Prospects for Reclaiming Texas' US Congressional Districts

By Faith Chatham - CFO Texas Federal Blue Seed PAC - May 13, 2016

LINK to donate: bit.ly/5forTX

Democratic Nominees are running in 29 of Texas' 36 U.S. House Districts this year.A state where less than 8% of the Federal Delegation women but is over 51% of the population is female, Texas voters have the opportunity to add five more women to their Congressional delegation.

THE WOMEN
The Texas female Democratic Nominees who are challenging GOP incumbents for seats in Congress include:
Shirley McKellar PhD.
Dr McKellar is a retired officer in the US Army Nurse Corp A nurse clinician, McKellar led in the implementation of women's health services for the US Military in the European Theatre. Shirley is challenging GOP incumbent Louie Gohmert for the 1st Congressional Seat.

Tawana Cadien, RN.
Tawana is also a nurse clinician nursing administrator. She is one of the first graduates of the Thurgood Marshall School of Public Affairs to earn a Masters of Public Administration. Tawana is challenging GOP incumbent Mike McCaul for the10th District seat.

Jan McDowell, CPA. Jan is a community activist who understands the dollar and cents value of clean air and water. We need someone in Congress who can read a balance sheet and has understands the difference between short term cuts which cost more in the long run. Jan is challenging GOP incumbent Kenny Marchant for the 24th District Congressional seat.

Ruby Woolridge is challenging GOP incumbent Joe Barton for the 6th Congressional District Seat. Ruby is an ordained (Methodist) Minister who is currently serving at the Potter's House and is a public school teacher. She is a strong advocate for veterans. Her son Troy was injured on active duty in the middle east when he was in his twenties. He died of his injuries last year after years of rehab and disability. Ruby was his caretaker.

Kathi Thomas is a business owner and former county chair. She is challenging GOP incumbent Roger Williams for the 25th District Congressional seat.

Democratic Incumbents Congresswomen Shelia Jackson Lee (District 18) and Eddie Bernice Johnson (District 30) are running for re-election in "safe Democratic majority districts."

To donate directly with one click to the campaigns of these women congressional challengers and Hillary Clinton and the federal pac which supports progressive candidates running for Federal offices on the ballot in Texas go to: www.bit.ly/5forTX. You can also choose to give more or nothing to some and less to others. You are given the option of making a one time donation or splitting you gift into monthly installments

Link to Donate: www.bit.ly/5forTX…

THE LANDSCAPE

Texas is frequently dubbed a “red state” but demographically, it is much more blue than is reflected in the election results. A combination of apathy, savvy marketing/outreach by deep-pocketed special interests, and gerrymandering with an abandonment of the fight by most progressive donors has enabled some of the most obnoxious Texas politicians to win and retain seats in the state and federal government. Being under indictment for fraud, bribery or political corruption seems to be a plus for many of the State’s GOP incumbents. Yet there is a bright ray shining through the darkness in the Lone Star State.

Democrats turn out in higher numbers during presidential election years. All of the 11 current Democratic US House members except Congresswoman Eddie Bernice Johnson were initially elected in Presidential election year. Texas has 11 districts that are majority Democratic and one truly swing district (23). Most of the other districts have had no serious resources devoted by progressives in Congressional challenger races for many election cycles. In 2014 on average apx. 2 ½ cents per voter was all the funding received by non-incumbent Democratic nominees who were challenging GOP/TeaParty incumbents for Congressional seats in the primary and general election combined. For 2 ½ cents it is impossible to even effectively communicate with those who already know they want to vote for you, let alone convince others that you are the best candidate. Most GOP incumbents in Texas have gotten a free walk to re-election for decades. They amass large war chests and use them to help fund down-ticket candidates. The outcome of most election in Texas have little to do with “merit” or “integrity” and more to do with non engagement from the left and business “as usual” from the right.

Democratic "normal GOTV efforts" in Texas

Examination of voter rolls shows that as Democrats stop running in contested Democratic primaries for state and local offices, Democratic voters stopped voting,. Most did not become Republicans. As spending and outreach ceased by progressives, apathy won and more and more Texans appeared on the rolls as folks who used to vote but do not any more, In presidential election years more will show up than in other election years. The state Democratic Party has a long history of focusing more attention on internal party affairs than on prioritizing winning General Elections. However, there are some encouraging developments this year.

