Afternoon Crank: “Giving the Appearance that the Chair Was Partying on Contributions to the Organization.”

1. The treasurer for the King County Democrats, Nancy Podschwit, along with several other members of the group’s finance committee, has called for a special meeting to remove embattled chairman Bailey Stober in a letter documenting no fewer than 13 instances of what they refer to as “inappropriate” spending by Stober. The letter and an accompanying memo add details to the financial case against Stober, who is also accused of targeting his female coworkers and a former employee whom he fired of sexual harassment and bullying.

Among other claims, the finance committee members say that Stober:

• Spent thousands on unauthorized entertainment and travel. The King County Democrats’ budget authorized $3,100 for “travel and entertainment.” “Per the budget, this was intended to be a $100 stipend per state party meeting for the chair and state committee people to attend the three state party meetings, as well as sponsorship for the WSDCC meetings,” the memo says. “However, it appears to include many other trips, and includes mileage, hotels and restaurants. … At no point has the chair asked for budgetary authority for general entertainment or travel purposes.” This extra spending included $2,336 to reimburse Stober for mileage on trips in the Seattle area and around the state, as well as two Airbnbs—one for a state committee meeting, which cost $857, and another for a board retreat, which cost $968. Most members of the board were told to reserve a few daytime hours on a Saturday for the retreat, but a select group was apparently invited to spend two nights at the house on Vashon, which was equipped with a hot tub, with all expenses paid for out of county Party funds. According to the memo, “The chair and some others stayed at the facility for Friday night and Saturday, posting on social media about grilling and drinking, giving the appearance that the chair was partying on contributions to the organization.” 

• Spent unauthorized funds on lightning-speed, business-level Internet service. Although the board authorized $250 a month for all utilities, combined, Stober signed a contract with Comcast for its most expensive, top-of-the-line business planthe “Deluxe 250,” which cost the group more than $500 a month. Comcast recommends the Deluxe 250 for e-commerce businesses with 12 employees or more and “extensive employee and customer wifi usage.” The King County Democrats had one employee (they now have none).

• Misled King County Democrats members and the board about the failure of its annual fundraiser, by claiming they had raised $17,100 when in fact it had resulted in a net loss of $730. (Once late contributions were counted, the event—which cost the party more than twice what was originally budgeted, and several thousand dollars more than a revised budget—raised about $630.) UPDATED: A member of the group has brought additional information to my attention suggesting that some of the revenues from pledges associated with this event may have been logged as part of the group’s general fundraising revenues, which would increase the net profit from the event. I will update this post when I get more detailed information about how these pledges were counted in the group’s budget.

• Misrepresented the success of the group’s fundraising in general, claiming at meetings that the group was meeting or exceeding fundraising goals when, in reality, fundraising fell short by more than $18,000 in 2017.

• Made most of the group’s campaign contributions last year in violation of bylaws that say the board must approve endorsements and contributions. These contributions included $75 to Matthew Sutherland, a candidate in Eastern Washington who was not endorsed by the group, which doesn’t generally endorse or fund candidates outside King County.

• Spent $10,135 more on candidate contributions than he was authorized to spend under the organization’s adopted budget, which included $20,000 for donations to candidates and campaign committees.

• Doled out contributions without board approval, despite repeated warnings that the board needed to sign off on such expenditures. Tara Gallagher, a member of the finance committee, is quoted in the memo saying that she met with Stober to discuss the unapproved contributions, and that he told her he would address it at the next board meeting. However, according to Gallagher, “At the next meeting he went into executive session to discuss the budget, which is weird, and mumbled something about the contributions when it would not show up in the minutes” because executive sessions are private.

• Signed an office lease through December 2018 that cost more than double ($1,800 a month) what the board approved ($800), without telling the board about the extra $12,000 annual commitment.

• Spent $6,600 in unapproved funds remodeling the rented office space—the sort of expense, the memo notes, that is typically borne by a landlord—along with $3,877 on office furniture and $5,500 on “office supplies,” nearly $5,000 more than the approved budget of $517. “It is unclear why this is so far over budget, however the treasurer notes that a laptop for the executive director, a printer and other items for the office were purchased,” the memo notes.

2. Podschwit brought up the financial allegations in a heated meeting of the 37th District Democrats last night, at which several officers proposed a resolution calling on Stober to step down and resolving to withhold dues from the King County Democrats until he does. (Ultimately, the resolution—which mirrored similar proposals that have been approved or will be considered in other districts—failed by a vote of 27 to 16.) In her comments supporting the resolution, Podscwhit described watching helplessly as Stober drained the group’s checking account. (Stober was, according to multiple people with direct knowledge of the situation unable to get bank approval to be on the checking account, so instead he directed Koss Vallejo’s spending.)

