Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans

For more than a decade, campaign contributions and lobbying fees doled out by Michael J. Malik, Sr. and his partners in the Ilitch Family are often attached to controversy, scandal, alleged corruption and illegal activities.  Consider that in 2010, Mrs. Michael Malik was forced to tell a Detroit-area Court that he had a consistent “pattern of bullying, intimidation and influence peddling.”

1^st Campaign Contribution Controversy Verified in the Media: 

Governor under Fire for Accepting Malik’s Money

In 1998, an investigation by the Augusta Chronicle revealed then-South Carolina Governor David Beasley had accepted campaign contributions from Detroit casino interests, namely Michael Malik and Tom Celani, an earlier Malik gaming partner.  They had played significant roles in a fundraiser organized for the South Carolina Governor in Detroit. 

At the time, South Carolina had no legalized gambling and the Governor had taken a public pledge not to accept or be influenced by gambling money.  While Malik and Celani helped bankroll a 1996 campaign to approve gambling in Detroit and were by 1998 affiliated with gambling interests some of which they controlled, no casinos had yet been approved or built in Detroit.  It was not common consideration that Detroit money might be gambling money.

Clearly, the hope was that people in South Carolina would not realize that contributions raised in Detroit were directly from those heavily invested in or affiliated with gambling. (Beasley Donors Disputed; Augusta Chronicle; 8.03.98)

Reporters & Watchdogs Make Case for All-Star Congressional Influence Peddling

On the eve of Major League Baseball’s 2005 All-Star Game (Detroit), an AP reporter broke a story about a $5,000 per head fundraiser being held in Detroit during the All-Star events to benefit then-Congressman Richard Pombo.  He was chair of the congressional committee overseeing Indian matters.  (Pombo no All-Star in watchdog group’s eyes; Associated Press; 7.13.2005)

Hosts of the All-Star Game fundraiser for Pombo were Malik and Christopher Ilitch, CEO of Ilitch Holdings.  His parents are Detroit Tiger’s owner Michael Ilitch and Marian Ilitch, Malik’s partner who reportedly has bankrolled the Shinnecock Indian Nation’s efforts to win approvals needed to establish gaming on Long Island. Perhaps most controversial was the timing of events.  Less than 48 hours after the Malik/Ilitch All-Star fundraiser, Pombo had scheduled a congressional hearing with an agenda item that read “Status of Settling Recognized Tribes’ Land Claims in the state of New York.”

For several congressional election cycles, the Ilitch Family and Malik had collectively been among Pombo’s top tier of donors. They had hosted or participated (bundling) in fundraisers on his behalf and also were flying him around the U.S. in a private jet. All they had invested in Rep. Pombo had remained under the radar until the All-Star Game story broke.  The watchdog groups Common Cause and Citizens for Responsibility and Ethics in Washington (CREW) helped break the story and kept the controversy alive for the remainder of the 2006 elections. Congressman Pombo failed to win re-election.

Failed to Disclose $26,600 Campaign Contribution; Fined $6,500 in CA

In 2004, the year before the All-Star Game controversy, Barwest, a Malik/Ilitch casino affiliate bankrolling attempts to secure approvals of various Indian gaming proposals in Barstow, CA, had quietly contributed $26,600 to Pombo’s local GOP Central Committee.  Malik failed to report the Barwest contribution to California election officials.  California’s Fair Political Practices Commission (FPPC) became aware of the possible violations of that state’s political reform laws and an investigation got underway.  In 2006, the FPPC found Malik’s Barwest violated state election law on two counts and fined Malik $6,500. (Press Release; California Fair Political Practices Commission; 10.24.2006)

Career Ending All-Star Scandals; Congressional Investigations

In 2003, Barbara Bonfiglio, the controversial Washington D.C. attorney/lobbyist/PAC treasurer, signed casino syndicator Michael Malik‘s MJM Enterprises & Development as a lobbying client of her firm Williams & Jensen. Malik paid Bonfiglio $220,000 between 2003 & 2005. Malik had matters before committees chaired by Reps. Richard Pombo, Don Young and Jerry Lewis -- Bonfiglio served as PAC treasurer/advisor to these members' leadership committees. In the midst of various GOP scandals including that involving House Speaker Tom DeLay, TPM Muckracker reported that Bonfiglio abruptly left Williams & Jensen in March 2006 and resigned as treasurer/advisor to various PACs and fundraising committees for Sen. Rick Santorum and Reps. Tom DeLay, Richard Pombo, Jerry Lewis, Don Young and others. She was subpoenaed at least once, in 2004, in connection with the DeLay corruption scandals. Malik distanced himself and affiliates from Bonfiglio but continued to invest heavily in her friends Pombo (Natural Resources/Native America Affairs), Young (Transportation) & Lewis (Appropriation).

Continued Affiliation with Controversial D.C. Lobbyists

When Malik left the Williams & Jensen lobbying firm, he took his business to Potomac Partners and lobbyist Richard Alcalde.  Alcalde particularly had a close relationship with Congressman Jerry Lewis, whose congressional district included the California desert community of Barstow, one of the communities where Malik/Ilitch have tried to build a casino.  At that time, Lewis was also the chair of the House Appropriations Committee.  Malik/Ilitch were hoping to get federal funds to support casino-related projects in Port Huron, Michigan, and other funds to support business ventures Malik pursues with the Bay Mills Indian Community.  Again, controversy ensued when the Washington Post reported that D.C. based Potomac Partners (Alcalde) was paying Lewis’ Las Vegas-based step-daughter to be a "strategic partner." 