2016 is a year of opportunity for reclaiming seats from GOP incumbents in Texas. It will require funding. In 2015 Republican candidates for Congress in Texas received $4 to every $1 donated to Democratic Congressional Candidates, During the FEC financial report ending March 31, 2016 the gap had narrowed. Republican received $2.82 dollars for every dollar donated to Democratic candidates. The gap is still deplorable, but the trend is headed in the right direction. The quality of the Democratic Nominees is substantial. Their challenges can be addressed by generosity from donors — large and small. Outside money will not come gushing in to Texas Congressional races. However, Texans have the resource to fund these races. Small donors and deeper pocketed donors uniting with the unique synergy of the 2016 Presidential race and the impact of both of the top of the ticket candidates on the electorate can realistically turn additional districts blue.

Source: FEC.gov

Factors for Optimism

1. A push on increasing Democratic turnout for by mail ballots paid off in the 2016 Democratic Primary. Significant increases in Democratic voters by mail occurred in the counties which invested in the BY MAIL campaign. Historically, Republicans have had by mail margins high enough to claim numerous seats in Texas. This improvement removes the GOP/Tea Party’s advantage in several of Texas’ largest counties.

2. Texas State Law was changed allowing the State Party to hold primaries in counties without Democratic County Chairs. Glen Maxey worked tirelessly to get legislation passed which allowed every registered voter in Texas to vote in a Democratic primary this year even if there were no county chair in their county. Once the law was passed, Glen faced the monumental task of getting the paperwork filed and to recruiting workers and polling places in counties without a chair, Although the actual number of voters involved is rather small, the change is enormous. At the last SDEC meeting several new county chairs were sworn in who stepped up and volunteered to serve from counties where they previously had been unable to vote in a Democratic Primary. It is a constructive beginning. For decades Democrats have ignored most of the rural counties. Cumulatively, rural voters determine the outcome of many elections. To overcome the GOP incumbent advantage, reaching out and increasing Democratic turnout in rural counties is essential.

3. Demographic shift in population, age and income impacts the state. Texas’ white majority is dwindling. The Republican base is aging and dying off faster than the Democratic base in Texas. The percentage of Latino and Black Texans is increasing. Both Democratic and Republican parties try to enlist Hispanic voters. Republicans have skillfully used social issues to depress Hispanic voter turnout. In the 2014 Governor’s race many Hispanics were conflicted between their religious beliefs regarding abortion and the Republican hardline anti-immigrant posturing. A percentage of them simply stayed home. In 2016 Republican rhetoric repels and motivates many who stayed home to get involved. Blacks and Texans of Hispanic lineage are among Hillary Clinton’s most enthusiastic supporters. With Donald Trump at the top of the Republican ticket, it will be much easier to engage Tejano, Hispanic, Muslim and Black voters in Texas.

4. Hillary at the top of the Democratic ticket will draw more minority voters that Sanders. During the primary in Texas, despite the large number of older white women which remain a strong part of Clinton’s base, larger numbers of Blacks, Hispanics, and Asians turned out as delegates for Clinton at senatorial conventions than for Sanders. In the Tarrant (largest part) of Senate District 9, in the Clinton delegation:

60% minority; 40% whlte
60% female; 40% male
11% under age 36
14% LGBT
in the Sanders Tarrant Senate District 9:
74% white; 26% minority
59% male; 41% female
24% under age 36
18% LGBT

This is a snapshot of 3/4th of one urban Senate District (Tarrant 9). (Dallas Senate 9 did not break down their delegates demographically.)

Hillary attracts more minorities and women than Sanders. Hillary attracts young voters but Sanders attracts twice the number of younger voters. Hillary’s following among women is 1/3 larger than Sanders. Sander’s following among men is 1/3 larger than Clinton’s. Both resonate with LGBT voters. Hillary has fewer problems with minority voters than Sanders (74% for Clinton and only 26% for Sanders.)

