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Key McCain Ally Indicted
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Republican Lawmaker Charged With Extortion [
GOP Congressman and Key McCain Ally Indicted
By Ari Berman
The Nation
Friday 22 February 2008
Another GOP congressman has been indicted. This time it's Rick Renzi, indicted by a federal grand jury in Arizona today on charges of wire fraud, money laundering and extortion as part of a multimillion dollar land deal that allegedly improperly benefited Renzi and his business partners.
Renzi, a three-time representative from Arizona's First Congressional District who announced his retirement in August, also happens to be a close ally of Senator John McCain. Renzi is a co-chair of McCain's campaign in Arizona. The Arizona Republic describes the two men as "close." In June 2006, McCain sent out a fundraising letter on Renzi's behalf.
"Already his liberal opponents have started advertising on television against him and the Washington liberals have recruited a multi-millionaire from Ohio to challenge him in November," McCain wrote in the e-mail. "Rick's opponent, Ellen Simon, is the former president of the ACLU and has pledged to spend millions of her own dollars to defeat Rick. We simply cannot let this happen," McCain said.
As far back as September 2005, Citizens for Ethics and Responsibility in Washington listed Renzi as one of the "most corrupt" members of Congress. News of Renzi's land scheme had been percolating for a long time before it finally became public in October 2006. "Many people had information on Rick Renzi and his corrupt practices in 2006, which is one reason I ran for Congress," says Ellen Simon, a civil rights lawyer who was falsely accused by McCain and others of being president of the ACLU. "At the same time this information was known, John McCain was actively supporting Renzi in the race."
Renzi narrowly defeated Simon in the fall. On November 14, 2006, McCain's political action committee, Friends of John McCain, donated $2,000 to Renzi, despite the controversy surrounding him.
The US Attorney in charge of the Renzi investigation, Paul Charlton, was later forced out of office as part of "Attorneygate." According to Charlton, DOJ officials in Washington pressured his office to delay the Renzi indictment until after his victory in November. That's exactly what ended up happening.
More recently, Renzi visited Iraq with McCain in the spring of 2007 - the same trip where McCain, under the protection of 100 American soldiers, three Blackhawk helicopters, and two Apache gunships, famously declared that it was safe to "walk freely" through a Baghdad marketplace. "He's giving it to 'em straight," Renzi said after.
Republican Lawmaker Charged With Extortion
CBS News / The Associated Press
Friday 22 February 2008
Arizona Republican Rick Renzi charged with wire fraud, money laundering.
Washington - Republican Rep. Rick Renzi was indicted Friday on charges of extortion, wire fraud, money laundering and other matters in an Arizona land swap scam that allegedly helped him collect hundreds of thousands of dollars in payoffs.
A 26-page federal indictment unsealed in Arizona accuses Renzi and two former business partners of conspiring to promote the sale of land that buyers could swap for property owned by the federal government. The sale netted one of Renzi's former partners $4.5 million.
Renzi is a three-term member of the House. He announced in August that he would not seek re-election.
Attempts to reach Renzi by phone through his congressional office in Flagstaff and his lawyer were unsuccessful Friday.
As part of the alleged scam, Renzi and his former business partner, James W. Sandlin, concealed at least $733,000 that the congressman took for helping seal the land deals, the indictment says.
"Renzi was having financial difficulty throughout 2005 and needed a substantial infusion of funds to keep his insurance business solvent and to maintain his personal lifestyle," the indictment says.
The indictment accuses Renzi of using his position as a member of the House Natural Resources Committee to push the land swaps for Sandlin, who was also charged. It comes after a lengthy federal investigation into the land development and insurance businesses owned by Renzi's family.
GOP presidential front-runner Sen. John McCain, an Arizona colleague of Renzi's, seemed surprised when asked in Indianapolis for his reaction to the indictment, choosing his words carefully, shaking his head and speaking slowly.
"I'm sorry. I feel for the family; as you know, he has 12 children," McCain told reporters on the presidential campaign trail. "But I don't know enough of the details to make a judgment. These kinds of things are always very unfortunate.... I rely on our Department of Justice and system of justice to make the right outcome."
The extensive legal document says Renzi refused in 2005 and 2006 to secure congressional approval for land swaps by two unnamed businesses if they did not agree to buy Sandlin's property as a part of the deal.
Renzi had previously owned some of Sandlin's property, the indictment says.
In early 2005, one of the businesses seeking surface rights for a copper mining project in Renzi's district failed to buy Sandlin's land. As a result, the indictment says, Renzi allegedly told the business, "No Sandlin property, no bill."
At the time, Sandlin owed Renzi $700,000 out of the land's selling price of $800,000. Renzi also allegedly concealed his business relationship with Sandlin, even though the company had expressly asked if there was one.
Meanwhile, Renzi allegedly pushed the land on a second firm, an unnamed investment group, that was trying to secure a federal land swap. If the firm accepted Sandlin's property as part of the transaction, Renzi allegedly said investors would receive a "free pass" through the House Natural Resources Committee, according to the indictment.
In April 2005, the investors reluctantly agreed to the deal.
"Please be sensitive to the fact that we are going way out on a limb at the request of Congressman Renzi," one of the investors wrote in an April 17, 2005 e-mail to a Renzi aide. "I am putting my complete faith in Congressman Renzi and you that this is the correct decision."
The investment group agreed to pay $4.6 million for Sandlin's land, the indictment says. Sandlin then paid Renzi $733,000 for his help in securing the land swap from the second business.
Renzi failed to report the income on financial disclosure reports to Congress, as is required.
Government watchdog group Citizens for Responsibility and Ethics in Washington applauded the Justice Department for holding Renzi "accountable given that his House colleagues refused to do so." The group has had Renzi on its "Most Corrupt Members of Congress" list for the last three years.
"Bluster aside, this latest in a string of congressional indictments demonstrates that Congress simply will not police itself," said CREW executive director Melanie Sloan.


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