Chipman Flowers Jr.

{{short description|American lawyer}} {{Use mdy dates|date=April 2024}} {{Infobox officeholder | name = Chipman Flowers Jr. | image = Chip Campaign Official Photo.jpeg | order = | office = Treasurer of Delaware | term_start = January 2, 2011 | term_end = January 5, 2015 | governor = Jack Markell | predecessor = Velda Jones-Potter | successor = Ken Simpler | party = Democratic | birth_date = {{birth date and age|1974|12|27}} | birth_place = Honolulu, Hawaii, U.S. | death_date = | death_place = | spouse = | alma_mater = University of Pennsylvania<br />Georgetown University Law Center<br />Harvard Kennedy School | occupation = Politician, attorney, business owner }}

'''Chipman L. Flowers Jr.''' (born December 27, 1974, in Honolulu, Hawaii) is an American politician, attorney and business owner who served as the treasurer of the state of Delaware from 2011 to 2015. A member of the Democratic Party, Flowers became the first African American to win a statewide election in Delaware when he was elected treasurer in November 2010 at the age of 35. At the time, he was Delaware's youngest statewide elected official. He is currently the President and Managing Member of The Flowers Counsel Group, LLC, a law firm he founded in 2006,<ref>{{cite web|title=Flowers Counsel Group Firm Profile|url=http://flowerscounselgroup.com/index.php?page=firm-profile|access-date=February 18, 2014}}</ref><ref>{{cite web |url=http://www.flowerscounselgroup.com/ |title=Home |website=flowerscounselgroup.com}}</ref> and serves as Deputy Legal Counsel of the Massachusetts Democratic Party.

== Early life and education == Flowers is the youngest child of Ltc. Chipman L. Flowers Sr., a retired Army officer, and C. Jean Johnson Flowers, a former teacher and guidance counselor for the U.S. Department of Defense Dependent Schools.<ref>{{cite news|last=Carlisle|first=Jackie|title=Tuskegee's Flowers family juggles great loss and triumph in 2011|url=http://www.thetuskegeenews.com/articles/2011/02/10/news/doc4d52ec7540524029892743.txt|access-date=February 18, 2014|newspaper=The Tuskegee News|date=February 10, 2011}}</ref><ref name="Chip Flowers">{{cite web|title=Chip Flowers|url=http://www.bloomberglink.com/people/chip-flowers/|publisher=Bloomberg|access-date=February 6, 2014|archive-url=https://web.archive.org/web/20140222045036/http://www.bloomberglink.com/people/chip-flowers/|archive-date=February 22, 2014|url-status=dead}}</ref> Flowers' father was commissioned by General Daniel "Chappie" James, the nation's first African-American four-star general officer in the United States.

== Early life == As the son of a military officer, Flowers traveled extensively in his youth, attending public schools in Dallas, Texas, Lawton, Oklahoma, and Pittsburgh, Pennsylvania. He attended middle and high school in Italy while his father was stationed overseas. He is a graduate of Vicenza American High School in Vicenza, Italy. He graduated from the University of Pennsylvania in 1996, earning a bachelor's degree in economics, and then attended Georgetown University, where he earned his Juris Doctor degree and a Master of Business Administration in 2000. While attending Georgetown, Flowers worked at the A. Philip Randolph Institute, the Congressional Joint Economic Committee and in the White House Office of Political Affairs during the Clinton administration.<ref name="Chip Flowers"/>

Flowers later studied at the Harvard Kennedy School where he earned a Master of Public Administration and received the Don K. Price Award for academic excellence and public service.<ref>{{cite web|title=Chipman Flowers Jr., Esq. Inducted into Cambridge Who's Who Executive, Professional and Entrepreneurial Registry|url=http://www.24-7pressrelease.com/press-release-rss/chipman-flowers-jr-esq-inducted-into-cambridge-whos-whoexecutive-professional-and-entrepreneurial-registry-66900.php|publisher=24/7 Press Release|access-date=February 18, 2014}}</ref>