With Clinton at the top of the ticket, the large minority population of Texas should place more races in play in the state if the “coat tail effect” carries over to down-ticket (especially Congressional) races. The party is working to enlist younger and minority voters into the Party. Older female voters remain the most loyal dependable voting block of Democratic voters. The majority of this “most loyal” voter demographic group are Clinton supporters. This is a good sign for down ticket candidates, especially for older, educated, highly qualified candidates who are challenging GOP incumbents.

Despite the spin that “Sanders is defining the issues”, there is solid evidence that Clinton delegates have more education than the majority of Sanders or Trump voters. Clinton supporters value “problem-solving” and pragmatic incrementalism. They trust her experience, the through vetting given her, and appreciate her ability to get policies and programs implemented. Many of Clinton’s supporters do not think that Bernie has changed Hillary’s positions substantially. They see her as a progressive political leader who has always worked to increase minority voter participation, fought for accessible affordable health care, denounced discrimination by championing the rights of women, minorities, LGBT and handicapped individuals throughout the world.

National Pattern


In the Primaries and Caucuses held thus far this year, more Republicans turned out in their primaries than Democrats in theirs in states where Sanders had more votes than Hillary. In the states which Clinton carried, she got more votes than the leading Republican and more Democrats turned out to vote than Republicans overall. This is a very good sign because she has carried more states than Sanders and she has carried larger states than Sanders. It is unlikely that she will carry Texas in the General Election. Having Cruz off of the ticket is beneficial. If she selects a young, Latino favorite son from Texas as her running mate, that may bring Texas into play. A Clinton/Castro ticket may not turn the state blue enough to garner the electoral votes from the Lone Star State, but the activity may be a shot-in-the-arm for some Congressional races and help Democrats gain a few additional seats in Congress in Districts the national pacs are not targetings as Red to Blue.

THE MEN

Texas has also nominated several strong, highly qualified Democratic men for Congress this year. In addition to the 8 Democratic Congressmen who are running for re-election, there are men running in 12 of Texas’ Congressional Districts. One district is a truly Democratic majority district (15). Congressman Hinojosa is retiring so that is an “open” seat in a majority Democratic District. Vicente Gongalez and Juan "Sonny" Palacios are in a run-off for the Democratic Nomination for US-TX 15 Congressional District on May 24th.

Former Democratic Congressman Pete Gallego is challenging far right-wing Tea Party incumbent Wm. Hurd for the seat in Texas’ only truly swing district.

The 23rd Congressional District has more land mass than any district in Texas. The land mass of 9 states will fit into this incredible Congressional District which runs from the outskirts of San Antonio to the outskirts of the City of El Paso. It includes National Parks and most of the Texas/Mexico border. Gallego has continued as a private citizen to work to further the interests of the people of the district.

Hurd has focused only on divisive religious positions and has ignored the economic and environmental needs of the District. Gallego, as a private citizen, is credited with bringing passenger air service back to a poorly served part of the district. Despite Gallego’s deplorable vote on the Three State Nuclear Waste pact while he was an incumbent, Gallego is much more of a champion for the District's National Park (Big Bend) than incumbent Hurd. Gallego has proven to be much more responsive to the needs of the people of the district than incumbent Hurd. This race is targeted by the DCCC as a Red to Blue District and will probably be the only non-incumbent challenger Congressional race in Texas to receive funding from the DCCC and the Democratic Majority PACs.

James Cargas qualifies as an environmental/developmental rock star. Cargas is one of our state’s leading pragmatic visionaries. An Oil and Attorney, James worked on Capitol Hill as an intern as an undergraduate and returned, after he graduated from the University of Michigan, during the Reagan administration while Jim Wright was Speaker of the House to serve as Press Secretary to a Michigan Democratic Congressman. He graduated from The American University’s Washington College of Law where he served as President of the Environmental Law Society and Article Editor of The American University Journal of International Law and Policy and The American University International Law Review) in 1992. During law school, he was law clerk to the Federal Energy Regulatory Commission. Admitted to practice law in Texas, West Virginia, Washington D.C, and Michigan, he represented large interstate pipeline companies before leaving the private sector to join the Clinton administration on the President’s Council on Sustainable Development, promoting clean wind and solar energy, hybrid vehicles and sustainable resource development. He left to work on the Gore Presidential campaign and returned to serve under Energy Secretary Bill Richardson. He was hired in 2008 by former Houston Mayor Bill White as the City of Houston’s energy counsel, and continued as counsel to Mayor Parker. During his stint with the City of Houston, Cargas has negotiated energy contracts and helped the City of Houston become recognized as the governmental entity that has purchased the most sustainable energy in the nation, exceeding the purchases of the DOD and EPA. Cargas is married to a medical research scientist doctor and is especially cognizant of the roadblocks facing medical research in the USA. Cargas is the Democratic Nominee challenging GOP incumbent John Culberson for Texas' 7th District seat in the U.S. House of Representatives.

