Democrats pledge to change Washington’s “Culture of Corruption” - By being more corrupt
On 12 Jan 2006, Nancy Pelosi announced a dream team designed to “restore honor and dignity to the House of Representatives” by addressing the “systemic Republican culture of corruption that has undermined the American people’s confidence in the institution.” Her plan for doing so:
Support John Murtha for House Majority Leader. An unindicted co-conspirator in the 1980 Abscam scandal Murtha is also known to oppose ethics reforms, and is said by some to personify pay to play politics:
Murtha has a record of not always being a leadership loyalist, frequently supplying votes to GOP leaders who were struggling to pass bills. The none-too-subtle trade-off: Murtha and his allies would do better when home-state projects were doled out by the Republicans.
He has been criticized by ethics watchdogs such as Citizens for Responsibility and Ethics in Washington, who have said he exemplifies a “pay-to-play” culture of Washington. The group says Murtha has steered defense projects to clients of KSA Consulting, a lobbying firm that until recently employed his brother Kit. Clients of the firm are generous with campaign contributions.
Support Alcee Hastings, a former federal judge impeached for misconduct including bribery and perjury, as Chair of the House Permanent Select Committee on Intelligence.
In 1989, Hastings was impeached by the Democratic-controlled U.S. House of Representatives for bribery and perjury. The Democratic-controlled Senate convicted Judge Hastings of accepting a $150,000 bribe in 1981 in exchange for a lenient sentence and a return of seized assets for 21 counts of racketeering by Frank and Thomas Romano, and of perjury in his testimony about the case. He became only the sixth Judge in the history of United States to be removed from office by the United States Senate.
Support Alan Mollohan to Head the House Appropriations Committee.
On February 28, 2006, National Legal and Policy Center filed a 500 page ethics complaint against Mollohan for misrepresenting his assets on financial disclosure forms. Mollohan’s real estate holdings and other assets have jumped in value from $562,000 in 2000 to at least $6.3 million in 2004.
From the complaint:
For the period 1996 through 2004, NLPC found that the Financial Disclosure Reports:
* repeatedly failed to disclose real estate assets which public records showed were owned by Mollohan and his wife
* repeatedly failed to disclose financial assets which public records showed were owned by Mollohan and his wife
* repeatedly failed to disclose major loans which were used in the acquisition of financial assets which were not being disclosed
* failed to disclose interests in companies which owned major assets
* grossly undervalued assets, giving purported valuations which were a small fraction of the assets’ true value“The bottom line is Mollohan got very wealthy in a four year period. His account of his finances during this period is demonstrably false. The fact that he earmarked well over $100 million in tax dollars to groups associated with his business partner is about as big a red flag as one can imagine.” [1]
On April 7, 2006, The New York Times reported that Mollohan “has fueled five non-profit groups in his West Virginia district with $250 million in earmark funding” [2] UPI.
On April 21, 2006, House Minority Leader Nancy Pelosi announced that Mollohan would temporarily step down as the Ranking Democrat on the House Ethics Committee. Howard Berman of California took Mollohan’s place.
On April 25, 2006, The Wall Street Journal reported that Mollohan cooperated with CEO Dale R. McBride of FMW Composite Systems Inc. of Bridgeport, West Virginia for the joint purchase of his 300 acre farm along West Virginia’s Cheat River. Mollohan had directed a $2.1 million government contract earmarked to FWM composite systems to develop lightweight payload pallets for space-shuttle missions. Federal Bureau of Investigation agents have started asking questions in Washington and West Virginia about Mollohan’s investments and whether they were properly disclosed, according to the Journal. Mollohan had previously acknowledged he may have made inadvertent mistakes on financial disclosure forms.
On the Senate side Harry Reid was very critical of the “Republican pay and play system.” However he has been linked to Jack Abramoff.
As convicted lobbyist Jack Abramoff reported to federal prison today, a source close to the investigation surrounding his activities told ABC News that Sen. Harry Reid (D-Nev.) was one of the members of Congress Abramoff had allegedly implicated in his cooperation with federal prosecutors.
In addition Senator Reid has been linked to a questionable Las Vegas land deal in which he made $1,100,000.00 and was partnered with a friend whose name has surfaced in political corruption cases and organized crime investigations:
Senate Democratic Leader Harry Reid collected a $1.1 million windfall on a Las Vegas land sale even though he hadn’t personally owned the property for three years, property deeds show.
In the process, Reid did not disclose to Congress an earlier sale in which he transferred his land to a company created by a friend and took a financial stake in that company, according to records and interviews.
The Nevada Democrat’s deal was engineered by Jay Brown, a longtime friend and former casino lawyer whose name surfaced in a major political bribery trial this summer and in other prior organized crime investigations. He’s never been charged with wrongdoing except for a 1981 federal securities complaint that was settled out of court[…]
[…] The senator’s aides said no money changed hands in 2001 and that Reid instead got an ownership stake in Brown’s company equal to the value of his land. Reid continued to pay taxes on the land and didn’t disclose the deal because he considered it a “technical transfer,” they said.
They also said they have no documents proving Reid’s stake in the company because it was an informal understanding between friends. […]
[…] Senate ethics rules require lawmakers to disclose on their annual ethics report all transactions involving investment properties _ regardless of profit or loss _ and to report any ownership stake in companies.
