v=tZF23eNYEeM&feature=related

    Part-3-

    http://www.youtube.com/watch?v=q23RsESmK_I

    Another Version with Protest Footage:

    http://www.youtube.com/watch?v=SaMo0hLzrt4

    Newspaper Article:

    http://www.insidebayarea.com/ci_10235006?source=most_emailed

    Contact Info for Alameda County Republican Party Chairman, Paul Cummings:

    info@alamedagop.org

    Thank You For Your Support,

    The Alameda County Constitutional Republicans

    P.S. NO BAIL-OUT!!!