Businessman vs. Bureaucrat: David Hadley Responds to Baseless Muratsuchi Attack Mailers
Torrance, CA - State Assembly candidate David Hadley (R - 66th District) issued the following statement in response to baseless direct mail attack pieces from his opponent Al Muratsuchi:
Assemblyman Muratsuchi knows that his tenure in the State Assembly is coming to an end. He lost the June 3 primary to me. I have collected over 1,000 separate contributions and over $900,000 for my campaign, mostly from individuals and mostly in the South Bay, while Muratsuchi sustains his campaign with Sacramento special interest cash. Our private polling has me up by more than the margin of error with one month to go, and it must depress him to drive by all those Hadley lawn signs as he travels the South Bay.
So the Muratsuchi machine is getting desperate. Late last week his campaign accused me of having a 'record' of violating money laundering and financial disclosure rules.
This campaign should be about how we are going to improve our business climate so big companies like Toyota and small businesses can stay in California, and about how South Bay public schools should be a model for the state's many struggling schools, not punished financially by the Local Control Funding Formula. I want to contrast my defense of California taxpayers and Proposition 13 with my opponent's support of multiple tax increases and the gutting of Proposition 13.
Not only are my opponent's attacks baseless and wildly misleading, but they reveal the mind-set of a career bureaucrat, government employee and lawyer.
Muratsuchi's campaign has accused my firm of being fined for "recruiting investors without a license." The facts are these:
- I founded D.F. Hadley & Co. in 1999. We completed our securities registration nationally and in California in 2000, and we subsequently registered in New York when I hired New York personnel.
- In 2003 my firm was hired by children's book publisher Bendon Publishing. Bendon was small but growing, and they needed financing to continue their expansion.
- My firm arranged a $4 million financing for Bendon by a Connecticut investment firm.
- I did not realize that we needed a Connecticut license to arrange this transaction. When informed of the oversight, I promptly obtained the license and paid a $1,000 fine for the mistake. Nothing more to it. We have been licensed and in good standing in Connecticut ever since.
- And here is the great news! Bendon has created over 100 additional jobs since I first helped them. Bendon had only $3 million in revenue in 2002, it will have almost $200 million in 2014, growing over 50x. Furthermore, the firm that invested $4 million in Bendon sold their investment for $16 million less than five years later. That is what I call a win/win!
- Only a career lawyer and bureaucrat like Muratsuchi, a man who has never held a job in the private sector, would think this story a bad one. I am proud of my firm, proud of the companies I have helped build and the jobs I have helped create, and I know how hard it is to do business right.
Continuing his baseless fishing expedition, Muratsuchi's campaign also accused my firm of breaking money laundering rules. The facts are these:
- As a licensed securities firm, D.F. Hadley & Co. has been audited by our regulators every few years.
- After the 9/11 attacks on our country, Congress passed the USA PATRIOT ACT and increased the burden on securities firms to police money laundering. In our first audit after the 9/11 attacks, we were found to have fallen short in upgrading our procedures. We brought our performance up to standards and were fined $7,500 for these deficiencies. At no time did regulators ever suggest that any money laundering had taken place, or that there was any risk of such money laundering.
- My firm has been in existence for over 15 years, and has been licensed for over 14 years. We have assisted over 100 companies and have completed over $2.5 billion of transactions. In this entire period, we have incurred two penalties totaling $8,500, and both took place over nine years ago. These are not material fines.
Once again, I am proud of my firm and of my track record for integrity and effective performance for our clients. I believe that my background as a small businessman, husband and father of four public school kids is exactly what California and the South Bay need in our legislature. I call on Assemblyman Muratsuchi's public supporters to encourage him to focus his campaign on the issues the South Bay cares about.
For more information about my campaign, please visit www.davidhadley.com.
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