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Dem Liot Hill’s Amended Campaign Filings Raise More Questions

Days after an NHJournal article about her questionable campaign spending on personal items like home heating oil and paying her car registration, Democrat Karen Liot Hill (D-District 2) filed an amended financial disclosure.

In addition to changing some of the details of her spending, the amended documents are missing two key items from the originals: the name and signature of her campaign treasurer Corinne Morse.

On the amended forms, Morse is replaced by Liot Hill, who has declared herself the treasurer for her campaign spending — despite the fact that Morse had already signed off on the spending in question. 

Now, Liot Hill is dodging NHJournal’s questions about Morse’s involvement in overseeing her campaign finances.

 

Liot Hill bested fellow Democrat Mike Liberty in the Executive Council District 2 primary in September and easily defeated a token GOP opponent in the heavily-Democratic district.

Morse, a Democrat from Canaan elected to the legislature in 2022, had served as treasurer for Liot Hill’s run to replace Cinde Warmington. Morse’s name and signature appear on all original reports. They included unexplained checks totaling $1,350 that appeared to correspond to two court cases against Liot Hill: a violation for driving with a suspended license and another involving a debt collection.

She also included house cleaning, home heating oil, and more than $15,000 in gas and meals expenses in her campaign spending reports, all with what is purportedly Morse’s signature.

By amending the filings, Liot Hill is conceding there were problems with her initial paperwork. The question is whether, as treasurer, Morse asked about the details of the filings before she signed them? And why didn’t she sign the amended documents for the same spending period?

In fact, NHJournal asked Morse, did she actually sign the original campaign reports in the first place?

Morse declined to answer the question.

“I can’t comment on that,” Morse told NHJournal on Monday.

Nor did Morse respond to an email from NHJournal that included one of the original reports to confirm that the signature appearing on it is hers. Morse’s own campaign finance reports and her House financial disclosure forms appear to have been filed electronically and did not require a physical signature that could be used for comparison.

Liot Hill did not want to take questions when reached by phone on Monday, but offered to answer questions via email. However, when she responded on Tuesday, Liot Hill did not answer NHJournal’s questions about Morse’s signature or her decision to act as her own treasurer.

“I am proud that I ran my entire campaign on a minimal budget, doing almost everything myself from my car as I crisscrossed the district to meet as many voters as possible. As many candidates do, I have recently filed amended reports, making some clarifications and minor corrections. These items make up a very small percentage of my overall campaign budget, but it is important to correct even small mistakes, so I have done that. Corinne Morse stepped down as treasurer for my campaign after the primary, and the amended reports bear my signature. I look forward to serving on the Executive Council and finding common ground so that I can help tackle the challenges facing New Hampshire and deliver results for Granite Staters,” Liot Hill wrote to NHJournal.

Acting as her own treasurer, the mysterious checks that appeared to correspond with two court cases are now listed as reimbursements the campaign paid to Liot Hill for various software subscriptions as well as cell phone and internet services. 

On Dec. 12, a car financing company filed a motion for contempt against Liot Hill in Lebanon District Court for her failure to comply with a previous payment order. At the time, she had a balance of more than $1,000.

In January of this year, Liot Hill pleaded no contest to a 2023 violation for driving with a suspended license and agreed to pay $620 in fines and court costs. However, court records show Liot Hill’s first check to cover the fine bounced.

Forging or knowingly falsifying state campaign finance documents is a crime, as is misreporting campaign finance spending.

In 2005, former House Speaker Gene Chandler (R-Bartlett) pled guilty to a misdemeanor charge of failing to report $64,000 in contributions from lobbyists and special interests. The money was raised at Chandler’s annual “Old Fashioned Corn Roast.” Chandler paid a $2,000 fine and was sentenced to 100 hours of community service.

Dem Liot Hill’s Lavish Spending on Meals, Salons Raises Questions About Campaign Cash

Karen Liot Hill may serve as the treasurer of Grafton County, but her use of campaign dollars for personal expenses in her Executive Council race is raising eyebrows.

