As is appeared in the Houston Chronicle
on Oct. 10, 2002

Ex-lottery director files slander suit against Perry's staff
Associated Press

AUSTIN - Former Texas Lottery director Linda Cloud filed a slander and defamation lawsuit today against members of Gov. Rick Perry's office and campaign staff, accusing them of lying and covering up what they knew about a harrassment investigation of a former lottery official.

Cloud resigned last month after admitting to lawmakers that she had known about the investigation of former commissioner Walter Criner and had talked about it with Perry's office.

Criner was a Perry appointee. Cloud had previously told a newspaper that she did not have any knowledge of the investigation.

Cloud lawsuit filed in Travis County District Court. It accuses Perry's chief of staff, Mike McKinney, and spokesman Gene Acuna, of lying when they denied that Cloud had ever discussed the issue with Perry's office.

The lawsuit also accuses Perry campaign spokesman Ray Sullivan of joining McKinney and Acuna in a conspiracy to defame and slander Cloud and to intimidate her.

Calls to the governor's office and Perry's campaign were not immediately returned.

Cloud went to work for the Texas lottery in 1992 and was hired as its executive director in 1997. Her annual salary was $105,000.

The lawsuit claims the defendants damaged Cloud's reputation and that she has suffered shame and embarrassment.

The lawsuit seeks to recover monetary damages, including lost wages and benefits.

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As is appeared in the Corpus Christi Caller Times
on Oct. 10, 2002

Former lottery director files defamation suit against Perry staff
By JIM VERTUNO Associated Press Writer
October 10, 2002

AUSTIN- Former Texas Lottery director Linda Cloud sued Gov. Rick Perry's chief of staff and two aides Thursday, accusing them of lying and covering up what they knew about a harassment investigation into a former lottery official.

Cloud resigned last month after telling lawmakers that she knew of the investigation into former Texas Lottery Commissioner Walter Criner and had talked about it with Perry's office months earlier.

Criner was a Perry appointee. Cloud had previously told a newspaper that she did not have any knowledge of the investigation.

Cloud's slander and defamation lawsuit was filed in Travis County District Court. It accuses Perry's chief of staff, Mike McKinney, and spokesman Gene Acuna, of lying when they denied that Cloud had ever discussed the Criner investigation issue with Perry's office.

The lawsuit also accuses Perry campaign spokesman Ray Sullivan of joining McKinney and Acuna in a conspiracy to defame and slander Cloud and to intimidate her.

Calls to McKinney, Acuna and Sullivan were not immediately returned to The Associated Press.

Criner resigned on Feb. 27, three weeks after lottery audit manager Sharon Johnson accused him of harassing and bruising her during a lunch meeting in Houston.

In a March interview, Cloud denied any knowledge of the accusations. "I don't know anything about any complaints," she told the Fort Worth Star-Telegram then.

Cloud also said she had never discussed the matter with Perry's office.

But last month, Cloud was asked about the incident at a legislative hearing. She replied that her staff told her about the Criner incident shortly after it happened in February, and that she spoke with the governor's office about it.

Perry has said he was unaware of the incident until being alerted to it by the newspaper's article a month after Criner resigned.

In a Sept. 27 story by the Star-Telegram, McKinney said that he and Cloud had never discussed Criner.

"I wouldn't do that," McKinney was quoted as saying. "Frankly, she's hired help. He was on the board. No matter what, I wouldn't talk to her about that."

Acuna also said the subject of any allegations against Criner never came up in Cloud's discussions with the governor's office.

In sworn statement filed with her lawsuit, Cloud says she first was told of the complaint against Criner on Feb. 11 and that she met with McKinney on Feb. 27.

According to Cloud, McKinney told her "Ms. Cloud this meeting never happened. What we say in this room stays in this room," and then discussed the case in detail.

Cloud said Sullivan was in the room during the meeting but doesn't remember him saying anything.

Cloud said she felt threatened by McKinney to "keep quiet" and that he told her, "Ms. Cloud, most people think I am a real nice man, but I'm not. I'm meaner than a snake and I always get even."

According to the lawsuit, McKinney also insinuated that lottery officials should back off an investigation of Criner complaint because the attorney general's office was already handling it.

Cloud said she told her staff about the meeting. She later lied to the newspaper and said she only knew about the Criner investigation from news accounts.

"I followed his instructions as a good 'team player' against my better judgment," but said she refused to lie when questioned under oath before lawmakers.

Caught on the previous lie, Cloud resigned the next day, giving up her $105,000-a-year job. First hired at the lottery in 1992, she became executive director in 1997.

Cloud's lawsuit said she planned to stay at the lottery until retirement.

The lawsuit claims the defendants damaged Cloud's reputation and that she has suffered shame and embarrassment.

Cloud says her resignation had "significant impact" on her state benefits and her ability to consult with other state lotteries.

The lawsuit seeks to recover monetary damages, including lost wages and benefits.

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As is appeared in the Ft. Worth Star Telegram
on Oct. 10, 2002

Ex-lottery director Cloud names Perry
aides in lawsuit
By JOHN MORITZ
Star-Telegram Austin Bureau

AUSTIN - The former head of the Texas Lottery on Thursday accused Gov. Rick Perry's chief aide of lying and orchestrating a cover-up about the investigation of allegations that a state lottery commissioner had harassed an employee during a business trip earlier this year.

In a slander and defamation lawsuit filed against Perry's chief of staff, Mike McKinney, and two other senior advisers to the governor, former Lottery Commission Director Linda Cloud said she was ordered not to discuss the events that prompted Lottery Commissioner Walter Criner to resign Feb. 27.

Criner, who was appointed to the three-member panel by Perry, was accused by a female lottery employee of making sexually explicit comments during a trip to Houston earlier in the month. The employee also said Criner had bruised her arm and wrist during the lunchtime meeting.

Cloud said she was made aware of the specific allegations against Criner during a Feb. 27 meeting with McKinney but was sworn to secrecy. When contacted in March by the Star-Telegram, Cloud said she knew nothing about the matter or why Criner had resigned.

During the meeting, Cloud says in an affidavit that accompanies the lawsuit, that McKinney suggested that the lottery commission investigation into the allegations against Criner should be dropped and left to the attorney general's office. But she also said that no investigators from that office had contacted her or any other lottery officials to discuss the Criner matter.

"The first words from Dr. McKinney's mouth were, `Ms. Cloud, this meeting never happened. What we say in this room, stays in this room. " Cloud said in her affidavit. Cloud resigned Sept. 26, one day after she told a legislative panel during sworn testimony that she had lied to the newspaper about the events.

That same day, McKinney told the Star-Telegram that he had not discussed the Criner matter with Cloud because "she's hired help. He was on the (lottery's) board. No matter what, I wouldn't talk to her about that."

Cloud lawsuit was filed Thursday afternoon in state district court in Travis County. It accuses McKinney and spokesman Gene Acuna of lying when they denied that Cloud had ever discussed the issue with Perry's office.

The lawsuit also accuses Ray Sullivan, the communications director for Perry's gubernatorial campaign, of joining McKinney and Acuna in a conspiracy to defame and slander Cloud and to intimidate her.

Kathy Walt, the governor's spokeswoman, said she would not comment on the lawsuit before she had seen it.

John Moritz, (512) 476-4294

jmoritz@star-telegram.com

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Related Stories

The news accounts as they appeared in the Ft. Worth Star Telegram. Click here.

My first report, on March 18, 2002, regarding Criners resignation. Click here.

My comments regarding Ms. Cloud's resignation. Click here.

Click here to see other comments posted last March 2002 -
(It's in blue italics under Commissioner Clowe's opening statement.)