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As we noted previously, Senator Kerry accepted contributions from a company (Miami-based Metalbanc) that was indicted for violating drug money laundering and asset forfeiture laws. If that isn't bad enough, it came at a time when Kerry chaired a Senate subcommittee...investigating companies that violated money laundering laws!. AP reported that the Kerry "only" received $1,000 in 1987, but opensecrets.org shows that Kerry received donations throughout the 1990s from this company and I discovered that he continues to receive contributions from the company founder even today.

Moreover, the charges against the company and its executives were dropped!

Anyone in business will tell you that "people go to jail, not companies". Where are the people behind Metalbanc and why aren't they in jail? It turns out it is because they had ties to Democrats in high places.

The Boston connection, the Miami connection, politics and sweetheart deals for campaign contributors

Let's start with the company, "Metalbanc". Metalbanc is (was) a subsidiary of an entertainment company that started out life as "Jillian's Billiard Club" in Boston and was founded by Steve Foster in 1979. Foster originally started his business life operating a roller skating rink called Spinoff. Metalbanc traded in precious metals and commodities but was forced to close down due to violations of Federal drug and racketeering laws. (Jillian's would later move to Kentucky.)

From the "Entertainment Specialty Projects (ESP)" website:

Jillian’s is Born

So, in July of 1988 the first Jillian’s Billiard Club opened in Boston. A second location opened in Seattle in 1990 and, as of press time, the formerly public, now privately held company says it will have a total of 21 locations in Arizona; California; Florida; Illinois; Indiana; Louisville, Kentucky; Boston, Massachusetts; Maryland; Minnesota; Charlotte, North Carolina; New Hampshire; Columbus, Ohio; Oregon; Pennsylvania; South Carolina; Texas; Washington and Wisconsin.

...

The Company History

Exactly who, and exactly what is Jillian’s? A cursory peek at the company’s history led researchers into a complex mosaic of name changes, business shifts and financial difficulties dating all the way back to its inception and continuing until the company was delisted by NASDAQ and taken private in a deal with J.W. Childs Equity Partners. The following information was obtained by E.S.P. from a variety of public sources.

Jillian’s Entertainment Corp., a Florida company, was traded on the NASDAQ exchange as QBAL, with a company name change in 1990 to Metalbanc Corp. followed by a name change in 1991 to Carom Capital Corp. From 1983 to March 1989, the company conducted business as a wholesale dealer of fine gold and pure silver in the form of bullion and granules. The company terminated its precious metals division with the sale of assets.

Trouble in Paradise

In April 1992, the United States Attorney executed a settlement agreement relating to the company’s discontinued precious metal operations. Although the company denied wrongdoing, it agreed to a settlement on the grounds that it may have unknowingly received property subject to forfeiture. The settlement entailed issuing 100,000 shares of common stock in the new company and a secured promissory note in the amount of $250,000 payable over eight years starting April 1993, with the note secured by 200,000 shares of the company’s common stock. A March 1994, amendment to the promissory note scheduled the company to make monthly installments and a balloon payment of $127,792 in April 1998.

From the March, 1989 sale of assets until April 1990 when the company acquired an interest in a billiard club, the company’s primary business was conducted through its wholly owned subsidiary Dixie Run Corporation, a company involved in purchasing and developing raw land suitable for subdivision or resale to builders and developers of luxury residential homes. In June 1990, the board decided to discontinue operations of Dixie Run.

So we have the New England connection: Steve Foster and a chain of roller-rinks, billiard parlors and a precious metals trading firm. And what is Steve Foster's relationship with John Kerry?

Why, he's a big Kerry contributor! FEC contribution records show him making two big contributions as recently as last summer:

		FOSTER, STEVEN
		BEVERLY HILLS, CA 90210
		JILLIAN'S ENTERTAINMENT/CEO
		
		KERRY, JOHN F
		VIA JOHN KERRY FOR PRESIDENT INC.
		03/31/2003 1000.00 23990737700
		06/30/2003 1000.00 23991403866
		

The Miami connection: Howard Glicken. Or, how to get out of drug laundering and campaign contribution violations with big contributions to the Democrats!

Despite a tainted past in business, Glicken was hired on to run Metalbanc. Why an entertainment firm in New England wanted a Miami-based precious metals trading firm in Miami remains an unanswered question. Perhaps Mr. Foster can enlighten us about that business strategy decision. What we do know is that Metalbanc ran afoul of the nation's War on Drugs and Glicken ran afoul of our campaign finance laws.

