poliquin letter to ethics re income

8/3/2019 Poliquin Letter to Ethics Re Income

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February 3, 2012

F E B 3 2 0 1 2

Mr. Jonathan Wayne, Executive Director

State of Maine, Commission on Governmental Ethics and Election Practices

135 State House Station

Augusta, ME04333-0135

Dear Mr. Wayne:

Please accept this letter asmy response to the complaint filed with the Commission by the

Maine Democratic Party, dated January 18, 2012 (the "Complaint"), As noted in your letter to

me dated January 20, 2012, the Maine Democratic Party has requested that the Commission

look into whether I disclosed the sources of my income on the 2010 Statement of Sources of

Income (the "Statement") filed with the Commission in February 2011.

It is my understanding that a primary purpose of the Statement is to ensure that any source of

income for an executive employee of Maine state government does not create a conflict of

interest for the employee in his/her position as an executive employee of the State of Maine.

It is also my understanding that the Statement is intended to further ensure that an executive

employee is not engaged in any regular business, profession, or other activity that compromises

the employee's ability to give full attention and fidelity to his/her position and responsibilities

as an executive employee of the State of Maine.

I am confident that, based on the information provided herewith, the Commission will

recognize that it was my intent to comply fully with both the letter and spirit of the income

disclosure requirements, and that my sources of income in 2010 created no conflict of interest

and did not in any way compromise my ability to give my full attention and fidelity to my dutiesasMaine State Treasurer.

In your letter to me dated January 20, transmitting the Complaint by the Maine Democratic

Party, you ask that I answer a number of specific questions. I respond below, first, to those

questions. Then, I address the additional issues pertaining to my Statement.

Questions Posed by Your letter, and My Answers:

Question 1: Please explain whether Popham Beach Club is owned by you directly or by a

separate entity. If it is owned by a separate entity, please identify the entity and yourrelationship or position with the entity. When the club receives revenue from membership

dues or events, who receives that income?

Answer 1: I own the Popham BeachClub. It is not owned by a separate entity. The real estate

on which the club is located in Phippsburg has been owned by my family for 45 years. I




February 3, 2012

Page2

acquired the property from my parents a number of years ago. Any revenues, expenses and

income, if any, of the Popham Beach Club are attributed to me personally.

Question 2: In 2010, did you receive income exceeding $1,000 from the Popham Beach Club?

In 2010, the Popham Beach Club had gross receipts of $9,750 from membership dues, which

were more than offset by expenses incurred by that real estate investment, resulting in a net

loss for the year. Because of this net loss in 2010, I did not believe that the Popham Beach Club

should be listed as a source of income to me.

Question 3: Are you a member of Dirigo Holdings, LLC?

Answer 3: Yes. I am the sole member of Dirigo Holdings, LLC.

Question 4: In 2010, did you receive any distribution or Income from Dirlgo Holdings, LLC,

which exceeded $l,OOO?

Answer 4: No. In 2010, J did not receive any distribution or income from Dirigo Holdings, LLC.

Question 5: In 2010, did you receive any income through self-employment? For purposes of

this disclosure requirement (5 M.R.S.A. §19(1)(J)), the Maine Legislature has defined "self-

employed" to mean "that the person qualifies as an independent contractor under [the

Workers Compensation Law] Title 39-A, section 102, subsection 13." In that provision,

"independent contractor" is defined to mean "a person who performs services for another

under contract, but who is not under the essential control or superintendence of the other

person while performing those services."

Answer 5: No,

Question 6: In 2010, did you hold "[a]ny offices, trusteeships, directorships or positions of

any nature," with Dirlgo Holdings, LLC,or the Popham Beach Club, or "wlth any [other] for-

profit or non-profit firm, corporation, association, partnership or business"?

Answer 6: As stated above, I am the sole member and the registered agent of Dirigo Holdings,

LLC,which holds my real estate investment in the Popham Woods Condominium, I am the

president of the non-profit Popham Woods Condominium Unit Owners' Association. I am the

owner of the Popham Beach Club, but do not hold any such offices in connection with the

Popham BeachClub,

I am a limited partner in Zweig-DiMenna Partners, LP,a New York investment managementlimited partnership; C.K.Capital, LP,a Delaware investment management limited partnership;

and Marshall Mall Associates, a Pennsylvania real estate limited partnership. I hold no officer

or director position in these partnership investments. I am not engaged in any way in the

operation or management of these entities.




