Research Briefing

Pelosi Ethics Pledge Falters, Alexi Giannoulias Deceives Illinois Voters & Exploits Tax Loophole… Just Another Day As A Dem

THE ASSOCIATED PRESS: “PELOSI ETHICS PLEDGE FALTERS.”

Pelosi Promised To Lead The “Most Honest, Most Open, Most Ethical Congress” But Is Now Confronted By Two Prominent Democrats Facing Ethics Trials, Nepotism, And “Lobbyists, Corporations, And Special Interests” With “Unimpeded Ways To Buy Access To Members Of Congress.” “House Speaker Nancy Pelosi promised four years ago that Democrats would lead ‘the most honest, most open, most ethical Congress in history.’ But as her party defends its record with its majority in jeopardy, two prominent Democrats await ethics trials. Two other party members gave Congressional Black Caucus Foundation scholarships to relatives. Most importantly, lobbyists, corporations and special interests still have unimpeded ways to buy access to members of Congress.” (Larry Margasak, “PROMISES, PROMISES: Pelosi Ethics Pledge Falters,” The Associated Press, 9/29/10)

Example: House Majority Whip James Clyburn’s Annual “Charity” Golf Tournament “A Stretch To Believe That National Companies Which Sponsored The Event Randomly Chose Students … As A Priority For Charitable Giving.” “Take House Majority Whip James Clyburn’s annual charity golf tournament, which provides college scholarships for needy students in his South Carolina district and funds the endowment he established at South Carolina State University. It sounds like a worthy cause, but it’s a stretch to believe that national companies which sponsored the event randomly chose students in the 6^th District of South Carolina as a priority for charitable giving.” (Larry Margasak, “PROMISES, PROMISES: Pelosi Ethics Pledge Falters,” The Associated Press, 9/29/10)

• Democracy 21’s Fred Wertheimer: “It really doesn't matter what the money is used for. … If you're asked to provide a large amount of money for something that is important to a member, you are doing a financial favor for the member. That benefit buys influence.” (Larry Margasak, “PROMISES, PROMISES: Pelosi Ethics Pledge Falters,” The Associated Press, 9/29/10)
• Pelosi Didn’t “Touch Access-Buying Opportunities Like Campaign Fundraisers, Corporate-Sponsored Events For Informal Lawmaker Organizations, Or Sports Tournaments Held By Members’ Charities.” “Yet, her reforms didn't touch access-buying opportunities like campaign fundraisers, corporate-sponsored events for informal lawmaker organizations, or sports tournaments held by members' charities. The Sunlight Foundation, which tracks congressional fundraising events, has identified more than 9,500 since President George W. Bush signed the Honest Leadership and Open Government Act in September 2007.” (Larry Margasak, “PROMISES, PROMISES: Pelosi Ethics Pledge Falters,” The Associated Press, 9/29/10)

Pelosi’s “Reform” Requiring Greater Disclosure Between Lawmakers And Lobbyists In Regards To Fundraising “Failed Miserably.” “One Pelosi reform failed miserably when given a reality check. An Associated Press review last year found that few members of Congress were disclosing that lobbyists were helping them raise campaign cash — despite a provision of the Honest Leadership law designed to shed light on the ties between lawmakers and the capital's influence brokers.” (Larry Margasak, “PROMISES, PROMISES: Pelosi Ethics Pledge Falters,” The Associated Press, 9/29/10)

Illinois Senate Democrat Nominee Alexi Giannoulias’ Tells The IRS And Voters Different Stories About His Bank That Loaned Money To Mobsters And Convicted Felons

Giannoulias Tells Voters He Was Gone From The Troubled Bank By 2005, But That’s Not What He Told The IRS When He Collected A $2.7 Million Tax Deduction For Working In 2006.  “U.S. Senate candidate Alexi Giannoulias tells voters he was gone from his troubled family bank by late 2005, but that's not what he told the Internal Revenue Service. Giannoulias was able to take a $2.7 million tax deduction last year because he reported working hundreds of hours at Broadway Bank in 2006.” (John Chase, “Family Bank Good For Giannoulias' Taxes, Bad For His Campaign,” Chicago Tribune, 9/29/10)

