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Unions and PACs partner with corrupt congressmen to pay legal bills...

Discussion in 'BBS Hangout: Debate & Discussion' started by OddsOn, Jul 29, 2010.

  1. OddsOn

    OddsOn Contributing Member

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    This kind of makes my points in the other thread regarding term limits, transparency in fund raising donations, etc.

    Where is the culture of corruption? It looks like all over to me....

    K Street goes to the defense of Charlie Rangel


    Every person accused of a crime or an ethics violation deserves a competent defense. Charlie Rangel's legal defense, fittingly, comes from K Street.

    Two of the three firms providing legal counsel to Rep. Charlie Rangel, D-N.Y., in his pending ethics cases are lobbying firms. In fact, one firm, Oldaker, Belair & Wittie, conducts much of Rangel's political fundraising, while operating four different lobby shops.

    But who's ultimately paying Rangel's legal bills? Mostly corporate and union political action committees along with individual lobbyists. Over the past six months, PACs and lobbyists have accounted for a majority of the money Rangel's campaign has raised this year, not counting transfers from Rangel's other fundraising operations (more on them below).

    In turn, Rangel funnels his campaign cash into his legal defense. In 2009, three-fourths of Rangel's $2.16 million in campaign spending went to legal fees. The House Ethics Committee allows campaign funds for legal fees that are not "primarily personal in nature, such as a matrimonial action, or could result in a direct personal benefit for the Member." Otherwise, legal fees are a legitimate use of campaign cash because "the protection of a Member's presumption of innocence in such actions is a valid political purpose," the guidelines state.

    That means any politically savvy donor who cut a check in 2010 to Rangel's reelection knew the donation was, in part, a contribution to Rangel's legal defense -- indeed, in the first two quarters of 2010, Rangel's campaign spent $655,232, with $230,749 (35 percent) going to legal fees. Zuckerman Spaeder LLP got biggest haul of Rangel cash -- $182,000. The firm had lobbying clients including one top drugmaker until last year, when the K Street legal shop de-registered as lobbyist.

    Another lobbying firm defending Rangel is Oldaker, Belair & Wittie, pocketing $28,000 in legal fees so far this year. Oldaker's clients include Indian tribes, health care companies and financial organizations such as the Debt Buyers' Association. But the firm also houses two other lobbying firms: the Oldaker Group and the National Group.

    The National Group's lobby clients include defense giant Lockheed Martin and other aerospace companies, as well as many universities and hospitals.

    In the Oldaker orbit is lobbyist Michael Allen Andrews, a former Ways & Means staffer, now a Rangel donor. Andrews is registered to lobby for "National Health Advisors LLC," a lobbying operation launched by Oldaker and another K Street firm days before Obama's inauguration.

    In a press release, Oldaker explained: "As the Obama Administration and the 111th Congress begin their work to reform America's health care system, the Washington DC-based joint venture offers lobbying and consulting services to companies needing to understand and impact the reform debate." Rangel's Ways & Means Committee was one of three with jurisdiction over the bill.

    Oldaker lawyer Phu Hunyh is also the treasurer for a fundraising committee called the "Rangel Victory Fund." This is different from Rangel's principle campaign committee ("Rangel for Congress") and Rangel's PAC ("National Leadership PAC"). The treasurer of those two committees is Basil Paterson, father of New York Gov. David Paterson, a former union boss, and now a senior member of a law firm that also lobbies.

    The final arm to Rangel's fundraising machine is the now-defunct Baucus-Rangel Leadership Fund. This was a joint fundraising committee Rangel set up with Sen. Max Baucus, D-Mont. What did they have in common? When they formed the committee, the two men had just become chairmen of their chambers' respective tax-writing committees. The committee held a fundraiser or two in 2007, pulling in cash primarily from New York City real estate developers and investors. The fundraisers reeked of auctioning off tax policy, or shaking down businesses vulnerable to tax changes.

    Lobbyists are filling the campaign bank accounts that are paying these lawyers. Some high rollers on Rangel's donor lists are: Joseph Dowley, representing the Institute of International Bankers; Justin Gray, representing taxpayer-owned GM; Alan Wheat, representing Sanofi-Aventis and Roche; and Akin Gump lobbyists Robert Leonard and Jayne Fitzgerald, who represent Boeing, Bechtel, General Electric and Aetna. Lobbyists from Patton Boggs, the Podesta Group and Ernst & Young have also funded Rangel.

