Newsletter May 2011

CREW Cuts
The Monthly Newsletter of CREW // May 2011 // Issue No. 49

The Prince of Pork Still Reigns

Despite a ban on earmarks in the House of Representatives, the man long dubbed the “Prince of Pork,” Rep. Hal Rogers (R-KY), continues to bring home the bacon for a network of organizations based in his district. Last week, CREW released Rep. Rogers’ Neighborhood, exposing how Rep. Rogers has created an empire that can garner federal funding, despite the earmark ban.

Rep. Rogers sits at the center of an interconnected web that includes Kentucky nonprofit groups, a bank he partially owns, and several companies he has supported with federal money. These entities have strong ties to Rep. Rogers and to each other, and help extend Rep. Rogers’ influence in his district.

“During the past few months, there have been many glowing stories about Rep. Rogers, and how he has supposedly sworn off his porkish ways,” said CREW Executive Director Melanie Sloan. “Unfortunately, his rhetoric doesn’t match his record. In reality, Rep. Rogers has built a fiefdom, where millions in federal funding can continue to be funneled to home state projects each year.”

Will the FEC Fumble the Fiesta Bowl Fiasco?

Wherever there’s big money, politicians usually aren’t too far behind. In April, CREW filed a complaint with the Federal Election Commission (FEC) against the Fiesta Bowl for violating campaign finance law by reimbursing Fiesta Bowl executives and their spouses for campaign contributions to several Arizona candidates. Fiesta Bowl President and CEO John H. Junker was fired for his role in the scandal and cover-up.

The question isn’t whether anyone broke campaign finance laws – independent investigators already found violations – it is whether the FEC will do anything about it.

We won’t hold our breath. The FEC has long been a paper tiger, with Commissioner Donald McGahn openly flouting his obligation to enforce our campaign finance laws. This is not surprising, given Mr. McGahn once served as a top lawyer to disgraced former Rep. Tom DeLay (R-TX) and routinely disparages the laws he’s charged with enforcing.

Education Scandal Deepens; Inspector General Must Investigate

Dept of Education Why did a top official at the Department of Education continue to receive federal benefits after he left his federal job? CREW asked the Department of Education (DOE) Inspector General to investigate DOE’s consulting agreement with former Deputy Undersecretary Robert Shireman. Mr. Shireman left his job in June of 2010, but was immediately hired as a paid intermittent consultant to DOE’s Office of Federal Student Aid. In clear violation of DOE policy, Mr. Shireman continued to receive federal benefits, including health care and paid leave.

During his time as Deputy Undersecretary, Mr. Shireman headed the effort to more stringently regulate for-profit education companies. An investigation by CREW has uncovered records showing extensive contact between DOE officials and Wall Street investors. Particularly troubling were the many emails that revealed short-sellers were influencing proposed regulations in a way that stood to drive down the stock price of for-profit colleges and allow investors to reap huge profits. Based on this evidence, CREW asked the Securities and Exchange Commission to investigate possible market manipulation and twice asked Education Secretary Arne Duncan to examine the improper influence on DOE’s regulatory process

CREW Welcomes Senator Ensign’s Departure

Finally, almost two years after the world learned of Sen. Ensign’s (R-NV) sleazy affair and reprehensible conduct, today is Sen. John Ensign’s (R-NV) last day in office. Sadly, he didn’t resign because he saw the error of his ways, or even to “spend more time with his family.” Rather, Sen. Ensign was pushed out to give the GOP a leg up in the 2012 election. Governor Brian Sandoval appointed Rep. Dean Heller (R-NV) to the seat, allowing him to run with all the advantages of incumbency.

Given Sen. Ensign’s illegal activities, it is unbelievable he was allowed to linger for so long. Untold resources have been spent by the Department of Justice (DOJ), which dropped the investigation, and the Senate Ethics Committee, which couldn’t manage to take action after all this time. At least the senator is gone and Americans can put this latest politician-behaving-badly behind us.

Forcing Contractors to Disclose Contributions is a Good First Step

White House

Melanie Sloan contributed to The Center for Public Integrity’s iWatch News, writing about the need for government contractors to disclose their contributions:

“Each year, government contractors spend mountains of money to influence politicians, and then—in a remarkable coincidence—are richly rewarded with billions of dollars in government contracts. It’s a pay-to-play scheme government officials try to keep hidden from the American public, but is common knowledge inside the Beltway.

The White House’s proposed executive order requiring contractors to disclose political contributions totaling over $5,000 before receiving government contracts is a step in the right direction. Although the contributions made by company officials to candidates and parties are already reported to the Federal Election Commission, significantly, the order would also require disclosure of contributions made by individuals and the company itself to third parties that make independent expenditures or electioneering communications.”

Read the rest of Melanie Sloan’s guest column on iWatch News.

CREW Files Suit against DOJ for Refusal to Produce Documents in Rep. Don Young Investigation

CREW filed suit in federal district court against the Department of Justice (DOJ) for failing to provide records related to the government’s investigation of Rep. Don Young (R-AK), including documents that would reveal why Rep. Young was not criminally prosecuted despite evidence he violated the law.

DOJ conducted at least two investigations into the congressman. One probed whether he accepted bribes, illegal gratuities, or unreported gifts from an Alaskan company, and a second one examined Rep. Young’s insertion of a $10 million earmark into a transportation bill - after Congress passed it - that benefitted one of his campaign contributors. DOJ told Rep. Young in August 2010 it had concluded its investigation and would not prosecute him.

CREW has filed similar requests for records of DOJ’s closed investigations of Rep. Jerry Lewis (R-CA), former House Majority Leader Tom DeLay (R-TX), former Rep. Alan Mollohan (D-WV), the late Rep. John Murtha (D-PA), and Senator John Ensign (R-NV).