Further, nearly all of Malik’s other affiliates and Indian partners had contracts with Wheat Government Relations, the lobbying firm of former Congressman Alan Wheat.  But in truth Wheat was funneling the funds to the Kessler & Associates (lobbyists Richard S. Kessler, Billy Lee Evans).  With the funds to Kessler funneled through Wheat, Kessler could avoid publicly disclosing the firm was a lobbying for Malik, Malik’s affiliates and partners, and “Gaming” or “Native American” interests.  In 2004 alone, Malik/Wheat paid Kessler almost $300,000 using that scheme. In all Kessler was paid nearly $600,000. The following circumstances unfolded after the scheme filtering payments to Kessler & Associates was exposed: the Kessler firm submit revised disclosure documents recategorizing the Wheat client work as involving issues of Indian/Native American Affairs or Gaming, Gambling & Casinos; Billy Lee Evans ceased his lobbying career in 2007; and in 2008, Kessler & Associates was disbanded.  Richard Kessler formed Hamilton Advisors in 2008 and has lobbied on behalf of one or two clients each year since.  The Wheat firm has continued to lobby on behalf of various Malik/Ilitch affiliates and partners.

Failed To Disclose Another 17 CA Contributions Totaling $26,500; Fined Again!

In 2006, Malik/Ilitch believed they were close to getting a gaming Compact approved in California. Governor Schwarzenegger had negotiated an amended Compact with the Los Coyotes Band of Indians, the tribe Malik/Ilitch bankrolled in California. That Compact was pending ratification by the State’s legislature.  Malik/Ilitch and their affiliates contributed heavily to those who would sit on the committees that would make the initial recommendation to ratify.  At the same time, California’s FPPC was wrapping up its investigation into the 2004 failure by Malik/Barwest to disclose the $26,600 to Pombo’s GOP Central Committee.  Malik was spending thousands to influence legislators in 2006 and despite the experience of the previous 2-year FPPC investigation and a significant fine, when he filed his official year-end 2006 major donor campaign disclosure reports, he indicated $0.00 in campaign contributions during the second half of 2006 when, in fact, he had actually given 17 lawmakers a total of $26,500.  Another FPPC investigation ensued and in 2009 the FPPC found Malik had violated California’s campaign reform laws in 2006 and this time fined $4,000. (Press Release; FPPC; 2.19.2009)

Malik’s NY Contributions Bring Controversy; NY Candidates Return Funds

During the 2010 campaign cycle Malik/Ilitch again focused their political contributions toward New York and candidates who might influence decisions that would allow them to expand gaming opportunities with the Shinnecock Indian Nation. Notably efforts to win approval to build a casino and other commercial development near the Belmont Park & Race Track on Long Island. They gave the maximum to New York’s U.S. Senators Charles Schumer and Kirsten Gillibrand. They sought to influence county and state lawmakers and Malik contributed to the campaign of now Governor Andrew Cuomo.  Contributions he made in New York races for the House of Representatives and State Senate became campaign liabilities.  News Day started reporting on the controversy surrounding Malik.  Several candidates including State Senators Jeff Klein and Craig Johnson reported returning Malik’s contributions. (Sens. Johnson, Klein to return Malik contributions; Daily News; 10.13.2010) Congressman Tim Bishop said he would return the funds too.

And now, there are questions surrounding the reporting of $15K Gov. Cuomo accepted from Malik.

Nearly $8 Million to Influence Lawmakers; Bordering on Unethical and Breaking Laws; and for the Purpose of Advancing Gaming Plans Fronted by Native Americans

Throughout the first decade of the 21^st Century, Malik/Ilitch and their affiliates have paid lobbyists more than $6,500,000 dollars and funneled more than $1,200,000 to politicians almost exclusively for the purposes of influencing matters of gambling, Native American affairs and transportation appropriations related to, as of yet unapproved, casino development projects they have pursued in three states (Bay Mills Indian Community – Port Huron, MI; Los Coyotes Band of Indians – Barstow, CA; Shinnecock Indian Nation – Long Island, NY).  Allegations of corruption and influence peddling and findings of illegal activity swirl around these Detroit casino syndicators and those they touch. And consider the possibilities that there are other investors behind the dozens of Malik/Ilitch gaming affiliates.  Who are they? What are their histories? Who are they contributing to or lobbying? What is their influence?

Reference Sources:

Search D.C. Lobbyists, Lobbying Firms, Lobbying Clients at OpenSecrets.org

Search Donors to Federal Campaigns Committees at OpenSecrets.org

Search Michigan Political Donors,  Lobbyists, Registered Casino Interests

Search California Political Donors,  FPPC

Search New York Political Donors

TheVerifiableTruth.com

See also:

• Controversy seems to always follow Detroit Casino Syndicator Michael MalikWhy is Detroiter Mike Malik Michael Malik: The Latest Life & Times of a Detroit Casino SyndicatorDragging former Hawaii Governor Waihee around Long Island, NY?
• Strange Bedfellows: Hawaii's Former Governor & Detroit's Gambling Promoter?
• Disclosure? And their tangled web: Detroiter Michael Malik, the Jack Utsick Ponzi Scheme, Shinnecock & Bay Mills Indians, and Akerman Senterfitt

•  To Bypass Carcieri and Other Off-Reservation Casino Hurdles, Detroiters Plan Introduction of "Mandatory Acquisition Legislation" in Congress
• It's Carcieri not Malik that poses Bigger Problems for the Shinnecock Nation
• What They Won't Tell You: Insights on Gateway Casino Resorts, its Detroit Organizers and Their Plans for Shinnecock Casinos

Intentional or not? Tribe's seasoned D.C. lobbyist has a history of negligent, delayed reporting

Consider that Richard Alcalde (aka Rick Alcalde) has been a D.C. lobbyist for more than a decade.

On 2.16.06, Potomac Partners D.C., a lobbying firm founded by Richard Alcalde, formally filed a lobbying registration form revealing it had been representing the Shinnecock Indian Nation for more than 10 months. Alcalde indicated on that registration form that the firm was not being paid by any affiliated organization to represent the tribe.

