May 5, 2004

Gold Banc's ex-CEO fined:  Any connection to $50,000 from GKC Chamber in 2002 for JoCo Political Activities?

The Kansas City Star reported today and yesterday about an SEC investigation of Michael Gullion's actions:

Bank's ex-CEO penalized (May 5, 2004)

The Securities and Exchange Commission said Tuesday that Gold Banc Corp. and ousted chief executive Michael Gullion had consented to sanctions arising from Gullion's misappropriation of bank funds.

The agency said Gullion, who was forced out in March 2003, had agreed not to serve as an officer or director of any public company and to pay a $100,000 penalty.

It also said that Gold Banc, the Leawood-based holding company for Gold Bank, had consented to an order prohibiting it from violating the reporting, internal control and record-keeping provisions of federal securities laws.

Gold sought and obtained Gullion's resignation after it discovered he had diverted more than $2.5 million from Gold Bank-Kansas, the company's flagship bank, for his personal use. Gold Banc promptly launched its own internal investigation, informed its shareholders and cooperated with banking regulators and the FBI.

Gullion, Gold Banc settle with SEC (May 4, 2004)

Gullion was asked to resign in March 2003 after an internal investigation by Gold revealed he had diverted more than $2.5 million from Gold Bank-Kansas, the company's flagship bank, for his personal use.

Gullion has since paid back $3.45 million, consisting of the amount he diverted and some of Gold's investigative costs.

The SEC said that Gullion had diverted $4.4 million, but the SEC's figure included two overdrafts for $1.9 million that Gullion almost immediately covered. Gold had previously described those overdrafts as “anticipatory credits” that didn't result in any losses.

Gullion could not be reached for comment. His attorney, R. Stan Mortenson, declined to comment.

In 2002 Michael Gullion chaired the Committee to Support our Schools and received a questionable $50,000 contribution from the Greater Kansas City Chamber of Commerce for political activities in Johnson County at a time the Lenexa Chamber contributed only $500 and the Overland Park Chamber contributed only $500.  

At this same time nearly half a million dollars was given to the Missouri non-profit, Bistate Arts and Sports, according to an IRS 990 form.  Some of this money ended up in the Greater Kansas City Chamber's PAC, which was used to influence elections in Kansas, including a $20,000 transfer to Steve Cloud's JoCo Republicans for Education.  

Is there any connection between the $50,000 Michael Gullion received from the Greater Kansas City Chamber and the $20,000 Steve Cloud received from the Greater Kansas City Chamber PAC?  

Why does Larry Winn think he got $10,000 for his Committee for Excellence from the Greater Kansas City Chamber of Commerce Public Affairs Committee when Michael Gullion claims his Committee to Support our Schools  gave Larry Winn the money?

According to the Topeka Capital-Journal, former Gary Sherrer is now an executive vice president with GoldBanc Corp., a Johnson County-based bank. The holding company operates in 49 locations in Kansas, Missouri, Oklahoma and Florida.  What are the connections between Gary Sherrer, Mike Gullion and the political money flows?

Is there any connection between these political money flows and the money diversions for which Gullion was fined $100,000?

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Also see May 8^th news article from Bradenton (FL) Herald  
about SEC investigation of Gold Banc Corp and Michael Gullion

K a n s a s M e a d o w l a r k @ e f g 2 . c o m