The Labor Commissioner Has No Workers’ Compensation Insurance.  The Minnesota Department of Labor administers Minnesota’s workers’ compensation insurance laws.  In December, 2002 the governor appointed Jane Volz as Minnesota Commissioner of Labor.²  Volz had been a member of the right-wing Federalist Society and benefactor of the Center of the American Experiment, a right-wing think tank from which the Governor drew many of his appointments.³  In announcing Volz’s appointment, the Governor touted her “extensive experience with labor and employment law”⁴  and said she would ensure “tough enforcement of our laws.”⁵  (Upon her appointment, Volz promptly proposed disbanding the unit that investigates workers’ compensation fraud.⁶  )

 

             Volz was forced to resign in a swirl of controversy after it was revealed that she had neglected to buy workers’ compensation insurance for her employees while in private practice.⁷   Apparently enamored with her conservative credentials, the governor says he never bothered to check if she had complied with the workers’ compensation laws, a basic vetting process for any high-level nominee.⁸ 

 

                          The Commerce Commissioner Is Selected By A Pawlenty Cohort Whose Troubled Companies Are Regulated by the Commerce Department.  The Minnesota Commissioner of Commerce is responsible to regulate several financial industries in Minnesota, as well as the telecommunications industry.  Aggressive regulation by the Commerce Commissioner is necessary to protect consumers from fraud and deception in the marketplace.

 

             The governor allowed a political supporter whose telecom companies had been sanctioned by regulators in numerous states to recommend and interview his Commissioner of Commerce.    Pawlenty then installed his campaign manager in a top Commerce post in which he was responsible to regulate the telecom sector.  The campaign manager had previously been the marketing director of a telecom company that was fined $200,000 by California regulators.  He had also previously been found by a Minnesota district court judge and the Minnesota Court of Appeals to have engaged in telemarketing fraud in connection with a PAC he ran.  Yet, Pawlenty saw fit to allow his “good friend” to regulate the telecom industry.  (Click here to read more about this.)

 

             The Campaign Treasurer Is Found to Have Engaged In Financial Fraud.  A campaign treasurer fills the very important role of ensuring that a campaign follows all campaign finance and integrity laws.  During the 2002 campaign and continuing through fall, 2005, Ron Esau was Pawlenty’s campaign treasurer.⁹    (During the 2002 campaign, he flew Pawlenty around the state in his private plane.)¹⁰ 

 

An administrative law judge recommended that Esau be barred from the mortgage finance business and fined for engaging in a form of mortgage foreclosure fraud known as “equity stripping.”¹¹    Equity strippers target homeowners in foreclosure with offers to help save their home, only to employ various schemes to deprive the homeowner of their home equity.  The administrative law judge found that Esau “used deceptive practices demonstrating untrustworthiness in representing that [Esau’s company] could stop the foreclosure process when in fact their business plan and practice was to allow the homeowner’s redemption period to expire….”¹² 

 

The governor has disclaimed any knowledge of Esau’s private business practices.¹³    The governor apparently never bothered to check out his “good friend” even though he reportedly used the same post office box for both his equity stripping ventures and for campaign matters.¹⁴ 

 

Despite the administrative law judge’s recommendation, the governor’s Commerce Department allowed Esau to get away with not paying any fine.¹⁵ 

 

             Newspaper cartoons recently lampooned the governor for proposing like a maitre d’ that legislators select from a “menu” what items they would like to discuss in a special legislative session.  The above episodes suggest that Pawlenty is more than willing to take orders to benefit his political supporters to the detriment of the Minnesota public he was elected to serve.

Pawlenty makes some highly questionable appointments.

PAWLENTY REWARDS CONTROVERSIAL POLITICAL FRIENDS

WITH KEY APPOINTMENTS

Facts about Minnesota Governor Tim Pawlenty

PawletyUnlugged

1“Scramble Unfolds In Race for Governor,” Star Tribune, October 20, 2005.

2“Pawlenty Names Revenue, Labor Commissioners,” Star Tribune, 3B, December 24, 2002.

3“Pawlenty Names Revenue, Labor Commissioners,” Star Tribune, 3B, December 24, 2002.

4“Minnesota Labor Commissioner Did Not Obtain Workers Compensation Insurance,” St. Paul Pioneer Press, February 25, 2003.

5“Pawlenty Names Revenue, Labor Commissioners,” Star Tribune, 3B, December 24, 2002.

6“Minnesota Labor Commissioner Did Not Obtain Workers Compensation Insurance,” St. Paul Pioneer Press, February 25, 2003.

7“Volz Steps Down As State’s Labor Chief; Pawlenty Sought Move As Workers’ Comp Issue Roiled,” Star Tribune, 1A, March 1, 2003.

8“Volz Steps Down As State’s Labor Chief; Pawlenty Sought Move As Workers’ Comp Issue Roiled,” Star Tribune, 1A, March 1, 2003.

9“Pawlenty Campaign Treasurer Accused – Esau’s Business Tied to Equity Stripping,” St. Paul Pioneer Press, B5, February 26, 2004.

10“Pawlenty Campaign Treasurer Accused – Esau’s Business Tied to Equity Stripping,” St. Paul Pioneer Press, B5, February 26, 2004.

11In the Matter of HJE Financial LLC, James Hoffman, James Johnson and Ronald Esau, Office of Administrative Hearings, State of Minnesota, File 3-1005-15910-2, Findings of Fact, Conclusions, and Recommendation dated June 1, 2005.

12In the Matter of HJE Financial LLC, James Hoffman, James Johnson and Ronald Esau, Office of Administrative Hearings, State of Minnesota, File 3-1005-15910-2, Findings of Fact, Conclusions, and Recommendation dated June 1, 2005.

13“Pawlenty Campaign Treasurer Accused – Esau’s Business Tied to Equity Stripping,” St. Paul Pioneer Press, B5, February 26, 2004.

14“Pawlenty Campaign Treasurer Accused – Esau’s Business Tied to Equity Stripping,” St. Paul Pioneer Press, B5, February 26, 2004.

15“Esau Barred From Job; But Pawlenty Campaign Official Escapes Fine in Mortgage Probe,” St. Paul Pioneer Press, 1C, September 24, 2005.