Some Tea Party members have written in asking that we not focus on morality, saying that jobs and the economy are more important. Others want to focus on national issues, turning off the Federal spending spigot, reclaiming our Constitutional rights, or stopping the encroachment of Federal laws. Understand that we are focusing on those issues, but first we must be able to have our bills heard in committee and get recorded votes if we are to pass laws, block Federal laws, or punish legislators that stand in our way. Laws are written by men. They are blocked by men. Sometimes one must stop and clear a path forward. Such is the task given to our group.
To remind you of why we need to expose the corrupt legislators, here are a couple of articles:
A correction in the story from last week
Last week we wrote that Representative Dan Sullivan's was term limited in 2012. That was incorrect, he is term limited in 2016. The confusion was caused by relying on a spreadsheet that had an error. Our apologises for the mistake, but the good news is that Tulsans can send that rascal back to private life in 2012.
Judicial Corruption Linked To Oklahoma Legislator
Politics is war, simply another way of determining who rules over whom. Like war, politics is usually brutal and ugly, vicious at times and boring at times, with the fates of many decided in unplanned short skirmishes or in extensively planned, protracted, bloody, drawn out campaigns. There are heroes and cowards, brilliant commanders and incompetent commanders, and some soldiers survive the carnage while others fall in battle, usually at the whim of fate. Mythology tells us of the Trojan War, an excellent story that combines both politics and war, and like all good stories we learn of life itself, how the mighty are brought down by their pride, greed, or arrogance.
I would tell you of a story right here in Oklahoma that rivals that of the Trojan War, a story that also contains a story of greed and arrogance, a story that focuses on one tiny aspect of the entire divorce, but a story that tells volumes of Representative Sullivan’s lack of integrity and honor. It centers around a divorce so some might say “So What?”, but it concerns the divorce of one of the most powerful men in the state, the Chairman of the Judiciary committee in charge of selecting judicial nominees, with powerful influence over the Insurance industry, whose campaign contributions come from Insurance companies, and whose main source of income comes from representing those same large insurance firms as a defense attorney.
By October 25th, 2007 reports of Representative Dan Sullivan’s philandering catches up with him. His wife of 23 years files for divorce, filing in Tulsa County. The long suffering wife files the standard temporary injunction prohibiting Representative Sullivan from disposing of marital assets, freezing all bank accounts, cash value life insurance plans, retirement and investment accounts. All property is to be frozen, no loans taken out using joint marital property as collateral, no increases in debt on current mortgages. As is customary, each individual has to report any unusual expenses over and above business as usual. Representative Sullivan is ordered to continue paying the bills, premiums on all insurance policies including life insurance policies. A clause in the injunction warns Representative Sullivan not to open or divert the mail addressed to his wife or family.
Quick, Hide the Money...
The same day Representative Sullivan is taken to task for depositing a $6,248.00 Oklahoma income tax refund check into their joint personal account then removing $5,800.00 the same day. The application for Temporary Relief asks that Representative Sullivan return half of the Oklahoma income tax refund to the joint personal account and to do the same with the Federal income tax refund when it arrives. But Representative Sullivan is just getting started…
Before three weeks is out evidence shows up that Representative Sullivan has diverted the mail for the entire family using a postal change of address card in violation of the court order. I guess being a legislator has its perks when it comes to obeying the judge or is it that Representative Sullivan believes that since he makes the laws, they do not apply to him? Or is Sullivan desperate? What is he doing so secretive that he can’t allow mail to be delivered to where his wife will see it? And more important, how is it that Representative Sullivan can be so bold?
One year later by the 10th of November 2008 the couple has worked out a settlement, splitting assets, laying out who pays what, providing for the former wife’s support while she re enters the work force after decades of being the political wife. Life insurance policies are ordered to remain in force with Representative Sullivan continuing to pay the premiums. There are retirement and investment accounts that need to be quantified and split, property to be sold, so each party is warned not to divert assets, continue upkeep and payment on all assets, and to notify in writing through their attorneys any unusual expense or change in accounts.
Finally on April 27th, 2009 the couple’s affairs are in order and a Consent Decree dissolving the marriage is signed and filed with the court. A consent decree is a mutually arrived split of assets and liabilities negotiated by the couple, not forced upon them by a judge, but entered into voluntarily. A clause in the consent decree states that both parties have disclosed all material facts and property before arriving at their division of property. At last both parties can put the stain of Representative Sullivan’s infidelity behind them and start new lives, the fighting and stress is over for good. Or not…..
