Report: Mollohan Should Have Been Indicted

Alan MollohanDocuments obtained by Citizens for Responsibility and Ethics in Washington (CREW) from the Department of Justice provide “hard evidence” that former Rep. Alan Mollohan (D-WV) should have been prosecuted after NLPC exposed his questionable financial dealings, and triggered a Justice Department investigation.

CREW executive director Melanie Sloan told Politico yesterday, “It was clear the Justice Department should have indicted Mollohan.”

Mollohan was defeated for re-election in 2010 in a Democratic primary. His ethics woes were a key issue in the campaign.

Although we have not yet had the opportunity to study the underlying documents, CREW has released a very concise summary of their own review. The CREW summary confirms the key accusations made by NLPC against Mollohan. It is also a serious indictment of the Justice Department for failing to prosecute Mollohan.

The investigation began in February 2006 after NLPC filed a 500-page Complaint with the U.S. Attorney for the …

Mollohan Crony Burum Indicted in California Bribery Probe

Mollohan photoA wealthy California developer with close ties to former Rep. Alan Mollohan (D-WV) was indicted today in a burgeoning corruption scandal in San Bernardino County. Jeffrey Burum, co-manager of Colonies Partners, was charged in a scheme to bribe county officials to approve a legal settlement favorable to Colonies. Click here to download a 27-page pdf of the indictment.

Burum is on the board of Vandalia Heritage Foundation, one of several nonprofits on whose behalf Mollohan secured hundreds of millions in earmarks. Burum was also the Executive Director of the California-based National Housing Development Corporation (NHDC), which received $31 million in earmarks from Mollohan between 2001 and 2006. Vandalia President Laura Kuhns, who personally invested with Mollohan in real estate deals, was on the board of the NHDC, and still serves on the board of NHDC’s successor organization, called National Community Renaissance.

Burum has been a key campaign contributor over the …

Mollohan Scandal Property Goes to Foreclosure

Last week, media reports indicated that a vacant lot on Bald Head Island, North Carolina co-owned by Rep. Alan Mollohan (D-WV) and his former aide Laura Kuhns, and their spouses, is going to a foreclosure auction.

The lot was one of five properties co-owned by the Mollohans and Kuhnses that have been part of a controversy that prompted an on-going Justice Department investigation, and Mollohan’s resignation as Ranking Member on the House Ethics Committee in 2006.

Kuhns is President and CEO of Vandalia Heritage Foundation, one of five nonprofits to which Mollohan has earmarked well over $100 million. The cozy relationships between Mollohan and his earmark recipients, against the backdrop of a rapid increase in Mollohan’s net worth, created the appearance that Mollohan is benefitting personally from the earmarks.

This appearance was enhanced by an amendment (actually a letter) Mollohan filed with the House Clerk on December 23, 2005 …

Pelosi AWOL as Mollohan Still Controls Budget of Those Investigating Him

MollahanRep. Alan Mollohan (D-WV) has been under investigation for more than three years after NLPC exposed his cozy relationships with the recipients of earmarks that he sponsored. Yet, as chairman of an Appropriations subcommittee, he has jurisdiction over the budget of the Justice Department, which includes the FBI, the very entity that is investigating him.

Mollohan claims he recused himself in a January 2007 letter to the full Committee Chairman David Obey (D-WI) but he refuses to release the letter. Republicans say they have never seen it.

House Speaker Nancy Pelosi is AWOL on the issue, having said nothing since she forced Mollohan out as ranking member of the Ethics Committee in 2006. At the time, she blamed NLPC for Mollohan’s problems.

The controversy flared on June 17 during a debate on the $64 billion Commerce, Justice and Science appropriations bill. Rep. Louie Gohmert (R-TX) accused Mollohan of a continued …