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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.

Brave Heads to Arraignment Without Lawyers

Strafford County Sheriff Mark Brave is facing his arraignment on eight felony charges this week with confidence and determination.

But with no legal counsel.

Brave, on leave from his job since he was charged with allegedly stealing $19,000 in taxpayer money to fund his secret love life, still has no attorneys representing him. But he hopes to close the sale on his $1.1 million four-bedroom Dover home in time to pay lawyers.

“I plan to rehire Shaheen and Gordon on Friday, following the final closing on the sale of my house,” Brave told Foster’s Daily Democrat. “I have a call into them and am hoping they will represent me on Thursday, and I can settle up with them on Friday after the sale has been finalized and I have funds wired.”

As of late Tuesday afternoon, court records showed no lawyers had entered an appearance to represent Brave. 

Attorneys with the politically well-connected Shaheen and Gordon law firm represented Brave earlier this year while the state attorney general and local police were investigating Brave’s behavior. But that relationship seemed to have taken a break before New Hampshire Attorney General John Formella charged him.

Brave’s case was preemptively moved to the Rockingham Superior Court to avoid any potential conflict of interest in the Strafford Superior Court. Brave’s arraignment is scheduled for Thursday at 12:30 p.m.

The home Brave shared with his wife, Jamie Brave, is listed for sale with a $1,150,000 price tag. Real estate websites indicate a sale is pending. Records on file with the Strafford County Registry of Deeds showed Brave and his wife are not married at this time. Janie Brave goes by her maiden name, Jamie Spencer, in the records. 

Brave is accused of using county money for travel to Florida, Maryland, and Boston to spend time with different women. At one point, when Brave was confronted with video evidence that he used taxpayer funds for a romantic weekend with one woman in Boston, Brave was unable to recall her name, according to court records.

“Her name is … um … Let me see, I forget which one this is. I’ve been dating a lot of people,” Brave testified before the grand jury.

Brave is accused of stealing the money and lying to the grand jury. He is charged with eight felonies, including theft, perjury, and falsifying evidence, and could be sentenced to up to 64 years in prison if convicted on all counts.

County officials contacted the attorney general this spring when irregularities with Brave’s spending were discovered. Brave has maintained his innocence throughout the investigation, blaming the accusations on political bullying from the county commissioners.

Like Brave, all three elected commissioners, George Maglaras, Robert Watson, and Deanna Rollo, are Democrats. At one point, Brave accused Maglaras of racism. Brave told the Rochester Voice that Maglaras called him “the token Black guy, and the token’s gonna be up soon.”

Brave is New Hampshire’s first Black elected sheriff, taking office in 2020 on promises of police reform. However, The Boston Globe reported this month Brave misrepresented his education credentials and law enforcement experience when he ran for office.

Brave claimed to have completed a master’s degree in forensic psychology, as well as bachelor’s and master’s degrees from Southern New Hampshire University (SNHU) in forensic psychology. However, The Globe found Brave did not earn any of those degrees and that he was never even enrolled in SNHU’s forensic psychology program. 

NHDem’s COVID Accommodations Case (Finally) Comes to an End

Despite years of trying to push remote legislating, Granite State Democratic lawmakers must show up to do their jobs.

United States District Court Judge Landya McCafferty this week dismissed the long-running lawsuit against Speaker Sherman Packard (R-Londonderry) over House rules requiring in-person attendance for representatives.

Since the COVID-19 pandemic began, New Hampshire Democrats have aggressively pursued policies to both mandate behavior in the cause of public health and to rewrite rules to accommodate those in fear of the virus. Mask mandates have proven to be largely ineffective in stopping the spread of COVID, and there is little evidence that restricting the behavior of healthy Americans had any benefit on health outcomes.

But that hasn’t stopped Granite State Democrats, who have past three years in court pushing to override House rules requiring in-person attendance to conduct the people’s business.

Packard has maintained the ultimate authority to set the rules lies with the House and not the courts. Judge McCafferty agreed.

