Gov. Raimondo’s Chief-of-Staff Smiley Owns Company Fundraising for Elorza
Wednesday, November 30, 2016
When Providence Mayor Jorge Elorza needs funding from the State of Rhode Island, Brett Smiley is the point person to see in Governor Raimondo’s office. Smiley, the Chief of Staff, is the go-to staffer for the Governor, however GoLocal has learned that while Smiley is negotiating with the City of Providence, his company also getting paid by Elorza’s campaign. Smiley formerly served as Elorza's Chief Operating Officer.
Smiley’s firm CFO Consulting Group, LLC (he also started compliance and lobbying firms) has been paid more than $80,000 by Elorza’s campaign during the past two years and including payments made during the period of time that Smiley has served as Raimondo’s top staffer this year.
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According to Smiley’s State Ethics disclosure forms and RI Secretary of State’s Division of Business Services, Smiley is the founder and CEO of "CFO Consulting," which has received the tens of thousands in payments from Elorza's political account.
Smiley’s firm still trumpets him as founder on its website and states, “Politics is not just Brett’s career – it is also his passion. When he’s not working with a client or sitting in a kitchen cabinet meeting, he is most likely engrossed in an independent film or out for a run.”
Newly-elected House Minority Leader Patricia Morgan questioned Raimondo and Smiley for the appearance of conflict.
“I guess if it feels like a conflict, smells like a conflict, it probably is. Is it illegal? Probably not," said Morgan. "But is there no other fundraising firm that could do that work?”
Common Cause RI’s John Marion warned that the relationship could border on a conflict situation.
“Out of an abundance of caution Mr. Smiley could either sever his business relationship with the consulting firm altogether or seek an advisory opinion from the Rhode Island Ethics Commission," said Marion.
“Public officials have the responsibility to really put space between them and any conflict as much as possible -- and again, it's not like there aren't other [fundraising] firms out there,” said Morgan.
Raimondo and Point Judith
Raimondo is presently under scrutiny for her ownership interest in Point Judith Capital. As GoLocal first reported in October:
“Rhode Island’s investment losses in venture capitalist Gina Raimondo’s Point Judith Capital are piling up for the Rhode Island State Retirement Fund. At the end of 2015 it was bad, and at the mid-point of 2016 it is now far worse.
The state’s loss grew 127 percent over the past year, from a -1.1 rate of return in the period ending December 31, 2015 to a loss of -2.5%. The significant decline in the performance in the fund may indicate it is beginning to crater.
The fund that the state invested in called Point Judith Capital II, has been dismal for retirees, but now Governor Raimondo and her partners in the fund have earned massive fees - rain or shine.”
Raimondo’s interest has come under fire from a range of critics includes Forbes columnist and forensic auditor Ted Siedle, who told GoLocal, “It was a terrible investment by the state investment commission. Raimondo pitched to the pension in 2006 that they should invest with her because she was the only VC in Rhode Island — she wanted a special allocation.”
Gov's Office Response
A spokesperson for the Governor's office responded to questions about Smiley's business interests on Tuesday.
"Brett receives no income and does no work for the business. He has been on an unpaid, indefinite leave from CFO since 2013, when Meg Clurman took over. Meg has been the Mayor's fundraiser since the campaign," said Raimondo Communications Director David Ortiz.
The Chair of the Rhode Island Republican Party, however, questioned the relationship between Smiley's company - and the state's chief executive, and the state capital's chief executive.
"I would hope there is full disclosure between Smiley's CFO and his role as Chief of Staff for the Governor," said RI GOP Chair Brandon Bell. "At the very least this situation has the potential to undermine the impartiality of a person because of the possibility of a clash between the Smiley's self-interest and professional interest or public interest--- this has appearance of a 'classic' conflict of interest."
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