Topeka, Kan. – Yesterday, the Weekly Standard reported that one of Greg Orman’s Republican endorsements may have been paid for. Then, late Friday, the Daily Caller, investigating Orman’s potential pay to play scandal, broke the news that Greg Orman may have falsified his financial disclosure form.
The Daily Caller interviewed Eric Carter, the former Republican state lawmaker whose endorsement is at question. According to Orman’s financial disclosure Carter, who also serves as Orman’s lawyer, was given an interest free loan by Orman of between $15,001 and $50,000. Carter told the Daily Caller that, “at any given time [Orman’s] companies owe me more than is owed on the line of credit...”
“If that is true,” The Daily Caller wrote. “ It is not reflected in Orman’s financial disclosures which require documentation of liabilities greater than $10,000. The only liabilities Orman lists are two student loans he has in conjunction with his wife.”
The Roberts for Senate Campaign today called for Greg Orman to come clean on his arrangement with Mr. Carter.
“What is Greg Orman hiding?” asked Roberts’ campaign manager, Corry Bliss. “ This episode is simply the latest example of Mr. Orman’s shady financial dealings, and yet more proof Kansas voters can’t trust liberal Democrat Greg Orman. Greg Orman can’t be trusted to stand up for the unborn. He can’t be trusted to stand up to the President on amnesty or to repeal Obamacare. And, if Kansas can’t trust Greg Orman to be honest about his endorsements or his finances as a candidate, how could Kansas ever trust Greg Orman as a United States Senator?”
Greg Orman has serious questions to answer, including:
- What is Mr. Orman’s financial relationship arrangement with Eric Carter?
- Did Mr. Orman make a pay for play deal to earn Eric Carter’s endorsement?
- Did Mr. Orman fail to disclose a significant liability on his financial disclosure?
- Was there anything else Mr. Orman left off of his financial disclosure forms?
- Why won’t Mr. Orman come clean about other issues from his disclosure, including his ongoing relationship with Wall Street Criminal, Rajat Gupta?
The full Daily Caller article is below:
Kansas Independent Accused Of ‘Potential’ Backroom Endorsement Deal With Republican Supporter
October 24, 2014
A Republican former state representative in Kansas who recently stumped for independent Greg Orman — reportedly to buffer against accusations that he is a liberal — has worked as an attorney for the candidate and owes him as much as $50,000.
The Weekly Standard reported Friday that the Republican, Eric Carter, owes Orman between $15,000 and $50,000, according to campaign financial disclosures. Carter has also served as Orman’s attorney in several lawsuits, The Daily Caller learned.
The campaign of Republican incumbent Pat Roberts jumped on the news Friday calling the disclosureevidence of “a potential backroom, pay to play endorsement deal.”
But Carter tells TheDC that he does not believe the relationship presents a conflict of interest.
The Lawrence Journal-World reported on a campaign event Orman held at one of his businesses in Lenexa on Wednesday that appeared to be part of a strategy to buffer the candidate from criticism from Roberts.
In TV ads, in their three debates and on the stump, Roberts has hammered Orman on past campaign donations he made to Senate Majority Leader Harry Reid, President Obama and Hillary Clinton. A vote for Orman is a vote for the liberal agenda, Roberts has insisted, hoping the message will be a turn-off in the Republican-leaning state.
But Orman and his surrogates have responded by trotting out supportive Republicans in ads and on the campaign trail.
Continuing that strategy Wednesday, the Orman campaign “staged the event to dispel that very criticism by having former state Rep. Eric Carter, a conservative Republican from Overland Park, introduce him,” the Journal-World reported.
“We’re all worried for our country, and for good reason. We’ve got challenges on the horizon,” Carter said Wednesday, the Journal-World reported. “The one thing we’ve seen that has now been measured for decades is that it doesn’t appear that the current batch of folks and the current way that we’re doing things is going to meet those challenges.”
Denying claims that this presented a conflict of interest that warranted disclosure, Carter explained his dealings with Orman in a phone and email interview with TheDC.
“There’s not a conflict anymore than if you had two business partners. It’s basically the same thing,” said Carter, who says he has known Orman for 15 years and considers him a “stellar” businessman.
Carter, who operates the law firm Carter LLP out of Olathe, said that he has a revolving line of credit with Orman.
“Most law firms have a line of credit, so there is nothing unusual in that,” he said.
The rate on the note is better than what he could get at a bank, he added. According to Orman’s disclosure, the note is non-interest bearing.
Carter said he could not “ethically say” how much Orman’s companies owe him, but he said Orman “previously authorized me to divulge that at any given time those companies owe me more than is owed on the line of credit and the amount of the loan is small relative to the amount of work being done at any given time.”
If that is true, it is not reflected in Orman’s financial disclosures which require documentation of liabilities greater than $10,000. The only liabilities Orman lists are two student loans he has in conjunction with his wife.
Carter said that his business relationship with Orman is not a big secret. He has represented Orman on several legal cases and has been quoted in the media as his attorney, he pointed out.
One of the cases Carter has worked on for Orman involved a lawsuit filed by Everlast, the boxing equipment company, against a company Orman purchased several years ago. Carter also represented Orman on a lawsuit he filed against the family of actress Debbie Reynolds over a $1 million debt.
Carter did not respond to a follow-up email asking whether the audience at Wednesday’s event was made aware that he was a Republican.
The Orman campaign did not respond to a request for comment.