Today, CREW sent a letter to the House Committee on Standards of Official Conduct, more commonly known as the Ethics Committee. We want the Committee to take immediate action in the face of the developing crisis of members illegally using official resources for campaign purposes. A copy of the letter can be found here.

As we reported yesterday, Last week, Laura Flores, a former aide to Reps. Jane Harman (D-CA) and Neil Abercrombie (D-HI) received a reduced sentence for embezzlement in return for her cooperation in a probe into whether members of Congress have been using congressional staff and resources for campaign purposes. The Washington Post reported that the Department of Justice is investigating whether members of Congress have used phones, supplies and staff time for campaign purposes and whether staff have been directed to perform personal errands on government time:

In the course of plea negotiations, however, Flores provided testimony and documents as part of a previously unreported Justice Department investigation into whether members of Congress used phones, supplies and staff time for campaign purposes, according to the source.

Investigators also are looking into whether members of Congress directed their staffs to perform personal errands on government time, said the source, who spoke on the condition of anonymity because the investigation is at an early stage.

Congressional aides are prohibited from raising money or participating in campaign activities while on the government payroll, said election law expert Lawrence M. Noble. "It's a serious matter," he added.

In 2006, the FBI began investigating allegations made by former congressional staffers to Rep. Tim Murphy (R-PA) that they were forced to work on campaign matters during office hours. Similar allegations have been made by former staffers to Reps. David Scott (D-GA) and Gary Miller (R-CA).

Despite the burgeoning number of stories suggesting that members may be routinely forcing staffers to illegally engage in campaign work – and firing some who go public with such allegations – the House Ethics Committee has taken no action.

CREW has asked the Committee to proactively begin investigating the scope of this problem and require members of Congress to attend mandatory training sessions on the proper use of staff and congressional research. CREW has further asked the Committee to establish a procedure allowing staffers to file complaints about such conduct without fear of retaliation.

CREW's Melanie Sloan summed up the situation:

Once again, a major scandal is brewing on Capitol Hill and the House ethics committee is sitting it out. The question is, when -- if ever -- is the Ethics Committee going to prove itself more than a paper tiger?

We're waiting.

Writing in the Inland Valley Daily Bulletin, Michael Moodian lays out a challenge to Rep. Gary Miller (R-CA). Detailing Miller's multiple ethical transgressions, Moodian tells Miller to clear this up -- or resign. As noted, Miller was named one of the most corrupt members of Congress in CREW's report, Beyond DeLay. The author wonders whether Miller can effectively serve his constituents with all these ethical issues swirling around him:

The trail of alleged corruption and shady real estate involvements has been well documented throughout various media outlets. As reported in a 2006 article by Susan Crabtree of The Hill, Miller was a proponent of a transportation bill provision that would result in the closing of an airport in Rialto. The effect would pave the way for Lewis Operating Corp., a chief contributor to Miller's campaign and business partner of the congressman, to build a major development community on the land.

Additionally, The Hill reported that Miller might have violated House ethics rules when he borrowed $7.5 million from Lewis Operating Corp. The money was then used to conduct a real estate purchase from the company.

The Citizens for Responsibility and Ethics in Washington (CREW) has listed Miller as one of the 20 most corrupt members of Congress, bringing attention to controversial real estate deals (in which he's purportedly benefited by earning millions of dollars), his relationship with Lewis Operating Corp., and a consistent history of ethical concerns. Last year, CREW filed an IRS complaint against Miller citing "failure to report or pay capital gains taxes on several real estate transactions."

To add to this, a Los Angeles Times article by William Heisel detailed allegations by multiple aides stating that Miller utilized his staff members for a variety of tasks not related to government business - errands, assisting his kids with schoolwork and college registration.

The topper came when Miller, using official Congress letterhead, requested Rolling Stones tickets last Halloween from Ticketmaster.

This is a man who stated, after swearing in for his fifth term, "We must remain committed, stand strong and prioritize the federal government's obligations. Our agenda should remain focused on improving economic security, national security and homeland security for the American people."

