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untanglingwebs
El Supremo
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State officials 'embarrassed' after learning $9M in tax credits went to Richard A. Short, convicted embezzler
By Kristin Longley | Flint Journal
March 17, 2010, 8:45PM
Hollyn Johnson | The Flint JournalThe Flint Township mobile home where Richard A. Short was arrested Wednesday afternoon. He is suspected of violating his parole, state officials said.
FLINT, Michigan — In a borrowed bedroom in a friend’s mobile home, Richard A. Short often worked hard, building from the ground up the company that eventually would land $9 million in tax credits from the state of Michigan, a friend said.
But Short failed to do one thing — tell his parole officer.
Now, the convicted embezzler is under state investigation after his parole officer saw media footage Wednesday of Short talking about bringing an $18.5 million investment and 765 jobs to Flint with his new cutting-edge company, Renewable and Sustainable Cos., or RASCO.
The revelation of Short’s criminal history shook the state from the governor’s office on down. The Michigan Economic Development Corp. said it was “embarrassed” by the matter and will be tightening its screening guidelines for the tax credit program.
State and local officials said Wednesday, the day after Short’s company was granted $9 million in tax credits, that they had no idea Short was on parole in Genesee County after being sentenced in 2002 for embezzlement. He also had fraud convictions in Oakland and Genesee counties.
A Michigan Economic Development spokesman said that it’s “unclear” whether the Michigan Economic Growth Authority tax credits worth $9.1 million approved Tuesday will move forward, or if there are any legal ramifications that would void it.
Short’s parole officer also didn’t know that Short had formed RASCO or that he was working as its chief executive officer, said Russ Marlan, spokesman of the Department of Corrections.
And, only 24 hours after he shared a stage with Gov. Jennifer Granholm to speak about the $9 million in tax credits, Short was arrested for a possible parole violation at the Flint Township mobile home where his friend Linda Lock said he had lived with her for free because he couldn’t afford rent.
Attempts to reach Short, 57, on Wednesday were unsuccessful.
Lock, 62, said Short was trying to move past his embezzlement convictions — in part by bringing RASCO and grandiose plans for hundreds of jobs to Flint.
“He paid his dues in jail. He’s moving forward and he’s doing nothing but good,” Lock said Wednesday. “People do change, and I really do believe he changed.”
Former Genesee County Prosecutor Arthur Busch remembers convicting Short of a fraud-related charge several years ago and said state employees should have known about his background before his company was granted $9 million in tax credits.
He called him “very skilled and very manipulative.”
“He’s got just an extensive criminal history. He has a history of scams,” Busch said. “To give money to a project like that ... shows gross negligence (by) the people who did the homework on this.”
Court documents from his 1999 conviction of attempted uttering and publishing in Genesee County also show Short once had a woman pose as his estranged wife so he could obtain a mortgage on his home. Short worked as a sales administrator at Delphi at the time, records show.
After obtaining a check for more than $73,000, Short admitted fraudulently signing his estranged wife’s name on the check and cashing it in a personal bank account, according to the court documents.
He was sentenced to a year in the Genesee County Jail, and after his release he was sentenced to three years in prison for violating his probation, according to the documents.
Short also was convicted in 2002 of embezzling money from Harding Energy Corp. of Norton Shores when he was the company’s president. He also has prior fraud convictions in Oakland and Genesee counties.
Marlan said Short “owes $96,000 in restitution from prior fraud activities.”
The corrections department’s Web site shows Short will be under parole supervision until Jan. 3, 2011
On RASCO’s Web site, Short calls himself a “charismatic leader” who graduated from the University of Missouri. But Genesee County court records say Short was never a student there.
Lock said she met Short a few years ago, after he had been released from prison.
“He sat at the computer next to me at the career center,” she said. “We got to talking and he told me his story and I felt kind of sad. When you get out of prison you have nothing.”
Lock and Short soon became friends, Lock said. She let him live in her home and he often helped care for her elderly mother.
