Arthur Ferdinand, Fulton County Georgia - a crook or just a greedy SOB? You Decide!

 
 
In case you missed it here is the most recent AJC article, also see:  http://isarthurferdinandacrook.blogspot.com/ for all Ferdinand press reports.
 

Sunday, August 11, 2013

AJC WATCHDOG
  Tax chief profits from selling others’ debts 
  Fulton County official collects lien fees on top of healthy salary. 
  By Johnny Edwards  jredwards@ajc.com    
When the housing crisis was squeezing Atlanta and many homeowners struggled to pay their property taxes, life was getting sweeter for Fulton County’s chief tax collector. Seizing on a law on the books since the Great Depression, Tax Commissioner Arthur Ferdinand had found a way by 2010 to personally profit from the controversial collection system he set up.    Now, Ferdinand takes a cut every time his office sells a tax debt to a private collection firm or the taxpayer antes up, an investigation by The Atlanta Journal-Constitution has found. He already was Georgia’s highest-paid elected official, but a 50-cent fee he now gets on each and every paid-off lien has added tens of thousands of dollars a year to his pay.

   With the boost, Ferdinand earned $383,000 last year for a job where he started out earning $77,400 in 1997. Not even county commissioners knew how much he really makes, even though the fees were going into county coffers before they were diverted to Ferdinand’s pocket. He may be Georgia’s only tax commissioner taking that money.

   Ferdinand wouldn’t discuss the payments, saying only that they are “permitted by law.” And Fulton County’s lawyers have blessed the arrangement, though they will not explain their reasoning.
   Other attorneys, though, are not so sure Ferdinand can legally take both a full salary and a slice of lien proceeds, and they say the arrangement creates a staggering conflict of interest. The tax commissioner, critics say, now has a profit motive to hurl more taxpayers into a system that can put them at risk of losing their homes over small debts.
  No other tax commissioner in Georgia sells so many tax liens to private debt collectors. With each sale, Ferdinand hears cha-ching!
   “This incentivizes him to pass your debt to a third-party collector,” said Hugh Wood, a partner with Wood & Meredith, a law firm that handles real estate litigation. “The tax commissioner now has two masters. Either he is serving himself, or he is serving the taxpayer.”
   Ferdinand said of his motives in an email, “My intent is to make sure taxes are paid as quickly as possible.”
   To questions about his personal profits and the potential conflict, Ferdinand’s only response was to cite the state law that the Fulton County Attorney’s Office said justified the payments — a law dating back at least to 1933, when most tax commissioners earned their pay through fees.
   “Just because there is a law on the books that authorizes certain behavior,” state Rep. Lynne Riley, R-Johns Creek, said, “that doesn’t mean it’s ethically or morally the appropriate thing to do.”

 Seizing a new cash stream

The lien fees Ferdinand is paid come on top of his six-figure county salary and on top of the $1-per-parcel fees he collects from Atlanta, Johns Creek and Sandy Springs for adding their city tax bills to county bills.
 
So far Ferdinand has been pocketing roughly $22,000 to $31,000 extra per year from the lien fees. The county doesn’t give rank-and-file employees in Ferdinand’s office, who do the paperwork and average about $35,000 per year in pay, a portion of the extra compensation.  
The payments came to light through earning statements and other documents the county turned over to the AJC in response to open records requests.  
An interoffice memo shows Ferdinand began seeking the money in 2010, citing the old state law. He initially wanted back payments for about 365,000 liens paid off since 2002.
“At your earliest convenience,” he wrote to Finance Director Patrick O’Connor on Nov.10, “please issue a check in the name of Arthur E. Ferdinand for the full amount of $182,492, in accordance with State Law.”  
O’Connor and his staff turned to Fulton County’s law department for advice, emails show. 
 
   The County Attorney’s Office issued a legal ruling saying Ferdinand had a right to the money, Assistant Finance Director Sharon Whitmore told the AJC. The county would agree to go back only to July 2007 with retroactive payments, she said, so in 2011 Ferdinand received a lump sum payment of more than $87,000. 
   That year, he took home more than $438,000.

   There was no public discussion of the change, and county commissioners, who set Ferdinand’s budget, say they weren’t aware of it until contacted by the newspaper. 
   “If what you’re saying is accurate, I seriously wouldn’t support that,” Commissioner Robb Pitts said. “I think it’s a terrible practice. A base salary ought to be sufficient.” 
 
