Beshear's new ad defends work on Kentucky Central

UPDATE 11:48 a.m.: Here's the ad.

Democratic candidate Steve Beshear began running an ad late last night responding to Gov. Ernie Fletcher's commercial regarding Kentucky Central Life Insurance.

Beshear's spot features two people who say they were appreciative of the work Beshear did as an attorney working on the attempted rehabilitation and subsequent liquidation of the failed insurance company.

It also features headlines and excerpts from newspapers that scroll across the bottom of the screen claiming that Beshear was exonerated by a report made public last weekend.

The report said Beshear's firm, Stites & Harbison, had a conflict of interest and should have withdrawn from working on the Kentucky Central case. At issue was how Stites & Harbison attorneys performed legal work for the Bank of Louisville regarding a sale of $15 million in Kentucky Central securities at the same time the firm was helping to save the financially crippled insurance company.

The report makes it clear that Beshear didn't know exactly what his colleagues in Louisville were doing to help the Bank of Louisville. But it said Beshear had "general knowledge" of what was happening and should have either stopped the other attorneys from helping the bank or informed officials trying to save Kentucky Central that something was going on with those securities.

Two judges who oversaw the matter have since said they believe the report was incomplete and that Beshear and his law firm did nothing unethical.

- Ryan Alessi

Comments

Ryan,

Your own Editorial board said this is a non-story; what credibility do you have in continuing your efforts to try to conjure one from the ether?

Moving on...

Offered without comment.

----

http://www.kentucky.com/591/story/198518.html
Ky. Central flap

Clear campaign trail of red herrings
Fodder for lawyer jokes, yes. A smoking gun bearing the fingerprints of Democratic gubernatorial nominee Steve Beshear, no.

....

In the end, the judges decided that Stites & Harbison should continue to lead the liquidation of Kentucky Central, although other firms also worked on the case.

It was a good decision. More than $300 million has been recovered and returned to policyholders and creditors, including $27 million in a settlement with the Bank of Louisville.

Now could we please have a governor's race that's not about something that happened in 1993?

Fletcher has been governor for almost four years. Kentuckians deserve to hear him talk about his record and his ideas for the future.

Beshear knows this has hurt him - that is why he is running ads covering his tracks.

[Frankfort Eye]

This story was ordered covered up and buried by the same Judge who presided over the criminalization of Fletcher's hiring scandal, and now volunteers and contributes to Beshear's campaign. One can only imagine what paid blogger hit-man Mark Nickolas would do with this story if Beshear was a Republican. Keep up the good work Alessi and don't let those who can dish it out but can't take it get you down.

Why did comments I read a few minutes ago about highways employee named Mary Sharfe disappear? The post seemed to show as example of certain state employees who came in with previous administrations and faired well under the Republicans. Poster then questioned whether employees like that will be promoted and given raises by Beshear like they were under Fletcher. That's legitimate question and observation. Sharfe came in under the local gov guy for Patton. She moved from here and went with Nighbert when he moved to Highways. Then she moved again when he became secretary there. She's been very involved with First Lady's breast cancer parties. Now, she's pleading her case to the big folks on my side. Previous poster had legitimate question as to their role in the Beshear administration.

State employees should know that a lot of the folks that are leading the charge for Beshear have actually faired well under Fletcher. Many of them that are supporting Beshear received promotions and 10% salary increase awards. They run around complaining to their coworkers and they have actually benefitted quite well. Fair to mention since these same folks will end up in non-merit jobs for the next four yearrs taking care of their own while those of you who fell for their ranting/raving about Fletcher will still get minimal raises. You are being used.

Teachers received the biggest raise since the passage of KERA under Fletcher.

It's over.

[Mildred]

Let's talk about how little Fletcher has helped the poor people and the middle class in KY since he became governor. Talk about all the things he took away from us so that he could pay his buddies those big salaries. People of Kentucky--get real--Republicans have a history of hurting our economy and the poor people. Vote Democratic for Steve Brashear and he will help everyone, not just the choice few.

[INEZ]

PLEASE!!! ANOTHER LIER IN POLITICS LETS US JUST KEEP THE ONE THAT WE HAVE.

It's B-E-S-H-E-A-R, Mildred.

[NurseTeacher]

Those of you that want this state to be run by the "Good ole boys again" need to be careful what you are working for. Alot of people may not care for Fletcher as a person, but he has done more for education, health care and the poor people than any other governor in the state. Those of you that are so hateful and childish, if Beshear wins, you will deserve what you get.

[GiveMeABreak]

2:04 - A Fletcher supporter showing pity for state employees. Now I've heard everything...

Holy cow, just take a look at how desperate Fletcher's become. He's already started with the gay smears:

http://frontier.cincinnati.com/blogs/gov2/2007/10/how-low-can-you-go.asp

NurseTeacher, I agree with you that Gov. Fletcher has had some impressive policy successes in Medicaid, tax reform for the working poor and teacher pay.

That's all well and good, and he deserves credit for it.

