The Federal Bureau of Investigation

Cuff them both now and save me some time!

FBI Joins Empowerment Investigation
WKRC Local 12 News
LAST UPDATE: 7/15/2006 7:28:31 PM

Click the link above and check it out.

Local 12 broke the news that The FBI is the newest entry to the investigation of the Cincinnati Empowerment Corporation. The FBI joins HUD as the second Federal agency to investigate the ongoing criminal activity at the Cincinnati Empowerment Corporation. HUD is currently auditing the improper conduct of the C.E.C. Cincinnati City Council also called for an audit of the C.E.C. This article breaks the news that the Cincinnati Police Department has also been on the Empowerment trail. That is a new development.

Over the years Federal funding for the CEC is into the tens of millions, and over 80% of the loans are reported to be delinquent. This despite the fact that CEC loans were given at below market interest rates (3%), which make it easier to pay back the money. Even with that built in construct, the CEC is only getting pennies on the dollar for what they are giving away. In addition to that, they are paying the better part of a million dollars every year in salaries and administrative costs just to give money away. The CEC provides no direct service, they exist only to give millions of dollars away.

Some of those funds were given to Dale Mallory and Kathleen Norris to promote a project that wasn’t even in the Empowerment Zone. 800 Bank Street is the proposed location for CityLink, and that property doesn't fall within the boundries of the Empowerment Zone. The C.E.C. had no authority on CityLink because it was outside their legal parameters. That didn’t stop them from spending tens of thousands of dollars of public money on the project.

CEC money was given to insiders, friends and relatives. A small cadre of people (the Mallory West End Cabal) has controlled the public spigot of funds.

The FBI is involved because the Mayor’s big brother is the subject of the investigation, which the Mayor and his family have been actively trying to suppress. This development makes that matter more difficult for them. The more Mayor Mallory works to suppress a felony investigation, the more he becomes liable to be the subject of the investigation himself. Implicitly, having the FBI involved puts everyone “on notice” of this fact.

What has always confounded logic is the West End Community Council checks that Dale wrote in June. He had no reason to write them. He had been impeached and removed from office four months earlier. He even admitted in court that he had no intention of holding the office.

He had two court cases for his reinstatement as WECC President. One was thrown out of court. He dropped the other one, and in dropping it he admitted that he was no longer WECC President.

Four months after the fact Dale was still cutting checks and closing down the WECC bank accounts. The West End Community Council filed a complaint, and as of yet we have no reason to believe that anyone has taken constructive action on the investigation. I applaud the FBI investigation of the Cincinnati Empowerment Corporation, but the obvious felony up for grabs is Dale cutting those checks.

Dale's checks haven’t been widely reported. Hats off to Local 12 for breaking this news, but they have never spoken about Dale’s checks. The Cincinnati Enquirer, The Cincinnati Post, and the Cincinnati Herald have never made those checks an issue, or even given them a mention. If we didn’t have Dan Monk at the Cincinnati Business Courier, Dale’s actions would be facing a total media blackout. That is what the FBI should be investigating.

It really is an open and shut case. Dale cut those checks after being removed from office. He closed down the WECC bank account. It happened. The WECC filed a complaint and demanded an investigation, and according to Dan Monk, the only response was that the CPD started investigating the impeachment of Dale Mallory, instead of Dale Mallory's obvious felony.