   The executive director of the Georgia Association of Tax Officials said he isn’t aware of any other tax commissioner in the state collecting such payments.   When most tax commissioners began receiving salaries, local legislation forbade them from still keeping fees, too, Dan Ray said. In Rockdale County, where he formerly served as tax chief before leading GATO, county code specifies that.
   Tax commissioners in Cobb and Gwinnett are paid a salary and the lien fees go to their counties, not to them. DeKalb Tax Commissioner Claudia Lawson earns personal fees for billing nine cities’ taxes — earning nearly $237,000 last year including her salary — but gets nothing extra when liens are paid off.   Not even Haralson County Tax Commissioner Barbara Ridley, who still relies on commissions from tax collections and motor vehicle fees for her pay, keeps the 50-cent lien fees.
 
   The law department won’t release its opinion to the AJC, citing attorney-client privilege. 
 
   And even though the Fulton Commission is the county attorney’s No. 1 client, commissioners said they did not receive a copy of the opinion. None of the memos or emails obtained by the AJC through the Open Records Act appears to have been forwarded to commissioners or their staff members, either.     
 
Wood, the real estate attorney, said he is not convinced Fulton County is on solid legal ground in routing the funds to Ferdinand. His research turned up contradicting case law and state Attorney General’s Office opinions from decades ago, and he finds it troublesome that Fulton’s tax chief is operating unlike any of his Georgia counterparts.
   “I’d say the answer is, ‘We’re not sure,’ ” Wood said, “because they’re sitting on their opinion and they won’t give it to you.” 
 
   Commissioner Tom Lowe said he wasn’t aware of the payments. Still, he is hesitant to criticize Ferdinand. 
 
   “Look at the collections on time — tremendously better than before he came into office,” Lowe said. 
 
   Before Ferdinand took office in 1997, the county’s collection rate averaged between 89 percent and 92 percent — with more   than $200 million in delinquent taxes slipping through its grasp. 
 
   Upon winning the job, he promptly vowed to crack down on delinquents, and he was very much on board with then-County Commission Chairman Mitch Skandalakis’ push for lien sales — essentially using the private sector to pay tax debts. 
   In Ferdinand’s first year in office, the collection rate jumped to 96 percent and has reached 98 to 99 percent in years since. That’s about the level of other counties’ collection rates. 
   “I’m not looking to excuse Arthur Ferdinand, don’t get me wrong,” Lowe said. “But I think anything he did, he did it because the law permits it.”
 Northside’s elusive target

   Several North Fulton state lawmakers, though, were livid upon being informed of the profits from liens. They called Ferdinand’s position audacious, considering that he already earns more than twice as much as Gov. Nathan Deal.   “That’s outrageous,” said state House Speaker Pro Tem Jan Jones, R-Milton, who had to pay the county’s biggest lien buyer — Vesta Holdings — $105 to satisfy a lien against her home in 2011. “He has a built-in incentive to slap a lien before a taxpayer has had adequate notice to clean up a mistake, even.”
 
Jones and state Rep. Wendell Willard, who chairs the House Judiciary Committee, said they would work to overturn the state law Ferdinand is using to justify the payments and expressed hope the revelations will attract support for a bill targeting Ferdinand that stalled in the Senate earlier this year.
 
 
House Bill 346 would make Fulton’s tax commissioner an appointed county official again, serving at the will of the County Commission, starting in 2017. Willard — who has failed repeatedly to curb Ferdinand’s compensation — said it’s his only avenue left to stop the tax commissioner from enriching himself through public office.
   “It’s just not reasonable,” Jones said, “for someone to have compensation, a public official, at that level.”
  Including fees he collects, Fulton County Tax Commissioner Arthur Ferdinand was paid $383,000 last year. When he began the job in 1997, he made $77,400. JASON GETZ /  JGETZ@AJC.COM  
 
Coming Monday    Each year, Georgia tax chiefs meet at the state’s top resorts for a conference that allows time to golf and hobnob with vendors. Picking up the tab are taxpayers and companies seeking contracts, an AJC investigation found.  
 
  About this story
A series of investigations by The Atlanta Journal-Constitution this year has spotlighted concerns about operations of the Fulton County Tax Commissioner’s Office. Among the stories, the AJC reported in February that Tax Commissioner Arthur Ferdinand’s quick sales of delinquent tax bills, before the county collected a 10 percent penalty, handed as much as $20 million in potential profits to Vesta Holdings, the biggest lien buyer, with a corresponding $20 million loss to taxpayers.

In April, another investigation showed how savvy investors use tax liens to short-circuit legal safeguards and quickly snatch homes away from taxpayers who get behind on bills, sometimes for a fraction of the properties’values. 
In May, the AJC discovered that Ferdinand had dipped into his budget to buy a 2013 Ford Explorer Limited for $39,000, which he can use for his commute to work.

