Overdisclosure

TMI.

While those three letters represent text message-speak for too much information, it also sums up the condition of a few financial disclosure forms filed by the region’s public officials. While many fell short of filling in all of the required spaces, some revealed more than the law requires.

The Bristol Herald Courier and News Channel 11 Connects spent the past four months reviewing the financial interest disclosure forms required of public officials in Southwest Virginia and East Tennessee. The investigation revealed that nearly 40 percent of about 700 forms in both states contained errors or omissions.

Yet, like a breath of fresh air, overdisclosure was considered neither an error nor omission.

In Virginia for example, the disclosure form asks for the name of every employer that pays the filer or immediate family members a salary or wage greater than $10,000 a year – excluding the state or local government position that required the filing. Constitutional officeholders can leave the item blank if no family member receives compensation. An elected retiree must merely check a box.
The form doesn’t ask for any amount, just the source of incomes greater than $10,000.

Fred Parker, the Washington County, Va., treasurer, listed his own $89,478 annual salary, plus compensation for being the agent for the county’s Industrial Development Authority and the Southwest Virginia Regional Jail in Abingdon, plus his wife’s annual salary from First Bank Virginia.

“I know you don’t have to do that, but my salary is public record, and I’d rather be safe than sorry,” Parker said in a phone interview. “I go back to the legislative intent of that form, and that was for public officials to disclose their private holdings so voters would know if they had a conflict of interest.”

In office since 1986, Parker said he has always provided the additional information.

For example, he receives $11,400 annual compensation for handling the bond programs for both the jail and development authority.

“The jail, for example is required by law to have a physical agent, and they usually get the county treasurer where the facility is located,” Parker said. “This is all considered extra work.”

Parker’s willingness to share information extended to the Schedule H-2 form he filed for “real estate holdings by local officials.” Beneath the three separate listings – totaling nearly nine acres – Parker listed the county property map number where the tracts could be found.

“That’s office habit,” he said. “The I.D. number is what we use to identify property.”

The county treasurer also listed an insurance policy with New York Life, even though the Schedule C securities form specifies the listing “excludes” certificates of deposit, money market funds, annuity contracts and insurance policies.

To be fair, Parker’s form was the exception. Of the forms examined, many were incomplete and even lacked some basic information. But there were numerous other examples of overdisclosure.

Sandra McGlothlin, an attorney and substitute judge in Virginia’s 29th Judicial Circuit, listed the acreage of some of her land holdings and provided additional details about the values of her investments.

“It was accepted by the Secretary of the Commonwealth as being what they needed. I think I more than fully disclosed what I was required to disclose,” McGlothlin said.

She also listed business interests but no values, which could look like an omission, but it’s actually because they generated less than $10,000 of gross income, she said.

While acreage amounts weren’t requested, McGlothlin said she didn’t include the information for each parcel because she didn’t know “exact” acreage.

J.H. Rivers, a member of the Wise County Board of Supervisors, appropriately reported stocks, bonds and mutual funds. In addition, he attached a detailed listing of the 22 publicly traded companies, banks and other funds included in his securities holdings.

That detailed information isn’t required either.

Rivers also attached a real estate listing delineating the three rental homes and two parcels of vacant land he owns – all in Big Stone Gap – and the three rental homes, apartment complex and vacant parcel listed in his wife’s name.

He did not, however, complete the required form for real estate holdings of local officials, which seeks the same information included on his real estate listing.

Charlie Collins, a member of the Russell County School Board, listed three separate annuities through Met-Life, Farm Bureau and John Hancock – even though all could have been left off because the form excludes listing annuities.

Each was listed as an “investment” and had values between $10,000 and $50,000.

In Bristol, Va., a majority of city officials completed older, 2006 forms that required listing all real estate holdings. The newer 2008 version calls only for listing “real estate other than your principal residence in which you or a member of your immediate family holds an interest.”

Filers aren’t required to disclose their primary residence, but everyone who filled out the older form did so.

In addition, some of the Bristol officials also filled out real estate forms for both state and local officials. They included Mayor Jim Rector and substitute Judge Faith Esposito.

Other city officials completed an unnecessary disclosure form designed for “certain citizen members.”

Another substitute judge, David Scyphers, listed the farm he owns with state Delegate Joe Johnson as a business interest.

“The farm Joe Johnson and I own together does not produce any income. I listed the tobacco buyout money as income there, although it probably was not necessary,” Scyphers e-mailed.

Other examples of overdisclosure include:

* Tazewell County School Board member David Woodward reported the profit margin of his own business not paid as salary or wages.
* Longtime Bristol Virginia School Board member Randy White – a retired school teacher – listed the Virginia Retirement System and Social Security Administration as sources of salary and wages.
* Bristol Virginia Councilmen Guy Odum and Ernie Sprouse listed sources of retirement pensions, which wasn’t required, under the salary and wages question.
* Bristol Virginia Commissioner of Revenue Terry Frye noted on a Schedule A form that he is an unpaid board member of nonprofit entities. The form asks only for a list of businesses that pay an officeholder or immediate family member to be an officer or director.

Staff writer Daniel Gilbert contributed to this report.

dmcgee@bristolnews.com | (276) 645-2532