According to her campaign disclosures, the Lebanon Democrat has spent thousands in campaign cash on meals, clothes, and visits to salons. Her campaign expenditures include a $190 ferry ride to the Hamptons and $181 to register her car.

Liot Hill also reports spending $7,004 on gas for her car, $755 for car maintenance, and another $8,330 on meals. 

Gubernatorial candidate Joyce Craig (D-Manchester) ran a bruising statewide primary campaign against Executive Councilor Cinde Warmington (D-District 2) and reports spending just $849 for meals.

“I’ve run a very grassroots campaign,” Liot Hill said.

The detailed reports on Liot Hill’s spending also include unexplained checks totaling $1,350 that appear to correspond to two court cases against her: a violation for driving with a suspended license and another involving a debt collection.

Liot Hill serves on the Lebanon City Council and is the elected Grafton County Treasurer. She’s also a former restaurant owner whose business went under during the COVID pandemic. That hardship is behind the financial difficulties she had earlier this year.

On Dec. 12, 2023, a car financing company filed a motion for contempt against Liot Hill in Lebanon District Court for her failure to comply with a previous payment order. At the time, Liot Hill had not made a payment since June 2023 and had an outstanding balance of $1,061, according to court records. The case was resolved this February after Liot Hill paid $945.

In January of this year, Liot Hill was again in trouble, but this time in a traffic case. She was charged in June 2023 for driving with a suspended license. The case was resolved with Liot Hill pleading no contest and agreeing to pay $620 in fines and court costs. However, court records show that Liot Hill’s first check to cover the fine bounced on Jan. 8.

Contacted Thursday, Liot Hill denied she used campaign funds to cover payments related to her court cases. However, she did not immediately recall why or to whom she paid $600 on Dec. 26, or $750 on Jan. 12. The campaign reports do not give any information about the recipient or purpose of those payments, unlike the thousands of other expense entries.

“They might be reimbursements to me,” Liot Hill said.

Liot Hill called back a short time later after checking her bank accounts to say the two checks were for reimbursements for different subscription services related to the campaign. 

Liot Hill told NHJournal she planned to amend her campaign reports to reflect the correct details on the two checks. But those checks represent a fraction of the $113,000 she has spent on the campaign. Liot Hill won her primary against Mike Liberty despite Liberty’s more than $400,000 campaign. Liot Hill did not run television ads or digital ads to keep up with Liberty’s spending. Instead, she put 40,000 miles on her car to meet voters.

“I’ve driven 1,000 miles a week, that’s how I won despite being outspent four to one. A lot of expenses are related to meeting the people and being out on the road,” she said. 

Having the campaign reimburse her for gas ultimately saved money, Liot Hill said. She could have taken a mileage reimbursement at 75 cents per mile, but that would have driven the cost up to about $30,000 instead of $7,000.

Executive Council District 2 is a large area, going from the Monadnock region and Keene, to north of the Upper Valley, and then out to Concord. But it does not cover as large of an area as District 1, where Democrat Emmett Soldati has spent about $31,000 of the $106,000 he raised. Those expenditures include $1,500 for gas and $677 for meals. But Soldati has not run a competitive primary like Liot Hill.

Liot Hill’s unusual campaign spending doesn’t end with dinner and a drive.

Also included is a $250 payment to a Vermont heating oil company. That payment was made in July to a company that performs $250 annual furnace tuneups. Liot Hill denied she used campaign money to service her heating system, but did not have an immediate explanation for the charge.

Liot Hill also spent $711 on hair and nails, $1,600 on clothes, $330 on books, and $1,230 at grocery stores on “food and flowers.” Additionally, Liot Hill spent $736 on airfare, $453 on hotels, and $1,017 on transportation. Many of those expenses are not out of the ordinary for campaigns, including the out-of-state travel she charged.

Asked about her out-of-state stays, including a trip to Orient Point on the Hamptons in New York, Liot Hill said there were fundraising ventures to her old home turf.

“I grew up on Long Island,” she said.

