Posted by: Hugh Hewitt at 6:27 PM
The allegations in this Bloomberg story --if true-- pose a huge problem for a senior advisor to the president, David Axelrod. This is the heart of the problem:
Axelrod was president and sole shareholder of AKPD from 1985 until he sold his interest after Obama’s victory, government records show. The firm owes Axelrod $2 million, which it’s due to pay in installments beginning Dec. 31. Axelrod’s son, Michael, still works there. He didn’t return a phone call. The firm’s Web site continues to feature David Axelrod’s work on the Obama campaign. (Emphasis added.)
The problem is that Axelrod's former firm is currently receiving huge fees "from Healthy Economy Now, a coalition that includes the Washington-based Pharmaceutical Research & Manufacturers of America, known as PhRMA," as well as AARP, the SEIU and other big players in the health care debate.
If Axelrod has been negotiating any part of any deal involving any of these players which are funneling money to the firm that owes him money, or if he is advising the president on the deals with any of these groups, that's a conflict of interest. Laundering the money through a "coalition" doesn't remove the conflict much less the appearance of impropriety. The coalition is in effect partially funding David Axelrod's severance package though its members might have done so unknowingly. These forthcoming payments to Axelrod are much more significant than the sort of "retained ties" that Democrats blasted Dick Cheney for vis-a-vis Halliburton even though there was no high level negotiations between the vice president and his former company.
read the whole thing