Government Integrity Project

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.

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.

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.

A June 12, 2008 press release from Massachusetts Attorney General Martha Coakley ballyhoos the fact that she earned an “A+” from ACORN. Ironically, this perfect grade was awarded for “responding to the foreclosure crisis.” No single non-governmental entity is more responsible for the real estate meltdown than ACORN.

Coakley’s press release goes on to detail various prosecutions of shady subprime operators but, of course, there is not a word about any investigation or prosecution of ACORN.