== Career == After graduating from Georgetown, Flowers began his legal career in Delaware in the Wilmington office of Skadden, Arps, Slate, Meagher & Flom, LLP, where he worked as a mergers and acquisitions attorney.<ref name="bloomberglink.com">{{cite web|title=Chip Flowers|url=http://www.bloomberglink.com/people/chip-flowers/|publisher=Bloomberg|access-date=February 18, 2014|archive-url=https://web.archive.org/web/20140222045036/http://www.bloomberglink.com/people/chip-flowers/|archive-date=February 22, 2014|url-status=dead}}</ref> He served as chairman of the Multicultural Judges and Lawyers Section of the Delaware State Bar Association. Flowers worked as the Chief Democratic Analyst for ''Delaware Tonight'', a nightly news program on WHYY-TV, where he served until the show was cancelled.<ref name="bloomberglink.com"/>

In 2006, Flowers [https://www.linkedin.com/in/chipflowers founded] Flowers Counsel Group, LLC, a corporate law firm that specializes in mergers and acquisitions and procurement law. The firm, which is one of the region's largest minority-owned corporate law firms, provides corporate purchasing services for international and Fortune 500 companies, as well as the nation's leading academic institutions and has represented clients in transactions totaling in excess of $1 billion.<ref name="bloomberglink.com"/>

== Treasurer of Delaware ==

=== Campaign and election === In 2010, after a largely self-financed campaign, Flowers won the Democratic primary for Delaware State Treasurer against incumbent Velda Jones-Potter, who was appointed by Governor Jack Markell to serve the remainder of his term, with 54.3 percent of the vote. His platform, entitled “The Flowers Framework for Restoring Prosperity,” included a "Financial Warning System" that aimed to categorize economic conditions using a color scheme.<ref>{{cite web|last=Flowers|first=Chip|title=The Flowers Framework for Restoring Prosperity|url=http://treasury.delaware.gov/wp-content/uploads/StateTreasurerFlowersFramework.pdf|archive-url=https://web.archive.org/web/20111117211943/http://treasury.delaware.gov/wp-content/uploads/StateTreasurerFlowersFramework.pdf|url-status=dead|archive-date=November 17, 2011|publisher=Delaware State Treasury|access-date=February 20, 2013}}</ref><ref>{{cite web|title=State of Delaware Primary Election 2010 Official Results|url=http://elections.delaware.gov/archive/elect10/elect10_Primary/html/election.shtml|archive-url=https://web.archive.org/web/20101013065242/http://elections.delaware.gov/archive/elect10/elect10_Primary/html/election.shtml|url-status=dead|archive-date=October 13, 2010|publisher=Delaware Department of Elections|access-date=February 20, 2013}}</ref> Additionally, Flowers proposed a "Hometown Tax Credit" that encouraged businesses to hire from Delaware schools.<ref>{{cite news|title=Chip Flowers Ready To Serve Delaware's Middle Class With His 'Flowers Framework' Plan|url=http://www.onlineprnews.com/news/44258-1278005210-chip-flowers-ready-to-serve-delawares-middle-class-with-his-flowers-framework-plan.html|access-date=February 18, 2014|date=July 1, 2010}}</ref>

In the general election in November 2010, Flowers defeated Colin Bonini, a three-term Republican state senator from the Dover area, 153,203 to 147,031.<ref>{{cite web|url=http://elections.delaware.gov/archive/elect10/elect10_General/html/election.shtml|archive-url=https://web.archive.org/web/20101110023132/http://elections.delaware.gov/archive/elect10/elect10_General/html/election.shtml|url-status=dead|archive-date=November 10, 2010|title=State of Delaware General Election 2010 Official Results|publisher=Delaware Department of Elections|access-date=February 20, 2013}}</ref><ref>{{cite news|last=Taylor|first=Adam|title=Flowers edges Bonini in 'hard-fought' race|newspaper=Wilmington (Del.) News Journal|date=November 3, 2010}}</ref> Flowers, elected at the age of 35, became the first African-American elected to serve in Delaware and was the youngest statewide elected official during his term.