How focused is Congressman Miller? It doesn't seem like he's concentrating much on serving the citizens of California's 42nd District.

The Associated Press prepared this handy overview of the members of California's Congressional delegation who are facing ethical controversies. Coincidentally, all four current members profiled were named in CREW's report, Beyond DeLay, as among the 20 most corrupt members of Congress:

Rep. John Doolittle – The nine-term conservative from far Northern California is under investigation in the Jack Abramoff influence-peddling scandal that's already resulted in 12 convictions of congressional aides, Bush administration officials and others, including a guilty plea from one former Republican member of Congress, Bob Ney of Ohio.

Doolittle, whose ties to Abramoff include accepting his campaign money and helping his clients, relinquished his seat on the Appropriations Committee in April after FBI agents raided his home in Virginia with a search warrant for a fundraising and event-planning business run there by his wife, Julie, that had done work for Abramoff and drawn commissions from Doolittle's campaigns.

Doolittle denies wrongdoing.

Rep. Jerry Lewis – In his 15th term representing inland Southern California, Lewis was chairman of the Appropriations Committee last year when federal prosecutors in Los Angeles began investigating his ties to a lobbyist who represented a number of towns and businesses in Lewis' district. Clients of lobbyist Bill Lowery received valuable federal spending approved by Lewis' committee, and the firm and its clients have been generous donors to Lewis and his campaign committees.

Lewis remains top Republican on the Appropriations Committee and denies wrongdoing.

Rep. Gary Miller – A real estate developer serving his fifth term representing inland Southern California, Miller drew scrutiny after the Los Angeles Times published stories highlighting a tax deferral strategy he used in connection with profitable real estate sales to two Southern California towns outside his district. Officials in both towns say they've been interviewed by FBI agents, but Miller says he's done nothing wrong.

Rep. Ken Calvert – A year ago the FBI obtained copies of Calvert's annual financial disclosure forms after the Los Angeles Times reported on federal funding Calvert pushed for a planned freeway interchange 16 miles from property he sold for a large profit. Calvert denied any connection or any profit to himself and said he'd done nothing wrong; there's no public evidence that he's under active investigation. Still, conservative bloggers protested after House GOP leaders tapped Calvert to replace Doolittle on the Appropriations Committee.

 

The Lewis Operating Corp. benefited from earmarks obtained by Rep. Gary Miller (R-CA). Interestingly, Miller has a business relationship with Lewis Operating Corp.

Rep. Gary Miller (R-Calif.) helped secure several earmarks in the 2005 transportation bill that would benefit projects of his business partner, Lewis Operating, according to House sources and an analysis of the bill’s earmarks and San Bernardino County, Calif., land records.

In the years leading up to the bill’s passage, Miller’s financial ties to the company, one of the largest privately held real-estate development companies in the country, have grown. The year before the transportation bill passed, Miller borrowed $7.5 million from Lewis Operating to purchase land from it. Lewis Operating Corp. is also one of Miller’s top campaign contributors; employees of the company have donated $22,150 to Miller’s campaign committee since his election to Congress in 1998.

Miller was named one of the 20 most corrupt Members of Congress in CREW's report, Beyond DeLay. One of the reasons Miller made the list was his relationship with Lewis Operating Corp.:

Before he entered Congress, Rep. Miller had a lucrative career as a developer of planned communities. Rep. Miller has had a long relationship with Lewis Operating Co. Members of the Lewis family and employees of the company have been Rep. Miller’s top campaign donors, while at the same time, Rep. Miller has been involved in a number of land transactions with Lewis Operating. In 2005 alone, Rep. Miller made between $1.1 and $6 million off of land deals with Lewis Operating.

In addition, in 2004, Rep. Miller took out three separate promissory notes from the Lewis Operating group of companies totaling $7.46 million. Using the money obtained through these loans, Rep. Miller bought land from Lewis Investment in “seller-financed” deals, which often result in better deals for the person buying the land.

Rep. Miller has earmarked $1.28 million for street improvements near a planned residential community he co-owns with Lewis Operating and he subverted the FAA’s process by closing the Rialto airport, allowing Lewis Operating to win a contract from Rialto to redevelop the airport property as a planned community.