We Don't Need No Stinking Judge!
Like in the story of the Trojan Horse, a tribute is set out in front of the defenses while the attacking force withdraws. In this case the tribute is a personal check from Representative Sullivan for settlement of one of the many issues in the divorce. But like the Trojan Horse, hidden within the body of the tribute is a nasty surprise.
By January of 2010 the former wife’s attorney is trying to tie up the loose ends of the divorce for his client, including clearing up major discrepancies in two North West Mutual life insurance policies cash value, after a settlement amount had been calculated by Representative Sullivan and his attorney.
Representative Sullivan had presented a check along with a written account of the values of two life insurance policies cash values, a check that was cashed by Representative Sullivan’s former wife on July 16th 2009. In early 2010 letters were sent by the former wife’s attorney to the insurance company that issued the life insurance policies requesting information on cash values on September 18th 2007 (when the couple separated) and April 27th 2009 (when the divorce was finalized).
The two policies were reported by the insurance company to have a cash value of $33,040.72 on September 18th 207, after $61,103.41 in loans against the policies were deducted, and $4,113.81 deducted for unpaid premiums were deducted. Indeed this is the exact same information found on the hand written accounting given to Representative Sullivan’s former wife along with the $16,520.36 personal check, half of the $33,040.72 cash value.
Like the Trojans of ancient times this tribute, this peace offering of $16,520.36, should have been thoroughly examined for it contained three problems:
1. The settlement was supposed to be for the value of the policies on April 27th 2009 when the divorce was finalized not 20 months earlier when the couple separated in September. The policy increases in value as the $1,500.00 monthly premiums are paid. The divorce decree clearly states that any gains in the policy are to be included in the split.
2. There were massive unpaid premiums charged against the policies. The court ordered Representative Sullivan to continue making the insurance premium payments. So why were unpaid premiums being charged against the policies?
3. Over $61,000.00 in loans had been taken out against the cash value of the policies. Why was Representative Sullivan borrowing money against their value in direct violation of the court order? When were the loans taken out and what or whom was the money spent on?
The Coverup Begins...
Representative Sullivan’s attorney swung into action immediately, filing a motion to quash any attempt at collecting any money due the former wife after the discovery of the fraud. A protective order was filed with the court asking that there be no investigation or discovery and that the insurance company not be allowed to tell the former wife’s attorney anything about the policies. What was Representative Sullivan’s defense for refusing to allow the truth to be found? That the former wife had already cashed the check given to her in settlement. Sometimes that works, but their divorce decree, agreed to by both parties by consent, stated that all material facts and property were to be disclosed, and it stated that the settlement included any gains on the property as of April 27th 2009.
Fraud can be a valid reason to reopen a settled issue. Will this carefully laid out trap, this Trojan Horse filled with surprises, be turned back upon the wicked and clever men that laid it in place?
So how much money was allegedly embezzled by Representative Sullivan?
In May of 2010, before Representative Sullivan’s attorney interfered, the insurance company responded with an April 27th 2009 valuation of the policies. The smaller of the two policies had increased to $8,806.56, up from $7,151.30. We seem to be missing the second page of the insurance company letter that laid out the details, how much in loans and unpaid premiums were charged back against the policy so the $1,655.26 difference could be more. But the larger of the two policies had increased in value to $28,236.06, up from $25,889.42, an increase of $2,346.64. But hold on, the unpaid premiums charged against the policy had increased to $10,797.20, up from $4,113.81, a $6,683.39 increase in unpaid premiums during a time when Representative Sullivan was ordered to continue paying the premiums!
And the outstanding loans against the larger of the two policies had increased to $73,554.68, up from $60,973.52! An increase of $12,581.16! And what did the initial court order tell both parties to do right after the divorce was filed? To refrain from decreasing the value of any asset including borrowing money against it! The tentative tally of allegedly embezzled funds is $7,151.30 for the increase in cash value (after the increased unpaid premiums and increased loans were subtracted), $6,683.39 increase in unpaid premiums on one of the policies, and $12,581.16 in increased loans against one of the policies. That is a total of $26,415.85 not counting what could be hidden in the smaller of the two policies.
