City To Audit Cincinnati Empowerment Corp
BY GREGORY KORTE ENQUIRER STAFF WRITER
"Two Cincinnati City Council members are calling for an audit of the Cincinnati Empowerment Corp. as questions of conflicts of interest surround the federally funded development agency.Bortz and Berding have the right idea. It is tough to imagine people not taking notice. People have been leaving the Empowerment Corps board and they have been taking parting shots at Garrett & Cleveland and company. Lamont Taylor called for Garrett's resignation, and Stephanie Smith resigned over Cleveland's clandestine real estate transactions.
"There have been enough allegations now of mismanagement of funds, from a number of different sources, to suggest that a more complete review is required or responsible," said Councilman Chris Bortz, a Charterite who chairs the Economic Development Committee.
Bortz, joined by Democrat Jeff Berding, has proposed that the city freeze funding to the Empowerment Corp. until the audit is completed. "
"City Manager David E. Rager referred questions about the audit to an assistant, Deborah Holston.
She has not returned several calls in recent weeks concerning the Empowerment Corp., where she formerly served as a board member. Board Chairman Len Garrett removed her from the board last year after she failed to attend meetings for more than three months."
This is a very interesting situation. It makes me curious. As the city's representative to the Empowerment Corp, she should have attended the meetings. That said, other board representatives that have left claim that they were kept in the dark by Garrett & Cleveland. It is quite possible that attending the meetings wouldn't have done much good.
What about the fact that Garrett is booting the City's rep off the board? The inmates are running the asylum.
"Garrett, board chairman, had personally directed the activities of a $40,000 consultant whose bills to the corporation were "troubling," according to a report by two Empowerment Corp. lawyers. The consultant, Dale Mallory, was former president of the West End Community Council, which appoints members to Empowerment Corp.'s board. He's also a candidate for state representative - roles that, in the words of the board's lawyers, "should have raised major concerns." Mallory is the brother of Mayor Mark Mallory.
Chief executive officer Harold L. Cleveland purchased a building at 1800 Linn St. last month, making him the landlord of Empowerment Corp. board member George Beatty, whose restaurant is located in the building. Cleveland bought the property for $137,000 - twice the value assessed by the Hamilton County Auditor's Office - from a partnership controlled by Theotis J. Holmes. Holmes had fallen behind in his payments on a $158,000 Empowerment loan. Cleveland hid the sale for weeks by using an anonymous trust as a middleman in the transaction."
The Mallory stuff is old news, but this is the Impeach Mallory blog. It is our sworn duty to gleefully repost and rehash Dale's situation every time it gets brought up in the media.
What about Harold Cleveland trying to hide his insider deals by going through an anonymous trust? I think that raises the level of suspicion in any audit. His own board members are walking out on him because of it. It goes without saying that the man has something to hide.
It is going to be fun finding out what else is under the covers.
posted by Deep Throat at 11:38 AM
19 Comments:
Cleveland got caught with his hand in the cookie jar. This is big.
Today is Fannie's birthday. 3M did an extremely poor job of announcing it at the end of the Council meeting. Very brittle. It was as if he had gas & indigestion & couldn't fart it out.
I found his manner very dishonorable & disrespectful. But then, I absolutely adore my Mother. She's my hero & I celebrate her each day.
Memo to 3M: life's too short & tomorrow is not a promise. Your Mother could wake up tomorrow & not be able to walk or speak. Then again, your Mother could go to the Lord in her sleep tonight. You need to grow up & be a man.
I don't get half the crap that gets put on this board. That is sad. Lumpy quilts, family trees, the mayor's mom. You guys do a fine job of staying on message.
I think that steffenwolves is mixing the pain killers with the gin again. Rock on.
steffenwolves, try a coherent thought.
VirginiaWolves...
anon: 4:25
Fannies 3 kids hate her for enabling Bill's philandering and bring in 3 half brothers into the Klan so late in the ballgame.
She plays the martyr, but she just is an enabler of outrageous behavior (eg Wm.Sr. and D4S).
Hey, stop giving Steffenwolves the grief. I get exactly what he's saying - it's the familiar faces all in the same bed we talked about in another post.
I have to agree there's big lumps & little lumps under that quilt. Somebody needs to check under the bed & between the mattress & boxspring. It might be a good idea to look in the dresser drawers, too. You can stuff a couple of small corpses, er, bodies in 'em.
Although I don't think Timmie, Weiland & some of the call makers are going to yank back the covers because they're hunkered down in that bed of corruption somewhere.
Dawson, Holmes, Orlinda, Monique, Tom Gabelman (Banks lawyer), Caleb Faux, Uncle Carl...the list goes on.
Hey, can I get in this weak-ass metaphor?
Leave Caleb Faux alone....he's a good guy and voted AGAINST CityLink.
Rumor is senior Mallory is crying to local news editors about the recent coverage. "Not fair" to his poor baby boys.
Why doesn't pappa Bill say something when D4S steals the WECC records and cleans out their bank accounts.
When will any Mallory take responsibility for their immoral and even criminal behavior?
Taking responsibility for their criminal & sleazy behaviors is not in the Mallory Mafia playbook. Never was. They aren't about to start now.
But once you think about it, this is the first time Cincinnati's "First Black Family" has ever been called out for their misdeeds. Truth Squad, this IS history!
