Smith

JEFFERSON CITY • Missouri state Sen. Jeff Smith of St. Louis is considering resigning his seat because of a federal investigation involving his 2004 Democratic primary race for U.S. Congress, according to state government sources.

Smith, 35, widely considered a rising star in state politics, told fellow Democrats late last week that he was seriously contemplating leaving office, according to two highly placed sources in state government.

Word of Smith’s possible departure created a buzz of activity and speculation in the Capitol late last week. Staff members for both Gov. Jay Nixon and Senate President Pro Tem Charlie Shields researched the appropriate statutes for accepting a resignation from a senator when the General Assembly is not in session.

Asked late Friday about the possible resignation and his role in a federal investigation, Smith said, “I can’t confirm or deny anything.”

Neither the FBI nor the federal prosecutor would confirm or deny the existence of an investigation. Smith was elected to the state Senate in 2006, two years after his failed bid for Congress.

The 2004 Democratic primary in the 3rd Congressional District eventually won by U.S. Rep. Russ Carnahan was a contentious, 10-person contest that included several allegations about political dirty tricks.

In July of that year, Carnahan’s campaign filed a complaint with the Federal Election Commission alleging that Smith’s campaign was involved in anonymous distribution of “false and malicious information intended to deceive potential voters and evade proper federal disclosures.”

In December 2007, investigators recommended to the FEC that the case be closed because there was not enough evidence to prove violations of election law. Because parts of the FEC documents are redacted, it’s unclear what the final disposition of the case was.

But in the FEC filings, investigators pointed to Milton H. “Skip” Ohlsen III, 37, of St. Louis County as the distributor of the fliers in question.

During the investigation, FEC documents show, Ohlsen said he had several contacts with the Smith campaign over the production and distribution of his flier.

Ohlsen told the FEC that he was paid about $13,000 in cash but did not tell investigators who paid him, and he provided no documentation. FEC records show no payments from Smith to Ohlsen during the 2004 campaign. Various Smith campaign workers told the federal officials that they knew of Ohlsen and had provided him some research, but that they weren’t coordinating his efforts.

During the FEC investigation, Smith filed an affidavit saying that neither he, “nor any other group or organization under my control” was involved in the anonymous flier distributed during the campaign.

Ohlsen had set up a committee, Voters for Truth, to handle the distribution of the fliers. The FEC investigation determined that the bank accounts connected to Voters for Truth were created on fraudulent Social Security numbers.

In May of this year, Ohlsen pleaded guilty in an unrelated mortgage fraud case. He also faces federal gun charges. Since then, the two sources in state government say, federal investigators have talked to Smith about the 2004 complaints of election law improprieties.

Rumors floating in political circles that Smith is the target of a voter fraud case are not true, according to an FBI spokeswoman. Asked if there is a separate investigation into 2004 campaign violations, FBI spokeswoman Rebecca Wu said she could neither confirm nor deny such an investigation.

Ohlsen pleaded guilty in 1996 to a federal drug charge — possession with intent to distribute cocaine – in the western district of Missouri and was sentenced to four years of probation. Despite his record, Ohlsen was involved in Democratic politics in Missouri to the point where he was included in private e-mails strings involving many of the state’s top Democratic operatives.

Ohlsen pleaded guilty in May to federal firearms charges and bank fraud. He admitted possessing firearms when, as a felon, he was barred from doing so. He also admitted overstating his income to refinance his St. Louis County home and lying on documents when he filed for bankruptcy in June of 2008.

Ohlsen was scheduled to be sentenced on the federal charges last week.

But his attorney, Paul D’Agrosa, asked for and was granted a delay, citing unresolved issues.

On Friday, D’Agrosa declined to make Ohlsen, who is in jail, available for an interview.

If Smith were to resign, it would end a short but quick rise in Missouri politics.

A graduate of Horton Watkins High School in Ladue, Smith has a doctoral degree in political science from Washington University, where he has taught courses on politics and campaigning.

Smith arrived on the St. Louis political scene as an unknown, but quickly became popular among young city Democrats.

He was one of 10 Democrats on the ballot to replace veteran congressman Dick Gephardt. Smith’s effort received early buzz and progressive credentials after an endorsement from former presidential candidate and Vermont governor Howard Dean.

Smith lost the primary to Carnahan, with Smith getting 21.3 percent of the vote to Carnahan’s 22.9 percent. But Smith’s scrappy campaign and frenetic style became the subject of a documentary that profiled his congressional bid — “Can Mr. Smith Get to Washington Anymore?” (Even Smith’s first name is similar to the protagonist in the original Frank Capra classic.)

The film provided momentum for his state Senate run, which after another crowded primary, saw Smith emerge as the winner.

Smith’s term, however, has not been free of controversy. In 2007, Smith was cited for using somebody else’s identification to gain entry to a gambling boat in Boonville — a misdemeanor. Smith, who forgot his driver’s license on the lobbyist-led gambling excursion, used another legislator’s “player’s card” to enter the casino. He later gained the attention of casino security for refusing to put his Blackberry down while playing poker.

Charges were dropped earlier this year after voters in 2008 rescinded the loss-limit law — making the requirement to swipe an entrance card obsolete.

In the most recent legislative session, Smith was a key player in the debate over the historic tax credit program that uses taxpayer money to help refurbish old buildings, particularly in urban areas. Smith held up other key legislation as leverage to keep the historic tax credit program from being cut.

He also reached across the aisle and worked with Republicans to enact a law that would allow St. Louis public school teachers to receive merit pay bonuses. The law goes into effect later this month.

Smith, whose 4th District covers about half of St. Louis, would be up for re-election in 2010. If he resigns before his term is up, the governor would call a special election.

Jake Wagman and Robert Patrick contributed to this story.