I sit on my porch this morning sipping a cup of coffee, wondering whatever happened with the much-publicized $80,000 nursing-home industry executive David L. Norsworthy reportedly wired into the commercial bank account of now-former state Sen. Jake Files of Fort Smith.
Seems reasonable an inexplicable exchange of that much money between a nursing home guru and an elected official convicted of financial crimes should be sufficient to catch the attention of any diligent investigator and prosecutor.
I remember writing about Nors-worthy's mysterious 2014 deposit sometime in 2017. But apparently the matter toppled into a black hole somewhere along the line. Sebastian County Prosecutor Daniel Shue hasn't forgotten. He sent a letter in April to the U.S. Attorney for Arkansas' Western District, asking if that office or any others were following up on the mysterious money transfer.
As of my deadline for this column, Shue hadn't received a reply. I suppose it's really not that surprising, since we know the FBI doesn't comment. Concerned about intruding into a possible federal case, Shue is blocked from pursuing his own state investigation until he knows what the feds are, or aren't, doing.
Reporter John Lovett with the Southwest Times Record in Fort Smith said Shue sent his letter on April 10 to Duane "DAK" Kees, the newly appointed U.S. Attorney, inquiring specifically whether Norsworthy's wire transfer was made "in violation of federal law."
I found it interesting how it was the newspaper that in May 2017 found the wire transfer contained in public court documents related to the discovery process involving a civil lawsuit filed against Files' defunct FFH Construction. Good job for the paper and the First Amendment.
Files has been busy the past year, having resigned his Senate seat and pleading guilty in January and facing sentencing on June 18 for bank and wire fraud and money laundering. His plea came in U.S. District Court involving misuse of state General Improvement Fund grants related to the now defunct River Valley Sports Complex, Lovell reported.
A lot of Fort Smith residents' hopes were dashed when that scam was revealed. Since Files' sentence under federal guidelines will be determined to some degree on the financial amount involved, Shue wants to know if anything has been discovered to link Norsworthy's deposit to circumstances surrounding Files' conviction, or if those funds are a separate matter. Shue, in his letter, acquired via Freedom of Information Act request, wondered if it was "part of the conduct for which [Files] will be sentenced."
Last May, Files would not comment on Norsworthy's wired thousands, other than to provide a protective order noting that documents that have been or may be designated as "confidential" were to be clearly stamped as such, which the file in the unrelated civil case that disclosed the $80,000 transfer was not.
Also interesting to me is that Nors-worthy, a board member of Arkansas Health Care Association and advocate for Issue One that would limit the amount nursing-home owners and others would have to pay in civil cases, has never publicly explained reasons behind the transfer in his name.
Lovett reported the money was deposited into Files' FFH Construction's First National Bank account a week after Senate Joint Resolution 1 was filed to amend the state Constitution regarding civil claims and court procedures. That measure died in committee.
However, a second attempt to limit civil suits was revived with a petition. It failed to reach a public vote as Issue 4 in 2016 when the state Supreme Court removed it from the ballot. Most recently, yet another effort through Senate Joint Resolution 8, of which Files was a co-sponsor, will be voted on in November as Issue 1. State Rep. Bob Ballinger, a state Senate candidate, was also a co-sponsor.
So there you have all I know at this point. A convicted senator who carried water for a resolution beneficial to the nursing-home industry reportedly received $80,000 from a generous leader in that industry with no public explanations from either man. I hope we the public discover more about that mysterious transaction in days to come.
By the way, by way of light divergence and as I've written previously, I'm no supporter of Issue 1, which I also like to call the "Price on Life" amendment to our Constitution. Among other things, passing the amendment would place a one-size-fits-all price tag on life, quadriplegia, and brain damage. I and many others see the proposed amendment as effectively a legislative takeover of the judicial branch, thereby eliminating needed checks and balances inscribed into our Arkansas Constitution since 1874.
I believe juries and judges should never be usurped by heavily lobbied politicians in awarding fair judgments and justifiable compensation for injuries inflicted upon the most defenseless among us. There can never be a limited price placed on any life in a moral society.
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Mike Masterson is a longtime Arkansas journalist. Email him at mmasterson@arkansasonline.com.
Editorial on 05/06/2018