My Formal Complaint on Melinda Wheatley to the Texas Ethics Commission Accepted

I received a certified letter today from the Texas Ethics Commission stating that they would accept my formal complaint.

Melinda Wheatley has 25 business days to respond to the TEC (about Aug. 8th). The letter to Wheatley from the TEC states "Failure to respond will constitute a separate violation for which a separate civil penalty may be assessed"

The Violations I submitted to the TEC about Melinda Wheatley on June 27th, 2006:

III. NATURE OF ALLEGED VIOLATIONS

305.006. Activities Report
305.010. Timeliness of Filing Registrations and Reports
Lobbyist Melinda Wheatley has failed to file TEC Activities Reports, for public inspection, for each month of the Years: 2005, 2004 and 2003.

305.006. Activities Report
According to the City of Austin Accounts Payable division, Wheatley was paid $30,000 in compensation in 2005. Wheatley reported only $10,000 to $25,000 was earned on the TEC 2005 registration form. (See attached contract from City of Austin and or contact City of Austin Accounts Payable to confirm $30,000 compensation)

305.005. Registration
Melinda Wheatley has failed to register for the year 2006.

305.006. Activities Report
Wheatley failed to list compensation of $7,000 a month plus expenses from J.P. Morgan in 2004.

IV. STATEMENT OF FACTS

Texas Comptroller Strayhorn’s report, “Central Texas Regional Mobility Authority:
A Need for a Higher Standard”, March 2005 states that Melinda Wheatley “performed lobbying work” and received compensation of $7,000 a month plus expenses from J.P. Morgan: (see Comptroller report attached, page 34)

“Informative Efforts: The principals of this public relations firm are Cathy Howell and Melinda Wheatley, who are subcontractors for Nancy Ledbetter Associates, which in turn contracts with HNTB. Their relationship with the transportation industry may represent a potential conflict of interest. Informative Efforts had a consulting arrangement with JP Morgan Securities Inc., a CTRMA contractor, and was paid a retainer fee of $7,000 per month plus expenses. The Austin office of JP Morgan Securities indicated that Informative Efforts Performed Lobbying work and that it was a short-term contract terminated around March 2004. Melinda Wheatley was Informative Efforts’ primary contact with JP Morgan Securities.

Wheatley was listed on the 2004 Texas Ethics Commission lobby list for only one client, TransCore, a sponsor of Team Texas. This company provides services and products that enable toll authorities to manage transactions using toll tags. As such, TransCore is a potential CTRMA contractor.”

The CTRMA invested $284 million in a J.P. Morgan Money Market Fund in 2005. J.P. Morgan Securities is also part of the Cintra Trans Texas Corridor Team.

Up to $1 billion dollars of TxDOT Fund 6 bonds is controlled by J.P. Morgan Securities, which acts as the senior manager for the initial issuance. Fund 6 revenue bonds are backed by state highway revenues and anticipated federal transportation appropriations.

Soon after the Comptroller’s report, TransCore, one of Wheatley’s clients, received a multimillion dollar contract with TxDOT in Sept. 2005. The contract allows for the initial release of 500,000 eGo Plus RFID tags, branded locally as TxTag, with a total of 2 million tags over two years.

The Texas Council of Engineering Companies (TCEC) includes transportation companies such as URS, HNTB, PBS&J & Carter & Burgess, Inc. All of which have received numerous multimillion dollars contracts involving Central Texas Toll Roads.

Melinda Wheatley’s relationship with State Rep. Mike Krusee is common knowledge at the Capital. Mike Krusee is also Chair of the Transportation Committee for the House of Representatives as well as author of legislation that Wheatley’s transportation clients profit from. It is crucial that Melinda Wheatley, with her unique influence on transportation in Texas, files legally required, timely, truthful reports.

In 1999, the Attorney General’s office sued Melinda Wheatley for failing to pay an earlier TEC delinquent account. The Bankruptcy and collections division of the AG’s office won a Travis County Court judgment that includes attorney’s fees, court costs and 10% annual interest on the judgment that continues to grow each year.