Bill Matta, PhD is challenging GOP incumbent Bill Flores for the 17th District US Congressional Seat. Matta is one of three Democratic Nominees in Texas who are retired military officers with doctoral degrees. A navigator in the USAF, Matta served with NATO in Bosnia, at the US Air Force Academy and at the Pentagon. A graduate of UT Austin, Matta has pursued a dual career track, blending his military service with teaching. Currently he is the chair of the Linguistics, Speech and Engilsh at McLennan County Community College.

Mark Gibson JD is a retired Colonel and Brigade Commander with the US Army. He earned is Juris Doctorate from South Texas College of Law, and his Master’s in Strategic Studies from the U.S. Army War College in Carlisle, Pennsylvania. He earned his BBA in Management Information Systems from University of Houston, As a Senior IT Manager and small business owner, Mark Gibson, understands the challenges facing business owners. He fights for veterans and military families, is committed to fighting for equal rights for women, pledges to”push for absolute assurances of banning weapons from schools, synagogues or worship centers, shopping malls, stores, and our schools” and will fight for breaks for small businesses and term limits.

Gibson is challenging GOP incumbent Pete Olson for Texas' 22nd District Congressional seat.

Mike Cole, Democratic Nominee for Texas’ 14th US Congressional District running for U.S Congress in Texas. Cole is challenging GOP incumbent Randy Weber for the 14th US Congressional Seat. An educator, Cole’s struggle with onset juvenile diabetes gives him insight into medical challenges which reach far beyond what is normal for a young man. He is skilled at engaging others in projects that enhance and improve people’s lives.

He is running an energetic campaign against Randy Weber which involves college students and senior citizens.

The 14th is a coastal district. Challenged by natural disasters and the aftermath of BP’s Horizon Blowout/Oil Spill, the district requires diligent service by a Representative who will balance the economical developmental needs with the environmental challenges facing people of the district.

Mike Cole, Tawana Cadien, James Cargas and Pete Gallego are the Democratic Nominees who are positioned to give better service to the people of the Texas Gulf Coast and US Mexican Border. You can help them directly with one click using this link:
http://bit.ly/4TXCoastDs

To split your donation between the four coastal candidates and the federal PAC which supports progressive challengers for federal office on the ballot in Texas use this link http://bit.ly/4TXCoastDs

It is not necessary for Texans to live under the skewed worldview of the Tea Party and the state's GOP incumbents. We do not have to continue subjecting this nation and the world to the stupidity that passes between many Texas so-called public officials. It will not be easy, but it is definitely "worth it!" The key is setting aside defeatist attitudes, stepping forward and doing what we can when we can and enlisting and welcoming others to do what they can.

Citizens' Right to Run for Office Challenged by Bank C.E.O.'s Lawsuit

By Faith Chatham - Feb. 12, 2010
The right to compete and let the voters decide has been skewed by influence money. Now in Tarrant County, an independently wealthy candidate is using his ability to out-sue, out litigate, out spend on attorney's fees to chase his opponents out of the primary and/or drain-dry the resources of opponents.

Richard (Dick) N. Abrams filed for Justice of the Peace, Pct.6 in South Fort Worth against two other Democratic opponents. He challenged the petitions of his opponents claiming that all spaces on the form were not filled in or were incorrect. Abrams threatened to sue his opponents and the County Chair if the county chair did not remove their names from the primary ballot. One opponent, John Williams, was disqualified for filing for more than one office. Tarrant County Democratic Chair Steve Maxwell reviewed the challenge and ruled that Ms. Brooks had sufficient valid signatures of registered voters in the precinct to remain on the ballot. Abrams filed a law suit in Tarrant County District Court against Maxwell and Brooks, seeking and injunction to keep her name off the Primary Ballot and all his court costs and legal fees. All judges in Fort Worth are Republicans.

