School board members unaware of campaign contributions

Prosecutor says only one member knew about contributions.

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By Denise G. Callahan and Steven Matthews
Updated 10:45 AM Friday, September 9, 2011

FAIRFIELD —Fairfield school board members Dan Murray and Mark Morris did not know more than $10,000 of in-kind contributions they received in their 2009 campaigns had been secretly funneled from a local businessman, prosecutors say.

Butler County Prosecutor Mike Gmoser said Thursday only board member Sharon Ko knew the contributions the three school board members had received from the political action committee, Moms on a Mission, had come from Tom Burer.

Burer, whose business has a $1.5 million contract with the Fairfield School District, pleaded guilty this week to a fourth-degree felony of attempted tampering. Officials said he was secretly funneling approximately $26,000 in campaign funds to the PAC through family members and employees of his company so his name could be kept a secret.

The money was then given to Murray, Morris and Ko through in-kind contributions and cash, Gmoser said.

Ko, who has refused to comment about the case, received the lion’s share of money that was laundered through Moms on a Mission, according to Gmoser. Ko resigned from the board on Aug. 25, citing personal reasons.

Murray and Morris each received $5,355 worth of in-kind contributions in the form of fliers that were sent out supporting the running mates, who dubbed themselves the “Three Good Apples.”

Gmoser said he did not have evidence to show Murray and Morris knew who the contributions came from.

“My campaign finance report speaks for itself,” said Murray, the vice president of the board. “I wasn’t trying to hide anything. As a board member, I’ve always put the interest of the kids first, whether it’s safety or education. That’s the only thing that drives me in terms of why I’m on this board.”

Morris, who was elected to the board in the fall of 2005 and was second in the 2009 race to Ko, said he was interviewed by the FBI in August 2010 and had not been involved in the investigation since. Murray — also elected in 2005 and third in the 2009 race — was not interviewed by the FBI, he said.

“I don’t like my name being attached to it because there’s an inference,” Morris said. “If they had something on me or Mr. Murray, we’d be in a similar boat, obviously.”

Gmoser said at first Ko did not know Burer was her benefactor. She eventually found out but didn’t stop the money trail, which totaled $15,500.

Gmoser said Ko cooperated with him and was going to be a witness against Burer if the case went to trial. But he did not pursue Murray and Morris.

“I did not believe that I have a sufficient basis to approach them to resign in the same manner I did Ko,” he said. “I work on what evidence is provable and my case was entirely with Ko.”

Assistant Prosecutor Dan Ferguson said every time a campaign bill came through that Ko couldn’t pay, Burer told friends, family and employees to send money to the PAC and he then paid them back.

The Burer family has had no-bid vehicle maintenance contracts with the school district for more than 70 years, except for a brief stint in the early 1980s. The Burer Garage, LLC contract with the district was set to expire in 2009 and then-school board member Arnold Engel balked at renewing the contract without seeking competing bids.

Gmoser said Burer viewed Ko as an “ally” who would protect his relationship with the district and that’s why he secretly bankrolled her campaign. Had he not hidden behind the PAC, his donations would have been legal.

Engel called for the school board to “sever all ties with the bus vendor and demand the resignation of both Murray and Morris ASAP.”

“If Murray and Morris have any respect at all for the voters of the district,” Engel said, “they will understand the necessity of their immediate resignation.”

Morris said he has “no plans on resigning,” while Murray said he has “no intentions on resigning.”

Universal Transportation Services, in which Burer retired as president on Sept. 1 and no longer has a “direct stake” in the company, also has a contract with the Fairfield district to transport special needs students.

While the 2011-12 pricing agreement hasn’t been signed yet, the agreement is under review and the district is operating under the old one, said Treasurer Nancy Lane.

The district has approximately 30 agreements with vendors, from “custodial supplies to office supplies to athletics to food service,” Lane said.

“The charges and the outcome are separate from the work of the board,” board President Jerome Kearns said. “We are ensuring safe and reliable transportation, as well as other things. If we are aware of any similar situations, we’ll evaluate those, too. Because this happened, does it bring up any concern with our other contracts? I’d have to answer no.”

Last month, the school board decided unanimously to place a 6.5-mill operating levy on the Nov. 8 ballot. “Any time something comes out negative and it’s tied to Fairfield City School District, it’s always a concern,” Superintendent Paul Otten said. “This is an issue that isn’t related to the business of the school in terms of what we do and what our mission is. Our job is to educate our kids and we don’t want them to get distracted by what is happening.”

Gmoser said the FBI uncovered Burer’s “scheme” while investigating the case against former Butler County Commissioner Mike Fox. Burer was also president of Universal Transportations Systems and his family operates Winton Transportation Services, which was named in a federal indictment of Fox. The indictment alleged that an unnamed official from the company gave Fox $5,000 in 2004, while he voted on their contracts with the county worth $5.8 million.

Fox was convicted in 2010 on federal charges and is awaiting sentencing.

Gmoser said he was glad Burer pleaded guilty because it saved the county from a trial. He also issued a stern warning to others who might consider skirting the law.

“The warning is very simple,” he said. “The Butler County Prosecutor’s Office has the time, the ability and the resources to follow the money and we’ll continue to do so.”

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