Topeka Arthur Laffer, the supply-side economist who was hired by Gov. Sam Brownback to help shape the governor's tax overhaul, is being sued in Texas for allegedly being part of a Ponzi scheme, according to reports.
Laffer is chairman of Laffer Associates of Nashville, Tenn., and was an economic adviser to former President Ronald Reagan.
Brownback's office has said Laffer is being paid $75,000 to help with the governor's tax reform measure the governor unveiled last week. Laffer is scheduled Thursday to speak with Kansas legislators on the tax plan.
In the lawsuit, Laffer is accused of lending his name to fund managers who diverted $3.1 million from investors in what plaintiffs call a Ponzi scheme.
The fund managers are David Wallace, Costa Bajjali and the Laffer Frishberg Wallace Economic Opportunity Fund.
Courthouse News Service reports that an employee at Laffer Associates said that Laffer had severed ties with the Laffer Frishberg Wallace Economic Opportunity Fund.
According to the CNS report from Jan. 11: A Laffer Associates employee told the service in a telephone interview that Laffer has severed ties with the Laffer Frishberg Wallace Economic Opportunity Fund.
"He was affiliated with them at one time, but he's not anymore," the employee told the agency, according to reports.