• Giannoulias Reported Working At Least 500 Hours At The Controversial Bank, Which Allowed Him To Exploit A Tax Loophole That Helped Avoid Paying Federal Income Tax In 2009. “Saying he left in 2005 gives Giannoulias maximum distance from the bank's questionable lending practices, the April takeover by federal regulators and other controversies such as a loan by the bank to convicted influence peddler Antoin ‘Tony’ Rezko in early 2006. But by reporting that he worked at least 500 hours at Broadway in 2006, Giannoulias was able to get a break that helped him avoid paying federal income tax for 2009.” (John Chase, “Family Bank Good For Giannoulias' Taxes, Bad For His Campaign,” Chicago Tribune, 9/29/10)

While Giannoulias Was Senior Loan Officer, His Bank Handed Out $20 Million In Loans To Convicted Felons Involved In Organized Crime. “The family bank of Democratic Senate candidate Alexi Giannoulias loaned a pair of Chicago crime figures about $20 million during a 14-month period when Giannoulias was a senior loan officer, according to a Tribune examination that provides new details about the bank's relationship with the convicted felons…” (David Jackson, John Chase and Ray Gibson, “$20 Million In Loans To Felons,” Chicago Tribune, 4/2/10)

In 2006, Giannoulias’ Bank Loaned $22.75 Million To “Politically Radioactive” Tony Rezko. “By February 2006, businessman and political fixer Tony Rezko was already politically radioactive, caught up in a federal investigation that would see him criminally charged by the end of that year. … Giannoulias, the Democrat now running for U.S. Senate, had left his post as a senior loan officer at the Chicago bank in late 2005 to mount a successful campaign for Illinois state treasurer, though he still held an ownership stake in the bank. … On Feb. 14, 2006, newly obtained records show, the bank made a $22.75 million loan to a company called Riverside District Development LLC, whose owners, it turns out, included Rezko.” (Abdon M. Pallasch, Chris Fusco & Tim Novak, “A New Headache For Giannoulias? Another Rezko Loan,” Chicago Sun-Times, 8/2/10)

• Despite A $10.9 Million Loan To Rezko Already Going Bad. “Broadway Bank made the loan even though another

Rezko company, Chicago Hudson LLC, had fallen behind on a $10.9 million loan it got from the bank four years earlier. That loan -- for a proposed high-rise condo building at 750 N. Hudson on the Near North Side that never got built -- ended up in Bankruptcy Court. The property ended up being sold to another developer. Broadway Bank received $11.5 million from the sale, which took place July 31, 2006.” (Abdon M. Pallasch, Chris Fusco & Tim Novak, “A New Headache For Giannoulias? Another Rezko Loan,” Chicago Sun-Times, 8/2/10)

JUST MORE DEMS WITH ETHICAL CHALLENGES…

Rep. Chellie Pingree Caught Living The Glamorous Lifestyle She Denounced In The Past

Maine Democrat Congresswoman Chellie Pingree Has Been Accused Of Taking Frequent Flights On A Private Jet Owned By Her Boyfriend, Hedge Fund Founder S. Donald Sussman. “U.S. Rep. Chellie Pingree, D-Maine, has taken frequent flights on a private jet owned by her partner Donald Sussman, founder and chairman of a billion dollar hedge fund called Paloma Partners, while conducting business as a member of Congress, according to an investigative blog called MaineWatchdog. … MaineWatchdog’s investigation included photographs and videotape of Pingree walking from a private jet and flight logs of Sussman’s plane.” (Rebekah Metzler, “Pingree’s Corporate Flights Contradict Past Values,” The Portland Press Herald, 9/23/10)

• But While President Of Common Cause, Pingree Criticized Congressional Members Who Used Private Jets For Travel. “In 2006, Pingree, while president of Common Cause, a non-partisan, non-profit group that promotes government transparency, criticized such travel by members of Congress, MaineWatchdog reports. ‘Most Americans never have and never will fly on a chartered jet, much less a fancy corporate jet complete with wet bar and leather couches,’ she said, according to written testimony before the House Subcommittee on the Constitution in 2006. ‘So when members of Congress constantly fly around on corporate jets and pay only the cost of a commercial ticket, it contributes to the corrosive public perception that members of Congress are more like the fat cats of Wall Street than they are like the rest of us.’” (Rebekah Metzler, “Pingree’s Corporate Flights Contradict Past Values,” The Portland Press Herald, 9/23/10)