February 3, 2012

Page3

Complaint by Maine Democratic Party re My 2010 Income Disclosure Statement:

With the information and context provided by my answers to your specific questions above, perhaps the

most effective way to address the Maine Democratic Party's Complaint is to review the pertinent

sections of my Income Disclosure Statement.

PART1: INCOMEDERIVEDFROM EMPLOYMENTBYANOTHER. List the name and address of

each employer from whom you received compensation of $1,000 or more. Specify the

principal type of economic activity of each employer.

This section of my Statement was left blank because I did not have any such income.

PART2: INCOME DERIVEDFROMSElF-EMPLOYMENTOR LAW PRACTICE.

A. List the name and address of your business or law firm, if any, and list the major areas of

economic activity or practice from which you derived income. If associated with a

partnership, firm, professional association, or similar business entity, list the major areas of

economic activity or practice of that entity.

I am not engaged in the practice of law or associated with any law firm. I am not self-employed

in any capacity. I am not an "independent contractor" asthat term is defined by 39-A M.R.S.A.

§102{13), and I had no income from any such activity. Accordingly, I left blank this section of

my Statement.

When completing the Statement, I did not interpret the second sentence of Part 2 (A) to also

request the identification of any entity with which I am associated in connection with my

investments, wholly apart from any self-employment or law practice involvement of which

there is none. Accordingly, I left blank this section of my Statement. I respectfully suggest thatthis section of the disclosure form is,at best, unclear.

As stated earlier, I am the sole member and the registered agent of Dirigo Holdings, llC, the

entity which holds my real estate investment in Popham Woods Condominium located in

Phippsburg. Other than periodically providing funds for payment of expenses and periodically

consulting with the manager/bookkeeper, who oversees the operation and management of

Dirigo Holdings, llC and Popham Woods Condominium, I am not engaged in the operations or

management of these real estate investments. In 2010, I did not receive any income from

these real estate investments.

As stated above, I am a limited partner in Zweig-DiMenna Partners, LPand C.K.Capital, LP,both

of which were listed assources of my income in Part 3, OTHERSOURCESOF INCOME, on my

Statement. I am not engaged in any way in the operation or management of these limited

partnership investments. I have a small limited partnership interest in Marshall Mall

Associates, a real estate investment dating back some 25 years. I am not involved in any way in

the management or operation of this partnership. I had approximately $13,000 in passive, non-

cash income from this investment in 2010. I did not recall this non-cash income at the time I




February 3, 2012

Page4

completed my Statement, and so I mistakenly did not list this partnership investment as a

source of income in my disclosure form, unlike listing my other sources of income in Part 3 of

the Statement.

B. List each source of income derived from self-employment or practice that represents more

than 10% of your gross income or $1,000, whichever is greater, and specify the principal type

of economic activity of the entity or person from who you derived such income. If this form

of disclosure is prohibited by law, rule, or an established code of professional ethics, specify

only the principal type of economic activity of the entity or person from whom the income

was derived.

None. Seemy response to Part 2 (A) above.

P AR T 3: O THE R SO UR CES O F IN COME.

List each source of income of $1,000 or more not listed in Parts 1 or 2 of this form. Do notInclude gifts or honoraria. If none, check the box.

As stated above, in 2010, the Popham BeachClub had gross receipts of $9,750 from

membership dues. Because this revenue was more than offset by expenses, thus resulting in a

net loss to me, I did not believe that the Popham Beach Club needed to be listed on my

Statement as a source of income. With the exception of this misunderstanding and my

mistaken omission of the Marshall Mall Associates investment, which isaddressed above in

Part 2 (A), I fully disclosed my sources of income in Part 3 of my Statement.

PART 9: INCO ME RECEIVED BY M EM BERS OF IM MEDIATE FAM ILY.

