Posts on “Rick Renzi”

Lawmakers Give Back to the Legal Community

Recently, House lawmakers filed their third quarter campaign disclosure reports -- and you know what that means! It's time for another round-up of how much lawmakers have dropped on lawyers to defend themselves from investigation.

Rep. Jerry Lewis (R-CA), with nearly $1 million in total fees dating back to last year, remains the undisputed House champion, but Rep. Don Young (R-AK) is charging hard.

Here's our list of legal spending habits for the past three months, as well as an estimate of how much each lawmaker has spent in campaign funds to date and to which firms:

Rep. Don Young (R-AK): $183,785
So far, Young has spent $447,000 on the law firms Akin Gump Strauss Hauer & Feld and Tobin O'Connor Ewing & Richard (the vast majority of which is spent on Akin Gump). He's under investigation for his relationship with Bill Allen, former CEO of oil-services firm.

Rep. Rick Renzi (R-AZ): $111,042
Renzi has paid around $148,000 to law firms Patton Boggs LLP and Steptoe & Johnson LLP (primarily on Patton Boggs). Renzi remains under investigation by the FBI for pushing legislation that would advantage political supporters and former business partners. His house was raided by the FBI this past April. Renzi has announced that he will not seek another term.

Rep. Alan Mollohan (D-WV): $55,000
Mollohan has spent $78,000 on the law firm Kellogg, Huber, Hansen, Todd, Evans & Figel. He has been under federal scrutiny since last May for earmarking funds for organizations connected to him.

Rep. Jerry Lewis (R-CA): $26,982
Lewis has spent over $987,000 on the law firms Gibson, Dunn & Crutcher and Williams & Jensen. He is being investigated for earmarks that he provided to campaign contributors, as well as his role in the Duke Cunningham scandal.

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Renzi: I'm Not Going Anywhere

From Roll Call:

Despite rumors to the contrary, embattled Rep. Rick Renzi (R-Ariz.) issued two statements Friday insisting that he has no intention of resigning....

“For several weeks, I have been the subject of leaked stories, conjecture, and false attacks about a land exchange,” the three-term Congressman said. “None of them bear any resemblance to the truth, including the rumor that I am planning on resigning.”


Hill: Renzi Didn't Report $200K Payment

From The Hill:

Rep. Rick Renzi (R-Ariz.) failed to disclose a $200,000 payment he received from a business partner in 2005 in apparent violation of House ethics rules. Prosecutors could use the omission as evidence that Renzi intended to conceal a transaction he knew to be controversial or even improper.

The $200,000 was a payment from James Sandlin to settle a debt related to a previous business transaction involving land in northeast Arizona, one of the lawmaker’s attorneys, Grant Woods, told a newspaper last week.

This explanation might have been expected to dispel suspicion that Sandlin gave Renzi an illegal gift in exchange for action Renzi took to help Sandlin sell a $4 million parcel of land.

But Renzi’s claim that Sandlin’s $200,000 payment was a legitimate business transaction is weakened by the fact that he failed to disclose it in his personal financial disclosure report for 2005 filed with the House clerk.

Today's Must Read

The revelations come fast and furious.

Last night, the AP reported that when the local press revealed that Rep. Rick Renzi's (R-AZ) was under investigation just weeks before the election, his top aide called U.S. Attorney Paul Charlton's aide to ask about it. Charlton was one of the U.S. attorneys who was fired little more than a month later. And even though Charlton's aide had reported the contact to the Justice Department (as the rules dictate), that report was not among the thousands of pages the Justice Department turned over to congressional investigators.

And now this. From The Wall Street Journal:

As midterm elections approached last November, federal investigators in Arizona faced unexpected obstacles in getting needed Justice Department approvals to advance a corruption investigation of Republican Rep. Rick Renzi, people close to the case said.

The delays, which postponed key approvals in the case until after the election, raise new questions about whether Attorney General Alberto Gonzales or other officials may have weighed political issues in some investigations....

Investigators pursuing the Renzi case had been seeking clearance from senior Justice Department officials on search warrants, subpoenas and other legal tools for a year before the election, people close to the case said....

...the investigation clearly moved slowly: Federal agents opened the case no later than June 2005, yet key witnesses didn't get subpoenas until early this year, those close to the case said. The first publicly known search -- a raid of a Renzi family business by the Federal Bureau of Investigation -- was carried out just last week....

...the Renzi case -- like many that involve members of Congress -- is being handled jointly by the local U.S. attorney and the department's public-integrity section. In such cases, a senior department official must approve requests for wiretaps and warrants and other formal legal steps.