Kent Cooper, who oversaw government disclosure reports for federal candidates for two decades in the Federal Election Commission, said Reid’s failure to report the 2001 sale and his ties to Brown’s company violated Senate rules. […]
[…] FEDERAL LAND SWAPS
Nevada land deeds show Reid and his wife first bought the property in January 1998 in a proposed subdivision created partly with federal lands transferred by the Interior Department to private developers.
Reid’s two lots were never owned by the government, but the piece of land joining Reid’s property to the street corner _ a key to the shopping center deal _ came from the government in 1994.
One of the sellers was Fred Lessman, a vice president of land acquisition at Perma-Bilt Homes.
Around the time of the 1998 sale, Lessman and his company were completing a complicated federal land transfer that also involved an Arizona-based developer named Del Webb Corp.
In the deal, Del Webb and Perma-Bilt purchased environmentally sensitive lands in the Lake Tahoe area, transferred them to the government and then got in exchange several pieces of valuable Las Vegas land.
Lessman was personally involved, writing a March 1997 letter to Interior lobbying for the deal. “This exchange has been through many trials and tribulations … we do not need to create any more stumbling blocks,” Lessman wrote.
For years, Reid also had been encouraging Interior to make land swaps on behalf of Del Webb, where one of his former aides worked.
In 1994, Reid wrote a letter with other Nevada lawmakers on behalf of Del Webb, and then met personally with a top federal land official in Nevada. That official claimed in media reports he felt pressured by the senator. Reid denied any pressure.
The next year, Reid collected $18,000 in political donations from Del Webb’s political action committee and employees. Del Webb’s efforts to get federal land dragged on.
In December 1996, Reid wrote a second letter on behalf of Del Webb, urging Interior to answer the company’s concerns. The deal came together in summer and fall 1997, with Perma-Bilt joining in.
In January 1998 _ just days before he bought his land _ Reid applauded the Lake Tahoe land transfers, saying they would create the “gateway to paradise.”
None of Reid’s letters mentioned Perma-Bilt. Reid’s office said the senator never met Lessman nor discussed the Lake Tahoe land transfer or his personal land purchase. A real estate attorney handled the 1998 sale at arms-length, aides said.
“This land investment was completely unrelated to federal land swaps that took place in the mid-1990’s,” Manley said.
Lessman said he never talked to Reid or asked for his help before the 1998 land sale, and only met the senator years later at a public event. “Any suggestion that the land sale between Senator Reid and myself is somehow tied in with the Perma-Bilt exchange is completely absurd,” Lessman said.
THE REZONING
Clark County intended for the property Reid owned to be used solely for new housing, records show. Just days before Reid sold the parcels to Brown’s company, Brown sought permission in May 2001 to rezone the properties so a shopping center could be built.
Career zoning officials objected, saying the request was “inconsistent” with Clark County’s master development plan. The town board in Spring Valley, where Reid’s property was located, also voted 4-1 to reject the rezoning.
Brown persisted. The Clark County zoning board followed by the Clark County Commission voted to overrule the recommendation and approve commercial zoning. Such votes were common at the time.
Before the approval in September 2001, Brown’s consultant told commissioners that Reid was involved. “Mr. Brown’s partner is Harry Reid, so I think we have people in this community who you can trust to go forward and put a quality project before you,” the consultant testified.
With the rezoning granted, Patrick Lane pursued the shopping center deal. On Jan. 20, 2004, the company sold the property to developers for $1.6 million. Today, a multimillion dollar retail complex sits on the land.
On Jan. 21, 2004, Reid received more than $1.1 million of the sale proceeds. Reid disclosed the money the following year on his Senate ethics report as a personal sale of land, not mentioning Patrick Lane.
Senator Reid is currently involved in another land scandal. This one involves 160 acres of property in Arizona whose value will be increased by a bridge to be built over the Colorado River. A bridge earmarked by Senator Reid.
WASHINGTON — Incoming Senate Majority Leader Harry Reid vows to make reform of congressional earmarks a priority of his tenure, arguing that members need to be more transparent when they load pet projects for their districts into federal spending bills.
But last year’s huge $286-billion federal transportation bill included a little-noticed slice of pork pushed by Reid that provided benefits not only for the casino town of Laughlin, Nev., but also, possibly, for the senator himself.
Reid called funding for construction of a bridge over the Colorado River, among other projects, “incredibly good news for Nevada” in a news release after passage of the 2005 transportation bill. He didn’t mention, though, that just across the river in Arizona, he owns 160 acres of land several miles from proposed bridge sites and that the bridge could add value to his real estate investment.
It also appears that some Illinois Democrats, including Barack Obama may have some curious real estate dealings of their own.
If this is the “Clean Congress” God help us if we ever truly get a dirty one.
h/t Michelle Malkin and Ace
(these are just generic links because the relevant material is scattered)
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November 28th, 2006 at 5:19 pm
Meet the new boss, same as the old boss. The funny thing about the whole culture of corruption nonsense is that Congress has been corrupt since 1790. The reality of the 2006 election is: Now bad government just got more expensive (If your stupid enough to believe either party is honest I have bridge to sell you.). The GOP seems to do dishonest more cheaply than the Dems. Oh, well that is the way the Country crumbles.
December 8th, 2006 at 5:06 pm
jonny953
January 28th, 2007 at 7:09 am
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Harry Reid’s Desert Land Deal Still Under Scrutiny
Back in November as the Demo […]