Echoing some national media outlets, Newsradio 850 KOA radio host “Gunny” Bob Newman stated on his March 7 show that Illinois senator and Democratic presidential candidate Barack Obama is embroiled in “scandal” over having purchased stock in two companies financed by some of his primary political contributors. Newman omitted mention that The New York Times, which first reported the story, concluded there is no evidence of impropriety on Obama's part.

As Media Matters for America noted, a March 7 Times article reported that Obama “bought more than $50,000 worth of stock in two speculative companies whose major investors included some of his biggest political donors.” And while MSNBC News Live anchor Contessa Brewer suggested that the story represented Obama's “first real scandal,” the network, like Newman, omitted the Times' conclusion that "[t]here is no evidence that any of [Obama's] actions ended up benefiting either company during the roughly eight months that he owned the stocks." As Media Matters further noted, Newsweek senior White House correspondent Richard Wolffe, appearing on MSNBC, questioned whether the story qualified as a “scandal.”

Without providing any reference to the original Times story, Newman asserted that Obama's purchase of the stocks constituted a “kickback” and charged that Obama “saw a chance to help some contributors with your tax dollars, and he took that chance.” Newman continued his rant by saying, “There is, of course, no move yet from the Senate ethics committee, run by Democrats, to investigate Obama and his latest scandal,” then asked, “Do you want him investigated? If you did before, do you still like him as a presidential candidate?”

The investments in question were shares of stock in two companies financed by some of Obama's primary political contributors. One of the companies was developing a drug to treat avian flu, and Obama has pressed for more federal spending on that illness.

While Newman noted Obama's contention that he was unaware of the specifics of his interests in the companies, as they were acquired through a blind trust arrangement, Newman nonetheless implied deceit, stating, “It must be some sort of weird coincidence that of the millions of companies Obama could invest in, his broker, without Obama knowing it, just happens to select two companies that help gather a huge amount of money for his campaigns.” Newman did not point out, as the Times did, that when Obama learned of the interests, he “decided to sell the stocks ... at a net loss of $13,000.” Newman also failed to note that “Senate ethics rules do not prohibit lawmakers from owning stocks,” but mandate “that lawmakers should not take legislative actions whose primary purpose is to benefit themselves.” It therefore does not appear that Obama has broken any Senate rules.

The Times also reported that the company involved with avian flu-treating drugs, AVI BioPharma, is also involved in “developing medicines in a number of other areas,” and that "[c]ompany officials said they never talked to the senator about his work on avian flu." Moreover, AVI BioPharma “has not received any federal money for its avian flu research.”

This is not the first time Newman dubiously has accused Obama of being embroiled in a “scandal.” As Colorado Media Matters noted, Newman also asserted that Obama was involved in a “shady land deal with a mansion he bought from Tony Rezko for a gigantic discounted price.” But as the Associated Press reported on November 17, 2006, regarding the transaction, “Obama ... [has not] been accused of wrongdoing.”

Additionally, claiming he had “more on Mr. Obama,” Newman called the senator a “charlatan” and blasted him for purportedly “paint[ing] himself to be some sort of civil rights leader and icon” during a recent appearance in Selma, Alabama, commemorating a historic 1965 civil rights march. But in so doing, Newman ignored Obama's narrative in Selma. Rather than seeking credit as a civil rights “icon,” Obama in fact gave credit to a number of African-American leaders present, noting that his “very existence might not have been possible had it not been for some of the folks here today.” Obama further observed in his speech, “I'm here because somebody marched. I'm here because you all sacrificed for me. I stand on the shoulders of giants.”

From the March 7 broadcast of Newsradio 850 KOA's The Gunny Bob Show:

NEWMAN: So, here's what happened. Taking the initiative -- because you don't want to be seen as a slacker on your first term in the Senate -- old Barack Obama invested 55 thousand dollars -- and he's got plenty of money; he's very, very rich -- in two speculative companies that just so happened to be two of his biggest campaign supporters. Such as by raising hundreds of thousands of dollars for his campaign. This is called a kickback, in case you were wondering, but the best part is how Obama is claiming he didn't even know he had invested in these two companies. He's got so much money, he didn't even know where his money was going. He says the investments were made by his broker as part of a quasi-blind trust. It must be some sort of weird coincidence that of the millions of companies Obama could invest in, his broker, without Obama knowing it, just happens to select two companies that help gather a huge amount of money for his campaigns. I don't know much about oddsmaking, but what do you suppose the odds of that were? An Obama spokesman says that Obama didn't have any clue where his money was going and that he sold the stocks in 2005 for a 13 thousand dollar loss, which no doubt Obama wrote off on his taxes. But it gets better. Obama invested five thousand dollars in early 2005 in a biotech firm developing a drug to treat bird flu, which some people are worried about. Two weeks later, what does Obama do? He leads a Senate push to get the Senate to spend lots more money on fighting bird flu. In other words, he saw a chance to help some contributors with your tax dollars, and he took that chance. Plus, he invested in the company he wanted to receive tax dollars. There is, of course, no move yet from the Senate ethics committee, run by Democrats, to investigate Obama and his latest scandal. Do you want him investigated? If you did before, do you still like him as a presidential candidate? Do you take offense that he thinks you are so stupid, you'll buy his farcical explanation that it was all just a coincidence. We asked him to come on The Gunny Bob Show, but have yet to get a definitive answer from his people.

[...]

NEWMAN: Oh, but wait; we do have more on Mr. Obama. This past weekend he made a speech in Selma on the anniversary of the 1965 civil rights march across the bridge there, that painted himself to be some sort of civil rights leader and icon. Mr. Obama was 4 years old when that march happened, and as a child he lived a life that was quite pleasant in places like Hawaii and Indonesia. This kid never wanted for anything. This guy is in no way a civil rights leader and has never wanted for much of anything since he was born, frankly, when it comes to material things. Just because you're half African-American and in the Senate does not qualify you as a civil rights leader or icon. This man is a charlatan. But he could be our next president despite the scandals and -- scandals and despite his lack of qualifications.