Denton Record-Chronicle (Denton, Tex.), Vol. 112, No. 330, Ed. 1 Monday, June 27, 2016 Page: 3 of 18
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STATE/NATIONAL
3A
Denton Record-Chronicle
Monday, June 27, 2016
3 big cases for
Supreme Court
More storms on
tap for W.Va.
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Reynolds, his wife, Janice, and
his brother, Marcus Reynolds.
Janice Reynolds said she
drove back to Rainelle on Satur-
day to survey the damage. She
said her home was destroyed, a
vehicle was lost in the floodwa-
ters and the community
“smelled like death.”
Jerry Reynolds says the flood
was “the worst thing I’ve ever
seen.” But as he sat in his car at
the shelter, he declared that
“we’re survivors. We’ll make it.”
Marcus Reynolds even found
a bit of humor amid the sorrow.
‘While we’re at it, would you
be interested in any oceanfront
property?” he said. “I under-
stand there’s some available.”
Bill Kious of Rainelle was
asked how those at the shelter,
many of them on modest in-
comes, were able to laugh.
“Frankly, because we’ve lived
a rough lifestyle,” Kious said. “It’s
a nature to us that we can’t get
rid of”
By John Ra and Dave Morrison
Associated Press
ANSTED, W.Va. - As West
Virginians continued surveying
damage in a state so devastated
by floods that one said her com-
munity “smelled like death,” res-
idents braced for the prospect of
more rain.
The National Weather Ser-
vice has issued a flash flood
watch for at least 25 West Vir-
ginia counties today. Heavy
rains were possible in many ar-
eas already ravaged by last
week’s floods that have killed 24
people statewide.
The forecast also includes
hardest-hit Greenbrier County,
where 16 people have died and
floodwaters have yet to recede.
Dozens of residents of flood-
ed-out Rainelle remained Sun-
day at a shelter more than 25
miles away at the Ansted Baptist
Church, where singing from in-
side mixed with the bustle of ac-
tivity outside.
The church’s gymnasium has
been converted to a shelter. The
church also is a drop-off point for
donated goods as well as a make-
shift kennel for dog owners.
For now, it’s home for Jerry
have cut the number of abortion
providers in half, to roughly 20.
Fewer than 10 would remain if
the 2013 law were allowed to
take full effect. One positive sign
for the clinics is that only Justic-
es Stephen Breyer and Elena
Kagan, who generally side with
abortion rights advocates, have
yet to write opinions from the
session in late February and ear-
ly March when the case was ar-
gued. Each justice typically
writes at least one majority opin-
ion from each argument session.
■ Public corruption: The
justices seemed likely to side
with McDonnell, who is chal-
lenging his conviction for ac-
cepting gifts and loans from a
wealthy businessman in ex-
change for promoting a dietary
supplement. A ruling for
McDonnell could make it hard-
er to prosecute public officials.
■ Guns: Two men from
Maine are challenging their con-
victions for possessing guns un-
der a federal law that is intended
to keep guns out of the hands of
people who have previously
been convicted of domestic vio-
lence.
By Mark Sherman
Associated Press
WASHINGTON - The Su-
preme Court is set to close out its
current term with opinions today
in three remaining cases after a
flurry of decisions last week.
It’s expected to be the justic-
es’ final meeting before they dis-
perse on their summer breaks.
The last three cases concern
regulation of Texas abortion
clinics, the public corruption
conviction of former Gov. Bob
McDonnell of Virginia and a
federal law that seeks to keep
guns out of the hands of people
convicted of domestic violence.
Just eight justices are taking
part in the cases following the
death of Justice Antonin Scalia
in February. President Barack
Obama has nominated federal
appeals court Judge Merrick
Garland to take Scalia’s place,
but Garland has not received a
hearing or a vote in the Repub-
lican-controlled Senate.
A look at the remaining
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Dave Morrison/AP
Flood survivor T J. Parker plays with his dog, Titan, on Sunday
at Ansted Baptist Church in Ansted, W.Va., Parker said he and
Titan swam four blocks to safety, rescuing an elderly man
along the way.
floodwaters to a fire depart-
ment. Parker said he had to go
underwater and hold his breath
to support the man, then come
up for air.
“I realize that sounds crazy,
but you have to do what you
have to do at that time,” Parker
said.
Among those taking advan-
tage of the shelter’s kennel was
T.J. Parker of Rainelle and his
pet Titan.