The Flights Appear To Violate House Ethics Rules. “The flights may be afoul of House ethics rules, according to a summary of the travel rules found on the website for the House Committee on Standards of Official Conduct.” (Rebekah Metzler, “Pingree’s Corporate Flights Contradict Past Values,” The Portland Press Herald, 9/23/10)

More Revelations In Federal Probe Of West Virginia Gov.  And Senate Candidate Joe Manchin 

Federal Probe Into Manchin’s Administration Targeting “A Multi-Million Dollar Road That Runs Through Fairmont.” “We now know a major target of the federal probe into Gov. Joe Manchin's administration and the Department of Highways is a multi-million dollar road that runs through Fairmont.” (“Special Attorney General Confirms Multi-Million Dollar Road Part Of Federal Probe,” WSAZ, 9/22/10)

FOIA Revealed That The Focus Of The Federal Investigation Is The Fairmont Gateway In Marion County. “Through a Federal Freedom of Information Act (FOIA) request filed by WSAZ, the Special Attorney General assigned to the federal probe confirms that the Fairmont Gateway in Marion County is a focus of a federal investigation.” (“Special Attorney General Confirms Multi-Million Dollar Road Part Of Federal Probe,” WSAZ, 9/22/10)

The $150 Million Road Connects Interstate 79 And Fairmont, Manchin’s Hometown. “The $150 million road has been under construction for several years and connects I-79 to Fairmont, which is Manchin's hometown.” (“Special Attorney General Confirms Multi-Million Dollar Road Part Of Federal Probe,” WSAZ, 9/22/10)

Sources Believe Manchin’s Former Chief Of Staff And Current Chair Of The West Virginia Democrat Party Could Be Part Of The Probe. “Larry Puccio, Manchin's former chief of staff and current chair of the Democratic Party in West Virginia, also runs a real estate business in Fairmont. Sources believe Puccio could be part of the probe.” (“Special Attorney General Confirms Multi-Million Dollar Road Part Of Federal Probe,” WSAZ, 9/22/10)

Rep. Loretta Sanchez Caught Using Race-Baiting Language For Political Expediency

Rep. Loretta Sanchez (D-CA) Played The Race Card In A Spanish-Language Interview, Accusing The “Vietnamese” And Republicans Of Trying To Take Her Congressional Seat. “Democratic Congresswoman Loretta Sanchez, D-Santa Ana, said in a recent Spanish-language interview that 'the Vietnamese’ and Republicans are trying to wrest control of her seat in Congress, from which ‘we have done so much for our community.’” (Doug Irving, “Rep. Sanchez: ‘Vietnamese’ Trying To Take Seat,” The Orange County Register, 9/23/10)

• REP. SANCHEZ: “The Vietnamese and the Republicans are, with an intensity, (trying) to take this seat – this seat (from which) we have done so much for our community – to take this seat and give it to this Van Tran, who is very anti-immigrant and very anti-Hispanic.” (Doug Irving, “Rep. Sanchez: ‘Vietnamese’ Trying To Take Seat,” The Orange County Register, 9/23/10)

Rep. Jesse Jackson Jr. Asked A Fundraiser To Help Blagojevich In Return For U.S. Senate Seat

Rep. Jesse Jackson Jr. (D-IL) Allegedly Directed A Major Political Fundraiser To Offer Disgraced Former Gov. Rod Blagojevich (D-IL) Millions In Campaign Cash In Return For The Appointment To Obama’s U.S. Senate Seat. “Rep. Jesse Jackson Jr. directed a major political fund-raiser to offer former Gov. Rod Blagojevich millions of dollars in campaign cash in return for an appointment to the U.S. Senate, sources said the fund-raiser has told federal authorities.” (Natasha Korecki et al, “Feds: Jesse Jackson Jr. Asked Fund-Raiser To Help Blagojevich, Pay For Acquaintance Flight,” Chicago Sun-Times, 9/21/10)

