McDaniel skipped campaign filings, omitted debts
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Leaders in the public sector have plenty of public resources to promote their political views, accomplishments and experience. Often much more can be found in the public record: personal and campaign finance disclosures, expense reports, and business, tax and court filings. Here’s what they show:
Reuben Roosevelt McDaniel III (incumbent)
Reuben McDaniel hasn’t been much for filing political disclosures since his 2009 election to the Atlanta Board of Education, racking up $750 in unpaid late or non-filing fees as a result. His apparent lassitude regarding filings with securities regulators could prove more problematic.
Securities brokers and investment advisers must notify regulators about unsatisfied liens, as well as foreclosures and other “compromises with creditors.” Potential investors can then find those “disclosure events” by searching online at the U.S. Securities and Exchange Commission or the private Financial Industry Regulatory Authority.
Liens were filed against McDaniel by Ford Motor Credit Co. in 2010 and by a heating and air-conditioning contractor in 2013, each for more than $12.000. The Internal Revenue Service garnisheed his wages for $11,535 for unpaid 2008 income taxes, The Atlanta Journal-Constitution has reported. And McDaniel lost three condo units in a 2010 foreclosure after defaulting on a $715,000 loan.
None of those types of financial difficulties, though, show up in searches of McDaniel’s licenses as a securities broker or as an investment adviser representative. His February 2011 registration with the Georgia Secretary of State’s Securities Division makes no mention of them.
In Georgia, McDaniel skipped filing disclosures of his campaign finances six times between October 2009 and December 2011, giving the public no information on what campaign donations he might have received during that period or how he might have spent them. Nor did he submit disclosures of his personal finances — which must be filed annually under Georgia law — in 2010, 2011 or 2013.
The school board chairman, who’s running for re-election in a Dec. 3 runoff, did not respond to telephone messages inquiring about the non-disclosures. When we tracked McDaniel down at a Nov. 19 campaign event, he asked us to email our questions to him. He did not respond to subsequent emails that detailed those questions.
McDaniel told regulators that his investment firm, RM Capital Management LLC, has no website, an assertion that seems to be contradicted by the existence of this website (created in 2011, judging by the copyright date). Regulators monitor securities traders and investment advisers for compliance with rules for advertising in brochures, on websites and through social media.
In his securities registration, McDaniel lists business interests that he failed to report on the one personal financial disclosure that he’s filed since being elected to the Board of Education, including:
- Chairman, CEO & co-owner, Jackson Financial Corp.
- Chairman, Jackson Capital LLC.
- Board member, Bank of Atlanta.
- Ran for the Board of Education in 2005, finishing with 32% of the vote behind incumbent Mark Riley.
- Served in 2007 as chairman of the Committee for Building Atlanta’s Future, a group organized to promote passage of the SPLOST III 1% sales tax to benefit Atlanta Public Schools,
- Elected in 2009 to the Board of Education as the only candidate who qualified to run for at-large District 8.
- Elected by the board as vice chairman in June 2011 and chairman in January 2012.
- Finished first with 37% of the 2013 general election vote for District 8; faces attorney Cynthia Briscoe Brown in a Dec. 3 runoff.
- President & CEO, RM Capital Management.
- UNDISCLOSED: Registered broker with First Commonwealth Securities Corp., but listed as inactive since September 2012.
Business ownership interests
- LAST DISCLOSED IN 2009: Chairman & CEO, Jackson Financial Corp.
- UNDISCLOSED: Half-owner, Jackson-McDaniel Holdings LLC, owner of RM Capital Management.
- Former board member, Bank of Atlanta.
Other fiduciary positions
- UNDISCLOSED Chairman, Jackson Capital LLC.
- Secretary, Georgia Partnership for Excellence in Education, non-profit.
- Board member, Maynard Jackson Youth Foundation.
Real estate holdings
- None disclosed.
- None disclosed.
Friends and Family
- McDaniel’s mother, the late Myra McDaniel, served as Texas secretary of state from 1984 to 1987. She was the first African-American to do so and, at the time, the highest-ranking African-American official in Texas history.
- McDaniel regards Maynard Jackson, who brought him to Atlanta in 1999 to run the late mayor’s municipal bond-underwriting firm Jackson Securities, as his mentor.
- McDaniel’s partner in RM Capital is Arthur Richardson, a 15-year concessionaire at Hartsfield-Jackson Airport.
Donors have given more than $73,000 to McDaniel’s campaigns since 2005. The breakdown by election cycle:
- 2005: $12,750
- 2009: $2,450
- 2010-13: $58,603 (does not include possible donations in 2010 and 2011, when McDaniel did not file campaign finance reports)
- Reported cash on hand (Oct. 25, 2013): $10,442
- $9,400 Atlanta Restaurant Partners principals
- $5,000 Tom Cousins, real-estate developer, & executives of two of his charities
- $3,250 Greenberg Traurig LLP & attorneys
- $2,743 H.J. Russell & Co., construction & real-estate developer
- $2,500 American Federation of State, County and Municipal Employees
- $2,500 The Integral Group, real-estate developers
- $2,000 Frederick Burks, CEO The Burks Companies, janitorial services
- $2,000 FCSF LLC (in-kind)
- $1,800 Reuben McDaniel Jr., professor, University of Texas
Posted Nov. 26, 2013