That is a breathtaking sum for many Oklahomans, more than some of them make for a year’s hard work. No wonder Representative Sullivan and his amoral attorney is fighting so hard to prevent any facts from coming to light!
Representative Sullivan’s former wife’s attorney fought the motion to quash, an attempt by Representative Sullivan to deny discovery of the facts of the insurance policies loans and unpaid premiums, but to get anywhere the attorney needs additional information from the financial adviser/insurance agent. Without knowing exactly when the loans totaling $73,554.68 on the one policy were taken out we cannot determine the exact amount of allegedly embezzled funds.
We can go back three years to 2004 using an Arvest Bank financial statement given by and signed by Representative Sullivan. That financial statement shows the larger of the two insurance policies, showing the cash value to be $24,880.00 with no loans against the policy. A client summary of the insurance policies show a total of $58,534.68 in loans by May of 2007, a letter from the insurance company showed bounced payments (checks?) in March of 2007, another letter from the insurance company shows an increase in loans on the policy between January of 2008 and January 2009 of $5,446.07 (these letters can be found in the divorce file at the court house and they are unimpeachable proof that Sullivan violated the court order in 2008).
If one adds the $26,415.85 allegedly embezzled to the $60,973.52 in loans against the insurance policies from 2004 to 2007, the total is $87,389.37 in marital assets diverted. Why would a man capable of earning almost $600,000.00 per year, usually making over $140,000.00 in the years after 2006, suddenly begin borrowing money from his retirement investments?
Meet Melanie Pouncey, once a resident of the Riverside area of Representative Sullivan’s House District. Pouncey allegedly had a friend that once worked at one of Representative Sullivan’s law firms and reports suggest this is how Representative Sullivan came to know Ms. Pouncey. Reports suggest that Representative Sullivan began an affair with Ms. Pouncey as early as 2004 during the primary of one of Representative Sullivan’s elections, and then allegedly restarted the affair after Pouncey moved back to Oklahoma in 2006 from Atlanta Georgia to take a staff attorney position at the state capitol. Pouncey was assigned to Representative Sullivan’s Insurance Committee.
So all the pieces are in place, an old flame working with Representative Sullivan, away from home for most of the week for four months at a time, looks like a train wreck just waiting to happen. Put yourself in Representative Sullivan’s shoes, a mid life crisis of some sort causes him to lose his lucrative position at the law firm, cutting his income by nearly 75%, his heart problem continuing to cause anxiety leading to alleged disability insurance fraud that we exposed in the last newsletter, and at the heart of all of this could be the Helen of Troy that lead to Representative Sullivan’s downfall.
(editors note: Many images of the Trojan Horse were available but this is one of the few of the hindquarters of the horse, an appropriate picture if there ever was one)
In the story of the Trojan Horse, Queen Helen of Sparta, married to King Menelaus of Sparta, was seduced by Paris, a Trojan prince, leaving her husband, child, and family behind to move to Troy, leading to the Trojan war. Reports state that Ms. Pouncey had been left at the altar prior to 2004, unlike Helen who had dozens of suitors before marrying King Menelaus of Sparta. Did Pouncey reverse the roles of Paris and Helen in the Trojan Horse story, seducing married Representative Sullivan? Or was Representative Sullivan the seducer, acting the part of Paris, causing the political battle that will no doubt eventually bring him down and perhaps the Republican majority in the House of Representatives along with him?
Helen of Troy was married off for political gain; such was the custom of those times for powerful families. Is the former Ms. Pouncey, who remains the current wife of Representative Sullivan walking a similar path? After the affair became public knowledge, Pouncey was transferred to the State Insurance Department; Representative Sullivan’s main income comes from defending insurance companies from claims by insurance policy holders. Is the former Ms. Pouncey just another stepping stone for Representative Sullivan, is she serving in some nefarious capacity for Representative Sullivan? Or did Representative Sullivan move his new wife out of the way in case he meets the next Mrs. Sullivan?
So where does this epic story stand right now? For the last year it has been frozen in time by a Tulsa judge that refuses to rule on the motion to overturn the Motion to Quash filed by Representative Sullivan. Why? Some opine that the judge is bound by law and precedent to allow the discovery of the facts, indeed the consent decree states that both parties had the obligation to set out all facts and set forth all property for a fair settlement. Hiding or misrepresenting asset value could be fraud and fraud is usually a valid reason to re open a settled issue.