From Committee on Government Reform and Oversight, Campaign Finance Investigation and Related Matters (interim report):

Howard M. Glicken was born on November 16, 1943, in Miami. He serves as the Chairman of the Board of the Americas Group and is the former chairman of the Commonwealth Group, the College Democrats of America, and Jillian’s Entertainment Corporation. He was fired from a Miami bank in 1983 after accepting a commission that his boss considered to be a kickback. Mr. Glicken also once headed MetalBanc Corp., a precious-metals trading company indicted in a case involving laundering drug money. The charges were dropped, but in a settlement agreement Glicken created a subsidiary that agreed to pay the government $375,000. Mr. Glicken was never charged but testified under a grant of limited immunity at the trial of his former partner, Harry Aaron Falk. Mr. Falk is currently serving a 27-year sentence. Committee investigators learned that another partner indicted in the MetalBanc investigation, Duvan Arboleda, was murdered in Colombia in early 1998.

And from that report, details of Glicken's ties to the Clinton-Gore administration and contributions to a Democrat Senate campaign committee.

Mr. Glicken has known Vice President Gore since 1987, serving as the Florida Finance Chairman during then Senator Gore’s 1988 Presidential campaign. The license plates on Glicken’s two Jaguars were, at one point, "Gore 1" and "Gore 2." He is known to show photos of a $6,000 pool table that he arranged to have donated to Vice President Gore’s home. In addition, his son, Monte Glicken, once worked for Mr. Gore during his tenure as Vice President. According to a newspaper article, Glicken "frequently advises the Vice President on ways to attract young people into the party." A request for a West Wing Tour made by Eric Sildon at the DNC noted such strong ties to Vice President Gore: "Howard is one of our strongest supporters and has been a close friend of the Vice President’s for many, many years."

Over the years, Glicken has developed an expertise in Latin American business and reportedly counsels the Vice President on Latin American affairs. He testified before a July 1994 joint House International Relations Committee hearing on trade and the Western Hemisphere. Mr. Glicken was also hosted in Argentina by Ambassador James Cheek and twice stayed as a guest of U.S. Ambassador to Chile Gabriel Guerra Mondragon at the official residence. Mr. Glicken even accompanied the late Commerce Secretary Ron Brown on a 1994 export promotion tour through Latin America. His mere presence troubled some delegation members: Mr. Glicken’s "wheeling and dealing" reportedly "evoked squeamishness among a number of officials at Commerce." His inclusion thus raised the specter of political considerations possibly affecting Commerce Department decision-making. Despite such controversy, Glicken prepared a memo for the Vice President upon returning from the trip. This memo appeared to raise some concerns by staff members based on handwritten notes written on the letter’s face.

The Miami businessman has also been considered for administration appointments. Mr. Glicken’s nomination to the President’s Export Council was approved by President Clinton in a March 1994 memo. After additional FBI information on Glicken arrived, however, his candidacy was withdrawn. No reason was listed for the application’s withdrawal. Mr. Glicken was also considered a "strong candidate" and a "good fit" for the Delegation to the Inauguration of the new Colombian President. The recommendation memo noted that "Howard is on the Executive Board . . . . of the Maimi (sic) Coalition for a Drug Free Community - a famous international drug interdiction and prevention program. He served in this organization with Janet Reno until she was appointed Attorney General." Mr. Glicken was also considered a priority for participation in the Miami Hemispheric Conference, according to a DNC memo.

The report notes that Glicken was involved in Senate Campaign Contributions and then (after trying to field an immunity deal) was curiously dropped from prosecution by the Clinton era FEC:

Mr. Kramer’s secretary, Terri Bradley, made a $20,000 contribution to the DSCC ("Democratic Senatorial Campaign Committee") after someone unknown to Bradley — later revealed to be Glicken — approached Kramer. According to Staff Attorney Rodriguez, in testimony before this Committee and in documents produced by the FEC, Bradley overheard a conversation between Kramer and another individual who asked Kramer if there was "anyone else who could make the contribution in your place." The solicitor promised that the "requested contribution would make Mr. Kramer a member of the ‘inner circle’ with various accompanying perks. Bradley told the FEC that she would divulge the name of the Democratic fundraiser suggesting the illegal scheme in exchange for immunity from prosecution. The Committee attempted to interview Bradley but, as previously noted, she asserted her Fifth Amendment rights before the Committee. The plea agreement Glicken entered into focused on Bradley’s DSCC contribution — the questionable contribution referenced along with the "prominent fundraiser" language that resulted in tremendous public criticism and which played a significant part in the Committee’s March 31, 1998, hearing.

Despite all of the controversy surrounding this Democratic Party insider, the FEC decided in December 1997 not to pursue a case against Glicken. This decision was made in the face of strong evidence demonstrating that Glicken had knowingly solicited an illegal contribution from a German national through a conduit straw donor. In an unusual announcement, the FEC cited "Mr. Glicken’s high profile as a prominent Democratic fundraiser" and "potential fundraising involvement in support of Vice President Gore’s expected presidential campaign" as reasons not to pursue a case against Glicken. During testimony before this Committee, the FEC General Counsel stated that his office first learned Glicken’s name only a few months before the statute of limitations governing the case would expire. Yet, as previously noted, the FEC was first provided with information by Kramer himself that someone within the Democratic Party knowingly solicited the illegal contribution as early as December 1994.

