25 AUG 2008

THE MCCAIN STORY THE MEDIA HASN'T TOLD YOU

Phoenix News Times 2000
<http://www.phoenixnewtimes.com/2000-02-17/news/haunted-by-spirits/> -
[Senator McCain's] wife and -- more important -- his father-in-law, James
Willis Hensley, are very wealthy people. Like his father and grandfather
before him, McCain was a career Navy officer. His earning power and his
inheritance were modest. At its peak, his pay as a captain was about
$45,000.

But he retired from the military in 1980, divorced his first wife, wed
Arizona native Cindy Lou Hensley and moved here to plunge into the world of
politics. His first job in Arizona was as a public affairs agent for Hensley
& Company, one of the nation's largest beer distributors. He was paid
$50,000 in 1982 to travel the state, touting the company's wares. But he was
promoting himself as much as he was Budweiser beer. A better job description
might have been "candidate."

In 1982, Cindy drew more than $700,000 in salary and bonuses from
Hensley-related enterprises as her husband was elected to the U.S. House of
Representatives in his first political campaign. . .

From Day 1, Hensley money has enabled McCain to be a full-time politician,
free from financial concerns. . .

John McCain's political allegiances to liquor purveyors and his
father-in-law's interests are subtle. That narrative is marked by a pattern
of patronage.

The Hensley saga, meanwhile, swirls with bygone accounts of illicit booze,
gambling, horse racing, deceit and crime. James Hensley embarked on his road
to riches as a bootlegger.

It was December 6, 1945. World War II had ended a few months earlier.

Joseph F. Ratliff was just about to wrap up another day as office manager at
United Distributors Company when two of his bosses, Eugene and James
Hensley, paid a visit to Ratliff at the company's Tucson liquor distribution
warehouse around 5 p.m.

The Hensley brothers were partners with a powerful Phoenix businessman named
Kemper Marley, who had cornered a large share of Arizona's wholesale liquor
business after Prohibition was lifted in 1933.

Ratliff had gone to work for United Distributors in September 1944. His job
was to oversee shipments of whiskey into and out of the United Distributors'
warehouse by keeping track of invoices, filing tax and sales reports with
the federal government and monitoring cash flow.

During and after World War II, the sale of whiskey was tightly regulated by
the federal government. Demand for whiskey was high, particularly on the
black market, where prices were more than double the regulated market price.

"'Well,' Gene Hensley says, 'It is five o'clock, why don't you go home? It
is time to close,'" Ratliff told Assistant United States Attorney E.R.
Thurman in sworn testimony in March 1948.

Ratliff went home.

Upon his return to the warehouse the next morning, Ratliff found a
disturbing sight.

"When the warehouse man came down and opened the warehouse, I started out
through the warehouse to go to the men's room, and I noticed there was two
rows of whiskey there the night before that wasn't on the floor that
morning. So I went back to the office. I thought we had been robbed."

In his office, Ratliff found another surprise.

"There was a bunch of invoices in my desk that had been made out after I had
left the office, apparently," Ratliff testified.

The invoices appeared to be related to the whiskey -- about 50 cases -- that
had disappeared from the warehouse overnight.

Ratliff went outside to empty some trash and noticed "a pile of empty
whiskey cases out there." Tangled up in the pile of boxes were federal tax
serial labels that were supposed to remain with the liquor when sold to a
retailer.

Ratliff recognized the handwriting on the invoices as belonging to
then-25-year-old James Hensley, who had become general manager of the Tucson
operation in June 1945 after a three-year stint in the military. James
Hensley had served as a bombardier on a B-17 and was shot down over the
English Channel on his 13th mission.

Ratliff wasn't sure what was going on until later that day, when James
Hensley returned to his office.

"He came in and paid me for those invoices," Ratliff testified. "Cash
sales."

Ratliff dutifully marked the invoices as paid.

The seven invoices prepared by James Hensley -- after the warehouse was
closed -- indicated the liquor had been sold and delivered to seven
establishments in southern Arizona. . .

In fact, none of the liquor went to the retailers named in the invoices
prepared by James Hensley. Nobody but James Hensley knows where it really
went, and he never told authorities. He declined repeated requests to be
interviewed for this story.