"It is absurd," said Harriet Irby, Ms. Brooks' treasurer. "I don't understand why a Democratic candidate would do this. There are no Democratic judges in Tarrant County. This matter will be settled in a Republican judge's courtroom. He knew that when he filed this suit!" She added: "He seems to be someone who likes to file lawsuits and has plenty of money to easily pay the legal costs. There are a number of them filed by him in recent months. He seems to win about half of them."

There are court records to support Irby's impression of Abrams. He sued Unity Mutual Life Insurance Company over what he claimed was a hand-shake agreement for commissions. When the ruling was that hand-shake agreements ae unenforceable, he appealed it from the U.S. Northern District of Illinois, Eastern Division No 99 C 3182 to the Seventh Circuit U.S. Court of Appeals. All rulings were that his alleged hand-shake agreement for commission on preneed funerals were non-enforceable.

Abrams' lawsuit against Tarrant County Democratic Chair Steve Maxwell and his opponent, Roy LaVerne Brooks, is worded to indicate intentions of appealing any decision which does not remove Ms. Brooks' name from the Democratic Primary Ballot all the way to the Texas Supreme Court (another all Republican body).

Mr. Abrams has established a pattern of using his financial prowess to threaten costly legal action in attempts to intimidate less affluent citizens from exercising their constitutional right to run for public office. At each stage, he threatens further legal battles. In the brief filed by his attorney in Tarrant County District Court further threats of lawsuits and costs if he does not win are included in # 4 on the last page: "Abrams' reasonable and necessary attorney's fees incurred through trial and through any appeal taken to the court of appeals and/or the Texas Supreme Court, as permitted by Chapter 37 of the Texas Uniform Declaratory Judgements Act, or as otherwise recoverable by contract, common law and/or statue;"
and "#5. Prejudgement and post-judgement interest, if any , as provided by law;"
and "#6. All cost of suit;"
and "#7. Such other and further relief, special or general, legal or equitable, to which Abrams may show himself to be justly entitled."

NEED TO STEP-UP LATE PRIMARY FUND-RAISING EFFORT


Roy LaVerne Brooks, former Vice Chair of the Texas Democratic Party, is a candidate for Justice of the Peace, Pct. 6 in Tarrant County. Roy's vision is to partner with the community to help prevent some of the situations which bring people into the JP Court. One of her opponents, a billionaire and C.E.O. of Surety Bank, filed a challenge on all of his opponents seeking to get their names removed from the ballot. Abrams alleges that they did not have enough valid signatures on their petitions. One candidate withdrew rather than to fight legal challenges.

The challenge against Roy LaVerne was reviewed by the Tarrant County Democratic Chair. The ruling was that she had sufficient names on her petition of registered voters in the precinct and her name remains on the ballot. Mr. Abrams was not satisfied with that ruling and threatened to sue the party chair and Roy LaVerne. He filed suit in District Court, asking for an injunction to keep Roy's name off the ballot and asking that she pay all his court costs should she lose. Since all judges in Tarrant County are Republicans, he knew that this Democratic Party election case would be tried in a Republican judge's courtroom. Due to snow on the original court date, Fri. Feb. 12th, the hearing has been rescheduled for Friday, Feb. 20, 12 noon in Room 236 of the Tim Curry Court Bldg. in Fort Worth.

In addition to Get Out the Vote and other campaign expense, she is now forced to hire an attorney to defend her right to run for office. Unlike her opponent, Roy LaVerne Brooks is not a woman of independent wealth. She is a hard-working Democratic activist, community organizer, who is employed as a hospice counselor.

Mr. Abrams has the right to pursue legal means, as do all citizens. He is not the only Tarrant County JP candidate to challenge his opponent this year. He is the JP candidate who has already filed lawsuits and refused to accept the ruling of the court this year. He is the one who said he'd sue instead of mediate and whose brief asks the court to have his opponent pay his cost up to and through appeals to the Texas Supreme Court if she loses. He is the candidate whose substantial wealth dwarfs that of his opponent. Just because he has the right to sue and the means to doesn't mean that suing is the right thing to do, or that it is fair for him to. Bigger, stronger "kids" can tell a weaker one what they can do and what they have done. It's intimidating when someone with a history of taking things to the mat has many more resources to arm and fight than you do. When you do something to show your strength to intimidate instead of seeking a fair resolution, that is bullying.

