
Florida State Rep. Jennifer Carroll, R-Jacksonville
In this week’s news story, “Reversal of Fortune,” Folio Weekly examines how a number of businesses became certified through the Jacksonville’s Small and Emerging Business program even though they didn’t seem to meet program qualifications.
Among those business owners who were initially rejected but subsequently certified was a prominent Jacksonville public official — Florida Rep. Jennifer Carroll (R-Jacksonville). The JSEB program rejected Carroll because a staff examiner said her personal net worth exceeded the program’s $605,000 limit. Carroll appealed the decision, explaining how she was really worth only half of what it first appeared.
Carroll’s explanations to JSEB of her true net worth only add confusion to a story about Carroll’s finances that Folio Weekly contributing writer Susan Clark Armstrong first delved into in 2006. Armstrong tried to make sense of the financial disclosure forms that Carroll filed with the Florida Commission on Ethics between 2002-2005. During that period, Carroll’s net worth jumped all over the place, from $23 million in 2004 to $202 million in 2005. Carroll explained to Folio Weekly then that she had made an error in 2005, and she did amend her state report for 2005, to reflect a net worth of $2.02 million.
Despite that correction, Carroll’s 2006 answers about her fluctuations in fortune and her actual net worth don’t correspond with what she reported to the city that same year as she sought JSEB certification.
The JSEB program initially rejected Carroll’s application because she reported her net worth as $2 million on her amended 2005 disclosure form. In a letter to Ivy Johnson, head of the city’s JSEB program, Carroll explained that on her 2005 disclosure form, she had mistakenly included assets that belonged solely to her husband, Nolan. She said a legal advisor from the state told her she should not have included her husband’s assets in her calculations. After subtracting his assets, Carroll said her net worth as of September 2006 was $429,932 – which qualified her as a JSEB business.
But the explanation directly contradicts what Carroll told reporter Armstrong that her “actual net worth” was in the first week of November 2006 — about $2.3 million.
Reviewing Carroll’s disclosure forms from 2002-2008, is a wild ride. The value of Carroll’s personal assets took a big hit between 2004 to 2006. From that height of $23 million in 2004, the value of her household goods and valuables plummeted to $2 million in 2005, then to a mere $130,000 from 2006 through 2008. It’s the declining worth of those valuables, not the fact that she opened two hair salons or the income from her consulting business, that seems to account for her widely-ranging fortunes.
But it’s impossible to decode the method Carroll used to compute her net worth. She reported her net worth at $397,200 in 2002, even though she listed her household goods and vehicles at $700,000. There’s no way to determine how the assets, liabilities and net worth are related, and simple addition and subtraction doesn’t account for it. In 2004, Carroll reported her net worth as $23 million — the same as the value of her personal valuables. She seemingly didn’t count her $60,000 income from her work as a legislator and from her Navy retirement in computing her net worth, nor did she report any income from her consulting business.
When speaking to Folio Weekly in 2006, Carroll never mentioned the inclusion of her husband’s assets as the reason for the errors on her financial disclosure form. She explained the increase in her fortunes was due to the two hair salons she bought for $1 million cash, with an inheritance. She also told Folio Weekly the salons were making money, although she reported no income from them on her financial disclosure forms in 2005 and told Johnson she would lose money if she sold them. Although Carroll didn’t report any income from her consulting business, she told JSEB that the company earned $85,809 in 2004 and $331,334 in 2005.
But the prime reason for the confusion over her assets wasn’t her fuzzy math or her incorrectly filled-out forms. It was the fault of Folio Weekly.
“Recently in the Folio Weekly newspapers listed some information that was not factual about my net worth,” wrote Carroll in a letter to Johnson on Nov. 9, 2006, “and this letter is my response to the erroneous information presented by the paper.” (Most of the information Armstrong used in her report came from financial statements that Carroll herself submitted to the state.)
Coincidentally, Carroll’s net worth and assets dropped dramatically after 2005. Following her appeal, Carroll’s consulting business, 3N & JC Consulting, was certified as an African-American-owned JSEB in January 2007. Subsequently, Carroll has reported to the state that her net worth was $520,000 in 2006 and 2007, and estimated the worth of personal at $130,000. In December 2008, Carroll reported that her net worth dropped to $206,783, although her considerably-depreciated valuables remain steady at $130,000. Although she fought for the JSEB certification, Carroll’s firm hasn’t been awarded any contracts with the city of Jacksonville in the past two years. (More to come on responses to public records requests regarding any Carroll contracts from the city’s independent authorities.)
— Posted by Susan Eastman