=== Term === In 2011, his first year in office, Flowers restructured the Delaware State Treasury into four distinct offices and began publishing the Delaware Economic Index. He implemented the Delaware Early Warning System, a financial warning system that rates the health of the state's economy.<ref name="treasury.delaware">{{cite web|last=Flowers|first=Chip|title=The Second Report on the Delaware State Treasury|url=http://treasury.delaware.gov/wp-content/uploads/Treasury-Report-2012-small.pdf|archive-url=https://web.archive.org/web/20120217211921/http://treasury.delaware.gov/wp-content/uploads/Treasury-Report-2012-small.pdf|url-status=dead|archive-date=February 17, 2012|publisher=Delaware State Treasury|access-date=February 20, 2013}}</ref> Within 90 days of assuming office, Flowers also was confronted with the challenge of deciding whether to remove hundreds of millions of uncollateralized state funds from a potential failing financial institution, Wilmington Trust, that failed to meet the state's standards for holding deposits prior to his assuming office.<ref name="treasury.delaware"/> To resolve the issue, Flowers ordered the failing financial institution to move state funds into federally insured transaction accounts and proposed major reforms to diversify the state's assets by spreading state deposits throughout multiple financial institutions to reduce risk.<ref name="treasury.delaware"/><ref>{{Cite web|url=http://www.delawareonline.com/story/news/local/2015/08/05/former-wilm-trust-president-robert-harra-indicted/31172977/|title=Ex-Wilm. Trust president Robert Harra among 4 indicted}}</ref>

Though his actions to reduce the state's exposure to the failing financial institution was viewed as necessary and proper by many in the financial community and among his fellow Treasurers, it created tension with Governor Jack Markell and the Cash Management Policy Board that lasted throughout his term.he That year, he was elected to the executive committee of the National Association of State Treasurers, representing the treasurers of the Eastern states. He donated his entire first year salary of over $100,000 to fund two fellowships at the Treasury in partnership with United Way of Delaware.<ref name="treasury.delaware" />

=== Cash Management Policy Board debate === During 2012, Flowers and Governor Markell debated over the role of the state's Cash Management Policy Board and the need for “open and competitive” contracts in securing the state's investment managers. Flowers contended that the board's investment decisions had led to lower than average returns on the state's investment portfolio and the state needed to engage new investment managers on an open and competitive basis to increase returns and reduce fees. Markell and his aides, supporting the board, claimed that Flowers was attempting to usurp the board's traditional responsibilities to hire fund managers and make decisions about investment policies.<ref>{{cite news|last=Starkey|first=Jonathan|title=Outcast of Markell's inner circle|newspaper=Wilmington (Del.) News Journal|date=June 12, 2012}}</ref> Flowers commissioned a report by Credit Suisse Securities USA, LLC, which determined that the rate of return on the state's portfolio lagged behind the returns realized by similar states. He authored an article<ref>{{cite web|url=http://treasury.delaware.gov/wp-content/uploads/The-Case-for-Reforming-Our-State-Portfolio.pdf |archive-url=https://web.archive.org/web/20120817212125/http://treasury.delaware.gov/wp-content/uploads/The-Case-for-Reforming-Our-State-Portfolio.pdf |url-status=dead |archive-date=August 17, 2012 |title=The Case for Reforming Our State Portfolio |last=Flowers |first=Chipman L. |year=2012}}</ref> that summarized his position. That same year, he increased the returns of the portfolio by $4 million. Flowers, under a revamped model, made over $55 million for the State of Delaware during his term.

