Kansas Independent Senate candidate Greg Orman had deeper ties than were originally disclosed to a businessman convicted of securities fraud, according to a new report.
The Topeka Capital-Journal reports that Orman served as a representative for Rajat Gupta on a two-person board of a Cayman Island private equity partnership.
Gupta is the former Goldman Sachs board member who incurred criminal and civil fines of more than $18 million and was jailed earlier this year for securities fraud.
{mosads}Orman’s ties to Gupta introduce a new element in his race against Sen. Pat Roberts (R), who is now seen as one of his party’s most vulnerable incumbents.
Polling has shown Orman leading Roberts. The Democratic Party’s nominee has dropped out of the race. In a big win last week for Orman, a court ruled the Democrat’s name could be taken off the ballot.
Orman has not said which party he’d caucus with if control of the Senate comes down to Kansas, and has contributed to candidates of both parties. He’s given much more to Democrats, however, and briefly considered running as a Democrat in 2008.
The Roberts campaign believes Orman’s relationship with Gupta could be disqualifying for his candidacy.
Roberts campaign manager Corry Bliss said the ties indicate Orman’s “another millionaire politician trying to deceive voters and hide his past.”
The Cayman Islands partnership, New Silk Route, was worth $1.21 billion and focused on markets in the Middle East, Asia and the Indian subcontinent. The Capital-Journal reported that Orman left the board three months before jumping into the Senate race, and was replaced by Aaron Deuser, a co-worker and campaign worker for Orman.
Orman’s campaign manager Jim Jonas said the candidate’s involvement in New Silk Route was “minimal.”
“Mr. Orman served on the board for less than a year, received no compensation and had no financial interest in the fund,” Jonas said. “Involvement was extremely minimal. The fund was not involved in the insider trading case.”
The paper also found that Orman owned at least 5 percent of capital in Exemplar Wealth Management from 2009 to 2013. Federal prosecutors declared in court documents that Exemplar was the “office that managed Gupta’s money,” which was, at one point, estimated at greater than $100 million.
Orman also testified before a grand jury as a defense witness in Gupta’s insider-trading case, but his testimony remains sealed.
Jonas said that while Orman testified in front of a grand jury, “Greg didn’t know anything about Gupta’s criminal activity.”
“Greg’s been clear about this,” Jonas said. “Like everyone else, he was completely shocked by the news and deeply disappointed. This was someone he’d worked with and whom he’d long considered a friend. Greg was not aware of any criminal activity by Mr. Gupta prior to this coming to light.”
Orman has made similar statements in the past and the Topeka Capital-Journal reported that there’s no evidence Orman was engaged in any wrongdoing.
But the depth of his financial ties to Gupta is still murky. On Monday, Orman will release his personal financial disclosure forms, which could shed more light on the situation.