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Do IT this week: Layering
House near campus was part of package deal, Morrison says at father's trial
By Carol Biliczky
and Rick Armon
Beacon Journal staff writers
Published on Wednesday, Jul 29, 2009
The son of a University of Akron trustee said Wednesday he was forced to buy a house at 334 Spicer St. that he later agreed to sell to UA for a 42 percent profit.
He said he had to buy it as part of a package deal in order to get two other homes he did want.
Jack W. Morrison was one of several people to testify on the first day of the ethics trial for his father, Jack Morrison Jr., in Summit County Common Pleas Court.
The elder Morrison is accused of seven misdemeanors for failing to properly disclose his interest in a house owned by his son that UA was within a hair's breadth of buying.
Since 2005, the son has borrowed $156,400 from a family foundation, his parents and a trust fund. But the father did not tell UA or the Ohio Ethics Commission that he was receiving interest payments on some of the money, prosecutors allege.
Summit County Assistant Prosecutor Jay Cole accused the elder Morrison of using ''cloak and dagger'' moves to cover up his involvement. Paul Adamson, the elder Morrison's attorney, said the prosecution could not prove his client benefited from the transaction.
The son testified that Brian Coffman agreed to sell him houses at 359 and 369 Rankin and 344 Spicer streets only as a package. All the homes are in University Park, a modest neighborhood primarily of rental homes just south of campus. The younger
Morrison buys and fixes up homes in the area to rent to UA students.
The younger Morrison said he asked his father for money to help buy the three homes because they were in poor condition and he could not get a commercial loan. He said he did not tell his father what he planned to buy.
In a separate loan, the younger Morrison borrowed $52,000 from his father and mother, Victoria, in January 2007 for a house at 355 Rankin St. He also borrowed money from a trust fund.
The university was in the process of buying homes immediately south of campus to amass enough land to build an on-campus stadium and residence hall.
The house at 334 Spicer was within the projects' footprint. UA officials had tried to buy the home at 334 Spicer from Coffman before he sold it to Morrison for $77,000.
On the witness stand, the younger Morrison said his father loaned him $75,000 from the Morrison Family Foundation to help buy the three homes for a total of $110,000.
The younger Morrison said there was no paperwork for the loan and he offered no collateral. He said he didn't know anything about the foundation and made his checks — for 1 percent a month interest and for principal — out to his father.
One check for $750 in interest in December 2006 included a notation in the bottom left corner for ''334 Spicer.''
The younger Morrison said he handed his checks to his father at the Amer Cunningham law office in Akron, where the father is president and the younger Morrison is an associate.
''Did you have a loan from the Morrison Family Foundation?'' Cole asked the younger Morrison on the witness stand. Yes, he replied. ''Why didn't you make any of the checks payable to the Morrison Family Foundation if that's who gave you the money?''
The prosecution also maintained the elder Morrison used a less direct route to get the money to the son. The elder Morrison transferred the money from the family foundation to an account at his law firm and then wired it to the title agency that handled the closing of the sale.
UA general counsel Ted Mallo testified that university officials were not aware of the arrangements between father and son.
Mallo said he advised the elder Morrison to abstain from voting on the purchase of properties that included his son's, which he did. However the elder Morrison did not mention that he helped to finance his son's business.
''Upon reflection, I should have quizzed him in more detail,'' Mallo testified.
The prosecution maintained the younger Morrison was not cooperative, dodging phone calls and refusing to meet with Cole in preparation for the trial.
''Why would I help you convict my dad of something he didn't do?'' the younger Morrison said. ''I'm telling the truth. It is what it is.''
When details of UA's planned purchase came to light, UA officials, including the elder Morrison, asked the Ohio Ethics Commission to advise if they had done anything wrong.
That set an investigation in motion that led to the elder Morrison's indictment in December.
If convicted of at least three misdemeanors, he could face up to 18 months in jail and a $3,000 fine.
In addition to his service as a university trustee, Morrison is chairman of the county Board of Elections and law director for Munroe Falls.
The university has delayed the purchase of the home at 334 Spicer pending the outcome of the trial. The stadium and residence hall are being built around it.
The case is being heard by visiting Judge Judith Cross, a retired Medina County common pleas judge. She also will decide Morrison's guilt or innocence because he waived his right to a jury trial.
The trial continues today.
Carol Biliczky can be reached at 330-996-3729 or cbiliczky@thebeaconjournal.com. Rick Armon can be reached at 330-996-3569 or at rarmon@thebeaconjournal.com.
The son of a University of Akron trustee said Wednesday he was forced to buy a house at 334 Spicer St. that he later agreed to sell to UA for a 42 percent profit.
Get the full article here.
Comments
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Akron, OH
Posted 07:01 AM, 07/29/2009
Based on the reportin' of this case, the judge should have probably tossed this case out long ago.
I'm sure there's more to it, by why report it iff'n they aren't goin' to provide much of the testimony.
We've already read the rhetoric several times now.
akron, oh
Posted 07:07 AM, 07/29/2009
I hope the Court applies the Joe kidder Standard for Ethic's violation established by Prosecutor
Sheri Bevan Wash. Since Morrison loaned money and made no more than he would from a bank, there is no benefit.