But the quandary the judge finds himself in is that if he does re open the issue and allow additional discovery from the financial adviser/insurance agent, he could expose one of the most powerful legislators in Oklahoma to serious legal charges, perhaps leading to a criminal charge, perhaps leading to disbarment, expulsion from his House position or even from the legislature itself, and most certainly the revocation of Representative Sullivan’s CLEET status.
That is right, in addition to being an attorney and a state legislator, Representative Sullivan is a reserve deputy. Between arguing the law, making the law, and upholding the law, exactly how could Representative Sullivan know that what he was doing was not okay?
If Representative Sullivan would lie and cheat his college-sweetheart and wife of 24 years should we not believe he would do the same to the great people of Oklahoma? We must learn our lessons from history or be doomed to make the same mistakes. The Spartan led allies were very clever to disguise their true intentions from the Trojans by leaving a peace-offering in order to gain their trust. Remember that in the Trojan Horse story all the Trojan men were killed, and all the women and children were taken as slaves. Time will tell if the Republican Party pays an extreme cost for protecting Representative Sullivan, if they lose elected offices as a result of Representative Sullivan’s character.
An investigation needs to be conducted into the behavior of all attorneys and judges involved in the Representative Sullivan divorce. This entire case reeks of cronyism, fraud, and corruption. The Republican party, the House of Representatives, and the Republican Caucus should be howling for an investigation, so why are they silent? But there is much, much, more to this story and we will pick it up again in the next newsletter.
Is Governor Mary Fallin Selling Oklahoma To Red China?
Remember that we meet each and every Wednesday night at 6:00 pm at The Carpenter Shop, 358 North Rockwell Ave, OKC, OK call 405-412-6233 if you need directions. We work at the meetings, not talk. Come help take your country back.
The following letter was written by a very conservative Republican County Chairman, whose name I am not crediting solely for the purpose of keeping him out of harms way. We were given a copy and asked to publicize this issue.
As you may well know 94,794 Americans lost their lives fighting communism in Korea and Vietnam. To date communist China is still the same as it was sixty years ago. They remain an unrepentant Communist nation, guilty of many human rights abuses, from the 1989 Tiananmen Square incident where the Communist Chinese government opened fire on its’ own people; to the in-humane one-child policy, the prohibition of the free exercise of religion, and the non-existence of private property rights.
Currently many states are falling all over themselves trying to get more "investment" from communist China. Companies, such as Chesapeake Energy, are selling off parts of their companies to communist China. Chesapeake Energy has sold off one-third ownership of over 1.4 million acres of leasing rights for oil and natural gas to communist China just in the past year.
600,000 acre lease in Texas
800,000 acre lease in Colorado and Wyoming
America's richest oil man, Harold Hamm, CEO of Continental Resources is totally against this merger. And for good reason. In an interview last year with CNBC Mr. Hamm stated
"I think it is a disaster. Before they were stopped by the State Department from buying Unocal. I don’t believe that we should be selling our minerals and Oil & Gas reserves to a foreign entity. They don’t reciprocate with us. We couldn’t go over there and buy a portion of their reserve base — they wouldn’t let us do this. I don’t think our government should look at this favorably. This is changing the basic fundamentals of supply and demand of the industry today. These joint ventures with foreign entities and pay for through participation for several years. In the past when the market was oversupplied, we would slow down development and not waste. With this, there is no slowing down. Even if the market is terribly oversupplied. This provides a basis for waste."
We have sat by and allowed our manufacturing base to be mostly shipped to communist China and now we are going to allow communist China to control parts of our energy resources while be purchase record amounts of oil from overseas countries?
If the United States is to remain a dominate world power - and if we are to maintain any type of middle class - THIS MUST STOP!
I urge you to work on legislation to defund this position within the Oklahoma Department of Commerce and to ensure that this type of position does not appear in any other department within the state of Oklahoma. If we don't stop this on the state level how can we fight to uphold the American way of life on the national level.
And please remember the 94,794 Americans who lost their lives fighting communism. Ensure their sacrifice was not given in vain.