She has strong name recognition in the district and years of community service/activism. Many believe that Mr. Abrams knows that she will probably beat him if the election is fair and if she is given an equal opportunity to take it to the voters. He prefers to bully and sue his way, to attempt to keep his opponent enmeshed in court, attorney's offices and in last minute fundraising to pay court costs.

Mr. Abrams track-record in banking leaves questions about why he is pursuing election as Justice of the Peace. The Dallas Business Journal published an article about the sale of Surety Bank, a financial institution which Mr. Abrams served as C.E.O./C.O.B. from 2000-2007.

The former chairman of Surety Bank, Dick Abrams, remains one of the largest shareholders in Surety Capital Corp., Surety Bank's holding company.But he was barred in June by the Office of the Comptroller of the Currency from engaging in banking and leading the holding company.
The number of shares owned by Abrams is in dispute, but Surety's bankruptcy filings describe Abrams as one of the corporation's largest shareholders and notes that his son, girlfriend and family trust are also significant shareholders. Abrams could not be reached for comment.
Abrams stepped down on Oct. 1 as Surety Capital Corp's chairman. Weiner, another shareholder in the bank, took that role on the condition that Abrams promise not to sue him, Weiner said.
Says Thompson: "He volunteered to do the job that nobody else wanted."
Since then, Weiner has focused on getting the institution sold and getting investors' money out of the institution.
Surety Capital Corp. filed for Chapter 11 bankruptcy protection on Dec. 21.

This Fund Raising Appeal in support of Roy LaVerne Brooks is an appeal to stand up for the right of ordinary Americans to run for public office.

It is an appeal to stand with her against a man who is trying to bully and harass his way onto the General Election ballot instead of campaigning and letting the voters decide.

This is an appeal to help her defend this case in court and defend the right of all citizens to exercise their civil right to participate in the democratic process which is the foundation of our American system.

This is an appeal to let the Voters' Decide who they want as the Democratic Nominee for Justice of the Peace, Pct. 6.

Contributions of ANY AMOUNT are welcome. We welcome contributions as small as your weekly coffee money or as large as you can afford. If you can join us Saturday and show Roy LaVerne that you stand with her, we welcome your presence at the tea.

Contributions can be made securely on-line at BROOKS FOR JP6


THIS IS A CASE OF "I'll Drain You Dry in Court If My Challenge Doesn't Result in You Being Thrown Off of The Ballot."
If Mr. Abrams had a pristine registered voters petition list, we might think he was fighting over principle. However, his petition has more incomplete boxes than Ms. Brooks and many more names of people who live outside the district. If he wins and gets her thrown off the ballot on the grounds he claims in his brief, a counter-suit on the same grounds should result in him being removed from the ballot.

His financial resources are greater than the two other candidates in the race. (John Williams withdrew rather than face the challenge by Richard Abrams.

In June 2000 Richard N. Abrams Richard N. Abrams, Northfield, Illinois filed with the F.D.I.C. to acquire additional voting shares of Surety Capital Corporation, Fort Worth, Texas, and thereby indirectly acquire additional voting shares of Surety Bank, National Association, Fort Worth, Texas.

Surety had problems with the S.E.C. In the Sept. 12, 2001 Share Holder's Report Richard N. Abrams, C.E.O. wrote:

We entered into a formal agreement with the Office of the Controller of Currency in November, 1998. This Formal Agreement still remains in place, although the bank is currently in compliance with all requirements. Hopefully, we will be operating without this Formal Agreement next time I address the shareholders. However, due to the Formal Agreement, the bank can not pay dividends to the holding company. Therefore, we are unable to meet the holding company's financial obligations, i.e., debenture interest and operating expenses. I have guaranteed these payments for 2001. All loans made for this purpose are evidenced by a note payable which is convertible into stock of the holding company at $0.36 per share.

