ANNAPOLIS | Gov. Martin O’Malley said Wednesday that he supports reforming a campaign finance system from which he and other Democrats have benefited immensely over the past decade.
“I’m open to any ideas that modernize and update our campaign finances,” he said.
Mr. O’Malley’s statement follows a series of investigations involving Democratic lawmakers in Maryland who also received large contributions from developers who used loopholes in the state’s campaign finance law to give the money.
Mr. O’Malley received more than $56,000 from Baltimore developer Ronald H. Lipscomb, who is the focus of a six-month state investigation. No charges have been filed.
Mr. Lipscomb also this week was reported to be in a personal relationship with Baltimore Mayor Sheila Dixon when she was on the City Council and while she was voting on multimillion-dollar tax breaks for his company. Mr. Lipscomb since 1999 gave nearly $489,000 to Maryland politicians through more than 50 companies registered in his name.
State prosecutors raided Mrs. Dixon’s home June 17, four days after Baltimore County developer Edward St. John was fined $55,000 by the state prosecutor’s office for giving more than $300,000 to Democratic and Republican candidates through his company’s vice presidents and companies registered to his company. No charges have been filed against Mrs. Dixon.
In March, Mr. O’Malley and Baltimore County Executive James T. Smith Jr., a fellow Democrat, announced the state would construct a new highway ramp near Mr. St. John’s $79million, 36-acre business park in Baltimore County. As mayor of Baltimore, Mr. O’Malley also approved tax breaks for Mr. Lipscomb.
Mr. O’Malley and Mr. Smith received a collective $25,000 from Mr. St. John.
The Michael Cos. - which leases space to a grocery chain included in a federal investigation into state Sen. Ulysses Currie, Prince George’s Democrat - gave close to $300,000 to candidates through companies registered to the company and its executives.
On May 29, federal agents raided Mr. Currie’s District Heights home and Shoppers Food Warehouse’s corporate headquarters in Lanham. No charges have been filed in that case, either.
Maryland law bars individuals from giving more than $4,000 to a candidate or more than $10,000 total during an election cycle, though large developers and businesses frequently skirt the law by giving through limited liability corporations, or LLCs.
Advocates for government reform have tried unsuccessfully for years to close the “LLC loophole,” but say that recent revelations of mega-developers funneling hundreds of thousands of dollars through LLCs, have bolstered their efforts.
“Every year new outrageous revelations come to light of abuses of this loophole,” said Sean Dobson, executive director of Progressive Maryland, which has long lobbied to close the loophole. “I hope finally that we have reached the tipping point and the lawmakers will close this.”
Mr. Lipscomb and Mr. St. John gave to Mr. O’Malley’s successful 2006 election.
State prosecutors raided Mr. Lipscomb’s Doracon Contracting Inc. offices in November and appear to be focusing on the tax breaks his companies received from the city. Mrs. Dixon recently acknowledged having the relationship with Mr. Lipscomb in late 2003 and early 2004, when she was City Council president and separated from her husband. She now is divorced.
Mr. Lipscomb bought Mrs. Dixon a gift certificate to a posh Baltimore County furrier and apparently purchased her airplane tickets to Boston, Denver and New York from 2003 to 2004, according to an affidavit obtained by the Baltimore Sun.
The state prosecutors office will not confirm or deny ongoing investigations.
Mr. Lipscomb donated more than $489,000 to Maryland politicians through companies registered at Doracon’s main office in Baltimore and other LLCs identified by state prosecutors in the affidavit.
Mr. Lipscomb and executives and workers at Doracon Contracting also have also given more than $290,000 to federal campaigns, including more than $21,000 to former Rep. Albert R. Wynn, Maryland Democrat, and more than $84,000 to the Democratic Congressional Campaign Committee.
The Michael Cos. donated more than $21,000 to Mr. Currie and nearly $300,000 to other Maryland lawmakers over the past decade.
The donations came through executives in the company, their wives, and LLCs registered with the state at the same address as the Michael Cos.
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