• The Allegation Refutes Jackson’s Public Statements That He Never Attempted To Buy The Senate Seat. “The allegation by Oak Brook businessman Raghuveer Nayak counters public statements made as recently as last week by Jackson that he never authorized any deal to attempt to buy the Senate seat.” (Natasha Korecki et al, “Feds: Jesse Jackson Jr. Asked Fund-Raiser To Help Blagojevich, Pay For Acquaintance Flight,” Chicago Sun-Times, 9/21/10)

The Fundraiser Also Told Federal Authorities That He Paid For Trips For A “Social Acquaintance” Of The Congressman At Jackson’s Request. “Nayak also told authorities he paid for two airline trips for a ‘social acquaintance’ of the Democratic congressman at Jackson's request, raising more potential ethical and political problems for Jackson.” (Natasha Korecki et al, “Feds: Jesse Jackson Jr. Asked Fund-Raiser To Help Blagojevich, Pay For Acquaintance Flight,” Chicago Sun-Times, 9/21/10) 

Del. Eleanor Holmes Norton Caught Touting Her Influence And Seniority In Fundraising Squeeze Call To Lobbyist For Campaign Contribution

Del. Eleanor Holmes Norton (D-D.C.) Left A Message “That Sure Sounds Like Her Telling A Lobbyist That He Should Give Her Campaign Cash” Based On Her Seniority And “Ability To Procure Projects In His ‘Sector.’”  “Here's a transcript of a recording of what sure sounds like Del. Eleanor Holmes Norton (D-D.C.) leaving a message that sure sounds like her telling a lobbyist that he should give her campaign cash based on her subcommittee chairmanship and her ability to procure projects in his ‘sector.’” (Jonathan Allen, Politico’s “The Huddle,” 9/16/10)

• NORTON: "This is Eleanor Norton, Congresswoman Eleanor Holmes Norton. I noticed that you have given to other colleagues on the Transportation and Infrastructure committee. I am a senior member, 20-year veteran, and am chair of the subcommittee on Economic Development, Public Buildings and Emergency Management. I’m handling the largest economic development project in the United States now, the Homeland Security compound of three buildings being built on the old St. Elizabeth’s hospital site in the District of Columbia along with 15 other sites here that are part of the stimulus. I was frankly surprised to see that we don’t have a record so far as I can tell of your having given to me despite my loooong and deep work, in fact its [sic] been my major work on the committee and subcommittee has been essentially in your sector. I am simply candidly calling to ask for a contribution. As a senior member of the committee and a subcommittee chair, we have obligations to raise funds. And I think it must have been me who hasn’t frankly done my homework to ask for a contribution earlier, so I’m trying to make up for it by asking for one now when we particularly need contributions particularly those of us who have the seniority and the chairmanships and are in a position to raise funds. I’m asking you to give to Citizens for Eleanor Holmes Norton. P.O. Box 70626, D.C., 20024. I’ll send you a follow-up note with appreciation for having heard me out. Thanks again." (Jonathan Allen, Politico’s “The Huddle,” 9/16/10)

South Carolina Senate Democrat Nominee Alvin Greene Indicted For Felony Porn Charges

Alvin Greene Was Indicted For “Disseminating, Procuring Or Promoting Obscenity” After Showing Pornography To A College Student. “Longshot U.S. Senate candidate Alvin Greene has been indicted on a felony charge of showing pornography to a South Carolina college student. Court records show a grand jury in Richland County handed down the indictment Friday for disseminating, procuring or promoting obscenity. The Democratic nominee was also indicted on a misdemeanor charge of communicating obscene materials to a person without consent.” (Meg Kinnard, “SC’S Greene Indicted On Felony Obscenity Charge,” The Associated Press, 8/13/10)

Rep. Charlie Rangel Plagued With Accusations Of Ethical And Disclosure Violations

Rep. Rangel Is Accused Of Multiple Ethics And Disclosure Violations. “Enter Charlie Rangel… While the committee won't spell out the specifics until next Thursday, Rangel is under fire for an assortment of things, including the use of four rent-stablized apartments in New York City, including one as a campaign office, which could violate campaign finance laws (the rent on the apartments were well under market value), having an oil executive pledge to make a contribution to a foundation he ran, and his failure to report income on a villa he owns in the Dominican Republic.  There are also questions about his travel to a conference in St. Maarten that was sponsored by lobbyists, which would violate House rules.” (Ken Rudin, “Democrats Catch Break With Blago Trial Ending, But Now There's Rangel,” NPR, 7/23/10)

