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Thursday, May 23, 2013, 8:13 p.m.
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University of Arkansas opens new Little Rock office May 22, 2013 at 4:18 p.m.

"University of Arkansas" alone is unclear in non-sports articles; is it UA-Fayetteville (as in sports articles) or the UA System (its legal definition)? I assume this means Fayetteville (the System shouldn't need an office downtown when it has the Cammack Campus in the Heights), but the article should be clearer.

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Broker tied to Shoffner resigns May 22, 2013 at 3:26 p.m.

@map51 & Carville: Unless a prosecutor can find state charges to throw at him (rather doubtful), I think this and possible sanctions by the Securities Department and/or FINRA is the worst he'll get. (Either ASD or FINRA can pretty much assure he won't get another job in the securities industry, if they so choose.) It's clear from the complaint that the FBI gave him immunity from Federal prosecution, and the way Federal law is written going after him would have been more difficult (mail and/or wire fraud) than going after Shoffner (only SHE can be charged with extortion under the Hobbs Act).

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Beebe: Working quickly to pick new Arkansas treasurer May 22, 2013 at 3:18 p.m.

Not to mention, of course, that she's a good case study for strengthening the state Whistle-Blower Act. I'm not sure it applied to her when she tried to invoke it at the Joint Audit hearing; I must assume Shoffner had too much pressure on her by then to fire her. (Generally, Arkansas constitutional officers can hire & fire absolutely at will; even the minimal protections that most state employees have don't apply.)

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Beebe: Working quickly to pick new Arkansas treasurer May 22, 2013 at 3:10 p.m.

Gov. Beebe, unless Autumn Sanson now has political ambitions I don't think you can do better than her to take care of the office till 2015. If you read the complaint carefully and compare it to public reports, it's clear she reported her own boss to the FBI. She clearly put the people's interests first, even at the risk of her own job; she should get the promotion till the next politician arrives in January 2015. (I have a funny feeling both Democrats and Republicans will agree.)

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Arkansas treasurer Shoffner resigns amid extortion charges May 21, 2013 at 7:48 p.m.

@LR1955: Read the complaint; Shoffner clearly initiated the payoffs.
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@arta: The firm has been identified in other articles: St. Bernard Financial Services. Its owner Robert Keenan has denied making any payments (even as a poster on this very site), though I believe they were cited by the state Securities Department sometime last year. Since the broker (Steele Stephens) did business with Shoffner before joining St. Bernard, it's likely he made the payments (and has immunity).

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GOP House leader calls for Shoffner's removal May 21, 2013 at 7:41 p.m.

@GiveUsLiberty: Given the Federal laws involved, going after the broker would have made the case MUCH harder to prosecute. The Hobbs Act, under which Shoffner was charged, applies only to those RECEIVING extortion money, NOT those paying it. If the Feds had to go after him, they'd have to prove mail or wire fraud -- not just extortion.
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@NoUserName: State charges are still an option (the FBI can't hand out immunity from that), but Arkansas anti-corruption laws are extremely weak; Steve Clark's conviction was under a novel application of the generic theft-of-property statute. They'll also have to decide which county's prosecutor gets a crack at him -- most likely either Pope (his office) or Pulaski (treasurer's office); Jackson (Shoffner's home) is possible but unlikely as his main trip there was part of the FBI sting.

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Complaint: Shoffner took multiple $6,000 payments May 20, 2013 at 8:14 p.m.

Of course, I'm sure the GOP is rounding up its own names to run in 2014. I'm not sure if Cord Rapert is a Republican, but if he is he'll probably run; if not Jason Rapert may be eyeing the office. And there's a lot of GOP women who could run, term-limited or not: Cecile Bledsoe (popular in NW), Prissy Hickerson (brought I-49 to our side of Texarkana as both highway commissioner & representative), Jane English, Missy Irvin...

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Complaint: Shoffner took multiple $6,000 payments May 20, 2013 at 7:57 p.m.

@DeeMacLady: I almost put this in my prior comment, but don't be surprised if Autumn Sanson is at the top of Gov. Beebe's list to finish Shoffner's term. If Shoffner resigns, Gov. Beebe will name her replacement; but under the Constitution that appointee cannot run for a full term in 2014. (High-level career employees, like Sanson, are often given those appointments to maintain office continuity; politicians seldom get them as they don't wanna be shut out of the election.) Though he's a lame duck now, Gov. Beebe would still gain brownie points he'll need in the 2014 fiscal session if he appoints Sanson.
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As far as your hint, I wouldn't be surprised if one or more term-limited female legislators, especially Joyce Elliott, runs for treasurer in 2014. In the last 50 years (since Nancy Hall in January 1963), only one man (Gus Wingfield) has served in that office; it is clearly open to women. It wouldn't be a huge stretch for an African-American woman to run, especially one as high-profile as Elliott.

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Complaint: Shoffner took multiple $6,000 payments May 20, 2013 at 7:35 p.m.

@Barich & NoUserName: I see now the immunity given to the broker. Here's an apparent key (comparing the complaint to names listed in this morning's article):
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* CHS1 (broker, given immunity) = Steele Stephens. Probably *not* Robert Keenan, not only because CHS1 is identified as a broker but also because Keenan still denies making payments even though CHS1 has immunity; IMO Keenan's probably telling the truth. (Stephens was selling bonds to the Treasury even before he joined Keenan's firm.)
* CHS2 (current treasurer's employee) = Autumn Sanson. Certain key facts line up (i.e., confronting Shoffner over the shift in bond business); since the investigation began when CHS2 contacted the FBI in January 2012, that explains Sanson's Whistle-Blower Act request at the Legislative Joint Auditing Committee hearing.
* CHS3 (another broker) = Could be any competing broker (doesn't really matter who).
* CW1 (former treasurer's employee) = could be either Cord Rapert or Karla Shepard. CW1 wasn't interviewed by the FBI till April 2012, but the details suggest CW1 still worked for Shoffner in 2011 (like Shepard). The only other mention of CW1 involves an undated "watch party" (possibly during the 2010 campaign, as Rapert admits he was interviewed about).

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Complaint: Shoffner took multiple $6,000 payments May 20, 2013 at 2:05 p.m.

@Barich: Under the Hobbs Act, the PAYOR of extortion money (St. Bernard, or if Keenan is right someone else -- perhaps the individual broker?) is NOT a criminal; only the PAYEE (Shoffner) is.
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@RapidesRC: The Feds have taken the lead in public-corruption cases nationwide since the 1970's because they are insulated from local politics and Federal criminal penalties are usually more severe than state ones. (It's well settled that state business invokes Federal interstate-commerce jurisdiction by definition.) Besides, Arkansas laws in this field have some very gaping holes *and* only LOCAL prosecutors, NOT the Attorney General, can bring criminal cases. (For example, when Steve Clark was caught the local prosecutor had to twist the generic "theft of property" statute to charge & successfully convict him.) Dustin McDaniel (affair or not) had NO reason to get involved when he knew the U.S. Attorney would be more thorough AND had a better chance of convicting Shoffner.
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I was sympathetic to Shoffner early on, but MenLR2 is absolutely right: Assuming the facts in the complaint are true (she IS innocent until PROVEN guilty, but the FBI doesn't clown around), she's toast. You simply DO NOT accept cash payments under the table for steering public business to ANYONE, period.

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