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OL Exclusive Analysis: Stem Cell Research Ballot Committee Has Self-Dealing Issues & a History

by: chetly

Tue Nov 06, 2007 at 07:15:40 AM EST


( - promoted by chetly)

Be ready for it.  A stem cell research ballot question committee has recently been formed, and the group is run by professionals who almost pulled the trigger on this one two years ago, according to an OutsideLansing.com exclusive analysis. 

The group forming the new committee, named "Stem Cell Research BCQ", appears to be the same as that which formed this one, called "Michigan Citizens for Stem Cell Research & Cures" in 2006.  Their filings can be found here. They dissolved on 7/18/2006, shortly after the signature-filing deadline in 2006.

Both Committees have one Treasurer in common.  Wendy E. Siegel.  Siegel's a non-attorney associate with Dykema Gossett according to their official biography. That alone means this is serious, and someone is paying.

MIRS has already reported that Martin Waymire Advocacy is also working the BCQ, and that the group was formed with "moderate Republicans" including former speaker Rick Johnson, former US Congressman Joe Schwarz, and others. 

But the tale of the tape is deeper.  The original Treasurer in December 2005 was Daniel Heumann of the Daniel Heumann Fund for Spinal Cord Research.  It recently merged with the Christopher Reeve Foundation, and Heumann has raised $4 million for such research.  He listed an Ann Arbor address and "motivational speaker" as his occupation (he was in a car accident in 1985). Siegal took over a couple months later.

Over 6 months the group received $33,000 in contributions from a half-dozen people, of which it returned roughly $7500 to charity when it dissolved.

Now here's the really cool thing.  Marcia Baum received $10,000 in "consulting fees".  Who is Marcia Baum?  She's the director of Michigan Citizens for Stem Cell Research & Cures, a 501c3, that, guess what - was also  the recipient of the nearly $7500 "charitable" cash out permitted under Michigan campaign finance law.

That's cute, isn't it.  The ballot committee raises $33,000, of which $13,000 is "in-kind" contributions (perhaps legal services, or some kind of physical gift). That leaves roughly $20K in cash.  The ballot committee goes nowhere. $17,500 is left over after what appears to to $2500 in legitimate small office expenses and mailing costs is spent.  Now, the donation to the 501c3 is perfectly legal, and as long as the c3 maintains its mission, that's fine.  But the $10,000 in "consulting fees" to pad Baum's pockets?  For a cause she's already supposed to be working for with the non-profit?  That's a pretty good deal, in my book. She gets half the money in her pocket, and 3/4 of the rest to the non-profit she leads.  One-eighth (1/8th) of the money total was used for real expenses. 87% was converted to other uses.  That's not all though - a look at the 501c3 "990" forms at www.guidestar.org - provides more insight.  The organization incorporated in 2006 - simultaneous to the ballot committee - and Baum is the only employee at $72,000 a year, out of a total $143,000 "education" program budget.  Add the $10K in "consulting" she took from the ballot committee.

This doesn't mean these folks aren't serious.  The "presenters" of some of the programs include serious folks like Joe Schwarz and Rick Johnson, and we don't mean to impugn them with the financials since there is no known link (although there involvement with the group raises other questions).  Dykema is a serious law firm to have on board.  It will be interesting to see where this one goes.

If you're a donor to the Stem Cell folks, you might ask where your $17,400 went in 2006. 

chetly :: OL Exclusive Analysis: Stem Cell Research Ballot Committee Has Self-Dealing Issues & a History
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