What is certain is that what occurred that December day was standard
operating procedure for the Hensley brothers between April 1945 and January
1947. During this period, a 1948 federal criminal indictment charged, the
Hensleys made approximately 1,284 false entries related to the sale of
thousands of cases of liquor by their two companies -- United Sales Company
in Phoenix and United Distributors in Tucson.

Ratliff's testimony eventually led to James and Eugene Hensley's conviction
on federal conspiracy charges "with the intent and design to hide and
conceal from the United States of America, the names and addresses of the
person or persons to whom the said distilled spirits were sent, and the
prices obtained from the sale thereof."

A federal jury in U.S. District Court of Arizona in March 1948 convicted
James Hensley on seven counts of filing false liquor records in addition to
the conspiracy charge. Eugene was convicted on 23 counts of filing false
statements and the conspiracy count. Eugene was sentenced to one year in
prison, and James to six months. Neither brother testified during the trial,
relying instead on their lawyers, who included Louis B. Whitney, a prominent
attorney who served as mayor of Phoenix from 1923 through 1925.

After a two-week stint in the Maricopa County jail, the men were released on
bond on May 17, 1948, pending an appeal to the U.S. 9th Circuit. The appeals
court affirmed the conviction on February 8, 1949.

Two weeks later, a judge sentenced Eugene to one year in a federal prison
camp near Tucson, but suspended James' sentence, placing him on probation
instead. Both men were fined $2,000. United Sales and United Distributors
were also convicted and fined $2,000.

The criminal convictions had little immediate impact on the brothers'
fortunes.

James Hensley profited handsomely from his association with liquor magnate
Kemper Marley, a man police suspect ordered the 1976 murder of Arizona
Republic reporter Don Bolles, who had written about Marley's business and
political dealings. The man convicted of placing a bomb beneath Bolles' car
testified that Marley also wanted former Arizona governor and then-attorney
general Bruce Babbitt murdered because Babbitt had filed an antitrust
lawsuit against the liquor industry in 1975. (Marley, who died in 1990, was
never charged in the Bolles case. Babbitt is now U.S. Secretary of the
Interior.)

By 1955, James Hensley had launched a Budweiser distributorship in Phoenix,
a franchise reportedly bestowed upon him by Marley, who was never indicted
in the 1948 federal liquor-law-violation case -- or a subsequent one --
despite his controlling financial role in the liquor distribution
businesses.

James Hensley's conviction didn't deter the State of Arizona from granting
him a wholesale liquor license in the mid-1950s. The Arizona Department of
Liquor Licenses and Control turned a blind eye to repeated liquor-law
violations at the company. State liquor regulators did nothing when James
Hensley failed to disclose his federal felony conviction on a sworn 1988
disclosure statement to the department and the City of Phoenix.

Today, Phoenix-based Hensley & Company is the nation's fifth-largest beer
wholesaler -- a privately held business that 80-year-old James Hensley still
controls. He built the Budweiser distributorship into at least a $200
million-a-year business, with annual sales of more than 20 million cases of
beer.

James Hensley owns nearly all of the voting stock, and most of the rest of
the closely held securities are in trusts for his grandchildren or owned by
his daughter, 45-year-old Cindy Hensley McCain -- wife of U.S. Senator and
presidential hopeful John McCain. . .

Although Hensley wealth has helped propel McCain's political career, the
senator will never get his hands directly on the Hensley fortune because of
an ante-nuptial agreement he signed before his 1980 marriage.

A centerpiece in McCain's remarkable and sudden rise to national prominence
is his promise of campaign-finance reform.

Yet McCain has relied heavily on the financial contributions from big
corporate donors -- with the liquor and beer industry near the top of the
list. McCain won -- one could say bought -- his first election to the House
of Representatives in 1982 with lavish sums of Hensley beer money. . .

Since 1982, Hensley & Company employees have donated almost $200,000 to
federal political candidates and campaigns. . .

Liquor spirited from the Hensley brothers' warehouses helped fuel a lively
nightlife at some of the Valley's most exclusive clubs in the mid-1940s. The
Green Gables, the Silver Spur and the Cowman's Club were recipients of
black-market shipments, according to testimony presented at the 1948 federal
trial of the Hensleys and their two companies, United Sales Company in
Phoenix and United Distributors in Tucson.