Anon 6:31, Faux voted against CitiLink, which on the face of it makes him a good guy, but he bears watching. He follows in the shadows of Fat Timmy & when there's a deal going on, he's partially hidden behind a curtain in the room. Good guys enjoy being in on the action, too. There's always some benefit they can derive from it & Caleb is always looking to take another step.
6:50
I don't give a damn about shadows.
I care about actual behavior.
Caleb is batting 1.000 on my scorecard.
Mallorys/Burke batting 0.000
6:31
that's more than a rumor.
Pappa Bill was seen going into Business Courier office to try to kick ass.
I bet Monk keeps up the good work.
Pappa Bill huffs and puffs on any perceived innacuracy he can cobble up. Monk's up to his eyeballs in EZ records. He's doing a great job.
6:31
Right on the money!
New stoty by Monk minutes ago. Pasted below:
City executive calls for audit of Empowerment Corp.
Cincinnati Business Courier - 5:58 PM EDT Wednesdayby Dan Monk
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The city of Cincinnati's director of community development and planning wants to hire an outside auditor to examine the finances of the Cincinnati Empowerment Corp.
This, after two recent controversies over potential conflicts of interest among the agency's board members, employees and consultants.
"I see a lot of smoke and I want to make sure how much fire there is," said Michael Cervay, who advocated the hiring of an independent auditor during a June 28 meeting with city finance and legal officials.
The meeting was held in response to a June 7 memo by city council members Chris Bortz and Jeff Berding. They asked interim City Manager Dave Rager to freeze "all reimbursements and administrative drawdowns" to the federally funded agency until the city can conduct a "full audit" of "potentially inappropriate expenditures."
Cervay said a decision will be made by the end of this week on whether to conduct an audit and whether to freeze the agency's funding. He would like to take proposals from accounting firms that can review the agency's spending in detail.
"Enough questions have been asked that I have not been able to answer that I feel I need the information in order to be assured that no irregularities exist," Cervay said.
Recent controversies at the agency involve a $40,000 consulting contract for Dale Mallory, who improperly billed the agency $225 for time spent on work for the West End Community Council. An attorney hired to review Mallory's contract called the relationship "troubling." Mallory has since repaid the money.
Another controversy erupted last week, when the Courier reported that board member Stephanie Smith resigned to protest a real estate transaction involving Empowerment Corp. CEO Harold Cleveland and a developer who borrowed money from the agency.
The purchase made Cleveland the landlord of Empowerment Corp. board member George Beatty. Smith, a program officer for the Fifth Third Foundation, declined to comment on the matter, but the Courier has obtained a copy of her June 20 resignation e-mail to Cleveland.
"This additional issue has caused me to re-examine my position on our ability to operate and function as a healthy and fiscally responsible organization," Smith wrote. "If this transaction did occur, the board should have been apprised in order to ensure the greatest degree of fiscal responsibility and transparency. If this is the case, I would like you to accept my resignation immediately."
Empowerment Corp. officials Beatty and Cleveland have declined interview requests.
KUDOS DAN!!!
Dan, you're the man! Stay on 'em & ride 'em hard!!! YEE HAW!
"An attorney hired to review Mallory's contract called the relationship "troubling." Mallory has since repaid the money."
What's this zip-a-dee-doo-dah that Jail4Dale has repaid money to the EZ???!!
I guess Mommy & Daddy fronted him the cash. Hold on. Those secret accounts he opened while Prez of WECC.
Memo to Jail4Dale: you're not ally ally in come free, boy. Oh no. You have some 'splaining to do about the WECC books, archives, financials & plenty more. We want to know about these accounts you opened up without the knowledge of the WECC Board. That's just for starters. Think twice about going to Columbus, because it's not going to happen. One other thing - the Truth Squad isn't finished with you yet. Not by any means, boy.
"I see a lot of smoke and I want to make sure how much fire there is," said Michael Cervay
Honey, you don't have enough firefighters, equipment, trucks & water for this working fire. Oh, hell no, Honey. Why, I've never worked up fires like this with my cigarettes when my boys at the ball park were losing.
This blaze is out of control & you're smart to bring in some auditors with keen eyes & sharp pencils. Honey, get busy on this right away before it consumes the city. Those Mallory boys are out of control.
And this is just in from the Whistleblower:
Our City Hall Snitch says, “In the still-developing Empowerment Corp. scandal involving Dale Mallory, the Mayor's brother, Howard Beatty, the shooter of Chewbacca Oba, George "Cockroach" Beatty, the business partner of race-baiter Mad Dog Lawson, why has the Fishwrap not yet mentioned Looney Laketa Cole’s role in the mess? She is, after all, the former "Public Relations Director and as Interim Director of Economic and Workforce Development" according to the city's own website.
If you go to Mini-Me's profile, she's got her "accomplishments" out there & it says it very plain that she was with the Cincy EZ.
I had long forgotten about that. Hmmm. Makes some sense.
Dale gave the money back???
last week he says "hell no...I stole it fair and square"
We don't need your stinkin $225.
You stole so much more.
Your criminal embezzelment of WECC funds need a full accounting.
You do have some serious splainin to do.
You have screwed the pooch and you will pay.
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