Potomac Partners D.C. then late-filed, on 3.02.06, both its Mid-Year 2005 and Year-End 2005 reports of lobbying activity on behalf of the Shinnecock which totaled $120,000 in payments.

And then, more than three years after Alcalde (Potomac Partners) was hired to represent the Shinnecock Indian Nation, Alcalde amended the original registration form to indicate that an affiliate of the tribe, Gateway Casino Resorts, was paying the tribes bills and directing its lobbying activity.

Based on details available at OpenSecrets.org -- and the reliability of Alcalde's disclosures -- Alcalde and his firm Potomac Partners D.C. have been paid $430,000 to represent the Shinnecock starting in 2005.

Detroit-based Gateway Casino Resorts is one of several entities formed by Michael Malik and Mrs. Marian Ilitch to bankroll the Shinnecock tribe’s efforts to receive federal recognition and then build a casino resort on Long Island. Potomac Partners D.C. and its lobbyists (Alcalde and Daniel Feliz) have represented other Malik/Ilitch affiliates as well: MJM Enterprises & Development and Blue Water Resorts.

In recent years, Acalde has found himself in the middle of several Capitol Hill scandals involving Rep. Jerry Lewis (R-CA) and Rep. Don Young (R-AK). Notably Alcalde is at the middle of an ongoing investigation into a $10 million highway earmark for a Florida interchange (Coconut Rd.) reportedly carried by Young. That scandal involves Alcalde’s clients including Daniel J. Aronoff; Aronoff’s Landon Companies and its associates; Florida Gulf Coast University; and others. As TPMmuckraker.com and the Wall Street Journal reported, Alcalde is one of Young's "A-Team" of lobbyists who are to be granted unfettered access to Young's staff.

Young was the former chair of the House Resources Committee and until recently was ranking member of that committee which oversees Indian matters.

Pelosi pressured to replace Rep. Rangel; GOP has not replaced Reps. Young or Lewis

Politico is reporting that House Speaker Nancy Pelosi is facing growing pressure to replace Rep. Charles B. Rangel (D-N.Y.) atop of the powerful Ways and Means Committee. For now however, writers John Bresnahan & Patrick O'Connor conclude:

Pelosi also has breathing room within her own caucus. Republicans tried to turn Rangel into a campaign issue during the recent elections, calling on Democratic challengers and incumbents to return the hundreds of thousands of dollars in campaign contributions that Rangel has handed out in recent years, but Democrats largely ignored this effort.

Democrats have countered Republican attacks on Rangel by pointing out that Boehner has not ousted Reps. Don Young (R-Alaska) and Jerry Lewis (R-Calif.) from high-ranking committee posts despite ethics allegations and FBI investigations of both men...

Is it a coincidence or not that a team of Detroit casino syndicators lead by Marian Ilitch and Michael J. Malik, Sr., happens to have questionable lobbying and campaign contribution ties to Reps. Rangel, Young and Lewis. The Ilitch/Malik team has contributed at least $89,000 to political committees controlled directly by those three members of congress.

Various Ilitch/Malik affiliates and partners (Bay Mills Indian Community, MJM Enterprises, Blue Water Resorts, etc.) have a hired lobbyists (Alan Wheat, Wheat Government Relations; Richard Alcalde and Daniel Feliz, Potomact Partners DC; Richard Kessler and Billy Lee Evans, Kessler & Assoc.; Barbara Bonfiglio, Williams & Jensen) who have been at the center of controversy and investgations involving the three Congressmen referenced above.

Former controversial PAC treasurer Bonfiglio is Pfizer PAC secretary

Barbara Bonfiglio, the controversial attorney/lobbyist/PAC treasurer who'd previously been at the D.C. lobbying/law firm Williams & Jensen is now Senior Corporate Counsel at the drug-maker Pfizer, Inc.

In 2003, Bonfiglio signed casino syndicator Michael Malik (MJM Enterprises & Development) as a client of Williams & Jensen. Malik paid Bonfiglio $220,000 between 2003 & 2005. Malik had matters before committees chaired by Reps. Richard Pombo, Don Young and Jerry Lewis -- Bonfigilio served as treasurer/advisor to these members' leadership PACs.

TPM Muckracker reported that Bonfiglio abruptly left Williams & Jensen in March 2006 and resigned as treasurer/advisor to various PACs and fundraising committees for Sen. Rick Santorum and Reps. Tom DeLay, Richard Pombo, Jerry Lewis, Don Young and others. She was subpoenaed at least once, in 2004, in connection with the DeLay scandals.

The Pfizer PAC's 2005-2006 Published Report notes that Bonfiglio was Secretary of Pfizer PAC. During the 2006 election cycle, Pfizer PAC contributed $3,678,493 to federal committees.

Among the small army of lobbying firms employed by Pfizer, Inc., Bonfiglio's former law/lobbying firm Williams & Jensen. Serving as one of Pfizer's lobbyists at W&J is Susan Hirschmann (DeLay's former Chief of Staff). The ladies are apparently close personal friends.

Bonfiglio reported that Hirschmann was a lobbyist for Malik's MJM Enterprises & Development between 2003 & 2005.

Bonfiglio, Senior Corporate Counsel in the D.C. offices of Pfizer, was listed among the "Distinguished Faculty" who spoke at the American Conference Institute's 2008 Corporate Lobbying and Government Affairs Conference.

Bonfiglio contributed $26,722 to various federal committees and PACs since 2005.

