Pay-To-Play In North Dakota

Who are those Rhode Island and South Carolina lawyers funding Heitkamp’s campaign?  They’re the ones who took millions from North Dakota when Heidi was Attorney General.

Heitkamp hired Jack McConnell, who has been accused before of pay-to-play scandals by The Wall Street Journal, to help negotiate the Master Settlement Agreement where tobacco companies would have to pay billions.  McConnell admitted years later to collecting as much as $70 million in fees that are still being paid.  McConnell has since been steering thousands of dollars to Heitkamp’s campaigns for the last decade through his law firm; a law firm located in Rhode Island and South Carolina.

 

Heitkamp And Jack McConnell Were Both Deeply Involved In The 1998 Master Settlement Agreement:

Heitkamp Was One Of Only Seven Attorneys General At The National Press Club Announcing The Tobacco Master Settlement Agreement. “MEDIA BRIEFING WITH ATTORNEYS GENERAL FROM SEVEN STATES, SUBJECT: NEW TOBACCO AGREEMENT,  PARTICIPANTS: WASHINGTON ATTORNEY GENERAL CHRISTINE GREGOIRE, NEW YORK ATTORNEY GENERAL DENNIS VACCO, NORTH DAKOTA ATTORNEY GENERAL HEIDI HEITKAMP, PENNSYLVANIA ATTORNEY GENERAL MIKE FISHER, OKLOHAMA ATTORNEY GENERAL DREW EDMONDSON, COLORADO ATTORNEY GENERAL GALE NORTON, IOWA ATTORNEY GENERAL TOM MILLER, NATIONAL PRESS CLUB, WASHINGTON, DC.” (“Tobacco Settlement News Conference,” http://www.c-spanvideo.org/, 11/16/98)

Heitkamp Was “A Big Player” In Negotiating The Master Settlement Agreement. DENNIS VACCO, Attorney General, New York: “And one of those people representing, as we referred to the states in the negotiating team as a ‘small state,’ a small state but a big voice and a big player in this — Attorney General Heidi Heitkamp from North Dakota.” (“Tobacco Settlement News Conference,” http://www.c-spanvideo.org/, 11/16/98)

Washington Attorney General Christine Gregoire Singled Out McConnell For His Help Negotiating The Case. CHRISTINE GREGOIRE, Attorney General, Washington: “And with him, Jack McConnell (sp) of the Ness, Motley firm. Thank you, Jack, for a tremendous amount of time and effort, all- nighters that we spent with you. We thank you.” (“Tobacco Settlement News Conference,” http://www.c-spanvideo.org/, 11/16/98)

Heitkamp Hired Jack McConnell In 1999 To Assist North Dakota In Suing Tobacco Companies, And McConnell Was Paid Millions For His Services:

Heitkamp, Serving As North Dakota’s Attorney General, Selected A Rhode Island Lawyer, Jack McConnell, To Run North Dakota’s Lawsuit Against Tobacco Companies. “In Washington DC, the Senate voted today to block a Republican filibuster on the judicial nomination proceedings of Jack McConnell to the US District Court of Rhode Island, while here in Bismarck, former Attorney General Heidi Heitkamp is refusing to answer questions on the subject. Heitkamp hired McConnell in 1999 to serve as a legal consultant for North Dakota in the tobacco case, and consequently received large campaign contributions to her 2000 gubernatorial run.” (Kate Bommarito, “Heitkamp Silent On McConnell ‘Pay-for-Play’ Contributions,” Plains Daily, http://plainsdaily.com/, 5/4/11)

  • McConnell Was Appointed By Heitkamp As A “Special Assistant Attorney General” To Handle The Tobacco Master Settlement Agreements. “It has come to my attention that your legal services to the State of North Dakota have concluded and that you no longer require an appointment as a special assistant attorney general to assist the North Dakota Office of Attorney General in the implementation and enforcement of the terms of the tobacco Master Settlement Agreement and the Smokeless Tobacco Master Settlement Agreement.” (Letter To John J. McConnell, Office Of The Attorney General, http://northdakota.areavoices.com/, 2/13/09)

McConnell Admitted To Being Compensated By The Law Firm For His Work On The Lawsuit As Much As $3 Million Per Year Through 2024. “My prior firm (MRRM, P.A.) received attorney fees pursuant to the Master Settlement Agreement for its work on tobacco litigation.  As a result of my work for the firm, I have receved between $2-3 million dollars [sic] per year since 1999.  I anticipate receiving future deferred compensation for work performed and completed for the firm on tobacco litigation of approximately $2.5 million to $3.1 million each year through 2024.” (John J. McConnell, Jr., “Letter To Senator Jeff Sessions,” http://www.judicialwatch.org/, 7/7/10)

  • Heitkamp Claimed That McConnell Did Not Receive Any Compensation. “On Wednesday, Heitkamp provided the pages of the master settlement agreement that refer to ‘Designation of Outside Counsel.’ While other states have outside lawyers named to receive compensation for representation, next to North Dakota is the word ‘none.’ ‘Jack McConnell didn’t receive a dime for any legal work that he ever did for the state of North Dakota,’ Heitkamp said. ‘He served without compensation.’” (“Heitkamp: ‘Pay To Play’ Claims False,” Fargo-Moorehead, https://secure.forumcomm.com/, 5/5/11)