List the type of economic activity representing each source of income of $1,000 or morereceived by your spouse or domestic partner or dependent child(ren) during the reporting

period and the kind of income represented. If your spouse or domestic partner received

$1,000 or more of income, list his or her name and job title. List only the job title of

dependent children who received income of $1,000 or more. Do not include gifts.

When completing the 2010 Income Disclosure Statement, J overlooked, and did not list on my

Statement, the summer income earned by my son during a lO-week internship before his

freshman year in college.

PART 10: OFFICER OR D IRECTOR POSIT IONS.

List any for-profit or nonprofit corporation, firm, association, partnership or business In whichyou or a member of your immediate family held any office, trusteeship, directorship or

position of any nature. Include whether you or a family held the position and whether the

position was compensated. If a family member listed, indicate your relationship and the

name of the family member.




February 3,2012

Page5

As described above, during 2010, I was the sole member and the registered agent of Dirigo

Holdings, LLC,the entity which holds my real estate investment in Popham Woods

Condominium, and was the president of the non-profit Popham Woods Condominium Unit

Owners' Association.

J was a limited partner in the investment management and real estate limited partnerships

discussed above: Zweig-DiMenna Partners, LP;C.K.Capital, LP;and Marshall Mall Associates.

To my understanding, owning investments in these entities does not constitute holding an

"office, trusteeship, directorship or position of any nature" in these entities, and so I did not list

them in this section of my Statement. As stated above, I am not engaged in the operation or

management of these financial and real estate investments.

Bymy submission of the 2010 Income Disclosure Statement in February, 2011, I fully intended

to comply with both the letter and spirit of the requirements concerning disclosure of mysources of income. With a better understanding of some of the technical requirements

pertaining to this disclosure process and, quite frankly, of the meaning of some parts of the

disclosure form itself which I believe to be unclear and confusing, I recognize that it is

appropriate to amend my 2010 Income Disclosure Statement. Accordingly, I enclose an

amended form herewith for filing with the Commission. With this filing, I respectfully ask for

dismissal by the Commission of the Complaint by the Maine Democratic Party, and for rejection

of the Maine Democratic Party's request that the Commission impose the $100 maximum

penalty. This request is unwarranted and, quite clearly, politically motivated.

While requesting to have this matter resolved at the earliest possible date, I understand that

the Commission has scheduled this matter to be addressed at the February 29 meeting. I lookforward to the opportunity to discuss any issues and to answer any questions in person with

the members of the Commission regarding my Income Disclosure Statement and the Complaint

filed by the Maine Democratic Party.

Maine State Treasurer



CO MM ISSIO N O N GO VER NM ENTAL ETHIC S AN D ELECTIO N PRAC TICES

Mail: 135 Slate House Station, Augusta, Maine 04333Office: 45 Memorial Circle, Augusta, Maine

Website: www.malne.aov/ethlcs 'Phone: 207-287-4179 Fax: 207-287-6775

AMENDED

EXECUTIVE EMPLOYEES

2010 STATEMENT OF SOURCES OF INCOME (5 M.RS.A. § 19)

C ov erin g th e c ale nd ar ye ar J an ua ry 1 ,20 10 th ro ugh D ec em be r 3 1,2 01 0.

P lease file th is sta tem ent w ith the M aine Eth ics C om mission no late r than 5:00 p.m . on April 16, 2011. P lease contac t

C om mis sio n s ta ff a t 287-4179 o r c om e to th e C om mis sio n o ffice at 45 M em oria l C ircle , A ugusta, if yo u h ave a ny ques tio ns

a bo ut th is fo rm , y ou r re po rtin g re qu irem en ts , o r h ow to re po rt s pe cific s itu atio ns . Please keep a copy of this form for your

records,

N AM E AN D C ON TAC T IN FO RM ATIO N

Name Brllc e L . P oliq uin Title State Treasure r

DepartmenUAgency/Buraau/Division

O ffice o f th e S tate T re asu rer

Work Phone

( 20 7) 6 24 -7 477

Malling Address, City, lIP

C ross B uilding , 111 Sew all Street, 3rd Floor, 39 State H ouse Station, A ugusta, M E 04333-00 39

. '.. . " . .

