Congressman Indicted In Land Scam

(CBS/AP)  Republican Rep. Rick Renzi was indicted Friday on charges of extortion, wire fraud, money laundering and other matters in an Arizona land swap scam that allegedly helped him collect hundreds of thousands of dollars in payoffs.

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.

[alphaa10-2009]

In 2004, the Department of Bush Justice was told to find evidence against Democratic rivals for public office. At both state and federal levels, the GOP went on a partisan warpath, directed by Karl Rove and point man Gonzales.

Gonzales made sure the word was out that Federal presecutors must go after "vote fraud" across the nation.

Those who mistakenly presumed this had to be based on evidence came up short-- in fact, eight were fired for their "failure" to use the power of federal law enforcement for partisan ends.

The rest of the prosecutors-- those who said "Yes, anything you want, Karl!"-- fared little better, providing no basis for a GOP campaign against corruption. But they kept their jobs.

By now, we understand how Rep. Renzi could thumb his nose for three years at corruption charges against him in the public forum. GOP leaders and Gonzales simply looked the other way.

Only now, under Mukasey, has there been more of an effort to investigate criminality without demanding a party identification badge, first.

This comes only seven years into the most corrupt administration on record. Heckuva job, Bush!

[tulcak]

*** (seks) ************ (mother focker) let''s see which one gets censored... just curios as to why cbs thinks seks is a bad word

[tulcak]

yawn... what ANOTHER corrupt republican? this is just SOP for the republicans,... there are over 220 republicans nationwide that are being investigated, probed, indicted, convicted for things such as this, for ARMPAC, abramoff scandal, *** scandals. I mean, come on, it should be pretty obvious at this point what the republicans represent.

[mrconservatv]

The political terms left and right arose during the French Revolution,

and the original meaning of far right

was the throne-and-altar reactionaries such as Joseph de Maistre and Louis de Bonald.

They rejected democracy, liberalism and individualism, and were in favour of an authoritarian monarchical government.


Nothing has changed but the date

[king77shaw]

it''s all one party ... and we''re not invited.

[xlib]

veteran71-as per usual, a lib that twists and turns things around. Never said a WORD about pointing out corruption as America bashing. However, I did point out many of your polticos and how they have acted as ll as the global warming scam by the goracle.
So, how DID you make it through the clinton good time years??
And, as typical, all you libs can do is name call and attempt to demean anyone who has another point of view. Bet you''re in favor of the fairness doctrine.
Have you had your medication levels checked lately??? So full of hate and bile. Shame.

[pilgrimsway-2009]

Hey FloydZepp,
Check my post on the TURKEY PASSES.

[pilgrimsway-2009]

Hello, I''m Johnny Cash and Im''a vot''in for Hillary in 20008!

[grazinggoat]

CBS News: ''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.''

-I''m eager to see the Haliburton board fronting Justices for allegations of stealing the Public Treasury and its ex-president DicckCheney''s for lies over and over.

[glossypan]

"This is Sen. John McCain. I''m calling to urge you to support my friend Rep. Rick Renzi for Congress. Rick has represented the first district of Arizona with tenacity, honesty and integrity beyond reproach. I work with Rick every day and can report to you his total dedication to the people of Arizona and the United States. Please join me in supporting rural Arizona''s workhorse congressman on Nov. 7. [Paid for and authorized by Rick Renzi for Congress]."
====
Text of a robocall to voters in Rick Renzi''s district.
=============== ================
Despite making the Citizens for Responsibility and Ethics in Washington "Most Corrupt Members Of Congress" list for the last three years, Renzi was co-chair of McCains Arizona presidential campaign.