Report claims Maloney receives compensation from sold company

By westvirginia on September 22, 2011
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By Steven Allen Adams | West Virginia Watchdog

CHARLESTON — A day after the Maloney campaign released a report accusing Senate President and Acting Governor Earl Ray Tomblin of sharing the same Post Office box with members of his family, the Tomblin campaign fired back with a report of their own.

The report, titled “What’s Maloney Hiding,” claims that Republican Bill Maloney, a businessman and engineer, still receives compensation from a company he sold in 2006.

The company, North American Drillers, was co-founded by Maloney in 1984. North American Drillers, along with Zeni Drilling, organized under the name Shaft Drillers International, or SDI. In 2006 Maloney sold his share in the company, starting Cow Run Energy and Drill Leader.

In the last year SDI moved it’s headquarters to Mount Morris, Pa., right over the state line from West Virginia. When SDI left they took between 80-90 employees with them, though the company maintains over 500 employees in West Virginia.

The Tomblin campaign and the Democratic Governors Association have attacked Maloney for allowing the company to move across the state border. The Maloney campaign has defended themselves by saying that Maloney has nothing to do with the company since he sold his share.

But the report shows an excerpt from Maloney’s 2011 financial disclosure form, listing all sources of income over $1,000. Six companies are listed, including compensation from North American Drillers.

“Maloney says that there was nothing he could have done to stop his company from moving to Pennsylvania and taking nearly 100 West Virginia jobs with it since he sold it in 2006 and so had no control over the decision,” the report said. “That means that Bill Maloney has profited from the decision to move the headquarters, and the jobs that go along with it, into Pennsylvania.”

The report also criticizes Maloney for getting around paying personal property taxes. At a campaign stop during the primary Maloney related a story about having to pay the tax after his drilling rig was featured on the front page of a local newspaper in Hinton, W.Va.

“Bill Maloney has spent this entire campaign lying about Earl Ray Tomblin and attacking his family, but now voters are finding out that the real Bill Maloney is just a greedy millionaire who’s out of touch with West Virginia values and wants to use the state for his personal gain,” said Chris Stadelman, spokesperson for the Tomblin campaign.

The report was released one day after the Maloney campaign released a report accusing Tomblin of benefiting from his family’s businesses. The report claimed that both Tomblin and Tomblin’s parents and brother share the same P.O. Box in Chapmanville. Tomblin receives his Senate paychecks and reimbursements from this address, his mother and brother receive checks from the state-subsidized Greyhound Breeder’s Development Fund for the same mail box, and several family members are registered to vote using the P.O. Box as their home address.

The Maloney campaign defended itself against the Tomblin report, saying that Maloney’s compensation came from a non-compete agreement with North American Drillers.

“Of course Earl Ray Tomblin’s desperate campaign will try to drive the attention away from the fact that his family was just exposed for collecting $20,000 per month from the state at their family post office box in Chapmanville,” said Michelle Yi, spokesperson for the Maloney campaign. “For a guy who kept the books at his family’s illegal gambling machine business for years, Earl Ray sure doesn’t know much about how businesses actually work.  When Bill sold his shares of the company a few years ago, he signed a non-compete agreement with the company, which involved compensation.  That’s how it usually works.  Maybe Earl Ray did it differently when he sold the family business to his good friend, corrupt politician Joe C. Ferrell, who is now in prison.”

Though Tomblin was a business manager for Southern Amusement, he did not own the company. The business, incorporated by Tomblin’s mother in the 1960s, was sold in the 1990s.

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