Tag Archives: Terje Anderson

Welcome to Vermont, Mr. McNeil

Oh boy, there’s more bad news from the Vermont Democratic Party. The latest from Team Turmoil is an official notice from the Federal Election Commission informing the VDP that it has yet to file its required monthly financial report for July, and warning of serious consequences.

The failure to timely file a complete report may result in civil money penalties, an audit or legal enforcement action. The civil money penalty calculation for late reports does not include a grace period and begins on the day following the due date for the report.

The July report was due August 20, so the fines have been piling up, potentially, since August 21. (The fines are assessed, or not, on a case-by-case basis. There’s no set dollar amount.) And the August report is due on September 20. If it doesn’t go in on time, the daily fines could double.

These filings are a royal pain (says anyone who’s had to prepare them), but are a necessary function for a political party. Failure to file is, well, a violation of federal law.

Party spokesperson R. Christopher DiMezzo offers words of assurance. “The FEC knows about the situation,’ he said. “We’re in contact.”

The delay in filing, he explained, is entirely due to alleged embezzlements by former staffer Brandon Batham, which is under investigation by Montpelier police. “The filing is held up because of the law enforcement investigation,” he said. “The report will go in when we figure out how to handle it.”

Well, maybe, but my bullshit detector is pinging. The party could always submit a report and revise it later if necessary. Happens all the time. Plus, does the financial filing really depend on the police investigation? We already know how much money is involved, don’t we?

Don’t we?

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Windham Dems Quickly Dispose of Hot Potato

At a meeting Monday, the Windham County Democratic Committee disposed of a resolution calling for new leadership in the state party. Instead, the panel approved the drafting of a letter expressing concern over an alleged embezzlement of party funds and appreciation for actions taken by party leaders to prevent any recurrence.

The resolution was drafted by county party chair John Hagen after consultation with other officers in the organization. The meeting was attended by 23 party members, including almost every Democratic lawmaker from Windham County. If there had been any momentum in favor of the resolution, the air exited the balloon when Hagen told the meeting that, about an hour before the meeting began, he had received an email from state party chair Terje Anderson providing a full history of the embezzlement case and outlining new steps the party was taking in response. In the email, Hagen said, Anderson “addresses every part of the resolution.”

Nice timing, that. If Anderson sought to influence the proceedings with a last-ditch plea, it’s fair to say he succeeded.

The resolution was in response to alleged embezzlement of more than $18,000 in state party funds by former staffer Brandon Batham. (The Vermont Democratic Party has requested a criminal investigation by the Montpelier Police Department, and is conducting an audit going back three years to be sure that no more irregularities are hiding in the weeds.) It called for a new slate of state party officers to be presented at the party’s reorganization meeting on November 16, citing concerns about management oversight and the scandal’s potential effect on fundraising.

No one spoke in favor of the resolution, although several attendees had been involved in creating it. Most were mollified by Anderson’s late email — even though they had yet to actually see it.

“I wasn’t expecting the resolution to pass,” said Hagen after the meeting. “The intent was to throw a rock in the water and see what came up to the surface.”

That rock produced a tidal wave of retreat from the resolution. The most vociferous opponent was Sen. Jeanette White (D-Windham), who characterized party leaders as “a bunch of volunteers doing the best they can,” she said. “In my mind, they have revised and updated their procedures. This resolution just fuels the flames.” She advocated putting the affair behind them and turning the party’s attention on the 2020 election campaign.

Committee member Andy Burrows of Guilford noted that before Batham was hired on party staff, he had been chair of the Windham Democrats — and had not performed well. “We worked with him for a long time,” Burrows said. “He was a shifty sort of guy. We should ;have said Batham was not appropriate for the party job.”

Afterward, Burrows elaborated on his statement, noting that he questioned Batham’s work ethic, not his probity. “He volunteered for many tasks, but he did very little,” Burrows said of Batham. “We wouldn’t have recommended him. And [the party] didn’t ask.”

Which ought to raise questions about the thoroughness of the Vermont Democratic Party’s hiring process in addition to its financial oversight. But I digress.

2016 gubernatorial candidate Brenda Siegel spoke against the resolution. “When embezzlement happens, it’s not always the fault of leadership,” she said. Rather than suggesting a new slate, she advised allowing the reorganization process to play out.