 Rep. Maxine Waters Charged With Breaking House Ethics Rules

House Ethics Committee Formally Charged Rep. Waters With Three Counts OF Ethics Wrongdoing. “The House ethics committee has formally charged California Democrat Maxine Waters with three counts of ethics wrongdoing, including charges that she accepted special favors for a family member.” (Jim Abrams, “House Ethics Panel Outlines Charges Against Waters,” The Associated Press, 8/9/10)

The Ethics Office Concluded In Its Report That Rep. Waters “Violated House Rules Because She Appeared To Have A Conflict Of Interest” And Took Action That “Could Have Benefited Her Family Personally.” “The ethics office concludes in its report that there is evidence to suggest that Ms. Waters’ action violated House rules because she appeared to have a conflict of interest and took a step that could have benefited her family personally.” (Eric Lipton, “Waters Saw Conflict Of Interest And Acted Anyway, Report Says,” The New York Times, 8/2/10)

• Rep. Waters Helped Arrange Meeting For Bank That She Had Financial Ties With To Receive TARP Bailout Funds. “One of Los Angeles' most enduring black politicians, Waters came under scrutiny last year after Massachusetts-based OneUnited Bank, one of the nation's largest minority-owned institutions, received $12 million in bailout funds.” (Richard Simon and Lisa Mascaro, “Maxine Waters Faces Ethics Charges,” Los Angeles Times, 7/31/10)

Rep. Nick Rahall Used The Power Of Office To Help Son Evade Felony Robbery Charges

Congressman Nick Rahall (D-WV) Used Congressional Stationary To Implore Judge To Avoid Sentencing Son To Prison. “In February 2005, as his troubled son was facing felony robbery charges in Virginia, Rep. Nick Rahall (D-W.Va.) wrote a letter to a Fairfax County judge on congressional stationery, imploring him to show mercy on the then-27-year-old Nick Joe Rahall III.” (John Bresnahan, “Rahall's Plea Raises Questions,” Politico, 8/12/10)

• Rahall: "I should have used different personal letterhead.” (John Bresnahan, “Rahall's Plea Raises Questions,” Politico, 8/12/10)

Rahall Acknowledged Stationary Was Misused, But Denied Letter Impacted Judge’s Sentencing. “Rahall acknowledged to POLITICO that he should not have used congressional stationery for the Feb. 14, 2005, letter but said it was not the same type that he uses for official or committee business. House ethics rules bar the use of congressional stationery for anything but government-related activities… Rahall also denied that his son was granted any special breaks because of his status as a member of Congress or due to his intervention on his son’s behalf.” (John Bresnahan, “Rahall's Plea Raises Questions,” Politico, 8/12/10)

• Rahall’s Son Avoided Prison Sentence, While Other Defendant Received 11 Months. “Nick Joe Rahall, the congressman’s only son, was given a four-year suspended sentence, avoiding prison time in this instance despite being incarcerated twice in the previous four years… Another defendant in the same case, Melissa Overheu, was sent to prison for 11 months.” (John Bresnahan, “Rahall's Plea Raises Questions,” Politico, 8/12/10)

Rahall’s Letter Broke Specific Congressional Rules. “Rahall’s letter to Judge David Stitt includes the congressional seal, the words ‘Congress of the United States of America’ prominently displayed across the page, lists Rahall as ‘Nick J. Rahall II, M.C., West Virginia’ and includes his committee assignments, Public Works and Transportation and Natural Resources. Rahall is now the chairman of the Natural Resources Committee… While lawmakers often use a facsimile of official stationery for personal correspondence or campaign activities, there are strict guidelines on how it can be designed. For instance, the congressional seal may not be used on campaign mailings, and neither can the words ‘Congress of the United States of America’ or ‘United States House of Representatives.’” (John Bresnahan, “Rahall's Plea Raises Questions,” Politico, 8/12/10)

Rep. Eddie Bernice Johnson Accused Of Nepotism And Violating Ethical Rules By Steering Scholarship Money To Relatives

