Friday, August 25, 2006

Another Burns Buddy Going To Jail?


Late breaking news, It looks like Pat Davison, who resigned less than a month ago as Burn's chief finance officer is in some serious trouble with the Montana State Auditors Office [PDF] and the FBI. Here is the breakdown:

The state auditors office is alleging that since September 1, 2001, former Conrad Burns financial officer Pat Davison has committed several acts of securities fraud by ripping folks off for their retirement money. Several customer complaints that were lodged against Davison while he was employed with Paine Webber were not brought to the attention of the auditor's office, but were instead handled by Paine Weber. However, in August of this year, the Auditor's office was contacted by one of Davison's former customer who said that Davison had approached him with a retirement plan idea.

The complainant invested $500,000 with Davison LLC., an entity owned and controlled by Davison. Additionally, the complainant invested another $250,000 with Qualified Plan Davison LLC. However, both plans seems to be nothing but elaborate scams which took the Montana man for about $750,000. Neither Davison LLC nor Qualified Plan Davison LLC have registered their securities with the Montana Securities Division.

BUT WAIT! There is more. Another complainant, named complainant 2 was approached by Davison about purchasing a school bond that would pay a 7% tax free return to come due in 2012. Davison claimed that the bond was secured by oil and gas royalties and that the non taxable interest would be reinvested. Complainant 2 and spouse of complainant 2 wrote over $275,000 in checks to PPV, an entity owned and controlled by Davison. Davison have provided them statements, but nothing more. The school that the money was supposedly invested in claimed that St Labre Indian School Trust does not exists and there are no gas and oil royalties. Again, PPV is not registered with the Montana Secretary of State's office.

Hmmm. At the same time this was going on, Davison was Burns leading money man. Seems like everyone around Burns is dirty. And this is the worse kind of scum, defrauding folks of their retirement money. What was he doing with that money?

Pat Davison Donations To Conrad Burns Since 2001 $4800
DAVISON, PAT
BILLINGS,MT 59102
DAVISON LLC
9/23/2004
$1,000

DAVISON, PAT
BILLINGS,MT 59102
DAVISON LLC
9/23/2003
$750

DAVISON, PATRICK
BILLINGS,MT 59102
DAVISON LLC
3/31/2005
$1,550

DAVISON, PATRICK
BILLINGS,MT 59102
PAINE WEBBER
2/23/2001
$1,000

DAVISON, PATRICK
BILLINGS,MT 59102
PAINE WEBBER
9/23/2004
$500

Pat Davison Donations To Denny Rehberg Since 2001 $3200

DAVISON, PATRICK
BILLINGS,MT 59102
PAYNE WEBER/STOCKBROKER
12/31/2001
$1,000

DAVISON, PATRICK
BILLINGS,MT 59102
PAYNE WEBER/STOCKBROKER
3/28/2001
$1,000

DAVISON, PATRICK
BILLINGS,MT 59102
DAVISON LLC/ENERGY DEVELOPMENT
7/27/2005
$1,000

DAVISON, PATRICK
BILLINGS,MT 59102
DAVISON LLC/ENERGY DEVELOPMENT
5/5/2006
$200

Source: Open Secrets

Isn't this just the type of dirty money that Monica Lindeen wants to keep out of politics?

Update 0
Jay has some thoughts on this over at 4 & 20

Update 1
According to this AP article:

Davison was most recently the volunteer co-chairman of Conrad Burns' re-election finance committee. The Burns campaign said Davison resigned July 27 for personal reasons. The Burns campaign did not have comment other than to confirm Davison was in a fundraising position.

Personal reasons? Could it be that he knew he was going to be busted in less than a month? Were thinks getting hot for him?

Update 2

Pogie points out that though Klindt is claiming that Davison resigned less than a month ago, their are no readily available press releases about it. If he had indeed resigned, wouldn't you think that would have been announced in some way?

Update 3

Wulfgar is tracking the blogswarm on this Conrad's buddies downfall. Check them all out.

7 comments:

Anonymous said...

Hold off on this.

Wait and see how this plays out.

I've known Pat for 30 years and he seems smart and a good Montana guy. Our own state auditor seems incompetent; I'd vote for Burns over him, thank god Tester won.

Perhaps it will play out as Democrats (now including me) envision, but do not rush to judgement.

Be quiet and let the process unfold.

Anonymous said...

This is a prt of the process.

Shane C. Mason said...

If it is true, then it is a horrible thing. If it is not true then it is a horrible thing they have accused him of.

To me, however, the charges look pretty damning. True, innoncent until proven guilty in courts of law. Not so much on the blogs or the press.

As for Davison, I think that it was becuase of his dirty campaign style in the 2004 primary against Brown that helped Brian become the Gov. I'll give him credit for that.

Our own state auditor seems incompetent; I'd vote for Burns over him,

Give me Morrison over the likes of Burns any day. I too am very glad that Jon won so the we have a candidate that we can really get behind. However, I would take an honest stooge over the likes of Burns.

Shane J. Mason said...

Your name is my name too!

jjjhs said...

Your name is John Jacom Jingle Heimer-Smit?

Anonymous said...

Appearance is everything! If Pat is "smart" then he knows the regulations governing trading. Even if it isn't true, he certainly did not have his clients in mind. He left public accounting for the money, thats the same reason he started lining his pocket with consulting fees for pushing deals through the city. All of our representatives are now career politicians, and Pat had the same aspirations. When this governmental system was established, men who served in a representive capacity where only given a "salary" to keep their businesses they left back home from going under. Not $200k per year, a car service, sponsered apartment, lifetime healthcare/benefits and eventually become a lobbyist shill. I tend to vote republican more than not, but I will vote for the next politician who is ernest about getting in serving, doing their best and getting the hell out, no matter the party.

s.

Shane C. Mason said...

Anonymous,

Couldn't agree with you more. Have you looked at Jon Tester and Monica Lindeen?