But a review of the donations reported by her campaign shows Liot Hill brought in a negligible amount of money from out-of-state donors. Her campaign reports nine donations from New York residents totaling $4,250. Her campaign has raised more than $122,000 as of the Sept. 19 report.

Vincent Liot, a retired Sag Harbor, N.Y. resident, accounts for four of those New York donations. Vincent Liot gave the campaign $3,550 in total, and Carolyn Liot from East Hampton, N.Y., gave another $300. The four New York donors not named Liot gave a total of $400.

On the other end of spectrum, Liot Hill’s opponent in the general election, Republican Kim Strathdee, is reporting zero money raised or spent. Candidates are not required to report any spending if the total is under $1,000.

State Rep. Ross Berry (R-Manchester), who has pushed for campaign finance reforms in the past, said the current law gives candidates a wide berth when it comes to how they spend money. Spending campaign money on personal expenses is prohibited, but defining what’s personal and what’s not gets tricky with New Hampshire’s citizen legislature and Executive Council.

“That can open a Pandora’s Box and we don’t want to curtail someone’s First Amendment rights,” Berry said.

The law, instead, leaves it to voters and donors to oversee the candidates, he said. Candidates must be transparent in how they spend money, and who they get that money from.

“The point of campaign finance reporting is so the public can suss out if there’s an appearance of impropriety,” he said.

Former House Speaker Donna Sytek, who is a current member of the House Legislative Ethics Committee, said candidates need to make sure they can show donors they are spending donations in an appropriate manner. 

“You have to be able to tie it to the campaign,” Sytek said. “In a campaign, it’s best not to be on the receiving end of questions about possibly unusual expenses.”

SBF Trial Highlights Stolen FTX Dollars Donated to NH Dems

At the trial of alleged FTX fraudster Sam Bankman-Fried on Monday, former executive Nishad Singh admitted to being a “straw donor” who helped SBF distribute millions of stolen dollars to Democratic candidates and committees across the country.

Among them: All four members of New Hampshire’s federal delegation and the state Democratic Party (NHDP).

And according to the available records at the OpenSecrets website, all four candidates still have stolen cash on hand.

“My role was to click a button,” Singh testified. Those “clicks” included $5,000 to the Granite State Democratic Party and $2,900 to each of New Hampshire’s four congressional Democrats last year. And SBF funneled thousands more to Hassan and the NHDP during the hotly-contested 2022 campaign.

In fact, Hassan accepted a total of $30,800 between her campaign and her PAC from Bankman-Fried, while the NHDP collected $20,000. That ranks the two as number five and six on the list of Democrats and Democratic organizations to total campaign cash from FTX and its affiliates.

And those aren’t the only problematic donations for New Hampshire Democrats. Hassan also received a $10,000 contribution last year from disgraced U.S. Senate Robert Menendez (D-N.J.), currently facing bribery charges after cash and gold bars were found in his home. Hassan has declined to return the money or answer any questions about it.

Not to be outdone, Shaheen’s PAC gave Menendez a $5,000 donation just three days before his more recent indictment. Her staff blames a “clerical error” but declines to say if she’s going to ask that the money be returned.

“It’s another colorful data point of the bigger picture that a culture of brazenness has taken hold,” says Dan McMillan with the campaign finance reform organization Save Democracy In America.

The fact Hassan and Shaheen haven’t made a greater effort to distance themselves from Menendez shows they are now part of a system that largely ignores voters and treats campaign donors and lobbyists as their real constituents, McMillan told NHJournal.

“‘We, the people,’ are now a nuisance, a necessary evil, an obstacle to [politicians] getting done what they need to get done.”

Bankman-Fried wanted to get things done, too. According to this week’s testimony, he saw donating to Democrats as a way to raise his profile, the Wall Street Journal reports.

“Singh said the contributions, largely to center-left recipients, were made in his name for optics purposes. ‘It was useful for my name to be associated with some donations, even if the end recipient understood they were really coming from something else,’ he said.”