“I truly believe part of the harassment that Natalia went through was him asking to spend money over my continued telling her not to,” Podschwit said. “And I felt terrible—every time I would get a charge on the bank statement or a check that cleared that I was not told about, the first person I would contact was Natalia, and Natalia would tell me that Bailey told her that he was her boss and he told her to do it. We had repeated conference calls [with Stober and the group’s finance committee] on Monday nights where we went over this over and over again as the money slowly drained out of the checking account. … We have text messages, we have emails, explaining to us in no uncertain terms that he was large and in charge. Much like Donald Trump, he was the only one that could fix it. Well, we’re broke.”

Most of the time allotted for discussing the resolution calling on Stober to resign was taken up by a lengthy, discursive, and often misleading explanation of the proposal by 37th District Democrats chair Alec Stephens, a staunch Stober ally who previously compared his treatment by the King County Democrats to a lynching. (Stober and Stephens are black.) Stephens spent nearly 15 minutes very slowly explaining the events that led up to the resolution (“On the vice chairs’ side, they’re down to one now, as opposed to there were two, then there were originally three, or there were originally four…”) before taking the podium again, this time to speak explicitly against the resolution.

“The very first investigation that was done, in my opinion, was totally flawed. Its biggest flaw was not taking the time that we still have not had to actually hear from the accused.” (According to the vice chairs who did the initial investigation, Stober refused to speak to them without a lawyer present, then stopped responding to their requests to meet). He continued: “I am playing no cards, but there is a racial dynamic to this that is of great concern to me. … I think we have to let the process play out and not just say, ‘Well, we’ve decided, and so”—even without hearing him”—you’ve got to go.” At that point, a man’s voice rang out. “It’s called due process!” “It’s called due process,” Stephens echoed.

Shasti Conrad, the King County Committeewoman for the 37th District and—like Koss Vallejo, Stober’s alleged victim, a woman of color—had a response for that question. Speaking in favor of the resolution, she said: “You want to talk about due process? Where is the due process for the woman he fired while there was an ongoing investigation happening? What about the due process for the women who were subjected to that hostility in that work environment? What about the women who had to put up with the jokes, the comments, feeling less than because there wasn’t space for them to speak up? What about due process for them?  … I love this party, but if we are not able to stand up for women’s rights, for victims of sexual misconduct, if we are going to turn a blind eye to blatant financial malfeasance, then I no longer feel safe here.”

Later, Conrad said on Twitter that she was “heartbroken” by the “painful” experience of being “shouted down as I was calling for a Democratic Party free of sexual harassment and a party that is safe for all.”

Meanwhile, a second investigation into Stober remains stalled, as I reported Monday, because the one remaining vice chair has been unable to find volunteers to serve on the five-member panel investigating Stober. Notably, that panel will include two members directly chosen by Stober himself—one reason some potential volunteers have reportedly declined to participate in the process. Stober has called a special meeting of the executive board for next week to discuss next steps in his own investigation.

3. While that meeting was going on (I watched it after the fact thanks to video posted by the King County Precinct Committee Officers’ Media Group, or PCOMG), another meeting, also with a subtle racial subtext, was happening across town. The city council’s Planning, Land Use and Zoning committee held a public hearing at Northgate for residents of Districts 5 and 6, which encompass most of North Seattle, to weigh in on proposed upzones that will impact 6 percent of the two-thirds of Seattle’s residential land that is zoned exclusively for single-family use. Longtime (white) homeowners invoked theoretical ruined gardens and equally theoretical immigrants, refugees, and people of color who would be impacted by allowing more housing in the city, and renters, advocates for workers and low-income people, and even a few homeowners pushed back. I’ve collected those tweets in a Twitter moment.

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12 thoughts on “Afternoon Crank: “Giving the Appearance that the Chair Was Partying on Contributions to the Organization.”

  1. Pingback: Bailey Stober, former King County Democrats Chair, announces he will run for legislature - Washington State Wire

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  3. Pingback: King County Democrats Chair Resigns After Internal Trial on Harassment Allegations - Slog - Ryan Guillory

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  5. Pingback: Majority of King County Democrats Executive Board Calls on Chair to Resign Amid Harassment Allegations - Slog - United Democrats

  6. Pingback: Majority of King County Democrats Executive Board Calls on Chair to Resign Amid Harassment Allegations - Slog - Ryan Guillory

  7. Why don’t I think of things like this. It cost me 10-15k per year (less in non-election years) to be Chairman of the Pierce County Republican Party. No expenses were allowed, no meeting stipends nor travel “pay” whether for state committee meetings, state committee executive board meetings, or state or national conventions. All voluntary all the time. Including giving to candidates across the county and state personally, when one would normally give to candidate “in your district” whether Congress or water commissioner. If my wife finds out about others getting paid to be a party officer, I would be in deep, serious kimchi.

    • Mr. McCarty’s comments are not surprising. Lots of comfortably well off people in the Republican Party, who can afford to cover all their own expenses.

      • Ahh, yes, social security and military retired and disability pay is the very definition of comfortably well off. Steyer, Bezos, Gates, Soros and personal data seller Zuckerberg are uncomfortable in their well-off-osity.

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