November 2, 2008
Feds look into ABCA for alleged violations
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CHARLESTON, W.Va. -- Although he's headed for a landslide victory Tuesday, Gov. Joe Manchin was undoubtedly displeased to learn last week that federal authorities are investigating allegations of wrongdoing in his administration, with the subpoena (or subpoenas) of the Alcohol Beverage Control Administration.

Here's what I've been able to gather: Apparently, the investigation by the U.S. Attorney's Office in Charleston goes right to the top, and is focused on five individuals: Commissioner Dallas Staples, former Charleston police chief; deputy commissioner Keith Wagner, a former state senator from McDowell County; region 2 enforcement director John Duncan; Danny Cantley; and Fred Wooton, who also works full-time as a Beckley firefighter. He's also the brother of former state senator and current House of Delegates candidate Bill Wooton.

Duncan was one of the ABCA officials reprimanded in 2007 for transporting liquor in an ABCA vehicle to former Lincoln County clerk Greg Stowers' homecoming party following his release from federal prison.

The allegations include, as previously reported, gifts to ABCA officials from liquor distributors in exchange for favorable positioning and promotion of their brands.

Allegedly, the consideration ranges in scale from being allowed to commandeer opened bottles of liquor after trade shows for ABCA retailers to gifts of thoroughbred horses.

Distributors at the trade shows also allegedly frequently provide ABCA officials with dinners, golf outings and the like, in violation of state ethics law.

There are also allegations of gifts and favoritism in awarding beer and liquor licenses. While liquor licenses are valuable commodities, they are particularly valuable since any retailer who wants to operate lucrative limited video lottery machines must first have a beer or liquor license - even if the owner does not intend to serve alcoholic beverages at the location.

There are also allegations that certain inspectors play favorites with certain bars and clubs that repeatedly get warning letters instead of fines for violations.

While there had been rumblings of problems at ABCA, including severe employee morale issues, this comes as a surprise. I've known Staples and Wagner for some time and thought of them as having impeccable character.

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  • It occurred to me, though, that if a liquor distributor provides gifts or travel, etc., to an ABCA official in hopes of getting better promotion and placement of their products, that's potentially a criminal offense.

    However, if a pharmaceutical manufacturer provides gifts or travel to a physician in hopes of getting that physician to prescribe the company's brand-name drug, that's simply considered a cost of doing business.

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  • Speaking of the Lottery, it's been more than a year since Director John Musgrave was granted a stay of a U.S. District Court order that would allow bars and clubs with limited video lottery to advertise.

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    Posted By: WVState (2:01pm 11-02-2008)
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    RE: liquor distributor vs pharmaceutical manufacturer.
    The doctors don't work for the government. ABCA officials do.

    And it's great to see the level of Joe Smith's ethics. Moral corruption (if not monetary corruption) runs through the Manchin administration like a river.

    Posted By: Joe6Pk (8:58am 11-02-2008)
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    Long ago, the State decided it wanted a monopoly on the sale of alcoholic beverages, and to exercise that monopoly through distributors. It was a set-up for corruption that has continued for 70 years or more. The only way to end this corruption is to get the State out of the alcoholic beverage business. Thirty-two other states have done so, with no ill effect. Alcoholic beverages should be treated as any other consumer product. A monopoly limits selection, increases prices and reduces tax revenue. It may have been a good idea in 1933, but times have changed and it has become a stupid idea that benefits only the distributors and corrupt officials. Blah!

    Posted By: turk1943 (8:09am 11-02-2008)
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    Why in the world would you anounce that you are such a terrible judge of character and why are you trying to defend the ABCC bunch??? Didnt realize that was your job! Anyone with eyes can see how the agency is being run since Staples was made commissioner. And Wagner has not worked a day since he was inserted there as a reward for being a 'democrat for underwood'! and Duncan gets his orders from Lincoln county... So maybe, just maybe, these 'dudes' will get what is coming to them and the agency can return to better days.

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