Eugene Isenberg

Timeline of Rangel Ethics Scandal

NY Post/RangelThe start of the Rangel scandals can be pegged to David Kocieniewski's New York Times story in July 2008. His article prompted us to begin our review of Rangel's finances, resulting in our exposé of Rangel's tax evasion and his acceptance of corporate-funded junkets.

It should be noted, however, that New York Post reporter Geoff Earle wrote a year earlier about Rangel's solicitation of corporate money for the Rangel Center.

July 23, 2007- Geoff Earle of the New York Post reports that Rangel is soliciting funds for the Charles B. Rangel Center for Public Service from corporations that have interests before Congress, and that Rangel secured a $2 million "seed money" earmark from Congress.

Pelosi to Delay Rangel Ethics Trial Until After Election?

Rangel Pelosi photoSo much for draining the swamp. Several sources report that the House will not try Rep. Charles Rangel (D-NY) until after the November 2 elections. Rangel won the Democratic primary for his seat yesterday, barely achieving 50% of the vote against five challengers. During his House floor speech on August 10 when he was not attacking NLPC, Rangel pleaded for an expedited hearing on the 13 charges leveled against him by the Ethics Committee. This followed months of maneuvering by Rangel to delay the investigation.

Morgenthau Owned Nabors Stock When He Introduced Rangel to CEO Isenberg

Morgenthau Rangel photoDavid Kocieniewski reports in the New York Times that former Manhattan District Attorney Robert Morgenthau (at right with Rangel) owned stock in Nabors Industries at the time he introduced the company’s CEO Eugene Isenberg to Rep. Charles Rangel (D-NY).  Isenberg made a $1 million pledge to the so-called Charles B. Rangel Center for Public Service at the City College of New York (CCNY) while Rangel helped preserve a tax break for Nabors worth hundreds of millions.

The Times cites information from my pointed questioning of Isenberg at the Nabors 2009 annual meeting. From the Times:

Flaherty: Rangel Dirty Even After Coming Clean

October 8, 2009- CNN's Anderson Cooper reports on the House Ethics Committee expansion of its investigation of House Ways and Means Chairman Charles Rangel (D-NY). Joining Cooper are CNN Senior Congressional Correspondents Dana Bash and Joe Johns, as well as NLPC President Peter Flaherty. Click here for 4-page pdf transcript.

Rangel Scandal Timeline

With the spotlight this week on House Ways and Means Chairman Charles Rangel (D-NY), we have prepared this timeline of his current problems. Rangel has been involved in so much controversy that it is difficult to keep it all straight. I hope this helps.

July 11, 2008- New York Times’ David Kocieniewski reports that Rangel occupies three rent-stabilized apartments in a luxury building, and uses a fourth as a campaign office.

July 14, 2008- NLPC files Complaint with the Federal Election commission alleging use of a rent-stabilized apartment for a campaign office comprises an illegal corporate contribution from the landlord. Rangel announces he will close the office.

WSJ Highlights NLPC’s Efforts to Expose Rangel’s Tax Evasion

The lead editorial in today’s Wall Street Journal is titled “Morality and Charlie Rangel’s Taxes.” It begins:

Ever notice that those who endorse high taxes and those who actually pay them aren’t the same people? Consider the curious case of Ways and Means Chairman Charlie Rangel, who is leading the charge for a new 5.4-percentage point income tax surcharge and recently called it “the moral thing to do.” About his own tax liability he seems less, well, fervent.

Exhibit A concerns a rental property Mr. Rangel purchased in 1987 at the Punta Cana Yacht Club in the Dominican Republic. The rental income from that property ought to be substantial since it is a luxury beach-front villa and is more often than not rented out. But when the National Legal and Policy Center looked at Mr. Rangel’s House financial disclosure forms in August, it noted that his reported income looked suspiciously low. In 2004 and 2005, he reported no more than $5,000, and in 2006 and 2007 no income at all from the property.

The Hill: Ethics Panel Probes Allegation Involving Rangel

Isenberg photoFrom The Hill today:

The House ethics committee is investigating an alleged quid pro quo between Rep. Charles Rangel (D-N.Y.) and an oil company executive, the subject of a lengthy New York Times article published in December.

Eugene Isenberg, the oil executive accused of trying to influence Rangel through a $1 million donation to the education center bearing Rangel's name, is cooperating with an ethics committee investigation into the matter and predicts that the panel will find no wrongdoing.

The story by Susan Crabtree continues:

The assertion was caught on tape during a conversation with Peter Flaherty of the National Legal and Policy Center, a conservative watchdog that has investigated several ethics stories about Rangel. Flaherty approached Isenberg at the company’s annual meeting in Houston last week, taped the conversation and provided The Hill a transcript and audio recording.

As detailed in a previous entry, I actually questioned Isenberg (pictured) during the formal Q&A session of the Nabors Industries annual meeting on June 2. NLPC is a Nabors shareholder.

Nabors Chairman Gets Testy With Flaherty About Rangel Center Donation; Calls NY Times ‘Full of Malarkey’

Eugene Isenberg photoEugene Isenberg, Chairman and CEO of Nabors Industries, is smiling in the photo at right but he wasn’t happy when I questioned him at the company’s annual meeting in Houston on Tuesday, June 2.

Isenberg’s controversial $1 million pledge to the so-called Charles B. Rangel Center for Public Service at the City College of New York came at a time when Rangel helped preserve a loophole that allowed Nabors to save tens of millions in taxes after moving to the Bahamas. These facts were first reported in the New York Times in an article by David Kocieniewski in late 2008.

Under my questioning, Isenberg again denied any quid pro quo. He also denied that there was any “understanding” or a “wink and a nod.” He would not even concede an appearance problem.

Click here to download a 7-page pdf transcript of our exchange.

Rangel Applauds Obama Offshore Tax Crackdown; Will Charlie Give Nabors a Refund?

Nabors logoHouse Ways and Means Chairman Charles Rangel (D-NY) is all for Barack Obama’s proposal to tax the income of subsidiaries of American companies earned abroad. Bloomberg quoted Rangel as saying:

Our tax code should reward companies that thrive by continuing to invest in America and American workers. I applaud President Obama’s commitment to simplifying our tax code and look forward to working with the administration to close these loopholes.

Does this mean Charlie will refund the $200,000 (of a million dollar pledge) he’s received from Bermuda-based Nabors Industries, formerly of Houston? It would only be fair.

Syndicate content