EXCLUSIVE: Point Judith Capital Newly Features Raimondo — Questions Raised About Marketing Governor
Thursday, February 20, 2020
Rhode Island Governor Gina Raimondo is now featured prominently on the website of her venture capital firm PJC, formerly called Point Judith Capital. This marketing of Raimondo is drawing questions and criticism from Common Cause Rhode Island and top SEC whistleblower Ted Siedle.
“Point Judith Capital's decision to list Governor Raimondo as a ‘General Partner Emerita’ on their website appears to be an attempt to profit off of her name. We know she has no role in running the business, so why should her name be listed on the website?,” said John Marion of Common Cause.
In January, Raimondo’s spokesperson Josh Block told GoLocal after the Governor named the firm’s managing partner David Martirano to the new board overseeing the University of Rhode Island — “She resigned from the firm [Point Judith] nearly a decade ago and has no involvement in any decisions that are made.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTRaimondo’s firm’s website states, “Gina Raimondo is the General Partner Emerita of PJC, and currently serves as the 75th Governor of Rhode Island. In 2001, Gina partnered with David Martirano to found Point Judith Capital in Rhode Island. Point Judith Capital subsequently relocated to Boston in 2011 and later rebranded to PJC.”
Raimondo only recently returned to the firm's website — she was removed for a decade.
And, Raimondo had promised the Rhode Ethics Commission that she has "taken appropriate measures to distance herself from Point Judith and her investments in its funds..." according to an advisory opinion issued in 2011 after she was elected as Rhode Island's General Treasurer.
Today — Raimondo is Featured
Now, Raimondo is prominently displayed and her image and bio are used to market the firm.
“The leading form of marketing for a venture capital firm or private equity firm is their website,” said Ted Siedle, the SEC Whistleblower and columnist for Forbes.
“It raises ethical and federal securities issues. What is an investor to believe about the firm and Raimondo’s involvement?" questions Siedle.
The issues are further complicated by the State of Rhode Island’s retirement fund's investment in the firm and an advisory decision by the Rhode Island Ethics Commission regarding Raimondo’s ongoing ownership and a so-called blind trust.
Further, the marketing of Raimondo’s involvement could be in conflict with the restrictions placed on her role with the firm dictated by the Ethics Commission regarding her ownership interest and the corresponding opinion of the ethics commission.
Raimondo's spokesman wrote in an email to GoLocal in January, "As you will note in the last paragraph: “The Petitioner informs that she intends to recuse in the manner set forth above. She has also taken appropriate measures to distance herself from Point Judith and her investments in its funds, through her resignation from the firm and by the creation of the Blind Trust to manage her investments.”
Raimondo's office has repeatedly refused to respond to requests for comment about her being marketed by Point Judith (PJC).
History
Raimondo and her firm Point Judith have a long and complicated relationship with the State of Rhode Island. Today, the firm describes itself as "PJC," an "early-stage venture firm focused on investing in, supporting, and building relationships with entrepreneurs who are creating the future."
According to a Providence Journal story published on September 11, 2001, that announced the founding on the firm — Raimondo and Steve Griffin founded the firm. Others involved with the firm at its inception included Bernard Buonanno — then a partner in Riparian Partners and chairman of the RI Convention Center Authority.
“Despite the bleak economy, things suddenly look brighter for technology entrepreneurs across Rhode Island. Providence's Point Judith Capital Partners will announce today that it has raised $14 million, which it plans to invest in emerging technology companies across Rhode Island and Southeastern Massachusetts over the next five years,” reported then Providence Journal reporter Andrea Stape.
Later, Point Judith took on more investors and the state of Rhode Island's employee retirement fund made a $5 million investment. That investment has been highly controversial as the Point Judith has underperformed and the state has been unable to extricate itself from the investment.
Martirano refused to answer questions about why she is now featured on the website, but told GoLocal, “The investors in the fund, Gina and myself reorganized it, doubled the size of the fund and we made our first investment in May 2002.”
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