NAMES IN THE NEWS : Wife Sues W.Va. Governor in Fraud
Gov. Gaston Caperton’s estranged wife today sued him and five other parties for $12 million, alleging securities fraud.
Dee Caperton charged that she was forced to sell her stock in the Caperton family’s insurance and investment business to her husband in 1988 for $2.98 million, below fair market value, to shield him from political harm.
The lawsuit, filed in federal court, also names state Sen. Lloyd Jackson, Caperton’s top political adviser; Tom Graff, Caperton’s legal adviser, and three Caperton-controlled companies.
The lawsuit said Jackson told Dee Caperton while she was a member of the state House in 1986-88 that she was violating a law barring elected officials from profiting from state contracts. At the time, a Caperton-controlled company held a $3-million contract with the state Public Employees Insurance Board, which handled medical benefits for state employees.
According to the suit, Jackson told Dee Caperton that she was about to be indicted and that she “must act quickly to diminish the political damage to her husband and herself.” Caperton at the time was a candidate for governor.
No indictments were ever returned.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