PAR T 1 ,IN CO ME D E~lVE D:FR OM EM PLO YM EN T 13YAN OTH ER ."

List the name and address of each employer from whom you received compensation of $1,000 or more, Specify the principal type ofeconomic activity of each employer,

= ? ~ ~ : - = ~ ~ . i ~ ~ ~ ~ ~ : = ~ ~ ~ ~ ~ = : ~ ~ = - ~ - ~

PART 2. INC OM E DERIVED FRO M SELF-EM PLO YM ENT O R LAW PR AC TIC E

A. list the name and address of your business or law firm, if any, and list the major areas of economic activity or practice from which youderived income. If associated with a partnership, firm, professional association, or similar business entity, list the major areas of economicactivity or practice of that entity.'0 ' -N~~~"-- ~.,_,_~_c.~_._ .•• ·.~._~. _-.. ~. " __ "~" "" <O"H~~ _·_ ·"m· __~__~"_~ ' .._-.--."~-- ••_,--_-~~-"- ....._.._......._.... - ....--..•-..-~ ... -

... -.~-- ----- - -_ .• " __ "_o __ " ~~-~- - -- --- -.- -~---.-....- --. -~""" _-. - ••• " _- M a j ; i - A r e a ; o f E c o n o r r l i c - : O ; c t l v l ( y T -Major Areas of Economic ActiVity! Practice

Name and Address of Business Entity or Law Firm Practice (self) (partnership, assoclatlon,irmorslmllar

.~_.~....._~.. ..,~,._.~. ..._.."~~._.._._,,._~.~.~_,_,... .~..~.~~_"...~."._.. ~.~~._'_'~~"_~_'.~~_._., ~?~(~~~.~~~~1..~.."..'_-_,.-

Name : Zweig -D imenn a P ar tn er s, L,P. I nv es tme nt Mana gemen tA ddrass:900 hird A venue, N ew Y ork, N Y 10022

Name : c'K . C apital, L .P .

Address: 1 38 99 B iscay ne B lv d., S uite P H-1 2,North M iam i Beach FL 33181

I nv es tme nt Mana gemen t

http://www.malne.aov/ethlcs

http://www.malne.aov/ethlcs



P AR T 2 (co ntin ue d), IN COME D ER IV ED FR OM S EL F.E MP LO YM EN T

B . L is! ea ch source o f in com e de rive d fro m self-e mplo ym ent o r pra ctice th at represe nts m ore tha n 10% of yo ur gro ss in com e or $1,000,w hich eve r is gre ate r, an d spec ify the prin cipal type of e co nom ic a ctivity of th e en tity o r pe rso n from w ho m yo u derived such in co me . If th isfo rm o f d isc losure is pro hib ited by law , ru le , or a n estab lish ed co de of profe ss io na l e th ics , spe cify o nly the prin cipa l type o f eco no mica ctiv ity o f th e e ntity o r pe rso n fro m w ho m th e in co me w as de rive d.

~ • • , -• .•• --.~ ." ...• -" ---'-~ ""_n - .~ ~~~ .•. ·'·~_"'''·'·_'_'''''~·_~V.d~'''''_·'h'_''_''''''~' ..••• "_"_'_'_' __ "~_' .""_0 __ "" '- ..__ ._ ••~ •• L_•• . ~~_."~_"._~. _

P rin c ip a l T yp e o f E co n om icName a nd Address of Source Activ ity of Entity or Person Whd is

th e S ou rce o f th e In co me

Name:

Address:

Name;

Address:

PART 3. OTHER SOURCES OF INCOME

lis t e ach so urce o f in co me of $1,000 o r m ore n ot lis ted in P arts 1 o r 2 of th is fo rm . D o no t In clude gifts o r h ono raria .box .

_ . _ - . --.~.-.. .--~~..~.-"

.O"No~e,.

If n on e, c he ck th e

N am e a nd A ddre ss o f S ou rce K in d o f In com e.. .. J~ny~~trn_ent .~,Ie~~es! _~t~.).