Parker said he and Titan had
to swim four blocks to safety.
Along the way, he stopped to res-
cue an elderly man calling for
help and brought him through
Rick Lewis of the Nuttall Fire
Department said 129 people
were staying Sunday at the
church gymnasium. Many more
Rainelle residents were sent to
other shelters, he said.
cases:
■ Abortion: Texas abortion
clinics are challenging a state
law and regulations that already
Frustrations echo for
Trump, Brexit voters
Odd couple aims to unite Dems
BRIEFLY
ACROSS THE NATION
San Francisco
10 stabbed, beaten at
protest outside Capitol
After primaries,
rivals’ campaign
managers hit it off
MacGregor, 52, said that, un-
like many of her friends, she
proudly voted for ‘leave.” “This
isn’t the country I remember
from growing up. I don’t know
exactly what happens next. I
don’t think anybody does. But I
really feel like we needed some-
thing different, because this isn’t
working,” she said.
Britain’s vote shattered the
stability of continental unity
forged after World War II and
sent markets across the globe
tumbling.
Presumed Democratic presi-
dential nominee Hillary Clinton
said on Sunday the vote was a
sobering reminder that “what
happens around the world has
consequences that can hit home
quickly”
But the move to divorce the
U.K. from the 28-nation bloc
and its government in Brussels
was celebrated by those who felt
the changing country has lost its
way since linking up with the
rest of Europe. Their voices echo
the millions of American voters
who have flocked to support
Trump.
Of particular resonance in
the U.S. has been Trump’s ap-
proach to immigration.
“There’s too many deadbeats
living off the system,” said Jose
Portillo, 55, of Los Lunas, New
Mexico, who works an overnight
shift.
By Jonathan Lemire
and Jill Colvin
Associated Press
MAYBOLE, Scotland — At
the heart of the campaign that
led Britain to vote to leave the
European Union was a desire to
regain independence lost amid a
globalized world. It’s the same
kind of feeling that Donald
Trump rode to become the pre-
sumptive Republican nominee
in the U.S., where he campaigns
to put ‘America first” and “make
America great again.”
“I love to see people take their
country back. And that’s really
what’s happening in the United
States,” Trump told reporters
this weekend during a visit to his
golf resort in western Scotland.
The anxiety that drove the
stunning Brexit decision has
been brewing for at least a de-
cade in the United Kingdom, as
waves of immigrants from
Southern and Eastern Europe
arrived as the global economy
plunged into recession. In the
years since, right-leaning lead-
ers have stoked populist con-
cerns about their impact on
wages, as well as fears about the
loss of ethnic identity, which
runs deep in parts of largely
white rural England and Wales.
“There’s a real feeling things
have changed and they’ve
changed too fast,” said Muriel
MacGregor, filling up her car at a
BP station on her way to work as
a clerk at a hotel in Aberdeen,
Scotland.
S’*
Ten people were wounded
two of them with life-threaten-
ing injuries — on Sunday when
counter-protesters clashed with
members of a white nationalist
group that planned to rally out-
side the California state Capitol
building in Sacramento, author-
ities said.
California Highway Patrol
Officer George Granada said
about 30 members of the Tradi-
tionalist Worker Party were
gathering for a rally around
noon Sunday when they were
met by about 400 counter-pro-
testers and a fight broke out.
As people tried to leave the
area, smaller fights broke out,
Granada said.
Authorities were investigat-
ing what happened, but no ar-
rests have been made. The Capi-
tol was on lockdown until pro-
testers cleared the area.
w
By Lisa Lerer and Ken Thomas
Associated Press
WASHINGTON
seemed like a surprising party
of two.
There was Robby Mook,
Hillary Clinton’s top campaign
aide, known for his calm tem-
perament and fiercely disci-
plined ways, and JeffWeaver, a
combative political fighter of-
ten called Bemie Sanders’ alter
ego, sharing a Friday dinner at
The Farmhouse Tap & Grill in
Burlington, Vermont.
But over the long months
of a frequently contentious
primary, the two rival Demo-
cratic campaign managers
struck up an unusually friend-
ly relationship, founded on ex-
haustion, goofy jokes and a
shared affection for their
home state of Vermont.
They talk almost daily, text
frequently and email often.
