Justice Dept. halts its Mollohan funds inquiry

27 Jan 2010 // WASHINGTON -- Federal law enforcement officials have ended their investigation of the finances of West Virginia Democratic Rep. Alan Mollohan.

"We've closed our investigation," Ben Friedman, spokesman for U.S. Attorney Channing Phillips, said Tuesday.

Mr. Mollohan confirmed in January 2007 that he was the subject of an investigation into whether he profited from federal funds he obtained for organizations in his congressional district.

The congressman's office didn't immediately respond to calls seeking comment.

Mr. Mollohan helped funnel at least $179 million in federal contracts from 2001 through 2006 to 21 companies and nonprofit groups that contributed $564,427 to the Robert H. Mollohan Family Charitable Foundation from 2002 to 2004, according to tax records and other documents.

After Democrats captured U.S. House control in 2006, Mr. Mollohan, 66, was in line to chair a House Appropriations subcommittee controlling the FBI budget. He was allowed to head the subcommittee after he confirmed that the bureau was investigating him and pledged to recuse himself from issues regarding its funding. He remains chairman.

Former federal prosecutor Melanie Sloan, executive director of the Citizens for Responsibility and Ethics in Washington watchdog group, said the House ethics committee now should investigate Mr. Mollohan.