Cross-posted from WhereIStand
Democrats have had a hey day attacking the corruption of Rep. Mark Foley (R-Fl.) a low level member of the Republican leadership. Now a scandal of different sort:
Senate Democratic Leader Harry Reid collected a $1.1 million windfall on a Las Vegas land sale even though he hadn’t personally owned the property for three years, property deeds show.
In the process, Reid did not disclose to Congress an earlier sale in which he transferred his land to a company created by a friend and took a financial stake in that company, according to records and interviews.
The Nevada Democrat’s deal was engineered by Jay Brown, a longtime friend and former casino lawyer whose name surfaced in a major political bribery trial this summer and in other prior organized crime investigations. He’s never been charged with wrongdoing _ except for a 1981 federal securities complaint that was settled out of court.
Land deeds obtained by The Associated Press during a review of Reid’s business dealings show:
_The deal began in 1998 when Reid bought undeveloped residential property on Las Vegas’ booming outskirts for about $400,000. Reid bought one lot outright, and a second parcel jointly with Brown. One of the sellers was a developer who was benefiting from a government land swap that Reid supported. The seller never talked to Reid.
_In 2001, Reid sold the land for the same price to a limited liability corporation created by Brown. The senator didn’t disclose the sale on his annual public ethics report or tell Congress he had any stake in Brown’s company. He continued to report to Congress that he personally owned the land.
_After getting local officials to rezone the property for a shopping center, Brown’s company sold the land in 2004 to other developers and Reid took $1.1 million of the proceeds, nearly tripling the senator’s investment. Reid reported it to Congress as a personal land sale.
The complex dealings allowed Reid to transfer ownership, legal liability and some tax consequences to Brown’s company without public knowledge, but still collect a seven-figure payoff nearly three years later.
Reid hung up the phone when questioned about the deal during an AP interview last week.
Hung up the phone? A tad defensive, aren’t we Senator? Why should you worry. Just because your friend (who happened to be part of a bribery scandal) helped you to buy some land (including some from a seller who benefited from your vote.) that you then made $700,000 on, why should you worry?
The staff is insisting it’s all innocent, and they don’t have any records on Senator Reid’s ownership rights in this LLC because this multi-millionaire effort was considered "an informal understanding between friends."
Now, tell me, who believes that? Who sets up a 2 or 3 million dollar LLC and says, "let’s just keep it between friends." I’ve never heard an excuse so stupid. If nothing else, Reid has violated some technocratic portions of law:
Kent Cooper, who oversaw government disclosure reports for federal candidates for two decades in the Federal Election Commission, said Reid’s failure to report the 2001 sale and his ties to Brown’s company violated Senate rules.
"This is very, very clear," Cooper said. "Whether you make a profit or a loss you’ve got to put that transaction down so the public, voters, can see exactly what kind of money is moving to or from a member of Congress."
"It is especially disconcerting when you have a member of the leadership, of either party, not putting in the effort to make sure this is a complete and accurate report," said Cooper. "That says something to other members. It says something to the Ethics Committee."
Other parts of the deal _ such as the informal handling of property taxes _ raise questions about possible gifts or income reportable to Congress and the IRS, ethics experts said.
Stanley Brand, former Democratic chief counsel of the House, said Reid should have disclosed the 2001 sale and that his omission fits a larger culture in Congress where lawmakers aren’t following or enforcing their own rules.
"It’s like everything else we’ve seen in last two years. If it is not enforced, people think it’s not enforced and they get lax and sloppy," Brand said…
Reid and his wife, Landra, personally signed the deeds selling their full interest in the property to Brown’s company, Patrick Lane LLC, for the same $400,000 they paid in 1998, records show.
Despite the sale, Reid continued to report on his public ethics reports that he personally owned the land until it was sold again in His disclosure forms to Congress do not mention an interest in Patrick Lane or the company’s role in the 2004 sale.
AP first learned of the transaction from a former Reid aide who expressed concern the deal hadn’t been properly reported.
Reid isn’t listed anywhere on Patrick Lane’s corporate filings with Nevada, even though the land he sold accounted for three-quarters of the company’s assets. Brown is listed as the company’s manager. Reid’s office said Nevada law didn’t require Reid to be mentioned in the filings.
Now, we’re into our third week of the Foley Scandal which is being kept alive on life support by the left wing of the blogosphere and the press. Let me make a prediction about this Reid story. It will drop from the headline despite (and I’d say because of):
1) Reid being Minority Leader
2) The possibility of Democrats retaking the Senate
3) The implications of corruptions from the most powerful Democrat in Washington.
Clearly, it needs in an investigation and it deserves at least the same amount of coverage that Mark Foley’s Instant Messages got.