But here's where those of us who may, at times, sound hateful and childish, are coming from.

We're sick and tired of having our intelligence insulted.

When Flecher signed his name to a confession that he did wrong and that the Grand Jury probe was warranted, I was almost prepared to forgive him.

Then he proceded to travel the state dismissing it all as a political witch hunt.

So was he telling the truth when he signed that confession, or later, when he repeatedly repudiated it? He can't have it both ways.

This offended some key Republican supporters as well (notably, retired Judge Richard Revell).

It's also offensive that he claims Beshear's firm contributed to the collapse of Kentucky Central.

And now, in desperation, he's appealing to the lowest common denominator (see above).

I can stomach the fact that he refuses to disclose the names of his legal defense fund donors -- and even his illegal refusal to make university board appointments that reflect the political split of the electorate.

But let's face it: he's a political nitwit who has surrounded himself with the same -- from the very outset.

It's embarrassing.

I have no doubt whatsoever that had he touted his achievements (without exaggeration), he'd be much better situated right now.

Instead, he squandered his resources on a costly anti-gambling rant (seven TV spots) which, everyone agrees, was a complete and total failure.

He invested heavily in this Kentucky Central nothingburger, which has every major newspaper in the state asking, "Where's the beef?"

Politically, this administration has been a disaster, and that has cost us all.

We're going to cut our losses on Nov. 6. After that, you'll see how far and fast the Commonwealth can advance with good government AND good politics.

[NurseTeacher]

8:36, I appreciate your opinions, but do you honestly think Bashear is in this to better our State, and to do it honestly, and ethically. Are you totally convinced he is not going to end up humiliating Ky with the Ky Central business? A lot of us lost alot of money we invested in KC, and you can be assured we are working on a class action lawsuit right now. The attorney I have been talking to WAS for Beshear, but he has changed his mind.

With few weeks before the election maybe Fletcher will get it. those people mentioned like Sharfe are the reason he's in this mess. He and his crew trusted a whole bunch of folks that smiled laughed slapped hands and then stabbed them in the back first chance they got!

[Ida Hotapper]

How exactly did Beshear save anyone's pensions? It's my understanding that policyholders and creditors were eventually made whole, but that shareholder/investors lost everything. I'm sure I'm missing something here. Any good lawyers in the house?

NurseTeacher. What were you thinking when you bought stock in Kentucky Central or any other company, for that matter. You were quite happy when the stock was going up and up and up--right? It's call risk versus reward. And don't forget Bulls make money, bears make money, hogs don't make money. You should have sold while the stock was going up and you wouldn't be crying now. People lose money on stocks every day and lawsuits get filed every day by people who complain about having lost their money. In the end, you'll get nothing just like the rest of us who have been down that road. Sorry, but if you want to invest with the highest certainty of not losing your shirt or blouse, buy a Certificate of Deposit and stop crying.

NEWS FLASH !!!!

You read it here first..........
SEC seeks indictments of Brasher. FBI raid grahm's home and find notes from Brasher and others that puts them togather in money scam and joint accounts........ more to follow....... hum would be interesting

would it not be nice to have the truth about these two running for gov. like if fletcher tryed to really hire republicans and if brasher really tried to protect the louisville bank on there investment. would it not be great to know which guy really is a good person and has the people of Ky at heart and not self interest.

something else thats interesting. if the non-merit person named duncan got his job back from a judge and back pay, does that mean all non-merit employees just go on working after the election no matter who wins. hummmmmm thats a first i think . no one goes home and the gov only has 9 people to appoint. the sec positions . well that wont take long.

12:00 am - Duncan was a merit employee.

Beshear had "general knowledge" that lawyers in his firm were manipulating ways for Bank Of Lou. to sell $15 MILLION dollars in securities without telling Don Stephens.

Once Bank of Lou sold that $15 Million securities without teling Stephens Steve Beshear & his law firm broke ethics laws & SEC laws.

That is the basis for a class action lawsuit.

Enron sounding familiar?

[Beshear4Sure]

Enron? If you are at all familiar with the Enron and Tyco cases, you would know that there have been a myriad of lawsuits brought against the accounting firms, lawyers, and others peripherally involved in the downfall of these two giant firms. All of these lawsuits have failed. The only ones held accountable for the failure of these companies and the loss of stockholders' investments are the CEOs, who have been criminally charged, found guilty, and ordered to pay restitution. Whatever class action suit of which you may be dreaming could only be brought against Stites and Harbison, as a firm; Stephens, as the liquidator; the Board of Directors of Ky Central; and, oh, let's not forget the Ky Department of Insurance who managed the whole bankruptcy. The post at 11:45 p.m. was right on. If you can't stand the risk of investing in stocks in any company, then don't. Policyholders were made whole thanks to Stites and Harbison and the other law firms handling the bankruptcy when they collected millions from creditors. There will be no lawsuit against any of the parties involved in Ky Central as it was all brought to light, remedies put in place, and the matter closed by the Ky Department of Insurance. Stop beating a dead horse.