McMillan said these are all examples of a system that rewards politicians who can raise the most money. The money gives the politicians greater access to the levers of power, and it buys favorable treatment for the donors, he said. The lax federal regulation of the cryptocurrency market is, in part, a result of donations like the ones Bankman-Fried made, McMillan believes.

Save Democracy In America is promoting a taxpayer-funded campaign system, and McMillan argues it’s necessary because donors have too much power.

“Donors have become the gatekeepers, they are picking the candidates people are allowed to vote for,” McMillan said.

For example. Democratic donors are starving any candidate who might challenge President Joe Biden despite Biden’s deep unpopularity. “Donors all closed ranks and now Democratic voters are not going to have a choice this cycle on a presidential candidate,” McMillan said.

As long as politicians like  Menendez, Hassan, Shaheen, Kuster, and Pappas are incentivized to get money from donors, they will do just that. McMillan wants to use campaign money to leverage power back into the hands of voters. He’s hopeful it will work.

“We’re not a country like any other. This is the only country on Earth that stands for something. Being an American is about ideals,” McMillan said.

All four Democrats have declined to respond to repeated questions about these donations.

Longtime Dem Marchand Busted by AG for Bogus Campaign Website

The New Hampshire Attorney General’s Office said Democrat Steve Marchand lied about his role in a political scheme targeting his opponents in Portsmouth.

Marchand, a progressive Democrat who once served as Portsmouth mayor and sought his party’s nomination for governor, will not face criminal charges, the office said in a letter. Instead, it issued a letter of warning to Marchand for his involvement in Preserve-Portsmouth.com and other websites that targeted sitting city council members in the last municipal election.

“It’s pretty bad,” said Peter Whelan, one of the Portsmouth councilors targeted.

Whelan, Councilors Susan Paige Trace, Ester Kennedy, Greg Mahanna, Petra Huda, and Mayor Rick Becksted were all targeted by anonymous websites, fliers, and robotexts operated by Marchand, according to Myles Matteson with the New Hampshire Attorney General’s Office.

“It was shameful. There were robotexts sent by the thousands,” Whelan said.

Trace said the attorney general’s investigation revealed there was an effort to mislead the voters of Portsmouth.

“It’s about being transparent and behaving in an honorable manner,” Trace said.

All of the candidates targeted by Marchand were defeated. Current Portsmouth Mayor Deaglan McEachern declined to comment, as he had not seen Matteson’s letter.

“I didn’t have any interaction with the (Marchand) in my campaign,” McEachern said. “I have no idea what the former mayor was doing or not doing.”

Marchand did not respond to a request for comment. His attorney, Joseph Foster, is currently out of the country and unable to be reached.

Marchand’s bogus website was built to mirror a legitimate site with a similar name, Preserve Portsmouth, and purported to support the same city council candidates the original site endorsed. But it falsely described them as far-right Trump supporters. According to documents obtained by the Attorney General’s Office, Marchand wanted to depress voter turnout among Republicans in order to benefit Democrats on the ballot.

Marchand initially lied to investigator Anna Croteau when she questioned him about his part in the campaign, according to Mattson’s letter.

“When she first asked about Preserve-Portsmouth.com, you stated that you had heard of the website. You denied you had ever claimed responsibility for the website but noted that other people had been saying you were responsible for it,” Matteson wrote.

However, Croteau already had screenshots of a text conversation in which Marchand took credit for the content of the websites.

“To be very clear, I am the one to create the content,” Marchand wrote.

Matteson’s letter states the Attorney General’s Office has records of Marchand’s communications with at least four other people about the campaign, in which he stated the goal was to create guilt by association aimed at the targeted candidates, linking them to Trump in the mind of Portsmouth voters.

“(i)s really meant to help get Democrats who gave Becksted and others a vote in 2019 to really think about what they are doing in 2021,” Marchand wrote.

Whelan suspects the true purpose of the campaign was to get rid of council members who oppose development in the historic sections of the city. Marchand’s record as mayor includes changing zoning ordinances to make development easier, Whelan said. Whelan wants to know who Marchand was working with and for, and who funded the operation.