TPMmuckraker reports on Congressional investigations targeting four of casino syndicator's "friends"

in its "Today's Must Read" post, TPMmuckraker reports the following "friends" of Detroit casino syndicator Michael J. Malik (and the Ilitch Family) are under investigation for ethics violations and other wrongdoings:

1. Congressman Don Young (R-AK 1st)
TPMmuckracker: Young's Scandals from Abramoff to Zachares

See these related posts at TheVerifiableTruth.com:

• Why did a Detroit-based casino syndicate with interests in Barstow front travel costs for Alaska's Rep. Don Young?
• Is the Gulfstream G-IV private aircraft pictured on this postcard co-owned by the Ilitch Family?
• Daniel Aronoff and Mike Malik have similar relationships with Rep. Don Young
• Michigan Developer directed political funds to Rep Don Young and got $20 million earmarked for Florida road project
• There can be no question why Michael Malik found Rep. Don Young to be such an attractive political figure
• Tribe hoped language slipped into 2004 Transportation Bill would grant approvals for Port Huron casino
• UPDATED: Tribal leader admits lobbyists were trying to sneak casino plans through Congress without alerting opposition
• You can tell a lot about a Capitol Hill lobbyist by the company they keep
• PoliticalMoneyLine: Rep. Don Young pays Akin Gump $25,000 & gets $100,000 GOP refund
• Rep. Young (R-AK) flying around in Detroit Casino Developers' private jet
• Rep. Don Young's Top 10 donor list includes prominent Great Lakes area families bankrolling 'off-reservation' casino projects
• Casino Developer who fronted travel & entertainment costs for Rep. Don Young (R-AK) did the same for former Rep. Richard Pombo (R-CA)
• Former congressional aide linked to Reps. John Doolittle and Don Young pleads guilty
• Ilitch & Troha families responsible for 70% of the money Rep Don Young (R-AK) took in on his best fundraising day of the entire 2006 campaign
• Casino developer indicted on charges he laundered political contributions via his family
• NewsMeat.com provides a snapshot look at Ilitch Family DC political contributions and bundling practices
• Do these people really believe Marian Ilitch is a "homemaker" or are they playing along with the game
• GOP Congresswoman received at least $74,000 in bundled funds from Ilitch Family sources after introducing bill for syndicator-backed Indian casino
• Six bills in Congress, over six years & political gifts in the six figures: That's what Ilitch Family has invested in Port Huron Casino deal
• Malik/Ilitch Contributions to Rep. Don Young

2. Congressman John Doolittle (R-CA )
TPMmuckraker: The Doolittle Investgations

See these related posts at TheVerifiableTruth.com:

• Family Affair: Members of Congress pay family members with political funds
• Ethics Issues Confront Crop of Calif. Congressmen
• Doolittle committee disclosure falsely reported young rookie lobbyist (son of a Doolittle political operative) as “retired”
• Rep. John Doolittle's longtime political operative maneuvering behind the scenes of Barstow casino project
• You can tell a lot about a Capitol Hill lobbyist by the company they keep
• Former congressional aide linked to Reps. John Doolittle and Don Young pleads guilty

3. Congressman Rick Renzi (R-AZ )
TPMmuckraker: Rick Renzi Under Investigation

See these related posts at TheVerifiableTruth.com:

• Rep. Renzi's committee, donor may have falsified disclosure records
• You can tell a lot about a Capitol Hill lobbyist by the company they keep

4. Congressman Jerry Lewis (R-CA )
TPMmuckraker: Lewis is under investigation

See these related posts at TheVerifiableTruth.com:

• Family Affair: Members of Congress pay family members with political funds
• You can tell a lot about a Capitol Hill lobbyist by the company they keep
• CleanUpWashington.org Hall of Shame The Story on Hall of Shame Candidate Rep. Jerry Lewis
• Rep. Lewis, Daughter used same PAC Lawyer Barbara Bonfiglio
• Controversial D.C .Lobbyists/PAC Treasurers Barbara Bonfiglio and Mark Valente III have ties to Team Ilitch; Reps J. Lewis, C. Miller, R. Pombo
• Ethics Issues Confront Crop of Calif. Congressmen
• Concerns raised about Malik & Bay Mills Tribe's Plastics Business long before $900k federal grant awarded
• Malik contributions to Jerry Lewis

TPMmuckracker keeps a running tally of investigations and prosecutions of both Democrats and Republicans on their Grand Ole Docket.

Or click on any of the "labels" (categories) below for a compendium of posts at TheVerifiableTruth.com (TVT) for that category.

Sen. Stabenow, Rep. Miller help bring more powerful colleagues on board off-reservation casino bandwagon

click for Congressional Power Rankings Lists

Congress.org rates each current Member of Congress on various criteria that demonstrates power and the ability to be effective in Congress in 2007. This results in a Power Score that ranks members for overall power in each chamber of Congress.

Visit Congress.org to see a complete ranking. In the meantime, here's how a few of the congressional players stack up who are said to be involved on one side or the other of the Ilitch/Malik backed plans for an off-reservation casino in Port Huron, Michigan.

Senate
#1 Senator Harry Reid - said to be for
#8 Senator Carl Levin - for
#42 Senator Debbie Stabenow - for

House
#22 Rep. Nick Rahall - said to be for
#91 Rep. Bart Stupack - for
#118 Rep. Jerry Lewis - supportive of Bay Mills
#140 Rep. Don Young - for
#274 Rep. Mike Rogers - against
#401 Rep. Candice Miller - for

Although Stabenow and Miller appear to rank lowest within their respective chambers; they were easier marks for the Ilitch/Malik team (recipients/beneficiaries themselves of more than $200,000 in direct political contributions) and reportedly have been effective advocates introducing bills and bringing higher ranking members on board.

Rep. Don Young's political defense legal bills highest in House

7.17.07

By Paul Kane

washingtonpost.com Staff

Justice Department probes of congressional corruption continued to provide big business for Washington's white-collar criminal defense attorneys, who billed at least $1 million in the second quarter to current and former House members involved in federal investigations.