Jack Baldwin, a salesman and supervisor at United Sales, testified at the
1948 federal trial that Eugene Hensley regularly instructed him to draw up
false invoices, transfer scores of cases of liquor offsite and deliver
premium whiskeys to selected black-market clients.

Baldwin testified he was ordered by Eugene Hensley in September 1946 to kick
in a door at the United Sales' warehouse on North 19th Avenue and take five
cases of scotch for a black-market sale to the Green Gables.

In other instances, Baldwin testified that he took as many as 50 cases of
whiskey from the United Sales warehouse and stashed them on the back porch
of his central Phoenix home for later delivery to black-market buyers.

"I can name you 20 deals like that," Baldwin testified. . .

"Why would you make invoices that did not show the true fact situation?"
Assistant U.S. Attorney Thurman asked.

"The liquor went someplace else," Baldwin stated.

"Under whose direction did you make these invoices?"

"Gene Hensley," Baldwin replied.

"After these were made out, these particular invoices, what did you do with
them?"

"I took them home, burned them usually," Baldwin stated. . .

Sometimes the Hensleys sold liquor to unlicensed individuals who would
transport up to 55 cases at a time to states including Oklahoma and Utah.
Carl "Kid" Carter from Ogden, Utah, purchased dozens of cases of whiskey at
a time, loaded them into a late-1930s sedan, covering the illicit cargo with
a blanket before heading home, 600 miles north. . .

While the bootlegging operation was in full swing, the Hensleys and Marley
dissolved their partnerships and created two corporations in September 1946
-- United Sales Incorporated in Phoenix, and United Distributors
Incorporated in Tucson. At the time of incorporation, Eugene Hensley, 32,
was president of the companies, while James Hensley, 25, served as
secretary. Kemper Marley, 39, was listed as vice president of both
companies.

Despite Marley's title, federal prosecutors stated that Marley had purchased
control of the companies in January 1946.

Over the years, Marley built the companies, which became United Liquors,
into Arizona's largest wholesale liquor distributorship. Along with his vast
land holdings, political, gambling and prostitution ties, Marley built a
fortune worth more than $39.2 million by 1980.

On February 26, 1953, James Hensley once again found himself charged with
federal liquor crimes. This time, the government alleged that James Hensley
and other officers of United Liquor Company and United Liquor Supply Company
falsified records to reduce the company's tax bill.

On the opening day of the trial in federal court in Tucson, Judge James A.
Walsh granted a motion by Hensley's attorney -- former Maricopa County
Attorney Lynn Laney -- to dismiss all charges against Hensley and other
individuals. The case continued against the two companies.

The government alleged the companies falsely stated that about 400 cases of
whiskey were transferred from Tucson to Phoenix on December 30, 1950, and
December 30, 1951, to avoid paying higher liquor taxes levied in Pima
County, where Tucson is located. The government charged that the liquor
never left the Tucson warehouses.

On the third day of the four-day trial, Kemper Marley -- owner of United
Liquor and United Liquor Supply -- unexpectedly took the stand as a defense
witness. Prosecutors successfully halted his testimony, claiming it was
immaterial and irrelevant.

Defense attorneys argued that although the liquor was never transferred to
Maricopa County, all taxes were nevertheless paid to Maricopa County,
therefore nothing further was owed. Defense attorney Joseph Jenckes said the
companies were simply trying to meet their tax obligations in the most
practical way, according to an October 17, 1953, story in the Arizona Daily
Star.

The next day, a jury acquitted the two companies on all 11 counts.

In December 1952, James Hensley joined his brother Eugene in the purchase of
Ruidoso Racing Association in south central New Mexico. Prior to the
purchase, Eugene Hensley operated a couple of nightclubs in Phoenix,
including Hensley's Horseshoe Bar on Van Buren Street, with his first wife,
Billy.

The New Mexico venture proved to be more trouble for the Hensley brothers,
who became embroiled in a controversy with the New Mexico Racing Commission
over hidden ownership.

The commission was concerned about the Hensley brothers' ties to Phoenix
gambler Clarence E. "Teak" Baldwin (no relation to Jack Baldwin). The
commission asked the New Mexico State Police to investigate in 1953.