Now, as Sanders lingers in
the presidential race, refusing
to concede the nomination to
Clinton even as he says he’ll
vote for her on Election Day,
the competing campaign
managers have become a pow-
erful political odd couple, re-
sponsible for engineering a
graceful conclusion to a hard-
fought Democratic contest.
“I’ve really come to respect
him,” Mook said. “There were
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Seth Wenig/AP
Democratic presidential candidate Hillary Clinton march-
es in the New York City Pride Parade with New York Gov.
Andrew Cuomo, left, Mayor Bill de Blasio, back right, and
the Rev. Al Sharpton on Sunday.
some tense moments, but he
was always honest, straight-
forward and very easy to work
with.”
GOP nominee Donald Trump.
Clinton’s campaign and state
Democratic parties have hired
some Sanders staffers, and
there is chatter about joint
events to come.
Both Mook and Weaver
share a slightly silly sense of
humor.
Mook, 35, regales his
fiercely loyal band of young
operatives, with impressions,
including spot-on imperson-
ations of Bill Clinton and
Sanders.
Weaver, 50, owns and oper-
ated a Virginia comic book
and gaming store before tak-
ing the helm of Sanders’ cam-
Weaver is equally effusive
in his praise.
“I think he’s the kind of guy
who is doing what he does for
the right reasons,” Weaver said
about Mook.
After Clinton and Sanders
met at Washington hotel this
month, their managers stayed
until almost midnight, attempt-
ing to hammer out an agree-
ment that would give Sanders
some of the changes he wants to
make to the party’s platform.
During his Friday trip to Ver-
mont, Mook made sure to meet
with Sanders supporters.
The two camps are increas-
ingly comparing notes on how
best to attack presumptive
Lake Isabella, Calif.
Wildfire destroys 200
homes, buildings
A ravenous and deadly wild-
fire in central California has
burned 200 homes, many
belonging to retirees on fixed in-
comes with few other possessions.
“Most people here, this is all
they had,” said Daniel O’Brien,
53, who lost two rental mobile
homes. “You have these mo-
paign.
“His Bill Clinton is pretty
good,” Weaver said of Mook.
“It’s not only the voice, but it’s
the subject matter.”
“I wish I could start building
a broom with steel bristles so he
could start cleaning house.”
ments where you just want to
breakdown crying and fall
apart.”
The 58-square-mile fire has
claimed at least two lives and of-
Feds say Breitling CEO led $80M oil and gas fraud
ficials warned the death toll may
rise. Cadaver dogs were being
brought in Sunday to search for
remains.
Kern County Fire Depart-
ment operations chief Joe Reyes
said firefighters had contained
significant swaths of the fire’s
northern and eastern edges, but
that work remained in securing
the southern side of the blaze.
Crews were moving in from
both sides to connect in the mid-
dle and establish a perimeter.
the use of American Express
company cards by Faulkner and
Jeremy Wagers, a lawyer work-
ing for the company.
“Faulkner used this card —
which he referred to as his
whore card’ — to charge more
than $1 million for personal
travel, expenses for various per-
sonal escorts, gentlemen’s clubs,
nightclubs, and associated ex-
penditures,” the complaint says.
“Wagers used his card predomi-
nantly for gentlemen’s club ex-
penses, including nearly
$40,000 in charges at a Dallas
gentlemen’s club over a four-day
period in July 2014.”
Faulkner’s lawyer said the
SEC is ignoring what it takes to
wine and dine potential high-
roller investors.
“That’s just the cost of doing
business,” Friedman said.
SEC Regional Director Sha-
moil Shipchandler said in a writ-
ten statement that “the financ-
ing for Faulkner’s opulent life-
style came directly at the ex-
pense of unwitting investors
across the country.”
Breitling’s offices at 1910 Pa-
cific Ave. Suite 12000 are vacant.
An employee at the property
manager’s office for the building
said Friday that Breitling had re-
cently moved two floors up. In
one of those offices, a sticker
tagged to a desk read that Suite
12000 had a ‘lock out” date of
May 3. Nobody was inside the
three Breitling offices on the
14th floor.
The SEC suspended trading
in the oil and gas company’s
stock Wednesday. The stock had
closed Thursday at about 2
cents.
by, and some-
times
beyond those.
The SEC says
they then used
the inflated es-
timates
hook
tors.
The SEC accuses Faulkner
directly of misappropriating “at
least $30 million in investor
funds to maintain a lifestyle of
decadence and debauchery.”
