No one knows anything. As NLPC exposed last Sunday, a charity with which Rep. Gregory Meeks (D-NY) is deeply involved, can’t account for funds raised for Hurricane Katrina victims. According to a front-page New York Post story today, Meeks claims the money was used “to help displaced evacuees,” but neither he nor anyone else involved with group can or will say how.

The contoversy over Meeks’ group, called New Direction Local Development Corporation, is fuel for the firestorm of surrounding the awarding by New York Governor David Paterson of a lucrative gambling franchise to Aqueduct Entertainment Group (AEG) in which former Rep. Floyd Flake is an “investor.” Days later, Paterson met with Flake to discuss his support for Paterson’s re-election campaign. According to the Post:

Floyd Flake is extremely valuable to AEG because of his political clout in both Queens and New York state," said Ken Boehm, chairman of National Legal and Policy Center, a government watchdog group. "Now he appears to be dangling his support for the governor until AEG's bid is fully approved.

To many of its critics, the National Labor Relations Board might well be renamed the National Organized Labor Relations Board. That's because this ostensibly impartial federal adjudication body frequently has displayed a discernible pro-union tilt. President Obama is primed to push the NLRB further in that direction given that fully three positions on the five-person board are now vacant. Of the nominees who face final confirmation to fill those slots, by far the most controversial is Craig Becker, approved by the Senate Committee on Health, Education, Labor and Pensions this past Thursday by a 13-10 margin. As associate general counsel to the Service Employees International Union (SEIU) and the AFL-CIO, and as a well-published law professor, Becker has amassed a substantial track record of union partisanship.

The scandal-ridden Association of Community Organizations for Reform Now, or ACORN, needs money. And more than ever it's counting on the federal government to deliver it. A December 11 ruling by a federal judge in New York overturning a funding ban in the current budget may well reopen the floodgates. Ironically, it's the U.S. Department of Justice (DOJ) that stands in the way. On December 16, the department filed a memorandum opposing the New Orleans-based nationwide radical nonprofit "anti-poverty" network's claim that it had been unjustly singled out for a funding cutoff for Fiscal Year 2010. In other words, the government, for a change, was protecting taxpayer interests. Whether those interests prevail in court depends on interpretations of the Constitution's ban on bills of attainder and its protection of due process and freedom of association.

Well, it didn’t take long. Danny Hakim of the New York Times reports today:

Three days after awarding a lucrative state contract to a company connected to the Rev. Floyd H. Flake, one of New York’s most influential black pastors, Gov. David A. Paterson summoned Mr. Flake to his Harlem office Monday morning and sounded him out about his political support.

On Friday, New York state awarded a franchise for video gaming machines at Aqueduct racetrack to something called the Aqueduct Entertainment Group (AEG), which will pay the state hundreds of millions for the opportunity. Making the pitch for AEG was Flake, who while a member of Congress in the nineties, faced serious ethics charges.

Two of Flake’s close associates and protégés are Rep. Gregory Meeks and state Senator Malcolm Smith. As we exposed on Sunday, Meeks and Smith are deeply involved in a nonprofit called the New Direction Local Development Corporation that appears to function as their slush fund.

The Milwaukee Journal Sentinel today reports on the plight of salaried (and non-union) Delphi employees who are losing their pensions, health care and life insurance, while their UAW co-workers are being made whole with taxpayer funds. Delphi is a former division of General Motors. We raised the issue one month ago.

From the Journal Sentinel:

“These people are getting a firsthand lesson in the drawbacks of not being politically connected. That's something members of the UAW and other auto industry unions don't have to worry about," said Carl Horowitz with the National Legal and Policy Center...

Rep. Gregory Meeks (D-NY), already under scrutiny for his relationship with Ponzi billionaire Allen Stanford, is deeply involved with a nonprofit group in Queens, New York called New Direction Local Development Corporation. Our review of IRS tax returns, New York state budget records, and other documents suggests that New Direction does little development. Instead, it appears to operate to the benefit of Meeks and a state Senator named Malcolm Smith, and much of the money it has raised is simply unaccounted for.

New Direction has received at least $56,500 in New York state taxpayer funds since 2001, at the direction of Smith in the form of “member items,” the state equivalent of an earmark. The group’s largest donation of $250,000 came in 2004 from a company called International Airport Centers, which successfully sought permission to build an airport cargo facility near JFK airport in their districts. New Direction also collected thousands of dollars for Hurricane Katrina victims.

President Obama's proposals for small business in his State of the Union address are discussed by NLPC President Peter Flaherty and Christian Dorsey, of the Economic Policy Institute, along with CNBC hosts Melissa Francis and Larry Kudlow. Click here to download 5-page pdf transcript.

The Justice Department has confirmed that it has ended its investigation of Rep. Alan Mollohan (D-WV). The probe began after NLPC filed a Complaint with the U.S. Attorney for D.C. in February of 2006 alleging that Mollohan failed to report millions in assets on his Financial Disclosure Form (FDR) in order to conceal cozy financial relationships with recipients of earmarks he had arranged.

The closing of the four-year probe by the Justice Department comes after Mollohan voted for Barack Obama’s unpopular health care plan. Has Attorney General Eric Holder now made it legal for members of Congress to earmark money to their business partners? This is a horrible precedent.

In the uproar that followed our original allegations, Mollohan “temporarily” resigned as ranking Democrat on the Ethics Committee. I doubt that Nancy Pelosi will now try to put him back. Even she realizes that Mollohan represents everything the public loathes about Congress. Holder's letting him off the hook is sure to further inflame anti-incumbent resentment.

In recent days, Barack Obama gathered with House and Senate Democrats in the Cabinet Room of the White House to “negotiate” health care. They no doubt grew alarmed as Scott Brown surged in the polls, but they seemed strangely unaware that their very actions  — meeting behind closed doors in a rump legislative conference from which Republicans were excluded — were fueling the outrage that would make possible a Brown victory.

Even worse, when asked the impact on health care by a Brown victory, they sketched out various scenarios, from not immediately seating Brown to passing the bill under reconciliation, requiring only 51 Senate votes. The unceasing message to Massachusetts voters was that their vote did not count.

Radio and television broadcasters - at least those catering to black and Hispanic audiences - soon may join financial services and auto manufacturers as the beneficiaries of a federal bailout. For the last half year, a group of executives of minority-themed media enterprises have been lobbying Capitol Hill to provide a boost to their money-losing operations. Having natural allies in the black and Hispanic congressional caucuses, they may win additional support from the Obama administration and any number of white lawmakers eager to expand their base of support. As it is, one of its key members already may have coaxed a loan modification from a financial giant.