According to a March 26, 1977, article in the Albuquerque Journal, the 1953
New Mexico State Police report stated that Teak Baldwin was a "bookmaker for
leading tracks." According to the Journal article, the police report stated
that the Hensleys' Arizona liquor business partner, Kemper Marley, "is
reputed to be the financial backer for the bookies. . . ."

The Journal story appeared shortly after a group known as Investigative
Reporters & Editors -- spurred to action by the murder of Don Bolles --
unleashed a series of 23 stories on organized crime, land fraud and
political corruption in Arizona.

The Journal reported that the 1953 New Mexico State Police investigation
stated that Marley "owned a wire service formerly operated in connection
with bookmaking of the Al Capone gang."

The Journal also reported that the state police report included a transcript
of a phone conversation between an officer in Santa Fe and a Phoenix police
officer who said, "... Our confidential files built up on Baldwin (and
others) was loaned to some officials and never returned. We've never been
able to locate them."

With the police report in hand, the New Mexico Racing Commission grilled the
Hensley brothers in May 1953 about their ties to Baldwin. While the brothers
were forthright in disclosing their liquor business ties with Marley and
their subsequent federal felony convictions, they told the commission that
Teak Baldwin had nothing to do with the track.

Eugene Hensley told the commission in May 1953 that Baldwin steered him to
look at the track as a possible investment. Former commission chairman Tom
Closson told the Hensleys "the commission would not have Baldwin connected
in any way, shape or form down there [Ruidoso Downs]," the Journal reported.

The Hensleys denied that Baldwin had any interest in the track, the Journal
reported.

But two years later, according to the Journal, records indicated that
Baldwin actually had a one-third stock interest in the track with the
Hensleys. . .

In April 1955, James Hensley sold his interest in Ruidoso Downs, for which
he was listed as secretary-treasurer, and had no apparent connection to the
track thereafter.

Eugene Hensley's problems at Ruidoso Downs were just beginning. In 1963,
Eugene Hensley was sued by minority partners for $415,000. The partners
alleged Eugene Hensley used track money to make improvements to his
Scottsdale home, used the track's airplane for personal pleasure and built
and operated a guest house for his personal use. The lawsuit was settled the
same year after Eugene Hensley agreed to return 1,000 shares of Ruidoso
Racing Association stock that was by then worth $350,000.

The civil suit was prelude to an eight-count federal criminal indictment
filed against Eugene Hensley in 1966, alleging income tax evasion. Eugene
Hensley was convicted on all counts in a scandalous trial that revealed he
had purchased several automobiles using track money and given them to his
wife and a girlfriend.

Despite his 1966 conviction and subsequent five-year prison sentence, Eugene
Hensley remained free on bond and continued to control operations at Ruidoso
Downs until the New Mexico Racing Commission banned him from the track in
1968. After his criminal appeals were denied, Eugene Hensley entered a
federal prison in La Tuna, Texas, in 1969.

That same year, Eugene Hensley sold his remaining interest in the track to
NewCo Industries Incorporated, which immediately signed a 20-year concession
contract with Emprise Corporation of Buffalo, New York.

Emprise had documented ties to organized crime, and was the concessionaire
at Arizona dog tracks. One of the company's strongest Arizona supporters
reportedly was the Hensleys' old business partner -- Kemper Marley.

In the early 1970s, Arizona racing officials began to clamp down on Emprise
after the company was convicted and fined $10,000 in U.S. District Court in
Los Angeles for its hidden ownership in the Frontier Hotel and Casino in Las
Vegas. The IRE series reported that as a defendant in that case, Emprise was
linked to several prominent organized crime figures.

Emprise reorganized in Arizona as Ramcorp and was allowed to keep its
lucrative concession contracts while its Los Angeles conviction was
appealed. But all the company's proceeds from dog tracks were funneled
through a trustee, former Mesa rancher and farmer Dwight Patterson.

Patterson, according to the IRE, urged then-Arizona governor Raul Castro to
appoint Kemper Marley to the three-member Arizona Racing Commission, a
position Marley reportedly was eager to get. Marley would replace Robert
Kieckhefer, who had been an opponent of Emprise.