With at least 11 such politicians -- including several forced from office last fall -- facing probes including the Jack Abramoff bribery conspiracy and the House page instant-messaging scandal, top-flight legal talent was in high demand.

The largest payout for current members came from Rep. Don Young (R-Alaska), whose campaign shelled out more than $262,000 to a pair of top Washington firms: Akin Gump Strauss Hauer & Feld, which took more than $242,000, and Tobin, O'Connor, Ewing & Richard.

Unlike some of the others on the list, Young has not been the target of a subpoena. But Mark Zachares, a former staffer on the House Transportation and Infrastructure Committee while Young chaired it, pleaded guilty this spring to trying to help Abramoff's clients in exchange for the promise of a future job at his firm.

In addition, Young's current district director in Alaska recently lobbied for an energy conglomerate whose chief executive pleaded guilty in May to bribing several state lawmakers. Young and Sen. Ted Stevens (R-Alaska), who has hired his own team of lawyers to deal with that probe, were the top recipients of donations from the executive and that company.

After spending $25,000 on Akin Gump in the first quarter, Young's campaign told reporters the funds were spent out of "caution." Yesterday, his congressional office deferred comment to Young's campaign staff, which declined to answer questions about his legal aid.

Former representative Mark Foley (R-Fla.), who resigned last fall after the FBI began investigating a series of inappropriate instant messages with teenage boys who were formerly House pages, spent more than $277,000 from April through June from his campaign funds, according to reports filed this weekend with the Federal Election Commission.

The FEC and congressional ethics committees have routinely allowed members to tap their campaign war chests to pay legal bills if they are under investigation for actions taken in the course of being a member of Congress.

"Lawyers rejoice," said Norman J. Ornstein, a congressional scholar at the American Enterprise Institute. Ornstein noted that the average cost for one of the lawyers who handle ethics investigations has grown to $600 an hour. "This is serious stuff. . . . Obviously, it's also a reflection of the fact that we've a lot of folks under investigation," Ornstein added.

Rep. J. Dennis Hastert (R-Ill.), the former speaker who underwent questioning from the ethics committee during its review last fall of the Foley matter, spent nearly $60,000 on legal bills in April and May, slightly less than the $70,000 he paid to his attorneys in the first quarter. Rep. John A. Boehner (R-Ohio) , his successor, spent $52,939 on legal bills related to his civil lawsuit against Rep. Jim McDermott (D-Wash.) over a leaked copy of a conference call Boehner participated in more than 10 years ago.

Rep. Jerry Lewis (R-Calif.), who has faced scrutiny over earmarks he provided to campaign contributors, spent $31,000 on his defense. Rep. Rick Renzi (R-Ariz.), whose family business was raided by the FBI last April, spent $25,000. Rep. Alan B. Mollohan (D-W.Va.), whose investments and campaign contributions have been under investigation, spent $22,671. And Rep. John T. Doolittle (R-Calif.), who was closely linked to Abramoff, spent $50,584.

Defeat at the ballot box does not mean the bills go away.

Former congressman Curt Weldon (R-Pa.), whose daughter's offices were raided by the FBI just before he lost his reelection bid, paid $25,000 to his lawyers this spring as investigators continued to examine official actions taken on behalf of his daughter's lobbying clients. Weldon also paid $5,000 to a firm for "investigative services."

Former congressman J.D. Hayworth (R-Ariz.), who has faced scrutiny over his relationship with Abramoff, paid more than $102,000 to a legal team, according to his FEC report, and still owes $106,000.

Family Affair: Members of Congress pay family members with political funds

6.17.07

Lawmakers used campaign funds to pay relatives

By Matt Kelley, USA TODAY

...Citizens for Responsibility and Ethics in Washington (CREW) found nearly $3.5 million in campaign payments to relatives during the past three election cycles, from 2001 to 2006. Campaigns paid about $1.6 million to firms owned by or employing the lawmakers or their relatives, the group found...

Melanie Sloan, a former federal prosecutor who heads the watchdog group, says paying relatives with campaign money gives the impression that Congress members use their "position as a profit center for the family."

"A member of Congress would not be allowed to put that family member on their office payroll," Sloan says. "The logic should be the same. If they can't put them on the official payroll, why should they put them on the campaign payroll?"

Sloan says her group started the study last year amid criticism of some members of Congress for their family ties to campaign fundraising. For example, the campaign and political action committee for Rep. John Doolittle, R-Calif., paid a 15% commission to his wife's fundraising business, which also did work for lobbyist Jack Abramoff, who was sentenced to prison last year for fraud. Doolittle stepped down from his committees in April after FBI agents raided his wife's offices in their suburban Washington home. Doolittle is not in the CREW study because he was not a committee or subcommittee leader... (Full Story)

RELATED RECIPIENTS: Who got paid?

CREW's Full Report: Family Affair

FAMILY AFFAIR: Summary and Conclusions

http://www.usatoday.com/news/washington/2007-06-17-campaign-funds_N.htm#Close

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Detroit Casino Syndicators' Connection
On the CREW lists published in USA Today:

• Rep. Buck McKeon (R-Ca 25th) whose district includes Barstow, CA and Barstow Mayor Lawrence Dale is his political appointee to the regional GOP committee (his wife has been paid $263,168 funneled through his campaign); and


• Rep. Bart Stupak (D-Mi 1st) whose district includes the Bay Mills Indian Community and who has sponsored numerous bills to push an off-reservation casino for the Bay Mills Indians (his wife and son have been paid $132,036 from campaign funds).

Michael J. Malik, Sr. and Mrs. Marian Ilitch have bankrolled plans to develop and manage two Indian casinos in Barstow and various casino plans for the Bay Mills Indians the last decade. They've established a track record of contributions totaling $9,000 to Rep. Stupak; but oddly enough, there are no contributions recorded to Barstow area Rep. McKeon.

