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{ Monthly Archives }

June 2008

The Intelligencer: McGraw Won’t End Abuses

West Virginia Attorney General Darrell McGraw is up to his old tricks - expensive ones for Mountain State residents. His pattern of misbehavior makes it clear that McGraw will stop abusing the trust placed in him only if voters withdraw it.

A major complaint made by McGraw’s critics, including us, is his use of private attorneys to handle lawsuits filed by the attorney general’s office. For years McGraw, in filing “consumer protection” lawsuits, has rewarded cronies. He does so by naming them as outside attorneys dealing with the suits.

From start to finish, McGraw’s scheme involving such suits is rotten. As we have pointed out, proceeds of any lawsuit settlement should be paid into the state treasury by McGraw’s office. Instead, he has retained the funds, dispensing them to a variety of “worthy causes” and, in the process, gaining votes for his re-election campaign - which is in progress at all times.

This spring we revealed details of a proposed settlement of one lawsuit, filed by the attorney general against two credit card companies. If the settlement is approved by a judge, the two companies will pay $11.6 million to the attorney general’s office - for use in a special fund to grant consumers tax breaks on energy-efficient appliances. Another $600,000 will go to McGraw’s consumer protection fund.

Nearly $4 million will be paid to four private law firms, including one in Wheeling.

With that case not yet settled formally, McGraw is off to the races again. He has appointed four more private attorneys - three of them responsible for campaign donations to him - to help the attorney general’s office in an investigation that may lead up to another “consumer protection” lawsuit. If it is settled in the state’s favor, rest assured that the attorneys will be paid handsomely.

Years of criticism of his practices have not prompted McGraw to change them. In November, however, voters will have an opportunity to remove him from office. Then, in the general election, McGraw will face a challenger, attorney Dan Greear, who has pledged to end the abuses practiced by the incumbent.

It has been said that “you can’t teach an old dog new tricks.” That may be true - but it doesn’t mean that you have to continue putting up with him. In November, we trust that voters will decide they’ve had more than enough of McGraw’s old tricks - and will vote him out of office.

Original article at The Intelligencer website

2008 06 21

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The West Virginia Record: Feeding Darrell’s Army

Are the only capable attorneys in West Virginia those who contribute to state Attorney General Darrell McGraw?

McGraw challenger Dan Greear felt compelled to ask this week, after his incumbent opponent enlisted four more lawyer-supporters to troll for lawsuits worth filing on behalf of the state.

“Friends of Darrell” Anthony Majestro, James Peterson and Jonathan Turak — along with non-contributor Jim Lees — joined West Virginia’s ever-lengthening roster of deputized plaintiff’s attorneys, as McGraw granted them authority to “investigate” whether the state should sue a life insurance company.

Over the years, those three men, law firm members and families have given McGraw some $30,000 in campaign contributions.

This is serious money in West Virginia. But it’s nothing much compared to what the attorneys stand to make in contingency fees for pursuing what could be a slam-dunk case.

The company in question, Variable Annuities Life Insurance Co., has not been found guilty of anything. It’s only an investigation at this point. But as is often the case, when a company is formally charged by a state government with unlimited resources, it acts quickly to cut its losses. And private lawyers supposedly acting in our behalf hustle to accept, quickly lock-in their fees and claim victory.

The latest case in point: four friendly law firms stand poised to cash in on a proposed McGraw lawsuit settlement between the state and credit card processors Visa and Mastercard.

If a judge approves, Bucci Bailey & Javins in Charleston, Wexler Toriseva Wallace LLP in Wheeling, Hagens Berman Sobol Shapiro LLP in Seattle, and Cuneo Gilbert & LaDuca LLP in Washington, D.C., will share $4 million in fees for their efforts. Creating a storm for these two companies isn’t hard with Charleston’s wind at their backs.

Teresa Toriseva and Guy Bucci are, to no one’s surprise, McGraw donors.

They and McGraw are predictably lauding the deal as a victory for West Virginia consumers.

Perhaps you haven’t noticed the benefits of their efforts? Neither have we. But the lawyers have, as measured in their cut of the millions they have “won” from businesses vital to the state’s residents.

Greear says he’s outraged by this pay-to-play outrage. As taxpayers, so should we.

So are we?

Original article at The West Virginia Record website

2008 06 20

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Dan Greear reacts to McGraw’s unethical practices

Charleston, WV – Charleston attorney and former member of the House of Delegates, Dan Greear, responded to the latest political hires made by Attorney General Darrell McGraw. McGraw appointed four Special Assistant Attorney Generals to aid in an investigation of Variable Annuity Life Insurance Company (VALIC), questioning if the company misled teachers to invest in its low interest fixed-rate annuities.

Jim Lees, Anthony Majestro, James Peterson and Jonathan Turak were the four Special Assistant Attorney Generals appointed by McGraw. Majestro, Peterson and Turak have each donated to McGraw’s political campaign and directed contributions from their respective law firms and family members. Historically, Peterson’s firm has delivered over $20,000 in campaign contributions to McGraw. McGraw has also received contributions from Majestro’s and Turak’s law firms in the past.

Greear weighed in by citing that this is not a first for McGraw, “If you review McGraw’s campaign finance reports and the corresponding appointments he has made during his tenure you will easily spot the parallel.”

“McGraw receives contributions from a number of trial lawyer firms and in return hires those same contributors rewarding them with lucrative employment at taxpayers’ expense,” stated Greear.

“I absolutely refuse to believe the only capable attorneys in this state are those who contribute to Darrell McGraw,” added Greear. “This is yet another example of the arrogant practices of our current Attorney General. He continues to abuse the powers of the Attorney General’s office and most notably, it is always at taxpayers’ expense.”

The West Virginia Legislature has scrutinized McGraw’s office for its history of awarding settlement money at their discretion rather than affording it to the appropriate government agency involved in the case. HB 104 was passed in a special legislative session this year immediately following the regular legislative session. The bill requires McGraw’s office notify the Legislature before dispersing any funds obtained by the office for the people of West Virginia.

Greear cited his continuous position on appointments, “Since day one of my campaign, I have stated our office will only appoint Special Assistant Attorney Generals when absolutely necessary. If there is ever a need for a expertise in a specific area of law, I will implement a fair and open bidding process, open to all attorneys of West Virginia. This will ensure that West Virginians get the best possible legal representation for their dollar.“

Greear is a lifelong resident of Kanawha County, graduating from South Charleston High School in 1986 as a National Merit Scholar. He graduated third in his class from the WVU school of Law in the spring of 1992 where he also served as associate manuscript editor for the West Virginia Law Review. He served in the West Virginia House of Delegates representing Kanawha County’s 30th District in 1995 and 1996. Dan is currently a law partner at the Charleston law firm Kesner, Kesner & Bramble where he has worked for 16 years. Dan currently resides in South Charleston with his wife Amy, a social worker for Kanawha Hospice Care, and their two children, Joshua, 9 and Ben, 6.

Contact:
Greear for AG Committee
Suzette Raines, 304-437-1306

2008 06 16

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