The alleged scheme sucked
in hundreds of investors from
across the country, the SEC said.
Larry Friedman, a Dallas
lawyer representing Faulkner,
said that the allegations, con-
tained in a civil rather than a
criminal action, are not true and
that his client intends to contest
them in federal court.
■ Judson “Rick” Hoover, 39,
of Highland Village, Breitling’s
CFO from February 2014 to
February 2015.
■ Parker Hallan, 35, of Dal-
las, a co-founder of the prede-
cessor company to Breitling En-
ergy.
Lawyer vows
to fight charges
&
if.
going
By Jeffrey Weiss
and Dalton LaFerney
The Dallas Morning News
DALLAS — Breitling Energy
Corp. CEO Chris Faulkner de-
clared himself the “frack master”
during dozens of cable TV ap-
pearances. The Securities and
Exchange Commission alleged
Friday that he was actually a
fraud master and that he and
seven associates engineered an
$80 million oil and gas swindle.
Although the case is com-
plex, some of the basic claims
are not. The SEC alleges that:
■ Faulkner lied about his
background in oil and gas explo-
ration — he had little, according
to the charges. Investigators also
say he lied about having received
a master’s degree from the Uni-
versity of North Texas and a doc-
torate from Concordia College.
■ He and his associates lied
about what it would cost to drill
wells, vastly inflating the esti-
mates and pocketing the differ-
ence paid to them by investors.
■ They lied about how much
production might come from
the wells, using estimates based
on the absolute best wells near-
to
rnves-
Faulkner
■ Joseph Simo, 64, of Plano,
who provided supposedly inde-
pendent geological analysis to
Breitling even as he worked for
the company, the SEC said.
■ Dustin Michael Miller Ro-
The authorities said Faulk-
ner began the scheme in 2011
with Breitling Oil and Gas Corp.,
the predecessor of Breitling En-
ergy. The SEC says he also creat-
ed other entities that he used in
2014 to buy up Breitling stock to
make it look more valuable to in-
vestors.
Ogden, Utah
House fire leaves child
dead, woman in hospital
A 4-year-old boy has died
and a 28-year-old woman is in
critical condition after being
trapped in a house fire that likely
started after the child was play-
ing with a butane torch.
The Ogden Fire Department
says the fire broke early on Sun-
day. When they arrived, they
learned two people were still in-
side. Firefighters rescued the
woman and the boy, but the boy
later died at a hospital.
Lt. Nate Cline said in a news
release the fire was accidental and
likely started when the boy was
playing with a butane torch that
ignited a mattress in the base-
ment apartment of the home.
— The Associated Press
driguez, 41, of Dallas, another
co-founder.
■ Beth Handkins, 41, of
Waxahachie, listed as chief oper-
ating officer of Breitling-related
companies from December
2013 through March 2016.
■ Gilbert Steedley, 51, of
Bronxville, N.Y., Breitling’s vice
president of capital markets
from December 2013 through
September 2015.
Miller, Handkins and Stee-
dley have offered to settle the
charges, the SEC said.
David Clouston, the attorney
representing Breitling chief fi-
nancial officer Rick Hoover, said
he expected his client to be
cleared.
‘Litany of lawsuits’
In April 2015, the Texas Ob-
server published an extensive in-
vestigation of Faulkner, detail-
ing “a litany of lawsuits by angry
creditors and former employ-
ees.” The piece was pegged to
Faulkner’s having been appoint-
ed to an “energy advisory board”
named by incoming Texas Lt.
Gov. Dan Patrick. Fauklner re-
signed two months after the ap-
pointment.
In addition to Faulkner and
Wagers, the SEC made allega-
tions against:
‘We were very surprised to
see this today,” Friedman said
Friday. “We have a long history
with the SEC. And to my knowl-
edge, we have no investor com-
plaints.”
“The SEC is charged with en-
forcing violations of the Securi-
ties and Exchange Act,” he said.
“This looks more like a vendetta.”
“Mr. Hoover hasn’t been with
the company for a year and a
haft” Clouston said.
‘Gentlemen’s clubs’
The SEC allegations include
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Parks, Scott K. Denton Record-Chronicle (Denton, Tex.), Vol. 112, No. 330, Ed. 1 Monday, June 27, 2016, newspaper, June 27, 2016; Denton, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1127312/m1/3/?q=%22%22~1: accessed June 28, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; .