As Ethical Questions Linger, Rangel’s Financial Clout Erodes

He's black and therefore untouchable, right Pelosi?

http://www.nytimes.com/2009/10/17/us/politics/17rangel.html

Representative Charles B. Rangel of New York has so far been able to hang
onto his powerful committee chairmanship despite damaging disclosures
about his financial dealings. But when it comes to the kind of clout that
Washington pays close attention to — campaign dollars — his status seems
to be slipping.

The pace of financial contributions to Mr. Rangel, a fund-raising
powerhouse for the Democratic Party who is chairman of the influential
House Ways and Means Committee, has dropped by nearly half this year from
the previous election cycle, according to the most recent campaign finance
disclosure statements.

From January 2009 to September 2009, he raised a total of about $1.7
million through three committees he controls and uses to dole out money to
Democratic candidates and causes. Mr. Rangel brought in more than $3.1
million with only two committees he controlled during the corresponding
period in the previous election cycle, the financial disclosure statements
show.

Now, Democratic officials and donors say that that the ethical questions
hanging over Mr. Rangel, who has represented Harlem in Congress since
1971, are taking a toll, particularly as Republicans spotlight his
problems in ads and repeated pushes are made to try to force him to step
aside from the chairmanship. The House Ethics Committee is investigating
the allegations against him.

The falloff in contributions has implications for the Democrats as they
face a tough electoral season, with Republicans seeking to chip away at
their majority.

As Ways and Means chairman, Mr. Rangel holds one of the premier positions
on Capitol Hill for raising money for the party from individuals and
groups looking to influence legislation moving through the committee,
which writes the tax code and is involved in shaping major policy.

In the previous election cycle, Mr. Rangel contributed $3.5 million — more
than any other member of Congress — to the Democratic Congressional
Campaign Committee and its candidates around the country, according to
party officials.

A Rangel spokesman said that the congressman’s latest totals “are strong
figures, especially considering the state of the economy and fund-raising
across all sectors.” He added, “The congressman is working harder than
ever to represent his constituents in Congress as he works with leadership
to finalize health insurance reform legislation and further efforts to
help our community and economy recover from this recession.”

Jennifer Crider, speaking for the House Democrats’ campaign committee,
declined to comment on Mr. Rangel’s fund-raising beyond saying, “The
D.C.C.C. is a member participation committee and we appreciate everything
our members do for us.”

A Democratic fund-raiser said he and his company recently tried to arrange
a fund-raising reception for Mr. Rangel, only to find that many people
were wary of attending. “I had a ton of people e-mail me saying that they
were not going to give to him because of the cloud hanging over him,” said
the fund-raiser, who spoke on condition of anonymity because he did not
want to antagonize the congressman.

“It’s not like the old days,” the person continued. “Donors now keep away
from anyone who is under a cloud.”

Not only has Mr. Rangel’s fund-raising pace slowed, but what money he is
raising is increasingly going to pay for lawyers defending him in the
ethics inquiry. He spent $255,000 on legal fees in the last three months
alone. As a result, he has far less money not only for his own political
needs but to help other Democrats, a practice that helps veteran lawmakers
build influence.

“At this point, most people know that he is spending a lot of money on
legal fees,” said a senior Democratic official who supports Mr. Rangel but
who spoke on condition of anonymity because he was not authorized to
discuss the matter publicly. “That makes it much harder to raise money.”

Mr. Rangel has been under investigation by the House Ethics Committee
since last year after The New York Times reported that he rented four
rent-stabilized apartments in Harlem for below market value. The inquiry
was eventually expanded to include unreported income and unpaid taxes from
a villa he owns in the Dominican Republic and questions about whether he
improperly used his office to raise money for a center to be named in his
honor.

Last week, the inquiry was expanded again to examine hundreds of thousands
of dollars in income and assets that he failed to report in his financial
disclosure forms for 2002 through 2006.

That announcement came a day after Republicans tried to force a vote on
the House floor calling for Mr. Rangel’s removal as chairman of the Ways
and Means Committee. Democrats ultimately defeated the move.

Lawyers for Mr. Rangel have said that sloppy bookkeeping led him to file
incomplete or inaccurate financial disclosure forms, and a spokesman has
said that steps have been taken to correct the errors.



--
Nancy Pelosi, Democrat criminal, accessory before and after the fact to
Rangel's tax evasion.
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