Ethics Commission rules on Bevin’s Anchorage home purchase

FRANKFORT – Gov. Matt Bevin did not violate the ethics code when he purchased a home in Anchorage at a price below its listed value for tax purposes from Neil Ramsey, a supporter whom Bevin appointed to the Kentucky Retirement System Board of Trustees, according to an opinion issued by the Executive Branch Ethics Commission.

The commission reached its unanimous conclusion after a closed-door meeting on Monday, dismissing separate complaints by Richard Beliles, Chairman of Common Cause, a non-partisan ethics watchdog which typically focuses on money in politics, and Democratic state Rep. Darryl Owens.

The ruling was first reported Thursday evening by Kentucky Today, an online publication associated with the Kentucky Baptist Convention. The Bevin administration apparently shared the commission’s ruling with Kentucky Today without informing other media.

Woody Maglinger, Bevin’s press secretary, did not respond to email and voice mail messages seeking comment Friday morning.

Neither Beliles nor Owens had received formal notice of the commission’s ruling as of Friday morning.

“Typically, the ethics commission does not confirm or deny an investigation unless the subject of the investigation publicly reveals that they are being investigated,” said Kathryn Gabhart, Executive Director of the Executive Branch Ethics Commission.

“And yesterday, it’s my understanding that Gov. Bevin’s press secretary issued a statement about the letters that were issued to (Bevin),” Gabhart said. “Otherwise, the letters speak for themselves.”

The letters to Beliles and Owens were mailed by post, but Gabhart said Bevin’s was delivered through the state government’s daily messenger service. “We always use messenger mail to the other state agencies,” Gabhart explained.

“Nothing,” Beliles said when asked if he’d received word of the commission’s ruling. “I haven’t received any letter or anything from the Executive Branch Ethics Commission.”

Bevin surrogates as well as the Kentucky Today report have suggested Beliles filed his complaint against Bevin only after Democratic Attorney General Andy Beshear announced he would donate left-over funds from his 2015 campaign to Common Cause. Bevin is a Republican.

Beliles scoffed at the charge, saying he’d met Beshear only once during a chance encounter in the hallways of the Capitol when a third party introduced them.

“That’s totally false,” Beliles said. “We shook hands, that’s all.”

Beliles said he “doesn’t carry water for any political party” and noted he also filed ethics complaints against former Gov. Paul Patton and former House Speaker Jody Richards, both Democrats, as well as former Senate President David Williams, a Republican.

Beliles’ and Owens’ complaints were prompted by news stories about Bevin’s purchase of an Anchorage home from Ramsey for $1.6 million while the Jefferson County Property Valuation Administrator valued the property at roughly $3 million. Ramsey contributed to Bevin’s gubernatorial campaign and Bevin appointed Ramsey to the governing board of the Kentucky Retirement System.

Bevin and Ramsey contend the PVA valuation is too high and have appealed it to the Jefferson County tax appeals board which has yet to issue a ruling.

But the commission ruled there is no violation of the ethics code because Ramsey is not a lobbyist and, “Nothing in the Ethics Code prohibits two public servants from engaging in a financial transaction or giving each other gifts.”

Beliles, who owns rental properties in Jefferson County, said he relies on the PVA valuations and finds them reasonable. He called the gap between the PVA valuation on the Anchorage property of $3 million and the $1.6 million purchase price “a huge difference.”

While the commission found no violation, its letter to Bevin says that after appointing Ramsey to the KRS board, Bevin “may be considered Mr. Ramsey’s supervisor.” The ethics code permits the commission to investigate when a “public servant solicits, sells to, or otherwise engages in a financial transaction with an immediate subordinate or a person the employee directly supervises,” according to the letter.

“Assuming that a financial transaction did occur between you and Mr. Ramsey,” the letter continues, “if an issue should arise with Mr. Ramsey’s appointment or when it comes time for Mr. Ramsey to be re-appointed, the Commission recommends that you should delegate your authority to review Mr. Ramsey’s appointment or re-appointment to the Lt. Governor.”

The five-member commission’s decision was unanimous. Two of the commissioners were appointed by former Gov. Steve Beshear, father of Attorney General Andy Beshear who has questioned the propriety of the real estate transaction between Bevin and Ramsey.

The other three commissioners were appointed by Bevin, including Owensboro attorney Tim Kline who was appointed last week, just days before the commission considered the Beliles and Owens complaints on Monday.

The commission also has ruled that Andy Beshear faces a potential conflict of interest if he were to investigate the sale of the home and then later run for governor against Bevin.

Ronnie Ellis writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com. Follow CNHI News Service stories on Twitter at www.twitter.com/cnhifrankfort.

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