Castro received more than $19,000 during his 1974 gubernatorial campaign
from Marley, and another $5,000 from Marley's daughter -- colossal sums at
the time for an Arizona political campaign. Castro appointed Marley to the
racing commission in 1976.

Arizona Republic reporter Don Bolles wrote a series of stories documenting
Marley's questionable performance in appointive posts he'd previously held.
Bolles' stories doomed Marley's appointment, forcing him to resign soon
after being named to the Racing Commission.

On June 2, 1976, Bolles was mortally wounded by a car bomb. Before lapsing
into unconsciousness, Bolles uttered the words, "Adamson, Emprise, Mafia."
He died 11 days later.

John Harvey Adamson confessed to luring Bolles to a Phoenix hotel parking
lot and placing a bomb beneath the reporter's car. The bomb, Adamson
testified, was detonated by James Robison, a Chandler plumber. Adamson
testified he was hired to kill Bolles by Max Dunlap, a Phoenix contractor
and close associate of Marley's. Marley had extended a $1 million loan to
Dunlap, which had not been repaid. Adamson said Dunlap hired him to kill
Bolles because Marley was upset over Bolles' stories.

Adamson served a 20-year prison sentence and has since been released. Dunlap
was convicted of first-degree murder and sentenced in 1994 to life in
prison. Robison was convicted, but his case was later overturned on appeal
and he was acquitted in a 1993 retrial.

In 1981, Marley filed a libel suit against IRE for a 1977 story that linked
Marley to organized crime and the Bolles murder. Marley sought a
"six-figure" award for compensatory damages and a "seven-figure" punitive
award. A jury ruled that Marley had not been libeled by the stories.
However, the jury ruled that IRE had inflicted "emotional distress" on
Marley. The jury awarded Marley $15,000 in punitive damages, a fraction of
the damages he was seeking.

Marley died in 1990 at age 83.

He was never charged in the Bolles case and denied any involvement.

After selling his interest in Ruidoso Racing Association, James Hensley
turned his attention to a wholesale beer distributorship he reportedly
founded in 1955 in Phoenix with 12 employees. . .

Some liquor industry observers say Hensley was given the Budweiser
distributorship by his old business associate Kemper Marley, but a search of
public records has not confirmed this theory. What the records do show is
five decades of steady growth for Hensley's enterprise under the lax
supervision of the Arizona Department of Liquor Licenses and Control. . .

One can only speculate how a convicted felon who falsified federal liquor
records managed to obtain a state and federal wholesale liquor license
within a few years of his 1949 conviction and 1953 indictment. But
apparently, Hensley did. . .

However, it is extremely unlikely that a person with a similar conviction
today would get a federal liquor license, says Allison Stevens, ATF Phoenix
Area supervisor. . .

State records show James Hensley applied for another liquor license in 1988.
This time, Hensley did not disclose his federal conviction when asked
specifically on the form whether he had ever been convicted of a felony.
James Hensley signed the sworn and notarized statement that warned false
information "could result in criminal prosecution.". . .

Hensley & Company is reported to be the 12th largest privately owned company
in Arizona, with nearly 500 employees and a sales and delivery fleet of more
than 300 vehicles, according to a September 1999 article in the trade
journal Beverage World. . .

Company records show that as of January 1996 James Hensley controlled
through a trust 2,110 shares of stock, of which at least 1,655 shares were
voting stock. Cindy McCain owned the largest block of stock with 7,436
shares, but only 177 shares were voting.

Her three children, John, James and Meghan, each had 1,370 shares --
including 336 voting shares each -- held in trust. An adopted child,
Bridget, had 600 non-voting shares.

The company placed a value for tax purposes of $1,467 per share on the stock
in 1996, making Cindy McCain's stake in the company worth $11 million. The
trusts for the four children are worth about $7 million. Delgado, meanwhile,
controlled 4,572 shares of non-voting stock worth $6.7 million.

The Hensley & Company stock is only part of the McCain clan's wealth.
According to Senator McCain's financial disclosure statement for calendar
year 1998, Cindy McCain controls more than $1 million worth of
Anheuser-Busch stock that generated between $15,000 and $50,000 in
dividends. Cindy McCain and her children also report owning real estate in
Mesa, Sedona and Yuma worth more than $2.5 million. . .

