Editore"s Note
Tilting at Windmills

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September 22, 2009

MIKE ROSS' REAL ESTATE PROBLEM.... Rep. Mike Ross (D) of Arkansas, the Blue Dog caucus' point-man on health care policy, sold some commercial property in 2007 for a lot more money that it's worth. That, coupled with the pharmacy chain that bought it, makes this a potentially problematic story.

Ross sold Holly's Health Mart in Prescott, Ark., to USA Drug for $420,000 -- an eye-popping price for real estate in a tiny train and lumber town about 100 miles southwest of Little Rock.

"You can buy half the town for $420,000," said Adam Guthrie, chairman of the county Board of Equalization and the only licensed real estate appraiser in Prescott.

But the $420,000 that USA Drug paid for the pharmacy's building and land was just the beginning of what Ross and his wife, Holly, made from the sale of Holly's Health Mart. USA Drug owner Stephen L. LaFrance Sr. also paid the Rosses $500,000 to $1 million for the pharmacy's assets and paid Holly Ross an additional $100,000 to $250,000 for signing a noncompete agreement. Those numbers, which Mike Ross listed on the financial disclosure reports he files as a member of Congress, bring the total value of the transaction to between $1 million and $1.67 million.

And that's not counting the $2,300 campaign contribution Ross received from LaFrance two weeks after the sale closed.

Ross, who recently reversed course on the Democratic reform plan after having already voted for it in committee, is a member of the Congressional Community Pharmacy Coalition. Trade associations have recently thanked the conservative Democrat for approving measures favorable to the industry.

There may be an innocent explanation for the matter. I'm just not sure what it might be.

Steve Benen 1:20 PM Permalink | Trackbacks | Comments (18)

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Comments

The handsome profit I made was because of the unique nature of the business I sold. A number of factors contributed to the final sale including prime location (at the corner of the only stop light and adjacent to the only gas station/titty bar), a monopoly on the pharmaceutical business in the high growth potential market of Prescott, my good looks, and several others.

Please don't make me ask Obama to tell you to stop picking on me.

Posted by: Mike Ross on September 22, 2009 at 1:37 PM | PERMALINK

This sets the bar pretty high for a health care vote reversal by a representative in a major metropolitan area.

St. Louis representatives should go for $3 million and a Miami rep may be worth as much as $5 million. Place your bets! Play along at home!

On average, if every rep's vote could be bought for $2.5 million then the entire Congress could be had on any given vote for a little over $1 billion. Hmm, what other industries could afford to do this?

Posted by: pj in jesusland on September 22, 2009 at 1:46 PM | PERMALINK

The figures seem excessive for a location in town of 3686 people (2000 Census) and a median income of $21,612.

Posted by: Bob M on September 22, 2009 at 1:47 PM | PERMALINK

Pelosi should drop the hammer on Ross. He's corrupt, and he needs to lose any leadership positions that he currently holds.

If House Dems don't come down hard on their corrupt members, then they'll be seen as more of the same (this comment applies to Rangall too).

Posted by: Chris on September 22, 2009 at 1:47 PM | PERMALINK

big surprise, huh?
nope.

mike ross is a big pharma puppet, has always been one.
he does not give a crap about his arkansan constituents.

Posted by: neill on September 22, 2009 at 1:49 PM | PERMALINK

"... town of 3686 people..."

You forgot to say, "Yaaa-hooo!"

Posted by: steverino on September 22, 2009 at 1:49 PM | PERMALINK

Ross sounds like someone we really need negotiating health care reform. His past dealings with the pharmaceutical industry shows he knows how to extract a good deal from them.

Posted by: qwerty on September 22, 2009 at 1:51 PM | PERMALINK

qwerty, you sound just like Al...

Posted by: neill on September 22, 2009 at 1:53 PM | PERMALINK

Question: What's the difference between Congress and EBay?
Answer: They tell you how much people were paid for something on EBay.

Posted by: Dennis-SGMM on September 22, 2009 at 2:08 PM | PERMALINK

I've been using the term "Business Dogs" instead of "Blue Dogs" for awhile now, but boy howdy, Mike Ross has taken the meaning of the term to a whole new level. Business Dog, you betcha!

Posted by: low-tech cyclist on September 22, 2009 at 2:15 PM | PERMALINK

Masochist Voter: "Please hit me!"

Sadist Congressman: "No!"

Masochist Voter: "Thank you!"

(Repeat every voting cycle or indictment, which ever comes first)

Posted by: DAY on September 22, 2009 at 2:35 PM | PERMALINK

Plus his wife is still on the payroll as the pharmacist. And her name is still on the business "Holly's Pharmacy". Given that $100,000 to $200,000 non-compete clause seems just to be gilding the lily on this already sweet deal.

Posted by: Bruce Webb on September 22, 2009 at 2:36 PM | PERMALINK

pj:
There might be INDIVIDUALS who could afford to buy a billion dollar Congress. Or groups of individuals.

It's probably already been done.

Posted by: anomoaly on September 22, 2009 at 2:52 PM | PERMALINK

This sounds a bit like what got Duke Cunningham in trouble...

Posted by: Marc in Denver on September 22, 2009 at 3:20 PM | PERMALINK

How soon till he's known as Progressive, liberal congressman Ross?
Fox are you out there??

Posted by: red on September 22, 2009 at 3:41 PM | PERMALINK

the numbers aren't out of line. I'm guessing the pharmacy netted around 200k per year. a sale price between 1 mill and 1.5 mill isn't anything to get excited about. what is disturbing is the timing, the buyer and the hypocrisy. its a very poor area and likely has a higher than normal percentage of the purchases funded by the government in some way. Taxes "bad". Taxes to pay me for something i am selling "good".

Posted by: chuck from arkansas on September 22, 2009 at 3:50 PM | PERMALINK

holy mackerel!!! this smells nasty!!!

Posted by: little rock big man on September 22, 2009 at 11:09 PM | PERMALINK

Hello. What makes the engine go? Desire, desire, desire. Help me! Need information about: Airbrush tanning wholesale. I found only this - airbrush tanning training. Airbrush tanning, what is the tan between using a tan service and looking problem or fat many climates at skin? Airbrush tanning, the time with which you can love the print you prefer is indoor. Thanks :o. Kinsey from Angola.

Posted by: Kinsey on March 23, 2010 at 10:12 AM | PERMALINK
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