In return for meeting the Holding Company's obligations, Mr. Abrams and the board granted him (them) generous stock options. Surety's 2001 Stock Holder's Report showed Richard N. Abrams, age 60, as a Chairman of the Board, Director and C.E.O. since 2000. His bio at that time was:

RICHARD N. ABRAMS has served as a director of Surety Capital since May 2000 and was named Chairman of the Board of Directors and Chief Executive Officer in March 2001. He has served as Chairman of the Board and Chief Executive Officer of Funeral Financial Systems, Ltd. (a special purpose finance company that specializes in the funeral industry) since August 1985, and of Executive Offices, Ltd. (a shared office building) since October 1986. Mr. Abrams has also served as Chairman of the Board of FuneraLeasing, Ltd. (a leasing company that specializes in the funeral industry) since December 1998. Mr. Abrams is a certified public accountant. Mr. Abrams has served as a director of Surety Bank since March 2000.

It baffles many who are watching this race. Why would a man with Richard Abrams financial interest run for Justice of the Peace??? Few can envision him actually sitting in a Justice of the Peace courtroom five days a week listening to truancy and eviction cases? Why is he doing this?

Abrams grabs power in troubled by exercising stock options.
His relative, Rodney Abrams, also increased his bank stock.

Following an S.E.C. investigation on Surety Holding's insurance division, this notice was sent to Surety Bank Stock Holders (signed by Richard N. Abrams, C.E.O.):

We entered into a formal agreement with the Office of the Controller of Currency in November, 1998. This Formal Agreement still remains in place, although the bank is currently in compliance with all requirements. Hopefully, we will be operating without this Formal Agreement next time I address the shareholders. However, due to the Formal Agreement, the bank can not pay dividends to the holding company. Therefore, we are unable to meet the holding company's financial obligations, i.e., debenture interest and operating expenses. I have guaranteed these payments for 2001. All loans made for this purpose are evidenced by a note payable which is convertible into stock of the holding company at $0.36 per share.

Mr. Abrams acquired an option on stock at a fixed $0.36 per share which he could exercise after the price of the stock rose.

COMPENSATION OF DIRECTORS

Surety Capital's and Surety Bank's board of directors consist of the same members and both organizations hold meetings on the same dates. In 2000, the bank paid each director $500 for each bank meeting attended. In 2001, the cash compensation was stopped and each outside director now will receive 2,000 shares of unregistered common stock for each board meeting attended and 1,000 shares for each committee meeting attended.

We have adopted the 1996 Stock Option Plan for Directors and the 1997 Non-Qualified Stock Option Plan for Non-Employee Directors. Under the 1996 and 1997 Directors Plans, an aggregate of 250,000 shares of our common stock were set aside for issuance pursuant to the exercise of options granted thereunder. The 1996 Directors Plan is a formula plan pursuant to which annual options are automatically granted to our directors who are not our employees at fair market value. All options under the 1996 Directors Plan are non-qualified stock options, and vest one year following the date of grant. On the first business day of each calendar year, each non-employee director is automatically granted an option to purchase 2,000 shares of our common stock at 100% of fair market value on the grant date.

2000, each non-employee director received an option to purchase 2,000 shares of our common stock at an exercise price of $0.74 per share. The 1997 Directors Plan provided for the one time grant of 25,000 non-qualified stock options to directors who were not employees at fair market value. In 1997, each non-employee director received an option to purchase 25,000 shares of our common stock at exercise prices ranging from $4.18 to $5.375 per share. These options vest over five years.

We also adopted the 2000 Non-Qualified Stock Option Plan for advisory directors. Under the provisions of the plan, 100,000 shares were allocated for non-qualified stock options to advisory directors. Grantees are awarded 10-year options to acquire shares at the market price on the date the option is granted. The options vest and become fully exercisable based on a vesting schedule as determined by the compensation committee on the date of grant. On November 6, 2000, grantees were awarded options to acquire 28,000 shares of our common stock at $0.55 per share, which vest and become fully exercisable on November 6, 2001.

