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Crew calls for Ethics Investigation into New Allegations of Wrongdoing by Rep. Rangel

Washington, D.C. - Today, two new reports indicate that Rep. Charlie Rangel (D-NY) has engaged in further conduct meriting the attention of the House Ethics Committee. The New York Times has reported Rep. Rangel was instrumental in preserving a tax loophole benefitting Nabors Industries at the same time he was soliciting the company’s chief executive for a donation to the Rangel School. In a less serious but still troubling report, the Washington Post revealed Rep. Rangel took a property tax break intended for permanent primary residences on his Washington, D.C. home while declaring New York City as his permanent residence.

The Ethics Reform Act of 1989 and House rules prohibit members from asking for anything of value from “anyone who seeks official action from the House, does business with the House or has interests which may be substantially affected by the performance of official duties.” Members are also prohibited from taking official action to induce another to provide a benefit to a third party.

The New York Times reported that Rep. Rangel apparently met with Nabors Industries CEO Eugene M. Isenberg and a lobbyist to discuss the tax shelter the same day he met with Mr. Isenberg to discuss a contribution to the Rangel Center. If Rep. Rangel supported a tax break that saved Nabors tens of millions of dollars in exchange for financial contributions to City College to support the Rangel School, he likely violated House rules.

According to the Washington Post, Rep. Rangel received a homestead deduction in the amount of $288 per year on his D.C. residence from at least 1995 through 2000. If Rep. Rangel deliberately sought a tax break designed for permanent residents of D.C. while claiming New York as his primary residence, he violated District of Columbia tax law and likely engaged in conduct that does not “reflect creditably on the House,” in violation of House rules.

Last summer, the committee began investigating Rep. Rangel for failing to include income from a Dominican Republic villa on his personal financial disclosure forms, for occupying a rent stabilized apartment in New York City in potential violation of the House gifts rule, for writing fundraising letters for a Charles B. Rangel School of Public Service at City College of New York on House stationary, and for improperly storing a broken-down car in a House garage.

CREW Executive Director Melanie Sloan said today, “Rep. Rangel’s ethics problems continue to mount, yet the Ethics Committee and the Democratic leadership remain silent.” Sloan continued, “Members of Congress often seem to believe that rules are for other people, and sadly, the Ethics Committee does nothing to correct that assumption. It is long past time for Rep. Rangel to be called to account for his repeated ethics violations.”

Read the New York Times and Washington Post reports in Related News Coverage on the right.