Wednesday, July 19, 2006

Mallory's agency faces probe

FBI also may look into role of mayor's brother
BY GREGORY KORTE ENQUIRER STAFF WRITER

The Cincinnati Police Department and federal authorities will conduct a joint investigation into the Cincinnati Empowerment Corp. after reports of conflicts of interest at the inner-city development agency, a top police official told the West End Community Council Tuesday night.

Whalen said the investigation into the Empowerment Zone started after some of the articles started hitting the paper. The Cincinnati Police Department was also contacted with a letter from HUD requesting a criminal investigation. In addition, the West End Community Council filed a complaint for criminal embezzlement against Dale Mallory.

Members of the West End Community Council allege that Dale Mallory, after he was removed as president in February, wrote $1,119 in checks from the community council account.

Dale's signatures are on those checks. He didn't even deny to the press that he cut those checks. The facts of this case have been widely reported and are not in dispute.
An FBI agent said the bureau had not opened a formal investigation. "We've had discussions with the Cincinnati Police Department about investigative activity they're already engaged in," said Special Agent Michael Brooks, general counsel for the Cincinnati Division.

It is worth noting that well over a month has passed since the original complaint, and nobody has started a formal investigation. All reports that I have indicate that the CPD didn't subpoena the bank records or talk to bank management.

Politically motivated stall?

In a few weeks the deadline will pass for Tim Burke and the Hamilton County Democratic Party to replace Dale on the ticket. If Dale is indicted on felony charges for cutting those checks he will be removed from the ticket and his political career will be over. Let us be clear here, if the charges involved are true (and they are!), this is a felony. Assistant Police Chief James Whalen said as much when asked the question.

If Dale is allowed to go past that deadline in August, the Dems won't be able to remove him from the ticket. The 32nd has been a democratic seat for many decades. A Mallory has held the seat for 32 out of the last 40 years. If he is the Democrat on the ticket, I think he will win that race.
The Cincinnati Department of Community Development and Planning is citing a possible FBI investigation in holding up the release of Empowerment Corp. documents requested by The Enquirer under the Ohio Public Records Act. The Empowerment Corp. also has declined to release documents related to its $2.4 million small-business loan program. The corporation's attorneys acknowledge that 84 percent of the portfolio is behind on payments.

If you want to find the bulk of the money mischief, it is going to be found in the 84% of the loans that went belly up. These are low interest loans, which make them easier to pay back than regular loans. The loan portfolio has never been available to public view. That is a shame. Both the press and concerned citizens could help this investigation. You are talking about a fairly large document dump, and you need people with a good idea of where the bodies are buried.

And how many people have access to those files now? The City, CPD, HUD, THE FBI, and the outside auditor selected by the City. You have a lot of people with their hands on those documents, this isn't just an FBI investigation.

Be on the lookout for Bill Seitz, the new lawyer for the Cincinnati Empowerment Corporation.
In a letter he sent to HUD Monday, Seitz called the controversy a classic case of "don't believe everything you read in the newspaper." He said the issues were stirred up by Dale Mallory's Democratic primary opponent, former Hamilton County Recorder Eve Bolton, and a group opposed to a proposed West End social services center that the Empowerment Corp. supported.
The new lawyer for the Empowerment Corporation admitted that the C.E.C. was supportive of the CityLink homeless mall. This is in stark contrast to what Harold Cleveland has told the press and West End residents recently, which is that the C.E.C never supported CityLink. I would agree with the argument that this affair started with the CityLink Homeless Mall. In the begining, it was widely believed that Dale Mallory was getting paid to promote CityLink and that he had sold out his community. Months after investigating the matter, that is exactly what we have found (along with his upcoming felony indictment). The corruption and incestual financial relationships of the Empowerment Zone are a real eye opener as well.

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Update Channel 12 link

8 Comments:

Anonymous Anonymous said...

Good afternoon Mr. Dallory. I think this is the link you are talking about at the end of your post.
http://www.wkrc.com/news/local/story.aspx?content_id=D2CF210E-58FA-4730-A535-EE845CCCB344

Looking forward to more coverage.

11:39 AM  
Anonymous Anonymous said...

is there any information on whom received the WECC checks that dale wrote post-presidency?

all dale had to do was write a check to an "associate" and the associate could kick back some to dale.

further, i get the feeling that board member george beatty, a very lethal individual, is the x-factor in the empowerment scandal which certainly smells of corruption.

i also get the feeling that CPD doesn't want to take on beatty. god only knows the "links" between beatty and CPD.

and everyone at city hall knows that beatty is connected to unaccounted for funds from the genesis project(s) in the west end.

11:48 AM  
Anonymous Anonymous said...

nothing new here. Seitz should get this whitewashed and Dale will head to Columbus.

1:48 PM  
Anonymous the whip said...

Thanks for keeping that concise. Do not apply for any jobs with Reader's Digest

2:25 PM  
Blogger Male Dallory said...

To the last anon, I think the hardest hurdle will be the checks. He shouldn't have written them, he got caught, and he can't produce a viable excuse for doing so.

I could see him skating on everything else. I can't see him getting away with those checks.

3:04 PM  
Anonymous Carstairs said...

Those checks are felonies. Depending upon how Deters wants to slice this & hoping he can field a Grand Jury who got a decent night's sleep & took their medication for whatever ails them, we are looking at F4 & F5 convictions.

The bad part with F4 & F5, Jail4Dale could ultimately become Probation4Dale. Bad news for all the hard work, I know. But I want to remain positive & keep the eye on the grand prize drawing.

(His buddy Tenbosch is on F5s, I believe.)

However, I'd like to think any felony conviction would knock this boy right off the November ballot.

We're going to have to outwit & out smart Bill Seitz. Cooperate all the way with the investigating authorities. Seitz can be beaten if we play our research right.

7:32 PM  
Anonymous Anonymous said...

From Channel 12's newsblog:

Police: More Names Surface In Empowerment Corporation Investigation

LAST UPDATE: 7/19/2006 12:24:36 AM

Video


Cincinnati Police say more names have surfaced in its joint investigation of the Empowerment Corporation with the FBI. Captain James Whalen updated the status of the investigation at Tuesday evening's West End Community Council meeting.


At the center, is an allegation that funds were misused in the corporation's efforts to bring a large social services center to the West End.


Former community council president Dale Mallory served as a consultant to the project.


Cincinnati Police asked the FBI to investigate Mallory's possible role, because he is the brother of Mayor Mark Mallory.


Police have not released any names connected to the investigation, and say it is still at a very early stage.


For our friends who haven't seen it.

7:50 PM  
Anonymous Anonymous said...

Good morning everyone. Has anyone read this article?

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060720/NEWS01/607200346/1056

8:34 AM  

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