Local News

Dixon Addresses Allegations Against Her

BALTIMORE (WJZ) ― Mayor Sheila Dixon addressed the media Wednesday morning about her personal relationship with a prominent developer.

Gigi Barnett reports prosecutors are now investigating whether Dixon received thousands of dollars in gifts from developer Ronald Lipscomb when she voted on tax breaks and zoning for his projects.

Dixon told the media gathered at City Hall "this is a process" and "she is cooperating with authorities."  She says it's aggravating that members of the media can talk about this, but she can't. 

"I can't talk about it in the media because it is under investigation, but certain media people are getting information from the prosecutor's office and that really bothers me because there is a process," Dixon said.

She says she knows how to maintain a budget and is focusing on the future of the city.  Dixon encouraged members of the media to look at documents relating to her actions at Board of Estimates meetings.  She says she abstains when there is a conflict of interest.

Dixon had no comment about allegations that she used gift cards designed for needy people. Dixon says she is not going to discuss the allegations in depth and referred questions to her attorneys.  She also thanked her supporters. 

Dixon told the media she would survive this.

"I take this business of what I do one day at a time. I will continue to stay focused in this position I am in, as I long as I am in this position," said Dixon.

In a statement to the Eyewitness News Tuesday, Mayor Dixon admitted, "In late 2003 and early 2004, I had a personal relationship with Ron Lipscomb. We were both separated from our respective spouses at the time, we traveled together and exchanged gifts on special occasions. Our brief relationship was personal, and it did not influence my decisions related to matters of city government."

On Wednesday, Dixon said more about the relationship.

"Despite my relationship, Ron Lipscomb is a great person. It was a personal relationship. I wasn't the mayor then...there's a process that the Baltimore Development Corporation and Housing goes through. That was under the O'Malley Administration who handled those," said Dixon.

Documents reveal investigators were after computer records of the relationship when they raided Doracon Contracting last year. Lipscomb is Doracon's president.

In one case, the document states Dixon voted on a $13 million tax break for Doracon--for the Spinnaker Bay building in Harbor East-- the same day she and Lipscomb went on a lavish trip to New York.

The document also reveals trips the two took to Colorado, Boston and Chicago, and that Lipscomb was at Dixon's birthday celebration in the Bahamas. It raises questions about whether Doracon and Lipscomb paid for travel and lodging expenses.  

The document also revealed Dixon's expenditures during the trip she and Lipscomb took to Chicago, including $570 for Jimmy Choo sandals, more than $600 spent at Coach, $4,400 for clothes at Armani and more than $2,200 at a Michigan Avenue boutique.

Lipscomb's lawyer released a statement to Eyewitness News.

"In Mr. Lipscomb's entire business career, he has never asked an elected official, including Ms. Dixon, to do anything for him or his businesses, but has devoted his time and effort on behalf of legacy wealth for minorities, often at great personal disadvantage." 

The state prosecutor's investigation into money, influence and the mayor is heating up as grand jurors meet.  That could be the critical step before an indictment.  

Documents confirm the prosecutor's office is investigating crimes of "bribery, perjury and misconduct in office."  They are also looking at whether the mayor voted on contracts that benefitted her sister's employer.

They are also looking to see if the city paid her former campaign manager's company thousands of dollars to work on the City Council's computers with no contract.

During proceedings at the Mitchell Courthouse, the prosecutor will question those subpoenaed.  The grand jurors are Baltimore citizens, prohibited by law from talking about what happens.

Anthony McCarthy is expected to appear before them at some point.  He was Dixon's chief of staff when she was City Council president and served as her mayoral spokesman and director of communications until last year.

"We will cooperate fully with the prosecution.  Mr. McCarthy has no idea what they're looking for or what questions they might have," said Dwight Pettit, his attorney.

The mayor has strongly denied any wrongdoing.

"I'm trying to keep the city running and moving and stay focused," Dixon said. "In my heart, I did nothing intentionally in any of this. This has legs on it that's trying to destroy my character."

The prosecutor is also looking at whether Doracon paid for Dixon's fur coats.  The document his office filed reveals Dixon never disclosed any gifts from Lipscomb in statements she signed under oath and required by the city's ethics ordinances.  

"The grand jury is totally the show of the prosecution.  As one expert said the other day, a grand jury can indict a ham sandwich," Pettit said.

At least six of those subpoenaed worked with Dixon when she was City Council president.  Many are current city employees; some still work in the mayor's office.

"They can step out and ask for counsel and they also have the right to take the fifth amendment if they feel that anything is incriminating," Pettit said.

Pat Warren reports Governor O'Malley, who was mayor when Dixon was City Council president and was on the Board of Estimates with her, offered his perspective from the Eastern Shore Tuesday.

"I hope that everything works out for the best for Mayor Dixon.  I know she was a very strong partner of mine during the years I served the city of Baltimore and I hope things work out.  It's probably not appropriate of me to make a comment other than that."

He also said that he had no knowledge of the relationship between Dixon and the developer. 

"All of those deals were among the most thoroughly and heavily scrutinized in the city's history," O'Malley said.

Current City Council President Stephanie Rawlings-Blake had nothing but praise for Dixon last week after Dixon's house was searched.  

"This is a woman who when she became leader of our great city, hit the ground running and never stopped," she said.

"No matter how prominent the person is, in America, you're innocent until proven guilty," said State Delegate Jill Carter. "[It's] only good business sense to support the people that are going to be in control of the city and the state, but it's up to the politician to not abuse the office.  I'm not contending there has been any abuse, but I'm just saying what we need to do is look at it and if change is needed, consider change and possibly move toward it."

City Comptroller Joan Pratt says she has seen no impropriety.

"Every individual takes a look at the item and reviews it, and makes a decision on their own," said Pratt.

"There's information that has not been put out there because the prosecutor's information is his own view of the world," said City Solicitor George Nilson.

City Councilman Robert Curran, who also helped draft ethics legislation, weighed in. 

"All I know is the bills that came from the City Council --which often the bills go from the Board of Estimates to the City Council -- those bills passed unanimously or with very token opposition," said Curran.

The re-surfacing of the investigation catches many off-guard, leading some observers to believe prosecutors may be getting help from other connections to the mayor.

"One can only guess that it had something to do with the guilty pleas and sentencing of two people who were associated with Mayor Dixon," said political analyst Matthew Crenson.

"I would love to have a timely resolution to this, because this is really clouding a lot of good work that's going on," said Dixon.

Neither Dixon nor Lipscomb have not been charged with any crime.

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