The pair of Detroit casino syndicators and their family members have contributed generously to other California lawmakers and their causes including:

• Rep. Richard Pombo (R-Ca 11th)
  $65,000 to $100,000


• Rep. Jerry Lewis (R-Ca 41st)
  $9,500


• other California lawmakers
  $65,000

These disclosures analyzed in the CREW report are made available because campaign committees must report their explenditures to the Federal Elections Commission. However if individuals or organziations lobbying Members of Congress hire or retain the services of a member of that Congressional Representative's family directly and for non-lobbbying and non-political campaign purposes; there is little, if any, disclosure required.

A corporation or individual could retain a Member's son to provide strategic counsel or empty waste baskets and if the son didn't lobby his father, but representatives of the Corporation or the individual employing the son did, payments to the son would not necessarily ever be disclosed. Certainly there's nothing stopping the coporate lobbyists from mentioning to the Member what a "fine job" his/her son is doing on their behalf as they leave the Member of Congress' office.

Stumble It!

Ethics Issues Confront Crop of Calif. Congressmen

6.09.07

UNDER SCRUTINY

Incumbent California GOP lawmakers facing ethics questions:

Rep. John Doolittle. The nine-term conservative from far Northern California is under investigation in the Jack Abramoff influence-peddling scandal that's already resulted in 12 convictions of congressional aides, Bush administration officials and others, including a guilty plea from one former Republican member of Congress, Bob Ney of Ohio.

Doolittle, whose ties to Abramoff include accepting his campaign money and helping his clients, relinquished his seat on the Appropriations Committee in April after FBI agents raided his home in Virginia with a search warrant for a fundraising and event-planning business run there by his wife, Julie, that had done work for Abramoff and drawn commissions from Doolittle's campaigns.

Doolittle denies wrongdoing.

Rep. Jerry Lewis. In his 15th term representing inland Southern California, Lewis was chairman of the Appropriations Committee last year when federal prosecutors in Los Angeles began investigating his ties to a lobbyist who represented a number of towns and businesses in Lewis' district. Clients of lobbyist Bill Lowery received valuable federal spending approved by Lewis' committee, and the firm and its clients have been generous donors to Lewis and his campaign committees.

Lewis remains top Republican on the Appropriations Committee and denies wrongdoing.

Rep. Gary Miller. A real estate developer serving his fifth term representing inland Southern California, Miller drew scrutiny after the Los Angeles Times published stories highlighting a tax deferral strategy he used in connection with profitable real estate sales to two Southern California towns outside his district. Officials in both towns say they've been interviewed by FBI agents, but Miller says he's done nothing wrong.

Rep. Ken Calvert. A year ago the FBI obtained copies of Calvert's annual financial disclosure forms after the Los Angeles Times reported on federal funding Calvert pushed for a planned freeway interchange 16 miles from property he sold for a large profit. Calvert denied any connection or any profit to himself and said he'd done nothing wrong; there's no public evidence that he's under active investigation. Still, conservative bloggers protested after House GOP leaders tapped Calvert to replace Doolittle on the Appropriations Committee.

California GOP lawmakers who left Congress last session under an ethics cloud:
Randy "Duke" Cunningham. The former GOP House member from the San Diego area pleaded guilty in November 2005 to taking $2.4 million in bribes from defense contractors and was sentenced to more than eight years in prison.

Richard Pombo. Pombo was chairman of the House Resources Committee when he lost re-election last November amid questions about his environmental policies and his ties to Abramoff. There was never public evidence that Pombo was under federal investigation. He lost to Democrat Jerry McNerney, a political neophyte, in a GOP-leaning Central California district.

Source: AP research

AP writer Erica Werner, "Ethics Issues Confront Calif. Politicians" and "California produces big crop of ethically challenged congressmen"

JohnsonClarke Associates - political consultants for both Doolittle & Pombo.

Novak hears confirmed rumors Rep. Lewis could retire in 2008, Calif races could be key focus

posted 5.30.07 by Robert Novak at HumanEvents.com

Novak suggests California could be a major focus in Congressional races in 2008 with one possible pickup and a series of potential retirements currently being discussed (in some cases just rumored), there could be a large freshman class coming out of the Golden State next year.

• District 4: Rep. John Doolittle (R) is being scrutinized by the Justice Department. Despite his firm protestations of innocence, there is no question that Republicans view him as a liability and do not want to lose his heavily GOP seat because of accusations of impropriety. He barely won re-election last year.


• District 11: Republicans feel confident that they can unseat freshman Rep. Jerry McNerney (D), who defeated Rep. Richard Pombo (R) last year 43 to 37 percent in a Republican district under unusual circumstances. Pombo had to campaign under an ethical cloud and amid a strongly anti-Republican mood. Former state Assemblyman Dean Andal (R), who announced his candidacy this month, has represented about half of the area in one capacity or another for some time, and would be formidable against McNerney. Another possible candidate is Assemblyman Guy Houston (R). Both are conservatives.


• District 24: Rep. Elton Gallegly (R) decided to retire last cycle for health reasons, only to change his mind at the last minute and run. California Republicans continue to wonder what his '08 plans will be. The congressman may not be sure himself.


• District 41: Both on Capitol Hill and in California, Republicans say that Rep. Jerry Lewis (R) is unlikely to seek re-election. This despite the fact that Lewis is not currently the target of an inquiry, and there have been no new developments in the ethical allegations against him. Lewis won last year with two-thirds of the vote against a token Democrat. Lewis has not tipped his hand at all, yet talk of potential Republican replacements already abounds. Conservative GOP San Bernardino County Assessor Bill Postmus is said to be interested.

Republicans do not want to see either Lewis or Doolittle resign, because they do not want to spend money now on a special election. The money issue will also loom in the general election of 2008, but unless that election goes as badly for the GOP as last year's, Republicans can take heart in the fact that none of California's congressional districts is considered competitive. If there is anywhere you would prefer to have retirements, this is the state.

