Exclusive Report

By Kenneth C. Rossignol

ST. MARY’S TODAY

LEONARDTOWN — Influence peddling can take a lot of forms, sometimes even in the form of an educational foundation such as run by St. Mary’s Commissioner Jackie Russell (D. St. George Island). How much influence developers who competed with enviro-whackos in the last election to fill the campaign coffers of Russell, actually had was easily seen in Russell’s actions since he was elected.

The answer as to why Russell, who campaigned in 2006 as a slow-growth environmentalist, bagged that game and became the darling of the developers, is now clear.

The record he has built, as shown by his votes to expand the Lexington Park Development District for one developer, buy another developer’s property on Indian Bridge Road, which bailed him out partially as he sunk into bankruptcy and to give another developer industrial zoning on 600 acres of land in the Oakville area without a public hearing.

As Russell’s skipjack foundation floats along, the answer as to possible influence peddling, or even ‘paddling’ may be blowing in the wind.

Pull up a bottle of wine to read this story, or even get a bottle of rum and you can put in a DVD of Pirates of the Caribbean and hum along, "ho, ho, ho and a bottle of rum." It will be a perfect way to understand more about the culture of corruption in St. Mary’s County, Md.

Capt. Jackie Russell built "The Dee of St. Mary’s" a skipjack, along with another local waterman, about 30 years ago.

The vessel is a modern day reproduction of the relics of the era when the Chesapeake Bay hosted the world’s largest fleet of wind-powered sailing vessels which still worked the water up until the mid-sixties.

One by one, these proud boats, which used to put on an annual Skipjack Race under the Bay Bridge sank or rotted away, and just like the watermen who once hauled the Bay’s treasures from the bottom to trucks on shore, have virtually disappeared.

The Washington Post would occasionally come down and write lengthy articles about the vanishing watermen, the Maryland and Federal lawmakers would pass new laws spending money to clean up the Bay and would issue press releases claiming that they were "fighting" to save the Bay. Most folks know how that all turned out.

Russell, an active waterman for many years, is now a prolific politician who has parlayed his supposed environmental bent, complete with a college education he hides very well, into a living.

Instead of fishing, crabbing, oystering and trucking his catch up the road to market, he instead now fishes around for government grants and donations from the developers and lobbyists he regulates with land use policies.

According to tax records of the foundation that he created, Russell has a good hustle.

His foundation, the Chesapeake Bay Field Lab, Inc., rents his boat, the Dee of St. Mary’s. It also rents his oyster house, pays for maintenance provided by him and a dock, that he also owns, to park the skipjack.

In addition, the foundation pays Russell and his wife salaries.

Gifts, grants and other contributions, such as the annual payment of tax funds by the State of Maryland has risen from $26,467 in 2004, to $31,996 in 2005, to $71,574 in 2006, dropping off in 2007 to $34,153 and up again to $76,601 in 2008.

Receipts from student and school groups accounted for $70,596 in revenue in 2004, $123,682 in 2005, $71,538 in 2006, $105,196 in 2007 and down to $76,601 in 2008.

The total income for the last year reported was $142,167 in 2008.

Russell appoints the board of directors of his foundation, a fact which displeased at least one volunteer director who quit in 2006 saying that the board lacked any real authority as Russell’s wife was in charge. Imagine that! Viki Volk, Russell’s wife, the former Enterprise reporter, being bossy with a bunch of nosey volunteers wanting to look at the books.

In addition to the leasing of Russell’s oyster house, boat and pier in 2008, for $60,767, the foundation also paid the $2,733 in real estate taxes, which might explain why Russell doesn’t mind raising taxes on others. In spite of two consecutive years of Commissioner Larry Jarboe proposing that St. Mary’s lower the tax rate to make up for higher assessments on property, Russell has voted to allow taxes to go up while property values have dropped.

The Jackie Russell skipjack foundation claims that it provides "maritime and preservation education venue for school / youth groups and learners of all ages via on-board and shore side classrooms." Russell’s educational season runs from April to November and his tax filings report that 150 groups of 8-25 students visit each season.