Senator McCain's personal wealth is tied completely to his wife.

Tom Fitzpatrick, Phoenix New Times, 1992
<http://www.phoenixnewtimes.com/1992-10-21/news/call-my-travel-agent-there-s
-an-election-coming-up/> - McCain is the perfect example of evil
masquerading as good. He made an advantageous marriage to the daughter of
state beer baron Jim Hensley, the Budweiser distributor. This made him an
instant millionaire.

Hensley is a man who understands loyalty. In his earlier days, he and his
brother took falls for his then-boss Kemper Marley. Hensley and his brother
were convicted. Their rewards were exclusive distributor territories in
Phoenix and Tucson. Since then they have become inordinately wealthy.

Marley, now deceased, was one of the state's richest men. His name surfaced
as the power behind the 1976 car-bomb murder of Arizona Republic reporter
Don Bolles.

At Marley's funeral, Frank Sinatra's signature tune "My Way" was played by
the organist over the objections of the church's pastor. The man responsible
for this unusual tribute was Max Dunlap, whose trial for Bolles' murder is
scheduled to begin next month.

It is no longer fashionable in local journalistic circles to mention
McCain's close friendship with Charlie Keating. It's a shame they had a
falling out. They seemed to have so much in common and enjoyed each other's
company so much.

They met in 1981 when McCain moved to Arizona. Keating was a World War II
pilot. McCain made nine vacation trips to Keating's home in the Bahamas from
1984 to 1986. The trips were made free of charge on jets provided by
Keating.

Because the ethical violation was so obvious, McCain was eventually forced
to pay $13,433 for the flights to Keating's company, American Continental
Corporation.

He escaped ethical censure because the trips were made while he was a member
of the House of Representatives and the trips didn't come to light until he
was a member of the Senate, which conveniently declared it had no
jurisdiction.

The House couldn't act, either, for the same reason. Keating contributed
$112,000 to McCain's 1982 and 1984 House campaigns and his 1986 Senate run.
McCain's father-in-law and his wife also took advantage of the chance to
make a lucrative shopping-center investment with Keating.

NY Times, 2000
<http://query.nytimes.com/gst/fullpage.html?res=9404E5DD1430F932A15751C0A966
9C8B63&amp;sec=&amp;spon=&amp;pagewanted=print> - In his rise to political
influence, Mr. McCain, who had no ties to Arizona until he married Cindy
Hensley and moved here in 1981, also won the critical blessing of the city's
business establishment through his close friendship with another of the
state's power brokers, Darrow Tully, the publisher then of the state's
dominant newspaper, The Arizona Republic. ''Duke'' Tully led an ad hoc group
of business executives and self-appointed political kingmakers known as the
Phoenix 40, whose backing helped Mr. McCain in that first Congressional race
and assured his Senate victory four years later. . .

Mr. Tully was a far different patron from Mr. Hensley. A swaggering,
fun-loving 6-foot-4, he was comfortable with business executives and
politicians alike. Mr. Tully, an accomplished pilot, loved to regale people
with tales of his exploits flying jet fighters in the Korean and Vietnam
wars. His house and office were filled with photographs of him alongside all
manner of military aircraft.

''He'd point to his teeth and say, 'See these? They're steel. I lost the
others when I crashed,' '' recalled Pat Murphy, a former columnist and
editor at The Republic. . .

The Phoenix 40 was an unofficial group made up of the city's leading
businessmen -- bankers, partners from the largest law firms, chief
executives and, of course, executives of newspapers. The group was created
in the early 1970's by Eugene C. Pulliam, the conservative founder of
Central Newspapers and grandfather of former Vice President Dan Quayle.

The goal was to promote policies that its members felt were good for the
city and state as Arizona expanded from a quiet rural state to a Sun Belt
powerhouse.

It was also the closest thing to a political machine in Phoenix, and
anointment by the Phoenix 40 almost invariably translated into victory at
the polls.

Mr. Merrill, the Arizona State professor and political observer, said the
power was exercised quietly and effectively.