“The order speaks for itself,” Packard said in response to the ruling. “It reaffirms our belief there is a democratic process by which the House adopts its rules, and that process is not subject to court intervention.

“Over the last two terms under my administration, we have worked tirelessly to keep legislative business moving forward. My hope is that we continue to work together and make some positive changes to benefit all New Hampshire citizens.”

McCafferty showed deference to Packard’s legal position, which was bolstered by a First Circuit Court of Appeals ruling issued last year. The authority to set attendance rules belongs to the House.

“The court is not unsympathetic to plaintiffs’ legitimate concerns. But it cannot base its decision on whether it agrees with the procedures voted upon by the New Hampshire House of Representatives,” McCafferty said.

Lawmakers have been meeting in person since the start of the 2022 House session, and all votes are done in person. There are remote options to participate in hearings, but that does not include the ability to cast votes remotely.

Democrats sued Packard, claiming he used the attendance rules in order to gain a partisan advantage during the pandemic. Several Democratic lawmakers, like Rep. David Cote (D-Nashua), simply refused to attend House sessions out of fear of the virus. But because Cote continued to run for reelection — and the voters of Nashua reelected him — he “served” without casting a single vote on behalf of his constituents for three years. In fact, he was never even sworn into office after his 2022 reelection. 

Cote eventually resigned in July.

Somersworth Mayor Truant from School Job

Fall is here, and students are back in their classrooms, but Somersworth’s Assistant School Superintendent Dana Hilliard is still not in the building.

Hilliard, who is also the city’s long-time Democratic mayor,  was scheduled to return to his school job Monday after months of leave over alleged unethical conduct. That was until last week, when 94 percent of the local teachers union, the Somersworth Association of Educators, voted against him coming back.

There are currently no calls for Hilliard to leave his elected position as mayor despite allegations of conflicts of interest. In Somersworth, the mayor and city council have the final vote on approving the school budget, meaning Hilliard essentially votes to pay tax dollars to himself.

“If he were a Republican, people would be after his hide,” said Ken Hilton, a Republican who made an unsuccessful bid to unseat Hilliard.

The union’s no-confidence vote does not have any force of law on Hilliard’s job. But the resolution makes clear the tension in the community over Hilliard.

“I do not have confidence in Dana Hilliard’s ability to be an effective leader in the Somersworth School District,” the union’s resolution reads. “I do not want Dana Hilliard to return to work in the Somersworth School District because his history of behavior shows that he makes it more difficult for educators to achieve the District’s mission, which is ‘to inspire all students to excel, to develop a thirst for knowledge, and to teach the essential skills necessary to be caring, contributing, and responsible individuals in an ever-changing world.’”

Hilliard went on paid leave this spring after district employees filed a complaint over his treatment of staff. Superintendent Lori Lane, also named in the staff complaints, also went on leave. Lane resigned this summer. 

Interim Superintendent Lou Goscinski declined to discuss details of Hilliard’s job status when contacted by NHJournal on Tuesday.

“He remains out on leave, but I cannot discuss the type of leave,” Goscinski said.

Goscinski confirmed Hilliard is on paid leave, meaning he is still collecting his taxpayer-funded school salary, which clocks in at more than $100,000 a year.

Hilliard declined to respond to requests for comment.

Hilton said Hilliard and his family are well-known and liked in the community, and the situation surrounding the mayor is sad. Hilton claimed that Partisan politics of power override what’s best for the city residents.

“Democrats never resign in disgrace; they just keep going,” Hilton said. “If you’ve no standards, who’s to say that’s wrong?”

An independent report found Hilliard and Lane yelled at and belittled staff members in private meetings after those staffers voiced opposition to proposed budget cuts at public school board meetings. One teacher told the investigator she was afraid of Hilliard. Other staff members said Hilliard was known to yell and throw things at people when he was angry.

Teachers also told the investigator Hilliard was mired in an obvious conflict of interest in his job and his position as the mayor. According to the report, Hilliard kept his elected city position in mind when he made budget decisions for the school. Hilliard would cut staff and programs at the school rather than make those cuts in the city or raise taxes, the report states.

