Thursday, April 22, 2004
The treasurer said the investigations into him are political.
By DAVID SKOLNICK
VINDICATOR POLITICS WRITER
YOUNGSTOWN -- State Treasurer Joseph T. Deters, who plans to run for attorney general in 2006, said he won't be politically damaged by an investigation into the relationship a convicted Cleveland stockbroker had with his office.
In an interview Wednesday with The Vindicator, Deters said he did nothing illegal or improper.
A special prosecutor appointed by Cuyahoga County Prosecutor William Mason is looking further at the connection between Deters' office and Frank Gruttadauria, a Cleveland stockbroker who pleaded guilty earlier this month to, among other things, bribing an unnamed "public servant or party official."
Mentioned as candidate
Mason's name has been mentioned as a Democratic candidate for attorney general in 2006.
Deters wouldn't criticize Mason. Deters said that Democrats have been trying for years to discredit him.
"Democrats have had five different agencies in the past two years investigate me, and they've found nothing," he said. "That's their politics. They need to motivate their politicians to campaign in a positive way, and maybe they'll win."
That's a reference to Republicans holding every state elected executive office, and having a majority in the state House and Senate, and on the Supreme Court.
Gruttadauria was sentenced to 41/2 years in prison after admitting he gave $50,000 to Deters' campaign funneled through the Hamilton County Republican Party, an election law violation. He also admitted he gave $7,000 to Deters' campaign through others, circumventing state election laws.
Gruttadauria's ex-employers did $5.9 billion in trades with Deters' office. Before he was hired by SG Cowen Corp. in 1999, the company did no business with the treasurer's office.
Deters insists there was no "quid pro quo" in his office's relationship with Gruttadauria, adding that the broker didn't do any of the trades personally.
Deters acknowledged that Gruttadauria approached him about having his company do business with his office, and after undergoing a background check, his company was hired. Deters said the state made $87 million in profit on those trades.
'Stellar reputation'
"He had an absolutely stellar reputation in Cleveland, particularly in the Italian community," Deters said of Gruttadauria. "Friends of his who I knew spoke very highly of him. If we had any indication this guy was bad news, we wouldn't have gotten within 10,000 miles of him."
Deters said he used Gruttadauria's plane on two different occasions, but reimbursed him for the cost of the flight in accordance with state policy.
Deters said the investigation hasn't hurt his political career, and he plans to still run for AG in 2006.
He also said he doesn't know who the identity of the unnamed "public servant or public official" Gruttadauria admitted he bribed.
"Deters will be politically damaged only if it comes out that had an illegal connection to Gruttadauria, said William Binning, chairman of Youngstown State University's political science department.
"He's not damaged yet, but we have to hear the rest of the story," he said. "Most people don't connect him to this investigation yet. I don't think it's had enough play. If it doesn't get to Joe, I don't see how it does him any damage. If you went out on the street and asked 10 people about Deters, I doubt any of them would know anything about this."
skolnick@vindy.com