While Ehrlich has paid lip service to helping small businesses in Maryland, he has quietly profited politically and financially from his ongoing relationship with Fabian, a politically-connected contributor whose Ponzi scheme bilked small and large businesses out of $40 million in one of the largest white collar fraud cases in Maryland history.
While Fabian’s victims lost millions, Ehrilch profited handsomely, receiving nearly $60,000 in campaign contributions from Fabian, companies he controlled, and his associates. Meanwhile, the state Republican Party received more than $84,000. Around that time, Ehrlich helped Fabian’s company secure a million-dollar state contract.
Additionally, recently uncovered court documents show that, after Ehrlich left office and joined the lobbying/law firm Womble Carlyle Sandridge & Rice, Fabian’s company paid Ehrlich’s Baltimore law office over $55,000 to represent it during Fabian’s criminal trial – while Fabian was committing more fraud against unsuspecting small businesses.
Fabian admitted to defrauding his victims out of about $40 million by falsifying documents and lying about his expenditures. He used the money to buy beach property in North Carolina, fly on private jets, and purchase a yacht and several cars. Federal prosecutors called Fabian “a one-man wrecking ball, inflicting losses of millions of dollars on numerous people and institutions with whom he has come into contact.”
When a federal grand jury indicted Fabian, he was forced to resign as finance chair for the presidential campaign of Mitt Romney, who Ehrlich campaigned with Thursday, June 10. Unlike Ehrlich, Romney returned Fabian’s contribution. Fabian also served as finance chairman of Michael Steele’s 2006 U.S. Senate campaign.
Fabian’s schemes have had a direct impact on small businesses in Maryland. Fabian’s 2009 bankruptcy case listed as creditors numerous Maryland small businesses, and the state of Maryland itself. Fabian reported that he owed the creditors $52 million and had $3.7 million in assets.
Fabian was sentenced to nine years in federal prison. Gov. O’Malley and the Board of Public Works have indefinitely barred Fabian from receiving more state contracts.
Last week, following the Supreme Court ruling on corporate campaign contributions, Senator Cardin was interviewed on “The Politics Hour” of The Kojo Nnamdi Show. Here’s the clip:
As Senator Cardin pointed out, the Supreme Court Ruling has added to the imbalance in U.S. campaigns; it gives more influence to the same corporations and special interests that brought us the Swift Boat attacks.
Prior to the ruling, these groups were able to exercise their rights to freedom of speech within reasonable contribution limits. Now, the Supreme Court has swung the door wide open to limitless influence by corporations in our political system.
While these new rules also apply to unions, they will not come close to matching large corporations dollar for dollar, nevermind grassroots campaigns.
If corporations are wise they will quickly see that it may not be in their financial best interest to take such an overt action in political campaigns, especially when they see the inevitable public backlash.