Hilliard, director of operations for the district, reports to the school superintendent, not the school board. That means the board is unable to fire him. Lane could have fired Hilliard, and now Goscinski can fire him.

Hilton said there is still time for Hilliard to do the right for the people of Somersworth. It might be time for someone else to step into the city leadership role.

“I have been praying Dana would repent and choose to do what is right and good,” Hilton said. “You want to see good leaders in there.”

Inmate Stacie Laughton Housed in Male Population, Jail Official Confirms

After days of evasion — and under pressure from public officials hearing from a concerned public — Hillsborough County jail officials confirmed to NHJournal Thursday that former Democratic state Rep. Stacie Marie Laughton is being “housed in a male unit.”

The information was released the same day Laughton — a biological male who identifies as a woman — was indicted on new federal charges in a child daycare pornography case. The graphic details of the alleged crimes — involving children under the age of five — have left many in the Granite State stunned.

On Thursday, a grand jury handed up indictments against Laughton, 39, and lover Lindsay Groves, 38, on three counts each of sexual exploitation of children. Groves is also charged with one count of distributing child pornography.

Laughton additionally faces state charges of distributing child sex abuse images. The pair have been held in jail since their arrests last month.

After refusing for days to disclose where accused child pornographer Laughton is being held, Hillsborough County Department of Corrections Superintendent Joseph Costanzo relented and confirmed New Hampshire’s first transgender elected representative is being housed with other men.

“The individual you are seeking information on is housed in a male unit in accordance with PREA standard 115.42(c) & (e). The specific location and housing unit and cell assignment will not be disclosed to protect the safety of all individuals and the security of the institution,” Costanzo told NHJournal via email.

Laughton is listed as a biological male on the jail intake forms.

 

CLICK HERE FOR A FULL TIMELINE OF LAUGHTON’S CRIMINAL ACTIVITY, RECORD AS NH HOUSE DEM

 

Both Groves and Laughton are being held at Valley Street Jail in Manchester. Costanzo initially told NHJournal it was his policy not to disclose that information, claiming it was not a matter of public record. However, he could not cite any specific written policy or law prohibiting public disclosure.

The Prison Rape Elimination Act, or PREA, policies Costanzo cites deal with screening transgender and intersex inmates for housing assignments.

“(c) In deciding whether to assign a transgender or intersex inmate to a facility for male or female inmates and in making other housing and programming assignments, the agency shall consider on a case-by-case basis whether a placement would ensure the inmate’s health and safety and whether the placement would present management or security problems.”

And:

“(e) A transgender or intersex inmate’s own views with respect to his or her own safety shall be given serious consideration.”

State Rep. Kathrine Prudhomme O’Brien (R-Derry), who was among those pushing Costanzo to disclose Laughton’s housing gender assignment, said Laughton being kept with biological men is a victory for public safety.

“The safety of female inmates is important, and there shouldn’t be loopholes that could be taken advantage of that make them more vulnerable. I’m pleased to learn Laughton is housed appropriately,” Prudhomme O’Brien said.

Laughton has been in long-term relationships with biological women like his wife, Lisa Laughton, and Groves.

Laughton made national news in 2012 by becoming the first elected transgender member of the New Hampshire legislature, winning accolades from New Hampshire Democratic Party chairman Ray Buckley — despite the Democrat’s criminal history. After years of run-ins with the law, Laughton was still on a suspended sentence for a 2008 felony credit card fraud conviction under his original name, Barry Laughton, when Democrats endorsed him for the state House.

Laughton’s tangled criminal and political career also includes making a bomb threat at Southern New Hampshire Medical Center and stalking Groves.

According to a statement released Thursday, Groves worked at Creative Minds located in Tyngsborough, Mass. It is alleged that, between May 2022 and June 2023, Groves took nude images of children at the daycare and sent the photos to Laughton.

The pair engaged in graphic text conversations in which they discussed child rape. At one point, Laughton appears to admit to having raped a child in the past. Groves is accused in a civil lawsuit of molesting children at the daycare.

The investigation remains ongoing.