Heitkamp Has Taken $50,000 (11%) Of Her Contributions From Motley Rice Lawyers And Associated PACs:

Heitkamp Has Raised $10,000 From The Trial Lawyers Association PAC, American Association For Justice Political Action Committee (AAJ PAC) On December 21, 2011. (FEC Disclosure Database, http://query.nictusa.com/, Accessed 2/7/12)

  • Ronald Motley, Founding Member Of Motley Rice, Sits On The Board Of Governors For AAJ PAC. (“AAJ Board Of Governors,” American Association For Justice, http://www.justice.org/, Accessed 2/7/12)

Employees For Motley Rice Contributed $40,000 To Heitkamp’s Campaign, All On December 21, 2011. (FEC Disclosure, Heidi For Senate, http://query.nictusa.com/, Filed 2/2/12)

McConnell Directed $73,000 To Heitkamp’s 2000 Gubernatorial Campaign, And Has Been Accused Of Pioneering Pay-To-Play Schemes:

After Being Selected, McConnell Directed $73,000 In Contributions To Heitkamp From Himself And His Law Firm. “In North Dakota, Mr. McConnell and his wife contributed $30,000 to the gubernatorial Campaign of the attorney general who appointed him as ‘special assistant attorney general for purposes of representing that state in tobacco litigation.’ Mr. McConnell and his law firm contributed an additional $73,000 to that same attorney general’s state political party during the campaign cycle, making them the number-four campaign contributor to that organization.” (Senator John Cornyn, “Cornyn Outlines Objections To Nomination Of Jack Mcconnell,” Press Release, http://cornyn.senate.gov/, 5/3/11)

McConnell Was Accused Of Pay To Play Scandals In 2009 By The Wall Street Journal Over Arrangements With Public Officials. “Mr. McConnell and his firm helped pioneer the practice of soliciting public officials to bring lawsuits in which the private lawyers are paid a percentage of any judgment or settlement. The law firms front the costs of litigation and are compensated if the suit is successful. But such contingency-fee arrangements inevitably raise questions of pay to play.” (Editorial, “Fools For Motley,” Wall Street Journal, http://online.wsj.com/, 4/24/09)

  • In 1993, Heitkamp Said That State Ethics Laws Were Adequate But That It was Important To Avoid “Any Kind Of Appearance Of Impropriety.” “Additionally, Heitkamp said ethics is an issue coming to the fore in state government. She believes the state’s government ethics laws are adequate… ‘This becomes more complicated as we see government moving more into public-private partnerships,’ she said. ‘It’s important that the individuals in government understand the expectation of avoiding any kind of appearance of impropriety.’” (Deneen Gilmour, Bismarck Tribune, 6/26/93)

Senators Whitehouse And Reed (D’s-RI) Recommended McConnell For The Federal Bench. “U.S. Senators recommend people for the federal bench all the time. So when trial attorney Jack McConnell was tapped last week for a seat on the U.S. District Court in Rhode Island by Senators Jack Reed and Sheldon Whitehouse, the announcement received much less scrutiny than it deserves.” (Editorial, “Fools For Motley,” Wall Street Journal, http://online.wsj.com/, 4/24/09)

Heitkamp’s Former Aid Took A Job At McConnell’s Firm In Rhode Island:

“One Of Heitkamp’s Top Deputies, Laurie Loveland, Subsequently Took A Job In Ness Motley’s Office In Providence, R.I.”  “Heitkamp’s supporters also include a sprinkling of attorneys who have sued tobacco companies. Six attorneys from one South Carolina firm, Ness Motley, have donated a total of $38,000, her disclosure form shows. Ness Motley helped to negotiate settlements of state lawsuits against the nation’s largest tobacco companies. The firm did not represent North Dakota, although Heitkamp worked closely with some of its attorneys during the process. The negotiations resulted in a settlement involving 46 states, including North Dakota, that is expected to bring the state more than $800 million over 25 years. One of Heitkamp’s top deputies, Laurie Loveland, subsequently took a job in Ness Motley’s office in Providence, R.I.” (Dale Wetzel, “Heitkamp Filings Show She’s Raised $1 Million For Gov Race,” Associated Press, 10/27/00)

Jack McConnell Is A Partner At Ness Motely (Now Motely Rice). “‘At Motley Rice LLC, we will build on the wonderful tradition we established under Ness Motley winning justice for Rhode Islanders and Americans harmed by the wrongdoing of others,’ said Motley Rice LLC senior member Jack McConnell, who directs the firm’s Providence office.” (Motley Rice, “Motley Rice LLC Launched By Ness Motley Attorneys, Hundreds Of Staff; Remains One Of Nation’s, Providence’s Largest Plaintiffs’ Firm; Known For Leadership In Asbestos, Tobacco, Lead Paint, Terrorism And Other Complex Mass Tort Litigation,” Press Release, http://goliath.ecnext.com/, 4/28/03)