Following publication of the Credit Suisse report,<ref>[https://archive.today/20130409223755/http://treasury.delaware.gov/independent-report/ Credit Suisse report]</ref> the state Treasury began reallocating assets. In October 2012, the Treasury and the board reached agreement to diversify the state's assets, increase the number of investment managers and require them to meet certain financial performance benchmarks. The Treasury also negotiated a lower fee structure.<ref name="treasury.delaware_a">{{cite web|last=Flowers|first=Chip|title=The Third Report on the Delaware State Treasury|url=http://treasury.delaware.gov/wp-content/uploads/Treasury-3rd-Report-2013-FINAL.pdf|archive-url=https://web.archive.org/web/20130412064733/http://treasury.delaware.gov/wp-content/uploads/Treasury-3rd-Report-2013-FINAL.pdf|url-status=dead|archive-date=April 12, 2013|publisher=Delaware State Treasury|access-date=February 20, 2013}}</ref>

=== Financial education and protection of state deposits === In May 2012, the White House commended Delaware and two other state treasuries, for their efforts to promote financial literacy, praising both the Delaware Economic Index and the Prosperity Portal, a web-based repository of information on financial topics.<ref name="treasury.delaware_a" /> In early 2013, all three major rating agencies (Moody's, Standard & Poor's and Fitch) awarded a AAA rating to Delaware's bonds.<ref>{{cite web|title=Bond agencies rate Delaware AAA|url=http://www.businessweek.com/ap/2013-02-14/bond-agencies-rate-delaware-aaa|archive-url=https://archive.today/20130410164859/http://www.businessweek.com/ap/2013-02-14/bond-agencies-rate-delaware-aaa|url-status=dead|archive-date=April 10, 2013|access-date=March 14, 2013}}</ref> Later in 2012, when the federal Transaction Account Guarantee ("TAG") Program was set to expire, Flowers made a decision to secure Delaware's state deposits by requiring banks holding state funds to post collateral for state accounts with the Federal Reserve (prior to taking office, Delaware was one of a couple of states that did not require state funds to be collateralized by its financial institutions).<ref name="treasury.de.gov">http://www.treasury.de.gov{{Dead link|date=July 2020 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> This action protected hundreds of millions of state funds and is viewed as one of his major achievements of his term.<ref name="treasury.de.gov"/>

=== Honest Way proposal === In January 2013, Flowers held a major press conference proposing a series of reforms called the "Honest Way" proposals to reform Delaware's financial system - particularly, the operations of the state's Cash Board.<ref name="ReferenceA">{{Cite web |url=http://delaware.newszap.com/centraldelaware/128869-70/flowers-questions-lawmakers-attempts-to-limit-authority |title=Flowers questions lawmakers' attempts to limit authority - Delaware Newszap |access-date=2015-07-11 |archive-url=https://web.archive.org/web/20150712174314/http://delaware.newszap.com/centraldelaware/128869-70/flowers-questions-lawmakers-attempts-to-limit-authority |archive-date=2015-07-12 |url-status=dead }}</ref> Under the Honest Way proposals, Flowers proposed that members of the state's Cash Board would have to file annual financial disclosures (the Cash Board was only required to file disclosures when initially appointed to the Cash Board with no annual update requirement), meet at least quarterly in the management of the state's investments (the Cash Board was only required to meet twice a year), recuse from votes where members have a conflict (the Cash Board had no policy that required its members to recuse from votes where the members had a personal interest), require term limits (some of the Cash Board members had served since the early 80s) and prohibit Cash Board members from making political contributions from elected officials having a role in the state's finances.<ref name="ReferenceA"/><ref>{{Cite web |url=http://www.newsworks.org/index.php/local/item/63930-delaware-lawmakers-talk-about-flowers-as-committee-clears-cash-management-bill-?linktype=featured_articlepage |title=Delaware lawmakers talk about Flowers as committee clears cash management bill — NewsWorks |access-date=2015-07-11 |archive-url=https://web.archive.org/web/20150713002221/http://www.newsworks.org/index.php/local/item/63930-delaware-lawmakers-talk-about-flowers-as-committee-clears-cash-management-bill-?linktype=featured_articlepage |archive-date=2015-07-13 |url-status=dead }}</ref> Flowers stated the impetus of the proposals was one of the Cash Board members, who had given significant funds to the Governor's campaign and his political action committee, had requested the Treasury place state funds in financial institutions based on his personal interest, not the best interest of the state.<ref name="ReferenceA"/><ref name="delawareway.blogspot.com">{{Cite web|url=http://delawareway.blogspot.com/2014/04/chip-flowers-soldiers-on-against-jack.html|title = Chip Flowers Soldiers on Against Jack Markell's CMPB Cronys - Noon Today at the JSC Hearing in Dover}}</ref> The proposals resulted in months of public debate regarding the role of the Cash Board, with the Governor and Democratic leaders of the legislature opposing the proposed reforms.<ref name="delawareway.blogspot.com"/> During the press conference, Flowers stated, "I want to work with an honorable Board operating with integrity, not a corrupt Board seeking to use your money for their advantage ... I want to do it the right way, not the corrupt way."<ref name="ReferenceA"/>

