Ex-GOP boss Greer under scrutiny, sues state party

State law enforcement authorities are investigating former Florida Republican Party Chairman Jim Greer after a state party audit found he received a cut of a lucrative fundraising contract that is at the heart of a state Republican Party financial scandal.

In return, Greer is accusing the state party of violating the terms of a secret severance agreement.

According to a report the state party released of an outside auditor's examination of the party's books, Greer owned 60 percent of Victory Strategies, sharing ownership with the person he named as party executive director, Delmar Johnson. The company received a 10 percent commission on top-dollar fundraising for the party, a contract that paid them about $200,000.

"Potential illegal activity on the part of this vendor and the former RPOF official involved is now the subject of an ongoing criminal investigation," reads a statement from the new party chairman, state Sen. John Thrasher. Thrasher said the party won't comment further.

Attorney General Bill McCollum, the leading Republican candidate for governor, sent out a statement saying Thrasher told him the results of the audit two weeks ago, on March 15, and he referred the matter to the Florida Department of Law Enforcement.

McCollum said the information from Thrasher "indicates there may have been criminal activity surrounding a former senior official of the Republican Party of Florida and a company called Victory Strategies LLC." McCollum then added that his office won't comment further.

The Florida Department of Law Enforcement says in a statement issued along with McCollum's and the party's statements that its Office of Executive Investigations is probing the matter and it is "unable to provide additional details at this time."

Greer, who was chosen party chief by Gov. Charlie Crist in 2007, was ousted in January amid a crescendo of protests from county-level party activists and big donors over the party's heavy spending and lackluster fundraising. Thrasher then ordered the audit.

Crist said Wednesday, "I find it terribly disturbing to hear, but I know the Florida Department of Law Enforcement will conduct a thorough and comprehensive investigation, as is only appropriate."

Former state Rep. Dennis Baxley, who is a member of Marion County's Republican Executive Committee, said Crist should share some blame for Greer and Johnson's actions.

"What's disturbing to me is that Gov. Crist gets away with disassociating himself when they're clearly his compatriots. He's the one that ramrodded them into place," Baxley said. "He has to take accountability for their actions. They're his agents."

Thursday, Greer filed a lawsuit against the state party, claiming it violated the terms of a secret severance agreement.

The lawsuit was filed in Seminole County.

Greer's attorney, Damon Chase, says the state GOP wants to smear his client. He says the party requested the criminal investigation to avoid paying Greer about $124,000 in consulting fees, plus health care.

Republican Party officials say the contract is not valid because Greer never signed the offer before it was revoked.

Greer's suit seeks unspecified financial damages for breach of agreement.