The push to reform short-term lending in Ohio led to the ousting of two state legislators more than a decade ago. A retired FBI agent tells us how
Campaigns to curb short-term lending led to the ousting of two Democrats in the Ohio House of Representatives: Carlton Weddington and Clayton Luckie.
Retired FBI agent Jeff Williams recently joined the Ohio Politics Explained podcast to talk about how one case led to the next and what lessons can be learned from them.
In 2012, Weddington, of Columbus, became the first state legislator in more than 100 years to be charged with bribery. He resigned, pleaded guilty and served two years in prison.
FBI agents under Williams’ leadership took notice when The Columbus Dispatch reported in 2010 that Weddington insisted on a short-term loan donation from an opponent before agreeing to a meeting. The agents organized an elaborate undercover operation, posing as California wine merchants demanding a change in Ohio law so they could deliver wine directly to consumers. Weddington accepted trips to Miami and Napa Valley paid for by the undercover agents, as well as cash payments, Williams said.
Weddington directed the Legislative Service Commission to draft an amendment to the state budget to achieve that goal. When that amendment failed to pass, he drafted a standalone bill and issued a press release, Williams said.
Weddington happily complied with the undercover agents’ instructions, telling them during his trip to Miami, “If you want me to write a law that says everyone in Ohio has to wear red on Tuesday, I’ll do it,” Williams said.
One thing leads to another
During the Weddington investigation, agents discovered that a lender wired $300 to Luckie’s campaign account, but the donation did not appear on Luckie’s campaign finance report. This led to an FBI investigation into Luckie, a Democrat from Dayton.
Investigators found that Luckie had diverted about $130,000 from his campaign account for personal items such as cash withdrawals at casinos and purchases at a baby store. Williams said Luckie used the account as a “personal piggy bank.”
Luckie appointed someone as treasurer of his campaign, but then handled all the finances himself, including creating false expense reports.
Williams said Ohio relies on the honor system and that campaign teams report expenses and donations accurately and truthfully. While the secretary of state conducts regular audits, he does not have the authority to subpoena the underlying bank records, Williams said.
When Luckie was released from state prison, FBI agents arrested him for another fraud. He pleaded guilty to that count.
Lessons from the past
Williams, who has worked on public corruption cases for most of his career, said he hopes officials learn from Weddington, Luckie and other cases that they should “do the right thing” and serve the public.
“But time and time again, my hope that that’s exactly what will happen is dashed. I think the people in law enforcement across the state and my old colleagues at the FBI and the Department of Justice will always have enough to do,” he said.
Laura Bischoff is a reporter for the Ohio Bureau of the USA TODAY Network, which covers the Columbus Dispatch, the Cincinnati Enquirer, the Akron Beacon Journal and 18 other affiliated news organizations across Ohio.