In February 2013, in a rare vote, Flowers almost achieved a major upset when the state's Republican caucus in the House of Representatives joined some Democrats causing a tie vote for a reform measure sponsored by State Rep. John Kowalko that would have immediately adopted the annual financial disclosure requirement for the Cash Board over opposition from the Governor and the Speaker of the House of Representatives (ultimately, the reforms were sent to a committee of the state legislature for review).<ref name="newsworks.org">{{Cite web |url=http://www.newsworks.org/index.php/local/delaware/67757-proposed-changes-for-delawares-cash-board-video |title=Proposed changes for Delaware's cash board |access-date=2015-07-11 |archive-url=https://web.archive.org/web/20150712213551/http://www.newsworks.org/index.php/local/delaware/67757-proposed-changes-for-delawares-cash-board-video |archive-date=2015-07-12 |url-status=dead }}</ref> However, as political payback, the Governor and Democratic leaders of the legislature introduced legislation to reduce the powers of the State Treasurer. Flowers refused to back down and ultimately, certain portions of the Honest Way reforms were adopted by the state's General Assembly.<ref name="newsworks.org"/>

In February 2014, Flowers released ''The Fourth Report on the Delaware State Treasury'', which noted over 35 accomplishments during his tenure, highlighted by the state portfolio returning over $44 million (including positive returns 30 out of 37 months), measures to protect the state's portfolio and a $400,000 reduction in annual fees.<ref>{{cite web|last=Flowers|first=Chip|title=The Fourth Report on the Delaware State Treasury|url=https://treasury.delaware.gov/wp-content/uploads/Treasury_Report_2014_final.pdf|publisher=Delaware State Treasury|access-date=February 19, 2014}}</ref>

=== Travel expense issue === In November 2013, Flowers was questioned about funds spent during a business trip to Alaska with then-deputy treasurer Erika MacZuba Benner the previous year.<ref>{{cite news|last=O'Malley|first=Shana|date=November 20, 2013|title=Delaware legislative committee asks Chip Flowers about Alaska trip|newspaper=Newsworks|url=http://www.newsworks.org/index.php/local/delaware-feature/62081-delaware-legislative-committee-asks-chip-flowers-about-alaska-trip|url-status=dead|archive-url=https://web.archive.org/web/20140304033402/http://www.newsworks.org/index.php/local/delaware-feature/62081-delaware-legislative-committee-asks-chip-flowers-about-alaska-trip|archive-date=March 4, 2014|access-date=February 18, 2014}}</ref> Flowers stated that his travel expenses were justified and that he spent the trip meeting with bankers and lawyers regarding Delaware's $2 billion portfolio. The trip was subject to reimbursement by the National Association of State Treasurers, but the reimbursement was incorrectly filed by a Treasury staff member. Flowers, who contributed over $550,000 to his campaigns and donated over $100,000 of his first year salary, chose to return $460.80 for the trip and returned an additional $415.25 for an additional day's stay related to a National Association of State Auditors, Comptrollers and Treasurers meeting in Seattle in 2012.<ref>{{cite news|last=Anderson|first=Craig|date=November 16, 2013|title=Flowers' document woes won't go away|newspaper=Delaware Newszap|url=http://delaware.newszap.com/centraldelaware/127456-70/flowers-document-woes-wont-go-away|url-status=dead|archive-url=https://web.archive.org/web/20140308111706/http://delaware.newszap.com/centraldelaware/127456-70/flowers-document-woes-wont-go-away|archive-date=March 8, 2014|access-date=February 18, 2014}}</ref> On July 30, 2014, the Office of the Auditor of Accounts issued a full report that found that Flowers had traveled for only legitimate business purposes and his travel to Alaska and Seattle were paid (in full or in part) by the National Association of State Treasurers and the National Association of State Auditors, Comptrollers and Treasurers, resulting in the State of Delaware owing him for his reimbursements.{{citation needed|date=April 2024}}