Rep. Eddie Bernice Johnson Violated Ethical Rules By Awarding Thousands Of Dollars In Scholarships To Four Relatives And A Top Aide’s Children. “Longtime Dallas congresswoman Eddie Bernice Johnson has awarded thousands of dollars in college scholarships to four relatives and a top aide's two children since 2005, using foundation funds set aside for black lawmakers' causes.” (Todd J. Gilman and Christy Hoppe, “Rep. Eddie Bernice Johnson Violated Rules, Steered Scholarships To Relatives,” The Dallas Morning News, 8/29/10)

• The Recipients Were Ineligible Under Anti-Nepotism Rules Of The Congressional Black Caucus Foundation. “The recipients were ineligible under anti-nepotism rules of the Congressional Black Caucus Foundation, which provided the money. And all of the awards violated a foundation requirement that scholarship winners live or study in a caucus member's district.” (Todd J. Gilman and Christy Hoppe, “Rep. Eddie Bernice Johnson Violated Rules, Steered Scholarships To Relatives,” The Dallas Morning News, 8/29/10)

Of The Scholarships Johnson Awarded From 2005 To 2008, “Three Or Four Winners” Each Of Those Years Were Related To The Congresswoman Or Her District Director. “Johnson awarded nine to 11 scholarships a year from 2005 to 2008, the most recent years for which information was available. Each of those years, three or four winners were related to her or her district director, Rod Givens. … Scholarships have gone to two of the congresswoman's grandsons, Kirk and David Johnson; to two of her great-nephews, Gregory and Preston Moore; and to Givens' son and daughter.” (Todd J. Gilman and Christy Hoppe, “Rep. Eddie Bernice Johnson Violated Rules, Steered Scholarships To Relatives,” The Dallas Morning News, 8/29/10)

Johnson Said She Was Not Ashamed Of Breaking Anti-Nepotism Rules To Help Her Relatives. “‘While I am not ashamed of helping, I did not intentionally mean to violate any rules in the process,’ Johnson said in a written statement issued Monday night, after two days of national scrutiny and sniping from critics, including her campaign opponent.” (Todd J. Gilman, “Rep. Eddie Bernice Johnson Says She'll Repay Scholarship Funds By Week's End,” The Dallas Morning News, 8/31/10)     

• Ethics Experts Called Johnson’s Actions Troubling And Problematic. “Ethics experts called Johnson's actions troubling and potentially problematic for her, given that the scholarships violated anti-nepotism rules and went to students who neither live nor study in her district or any other represented by a member of the black caucus, as required.” (Todd J. Gilman, “Rep. Eddie Bernice Johnson Says She'll Repay Scholarship Funds By Week's End,” The Dallas Morning News, 8/31/10)  

Rep. Johnson Asked The CBC Foundation To Send Scholarship Checks Directly To Her Relatives. “Rep. Eddie Bernice Johnson apparently asked the Congressional Black Caucus Foundation to send scholarship checks directly to her two grandsons and two great-nephews, rather than to their colleges. Johnson has insisted repeatedly that she left scholarship decisions to aides.” (Todd J. Gillman and Christy Hoppe, “Letters Bearing Eddie Bernice Johnson's Signature Ask That Scholarship Money Be Sent Directly To Her Grandsons,” The Dallas Morning News, 9/8/10)

Rep. Johnson Sent Two Letters, Undermining Her Previous Claim That She Was Not Involved In Obtaining Thousands Of Dollars For Her Relatives. “But two letters she sent the foundation from 2006 undermine claims that she wasn't involved in obtaining $31,000 for her relatives and two other ineligible recipients.” (Todd J. Gillman and Christy Hoppe, “Letters Bearing Eddie Bernice Johnson's Signature Ask That Scholarship Money Be Sent Directly To Her Grandsons,” The Dallas Morning News, 9/8/10)

Rep. Sanford Bishop Awarded Scholarships To His Own Family Members

Rep. Bishop Awarded Scholarships From The CBC Foundation To His Stepdaughter And Wife’s Niece. “Rep. Sanford Bishop (D-Ga.) awarded three scholarships from the Congressional Black Caucus Foundation to his stepdaughter and wife’s niece between 2003 and 2005, according to records from the nonprofit group.” (John Bresnahan, “Bishop Steered Scholarships To Family,” Politico, 9/9/10)