    Check out the PACs giving to Rangel this year and you will see names like the National Bankers Association, Pfizer, New York Life, GE and Lockheed Martin. Lobbying firm PACs funding Rangel's re-election include Baker & Hostetler; McKenna, Long & Aldridge; Holland & Knight; and O'Melveny & Myers.

    PACs and lobbying firms have given more than $120,000 to Rangel in the past six months while individual lobbyists have chipped in another $28,000.

    All of these companies and lobbyists are savvy enough to know they're funding Rangel's legal defense. This is why politicians like Rangel benefit when K Street gains clout. Starting this week, we'll find out if K Street is powerful enough to save Rangel.
     
  2. GladiatoRowdy

    GladiatoRowdy Contributing Member

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    K Street gives politicians money? Say it ain't so!
     
  3. Rashmon

    Rashmon Contributing Member

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    Odd Son reads the ultra-conservative free weekly Washington Examiner owned by ultra-conservative billionaire Philip Anschutz? Say it ain't so.
     
  4. rimrocker

    rimrocker Contributing Member

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    I found this interesting...
    So, Shelby earmarks projects favored by his ex-staffers who then contribute large amounts to his campaign.

    Then there's this...
    And there's this...

     
  5. GladiatoRowdy

    GladiatoRowdy Contributing Member

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    Stop it, Rimmy, I was convinced that politicians went to Washington just for the warm fuzzy feeling of doing public service. Then, you and the Odd one had to go and ruin it for me.

    ;)
     
  6. rimrocker

    rimrocker Contributing Member

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    Ooops. Well, this will hurt the coffers of Turdblossom's new group... and is another data point showing how money corrupts and corrupt money really corrupts.
     
  7. rocketsjudoka

    rocketsjudoka Contributing Member
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    Yep Rangel is corrupt and he needs to go.

    I am curious though for the OP. Would you support campaign finance reform that would limit or prevent this type of fundraising?

    I am wondering though if the Citizens United ruling has any affect on this type of fundraising.
     
  8. rocketsjudoka

    rocketsjudoka Contributing Member
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    Just to add:

    http://www.msnbc.msn.com/id/38484533/ns/politics-decision_2010


    Democrats call on Rangel to resign
    Obama says case 'troubling;' defense cites peers' similar donation tactics

    WASHINGTON — President Barack Obama on Friday called ethics charges against Democratic Rep. Charlie Rangel "very troubling" and said he hopes the longtime lawmaker can end his career with dignity. Several House Democrats went further, flat-out urging the New York congressman to resign.

    "He's somebody who's at the end of his career," Obama said in an interview that aired Friday on "CBS Evening News with Katie Couric." "I'm sure that what he wants is to be able to end his career with dignity. And my hope is that it happens."

    Obama, speaking on the issue for the first time, praised the 20-term Rangel for serving his constituents well but called the more than one-dozen tax and disclosure charges against him "very troubling."

    t was hardly an endorsement for the veteran lawmaker, but fell well short of the calls for resignation Rangel received on the eve of the House's August recess. As House Democrats headed home, they wrestled with how to handle the matter in their districts ahead of the midterm elections.

    Republicans, meanwhile, raced ahead with plans to make Rangel the face of corrupt Washington under the rule of Democrats who had vowed to clean up Congress.

    'Some sloppiness'
    For his part, Rangel, who denies the charges, met with perhaps his staunchest supporters, members of the New York state delegation, in the stately Capitol parlor named for the Ways and Means Committee that he headed until March.

    "He indicated there was some sloppiness" in his official papers, Rep. Edolphus Towns, D-N.Y., told reporters, "but, you know, there's no criminality here."

    Rangel's defense against 13 charges of misusing his office and tax and disclosure issues includes pointing fingers at peers, The Washington Post reported Saturday. He argues that others have taken the same course of action without fear of punishment in asking corporate donors to give to academic centers bearing their names.

    His legal team, in their 32-page rebuttal, said Senate Minority Leader Mitch McConnell, R-Ky., helped raise money for a center named for him at the University of Louisville. They also cited similarities with the recently deceased Sen. Robert C. Byrd, D-W.Va. and with former Republican senators Trent Lott of Mississippi. and Jesse Helms of North Carolina.

