WASHINGTON, Feb. 22, 2008

Congressman Indicted In Land Scam

Arizona Republican Rick Renzi Charged With Wire Fraud, Money Laundering

  • Rep. Rick Renzi, R-Ariz. waits to speak at a Republican fundraiser in Scottsdale, Ariz., in this Oct. 4, 2006 file photo. Photo

    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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(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.

©MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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Add a Comment See all 234 Comments
by antoniof123 February 22, 2008 11:20 AM PST
It is funny they conspire and have a monkey trial for a governor that by all looks even Republicans are saying there is a problem and now this.

What next or should we ask.
Reply to this comment
by quetzal0666 February 22, 2008 11:20 AM PST
Family Values at their best...Priceless..
Reply to this comment
by truthspeake2 February 22, 2008 11:21 AM PST
...another one bites the dust!
Reply to this comment
by jerr11 February 22, 2008 11:34 AM PST
And the greatest Republican crook of them all.

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!!

Reply to this comment
by aboz3 February 22, 2008 11:42 AM PST
Here is another Right Wing, line his own pockets, political hack! The RNC has really trained their people well! Next batch need to learn the "How not to get caught" chapter a little bit better!

Reply to this comment
by sgtrds February 22, 2008 11:43 AM PST
Soon the GOP will have to hold it''s convention in the federal prison at Fort Leavenworth. LOL!
Reply to this comment
by dv2003 February 22, 2008 11:52 AM PST
Why are we just now deciding to go after all the crooks? This has been going on forever!Even more goes on in every office from our Court Houses to our White House!!!!!!!!!
Reply to this comment
by roger_inkart February 22, 2008 11:53 AM PST
Yup, voting Republican is like checking a box next to the question "Are you a total moron?"
Reply to this comment
by wdrussell1 February 22, 2008 11:57 AM PST
Hurry up GOPers. It is time to bring up Ward Churchill.
Reply to this comment
by glossypan February 22, 2008 11:59 AM PST
Too bad about that Ricco Act thing.
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.
Reply to this comment
by forthepeopl1 February 22, 2008 12:04 PM PST
i am sure mccain was involved some how
Reply to this comment
by roger_inkart February 22, 2008 12:09 PM PST
Don''t worry conservatives...no doubt somehow FOX News will change Renzi from an (R) to a (D) - if they even bother to report the story at all.
Reply to this comment
by infidel_us February 22, 2008 12:10 PM PST
If he''s guilty, burn him. Maybe we can purge the party of filth like this and be reborn in 2012.
Reply to this comment
by liberalme February 22, 2008 12:10 PM PST
Hey--by the end of the year, there may not be any "free" repugs to run for office!
Reply to this comment
by irliberal February 22, 2008 12:13 PM PST
A republican in a scandal? I''m not sure I can stand the shock of such an uncommon thing.

Perhaps someone needs to count up and find out how many Republicans are NOT involved in scandals. I think it would be easier.
Reply to this comment
by afsc30574 February 22, 2008 12:15 PM PST
Too bad for Renzi that he''s not Harry Reid, but hey, what''s good for the Democrats is a crime for Republicans.
Reply to this comment
by irliberal February 22, 2008 12:17 PM PST
Hey ... did this story gloss over this guy''s inappropriate relationships with young pages? That''s traditional conservatism too right?

It amazes, astounds and disgusts me to think that anyone could even CONSIDER voting republican based on the last seven years.
Reply to this comment
by klingon69 February 22, 2008 12:18 PM PST
Too bad for Renzi that he''''s not Harry Reid, but hey, what''''s good for the Democrats is a crime for Republicans.
Posted by afsc30574 at 12:15 PM : Feb 22, 2008
Yeah, which one in Louisiana hid the money in his freezer?
Reply to this comment
by aldee41 February 22, 2008 12:21 PM PST
Yet another Republican to leave office to "spend more time" although not, in this case, "with his family". Put him in the same cell as Sen Craig of Idaho and they can argue the virtues of crooked land deals and wide stances while they develop a closer relationship with each other.
Reply to this comment
by roger_inkart February 22, 2008 12:27 PM PST
William Jefferson (D-LA)

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.
Reply to this comment
by sebastian27-2009 February 22, 2008 12:39 PM PST
Forget wheather he is a dem or rep, a crook is a crook and a betrayal of the public trust is on a par with murder in my book and should be treated as such.
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.
Reply to this comment
by wilmoon February 22, 2008 12:41 PM PST
Why is Barry Husseins Chicago land deal not being investigated, and publish in the main news? What about Baracks communist past and present associations?
Reply to this comment
by stevex47 February 22, 2008 12:51 PM PST
If facts come out that McCain did indeed have an affair, and lied about it. Republicans may as well take their little "party" and fly to some other planet. Cause they wont ever have a chance on this planet again.
Reply to this comment
by neoconrcrazy February 22, 2008 12:54 PM PST
As an old friend of mine, seven pesos, used say;

