Culture of Corruption

Case of Jesse Jackson, Jr. is Test for House Ethics Commitee

Jesse Jackson Jr. photoLast week, the United States House of Representatives Ethics Committee voted to end its temporary deferral of a case against Rep. Jesse Jackson, Jr. (D-IL). The US Justice Department had requested the deferral but has since withdrawn that request. The case had been deferred for over two years.

Jackson, the son of Rev. Jesse Jackson, is in his ninth term in the US House and is under investigation for allegations that he attempted to buy the open US Senate seat that was vacated by President Barack Obama. It has been reported that Jackson's supporters were willing to raise $1.5 million on behalf of Governor Blagojevich's re-election campaign.

Watchdog Rejects Pelosi Explanation of Late Disclosure

Paul and Nancy Pelsosii photoPaul Pelosi, husband of House Minority Leader Nancy Pelosi, will reportedly make millions of dollars from a previously undisclosed real estate venture in Mrs. Pelosi's home state of California. Mr. Pelosi is a real estate developer and an investment banker and entered into this project with the father of the current Ambassador to Hungary, as reported by The Washington Times earlier this week. Mrs. Pelosi helped the ambassador secure her the post.

Rep. Carson Stands By Tea Party/Lynching Remarks

Carson photoRep. Andre Carson (D-IN), the second Muslim to serve in Congress, has created an enormous controversy by following Rep. Maxine Waters' (D-CA) lead and lashing out at the Tea Party and its supporters in Congress.

Carson told a meeting of the Congressional Black Caucus (CBC) and some of its supporters last week in Miami that, "some of them in Congress right now, of this Tea Party, would love to see you and me...hanging on a tree." He also stated that some members of Congress would like to see blacks as second-class citizens.

Meeks' Crony Ahmad Indicted in $50 Million Fraud

Meeks photoOn Friday, a federal grand jury in Brooklyn, New York indicted Edul Ahmad, a Guyanese businessman who was last month arrested in a $50 million mortgage-fraud scheme. Ahmad made an unsecured personal loan to Rep. Gregory Meeks (D-NY) that was repaid only after Meeks' finances came under scrutiny by the FBI.

In January 2010, we exposed Meeks involvement in a charity called New Direction Local Development Corporation that raised money for Hurricane Katrina victims who never received it, among other questionable dealings. In March, we asked the House Ethics Committee to investigate Meeks for paying $830,000 for a newly built home in 2006 that was worth more than $1.2 million. Media coverage of these events apparently triggered the FBI inquiry.

Ethics Committee to Probe Fraudster's Loan to Meeks

Meeks photoOn August 5, the House Ethics Committee announced that it has accepted a recommendation by the Office of Congressional Ethics (OCE) to "further review an allegation that Representative (Gregory) Meeks failed to disclose a payment he received in 2007 in a timely manner."

The payment was an unsecured $40,000 "loan" from Edul Ahmad, a Guyanese businessman who was last month arrested in a massive mortgage-fraud scheme. On July 22, the FBI reportedly removed Ahmad in handcuffs from a Guyana-bound aircraft on the tarmac at JFK International Airport.

Rep. Wu to Resign After Debt-Ceiling Resolution

David Wu photoRep. David Wu, D-Ore., announced his resignation following accusations that he engaged in an unwanted sexual encounter with a young woman.

Moments after Oregon's two United States Senators, Jeff Merkley and Ron Wyden, asked the congressman to step down, Wu addressed the House and said his resignation would go into effect after the resolution of the debt-ceiling crisis.

Meeks' Crony Ahmad Busted by FBI

Meeks photoOn Friday, the FBI arrested Ed Ahmad, the Guyanese businessman who made an unsecured $40,000 loan to Rep. Gregory Meeks (D-NY) that Meeks failed to publicly disclose as required. Ahmad was charged with mortgage fraud in connection to a wide-ranging scheme that involved faking income for applicants and the use of straw buyers. He was reportedly released on $2.5 million bail.

According to one report, "Ahmad had already boarded Delta 383 at JFK International to head to Guyana when Federal agents boarded the aircraft, handcuffed him and removed him from the aircraft."

Maxine Waters Asks for Dismissal as Ethics Committee Hires Outside Counsel

Waters photoOn Monday, Rep. Maxine Waters (D-CA) asked the House Ethics Committee to dismiss the pending case against her. In the meantime, the Ethics Committee announced that it has hired an outside counsel to pursue the case.

John Bresnahan reported on documents obtained by the Politico that Waters' attorney, Stanley Brand, say compromise the case. Late last year, former chief counsel of the Ethics Committee, Blake Chisam, advised then-Committee Chair Zoe Lofgren (D-CA) that two lead attorneys in the case, Morgan Kim and Stacy Sovereign, provided confidential materials to Republicans on the Ethics Committee.

Justice Dept. STILL Refuses to Disclose Mollohan Documents

Mollohan photoA watchdog group continues to call on the Department of Justice (DOJ) to release documents from a four-year investigation of Rep. Alan Mollohan (D-W.Va.). Citizens for Responsibility and Ethics in Washington (CREW) previously filed Freedom of Information Act requests and administrative appeals seeking information about why the DOJ did not bring charges against Mollohan.

In 2006, the DOJ and the Federal Bureau of Investigation (FBI) launched an investigation on Mollohan and his connections to five non-profit organizations he created that were managed by close friends and real estate partners.

House Democrats Attack Republicans — On Ethics

Weiner photoConstituents of six House Republicans can expect to receive an automated phone call from the Democratic Congressional Campaign Committee (DCCC) informing them of their representative's allegedly unethical practices. But DCCC's accusations follow in the wake of many Democratic mishaps including the scandals involving ex-Rep. Anthony Weiner and Rep. Maxine Waters.

Out of the six representatives under fire, four of them are new to the House. The congressmen include: Charlie Bass (N.H.), Vern Buchanan (Fla.), Stephen Fincher (Tenn.), Frank Guinta (N.H.), David Rivera (Fla.) and Scott Tipton (Colo.).

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