When asked during the Committee’s March 1998 hearing why the FEC did not pursue a case against Glicken more aggressively, FEC General Counsel Lawrence Noble stated:

We did not pursue the investigation of Mr. Glicken because it was—most of the activity at issue was 1993 activity; some was 1994. We have a 5-year statute of limitations. Mr. Glicken’s name came up late in the process. We have not found reason to believe against Mr. Glicken. We would have had to start from the beginning with Mr. Glicken. The statute of limitations on the main part of a solicitation runs this April.

* * * *

What we were interested in with Mr. Glicken was the suggestion that he may have suggested to somebody that they make a contribution in the name of another. And that took it up to another level which is why we held on to that part of the case, thinking that we might be able to do something about it. But by the time that—that was in the DSCC information. We did not find Mr. Glicken’s name until July 1997, and that particular contribution, where there was a suggestion that it was a contribution in the name of another, or solicited as a contribution in the name of another, the statute of limitations would have run at the end of April of this year.

It should be noted that the FEC did not "find Mr. Glicken’s name until July 1997" because, in actuality, it did not send a subpoena to the DSCC until June 10, 1997. Documents produced in response to this subpoena revealed that Glicken had solicited the Bradley contribution. No explanation given by the commission has adequately addressed why the FEC waited until two and a half years after receiving Kramer’s affidavit (which highlighted the DSCC contribution) to send interrogatories to the DSCC. It is thus the Committee’s opinion that this explanation — given the amount of money involved, the fact that the case was brought sua sponte, and the involvement of two of the most prominent Democratic fundraisers — is simply incomprehensible.

The House report goes into much greater detail about the poetical machinations surrounding Glicken, his campaign contributions, and the role of Democrat politicians in obtaining his release from prosecution, despite his guilty plea!

Taking into account the weight of the evidence against Glicken, it appears as if the Miami businessman entered into what potentially could be an overly favorable plea agreement. Mr. Glicken’s role in soliciting contributions from other Florida-based campaign contributors on behalf of the DNC and other Democratic causes has yet to be fully investigated by this Committee. However, the Committee has uncovered evidence showing that Glicken also solicited contributions from Neal Harrington and Calvin Grigsby’s company, Fiscal Funding — contributions which led to the indictment of both Harrington and Grigsby, along with Carmen Lunetta, in the June 1998 Port of Miami conduit contribution scandal.

...

Finally, the FEC made a public statement in which it seemingly admitted that it was not pursuing a case against Glicken because of his prominence and strong ties with Vice President Gore.

opensecrets.org details the FEC decision not to prosecute Glicken

The House hearing transcript also details the reasons for Glicken escaping justice:

Thomas Kramer is a German citizen who lives in Florida. He made over $380,000 in contributions to both Democrats and Republicans, despite the fact that he was not eligible to contribute. The FEC handed out over $450,000 in fines in this case—over $300,000 to Mr. Kramer himself. Yet one individual who played a very prominent role in this matter was not fined. He was not even investigated. That individual is Howard Glicken, a prominent Democratic fundraiser in Florida. When it recommended not pursuing the allegations against Mr. Glicken, the FEC staff specifically cited his close ties to Vice President Gore.

(Note: this website hosts a copy of the House report on the 1996 campaign finance scandal, which used to be available here.)

So, John Kerry (and other Democrats!) accepted illegal campaign contributions from a drug-laundering shady "businessman" and then help him get out of indictments for violations of drug money laundering, asset forfeiture and campaign contribution violations. John Kerry has continued to accept contributions from the founder of the company that was "let off" even though their executive violated campaign finance laws and the company paid monetary damages to settle violations of drug laws.

I'm sure Mr. Foster and Mr. Glicken are saying "America, what a country!"

What does John Kerry have to say about his involvement? What did John Kerry know and when did he know it? We know that Howard Glicken, associated with Jillian's, was found to be in violation of campaign finance laws and one of the groups he funneled money to was the Democrat Senate campaign. John Kerry was involved in the Senate hearings on campaign finance reform and received money from both Glicken (via Metalbanc) and Foster, the CEO of Jillian's. What role did he play in the lenient treatment of Metalbanc and Glicken? Is it a policy of John Kerry to give special treatment to campaign contributors, even when they have broken the law?

The nation wants to know!

Kerry accepted contributions from a company (Miami-based Metalbanc) that was indicted for violating drug money laundering and asset forfeiture laws

Charges against the company and its executives were dropped

Despite a tainted past in business, Glicken was hired on to run Metalbanc.