Kyl’s Distortions of Pederson’s Business Dealings

I’m sure many of you have seen the ad by Kyl attacking Pederson’s honesty over a form that Kyl alleges was an attempt to defraud investors. My Mom saw it, and a doubt was planted in her mind as to Pederson’s honesty. I had to reassure her that the attack was utter bullshit before she felt comfortable voting for Jim. I take my Mom as the average Democratic voter. She watches TV, she doesn’t read the paper or frolic on the internet, she feels it’s her civic duty to vote and thus votes in every election. She generally votes for the Democrat unless she has a reason not to.

Jon Kyl’s misleading attack ad (second down from the top) claims that Pederson willfully sought to defraud investors by concealing a past bankruptcy.

And here’s Pederson’s response ad. It doesn’t refute the charges, and my Mom still had doubts after seeing it. It’s positive and a good message, but it’s a non-responsive response:

Pederson’s campaign issued a press release addressing the substance of Kyl’s charges, but it didn’t get wide attention, and obviously there is a residue of concern out there about Kyl’s distortions. Here is Pederson’s press release: (emphases added)

Jon Kyl’s new attack ad against Jim Pederson’s business reputation
was discredited in a Friday news conference attended by Jim’s company’s
accountant, Phoenix-area bank officials, a prominent area contractor
and homeowner’s association members, who worked with Jim on a project
in Scottsdale.

Kyl has alleged that Jim attempted to deceive lenders and investors
about his bankruptcy in the early 1990s, by failing to fill out
paperwork with the Arizona Corporation Commission.

But in the news conference, Pederson Group accountant Don Leo
explained that a lower level employee in the Pederson Group made an
inadvertent mistake in Corporation Commission disclosure documents. The
language about bankruptcy in those forms changed in the mid-1990s, and
the employee, copying old forms that pre-dated the language change,
failed to check the right box in the documents in question. When the
error was brought to Jim’s attention in 2001, he immediately corrected
it. No action was taken by the Corporation Commission.

Kyl’s attack ad asserts that this paper work mistake was an attempt
by Pederson to mislead potential lenders, but Brian Scott and Kevin
Schillig, whose companies lent the Pederson Group hundreds of millions
of dollars for projects during the mid- 1990s, said Kyl was wrong.

Lenders don’t even use Corporation Commission documents to determine
whether a company should receive a loan, Scott and Schillig said. They
have their own forms.

"Jim’s been forthright on all issues, never hid anything and
disclosed his financial history along the way," Scott said. Scott was
with Bank of America in the 1990s and was in charge of the loans
offered the Pederson Group.

"Jim Pederson is a man of integrity," Schillig said. "I’ve loaned
him millions of dollars, and he has paid every penny back, every time."
Schillig was employed by JP Morgan Chase when he worked with Jim’s
company.

Adam Mays, with A.R. Mays Construction, has worked with the Pederson
Group for nearly 20 years. He explained that contractors build 30 days
ahead of being paid by the developer. Millions of dollars are at stake
in their relationship, and trust is integral.

"I would build for Jim on a handshake," Mays said of his experiences
working with the Pederson Group. "I’ve worked on projects with Jim for
over 17 years and he has treated everyone fairly and honorably."

Also attending the news conference were Crawford Love and Carol
Sotnik, who as members of the Bellasera Homeowners Association, worked
with the Pederson Group on a project about which their community had
reservations. They explained how Jim worked closely with HOA members to
assuage their concerns and meet their requirements.

"I may not agree with Jim on every political issue, but the best
phrase to describe my experience with him is, ‘Promises made; promises
kept,’" Love said. "Jim will always work to find common ground, and he
is a man of his word."

You simply can’t trust anything that Jon Kyl says. If you follow that maxim you’ll never go wrong. Ask the Supreme Court. When Kyl and Senator Graham filed an amici brief in the Hamdan case, Kyl tried to lie to them, too. They tried to pass off comments inserted into the record as actual floor debate. Apparently, Jon thought that the highest court in the land was as gullible as the average Republican. But he didn’t fool (many) of the Justices, and after November 7th, hopefully he won’t be in a position to practice his deceits any more (except perhaps as a private attorney, where that sort of thing can be well-rewarded, so long as you don’t get caught… I’m told).