While Russell sits on the Board of Directors, his wife, Viki Volk-Russell has also held a seat on the board as recently as 2007.

IN the 2006 filing, the Chesapeake Bay Lab stated that the lease for the skipjack was $3,000 a month through that year and would increase to $3,500 a month thereafter. The lease included all maintenance and insurance that year, although other filings indicate that various maintenance was not included.

Insurance of $4,893 was also paid on top of the lease by the foundation in 2008, according the filings with IRS and the books are kept by Viki Volk-Russell. The filings are prepared by Mary Ann Murray, a Lexington Park accountant.

Each year the Russell’s foundation puts on a fundraiser at the Harry Lundeberg School of Seamanship where attendees pay $100 each for dinner.

Those with business before St. Mary’s County, such as developers and builders are wise to attend and buy tickets, as many of them have done.

Like many operations that still exist in this Great Recession, the skipjack business and outdoor classroom has hit some rocky waters and in 2008, reported a $20,987 loss which was covered by a fund balance in place at the start of the year.

Unlike political contributions, the names of those who attend Russell’s annual skipjack fundraiser are not publicly disclosed.

In the latest filings of contributions to the political committee set up by Russell, known as "Friends of Jack Russell for St. Mary’s Commissioner President", which are publicly disclosed, are contributions from American Service Technology Inc. of $500 on Jan. 12, 2010, another $300 on July 31, 2006.

A $100 contribution was recently made by Frank Taylor, a former chairman of the Democratic Central Committee, who while chairman made a $500 contribution to the campaign of Republican Commissioner President Tommy McKay.

Taylor’s donation came on Jan. 12, 2010, at the same time a key zoning review as part of the comprehensive plan is being conducted, a review that includes a request to give industrial zoning to Taylor’s gas retail office and storage facility which is located in the heart of the Lexington Park business district. On Sept. 11, 2006, Taylor also made a donation of $100.

Walden Counseling Center Director Kathleen O’Brien, present chair of the Democratic Central Committee and who’s counseling center is highly dependent on funds from the St. Mary’s Commissioners, instead of keeping an arms-length from a key vote that pays her salary, ponied up $100 to Russell’s campaign. She and her husband have made several donations of $100 each since 2006.

Liberal Republican Paul Chesser, who was county commissioner from 1994 to 1998, and who was defeated for reelection in 1998 by liberal Democrat Joe Anderson, donated $100 to Russell’s campaign on Oct. 18, 2009. This was the second such donation from Chesser to Russell.

The firm has the following statement on its website, which explains their investment in Russell:

Osprey utilizes the extensive real estate development experience of its principals to enable itself and its investors to participate in the higher returns available earlier in the development cycle. Osprey looks for opportunities where there is a significant potential to increase economic value through its knowledge and expertise including:

· Land acquisition, assembly and rezoning.

· Acquisition of existing properties where there is the ability to increase value through market repositioning or upgrading management and improving operations.

· Development of property in locations where future demand growth is predictable.

· Investment in operating companies that possess a competitive advantage in their specific business that can be translated into superior returns.

Real estate settlement attorney John Weiner gave Russell a $300 contribution on Oct. 16, 2006.

Mayjack Inc., a development firm owned by lawyer Tom Daugherty, -$250 and another $200 on July 25, 2006, and another $250 on Oct. 20, 2006.

Other builders lined up to put money in Russell’s campaign treasury. Pembrooke LLC - $100; and John Parlett - $100; Brooks Run Builders $250. The Building Industry PAC gave Russell $250.

When out of town real estate interests fork over money, it’s for one reason, development.

Bruce D. Mulno, a real estate agent with Federal City Mowbray Associates in Washington DC gave Russell $100 on Dec. 29, 2009, according to Maryland election records of information filed by the Friends of Jack Russell. Even though Mulno can apparently give money to Russell’s campaign, let’s hope he doesn’t show up to vote this fall as he died on April 5, 2008. Mulno also donated $200 while he was alive on Sept. 26, 2005.