Several committee members expressed a desire to meet with Anderson directly before considering the resolution. Rep. Mike Mrowicki (D-Putney) moved to table the resolution. “We’re nowhere near consensus,” he said.

White even objected to tabling; she wanted the county committee to immediately drop the matter. “We should send a nice letter saying we appreciate the work being done on new procedures,” White said. She added that “We shouldn’t judge Brandon. I don’t know what’s going on with him. I don’t think he’s a bad guy.”

Of course, the resolution didn’t judge Batham at all; it focused on the potential failings of responsible leaders. But whatever.

“We should send a thoughtful letter stating that we’re glad to hear they’re working on new procedures, and asking them to come down and talk to us about it,” said Burrows.

White objected to that as well, saying she didn’t want to take the time for more talk. “We should thank [leadership] for taking this seriously, and let the reorganization process go ahead,” White said.

At that point, committee members deferred to White. Her resolution, calling for a thankful letter and nothing more, was approved on a unanimous voice vote.

Members of the Windham County committee clearly felt uncomfortable expressing any real questions about party leadership, especially on the eve of the 2020 election season. But this is probably not the end of Anderson’s troubles. Many committee members expect robust debate at the VDP’s state committee meeting on September 21. Hagen noted that he had talked with other county chairs, and found that many were still actively concerned about the Batham case and its effect on fundraising.

And even in the absence of an actual call for change in leadership, the incumbent officeholders are likely to face sharp questions — at the very least — at the reorganization meeting on November 16.

 

Windham Dems consider a call for change in state party leadership

At its scheduled meeting Monday September 9, the Windham County Democratic Committee will consider a resolution calling for “a new slate of [party] officers” for the Vermont Democratic Party.

The resolution is signed by county chair John Hagen. It centers on the embezzlement case involving former party staffer Brandon Batham, who allegedly took more than $18,000 in state party funds through payroll fraud and excessive expense-account claims.

The resolution notes that the party’s Executive Committee “has the oversight and fiduciary responsibility to ensure accountability of all party funds,” and that the Batham case “may undermine future party fundraising efforts.” A change in leadership, it says, is necessary “in order to demonstrate a meaningful change for improved oversight and fiscal accountability.”

The VDP is undergoing its biennial reorganization this fall, including election of state officers on November 16. Current officers include chair Terje Anderson, vice chair Tess Taylor and treasurer Billi Gosh. They have yet to say if they plan to run for re-election, but have given no indication that they need to take any action besides promising to do better. “We will be doing everything possible to move beyond this very discouraging set of circumstances and to regain or retain your trust,” party leaders wrote in a memo to members following the revelation of the embezzlement.

The existence of the Windham resolution shows that some party members are unwilling to be satisfied with mere words. If the resolution is approved Monday, it could set the stage for a truly rocky reorganization process.

Or, perhaps, for the quiet departure of current leadership.

Text of proposed Windham resolution:

20190905_123845

The Dems Come Clean, Sort Of

On Sunday afternoon, the Vermont Democratic Party issued a thorough and putatively transparent explanation for the Brandon Batham case. Unfortunately, it raises quite a few questions — and its effort to exculpate party leadership rings a bit hollow.

Batham is the former party staffer who resigned suddenly last month. A couple of weeks later, the VDP issued a press release stating that Batham had embezzled close to $3,000 in party funds. But toward the end of last week, I learned that the actual amount was much larger — although I was unable to find out how much. Lips were tightly zippered, and information was closely held by a handful of top officials. Not even the party’s executive committee was informed.

So I wrote what I knew on Friday. Less than 48 hours later, the party issued a press release stating the Batham had taken an additional $15,629 — bringing the total to roughly $18,500. The embezzlements took place between January and June of this year. The statement acknowledged that the total could go even higher, as a third-party audit of the VDP’s books is underway.

Well, that’s comforting. How bad is the bookkeeping system anyway?

The party explained that the original $2,931 was skimmed from party funds, and the remaining $15K-plus was taken by Batham by way of the payroll system. He gave himself an “unauthorized raise,” and also issued “unauthorized additional paychecks and ‘bonuses’ between official pay-periods” to himself.

Which, as the party itself states, he shouldn’t have been able to do. Batham, the release states, “did not have signing powers on the party accounts.”

Who did?

