WKOW-Tony Galli: WHEDA officials delayed disbursement of $1 million to a company selected in a state contract process, until the company can verify it followed federal, conflict-of-interest rules. Capital Midwest Fund II will have to show it adheres to U.S. Securities and Exchange Commission rules to protect against "pay-to-play."
Fund manager Stephen Einhorn won the contract one month after Einhorn and his wife, Nancy, contributed a total of $25,000 to Governor Walker's campaign to stop his recall. Walker appoints WHEDA's executive director and eight of its twelve member board.
Here’s the rule:
SEC rules adopted in 2010 "prohibit an advisor from providing advisory services for compensation - either directly or through a pooled investment vehicle - for two years, if the adviser or certain of its executives or employees make a political contribution to an elected official who is in a position to influence the selection of the adviser."
And the “proof” Walker committed no wrong doing? He said so:
A spokesperson for Governor Walker told the Milwaukee Journal Sentinel politics played no role in WHEDA's selection of Einhorn's company.
That's good enough for me?