Rep. Bishop “Favored Family Members With CBC Scholarships.” “Bishop, though, also appears to have favored family members with CBC scholarships. In 2003, Emmaundia Whitaker, the niece of Vivian Creighton Bishop, who is Bishop’s wife, was awarded an education scholarship. She was also given a similar award in 2005. And in 2003, Aayesha Owens Reese, the congressman’s stepdaughter, was granted an education scholarship as well.” (John Bresnahan, “Bishop Steered Scholarships To Family,” Politico, 9/9/10)

Bishop Was Already Caught Up A Scandal In 2009 After Georgia State Investigators Looked Into Whether A Youth Program Improperly Spent Funds By Hiring Bishop’s Stepdaughter After He Earmarked More Than $190,000 For It. “Bishop was also caught up in a scandal in 2009 when the Georgia Bureau of Investigation began a probe into whether a youth program operated by Muscogee County Marshal’s Office improperly spent federal funds after it hired Bishop's stepdaughter and her husband. Bishop had earmarked more than $190,000 for that youth program. Reese and her husband, Stephen, were paid more than $14,000 by that program, although they lived in the Atlanta area, more than 100 miles from Columbus, where the program operated. The GBI later ruled that the hiring of the pair was legal.” (John Bresnahan, “Bishop Steered Scholarships To Family,” Politico, 9/9/10)

Rep. Eric Massa Resigned While Under Investigation For Sexually Harassing A Staffer

Former Rep. Eric Massa Was Under Investigation For Propositioning A Male Staffer. “The sexual harassment allegations against former Rep. Eric Massa are far more serious than previously known, new reports reveal. The New York Democrat resigned last month in the wake of a House ethics inquiry into charges that he behaved inappropriately with male staffers. The House ethics committee ended its investigation after Massa resigned. Now, however, a former male aide to Massa has filed a sexual harassment complaint against the former representative, according to reports. The aide claims Massa regularly groped him, propositioned him and made lewd remarks to him and other staffers.” (Stephanie Condon, “Eric Massa Now Facing Harassment Complaint From Former Aide,” CBS News, 4/13/10)

• The Department Of Justice Began Investigating Massa For Potential Abuses Of Public Office. “The Justice Department has begun investigating potential abuses of public office by former congressman Eric Massa (D-N.Y.) and his aides, according to documents obtained by The Washington Post. A team of FBI agents and Justice prosecutors who specialize in public corruption appears to be focusing its preliminary inquiry on large payments Massa's campaign made last month to his top congressional aide and the decision to renew the lease for the lawmaker's personal car within days of his announcement that he would not seek reelection.” (Carol D. Leoning, “Payments By Former Congressman Massa Investigated,” The Washington Post, 4/22/10)

Rep. Pete Visclosky’s Business Dealings And Associations With Lobbying Firm Are Under Justice Department Investigation

Justice Department Continuing Investigation Into Rep. Pete Visclosky’s Business Dealings. “Information about the no-bid contracts Hoosier Rep. Pete Visclosky, D-1st, obtained for businesses that gave him money for re-election expenses will be turned over to the Justice Department, an independent ethics board announced Thursday… The office, which advises the House ethics committee, previously said there was enough evidence against Visclosky and one other lawmaker to warrant further investigation.” (Sylvia A. Smith, “Visclosky’s Ethics Case Gets 2nd Look,” Ft. Wayne Journal Gazette, 5/28/10)

• Visclosky Also Under Justice Department Investigation For Ties To Now Defunct Lobbying Firm. “In addition, the Justice Department is continuing its criminal investigation into Democratic lawmakers’ dealings with the PMA Group, a now-defunct lobbying firm that specialized in winning multimillion-dollar spending earmarks from the Appropriations Committee for its clients.  Rep. Pete Visclosky of Indiana, a senior member of the Appropriations panel, and his former top aide Charles Brimmer were issued subpoenas as part of that investigation earlier this year. The DOJ probe is ongoing, according to multiple sources.” (John Bresnahan, “Ethics Probes May Saddle Democrats In 2010,” Politico, 12/11/09)