"No Benefit You Must Acquit."
Tallmadge, Oh
Posted 08:39 AM, 07/29/2009
Joe Kidder still lives in the house that his problems occured with and he did eventually lose his job over his ethics charge. Plus his problem was with the city not the state. Morrison's problems were with the selling of a house that was to be demolished that his son just happened to be purchasing within a time frame that looked like there may have been knowledge about what was going to happen within the next year or so to that area. That house does not look like it had 30,000 bucks of renovations to me.
Hudson, OH
Posted 09:20 AM, 07/29/2009
Interesting that the son-an attorney-would admit not cooperating with the investigation of a state agency. Specifically, his full cooperation and "truthfullness" could have exonerated his father with his full cooperation being that "I'm telling the truth. It is what it is." He didn't seem to want to be doing much "telling" of the truth by avoiding phone calls of investigative officials and eventually forcing subpoenas to obtain information.
Also, how did the missing information relating to Morrison's required disclosure forms as a University Trustee (RC 102.02) coincidentally wind up being key information needed by the University of Akron (University vote on October 8th, 2007), the State Controlling Board (Vote on October 29th, 2007), and the Ethics Commission (Examination request to OEC by University of Akron/Jack Morrison dated November 1, 2007) to fully disclose his relationship with his son's business beyond being simply the father? Why did that relationship need to be dragged out over several months by numerous supboenas instead of simply being disclosed "truthfully" and "cooperatively" by the son and father? They had several opportunities to clear the situation up.
Columbus, OH
Posted 10:01 AM, 07/29/2009
McDonald is employing the usual tactic of the Arshinkoff crowd (Morrison is Arshinkoff's henchman btw). Divert attention to something else.
The law is pretty clear. Trustees SHALL not have an interest in a contract. Period. Slam dunk. Doesn't matter what his interest rate was.
The other stuff about him covering his tracks and concealing the interest is added gravy for prosecutors.
My message to the Arshinkoff cult and the local GOP - disavow Morrison and quick. Summed up well here: http://www.newsummitrepublicans.com/
Posted 10:08 AM, 07/29/2009
Mr. Morrison has done so many wonderful things for the community. He is an outstanding attorney who has won the Superlawyers award for several consecutive years. He spends countless hours on committees and boards. And never misses a meeting. Mr. Morrison also does a tremendous amount of pro-bono work. We need more upstanding citizens like him. The summit co. democrats just wished they had him on their side!
Tallmadge, Oh
Posted 10:26 AM, 07/29/2009
Boy oh boy. Ain't he just a real peach? He cares so much for us. Does anyone have anymore swampland in Hudson I can buy?
Hudson, OH
Posted 11:47 AM, 07/29/2009
Mr. Morrison, the son and elder, may very well have violated Ohio's Rules of Professional Conduct and could potentially find themselves(pending outcome) subject to further disciplinary action by the Ohio Board of Commissioners on Grievances and Discipline.
---------------------------------------------------
Ohio Rules of Professional Conduct
RULE 8.4: MISCONDUCT
It is professional misconduct for a lawyer to do any of the following:
(a) violate or attempt to violate the Ohio Rules of Professional Conduct, knowingly assist or induce another to do so, or do so through the acts of another;
(Son's actions with respect to the investigation)
(b) commit an illegal act that reflects adversely on the lawyer’s honesty or trustworthiness;
(Failure to properly disclose required information - the fraud charge.)
(c) engage in conduct involving dishonesty, fraud, deceit, or misrepresentation;
(At issue in this case.)
(e) state or imply an ability to influence improperly a government agency or official or to achieve results by means that violate the Ohio Rules of Professional Conduct or other law
(h) engage in any other conduct that adversely reflects on the lawyer’s fitness to practice law.
Source: http://www.law.cornell.edu/ethics/oh/code/OH_CODE.HTM#Rule8_4
akron, oh
Posted 02:46 PM, 07/29/2009
Buckeye Arshinkoff Tactics, hmmm. I have met Mr. Arshinkoff once in my life although he does say hello or nod if he sees me out. I am hardly in the Republican fold so no dice there. Mr. Morrison did not receive a benefit so there will be no conviction. I have never met Mr. Morrison.
akron, oh
Posted 02:47 PM, 07/29/2009
Spirit, Did wiener Jones give you the script, get serious.
Tallmadge, Oh
Posted 03:22 PM, 07/29/2009
It looks like the Ohio Revised Code gave him what he is quoting to me.
akron, oh
Posted 06:42 PM, 07/29/2009
Morrison found guilty on 2 counts. $1000. fine and 1 year probation. Appeal to follow.
akron, oh
Posted 08:54 AM, 07/30/2009
Pale horse, you need swamp land in hudson, call Agere Co. they can sell you plenty.
akron, oh
Posted 08:55 AM, 07/30/2009
Pale that would be Augere Co.
Tallmadge, Oh
Posted 12:17 PM, 07/30/2009
old mcdonald, you obviously need a brain.
