The Sanchez Enron connection question
There are several things interesting going on between Perry Sanchez right now.
1) Both Perry and Sanchez are speaking through their lackeys. Neither will speak directly to the press over the application issues. The reason is that both are "Claytie Williams" types who need others to put carefully worded lies in their mouths.
2) Sanchez is throwing out the Enron matter to prepare the public for a potential disclosure that Sanchez in fact was involved in the Enron fiasco by either buying options as the stock was going up and again when it was going down. In addition, Sanchez bailed out of his holdings in Enron stock before it hit bottom as the company's pensioners were required to ride the stock down to oblivion.
Sanchez has refused to release his schedule B from his personal federal income tax returns which show how much dividends he received from Enron stock. And he has refused to release his schedule D which would show how much he sold his Enron stock for and when. In addition, Sanchez has refused to release his mother's multibillion dollar trust tax returns which he controls. This trust tax return would also show the dividends and sales of Enron stock made through the trust at Tony's direction.
3) There is no difference between Perry Sanchez. Both are Republicans. Both employ $600 per hour attorneys to school them on how to slip through technical loop holes in the law. Sanchez's lawyer is Tony Canales who regularly defends Mafia drug lords like Juan Abrego who brought 16 tons of cocaine into the US. Tony Canales was also Tony Sanchez's Tesoro S & L's corporate counsel and who was also involved in its laundering of $25 million in drug money through Tesoro. Tony Canales also created the Henry Cuellar "death threat' letter and hired the people who spread the rumor that Mr. Cuellar was a homosexual.
4) Sanchez does not support an open and honest appointment process as reported below because his multibillion dollar bank, IBOC, refused to file its campaign contribution reports for the last two years. In addition, Tony Sanchez and Dennis Nixon who runs IBOC vigorously opposed legislation which would require banks to look into the backgrounds of their largest depositors. Tony Sanchez is about lies, corruption and behind closed door deals which are detrimental to every citizen in Texas.
The next governor of Texas
December 19, 2001
Camps spar about forms
Disclosures by Sanchez, Perry appointee lead to complaints, rebuttals
By PETE SLOVER / The Dallas Morning News
AUSTIN – In the first dust-up of the 2002 governor's race, a GOP state senator kicked rhetorical dirt into the face of likely Democratic nominee Tony Sanchez on Tuesday, challenging the candidate's candor about his role in a failed savings and loan.
Mr. Sanchez's camp kicked back, posing questions about an appointee of Republican Gov. Rick Perry and the appointee's relationships to the troubled Enron Corp.
Sen. Jane Nelson, R-Flower Mound, accused Mr. Sanchez of a "lack of candor" and "word mincing" in a sworn application he submitted when he was appointed to the University of Texas Board of Regents in 1996. She was a member and is now chairman of the Nominations Committee, which approved the appointment.
The issue arose after The Dallas Morning News reported Sunday that in 1994 Mr. Sanchez paid $1 million to the Federal Deposit Insurance Corp. to settle a proposed lawsuit against officers and directors of Laredo-based Tesoro Savings and Loan, of which he was chairman and principal stockholder.
In his board of regents' application two years later, he answered, "No" to the question, "Has any regulatory agency, on behalf of itself or any other person or entity, filed or investigated any grievance or complaint against you or a business in which you have a material interest?"
The negative response referred to a previous page for further explanation, where Mr. Sanchez described himself as a board member of a failed savings and loan but did not mention his ownership interest or the settlement.
Mr. Sanchez's spokesman, Glenn Smith, said the inquiry the FDIC conducted for the proposed lawsuit was an "investigation." And, he said, the application asked about existing, not past, business involvements: Mr. Sanchez did not have a material interest in the thrift when he answered the question, since the S&L's failure wiped out his investment.
Mr. Smith said that Mr. Sanchez answered every question on the application openly and honestly, making two references to the savings and loan issue. And, he accused Max Yzaguirre, the Perry-appointed chairman of the Public Utility Commission, of misleading the public about his role in Enron Corp.
Last month, five months after taking over as PUC chairman, Mr. Yzaguirre amended the personal financial disclosure form he filed earlier with the state to include affiliations with Enron subsidiaries he had omitted. Mr. Yzaguirre expanded the list of Enron subsidiaries he had been affiliated with.
He attributed the mistake to an oversight involving dormant Enron subsidiaries. When he made the amendments, a lawyer for the Texas Ethics Commission said that Mr. Yzaguirre's filings appeared to represent proper and prompt correction of good-faith errors.
"In addition to meeting all legal requirements to serve as PUC chairman, Max has complete confidence in his ability to serve," said Terry Hadley, PUC spokesman.
Mr. Smith said that one of the newly listed companies, most of which were Mexican Enron subsidiaries, was Enron North America Corp. – not a dormant company.
He said Enron North America is a U.S. company "connected" by contracts to New Power Co., an electric company partially owned by Enron Corp. and regulated by the PUC.
Mr. Smith said that raises questions about Mr. Yzaguirre's eligibility to serve on the PUC. Officials of public utilities are not allowed to join the PUC until two years after their affiliations have ended.
A Perry spokesman disputed that.
"Mr. Yzaguirre's background and qualifications were thoroughly reviewed and vetted by attorneys with the Public Utility Commission and the governor's office," said Ray Sullivan. "It was determined that he was and is perfectly qualified to serve as chairman of the PUC."
And, he said, Texas law states that electric retail providers such as New Power are not a "a public utility, an affiliate or a direct competitor," so the law doesn't disqualify the chairman.
"Neither New Power or Enron, by state law, are electric utilities," Mr. Sullivan said. "That is a key to his ability to serve."
Republicans first circulated copies of Mr. Sanchez's regents application to reporters in July, after The News reported on an investigation into money laundering at Tesoro, a probe that cleared Mr. Sanchez of wrongdoing.
The Sanchez campaign this week attributed the latest flap to "Republican dirty-tricks specialists who shopped this inane and misleading story around for months."
Ms. Nelson said she would submit legislation that would remove a candidate from consideration for appointed office if they provide "false or misleading information, with the intent to deceive."
The senator stopped short of saying that Mr. Sanchez's behavior violated her proposed standard. But the questions about his application highlight the need for such a reform, said her spokesman, Dave Nelson.
The application Mr. Sanchez signed included an acknowledgment that any misrepresentation or omission of facts could lead to his disqualification. It is a criminal offense to lie on a sworn statement.
Ms. Nelson's aide said her legislation would simply clarify the committee's power to disqualify liars.
"In the senator's mind, this is about truth, not partisanship," Mr. Nelson said.
A spokesman said Mr. Sanchez would sign the legislation if it passes while he is governor, "because Tony supports an open and honest appointment process."