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Anonymous criticism decried by Gallagher

The gubernatorial candidate is "disturbed by the sentiment behind" documents implying a shady land deal.

By JONI JAMES
Published January 13, 2006

TALLAHASSEE - Republican gubernatorial candidate Tom Gallagher promised Thursday to post five years of tax returns on the Internet next week after anonymous documents were circulated to newspapers about a 5-year-old land deal he profited from.

Gallagher had already reported the sale of the Hialeah apartment building as part of his 2001 financial disclosure as a state official.

But the deal involved a longtime business associate of Gallagher's, Edward London of Miami, who has been scrutinized recently in connection with controversy at Citizens Property Insurance Corp., the state-run insurer of last resort.

London, who served on the board from 2002 to August 2005, was appointed by Gallagher.

Gallagher, Florida's chief financial officer, said, "I am not troubled by anything in the documents, but I am disturbed by the sentiment behind them."

He urged all gubernatorial candidates to agree to denounce personal attacks launched by anonymous and third-party groups during the 2006 campaign.

Attorney General Charlie Crist, who is Gallagher's Republican primary opponent, said he didn't know who circulated the materials. Crist countered that he had already denounced personal attacks in September when he, but not Gallagher, signed a Republican Party pledge to avoid negative campaigning.

"I couldn't agree with him more," he said.

Democratic candidate Jim Davis, a Tampa congressman, said yes to Gallagher's challenge.

The campaign manager of Davis' primary opponent, state Sen. Rod Smith, sidestepped the issue in an e-mail response, saying, "We believe that this campaign should be about the issues facing Florida's families and seniors."

At issue in the documents provided to the St. Petersburg Times and other newspapers this week is $692,272 in profit Gallagher realized in 2001 when he and a handful of partners sold the Hialeah apartment building after holding it for 17 years.

The partnership had bought the property from London's real estate concern, which also financed the deal.

Gallagher and London, who first met as sailors at Key Biscayne Yacht Club in the 1970s, have been business partners for decades.

For both men, it has had benefits.

In 1994, when Gallagher first ran for governor, newspapers reported his deals with London had made him a millionaire. London also benefitted in the 1990s when then-Insurance Commissioner Gallagher appointed him to help oversee a financially troubled insurance firm. That work eventually led to London's being president and chief executive of a small airline.

London most recently came under scrutiny for his unsuccessful attempt, while serving on the Citizens board, to launch a private insurance company that could benefit from bonuses given to companies that assume Citizens' policies.

The effort never got off the ground and was discovered only after London had left the board. But it came amid other allegations of self-dealing at Citizens by top executives.

Gallagher said he had no knowledge of London's insurance plan until it was over.

"I told him he came to the right decision" to scuttle it, Gallagher said.

Times staff writers Adam C. Smith and Steve Bousquet contributed to this report.

[Last modified January 13, 2006, 09:17:27]