Abrams capitalized on the bank's situation:

In addition, in consideration for the extraordinary time and effort the members of the board of directors have given to the company and the bank, various members of the board were awarded shares of unregistered common stock at the August, 2001 board meeting. The awards were as follows: Mr. Abrams received 400,000 shares, Mr. Chappell received 60,000 shares, Mr. Bley received 30,000 shares, Mr. Kwentus received 15,000 shares and Mr. Morris received 10,000 shares. Mr. Abrams also received shares of restricted stock which will vest upon certain events. Pursuant to the grant, Mr. Abrams will receive 300,000 shares of common stock when the Office of the Comptroller of the Currency terminates the formal agreement entered into by Surety Bank prior to Mr. Abrams' affiliation; 200,000 shares if he remains as the Chief Executive Officer until the end of the 2002 fiscal year; and he will receive one share of common stock for every $3.00 of net profit realized by Surety Bank, as determined on a quarterly basis with a maximum of 400,000 shares over any two year period.

The following table shows beneficial ownership of shares of our common stock by all current directors, nominees for director and named executive officers individually, and together with all current executive officers of the Company as a group, as of August 28, 2001:

Amount and
Name of Individual Nature of
or Number of Beneficial Percent
Persons In Group Ownership (1) of Class (2)
--------------------------------------------------------------------------------
Richard N. Abrams 1,266,744(3) 16.2%

Charles M. Ireland 44,583(4) *

Garrett Morris 166,749(5) 2.2%

David F. Chappell 115,555(6) 1.5%

Thomas J. Kwentus 17,777 *

Guy J. Butts 0 --

Milton M. Bley 99,000(7) 1.1%

All directors and 1,710,408(8) 21.6%
executive officers as
a group (7 persons

-------------------- * Less than 1% of all the issued and outstanding shares of common stock.

(2) Based on 7,624,511 shares of common stock issued and outstanding at August 28, 2001, as adjusted for shares convertible or exercisable within sixty (60) days which are deemed outstanding for a specific stockholder pursuant to Rule 13d-3(d)(1) under the Securities Exchange Act of 1934.

(3) Includes 184,444 shares of common stock which are convertible from notes and 2,000 shares which Mr. Abrams has the right to acquire within sixty (60) days from the date hereof. Also includes 65,100 shares owned by Funeral Financial Systems, Ltd., a company under the control of Mr. Abrams. Does not include the restricted stock described on page 5.

(4) Includes 33,333 shares of common stock which Mr. Ireland has the right to acquire within sixty (60) days from the date hereof.

(5) Includes 19,000 shares of common stock which Mr. Morris has the right to acquire within sixty (60) days from the date hereof.

(6) Includes 55,000 shares of common stock which Mr. Chappell has the right to acquire within sixty (60) days from the date hereof.

The following table sets forth certain information with respect to our stockholders who were known to be beneficial owners of more than five percent (5%) of the issued and outstanding shares of the common stock as of August 28, 2001, except for Richard N. Abrams, whose ownership interest is disclosed in the preceding table.

--------------------------------------------------------------------------------
Name and Address Amount and Nature Percent
of Beneficial Owner of Beneficial of Class(2)
Ownership(1)
--------------------------------------------------------------------------------
Carlson Capital, L.P. (3) 519,300 6.8%
301 Commerce Street, Suite 3300
Fort Worth, Texas 76102

Pine Capital Management, Incorporated(4) 528,647 6.9%
353 Sacramento Street, 10th Floor
San Francisco, California 94111

Cullen W. Turner(5) 471,377 6.2%

Rodney A. Abrams(6) 575,055 7.5%

With his relative, Rodney Abrams' shares, Richard N. Abrams controlled more Surety stock than the rest of the board combined by August 2001

Questions about his employment status

In January and February 2007 he made Federal Campaign contributions and listed "retired" as his employment status on the donor cards. In March 2007 he lists CEO Mortuary Financial on another Federal Campaign donor card. On June 11, 2007 the Comptroller of the Currency issued a cease and desist order to Surety Bank, National Association, Fort Worth, Richard N. Abrams, C.E.O.

S.E.C. Investigations and Cease and Desist Orders
In 2001, Surety's S.E.C. difficulties were attributed to his predecessor. However, in 2007 when Surety was issued a Cease and Desist Order by the Comptroller of the Currency, Richard N. Abrams has been at the helm of Surety Bank of Fort Worth and Surety Holding for seven years. Difficulties could no longer be attributed to any failure of leadership other than his own. He was the major stockholder and controlled more voting shares than any other member of the Board.