While it might be legal for dead folks to give money, the Maryland State Prosecutor’s office has investigated past instances of allegations of political donations being made by persons who used the money of others. Mulno, being deceased, won’t be at risk of prosecution while whoever did fund the money into Russell’s campaign could wind up behind bars.

Marc Cohen, who figures prominently in various developments: $50 on July 31, 2006.

Mortgage broker Barry Friedman gave Russell’s campaign $100 on July 31, 2006 and after the heated primary was over and Russell faced only token opposition, Friedman gave Russell another $100 on Oct. 28, 2006.

Developer and Oil Company owner Sonny Burch donated $300 from Burch Properties LLC on August 7, 2006.

John Depenbrock, of Silver Spring, a financial services advisor, donated to Russell’s campaign the first of four times with $1,000 on Sept. 19, 2005, and gave a donation to Russell of $1,000 on Feb. 16, 2006 and again donated $1,000 to Russell’s campaign on July 25, 2006. On Oct. 16, 2006, Depenbrock tossed in another $500.

Angela Funya, of Lexington Park, who was an employee of Russell’s skipjack foundation in 2006 apparently like her skipper a lot as she forked over $500 to his campaign on June 6, 2006.

Russell, who also is an employee of the Seafarers Union’s School of Seamanship at Piney Point when he isn’t being a county commissioner or a eco-tour boat captain, has picked up donations of $1,000 each on two separate dates, Oct. 20, 2006, from the Seafarer’s.

Robert Schmidt, the CEO of Great American Broadband and a resident of the estate in Park Hall known as Glen Mary Farm donated $500 to Russell’s effort on June 6, 2006. On Nov. 1, 2006, another check for $500 was given by Schmidt to Russell.

According to the website for Schmidt’s firm, "GAB’s mission is to grow into the premier provider of wireless broadband services in rural America. Our immediate goal is to create a geographical footprint with a potential addressable market of a minimum of 300,000 households."

The placement of communications towers is regulated by the county commissioners.

Patrick Hiu, of Woodbridge, Va., is another of the heavy hitters who have kicked in $1,000 to Russell’s campaign. Hiu, a lobbyist in Washington, D.C. was part of the PMA Government Relations firm that, according to Roll Call newspaper, had its offices raided in 2008 as it was linked to Rep. John Murtha, who had many of his earmarks go to clients represented by PMA.

Hiu and seven other members of the firm bolted and formed their own company after ABC did a special report on the cozy relationship between the government lobbying firm and Murtha. Hiu’s donation to Russell was made on March 18, 2006.

Russell, Francis Jack

St. Mary’s Commissioner Jack Russell (D. St. George Island) is ready to rumble in 2010:

Cash Balance

Prior Balance 298.65

Total Receipts +3,990.00

Total Expenditures -816.33

Report Calculated Cash Balance 3,472.32

Total Bank Account Balance 3,472.32

Former St. Mary’s Commissioner Tommy McKay’s failed state senate campaign is still in the hole as of Jan. 20, 2010:

Outstanding Obligations

Outstanding Loan Balance

33,659.44

Outstanding Bills Due 9,824.18

Total Outstanding Obligations

St. Mary’s Commissioner Kenny Dement’s (R. Piney Point / Wildewood) breakfast tab eats up ticket take:

Dement, Kenny - Commissioner, Friends For

Crystal Room $7,584.00

10/25/2009

Room and Catering

Another $4,000 in printing and postage reduced Krazy Kenny’s campaign war chest: 2009 campaign results

Prior Balance 12,322.38

Total Receipts +19,086.97

Total Expenditures -12,044.27

Calculated Cash Balance 19,365.08

Total Bank Account Balance 19,365.08

The previous year, Dement did much better, but then again, he did raise taxes again. 2008 funds

Cash Balance

Prior Balance 0.00

Total Receipts +24,850.00

Total Expenditures -12,527.62

Report Calculated Cash Balance 12,322.38

Total Bank Account Balance 12,322.38