Joy Padgett

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Joy Padgett of Coshocton, Ohio, born in 1951 is a Republican member of the Ohio Senate, was a candidate for Congress in Ohio's 18th congressional district in 2006. Her spot on the Republican ticket was the result of a special primary election to replace the incumbent, Bob Ney, who bowed out of the race and pled guilty to corruption charges. Although she won the special primary on September 14, 2006, and ran in a Republican-leaning district, Padgett lost in the general election to Democratic candidate Zack Space.

1 Political career
2 Loans, bankruptcies, and transfers
3 2006 campaign
- 3.1 Candidate for Lieutenant Governor
- 3.2 Republican candidate for Congress
4 External links

[edit] Political career

Padgett was first elected to the Ohio Senate in 2000 and has represented the 20th District since then. Prior to her election, she was the Director of the Office of Appalachia in Governor Bob Taft's administration. Before that, she served four terms in the Ohio House of Representatives and, prior to that, had been a school teacher.

In her 2004 bid for a second term in the Ohio Senate, Padgett was challenged by Democrat Terry Anderson of Athens, Ohio, who in the 1980s had been held hostage by Islamic radicals in Lebanon. During her race against Anderson, Padgett accused him of being a member of the "Blame America crowd." Campaign fliers showed a photograph of Anderson in a meeting with a leader of Hezbollah. In response, Anderson said, "He and his brothers were the ones who kidnapped me, chained me, blindfolded me and beat me. My political opponent uses a picture of that interview to try to win an election." [1]

The match-up was the only seriously contested Ohio Senate race in 2004. Padgett won re-election with 54 percent of the vote.

[edit] Loans, bankruptcies, and transfers

Padgett and her husband Donald were owners of the Main Office Supply Co. Her husband ran the business for three decades; she was the company's treasurer. The Coshocton business began experiencing financial troubles in 1999; it went from 40 employees to about eight when it closed in 2006. [2]

In August 2004, the Small Business Administration gave the business a $737,000 loan guarantee on a loan from the JP Morgan Chase Bank. On the same day, the Padgetts renegotiated a three-year-old loan for $100,000 from the Home Loan Savings Bank in Coshocton. In October 2005, the Padgetts filed for bankruptcy for their business and defaulted on the two loans. The bankruptcy filing was subsequently tossed out by a federal judge when the Padgetts violated a court order. [3]

On June 15, 2006, the Padgetts filed for personal bankruptcy, listing $1.16 million in debts against $202,143 in assets. Joy Padgett said most of the debt came from Main Office Supply Co. [4]. As of September 8, the Padgetts owed at least $20,000 on the local loan, and more than $720,000 on the federally guaranteed loan. [5]

Complicating the matter is the transfer of a third interest in a family farm by Joy Padgett to her two brothers at no cost just prior to declaring bankruptcy, and the sale of a customer list to North Canton-based Graphic Enterprises, Inc. Under Ohio law it is illegal for those owing money to transfer assets if they receive no money for the property and knew or should have known their debts exceeded their assets. JP Morgan says in court documents that the customer list belongs to it as part of the collateral for the SBA loan. The bank sued Graphic Enterprises for $129,250, and now that company wants permission from the bankruptcy court to sue the Padgetts for fraud. [6]

[edit] 2006 campaign

[edit] Candidate for Lieutenant Governor

Early in 2005, Padgett joined Ohio Attorney General Jim Petro's campaign for Governor as a Regional Chair and worked on his behalf while he and Lt. Governor candidate Phil Heimlich campaigned. In January 2006, following Heimlich's decision to leave the ticket in order to run for re-election as a Hamilton County Commissioner, Petro named Padgett his running mate as candidate for Lt. Governor.

The primary election was held on May 2, 2006. Ohio Secretary of State Ken Blackwell and State Representative Tom Raga were victorious over the Petro/Padgett team.

[edit] Republican candidate for Congress

On August 7, 2006, Padgett announced that Bob Ney was withdrawing his candidacy in the 2006 election, and that Ney and House Majority Leader John Boehner, who represents another district in Ohio, had asked her to run in his place. [7].

On August 14, 2006, Ney officially withdrew from the race for Congress. [8]. Because that occurred before August 19 (80 or more days before the election), Ohio Revised Code 3513.312 applied, thus requiring "the vacancy in the party nomination so created shall be filled by a special election." If Ney had waited until August 20, section 3513.31 of the Ohio Revised Code would have pertained and Ney's replacement in the November general election could have ben named by a district committee of the Ohio Republican party. [9]

On August 10, Jim Petro, the Ohio state attorney general, ruled that the "sore loser" provision in Ohio law (ORC 3513.04, which says that "No person who seeks party nomination for an office or position at a primary election by declaration of candidacy or by declaration of intent to be a write-in candidate ... shall be permitted to become a candidate by nominating petition or by declaration of intent to be a write-in candidate at the following general election")[10] did not apply to Padgett running for Ney's seat because it is for a different office.[11] Padget was a losing candidate for Lieutenant Governor in the May 2006 primary (she was paired with Petro, who was running for Governor.)

Some argued that Padgett was subject to another law -- a provision put into the state's budget bill in 2005 by Republicans.[12] That provision (ORC section 3513.052(B)) prevents someone from running for office "if that person, for the same election, has already filed a declaration of candidacy, a declaration of intent to be a write-in candidate, or a nominating petition, or has become a candidate through party nomination at a primary election or by the filling of a vacancy."[13] Petro's office was not asked for an opinion on that matter.[14]

The Ohio Democratic Party initially indicated that it would contest Padgett's eligibility by filing a lawsuit when she becomes a candidate.[15][16] However, on August 18, the party said that it would not, because Padgett faces six opponents in the special primary and avoiding a lawsuit will save money for their fall campaign. But a brother to one of those six candidates filed suit before the August 19 deadline.[17]

The Tuscarawas County elections board heard the complaint on August 20 and voted 2-1 along party lines to reject it. One Democrat, Socrates Space, abstained from voting because of a conflict of interest; his son is the Democratic nominee in the same race.[18]

Padgett originally faced seven Republican opponents[19] in the special primary on September 14. But on August 22, Dover mayor Rick Homrighausen announced he would withdraw and endorsed Padgett.[20]. Ney aide John Bennett also withdrew, and candidate Gregory Zelenitz was rejected by the Tuscarawas County Board of Elections.[21]

Padgett won special election with over 9,000 of the 14,000+ votes cast.[22].

She faced Zack Space, a Dover, Ohio lawyer and hotel developer, in the November general election. Space, who won the Democratic primary with 39 percent of the vote.

In the actual election, Space beat Padgett on November 6, 2006 119,494 to 74,475 of the popular vote with 96% of all precincts counted article/385384 [23].