We read this in MCRC Briefs this morning [5-8-2018 edition]:

The Yellow Sheet created a lot of chatter when it broke its April 11 “Bookkeeping Mistakes Aren’t Cheap” story about the Federal Election Commission (FEC) fining the AZGOP $23,000 for a “mistake” uncovered during the recent 2016 audit. See Arizona Is In Big Trouble - Chew On This 

timothy leeThose who have been around for a few years recall that Timothy Lee served as the AJonathan Lines 2robert grahamZGOP Treasurer for nearly 10 years prior to Robert Graham and Jonathan Lines becoming AZGOP chairmen. (Lines was Graham’s treasurer before Lines became the current state chair.) As you may recall, Lee completed eight audits and reviews during his tenure – with zero, zip, nada fines and just a few technical corrections along the line. It was common knowledge that Lee  knew the ends and outs of the AZGOP budget and books like the back of his hand… and frequently ended his financial reports at the ExCom meetings with, “If you have questions, don’t hesitate to call me.” How things have changed. These days grassroots PCs can’t attend the closed-door ExCom meetings so they don’t get a copy of current treasurer’s report… therefore, they don’t know if there are irregularities.  Click the MCRC Briefs link above for the rest of the article.

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Happy we are to see this information being distributed again. AFA was on top of the financial misdeeds of the Graham AZGOP administration even before he took office. In our extensive investigation into the AZGOP financial reports since Graham took over, we found substantial flaws that we believe were illegal in the way Graham was using the funds of the AZGOP, particularly in the funds coming in from the Republican National Committee, no choir boys themselves. There are specific requirements as to how RNC funding is to be handled. In our view, these were mishandled throughout the four years Graham ran the AZGOP under the watchful eye of Our Dear Senator (ODS) John McCain and his Arizona machine. This is the very same McCain/Machine that systematically launched campaigns to remove conservative precinct committeemen in different legislative districts with the blessing of and help from Graham. Now why would McCain do that?

For those who are not familiar with how the precinct committeemen system works, activists must get up to 10 signatures from registered Republicans and/or, we have recently learned, Independents, to be submitted to the Recorder's office to get on the ballot to be elected. Yes, they are elected officials of the Republican party. From these elected precinct committeemen, the districts or counties elect State Committeemen. It is the State Committeemen who supposedly elect the AZGOP Chairman every two years. Here lies the problem in a state like Arizona where a truly evil, in our opinion, Senator like ODS will determine who actually gets elected. (Search “Robert Graham” and you will come up with about 40 articles about his misadventures.)

When there is an intrinsically dishonest AZGOP Chairman at the helm, we get an intrinsically dishonest AZGOP. We have seen that Graham appears to have acted just like a democrat in how he maneuvered to make it appear as though he was raising big dollars for the Republican party. We warned at the time that he appeared to be shuffling dollars from one account to another, making it seem like new donations with each switch. The best accounting methods count a dollar only once because that dollar can only be spent once. When the books say you have, let's say, $200,000 in an account and you decide to spend that $200,000, hypothetically, you are “spending” money that is not really there, creating debt. It's no secret that organizations and companies employ such tactics to do one or more things: make stockholders, or in the case of an organization, members, believe a false narrative about the financial health of the company or organization. It could also be done to cover excessive expenses vs income until sufficient income appears to make things even again. It could be done to cover a possible looming bankruptcy. There are a myriad reasons dishonest brokers of other people's money dance around accurate accounting.

In early 2016, the assistant treasurer of the Arizona Republican Assembly along with a primary leader of that organization took a look at our information and believed there may be a big problem with AZGOP accounting. Not being forensic auditors, the organization's Asst. Treasurer decided to file a complaint against AZGOP with the FEC to find out if there were any irregularities. We believe that documents that we had found were provided to FEC to substantiate the claim. Our understanding was that AZRA, whose motto is The Republican Wing of the Republican Party, simply wanted to see whether Graham and the AZGOP were accurately reporting their financial condition. To no ones surprise, nothing seemed to happen on the claim for months. Suddenly, it was reported by the FEC that the claim would not be further investigated by the FEC. We believed that ODS McCain had intervened with the FEC to protect something in the AZGOP.

Was that the case? We still don't know. But it could explain the $200,000 debt inherited by Jonathan Lines and it could be true that if any cooking of the books occurred, Lines might not know about it because, the truth is, much of the accounting under Graham was done by a company out of state. Lines may have simply followed orders to sign the reports. Lines is not an accountant or even a bookkeeper. It could also explain the $23,000 fine. ODS McCain is no longer there to protect Graham. Maybe the FEC developed a backbone and finally did follow up on that claim.

Let's not forget about the other misdeeds of Robert Graham from before he was AZGOP Chairman.  He was accused by the State of California of money laundering through a PAC, using money from a 501c3 PAC, where donations are deductible, to fund a 527 PAC where donations are not deductible and are also hidden - dirty money.  He skirted a trial by ponying up $1,000,000 along with his partner who is now in the background of the Gov. Ducey Administration.

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Replies to This Discussion

Corruption runs deep in the GOP, Drain the friggin swamp!!!

Funny accounting and no transparency makes for problematic bed fellows.

One important issue that stands out here is that the AZGOP bylaws need a new amendment where PC's of the grassroots can request the budget report or attend a "special" meeting that explains the budget details. I am always amazed how bylaws afford way to much power to the Exec's.

McCain's machine one would hope would pass but don't count on that -- McSally enjoys even now the bias of azgop.

Good for all who demand honesty through transparency.

I remember some of the things AFA revealed about R Graham.  As a former PC and SC I had to wonder, where did the AZGOP go and when did they go into the toilet?  Then I remembered, it was when Mccain got in the Senate and got a little power. It's been downhill from there except for the time of Morrissey.

It appears to me that Republicans allowed McCain to own AZ for a lot of years. Shame on the Republican community of voters. An awakening happened with Flake, a McCain boy. McSally is a Flake in a skirt so make no mistake about that. I respect her military service and standing up to military to get out of wearing a headscarf. Her statement "grow a pair if ovaries" well cute but she had no ovaries around the Omnibus Bill. Missing in action.

I had an online friend who was a Committeeman in Maricopa County. He shared with me the slash and burn tactics of McCain.

Zebras don't change their stripes.  Graham and McCain are more than just sneaky and conniving.  I think they are both crooks. I sure hope Gov doesn't appoint Graham to take McCain's seat but it was be a continuation of this behavior in the person who is supposed to represent us.  I heard many times that Ducey and Graham knew each other in college. Would like to know if that is true.  If so, it explains why that whole bunch including Kirk Adams and others are so tightly bound together in bad behavior.

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