Monday, July 10, 2023

GoLocalProv News Team

A Democratic power couple is going to be hosting a fundraiser for Rhode Island Attorney General Peter Neronha at their Jamestown estate, GoLocal has learned. 

Neronha is term-limited and barred from running for a third term as Attorney General.

The summer soiree is going to be hosted by Liz and Michael Perik and the host committee includes many of the top lobbyists in the state. 

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Liz Perik is the Rhode Island Democratic Committeewoman and was one of the five finalists to be appointed as Lt. Governor when Dan McKee was elevated to governor.

Her husband is an education consultant tied to a number of controversies regarding education contracts across the country.

The couple has made millions in federal campaign donations — more than 500 in total, according to Federal Election Commission.  

Next Step for Neronha?

The co-hosts of the fundraiser to be held on July 13 are some of the most powerful State House lobbyists, including George Zainyeh and Lenny Lopes.

Zainyeh represents high-profile interests like Apple, IGT, and Green Energy, to name a few of his cadre of clients.

Lopes represents Facebook’s parent company Meta Platforms, Allstate Insurance, and Lifespan.

Neronha’s wife is a physician for Lifespan.

Neronha has not announced his political intentions for the future. Presently, his campaign account has a little more than $21,000 cash on hand.

Other hosts of the event include Don Sweitzer, the former IGT executive, who was at the center of controversy relating to his role as Treasurer of the Democratic Governors Association (DGA) by then-Governor Gina Raimondo. Sweitzer took the role with the DGA at nearly at the same time that the Raimondo administration was directing a multi-decade no-bid contract extension to IGT.

Marc Crisafulli, the former Bally’s executive and recently appointed by Governor Dan McKee to chair the 195 Commission, is also a co-host.

Adler Pollock and Sheehan is one of the state’s top outside law firms. Victoria Almeida, the firm’s government relations practice group’s co-chair, is another Neronha event co-host.

Neronha did not respond to GoLocal’s question about what office he is raising funds for.

The suggested donations for the Perik-hosted event range from $250 to $1000.

GoLocal Reported on the Periks’ Contracts and Controversies

The Periks have made millions in political donations over the past two decades — and Michael Perik’s companies have received tens of millions in contracts linked to federal grants.

The Des Moines Register conducted a multi-year investigation into a major controversy regarding questionable contracts to a company run by Liz Perik’s husband’s company.

When GoLocal reached then-Lt. Governor candidate Perik to discuss the issues with the use of federal monies, she said, “I am eating dinner and it’s Sunday night.” She did not respond to GoLocal’s request for a return call.

Focus on Perik’s Company 

Michael Perik was a central figure in the scrutiny in Iowa.  He donated approximately $100,000 to then-powerful U.S. Senator Tom Harkin and other Iowa officials.

Perik’s company received more than $6 million in contracts — a central element in an education industry controversy.

But, the issue was far bigger than just Iowa and impacted education groups across the country and touched Rhode Island.

According to EdWeek, “Ms. [Faye] Taylor, a former Tennessee state education commissioner, was a member of the board of the Education Leaders Council, the Washington-based group that landed nearly $33 million in congressional earmarks for the project. But the council, which was started in 1995 as a conservative-leaning policy organization for state schools chiefs and other education officials, ran into leadership and financial trouble.”

And tied to much of the conflict were Perik’s companies — he has been a leader in the education industry — big business and big contracts.

“Two companies are the main vendors for Following the Leaders’ services: Achievement Technologies Inc. of Newton, Mass., which provides software that helps teachers monitor students’ skills using tests that are aligned with each state’s academic standards, and The Princeton Review, a New York City-based test-preparation company, which offers a Web-based tutorial program to help students sharpen their skills,” reported EdWeek.

“Iowa has the largest number of schools in the program, Ms. Taylor said. The Iowa School Boards Association provides the program for some 225 schools there. An estimated 123 schools in Alaska participate in FTL, along with 48 in Tennessee, 35 each in Ohio and West Virginia, 34 in Mississippi, 24 in Illinois, 13 in Pennsylvania, and seven in Rhode Island,” reported EdWeek.

Perik served as Chief Executive Officer of Achievement Technologies from 2000 to 2006 and then sold the company. And, then Perik was CEO of Princeton Review starting in 2007 to 2010.

In March of 2010, the Register unveiled the business relationships between the range of companies, the federal earmarks and the campaign donations.

“Skills Iowa buys software from U.S. Skills, a company run by Michael Perik of Rhode Island. Over the past 10 years, Perik has contributed more than $1 million to various Democratic Party campaign committees around the nation,” reported the newspaper in 2010.

“Donations have included $25,000 to Gov. Chet Culver’s campaign committee and $13,800 to Harkin’s campaign committees and to Tom PAC, an organization Harkin uses to support other Democrats. State records indicate Perik has also contributed $31,000 to the Iowa Democratic Party,” reported the paper.

“In late 2004, after securing $30 million in federal funding, questions were raised about the for-profit’s relationship with its biggest vendors. The concern was that Following the Leaders was accepting financial support from the same companies it was giving taxpayer-funded contracts for software,” wrote the Register. 

“The for-profit companies were Achievement Technologies and the Princetown Review. Tax records show that in 2005 Following the Leaders spent almost 80 percent of its annual budget — $6.8 million —with the two companies as payments for “education consulting.”

Ultimately, according to the newspaper, the FBI and the Iowa attorney general both conducted investigations. Overbilling was uncovered as well as questionable use of credit cards. The programs came unraveled after the inquiries.

Contributions in Iowa, RI, and Across Country

The Register by 2010 had tracked approximately $100,000 to Iowa state and federal officials, but that pales in donations in Rhode Island and federal donations. In Rhode Island, the Periks have donated approximately $130,000 just to Rhode Island state candidates according to RI Campaign Finance reports, including $11,000 just to former Governor Gina Raimondo. 

The couple has made millions in federal donations — more than 500 total donations according to Federal Election Commission.  

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