There's another revelation in the piece: that investigators had lobbied Washington for clearance to tap Renzi's phone for months. That clearance was only given in October of last year. And unfortunately for the investigators, word broke of the investigation in late October -- disrupting their wiretap.

The allegations against Renzi are complicated, involving a land swap, allegedly channeling a kickback through a family company, etc. The Journal laid it all out in a piece this last weekend.

All this raises a question. The bosses at main Justice seem to have been similarly reluctant to proceed with regard to the Duke Cunningham probe. As TPM reported a couple of weeks ago, U.S. Attorney for San Diego Carol Lam had to wait sometimes for months for clearance on certain moves in her investigation. So is there a pattern here?

Renzi Resigns from Other Panel Seats

Continuing to backpedal after the FBI raided one of his family busineses last week, Rep. Rick Renzi (R-AZ) said in a statement today that he'll be resigning "all my committee assignments." Renzi already resigned from his seat on the sensitive House Intelligence Committee last week. He also holds seats on the Committee on Financial Services and Committee on Natural Resources.

This past weekend, The Wall Street Journal detailed the tangled business dealings that have investigators probing whether Renzi received a kickback on a land deal.

Here's Renzi's full statement:

"For several weeks, I have been the subject of leaked stories, conjecture, and false attacks about a land exchange. None of them bear any resemblance to the truth.

"So that no one can question the motivation behind the land exchange, which I and other leaders from both parties have argued is critical to the future of Arizona, I have spoken to Congressman Pastor who will introduce a new version of the Resolution Copper land exchange. In addition, I will take a leave of absence from all my committee assignments. I will continue to focus on important district work and issues critical to my constituents."

Are Renzi Scandals Connected?

Two scandals broke last night with Rep. Rick Renzi (R-AZ) at their centers. At first glance they have nothing in common. But a closer look reveals the deals now under federal scrutiny pivot on two central issues: Arizona's fragile but important San Pedro River, and Renzi's remarkable ability to aid his supporters by manipulating the waterway's health.

In a nutshell: Renzi cut one deal in 2003 that helped take water out of the San Pedro River, financially benefiting a major political backer but potentially devastating to the waterway, which is said to be vital for millions of migratory birds. The congressman made a second deal deal in 2005 ostensibly put water back into the river -- and made millions for another major political supporter and onetime business partner. Both are now reportedly under federal scrutiny.

Did Renzi arrange the second deal to make up for the damage of the first? Or was he trying to seize a business opportunity he'd created? Did others come up with the deals, and Renzi simply helped out? Who knows. That may be what the feds are trying to puzzle out right now.

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Renzi: One Congressman, Two Probes

On the heels of the Associated Press report comes news, courtesy of the New York Times, that Rep. Rick Renzi (R-AZ) finds himself on the business end of yet another federal probe. This one isn't about land swaps at all, but about allegations Renzi used his power to benefit his dad's employer:

Federal authorities in Arizona have opened an inquiry into whether Representative Rick Renzi introduced legislation that benefited a military contractor that employs his father, law enforcement officials said Tuesday.

The officials said the inquiry was at an early stage and that no search warrants had been issued, suggesting that investigators had yet to determine whether there was a basis to open a formal investigation or empanel a grand jury. . . .

Law enforcement officials said that the most serious accusation involved Mr. Renzi’s sponsorship of legislation in 2003 that appeared to indirectly benefit the ManTech International Corporation, a communications company based in Virginia that employs Mr. Renzi’s father, Eugene, a retired Army general, as executive vice president. . . . Employees of the company were the largest contributors to Mr. Renzi’s campaign in 2002 and the second-largest in 2004.

BREAKING: Feds Probe Rick Renzi, Land Deal

Associated Press reports:

A land deal involving Rep. Rick Renzi, R-Ariz., is being scrutinized by the U.S. attorney's office in Arizona, a law enforcement official in Washington said Tuesday.

The official, who spoke on condition of anonymity while the inquiry is ongoing, said the investigation has been under way for a few months and is still in its very early stages.

The AP could not confirm which land deal Renzi was involved with that drew the interest of a federal prosecutor, but the wire service indicates it is likely the 2005 land swap in which Renzi acted on behalf of a political backer and business partner.

The land swap, in which private investors traded parcels of land with the U.S. government, was first reported by the Phoenix (Ariz.) New Times Oct. 12. Renzi's lawyer told the AP the congressman "was not aware of any investigation," according to the article.

The federal investigation involving Renzi has been rumored for several days now, but the AP story is the first to confirm any involvement by federal investigators in Renzi's land schemes.

« Posts on “Rick Renzi” in October 2007

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