Representatives Ken Calvert (R) and Gary Miller (R) are also facing ethical questions -- respectively over earmarks and a federal tax dispute -- but they are perceived to be in better shape than Lewis or Doolittle. Still, as the 2006 election cycle demonstrated, this can always change with little notice.

Washington Post: Eight Members of Congress officially under investigation

5.30.07

House Members Under Investigation

Six House Republicans and two Democrats recently under investigation by federal authorities:
___
Republicans

• Ken Calvert of California, 8th term. The FBI agent reviewed copies of Calvert's financial disclosure reports after a newspaper reported he steered federal money for a planned freeway interchange 16 miles from property he sold for a large profit.


• John Doolittle of California, 9th term. The FBI in April searched his Oakton, Va., home, where his wife Julie, ran a bookkeeping and event-planning business. Among her clients was now-jailed GOP lobbyist Jack Abramoff.


• Jerry Lewis of California, 15th term. Prosecutors are examining Lewis' dealings with lobbyists and contractors during the time he chaired the House Appropriations Committee.


• Gary Miller of California, 5th term. Federal agents have looked into land deals involving Miller.


• Tim Murphy of Pennsylvania, 3rd term. Authorities are investigating whether Murphy's legislative aides performed campaign work on government time.


• Rick Renzi of Arizona, 3rd term. FBI agents raided his wife's insurance business amid reports that Renzi paid substantial back taxes to settle charges that his businesses improperly paid for his first congressional campaign.

___
Democrats

• William J. Jefferson of Louisiana, 9th term. FBI agents, pursuing a bribery probe, raided Jefferson's congressional office and his home, where they found $90,000 in a freezer.


• Alan Mollohan of West Virginia, 13th term. Mollohan stepped down from the House ethics committee after federal agents began a probe of federal funds he helped steer to nonprofit groups he founded.

http://www.washingtonpost.com/wp-dyn/content/article/2007/05/30/AR2007053001567_pf.html

Since 2004, two dozen Members of Congress spent $5 million from campaign contributions on legal defense

5.17.07

Campaign funds going to legal fees

By Ken Dilanian, USA TODAY

Two dozen current and former members of Congress caught up in criminal investigations or ethics inquiries spent more than $5 million in campaign funds on legal fees during the last 27 months covered by campaign-finance records.

The spending reflects a spate of scandals that were a factor in the Democratic takeover of Congress last year and, for some lawmakers, remain a problem. Eight current members have been publicly identified as being under investigation.

While campaign donations may not be spent for personal use, the Federal Election Commission (FEC) has ruled that fighting to stay out of jail is a legitimate political activity as long as the allegations of wrongdoing relate to conduct in office.

The biggest spender still in Congress is Rep. Jerry Lewis of California, the ranking Republican on the House Appropriations Committee, records show. His campaign paid $905,800 to law firms in the last two-year campaign cycle and the first three months of this year, records show. The Justice Department has been investigating his relationships with lobbyists and companies.

Lewis' office did not respond to phone messages.

Rep. John Doolittle, R-Calif., whose house recently was searched by the FBI, spent $149,200 during that 27-month period. Rep. Rick Renzi, R-Ariz., whose wife's insurance business also was searched by federal agents recently, paid $101,800.

Renzi, under scrutiny for a land deal, said he has been the victim of "leaked stories, conjecture and false attacks." Doolittle, whose wife consulted for convicted lobbyist Jack Abramoff, proclaimed his innocence and criticized the search.

"Since you've started to see the Justice Department become much more active, the members have sought serious legal help," said Kent Cooper, of PoliticalMoneyLine, a non-partisan group that tracks money in politics.

Among Democrats, Sen. Robert Menendez of New Jersey, who declined to comment, spent $91,900 from December through March. Federal investigators have been looking into a real estate deal.

Rep. William Jefferson, D-La., under investigation over bribery allegations, has a separate legal defense fund governed by House rules that has raised $136,000, according to the latest filing.

Even those who have left Congress are allowed to use their campaign funds to pay legal bills, according to the FEC.

Former congressman Mark Foley, R-Fla, who left in September after it emerged that he had been making sexual advances to congressional pages, paid his lawyers $253,768 from his campaign fund since December, FEC records show.

Campaigns don't have to disclose the specific purpose of legal payments, so it's not always possible to distinguish standard legal bills from criminal defense fees. But routine election compliance typically costs no more than $12,000 a year, said attorney Karl Sandstrom, a former FEC vice chairman who advises campaigns on compliance issues.

Rep. Doolittle's Appropriations Committee replacement also under scrutiny of FBI

5.10.07

Calvert's appointment creates concern

By Wendy Leung
Staff Writer

Rep. Ken Calvert, R-Riverside, was temporarily appointed to the powerful House Appropriations Committee on Wednesday, taking the seat of Rep. John Doolittle, R-Granite Bay.

Doolittle stepped down after it was disclosed that FBI agents in April had raided his Virginia home in a probe into his connections to lobbyist Jack Abramoff.

Calvert is expected to serve for the remainder of the congressional session or until Republican leadership decides otherwise.

But Calvert's appointment to replace a controversial congressman snarled in the Abramoff scandal is raising eyebrows because Calvert himself is under close FBI scrutiny.

Calvert, who represents western Riverside County, has caught investigators' attention because he had been receiving campaign donations since 1999 from a lobbying firm that has close ties with Rep. Jerry Lewis, R-Redlands.

The FBI had been investigating links between Lewis, a ranking member of the House Appropriations Committee, and the lobbying firm Copeland, Lowery, Jacquez, Denton & White.

Neither Lewis nor Calvert has been charged with any wrongdoing. But that Calvert's name has been linked to these probes and is temporarily replacing the closely scrutinized Doolittle has some raising objections.