Rep. Miller appears to have abused his position to financially benefit himself and Lewis Operating in violation of House rules.

The Politico's Cryptometer is running a special "Scandal Edition":

Normally, The Politico runs Cryptometers on critical issues and key players on Capitol Hill, such as those involved in the political struggle over the war in Iraq. But this week, we're doing something a little different. We're running a Cryptometer on the lawmakers in legal trouble -- and ranking them on how deep we think that trouble is. As always, everyone here is innocent until proven otherwise.

For anyone who follows scandals in Washington, the list is quite familiar. In fact, everyone on the Cryptometer's list is also in CREW's Beyond DeLay, meaning we considered them among the 20 most corrupt Members of Congress.

Featured in the Scandal Edition, in order of the Cryptometer's rankings, are: William Jefferson (D-LA); Rep. John Doolittle (R-CA); Rep. Rick Renzi (R-AZ); Rep. Jerry Lewis (R-CA); Rep. Gary Miller (R-CA) and Rep. Alan Mollohan (D-WV). Rep. Ken Calvert (R-CA) earns an honorable mention.

Rep. Tom Feeney (R-FL) will probably make the new edition.

The Associated Press prepared an in-depth profile of Rep. Gary Miller (R-CA) and his land deal scandals.   Last August, CREW filed an IRS complaint against Miller for failing to report or pay capital gains taxes associated with those transactions.   For the past several weeks, the media has been reporting that the FBI is investigating Miller:

Miller, 58, who makes $165,200 as a congressman, is being scrutinized for the millions he made selling properties to two Southern California communities outside his district. FBI agents have interviewed officials in both towns.

Miller also faces accusations of using his staff for personal errands and pursuing federal funding for projects beneficial to properties that he and his campaign contributors owned.

He's denied any wrongdoing, and calls media reports about his activities "lies" and "trash." He said he has turned over documentation of his deals to the House Ethics Committee, and he defended himself at a meeting of House Republicans earlier this month.

An FBI spokeswoman declined on Thursday to comment on any aspect of the investigation.

Miller still won't release his tax documents:

Miller will not say how much he paid or release tax returns that would prove it, [MIller spokesperson Scott ] Toussaint said, because that goes beyond what he should have to disclose.

So, Miller continues to deny any wrongdoing, but won't release the info. that can exonerate him.  The IRS needs to get to the bottom of this. 

Below, compiled by the Press-Enterprise, is a timeline of Rep. Gary Miller's land deal transactions and the controversy that has ensued. The paper also describes in some detail the arrangement Miller made with the city of Fontana -- including the claim that eminent domain were invoked by the city -- when that did not happen:

Amid negotiations to buy land from Rep. Gary Miller in 2005 and 2006, [Fontana] city officials provided the congressman with a series of letters advising him to sell and suggesting they could use eminent domain to further their plans.

The city, however, never intended to use the measure to acquire Miller's land, officials there said.

Under the law sellers don't have to pay capital gains taxes on profits from land sales if they were forced to sell by threat of eminent domain and as long as they reinvest the profits within two years.

Miller, R-Diamond Bar, denied accusations that he improperly used the letters to avoid paying capital gains taxes on profits from a trio of Fontana deals under the rarely used tax code section. (Story continues below)

But even if Miller paid the taxes as he maintains, the letters show both an abuse of congressional power and inappropriate behavior on the part of city officials, critics say.

"It sounds like a sweetheart deal for the local congressman," said Ned Wigglesworth, a policy advocate for watchdog group California Common Cause. "If he used his position as congressman to pressure local officials, that undermines the credibility and integrity of his office."

MIller has not released the tax forms relating to the land sales.

May 2002: Rep. Gary Miller sells 165 acres to the city of Monrovia for more than $11.7 million.

December 2004: Miller buys parcels of land in Fontana, reinvesting the Monrovia profits.

March 2005: Fontana provides Miller with letters, at his request, saying they could use eminent domain to acquire his property.