From January through April, it was then-executive director Josh Massey — who goes unnamed in the party’s release. After Massey’s departure, party leaders chose not to name an interim E.D. Instead, party chair Terje Anderson took on many of the duties. As did Brandon Batham, heh.

According to a fact sheet accompanying the press release, Anderson and party treasurer Billi Gosh repeatedly tried to get answers from Batham. They failed to do so.

For more than two months. 

Either Batham is a master of deception, or Anderson and Gosh didn’t try hard enough.

Anderson uncovered the non-payroll takings in early July. He shared his findings with precisely two other people — treasurer Gosh and party vice-chair Tess Taylor. “Documentation was carefully gathered,” says the fact sheet in its characteristic passive construction, and on July 17 Anderson, Taylor and the VDP’s attorney confronted Batham with evidence of the $2,931. At this point the payroll fraud hadn’t been detected — not, if you believe the VDP’s statement, due to any dereliction on the part of Anderson or Gosh, but because of Batham’s deft deployment of Jedi mind tricks.

Batham resigned rather than being fired, but the information was kept close to the vest by party leaders.

The payroll theft was discovered near the end of July, when Anderson was finally “able to access the payroll accounts.” Apparently Batham left the books well-hidden? Finally, on August 8 the matter was referred to police, who supposedly asked party leaders to keep it quiet.

That’s the explanation offered for the complete lack of disclosure until Sunday — two days after I spilled the beans.

The fact sheet says that the party has already reformed its system for cutting checks and documenting expenses. In other news, the barn door has been locked after the horse was stolen.

The party also issued a “Memo to the Vermont Democratic Community,” which is copy-and-pasted below. I’ll note a couple of key passages.

After a brief statement of fact, the memo says, “We will be doing everything possible to move beyond this very discouraging set of circumstances and to regain or retain your trust. We will do so in a spirit of humility and honesty.”

OK, well, good luck with that. You’re going to have a hard time convincing folks of your “honesty” when you kept all this information secret until you were essentially forced to reveal it. I’m sure the police asked you to keep it quiet — but did you feel a countervailing obligation to the people’s trust? Perhaps you had a higher duty than to accommodate the police?

The memo closes with a plea to move beyond this scandal because it “cannot distract from the pressing work that lies ahead” — the 2020 election, etc.

Good luck with that, too. Especially if party leaders continue to hew to the line that everyone other than Batham (and perhaps the unnamed Massey) is completely blameless, did their best at all times, and should not face any sort of sanction or, perish forbid, removal from their positions of trust.

Is the party’s executive committee likely to be so forgiving? Or the larger state committee, which includes multiple representatives of each county?

If not, then we’re likely to see some consequences. For starters, new leadership may be needed to restore trust in time for the 2020 campaign. After all, the VDP has had major fundraising troubles for the past three-plus years. Now it’s facing a significant financial scandal that raises questions about oversight of party spending. The party has just given every potential supporter one more big fat reason to say “no” when the VDP comes calling.

 

Memo to the Vermont Democratic Community

FROM: Terje Anderson, Party Chair; Tess Taylor, Party Vice Chair; Billi Gosh, Party Treasurer

TO: The Vermont Democratic Community

On August 8, 2019, the Vermont Democratic Party filed a formal criminal complaint against Brandon Batham, former Director of Party Operations, for misuse and embezzlement of party funds.

The report alleges Mr. Batham, over the course of calendar year 2019 until his departure from the Party in July, embezzled, fraudulently obtained, or misused approximately $18,500 through various means, including payroll fraud. While these numbers are accurate to the best of our current knowledge, we may not know the total amount stolen until the close of a complete and thorough third-party audit.

This is, certainly, a difficult and painful time for the Party. We believe that an absolutely essential part of addressing the situation is a full and transparent explanation of what happened, and what comes next, to our supporters, donors, and friends. To that end, we hope the attached fact sheet will begin to address your possible questions and concerns.

We will be doing everything possible to move beyond this very discouraging set of circumstances and to regain or retain your trust. We will do so in a spirit of humility and honesty,

But we also want to make sure you know that this cannot distract from the pressing work that lies ahead — the essential business of electing a new President and a new Governor in 2020, electing Democrats at every level, and the urgent need to stand up for the interests of the people of Vermont, the United States and the world. We cannot lose sight of the urgency of that mission.