Fox 9 News in the Twin Cities has just scooped this story:
US Sen. Norm Coleman (R-MN) had just completed a major home renovation that went $86,000 over budget in the spring of 2007, at exactly the same time that Coleman sugar-daddy Nasser Kazeminy began funneling $75,000 (out of a planned $100,000) to his wife Laurie Coleman.
We couldn't help wondering: why would a US Senator, who makes about $180,000 a year, actually need the money? That's what the Fox 9 investigators began looking at about a month ago, and it led us right to the Senator's doorstep.
Partly as a result of this renovation, Coleman's mortgage is now under water.
The full broadcast story by top investigative reporter Tom Hauser can be found at this link (sorry, will not embed).
Key points:
- The renovation to Coleman's home began in the fall of 2006, originally budgeted at $328,000.
- The final bill, in February 2007, was $414,000 -- a budget overrun of some $86,000.
- Contractor Jim Taylor, who did the work, told Fox 9 that the last parts of the work were done in the spring of 2007.
- This was exactly the same time (March 2007) when Nasser Kazeminy ordered his legitimate business Deep Marine Technologies (DMT) to begin $100,000 in payoffs to Hays Companies, (a Minnesota insurance brokerage firm) with the intent that the money pass to Norm through his wife Laurie, a Hays Company employee (or contractor, depending on who you believe). Kazeminy said that the reason for the payouts was that "US Senators don't make shit."
- Shortly after the renovation, Coleman refinanced his mortagage for $717,000. This is considerably more than the house is now worth. In other words, Coleman's mortgage is now underwater.
The whistle was blown on the Kazeminy-to-Hays-to-Coleman money laundering scheme by DMT founder and then-CEO Paul McKim, who filed a lawsuit against Kazeminy in October. Other minority shareholders in DMT have also sued Kazeminy with the same complaint.
As a result of these lawsuits, the FBI has opened an investigation into the matter.
By the way, one of the verrrrry interesting points about this mess is the attitude taken by Hays Companies. Right after the suit was filed in October, they issued a strongly worded non-denial denial:
We believe the allegations in the lawsuit referenced in a story in today's Star Tribune newspaper -- a lawsuit to which we are not a party -- are libelous and defamatory, and we intend to protect our name and our reputation vigorously with whatever means necessary.
The allegations that we are not licensed to perform services in Texas are simply false, as are other allegations contained in this disreputable lawsuit that refers to Hays Companies.
Points to ponder:
- The lawsuit never alleged that Hays is "not licensed to perform services in Texas." Rather, the lawsuit alleged that Hays Companies are not licensed to broker insurance in Texas. This is ridiculously easy to verify on the website of the Texas Department of Insurance. Go ahead and take a look. The Texas Department of Insurance has never issued any kind of license to the Hays Companies. So the lawsuit allegation is completely true, and Hays is blowing smoke. A company that has nothing to hide doesn't make obfuscatory statements like this. Conclusion: Hays has something to hide.
- Although Hays claimed in October that they intended to "protect our name and our reputation vigorously with whatever means necessary," it is now obvious that "whatever means necessary" does not include talking to the press. Today's Star-Tribune includes an article about Hays Companies founder Jim Hays -- without a single quote from him or anybody else. The company has clammed up.
- This whole thing would be very easy to disprove by providing the public and the press with billing records and work product for whatever-it-was that Hays did for DMT that was worth $75,000. But, as just mentioned, Hays has clammed up. Is this what it means by "any means necessary" to protect its name and reputation?
This is beginning to stink, folks. Even if Norm wins the recount (which is increasingly unlikely), an indictment may be on the way.
UPDATE: Mandatory aw-shucks-folks-I'm-speechless thanks for putting this on the reclist.