Nama; Vanguard Funds Investments

Address: Malvern , P A

,

Name: Popham B each Club

Addross: 823 Popham Road, Phippsburg, M E 04562M em b ersh ip d ues

Name:

Address:

P AR T 4 . R EP OR TA BLE LIA BILITIE SL lst the nam es o f cred ito rs fo r any unsecured loans o f $3,000 or m ore tha t you received during the reporting period, and list the m ajo ra re as of e co nom ic activity o f e ach cred itor. D o n ot lis t c red it card liab ilitie s, o r educa tio nal lo ans, loa ns from a re lative, lo an s th at w ere

m a de a s c am pa ig nc on trib utio ns , o r b us in es s lo an s fro m re gu la te d fin an cia l in stitu tio ns . If n o.~ ~, c he ck ~h e . ~ _ _ C > x . . . . . . - ' ~ . ~ , _ . . . .

[ X r N ~ ~ ~ ' ". ., , _ . - . ' - ', . . _.: : - " . -.- - ~ ' ' ' . - . - - . . - , , - " - - . - . . - - - - ~ ,.,. ._ . : " : . - __ _.

N am e a nd A dd re ss o f C re dito rP rin c ip al T yp e o f E co n om ic

.AC~~~~ tx o f: :: r~~ i. t~ r__ . ..

Name:

Address:

Nama:

Address:

PART 6. REPOR TABLE GIFTS

L is t th e s pe cific s ou rce o f g ifts re ce iv ed d urin g th e re po rtin g p srlo d w ith a n a gg re ga te va lue o f m ore th an $3 00. If n on e, ch ec k th e b ox.

1. 3.

2 . 4.



PA RT 6. R EP OR TA BLE H ON OR AR IA

1. 3.

2 . 4.

P AR T 7. R EP RES EN TA TIO N B EFO RE S TA TE A GE NC IE S

List each executive branch agency before which you or a member of your Immediate family represented or assisted others forcompensation of any amount other than your official salary. Indicate whether you or a family member appeared before the agency. Ifnone, check the box.

T R [ N _ ~ ~ ~ ~ . ~ . _ · _ ~ ~ ~ _ ~ ~ ~ _ ~ ~ : . ~ = = . · . : ~ = : : ~ : : ~ . " ~ · · ~ . ~ ~ . ~ _ = = ' . ' ~ ~ . ~ . ~ = . ' . = : = . ~ ~ : =. . . " ' _ _ _ " . ' _ . . _ t : - I . a . ' ! 1 .e.. f _ ~ Q _ ~ D . c y .. , , ~ . _ . . _ _ . . _ _ , . " _ , , _ _ ~ _ . . I;!!'l.f!l~.9LfI.~~_!1.?L. '~"_" ..,.._ _.~_...

1. 3.

2. 4.

PART 8. BUSINESS W ITH STATE AGENCIES

LIst each executive branch agency to which you or a member of your immediate family sold goods or services with a value in excess of$1,000 during the reporting period. Indicatewhether you or a familymember sold the goods or services. If none, check the box.

I x . , J . . N : ~ ~ ~, -. .. " . ~ ' . _ . ' . '. ~ : ~ ~~ : . _.~. ., : -. ._ : _ " ~. .- ~ . . ~ . - ~. . : ~ . ~ - : :.~ ~ : ~ .. ~ . = ~ ~ ~ . " _ ~ : ~ ~ . :. - ~ ~ ~ . ~. : ~ ~ - - : ' ~ ' ~ -_. .~..~a.rn~.o!_.~Q~~y_.. _. _....._..__.,' ...•.. , .N.a.f!le_()~~,e.~?L._. "~'. ".

1. 3.

2. 4.

PAR T 9. IN COM E RECEIVED BY MEM BERS OF IMM EDIATE FAM ILY

List the type of economIc activity representing each source of income of $1,000 or more recelved by your spouse or domestlc partner ordependent child(ren) during the reporting period and the kind of income represented. If your spouse or domestic partner received $1,000or more of income, l ist his or her name and job tiUe. List only the job tit le of dependent children who received income of $1,000 or more.