For this story, Fulton County reporter Johnny Edwards used the Georgia Open Records Act to pore through hundreds of pages of documents showing Ferdinand’s compensation and expense reimbursements. Among them were income tax forms revealing that the tax commissioner, the state’s highest-paid elected official, has been earning even more money than previously reported.

Edwards examined campaign finance disclosure statements and property tax records. And with assistance from database reporter Jeff Ernsthausen, he used a tax lien database that the AJC obtained after a two-year open records battle with Ferdinand and the county.  
 
--------------------------------------------------------------------------------
Tax commissioner’s expenses out of line with county’s budget picture
  By Johnny Edwards  jredwards@ajc.com    
 While using his position and legal loopholes to earn nearly as much as the U.S. president, Fulton County Tax Commissioner Arthur Ferdinand has also reaped myriad perks from his office.
   He has soaked up luxuries at taxpayer expense, an Atlanta Journal-Constitution investigation found. Ferdinand also leaps at nickels and dimes, even pocketing county money as reimbursement for expenses he may not have had.
   “If he can find a way to squeeze another dime away from the Fulton County taxpayer, he’s going to do   it,” said Atlanta-based tax activist R.J. Morris, who ran unsuccessfully against Ferdinand last year, “and     nobody’s going to do anything about it because they’re scared of him.”
   Financial documents show that during the roughest years of the Great Recession, when other county offices were scrambling to cut expenses, the tax commissioner took his five highest-paid staffers to lake-front luxury lodges for their “budget planning” sessions. Taxpayers picked up hotel bills of as much as $295 per night for each person.
   When Ferdinand has taken unidentified individuals for what his expense reports list as “business lunches,” the county has repeatedly paid his tab. Lunches for two at the restaurants he frequents — The Commerce Club and Legal Sea Foods downtown and Chops Lobster Bar in Buckhead — have cost from $47 to $86.  
   Car washes for his county-funded, take-home vehicles have cost $11 to $25. His latest vehicle, a 2013 Ford Explorer, cost taxpayers $39,000.
   For years, when he went to out-of-town conferences, he collected daily meal allowances from the county — even though many meals were already included in registration costs. County policy forbids such double dipping.
  
Meanwhile, at county expense, he showed up for conferences on Sundays, a day early, when the only items on the Monday agendas were golf and evening receptions.  
   “My goodness, it never ends,” state Rep. Wendell Willard, a Sandy Springs city attorney who has tangled with Ferdinand over the years. “This guy will find every possible way to milk the taxpayers.”
  
Ferdinand declined an interview request but answered some questions sent to him in writing. On the staff budget-planning overnight trips, he said, “Our planning sessions are justified based upon the financial results they deliver.”
   As to why he collected the county meal per diem for conferences where many meals   were provided, Ferdinand said, “County policy also allows for employees to eat outside of the conferences when the meals served are not suitable to the individual’s dietary needs.”
   He did not respond to questions about whether he had any such needs. The policy the AJC obtained from the county Finance Department doesn’t list such an exception.
   Assistant Finance Director Sharon Whitmore said in an email that it has been an administrative practice to allow for outside meals if someone submits a doctor’s letter and gets approval from the county manager. She said, through a spokeswoman, she was not aware of any such letter from Ferdinand.
   Regardless, he told the organizers of the 2009 Georgia Association of Tax Officials conference that he didn’t have any food issues. The registration form asked, “Special dietary re   strictions?” He checked “no.”
   For that conference in Athens, he took $140 to cover 12 meals, or three per day for four days. Based on the session times, meals provided and county rules, he was entitled to just $60.
Shielded from budget cuts
   Most county commissioners have been hesitant to reel Ferdinand in over the years, crediting his methods for quickly capturing any unpaid taxes to help fund courts, the county jail, libraries, senior services and health programs.
   The commission has also given him leeway in managing his overall budget. And when other county divisions were being ordered to cut spending, Ferdinand’s office didn’t suffer from the same constraints. The past two years, when other departments have been asked to reduce their budgets by up to 5 per   cent, the Tax Commissioner’s Office has been among the few exempted.
   Ferdinand has planned his office budgets at posh locations. In 2009, for example, he took his five top aides to an overnight budget-planning trip to the Ritz-Carlton Lodge at Reynolds Plantation. From 2010 to 2012, the budget was planned at the Legacy Lodge at Lake Lanier. The trips cost taxpayers about $1,700 to $2,000.
   “It looks to me like a thinly veiled boondoggle,” Jim Honkisz, the interim president of the Fulton County Taxpayers Foundation, said. “The question is whether that’s a fair use of taxpayer dollars.”
   That’s also a question when Ferdinand has billed the county for meal per diems — $35 a day for three meals — for the three to four conferences a year he regularly attends at public expense.  
   Financial records show the conferences provide breakfast, lunch or dinner on some of the days. But Ferdinand repeatedly collected the full per diem.
  
