He has made about $65,000 in debt payments in the past year
It goes without saying that a successful candidate owes a debt of gratitude to those who helped get him elected. In the case of freshman Rep. Cedric Richmond, D-New Orleans, it takes a more tangible form in the more than $50,000 he still owes to some of those consultants and others who worked on his past campaigns.
View full sizeRep. Cedric Richmond, D-La., speaks in support of President Barack Obama's jobs plan at the Capitol on Sept. 14. Richmond's campaign debt of $51,277.82 as of the end of September includes $7,000 owed to Third Coast Research, a Chicago opposition research firm that went to work for one of his opponents when the Richmond campaign didn't pay its bill, and $1,446.50 owed to Deep South Investigations, a Gretna outfit whose bread and butter is the kind of surveillance video used to discredit bogus workers' compensation and slip-and-fall claims. Among its fortes: Candid Mardi Gras footage that demonstrates a reveler was more lithe and limber than his or her assertion of disability or injury would suggest.
But both the Richmond campaign and Deep South owner Mark Avery said the work done for Richmond was of a more straightforward nature.
"Deep South Investigations was hired to provide standard opposition research and background checks -- not surveillance -- during the course of the 2010 campaign," said David Morris, who managed Richmond's campaign.
In addition to the $51,277.82 in debt, the Richmond campaign also owes the candidate $149,000 for no-interest loans he made both to the 2010 campaign, in which he defeated Rep. Anh "Joseph" Cao, R-New Orleans, and his earlier, unsuccessful bid for the seat, when it was held by former Rep. William Jefferson, D-New Orleans, in 2008.
It is not unusual for members of Congress to carry campaign debt and outstanding loans, and Richmond has made about $65,000 in debt payments in the past year.
"As are others, the campaign is steadily and aggressively paying off debt from previous elections," Morris said. "As of now, only one-fourth of our current debt is owed to vendors. It's common knowledge that it's tough to raise debt funds."
The campaign plans another debt-retirement fundraiser before the end of the year.
Richmond's creditors do not seem particularly exercised about the money owed them.
"I've been around this game for a long time. It's not unusual for a candidate to carry debt -- some of them actually end up paying you," said William "Bill" Rouselle, president and CEO of Bright Moments, a New Orleans public relations firm. Of Richmond's election, Rouselle said, "I'm happy with that, I'm happy with what he's done since he was elected, and so I'll wait in line."
The downside of carrying old debt is that it keeps appearing on each quarterly report with the Federal Election Commission, the perusal of which can invite unwelcome scrutiny and headlines. Thus, the story last month in the Capitol Hill newspaper, Roll Call, bearing the headline: "Richmond Campaign Paid Surveillance Firm."
According to the FEC reports, last year's year-end statement shows the campaign owing Deep South $3,454.45. The first quarter report for this year then shows the debt being reduced to $1,446.50, with a payment of $2,007.95. The second quarter report shows the debt remaining at $1,446.50, and no payments. But then in the third quarter there is a $3,454.45 payment to Deep South, yet the debt remains $1,446.50.
This would seem to suggest that Deep South had provided and billed for some more recent services, but Morris said "they provided no service to the campaign after Election Day 2010." Morris said the campaign was working with Deep South to try to resolve the seeming discrepancy.
Deep South does not fit the usual profile of a political opposition research firm. "Whether it's surveillance, subpoena service or record searches, let us assist you in piecing your puzzle together," reads the promo on the front page of its web site. But Avery said they have done opposition research for other political campaigns, though he declined to name them for reasons of confidentiality.
According to an FEC search of their electronic records for House campaigns back to 2002, no other congressional candidate has used Deep South in that period of time.
The largest debt on the Richmond ledger is $17,000 owed 4C Partners, Washington consultants who guided his 2010 campaign.
The second largest debt is $7,000 owed Third Coast Research, the Chicago opposition research firm that worked on Richmond's 2008 campaign.
"When he was unable to resolve the bill we went to work for Juan LaFonta," said Will Caskey, president of Third Coast, referring to the New Orleans state representative who competed with Richmond for the Democratic nomination in 2010.
But Caskey said he bore no hard feelings toward Richmond, and that it was "my own fault for not collecting sooner" from a campaign that, in 2008, was quickly exhausting its funds in a losing effort.
The Richmond campaign owes GCR & Associates of New Orleans $5,000 for consulting and campaign software.
"It is our intention to collect on this," said CEO Greg Rigamer. "Political clients are often difficult but we do work with them to ensure payment. We are clearly in the friendly reminder stage - nothing beyond this at this time."
The campaign also owes $1,000 to Anzalone Liszt Research, a prominent Democratic polling firm.
Reached at his Montgomery, Ala., office, John Anzalone said he wasn't aware, and was not at all bothered, that the Richmond campaign still owed him money.
"I could pay for my house with all the guys who owe me money, but Cedric's not one of them," said Anzalone. "He's a standup guy, full of integrity. I'm proud to work for him."