Federal authorities are investigating whether Georgia House Speaker Terry
Coleman used campaign donors' money to pay personal expenses, including
mortgage payments on an Atlanta condominium, Coleman's lawyers confirmed
Friday.
Investigators have subpoenaed documents concerning Coleman's downtown
Atlanta condo as well as other personal, business and campaign records,
attorneys said. Investigators also have collected investigative files from
the State Ethics Commission regarding past ethics complaints against
Coleman.
Telephone calls placed to Coleman's office seeking comment from the
speaker were returned by two attorneys who represent him. They said Coleman
has not done anything illegal.
"We're aware they've interviewed several witnesses," said Atlanta
attorney Page Pate. "It's very confusing to us. We've not been able to find
any illegal conduct."
Pate said investigators have not asked to interview Coleman. The attorney
said the investigation began "a couple of months ago," after the
Legislature convened in January.
"We have no idea why the federal government would be interested in this,"
Pate said. "I don't see any [federal] jurisdiction over this."
U.S. Attorney Richard K. Thompson, whose Savannah-based office is
spearheading the investigation because Coleman's hometown is within his
jurisdiction, declined to comment.
Rising Democratic star
Coleman, 59, a Democrat from the Middle Georgia town of Eastman, was
first elected to the Legislature in 1973. He was elected to the powerful
speaker's post this year after his predecessor, Tom Murphy (D-Bremen), lost
his legislative seat in November.
Winning the speakership in a bitter battle with Rep. Larry Walker
(D-Perry), Coleman emerged in January as one of the state's top politicians.
As speaker, he holds key influence over the state's $16 billion budget,
committee assignments and virtually all important legislation. With
Republicans now in control of the governorship and the state Senate, Coleman
is one of Georgia's highest-ranking Democrats.
Coleman has been the subject of at least two ethics complaints in recent
years.
In 1997, the Ethics Commission fined Coleman $6,500 for violations of
ethics laws, including filing numerous inaccurate disclosure reports,
transferring more than $14,000 from his campaign to his personal account and
not reporting interest earned on campaign funds.
In 2001, an ethics complaint accused Coleman of improperly converting
campaign money to his personal use by making monthly payments on his Atlanta
condominium since 1997. That complaint is still pending before the State
Ethics Commission.
The Atlanta Journal-Constitution reported last year that
Coleman was one
of at least seven lawmakers who had billed their campaigns for lodging while
accepting state money for expenses while in Atlanta. The state pays
lawmakers $128 a day for lodging, food and other expenses when the General
Assembly is in session.
Coleman reimbursed his campaign $38,120 in January.
His condo, one of 16 purchased by state legislators at the Landmark in
downtown Atlanta, belongs to Nameloc, a company controlled by Coleman that
runs two Huddle House restaurants in Middle Georgia. Nameloc is Coleman
spelled backward.
Coleman's company purchased the condo in 1997 and began billing the
$907.64 monthly mortgage to his campaign. Coleman has paid the mortgage from
his campaign account an average of nine months a year, and has said he used
his own money to cover the other months.
His financial disclosure reports show Coleman has used campaign funds
since 2000 to make car payments totaling $7,425 and condominium maintenance
fees of $2,456.
Georgia law doesn't directly address the issue. The law says officials
may use "excess" campaign contributions to pay for "ordinary and necessary
expenses" incurred from campaigning or holding office.
Like Pate, Eastman attorney Jim Wiggins, who also represents Coleman,
said he is perplexed by the federal investigation. Wiggins, a former U.S.
attorney for the Middle District of Georgia, said he helped investigators
carry two boxes of records from his office.
Asked if he is aware of any wrongdoing by Coleman, Wiggins replied,
"Absolutely not."
"We have instructions from Mr. Coleman to represent him and do the best
we can but not to try to hide anything," said Wiggins. "He lives in a glass
house."