For example, he received $175 for five days for the four-day 2009 TC Tech conference, at the King and Prince Beach & Golf Resort on St. Simons Island. The conference opened Monday with golf, and Ferdinand arrived Sunday. Breakfast and lunch were provided Tuesday and Wednesday, and dinner was provided Wednesday, according to the agenda.
   For the 2012 GATO conference in Athens, he received a meal per diem of $140 for four days, even though it started at 4 p.m. on Monday and ended at noon on Thursday. The registration fee of $230 included lunch Tuesday, lunch and a banquet Wednesday and a buffet breakfast Thursday.  
   For 2013’s GATO conference, though, his $140 per diem request was cut to $60. Who made the change isn’t clear.
   The county policy on meal reimbursements says, “Generally, employees will not be provided the full per diem amount on the departure and return dates ... An employee cannot ask for per diem on a meal that is covered as part of the registration fee.”
   However, the county apparently didn’t question his meal spending for years, even though conference information attached to his expense reports often listed the meals provided.
   Picking up the check
   Nor did the county question his requests for reimbursement for business lunches.  
   He charged the county repeatedly for lunches at the exclusive Commerce Club on the 49th floor of 191 Peachtree Tower, often ordering crawfish chowder, pink lemonade and the spinach and rocket salad.
   On payment vouchers, he did not say who he ate with or what business purposes the meetings served. No county policy requires that.
   Ferdinand wouldn’t tell the AJC who accompanied him or why. “All documents required by the county were sent to Finance for processing,” he responded. “All other questions have been answered.”
   Commissioner Bill Edwards said there’s nothing he can do about how Ferdinand spends his department’s money.
   “I am not the authority to really chastise him, because he is a constitutional officer,” Edwards said. “That’s up to the people.”  
 
  EXPENSES
  Arthur Ferdinand by the numbers
     COMPENSATION
   $77,400 Arthur Ferdinand’s total compensation in 1997, his first year as Fulton County tax commissioner
   $438,000 Ferdinand’s total compensation in 2011, including an $87,000 lump sum for four years of back fees on liens
   $383,000 Ferdinand’s 2012 compensation
   $22K to $31K Amount the new 50-cent fee has added to his annual salary
 
   Amount that Ferdinand received $214,000 in personal fees in 2012 for his office’s handling of taxes for the cities of Atlanta, Sandy Springs and Johns Creek $0 Amount of special fees Ferdinand’s staffers receive for their work handling liens and collecting for the three cities   $65 Average tab of Ferdinand’s business lunches for two at the Commerce Club at 191 Peachtree St., where he apparently enjoys the crawfish chowder and pink lemonade. Dining companions unknown.  
   $295 Cost per person per night for Ferdinand and his five top aides to stay at Legacy Lodge at Lake Lanier for a budget planning session  
   OFFICE / PERSONNEL
   $14,821,716
   Fiscal year 2012 tax commissioner’s budget
   $15,280,401
   Fiscal year 2013 budget   $130,050 Annual salary of Ferdinand’s 5 top aides
   $35,354 Average salary of Ferdinand’s other full-time employees

Thursday, August 8, 2013

Just my opinion: 

 

Fulton County Tax Assessor Ferdinand remains in the news with new actions which will cost Fulton tax payers additional thousands of dollars to defend Ferdinand for acting out his private vendetta against a County Commissioner who is on his Nixionian 'Enemies List'.
A grand jury is needed to look into the relationship between Ferdinand and the firm he sells most of his tax liens to.  Past time for the tax payers in Fulton to start making some noise.
 
The complicating factor here is that Ferdinand is BLACK and a Democrat, most other Black voters/taxpayers are not going to back any effort to look into a fellow Black and Democrat.  This is just the way minorities act, they protect their own, but until a grand jury takes up the matter, Ferdinand will continue to line his pockets and run rough shod over anyone he perceives as an 'enemy'.
Just a minor comment on how these scandals generally break down:
If it's sex it's a Republican, if it's money it is a Democrat.
Summary:  Arthur Ferdinand needs to go.

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