Congressman Indicted In Land Scam
Arizona Republican Rick Renzi Charged With Wire Fraud, Money Laundering
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Rep. Rick Renzi, R-Ariz. waits to speak at a Republican fundraiser in Scottsdale, Ariz., in this Oct. 4, 2006 file photo. (AP Photo)
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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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See all 234 CommentsWhat next or should we ask.
hobnobbing in Africa, trying to build his Legacy.
935 LIES
4000 dead Americans, because of those lies!
And he''s trying to save his legacy!??
ROTFLMAO!!
Continuing Criminal Conspiracies can face huge fines in an effort to shut down their fraudulent operations.
The miscreants can have years added to their prison terms if they are participating in a Continuing Criminal Conspiracy.
I would hate to see the Republican Party put out of business just because of the participation of a slim majority of Republican officeholders in a Continuing Criminal Conspiracy.
Perhaps someone needs to count up and find out how many Republicans are NOT involved in scandals. I think it would be easier.
It amazes, astounds and disgusts me to think that anyone could even CONSIDER voting republican based on the last seven years.
Posted by afsc30574 at 12:15 PM : Feb 22, 2008
Yeah, which one in Louisiana hid the money in his freezer?
Posted by USAyesterday at 12:20 PM : Feb 22, 2008
Yup, one corrupt D set against an army of corrupt Republicans.
Nice try - but this is yet more proof that the GOP is the party of corruption.
By the way, I now read that McCain''s staff includes 56 lobbiests. This is the man that touts himself as being "Mr. Honesty"? I''ll go with Barach.
War losers
Debt addicts
Toilet thrill seekers
Ex-alcoholics
Land &
Loan Swindelers
nothng ever good comes from conservative republicans
"Gonzo would have squashed this."
Not Near Enough space to list the CORRUPT GOP of the RECENT Past,..The MOST CORRUPT SECT in the History of The World! NO MORE GOP ! NO MORE GOP !! NO MORE GOP !!!
Friends NEVER let friends Vote republiCon !
The republicon party has been taken over by evangelical fascists, corporate criminals
impeach now
being in idaho i do have to laugh at the support our sen. crapo is giving our toe tapping, bathroom dancing sen. craig. geez, these guys are insane.
Posted by neoconism at 12:57 PM : Feb 22, 2008
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We need more people like You,..This Corrupt ,Greedy Sect of Perverts Must be Eradicated !The Damage they have done to our country and the whole world is a complete Travesty ! Truly Pathetic! NO MORE GOP! NO MORE GOP !
Friends NEVER let friends Vote republiCon!
it is absolutely amazing that no democrats are unethical/criminal!
individuals in both parties are so wrapped up in their positions on the archaic, one-dimensional political spectrum that the progress of this country is stifled.
Posted by Consciousnes at 12:57 PM : Feb 22, 2008
Corruption doesn''t play favorites but the Republicans had controlled Congress from what 1992 to 2006 and you are blaming the Democrats for pay raises. I would like to remind you that Newt Gingrich shutdown government. Government employees HAD to report for work without pay while Congress continued to receive their paychecks - that was Republican politics...
I quess that you can not count, sure some dems are bad apples,
but the entire republicon party is rotten, and it starts with bush/rove, read a little more you might catch on.
did you see how often Larry Craig, Jeff Gannon, ted haggard, all visited the white house
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Posted by hotpaulie at 01:24 PM : Feb 22, 2008
Turkeys are always slaughtered just about that time of the year...they''ll blend right in!
colleges congratulating him for being caught in
everything but an airport mens restroom !
Why the double standard?
Could it just be politics as usual?
You FORGET THIS!
I thought we learned in the Clinton years with Whitewater that bad land deals are no be deal?
Why the double standard?
Could it just be politics as usual?
Posted by hawksprings at 01:56 PM : Feb 22, 2008
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People Forget The Truth,..They Only Believe What They WANT To Believe,..EVEN If it`s a LIE!
As to the Republican Party.......ROFLMAO....
Another member of the morals police bites the dust.
controlled congress.
these people brought us the wars in Iraq and in Vietnam
end the GOP and their christian allies,
no more tax breaks for churches
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