The reputation of Missouri Attorney General Andrew Bailey is becoming increasingly suspect.
His most striking characteristic seems to be his ability to turn a blind eye.
Need him to abandon representation of the Missouri State Highway Patrol in a case about confiscated gaming devices? Channeling several thousand dollars into a political action committee run by his allies should do the trick.
Or maybe you want him to create a “friend of the court” brief for a Missouri-based company accused of causing lead poisoning in Peruvian children living near a mine? A campaign donation of $50,000 should suffice.
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It was perhaps these questionable dealings that attracted David Johnson and Kirk Chewning to Bailey.
On the 31st of March, both men contributed $2,825 to Bailey’s campaign. Each donation might seem meager in comparison to others that Bailey received. Chewning states the Virgin Islands as his residence, while Johnson calls Georgia home. The records of the Missouri Ethics Commission show both men as employees of a company named SLC – a seemingly unassuming consulting firm. It took some effort to pin down the nature of this establishment.
SLC stands for Strategic Link Consulting, one of many corporations under Johnson and Chewning’s ownership, which are connected with their Virgin Islands-based company, Cane Bay Partners. According to their website, the company offers a diverse range of financial and management consulting services to investors.
Still, a string of lawsuits filed in numerous states against these men and their companies tell a different story. They allege that Johnson and Chewning operate an online payday loan scheme that charges up to 730% interest and intends to bypass state regulations by acting as a façade for Native American tribes. Substantial lawsuits with similar charges were filed in Illinois and Indiana late last September.
The Indiana lawsuit details the operation as follows:
“To avoid prosecution under the usury laws of states such as Indiana, non-tribal owners of online payday lending businesses often engage in a business model cleverly termed as a ‘rent-a-tribe’ scheme. Using this model, the non-tribal payday lenders create a grand illusion, suggesting that their non-tribal businesses are owned and operated by Native American tribes. The illegal payday loans are then issued under the guise of a Native American tribal business entity, conveniently protected from state and federal laws prohibiting usury by tribal sovereign immunity. However, the tribal lending entity serves only as a mask for the unlawful lending scheme; all the core aspects of the payday lending operation – funding, marketing, loan initiation, underwriting, loan servicing, electronic funds transfers, and collections – are performed by individuals and entities unaffiliated with the tribe.”
An identical lawsuit against the duo and their various entities settled in the state of Illinois last June. Wisconsin followed suit with a settlement in July, which was precipitated by a separate lawsuit alleging embezzlement and fraud filed by a Native American tribe. A dismissed case from Maryland is currently being appealed.
Johnson and Chewning failed to respond to requests for comment made through Cane Bay Partners.
So, what exactly motivated their contributions towards Bailey’s campaign, the sole political donations they have made in Missouri?
Perhaps they perceive a new opportunity in Missouri now that the payloan shop scene in other states is being systematically shut down. In the terms of service on their payday loan website, maxlend.com, it states: “The Tribe has elected not to conduct business in the following states: Arkansas, Connecticut, Georgia, Hawaii, Illinois, Massachusetts, Minnesota, New York, North Dakota, Pennsylvania, Vermont, Virginia, Washington, or West Virginia.”
There’s also the possibility that Johnson and Chewning noticed that Steve Tilley, the lobbyist who represented the gaming device companies supportive of Bailey, is also lobbying for the Oklahoma-based Osage Nation tribe, which is in the process of establishing its own lending business.
Given the ongoing legal battles facing Johnson and Chewning, they might hope to persuade Bailey to write a “friend of the court” brief supporting their cause. After all, if the Missouri Attorney General is willing to support a company accused of lead poisoning in Peru, what are a few “rent-a-tribe” payday loans in comparison?
Tony Messenger, a columnist for the St. Louis Post-Dispatch, thanks and encourages his readers to maintain open lines of communication with him.
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