Morton: Sent Maggio donations to Baker

Nursing-home owner Michael Morton said under oath that contributions he made to political action committees that later helped finance Circuit Judge Michael Maggio's appeals-court campaign were mailed to former state Sen. Gilbert Baker's home in Conway.

During an interview with the Arkansas Ethics Commission, which was investigating contributions to Maggio, Morton showed the agency's staff a copy of a FedEx receipt showing the checks were delivered to Baker's house July 9, 2013, one day after the checks were dated.

The PAC checks were dated the same day that Maggio held a hearing on whether to reduce a Faulkner County jury's $5.2 million judgment from May 16 against a Morton-owned nursing home in a lawsuit filed over the 2008 death of patient Martha Bull, 76. Three days after the hearing, Maggio cut the sum to $1 million.

The agency released a report containing hundreds of pages of records from the investigation to the Arkansas Democrat-Gazette on Monday. Summaries of testimonies by eight people -- including Morton, Baker and Maggio -- comprise 46 of the hundreds of pages submitted to the commission's board members. Participants were not quoted directly.

In June, the Ethics Commission fined Maggio $750 for accepting contributions above state limits. The FBI and a state judicial commission are also investigating the contributions.

Maggio withdrew from the appeals-court race March 6 after published reports appeared about unrelated comments he had made anonymously online about a wide range of topics including women, divorce, sex and a confidential adoption case involving actress Charlize Theron. The Arkansas Supreme Court later stripped him of all of his cases in the 20th Judicial Circuit pending further notification.

Before the Ethics Commission, Morton testified that he "ran into Gilbert Baker and Linda Leigh Flanagin at Brave New Restaurant" in Little Rock and was asked "if he would support Judge Maggio if he ran for Court of Appeals and he said 'yes,'" the report states.

Morton reportedly said that at some point Baker called him, and Morton "said to fax him the names" of the PACs to which he should make the checks payable.

"He [Morton] wrote the checks out to the names on the fax for the amounts listed by each name. He did not give more or less than was suggested in the fax sent by Mr. Baker. ... When he wrote the checks, he thought the money would go to Judge Maggio," the report adds.

In March, Morton told the Democrat-Gazette that Flanagin, the sole employee of a consulting company Baker formed, was in the restaurant and asked him to support Maggio. Morton said he didn't know whether Baker was at the restaurant with Flanagin.

Baker told the newspaper in March that he was not there at the restaurant. Baker also said at the time that he had not even known about the conversation between Morton and Flanagin.

"I did not tell her to do that or instruct her to do that," Baker said then. He also said he had no discussions with Flanagin or Morton about giving to Maggio's campaign.

Baker did not return a phone message seeking comment Monday.

Baker, who was represented by former U.S. Attorney Bud Cummins during his testimony, told the Ethics Commission staff in June that he discussed "many candidates" with Morton, "would have asked him in general for Maggio support, but would not have solicited specific amounts from Morton until the judicial window [for fundraising] opened."

Morton testified that he had a conversation with Baker "when Judge Maggio got an opponent, which would have been the day before the end of the filing period."

"Gilbert Baker called and said they would possibly have to raise more money for Judge Maggio because he had drawn an opponent," the report describes Morton as adding.

In the report, Baker was noted as saying the PAC contributions "would not have been just for Maggio."

Baker told the Ethics Commission that there were concerns that changes in the law might limit or prohibit corporations from making political contributions, so he worked with Little Rock attorney Chris Stewart to create the PACs.

"He [Baker] said it is hard to say whose idea it was to start these PACs but said it was his idea," the report adds.

The Ethics Commission report also includes a summary of testimony by Clint Reed, who became Maggio's campaign consultant in mid-May 2013 after Reed said Baker had asked him whether he would help with the campaign. Reed and Maggio executed a contract on or about May 17.

Reed said it was his understanding that Baker was a fund-raiser for Maggio's campaign -- a statement supported by Baker's and Maggio's testimony -- and said "it was clear that Mr. Baker helped recruit Judge Maggio to run and made sure that he had the financial resources necessary."

Maggio, who also appeared before the commission staff, disputed that anyone had recruited him for the campaign. Baker also disputed Reed's statement.

Reed resigned from Maggio's campaign after contention surfaced, and he told the commission staff that he "did not feel that all the facts surrounding why he [Maggio] was running were out in the open," the report relates.

The report never states what those facts were.

Baker told the commission staff that he does not remember if or when he got the contributions for the PACS, specifically. He "does not know how they got to Chris Stewart. It could have been through him."

"When looking at Mr. Morton's FedEx record showing a delivery of the checks to Mr. Baker on July 9, Mr. Baker said he wasn't denying the receipt of the checks, but he receives the checks from Mr. Morton all the time, so one check or sets of checks would not be special, unusual, or of note to him.

"He did not deny he sent a fax to Mr. Morton, but he does not specifically remember sending any fax. He does not keep records, so he does not have a copy of the fax. ... He acknowledged he does not remember a lot of information," the report states.

Baker also said he knows he discussed "the multiple PAC idea" with Morton but does not remember specifically asking Morton for contributions. He would not deny he did so, either.

"There is no doubt in his mind that probably [Baker] did ask for money," the report states. "He asked Michael Morton to donate money all the time."

The report states Baker said he didn't know if he hired Stewart to form the PACs but said he raised money for Maggio's campaign, for the PACs and 28 other candidates on a volunteer basis.

Morton also said "he was not trying to buy a favorable ruling," the report states. "He was never asked to give money for Judge Maggio before the trial. He is not even certain Mr. Baker would have known about the trial. He has never given to Judge Maggio in the past."

Baker said he did not know about the case at the time.

Morton said he agreed the timing of the checks looks bad, the report states.

According to the commission staff report, Morton also said that he "does not donate to every judicial race, but he does have two nursing homes in Faulkner County. He has many [lawsuits] filed against him and his businesses.

"He gave the money then because that is when he was asked for money. He remembers the trial going on at the time, but to him, his donations had to do more with the previous motions" Maggio had ruled on in the lawsuit. "He ... felt that Judge Maggio was following the law."

State Desk on 07/29/2014

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