“Somebody spent a lot of money to do this,” Whelan said.

The attorney general’s report found that while Marchand would have violated campaign finance law by not disclosing who was behind the websites, fliers, and robotexts if it could be proved that he acted in concert with others. However, Marchand claimed, eventually, that while he acted alone in creating the content he did not set up the websites. Matteson noted the claim he acted alone was the last of many explanations Marchand offered to investigators.

New Hampshire law on campaign finance transparency allows a narrow exemption for individuals engaged in advocacy. Marchand was cautioned, however, that if he continues to engage in similar campaigns he could lose the exemption and face possible prosecution.

Last year, Portsmouth Democrat Committee Chair Shanika Amarakoon and New Hampshire Democratic Party Chair Ray Buckley issued a statement condemning Marchand’s campaign.

“We cannot let our local elections be undermined by national-style political tactics. The city councilors who were attacked, after all, are our neighbors. While we may not agree with all of their decisions, they did not deserve this attack, and we do not stand for it,” Amarakoon and Buckley wrote.

Experts Say Gunstock Donations to Sununu Didn’t Violate the Law

The headline at left-leaning InDepthNH reads, “Questions raised about donation from Gunstock to Sununu’s 2020 campaign.”

Right-wing secessionist state Rep. Mike Sylvia (R-Belmont) called it “inappropriate and possibly illegal.”

So, what is the deal with the $500 campaign donation from the Gunstock Area Commission (GAC) to Gov. Chris Sununu’s 2020 campaign?

The answer, according to experts on New Hampshire election law, is “not much.”

Sununu actually received two campaign donations made to the Friends of Chris Sununu from the Gunstock Area Commission, one for $500 to his 2020 campaign and another to his 2022 re-election bid of $1,000. His opponents have suggested the money — approximately 0.07 percent of the $1.9 million Sununu raised for the 2020 campaign — may have influenced his behavior toward the county-owned facility.

Leaders in the New Hampshire Democratic Party suggested Sununu broke the law, or at least created the possibility of criminal action, by accepting the GAC donation. Gunstock is owned by the people of Belknap County and operated by the management team hired by the commissioners. The commission is appointed by the members of the county’s House delegation, led by Sylvia.

“Gunstock is publicly funded by Belknap County taxpayers, and if Sununu were to have used that public funding for his 2020 gubernatorial campaign, that donation could be in violation of campaign finance law,” the New Hampshire Democratic Party said in a statement.

Sununu’s team, led by campaign advisor Paul Collins, has maintained from the beginning the allegations were nonsense.

“Under state law, a contribution from the Gunstock Area Commission is not a prohibited political contribution and the Friends of Chris Sununu did nothing wrong in accepting a contribution,” Collins said.

RSA 664:4, which lays out what counts as an illegal campaign donation, backs up Collins’ statement. New Hampshire bans contributions from business partners and labor unions, and it limits individual contributions to no more than $5,000. Candidates are also limited to giving $10,000 to their campaigns.

As one longtime GOP strategist who worked on many campaigns told NHJournal on background, “We have so few campaign laws in New Hampshire, it’s almost impossible to illegally accept a contribution.”

On the question of whether the GAC violated the law by making donations, the enabling legislation that created Gunstock explicitly says the commission has the power to “solicit, receive, hold, and expend any gifts, grants, or donations from any source made for any purpose set forth in this act.”

According to Assistant Secretary of State Orville “Bud” Fitch, the secretary of state’s elections legal counsel, if there is any other law in question, that is a matter for the attorney general. Fitch said any enforcement of the RSA 664 comes from the New Hampshire Attorney General’s Office.

So far, Attorney General John Formella’s office has been silent on the question of the campaign donations.

“At this time, the Attorney General’s Office will not be commenting on ongoing matters involving the Gunstock Area Commission, as the New Hampshire Department of Justice has recently received various pieces of information regarding Gunstock that we are currently reviewing to determine appropriate next steps,” said Michael Garrity, director of communications for the New Hampshire Department of Justice.