She said Short had been working on the RASCO deal for about a year. The company, Short said Tuesday, would manufacture and ship renewable energy resources to bring essential services like water, power and wireless Internet, to developing nations overseas.
State records show he formed the company in June.
“He wants to help people in the third world live a better life,” Lock said. “That has become his passion.”
But Flushing resident Dave Delaney wonders how the state could grant $9 million in tax credits to a company formed less than a year ago.
“What does he know about renewable energy?” he said. “Why didn’t the state do its due diligence.”
In a statement issued Wednesday, Granholm’s spokeswoman said the MEDC has been directed to ensure this doesn’t happen again.
“She is disappointed,” Spokeswoman Liz Boyd said of the governor. “It bears noting and repeating that the state has lost nothing from yesterday’s approval of the MEGA for RASCO, which is now on hold. There is no up-front cash involved in this award.”
The MEDC issued a statement Wednesday that it was embarrassed by the news of Short’s background.
“The MEGA board will look at all its options,” said Nate Pilon, an MEDC spokesman. “The MEGA award goes to the company, not an individual.”
The MEDC said in its statement that in the future it will require that companies applying for MEGA credits disclose any prior felony convictions by senior executives and that the state will perform a background check of all company officers before a final MEGA award is given.
“My hope is that it (the RASCO project) moves forward because it means a lot of jobs for Flint and for Michigan,” Pilon said.
Staff writers Laura Angus, Melissa Burden, Ron Fonger, Beata Mostafavi and photographer Hollyn Johnson contributed to this report. |
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Wed Mar 17, 2010 8:31 pm |
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andi03
F L I N T O I D
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quote:
munnbreslin schreef:
This is too bad. Lets hope no laws were broken or that the Christian ideology of second chances shines through. And I can, unfortunately, garuntee that now that a positive story has turned negative, the comments will pile up. This will truly show the colors of Flint Talk unfortunately. Here it comes.
Dude he's a con artist plain and simple...
check the Michigan OTIS records, three sentences, one for uttering and publishing and a bunch of others.
Crooks, crooks everywhere and not a dime to spare. |
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Thu Mar 18, 2010 5:17 am |
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Dave Starr
F L I N T O I D
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| Better to find out now then later. |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Thu Mar 18, 2010 7:26 am |
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untanglingwebs
El Supremo
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| The state and Flint owe Patrick Clawson big time! Bankerts blog shows Clawson revealed the scam in Lansing. clawson is a former CNN reporter now living here and working as a private investigator. |
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Thu Mar 18, 2010 8:52 am |
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untanglingwebs
El Supremo
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Dave Starr
F L I N T O I D
Chicago coverage
http://www.chicagotribune.com/business/sns-ap-us-tax-credit-embezzler,0,2529938.story
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This is a quote from the story cited above :
"Short shared the stage Tuesday with Gov. Jennifer Granholm as she introduced the leaders of companies awarded $55 million in tax credits. She said RASCO — short for Renewable and Sustainable Companies LLC — planned to invest $18.4 million to establish a new headquarters in Flint.
The company filed articles of organization with the state last June. In it, Short said the company was formed "to engage in any activity within the purposes for which a limited liability company may be formed" under Michigan law. No more detailed purpose was given."
Another story revealed Short embezzled from an energy company in 2002. Did he manufacture a bio and resume to substatiate his credentials.
The Office of Inspector General put out training materials involving fraud in the use of stimulus money and cited the recent formation of a company as a risk factor to be considered. |
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Thu Mar 18, 2010 9:02 am |
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00SL2
F L I N T O I D
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Webs, do you read your private email?
quote:
untanglingwebs schreef:
The state and Flint owe Patrick Clawson big time! Bankerts blog shows Clawson revealed the scam in Lansing. clawson is a former CNN reporter now living here and working as a private investigator.