. _ o . 3 . .no~inc!u~~__gifts:.. .... __ . . "'" __. _. ._ .... __ ... __~._. _.. ', ...__.. _..... ..,,_ .... _. ._" ....

Type of Economic ActivityRepresenting Source of Income

ReceivedName of Spouse or Domestic Partner and Job Title KIndof Income

1.

2.

3.

1,

2.

3.

Name:

JobT!tle:

Dependent Child(ren) • Job Titles Only

Job Title; Summe r in te rn sh ip

Job Title:

Job Titre:



P AR T 10. O FFIC ER O R D IR EC TO R PO SIT IO NS

L ist a ny fo r-p ro fit o r n on pro fit c orp ora tio n, firm , a sso cia tio n, p artn ersh ip o r b usin ess in w hich yo u o r a m em be r o f yo ur im m ed ia te fa milyh eld a ny o ffice , tru ste es hip , d ire cto rs hip , o r p os itro n o f a ny n atu re . In dic ate w he th er y ou o r a fa mily h eld th e p ositio n a nd w he th er t he post -

. Y ~ . I J .'f~~,~ ? ~ P . ~ " l ~ ~ ~ ~ d : _ ~ ~ _ a~!~~~t~~!!1-E.~!.~s.t~~~<~n_?J~~~~J_?~~,r~,f,~I!~.n.~h.l l?__<l_d}~e~n31E1e~!.!~~f~rl]ilr: n ~ _ f ! 1 _ b ~ r :. _ _ ~ , _0_ __._ ~ ._ ... _•

DNone

. .- ,_' --' ~_.--.-- -~-Organlzaliori7BiJs)n€iss~",,-,-- ---~---~- - - - < . - . - --'Tltle -·-~~·"-·-poS1troimerd·-··-F'ifffi1iY'. i f e m l ) ' s r s · - - - - C O ' i i , . p ~ i n ~ " " ·

a nd A d dr es s By: Name sated?

i. ~.~.g~!~oi~~isTLC··· -.--- ..··..· ~ ~ ~ , ~ : ; ~ ~ ~ g : ~ I - s ~ I f· · · · · · · · · · · · . . -·r~fIt~~~Yarmouth, ME 04096 I 1 I investment[I :

2 ~ - - P - ~ ~ h ' ~ ~W ~ ~ d ~~~-~i~;~'i~ill;~·Ulli~-O~~;~·I:~;·'·tp;·~~·i~i~~t' - 1 - ' - 5 ; 1 £ " - - - · - - - - ' · - · - - - - - - - - - · · h ~ ~ , _ " , _ _ , - _Association i i !

3 · · i r i ~ ~ ] ~ ; ; ~ ~ f . l ; ; ~ ; e . ~ O p ~ . -.- - . . . . ..JIILi;;;i;;;rp;rt~~~·r·S~lr-"'·-r~······ ... f , ~ ~ ~ t ~! I ~

New York, NY 10022 I ' j : I

I I

SIGNATURE

I affirm that th jcontents of thisre po rt a re true , co mple te a nd a ccura te to th e b est o f my knowledge.

' "

Date

Unsworn falsification Is a C la ss 0 cr ime.

ADDIT IONAL IN FORMAT ION

PI~~s~'p~~~idea-ny-add lti~~~ii'nf~~~~ti~~-b~I~~(~nd"o'~~(i~iiti~~~I~s't;;ets'if"~'~~d~d}'-'I~dic~t~'th~u~be~~'i~~-th e in fo rm a tio n y ou a re p ro vid in g. U se a dd itio na l p ag es , if necessary.

Part/Section

Number

Pm12.A. Marshall Mall Associates

230 South Broad Street Mezzanine

Philadelphia, PA 19102

Real Estate Investment

Pattl0 . 4, C.K. Capital, L.P.

13899 Biscayne Blvd., Suite PH-12

NOIth Miami Beach, FL 33181

Limited partner Self No; investment

5. Marshall Mall Associates

230 South Broad Street Mezzanine

Philadelphia, PA 19102

Limited partner Self No; investment

poliquin letter to ethics re income

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