Chamber Wants To Rein In Attorney General's Spending

Charleston Daily Mail, March 15, 2006

The state Chamber of Commerce already has spent close to $300,000 on ads urging lawmakers to crack down on spending by Attorney General Darrell McGraw, and it pledges to spend more until state officials take action.

The Chamber, which has about 5,000 members across the state, began buying television, radio and newspaper ads in February, halfway through this year's 60-day legislative session, calling on lawmakers to put more limits on how McGraw's office hires outside attorneys and distributes money the state is awarded through consumer protection lawsuits and settlements.

"Our intent is to keep asking questions and to keep saying that the Attorney General's office needs more scrutiny until the issue gets some attention," Chamber President Steve Roberts said Tuesday. "What we are seeing is an arrogance of office. When we ask questions we're greeted with the question, ‘How dare you ask?' We don't like that."

Roberts and foes began criticizing McGraw a few months ago, stepping up their scrutiny in February when McGraw gave a high-profile handout of $500,000 in state funds to the University of Charleston 's pharmacy school.

The money was derived from a $10 million settlement McGraw's office won from a pharmaceutical company accused of dishonestly marketing the drug OxyContin. More than $3 million of that money went to pay attorneys McGraw hired to help with the case, and the rest is being divvied up at McGraw's discretion among community groups and projects around the state.

Lawmakers already have called for the process to change, but a bill on the issue failed during the last hours of this year's legislative session. Legislators have said they want more oversight in how McGraw's office distributes money collected from such lawsuits and settlements, but have disagreed on a uniform system of controls that would affect McGraw and other state offices.

Right now, McGraw and his staff decide who gets the funds taken in from such lawsuits. Some money goes directly to consumers who have been involved, and the rest is handed out to groups McGraw selects on the basis that they might work with issues or people affected by the lawsuits.

Some of the money from settlements goes back to other state agencies that have played a role in a lawsuit or were negatively affected by a company or a product.

Roberts said those agencies don't see enough of the money, and all awards should be put back into the state's general revenue fund so more groups in the state get a chance to see a chunk of the cash.

He said business owners involved with the chamber are upset with the way McGraw has been doing business and with the way his office hires attorneys to work on consumer protection lawsuits.

"This situation gives rise to the appearance of backroom deals for McGraw's friends and campaign contributors," Roberts said.

McGraw's office has denied any problems with the way it processes cases and distributes funds. McGraw and his representatives say the criticism against them is politically motivated and done on behalf of businesses that don't want any scrutiny from the attorney general's office.

"The allegations they're making are false," said deputy attorney general Fran Hughes, the spokeswoman for McGraw's office. "We believe people should consider the source of this information. These are some of the same companies that we have had to sue, and they're trying to shift the burden from them paying for the state's attorneys to the taxpayers paying for attorneys."

Hughes said information about outside counsel hired by the office is available to the public. McGraw's office has repeatedly said that pursuing consumer complaints and related lawsuits requires the help of experienced, often pricey attorneys in addition to office lawyers already on the state's payroll.

"The attorneys don't get paid if we don't win a case," Hughes said. "There isn't any court order or arrangement we have with any outside counsel that isn't public record and isn't open."

Roberts said the chamber plans to continue running advertising and lobbying for legislative change for at least the next few weeks, and will file expense reports with the state in the coming days.