''When you control the major newspaper, the TV stations and the people who
make most of the political contributions,'' Mr. Merrill said, ''you have
enormous influence''

Mr. Tully harnessed that influence to Mr. McCain's political career from the
outset, leapfrogging him over Republicans who had waited patiently for a
shot at Mr. Rhodes's seat in 1982.

''There was a lot of resentment among Mesa Republicans, none of whom had
ever heard of John McCain until he was suddenly the designated hitter,''
said Terry Goddard, a Democrat and former mayor of Phoenix. . .

But the newspaper publisher who had helped so much was not there to savor
the victory. The day after Christmas 1985, after rumors began to circulate
that Mr. Tully was not all he claimed, he acknowledged that he had never
served in the military, and he resigned from the newspaper and left Arizona.
But the war hero for whom he had done so much was well launched on his
political career.

The Arizona Republic, 1989 - Sen. John McCain had more than a constituent
relationship with Charles H. Keating, Jr. prior to 1987 . . . The McCains -
sometimes with their daughter and baby sitter - made at least nine trips at
Keating's expense from August 1984 to August 1986 aboard either Keating's
American Continental Corporation's jet or chartered planes and helicopters
owned by Resorts International. Three of the trips were for vacations at
Keating's luxurious retreat in the Bahamas."

Phoenix Gaztte, 1990 - The liquor case is particularly intriguing as it
resulted in criminal charges against Marley's subordinates, James and Eugene
Hensley. If the last name sounds familiar, it's because James is papa to
Cindy McCain, who is wife of Sen. John McCain, R-Ariz., who is infamous
lately as a member of the Keating Five . . . Marley also has been a shadow
figure in the 1976 slaying of Republic reporter Don Bolles. Bolles wrote
extensively about Marley's lucky past. And about how the Hensleys (Marley's
managers) bought Ruidso Downs racing track in New Mexico. He wrote about
Eugene Hensley spending five years in federal prison for a skimming scam.
And about the Hensleys selling their track to a buyer linked with Emprise
Corp. And about Marley's liquor ties with Emprise . . . one of Bolles' final
dispatches appeared as Marley was about to become a member of the Arizona
Racing Commission - the agency that regulates racetracks, including those
run at the time by Emprise . . . the story dispatched Marley's appointment.
Two months later, a car bomb killed Bolles." "Bradley J. Funk, an antique
dealer linked to the 13-year-old Don Bolles murder case through his family's
former ownership of dog-racing tracks, has died of a heart attack,
authorities said Jan. 2 . . . Bolles, 47, a former investigative reporter
with the Arizona Republic, died June 13, 1976, about 11 days after a
dynamite-based bomb blew up beneath his car . . . in his last statement
before lapsing into unconsciousness, he mentioned the Mafia, John Adamson
and Emprise Corp., a Buffalo, N.Y. company with a far-flung sports empire
which once included ownership of the Boston Bruins hockey team and the
former Cincinnati Royals basketball franchise . . . now known as Delaware
North Cos., Emprise was convicted in 1972 of a federal charge of conspiring
to hide Mafia interest in a Las Vegas, Nev., casino . . . Emprise and the
Funk family were partners in six dog-racing tracks in the state and the
Prescott Downs horse track, and Bolles had ripped their operations in print.

Arizona Republic, 1990 - When reporters called him with questions last year
about previously unknown ties to Keating, an investment by wife Cindy McCain
in a Keating shopping center and trips to Keating's Bahamas home, McCain
went into a rage

Phoenix Gazette, 1990 - Cars, homes and bank accounts of 18 people,
including eight state legislators, were confiscated in a civil racketeering
lawsuit that paints a portrait of lawmakers eager to sell their influence
for as little as $660 and as much as $750,000 . . . Richard Scheffel,
another lobbyist indicted but not targeted in the civil racketeering suit,
is reputed to have been paid $20,000 to identify and approach lawmakers
interested in trading votes for money . . . in a bid to establish his
professional credentials with Stedino, Scheffel is reported to have boasted
that '(U.S.) Sen. John McCain's father-in-law gives money to politicians
through him' . . . Bauer, in his report, said Scheffel claimed that 'each
January he receives $30,000 from the local Anheuser-Busch distributor, Jim
Hensley,' adding that Hensley also supplied him with names of people to list
as contributors."




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