War losers
Debt addicts
Toilet thrill seekers
Ex-alcoholics
Land &
Loan Swindelers

nothng ever good comes from conservative republicans

Reply to this comment
by element51 February 22, 2008 12:54 PM PST
wilmoon.....Could you please be specific? You state that Obama has "communist associations, past and present." Who and what are they? What are your sources? If this is true then you owe it to the public to provide the information so we can check it out for ourselves. That is a very serious charge and if proven could put an end to Obama''s career. No one wants to elect a communist as president. Please provide us with the relevent information that you possess. You will be doing a wonderful public service.
Reply to this comment
by missingamerica February 22, 2008 12:54 PM PST
I bet there is a lot of Republican head-shaking going on in Washington''s private clubs today, as they sip high-end Scotch and commiserate over the changes in this Administration:

"Gonzo would have squashed this."
Reply to this comment
by neobrian-2009 February 22, 2008 12:57 PM PST
Comments are limited to 1500 characters,...
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 !
Reply to this comment
by consciousnes February 22, 2008 12:57 PM PST
There you go throwing generalities again, there are just as many crooked Democrats as Republicans. In fact I don''t believe any congressman any more. They just keep passing their salary increases each year with NOTHING said to ANYONE. Lets see, isn''t that a Democrate controled congress?
Reply to this comment
by bm6005 February 22, 2008 1:01 PM PST
Give them a fair trial, then HANG THEM!!!
Reply to this comment
by joyous88 February 22, 2008 1:04 PM PST
Right On Neoconism!



The republicon party has been taken over by evangelical fascists, corporate criminals

impeach now
Reply to this comment
by bogusbones February 22, 2008 1:10 PM PST
it seems the repub ne''er do wells are gathering their fair share of headlines these days, but the dems have had their days. what is disturbing is the people who violate the public trust for their own gain (financial, sexual, etc.) i am personally appalled at some of the nefarious activities these people get involved with. nothing pleases me more than to see a lawmaker get convicted because they think they are above the law. with the anticipated changes in d.c. in the upcoming election, we should use d.c. as a nuclear test zone, make sure all the lobbyists are there and move our government to topeka ks. and start all over.
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.
Reply to this comment
by neoconrcrazy February 22, 2008 1:11 PM PST
Good posting neocon !!!

Reply to this comment
by neobrian-2009 February 22, 2008 1:12 PM PST
A True Comrade for JUSTICE
Posted by neoconism at 12:57 PM : Feb 22, 2008
----------------------------
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!
Reply to this comment
by namesnames February 22, 2008 1:16 PM PST
neoconism:
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.
Reply to this comment
by ioweign February 22, 2008 1:16 PM PST
There you go throwing generalities again, there are just as many crooked Democrats as Republicans. In fact I don''''t believe any congressman any more. They just keep passing their salary increases each year with NOTHING said to ANYONE. Lets see, isn''''t that a Democrate controled congress?

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...
Reply to this comment
by excoachken February 22, 2008 1:19 PM PST
Has there ever been an honest Republican (other than Abe).
Reply to this comment
by truthspeake2 February 22, 2008 1:19 PM PST
What''s truly laughable is that these idiots (the GOP) still think they have a chance at winning the white house THIS November. I have better odds at winning the Power Ball Lottery...and I don''t even buy tickets!
Reply to this comment
by excoachken February 22, 2008 1:20 PM PST
Oh, yeah, I forgot, Abe hid his homosexuality from his wife. well, we''re back to ZERO.
Reply to this comment
by joyous88 February 22, 2008 1:20 PM PST
namesnames;

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.
Reply to this comment
by joyous88 February 22, 2008 1:22 PM PST
speaking of that,

did you see how often Larry Craig, Jeff Gannon, ted haggard, all visited the white house
Reply to this comment
by honestabe8 February 22, 2008 1:23 PM PST
Thanks, exCoachKen...I do my best...

Reply to this comment
by hotpaulie February 22, 2008 1:24 PM PST
Republicans are going to get slaughtered in November!
Reply to this comment
by truthspeake2 February 22, 2008 1:29 PM PST
Republicans are going to get slaughtered in November!


--------------------------------------------------------------------------------

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!
Reply to this comment
by ajaxtheleast February 22, 2008 1:30 PM PST
Call after call coming in from his republican

colleges congratulating him for being caught in

everything but an airport mens restroom !
Reply to this comment
by randynason February 22, 2008 1:33 PM PST
Aw, Geeze! A corrupt Republican? Say it ain''t so! Another nail in the GOP coffin is SO-O-O sweet!
Reply to this comment
by awoloilman February 22, 2008 1:55 PM PST
Where''s "easeup"? DOH!
Reply to this comment
by hawksprings February 22, 2008 1:56 PM PST
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?
Reply to this comment
by neobrian-2009 February 22, 2008 2:05 PM PST
Clinton Was Found " NOT GUILTY " By Independent Findings,.
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
----------------
People Forget The Truth,..They Only Believe What They WANT To Believe,..EVEN If it`s a LIE!
Reply to this comment
by jjp735i February 22, 2008 2:12 PM PST
I hope the Democrats are paying attention. Republican corruption is out of control. The Democrats better make sure they are not following the same lead. The Republicans will be looking to make sure someone else shares the heat when ever possible.

As to the Republican Party.......ROFLMAO....
Another member of the morals police bites the dust.
Reply to this comment
by joyous88 February 22, 2008 2:15 PM PST
republiCons are still blaming Clinton, after eight years of the criminal bush and 12 years of republicon
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
Reply to this comment
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