The management team walked off the job two weeks ago in protest of the way the commission operated. The resort was shut down and members of the public started getting angry about the situation. Finally, commissioners Peter Ness and David Strang resigned from the commission under pressure, and the management team agreed to return to their posts.

Gunstock is the largest employer in the county and a major economic driver for the whole region. The facility was in danger of not being able to open in the winter if the team did not return to their jobs.

If Bernie Sanders Really Wants to Take on Billionaires, He Can Start With His Fellow 2020 Democrats

Sen. Bernie Sanders has a new book out,“Where We Go from Here: Two Years in the Resistance, ”and he sat down with New Hampshire Public Radio on Monday to promote it. When asked if he is going to run for president in 2020, he said it depended on the reaction he got to his message that “we need an unprecedented grassroots political movement to stand up to the greed of the billionaire class and the politicians they own.”

Well, if Bernie really wants to battle “millionaires and billionaires,” all he has to do is file his papers for the 2020 Democratic primary. The list of 33 (and counting) potential 2020 candidates includes several billionaires, including former NYC Mayor Michael Bloomberg, coal-magnate-turned-green-activist Tom Steyer and Starbucks ex-chief executive Howard Schultz, along with Dallas Mavericks owner/reality TV star Mark Cuban (who may or may not be a Democrat).

When it comes to “billionaires buying elections,” Steyer is the leader of the pack. With a net worth of $1.6 billion, Steyer has been the top individual donor in two out of the last three election cycles, giving a total of more than $226 million dollars over that period.  Steyer is open in his efforts to connect his donations to environmental policies he supports.

Steyer’s $59 million in this cycle was edged out this cycle by fellow billionaire liberal Michael Bloomberg (Net worth: $45 billion), who gave $61 million, much of it through his pro-gun-control efforts. Bloomberg is just as clear that he wants his money to impact public policy on the Second Amendment.

Big spending by these billionaires, however, doesn’t seem to bother Bernie. When asked about Bloomberg and Steyer, Sen. Sanders said Steyer “is a very decent guy,” while he said he didn’t know Bloomberg personally. Then Sanders went on to add:

“The issue that concerns me–it’s not just those guys– it’s that, as a result of Citizen’s United, we have a corrupt campaign finance system. The Koch Brothers, Sheldon Adelson, they’re trying to buy elections. Billionaires shouldn’t be buying seats for themselves.”

But how is Tom Steyer, who has literally used his billions to build a campaign infrastructure many believe he will use to run for president in 2020, different from the Koch Brothers–other than the fact that they’re not running for anything, and their Americans for Prosperity Action PAC spent a measly $6.5 million this cycle?

The problem for progressives like Bernie Sanders and Liz Warren with their “millionaires and billionaires” schtick is that the Democratic Party has become the party of America’s wealthy elites. For every Republican billionaire like Sheldon Adelson (who was the top individual donor this cycle at $113 million) there are a dozen left-leaning tech billionaires like Mark Zuckerberg at Facebook and Jeff Bezos at Amazon, or rich Hollywood millionaires and movie stars, or liberal activists like George Soros, etc. etc.

The Trump GOP is the party of rural working-class Americans more than it is “millionaires and billionaires.” And making the case that the rich are stealing democracy is tough when they are (based on the numbers) apparently “stealing it” for Democrats.

And why do the Democrats even need leftover rabble rouser Bernie Sanders?  Tom Steyer is at least as populist as Sanders–if not more so. Michael Bloomberg is at least a socially liberal–once again, if not more so. And there’s a whole bevy of college-student-friendly far-Left activists like Booker, Brown and Beto who haven’t achieved AARP status yet. For a guy who should be considered top dog for 2020, Sen. Sanders current poll numbers are unimpressive.

Bernie’s real problem isn’t “billionaires.” It’s his bad luck that the last real chance he had of being the Democratic nominee was stolen from him by Hillary Clinton and the DNC.