    "These activities have never been regarded as creating an improper benefit to a Member," the lawyers said in their 32-page rebuttal.

    McConnell spokesman Donald Stewart told the Post Friday that "Mr. Rangel's efforts to draw comparisons are absurd and without any similarity whatsoever."

    House rules and credibility were the reasons cited by more than a half dozen House Democrats known to have called for Rangel's resignation by late afternoon Friday.

    A House panel on Thursday made public for the first time the charges against Rangel, 80, as it opened the trial phase of the ethics proceedings against him. If Rangel and the ethics committee do not settle the case, it goes to a public trial this fall, at the height of an election season in which every member of the House, 36 in the Senate and the Democratic majorities of both chambers are on the line.

    Resignation calls
    Either conditionally or outright, Democrats calling for Rangel's resignation included Rep. Walter Minnick of Idaho, Betty Sutton of Ohio, John Yarmuth of Kentucky, Zack Space of Ohio, Ann Kirkpatrick of Arizona and Mary Jo Kilroy of Ohio.

    "Too many politicians, both Democrats and Republicans, have fallen victim to the idea that they are 'different' than regular folks and nothing could be further from the truth," Kirkpatrick said in a statement.

    "It is our job as members of Congress to hold each other accountable to a higher standard regardless of party," she added. "If the serious charges against (Rangel) are accurate, he needs to resign."

    Rangel has said the indictment released Thursday contains factual errors.

    "We've heard Charlie in the Ways and Means Committee, and he's addressed these charges. He never denied they happened. He always has an explanation. You can excuse one or two, but not 13," Yarmuth told the Louisville Courier-Journal in an interview published Friday. "I don't see how he can stay if they're true. I believe they are."

    Back home in Rangel's Harlem district, he remains popular with many voters and could well win reelection if his political career survives the ethics probe, though one woman said Friday she had mixed feelings after reading news accounts of the allegations against him.

    "I don't think he is 100 percent honest, but he's no worse than other politicians," said Charynda Morez, a college student who was buying groceries at a deli.

    She said that she didn't know how he should be punished, but that Rangel should resign anyway. Rangel has four apartments "when there are people who don't have a home," she said, citing allegations that Rangel lived in four combined rent-stabilized apartments instead of one, in violation of New York City law.

    'Dirty laundry'
    But outside the apartment building in question, food vendor Curtis Parker defended Rangel and said the 40-year House veteran was being targeted despite all the good he's done for the community.

    "They're just airing his dirty laundry," he said, adding that the charges fall far short of what would normally deserve "jail time."

    Democratic leaders are urging their members to cast the election as one about a choice between their party, which under President Barack Obama has overhauled health care and Wall Street, and a GOP-tea party combination that wants to roll back Democratic accomplishments.

    House Republicans relished using Rangel to change the subject — especially if he does not reach a settlement with the ethics committee. A public trial equates to a free media presentation of the misdeeds of one of the most senior Democrats in the House.

    The House Republicans' campaign arm released a list of Democrats who have not returned campaign contributions they received from Rangel during their careers and said those lawmakers would face questions about the matter from constituents during the August break.

    "It's very difficult for Democrats to make the case that this is a 'choice' election when the national headlines are focused around an ethics scandal that has clearly impacted the party in power," said Ken Spain, spokesman for the National Republican Campaign Committee.

    Rangel retained many supporters Friday. The New York delegation and the Congressional Black Caucus, which was co-founded by Rangel, urged their colleagues not to rush to judgment. House leaders eager to avoid alienating black voters remained mum on what Rangel should do.

    Some Democrats privately said they took a small measure of comfort in one revelation. Rep. Gene Green, the Texas Democrat who led the four-member bipartisan panel of investigators, told reporters that his committee recommended a relatively mild punishment for Rangel — reprimand, a statement of wrongdoing voted by the whole House that carries no other penalty.

    But statements continued to trickle out that left no doubt that at some point, Democrats would have to look out for No. 1 - themselves.

    "If at the trial's conclusion Mr. Rangel is found guilty by his peers, then he should incur the full punishment allowed by the House, including removal from office," said Rep. Bobby Bright, D-Ala.
     

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