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Political consultant Jon Coley defends his actions in not paying his bills or telling his current clients.
By DAVID KARP, Times Staff Writer
© St. Petersburg Times, published January 26, 2002
TAMPA -- At the open house for his new business last December, political consultant Jon Coley showed off his new office on Platt Street and displayed some of the biting political brochures that have made his name.
He also could boast about his new business partner at the firm of Latvala, Coley and Co.: state Sen. Jack Latvala, chairman of the Senate congressional redistricting subcommittee.
But what potential new clients didn't see were the unpaid bills left behind from Coley's last campaign business.
Coley, who has represented candidates such as Tampa City Council member Bob Buckhorn, State Attorney Mark Ober, Hillsborough County Commissioner Jim Norman and County Commissioner Thomas Scott, owed creditors $210,000 from past campaigns, according to court records.
In August, his company, Coley Communications, declared bankruptcy and left creditors that included the Republican Party of Texas with unpaid bills.
"The technical legal expression is "OTL' -- out to lunch," said Tampa attorney Mark P. Kelly, who represented the Texas GOP.
After both sides filed lawsuits, a Texas judge ordered Coley to pay the state party $17,000 plus interest. Soon after, Coley declared bankruptcy.
"Surprise, surprise," Kelly said. "It happens all the time in Florida. That is why we are referred to as a debtor's haven."
Several direct mail and printing companies also filed suit in state court against Coley, claiming he owed them money. They also filed claims in U.S. Bankruptcy Court for payment.
In an interview, Coley blamed his financial problems on a bookkeeper and vendors that overcharged. "Maybe it was caused in part by me, but in part by other people and vendors," Coley said.
He couldn't afford to fight the overcharges in court, he said. "There were valid reasons not to pay these bills."
Coley said he didn't tell his current clients about his financial problems until the St. Petersburg Times called some of them this week.
"I didn't think it was an issue before today," Coley said.
Latvala, a Palm Harbor Republican, said he knew about some of Coley's financial problems when the pair joined forces in October.
But Coley's debts had nothing to do with Latvala or their new company, he said. Incorporation papers list Latvala as the sole officer of the limited liability company.
"What happened before the time he worked with me is not any of my business," said Latvala. "The debts don't have a damn thing to do with me."
Before forming Coley Communications, Coley worked for Latvala's direct mail company and did a good job, Latvala said. "He was a good employee. He is a good partner now."
Former prosecutor Leland Baldwin, who ran unsuccessfully for judge in 2000, said Coley was "nothing but classy."
Others haven't been as pleased with his work.
When he was running for state attorney in 2000, Mark Ober's campaign paid Coley $120,712 for campaign work. Coley was supposed to pay vendors for ads and fliers.
Ober said Coley assured him he had paid all of the campaign bills. Then Ober got a letter from a company saying Coley owed $868 for work on Ober's campaign. The letter asked Ober to cover the expense.
Although Ober was not liable for the debt, he agreed to pay it after Coley's bankruptcy case is finalized.
"I'm not happy about it," Ober said.
- David Karp can be reached at 226-3376 or karp@sptimes.com.