"Replacing John Doolittle, who's under FBI investigation, with Ken Calvert, who's under investigation for shady land deals, certainly doesn't `succeed in restoring trust between the American people and their elected leaders,"' said Fernando Cuevas, Western regional press secretary for the Democratic Congressional Campaign Committee. "Republicans need to get serious about ethics and accountability."

Cuevas was referring to a statement by House Minority Leader John Boehner, R-Ohio, who told CNN, "John (Doolittle) recognizes that if we are to succeed in restoring trust between the American people and their elected leaders, this action is necessary."

In addition to the FBI probe, the Riverside County grand jury sought documents from the Jurupa Community Services District on a land deal with Calvert's real-estate firm, Calvert Properties. The district had sold a 3.3-acre parcel to Calvert and his associates for $1.2million.

Staff writer Wendy Leung can be reached by e-mail at wendy.leung@dailybulletin.com, or by phone at (909) 483-9376.

Corruption is systemic not party specific

On the Verge of Political Reform
Getting caught vs. coming clean

By David Sirota

Can you hear that sound coming from Washington? It is the Democrats licking their chops as Republicans seem to collapse under the weight of corruption scandals. With the indictment of former House Majority Leader Tom DeLay, R-Texas, on money-laundering charges, the salivating began. Then there was the guilty plea by Rep. Duke Cunningham, R-Del Mar (San Diego County), on bribery charges. Now, with indicted Republican Jack Abramoff signing a plea agreement that could bring down other lawmakers, we detect a hungry growl from the minority party.

The Democrats' excitement is understandable: Republicans as a whole have clearly embarrassed themselves, with California Republicans leading the charge in making their party a national joke. First there was Cunningham. Then came Rep. Jerry Lewis, R-Redlands (San Bernardino County), who was exposed for using his powerful positions on the House Appropriations Committee to lavish taxpayer-funded contracts on lobbying clients of his close friend, lobbyist and former California Rep. Bill Lowery. Now, two more California congressmen, Rep. John Doolittle, R-Rocklin (Placer County), and Richard Pombo, R-Tracy, are implicated in the Abramoff scandal, having taken large campaign contributions from Abramoff's clients.

In short, the GOP has humiliated itself in a way that only reinforces an image of the party that the public already holds: too beholden to big-money interests.

But underneath all the Democratic Party excitement about the GOP's corrupt missteps, a question still lingers: Is it enough for national Democratic Party leaders to simply point out their opponents' flaws?

The answer is likely no, especially if the flaws are related to corruption. The fact is the public has long believed politicians of both parties are bought and paid for by special interests. And, by and large, the public is right. (Full Story)

You can tell a lot about a Capitol Hill lobbyist by the company they keep

Richard “Rick” Alcalde is lobbyist for Michael J. Malik, Sr. and his Indian Casino partners the Shinnecock Indian Nation. Malik’s partner is Mrs. Marian Ilitch.

Lobbyist Richard Alcalde (Rick Alcalde), currently the principal at Potomac Partners D.C. contributed $8,500.00 to Members of Congress from January – March 2007. It’s not the amount that’s raising red flags, but the individual members of Congress to whom he wrote checks.

Among the six Members of the House he contributed to, Reps. Rick Renzi, John Doolittle, Jerry Lewis and Gary Miller have each been placed on a list of “The 20 Most Corrupt Members of Congress” by Citizens for Responsibility & Ethics in Washington (CREW).

FBI Investigators raided the Renzi family offices in Arizona and the Virginia home of John Doolittle in April. The pair has stepped down from some key committee assignments.

Former aides to or family members of Doolittle, Young, and Lewis are under investigation or have plead guilty to charges stemming from the Abramoff and Rep. Randy “Duke” Cunningham investigations. Neither Young nor Lewis have stepped down from any leadership positions.

Alcalde Contributions Jan – Mar 2007 ALASKANS FOR DON YOUNG INC. $1,000.00 [View Image] Rep. Don Young (R-AK) RICK RENZI FOR CONGRESS $1,000.00 [View Image] Rep. Rick Renzi (R-AZ) JOHN T. DOOLITTLE FOR CONGRESS $1,000.00 [View Image] Rep. John Doolittle (R-CA) CITIZENS FOR HARKIN $2,000.00 [View Image] Sen. Tom Harkin (D-IA) FRIENDS OF SENATOR CARL LEVIN $1,000.00 [View Image] Sen. Carl Levin (D-MI) MALONEY FOR CONGRESS $ 500.00 [View Image] Rep. Carolyn Maloney (D-NY) LEWIS FOR CONGRESS COMMITTEE $1,000.00 [View Image] Rep. Jerry Lewis (R-CA) GARY MILLER FOR CONGRESS $1,000.00 [View Image] Rep. Gary Miller (R-CA)

Detailed report compiled from PoliticalMoneyLine.com.

The Washington Post revealed that Alcalde had hired the stepdaughter of Rep. Lewis (she lives in Las Vegas) to provide counsel to Alcalde from time to time. And this past year, Alcalde hired the rookie son of Doolittle’s long-time political aide John Feliz to lobby for Native American casino interests (MJM Enterprises and the Shinnecock Indian Nation). The son, Daniel “Dan” Feliz, also has a side contract with Blue Water Resorts, another group tied to Indian casinos.

Alcalde has previous affiliation with the Federalist Group; Alcalde & Fay. He has also represented the Sault St Marie Tribe Chippewa Indians, Station Casinos, City of North Las Vegas, Nevada, City of Las Vegas, NV, Detroit International Bridge, Landon Companies (Daniel Aronoff) and others. Alcalde appears to have had some relationship with former PAC Treasurer/Lobbyist Barbara Bonfiglio (formerly of Williams & Jensen) who seems to have all but disappeared.