Mike Ross
When Democratic Congressman Mike Ross of Arkansas and his wife sold their pharmacy business to a local chain two years ago, they received substantially more for the property than its assessed value, according to an investigation by ProPublica and Politico. At the time of the sale in 2007, the Rosses’ business—both property and building—were valued at $263,000. But USA Drug, based out of Prescott, Arkansas, paid the Blue Dog Democrat and his wife, Holly, $420,000.
Adam Guthrie, chairman of the county Board of Equalization and the only licensed real estate appraiser in Prescott, told ProPublica the amount was surprising, given local property values. “You can buy half the town for $420,000,” said Guthrie.
But that’s not all the Rosses received for Holly’s Health Mart. They also between $500,000 to $1 million for the pharmacy’s assets, and Holly Ross was paid another $100,001 to $250,000 for signing a non-compete agreement. Altogether, the couple made between $1 million and $1.67 million on the deal.
And USA Drug owner Stephen L. LaFrance Sr. gave Ross a $2,300 campaign contribution two weeks after the sale was completed.
In response to the story, the congressman—who has been a spokesman for conservative Democrats’ opposition to some health care reform ideas—labeled the investigation “gotcha politics” and added that “it is a shame serious debate on reform has, once again, fallen off course.”
-Noel Brinkerhoff
Rep. Mike Ross Raises Eyebrows With Healthy Haul (by Marcus Stern, ProPublica)
Rep. Mike Ross Responds to ProPublica-Politico Investigation of Pharmacy Sale (ProPublica)
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