=== Controversy and decision not to seek re-election === Democrat Sean Barney, a former policy director for Governor Markell and former advisor to U.S. Senator Tom Carper, challenged Flowers in the Democratic primary.<ref>{{Cite web|last=Starkey|first=Jonathan|title=Barney launches treasurer primary against Flowers|url=https://www.delawareonline.com/story/firststatepolitics/2014/02/18/barney-to-primary-flowers/5576701/|access-date=2021-11-04|website=The News Journal|language=en-US}}</ref> In August 2014, former deputy treasurer Erika MacZuba Benner accused Flowers of harassing and threatening her earlier that year.<ref>{{Cite web|last=Offredo|first=Jonathan Starkey, and Jon|title=Ex-deputy treasurer Benner claims Flowers harassed her|url=https://www.delawareonline.com/story/news/politics/2014/08/13/ex-deputy-treasurer-benner-claims-flowers-harassed/14029119/|access-date=2021-11-04|website=The News Journal|language=en-US}}</ref> Flowers vehemently denied the allegations, and the authorities ultimately cleared Flowers of any criminal wrongdoing.<ref>{{Cite web|last=Offredo|first=Jonathan Starkey, and Jon|title=Cops clear Chip Flowers of harassment|url=https://www.delawareonline.com/story/news/crime/2014/09/03/cops-clear-chip-flowers-harassment/15015285/|access-date=2021-11-04|website=The News Journal|language=en-US}}</ref> On August 15, 2014, Flowers announced that he was dropping out of the race and would be leaving Delaware at the conclusion of his term.<ref>{{Cite web|last=Offredo|first=Jonathan Starkey and Jon|title=Flowers to finish term, leave Delaware|url=https://www.delawareonline.com/story/news/politics/2014/08/15/delaware-state-treasurer-chip-flowers/14101139/|access-date=2021-11-04|website=The News Journal|language=en-US}}</ref> Republican Ken Simpler defeated Barney in the general election.

At the conclusion of his term, Flowers held a press conference in which he criticized the state's media and political leadership for their conduct during his time in office.<ref>Archived at [https://ghostarchive.org/varchive/youtube/20211209/9WF4oy4_AdQ Ghostarchive]{{cbignore}} and the [https://web.archive.org/web/20150822231417/https://www.youtube.com/watch?v=9WF4oy4_AdQ Wayback Machine]{{cbignore}}: {{cite AV media |url=https://www.youtube.com/watch?v=9WF4oy4_AdQ |title=Delaware Treasurer Chip Flowers Press Conference 1.15.15 |website=YouTube}}{{cbignore}}</ref>

== References == {{reflist|30em}}

== External links == * [https://treasurer.delaware.gov Official Delaware State Treasurer website] * [http://www.chipflowers.com/ Official website of State Treasurer Chip Flowers] * [http://www.flowerscounselgroup.com/ Official website of The Flowers Counsel Group, LLC]

{{s-start}} {{s-bef|before=Velda Jones-Potter}} {{s-ttl|title=Treasurer of Delaware|years=2011–2015}} {{s-aft|after=Ken Simpler}} {{s-end}}

{{DEFAULTSORT:Flowers, Jr., Chipman}} Category:1974 births Category:Living people Category:African-American people in Delaware politics Category:Delaware Democrats Category:Delaware lawyers Category:Georgetown University Law Center alumni Category:Harvard Kennedy School alumni Category:Skadden, Arps, Slate, Meagher & Flom people Category:State treasurers of Delaware Category:University of Pennsylvania alumni Category:McDonough School of Business alumni Category:21st-century African-American lawyers Category:20th-century African-American lawyers