April 2005: In two transactions, Miller sells his property in northern Fontana to the city. He says the profits were $12,400.

March 2006: Again at Miller's request, Fontana officials send a letter indicating they could use eminent domain to take property.

April: Miller sells property in downtown Fontana to the city.

August: Citizens for Responsibility and Ethics in Washington files complaint with the IRS, claiming he wrongfully avoided taxes on the deals.

February: Amid an FBI inquiry into the deals, Miller and Fontana officials maintain they did nothing wrong.

The ethics news of the past couple weeks has been tough on the House GOP leadership. There are investigations swirling around several members of the GOP caucus. In the past, the leaders basically ignored the ethical scandals. The Hill reports on the "challenges on ethics" and the "critical test" facing Minority Leader John Boehner:

House Republicans are engaged in a two-front war. One is the public relations battle over how to proceed in Iraq. But even closer to home, they are facing new challenges on ethics—the other major issue that plagued them during the 2006 campaign and lead to the loss of their majority.

Tuesday’s indictments of two allies of former Rep. Randy “Duke” Cunningham (D-Calif.) on an array of fraud, conspiracy and money laundering charges could ensnare more GOP lawmakers as prosecutors negotiate the terms of their cases. Coupled with new and ongoing Justice Department investigations into the land deals of two other House Republicans from California, Gary Miller and Ken Calvert, Minority Leader John Boehner (R-Ohio) is facing a critical test on how to tackle the ethics front while maintaining a cohesive conference.

The House doesn't have a great history of policing itself on ethics issues. The GOP caucus -- and the Democrats -- will be well-served by a new Office of Public Integrity.

Robert Novak reports that House Minority Leader John Boehner has full confidence in the ethical purity of two ethically challenged members of his caucus -- Jerry Lewis and Gary Miller.   Novak's version is that Boehner has basically exonerated them of any wrongdoing.  However, in reality, Boehner isn't the final authority on such matters:

House Minority Leader John Boehner, addressing Tuesday's closed-door conference of Republican House members, gave a clean bill of health to two California colleagues under federal investigation: Representatives Jerry Lewis and Gary Miller.

If he were not convinced of Lewis' integrity, Boehner told the conference, he would not have approved his continuation as top Republican on the Appropriations Committee. Lewis is being investigated for helping a lobbyist direct millions of dollars in earmarks for clients.

Lewis did not address the conference, but Miller pleaded innocent of wrongdoing in California land transactions. That won Miller a standing ovation, but a few colleagues noted the resemblance to a similar speech to the conference last year by then Rep. Bob Ney of Ohio. On Jan. 19, Ney was sentenced to 30 months in federal prison after pleading guilty to conspiracy in the Jack Abramoff influence-peddling scandal.

Apparently, Rep. Gary Miller (R-CA) is the only party involved who thinks eminent domain was invoked in three separate land deals.  One real estate lawyer doesn't think Miller's eminent domain claim passes the "smell test" according to the Washington Post report:

The threat of eminent domain allows a landowner to invoke Section 1033 of the federal tax code, which delays the payment of capital gains taxes if profits are reinvested within two years.

For all three of the land deals, Miller requested and obtained a letter from the city referring to eminent domain, a spokesman for the congressman said. But city officials later said the letters were meaningless because they did not actually threaten to take Miller's land.

"Eminent domain was not initiated," Monrovia Mayor Rob Hammond said in an interview, referring to the land deal in his city. "Was it discussed? Yes. Do you make a decision [about whether to sell the land] based on what was discussed? That's a question for the IRS."

"All I do is real estate transactions, and I've never heard of anything like this ever happening. It doesn't make a lot of sense," Los Angeles real estate and taxation lawyer Stephen Fainsbert said of Miller's multiple 1033 exemptions. "Even once it's something. But to see it three times -- well, as they say, the smell test is violated."

CREW sees a parallel with some earlier cases:

Melanie Sloan, executive director of Citizens for Responsibility and Ethics, said Miller is "doing what Duke Cunningham and Bob Ney did before him. He's going to the Republican Conference and proclaiming his innocence."