Since you reference Terry's blog and I don't want this to get lost over there:
Richard Short, head of company that received $9M in tax credits from state, linked to felony embezzlement,
By Kristin Longley | Flint Journal| March 17, 2010, 1:24PM
"The company Renewable and Sustainable Companies, LLC (RASCO) is registered with the state at the same Flint Township mobile home address as a Richard Allen Short, 57, who was convicted and sentenced in 2002 for embezzlement out of Muskegon County."
http://www.mlive.com/news/flint/index.ssf/2010/03/richard_short_head_of_company.html
Associated Press: State Rep. Tom McMillin to hold news conference today to 'demand action',
By The Associated Press | March 17, 2010, 2:57PM
This article links to Kristin Longley's article above, and Alex Harris posted comment:
Posted by alexharris
March 17, 2010, 4:34PM
"It doesn't surprise me one bit that Pat Clawson was at the forefront of exposing this Short's past felony conviction for embezzlement. . . ."
http://www.mlive.com/business/mid-michigan/index.ssf/2010/03/associated_press_state_rep_tom.html
Terry, how did Clawson "break" the story as suggested in "GOOD MORNING FLINT! Pat Clawson breaks a SHORT story 187961"? Kristin Longley's story appeared before the one by the Associated Press, and the Associated Press linked to her story. Is Clawson Kristin Longley's private investigator? |
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Fri Mar 19, 2010 12:35 am |
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terrybankert
F L I N T O I D
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quote:
00SL2 schreef:
Webs, do you read your private email?
quote:
untanglingwebs schreef:
The state and Flint owe Patrick Clawson big time! Bankerts blog shows Clawson revealed the scam in Lansing. clawson is a former CNN reporter now living here and working as a private investigator.
Since you reference Terry's blog and I don't want this to get lost over there:
Richard Short, head of company that received $9M in tax credits from state, linked to felony embezzlement,
By Kristin Longley | Flint Journal| March 17, 2010, 1:24PM
"The company Renewable and Sustainable Companies, LLC (RASCO) is registered with the state at the same Flint Township mobile home address as a Richard Allen Short, 57, who was convicted and sentenced in 2002 for embezzlement out of Muskegon County."
http://www.mlive.com/news/flint/index.ssf/2010/03/richard_short_head_of_company.html
Associated Press: State Rep. Tom McMillin to hold news conference today to 'demand action',
By The Associated Press | March 17, 2010, 2:57PM
This article links to Kristin Longley's article above, and Alex Harris posted comment:
Posted by alexharris
March 17, 2010, 4:34PM
"It doesn't surprise me one bit that Pat Clawson was at the forefront of exposing this Short's past felony conviction for embezzlement. . . ."
http://www.mlive.com/business/mid-michigan/index.ssf/2010/03/associated_press_state_rep_tom.html
Terry, how did Clawson "break" the story as suggested in "GOOD MORNING FLINT! Pat Clawson breaks a SHORT story 187961"? Kristin Longley's story appeared before the one by the Associated Press, and the Associated Press linked to her story. Is Clawson Kristin Longley's private investigator?
Now we know!
Did he not testify before any news media ran the story? I ment no disrespect to Kristin, but my quick read was that he testified first before the media caught wind. As to you..turf is worth fighting for... which is yours.... |
_________________
Join in the discussion here at Flint Talk , Face Book, Google Blogger " Good Morning Flint" , Twitter, Blogging For Michgian" and MLIVE.
If you want to be seen ,show up.If you want to be heard, stand up and speak.Do not wait to follow, just lead. |
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Fri Mar 19, 2010 7:24 am |
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untanglingwebs
El Supremo
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According to M-live a past acquaintance of Short called channel 12 to expose Short after the show aired.
Also his parole officer saw him on tv.
Clawson saw hima nd questioned his credentials. he testified the next day in lansing and created quite the uproar. |
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Sat Mar 20, 2010 10:13 pm |
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Derrick1965
F L I N T O I D
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| Short and Walling make a good team |
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Sun Mar 21, 2010 10:30 pm |
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