THE LATEST EDITION of The Nation has as its cover story a detailed expose of what it calls “the shadow lobbying complex,” an issue explored at great length in this blog. While reading the article and delighting in its infographics, this blogger decided that a brief timeline of modern disclosure laws would make for an interesting post.
And so I began with the summer of 1935, when Rep. Denis Driscoll (D-Pa.) received 816 telegrams from constituents pleading him to oppose a measure that would break up the utility trust companies, which were then being run by a handful of remarkably wealthy men. The telegrams would have made for an impressive case study in lobbying from the bottom up, or “grassroots lobbying,” except for one important detail: the constituents behind the telegrams were completely fabricated. The whole thing was a sham, conjured together and funded by the utility companies.
This incident and the broader debate surrounding the Wheeler-Rayburn Utility Holding Company Act set the gears in motion for modern disclosure law, which today is ridiculed as an utter failure. Were I actually to have posted a timeline of lobbying disclosure, I might have used just five dates:
1946: The Federal Regulation of Lobbying Act is passed as a late response to the utility company debate
1991: the GAO exposes the law’s shortcomings
1999: The Lobbying Disclosure Act (LDA) is passed as a second try
2006: Jack Abramoff reports to prison, proving LDA a failure
2007: The Honest Leadership and Open Government Act (HLOGA) is passed as a third try, a significant amendment to LDA that adds criminal sanctions and stricter reporting requirements
Yet this would appear a very lopsided timeline, with nearly half a century separating the first two dates. Did nothing relevant transpire between the passage of The Federal Regulation of Lobbying Act and the GAO report that deemed it a failure?
In fact, something did. In 1977, a book was published that would become the basis for the GAO’s report. According to The Nation, the report found that “10,000 lobbyists listed in an industry guidebook had failed to register. Of those who had, as many as 94 percent failed to complete their registration forms as required by law.” This “industry guidebook” just happens to be Washington Representatives, a Lobbyists.info publication entering its 37th year. If one accepts The Nation’s claim that the GAO report was the “impetus” for LDA, and former Rep. Charles Canady’s (R-Fla.) assertion that the Washington Representative’s finding “underscored” the need for LDA, then to a significant extent Washington Representatives is responsible for LDA. The innumerable ironies that come packed with this are too rich and detailed for this blog. Needless to say it’s a fascinating discovery.
JACK ABRAMOFF penned an advice column in Businessweek titled “How to Get Your Perk Into a Bill.” “In most cases,” he argues, “you won’t worry about members of Congress who are opposed to you. If you do your job right, they’ll only find out about it once it’s already the law.”
Mark Zuckerberg hired a couple of lobbyists for his new advocacy group. “Zuckerberg is teaming with other Silicon Valley execs like Joe Green to start the group, which is expected to broadly focus on economic issues like immigration and education reform.” The lobbyists were picked up from Fierce, Isakowitz & Blalock and Peck, Madigan, Jones & Stewart.
From The Hill: “The beer giant Anheuser-Busch Companies Inc. has added lobbying help as it tries to acquire the producer of Corona and other popular beer brands.” See an earlier LobbyBlog post “Beer Industry Infighting Returns to Congress.”
“I’ve decided not to be the model penitent for your unconstitutional tribunal,” said a gun lobbyist in Colorado before walking out of an ethics investigation exploring whether he violated a rule against intimidating legislators. “Neville [the lobbyist] was escorted from the capitol that day and Gerou [Rep. Cheri Gerou, a Republican legislator] filed an ethics complaint against him, alleging that his mention of sending mailers to her constituents violated an ethics rule — Rule 36 — against attempting to intimidate or influence legislators.”
On a humorous note, Dog the Bounty Hunter lobbied the Oklahoma legislature for tougher bail enforcement. “The state Senate took the occasion to pass a resolution honoring the 27-year bounty hunter and former bail bondsman. Presumably, lawmakers were scared not to do so”
The Kentucky Legislative Ethics Commission has hired Jack Abramoff to teach an ethics class to state legislators. Howard Marlowe, president of the American League of Lobbyists, calls this decision “disgusting,” saying in a statement, “How in the world do people think this man has any credentials to teach ethics to lawmakers? Not only does he not know a thing about ethics, he has never apologized or accepted responsibility for the crimes that sent him to jail.”
Abramoff, who will earn $5,000 for the gig, says, “I have not only reduced my speaking for this event, but like all income I earn, it will enable Online Pokies the victims of my case to receive restitution payments.”
Abramoff took issue with Marlowe’s statements, saying “Does Mr. Marlowe find that objectionable? Or is he just acting as the lobbyist for the lobbyists in trying to silence the messenger?”
According to Politico, Abramoff continued, “It must be particularly galling to him to have someone with my experience and knowledge of the tricks of their trade spilling them in my book and in speeches. Undoubtedly he is petrified that I am addressing the state Legislature in Kentucky, as they have been most effective in reducing lobbyist corruption and political foul play.”
Jack Abramoff sat down with 60 Minutes’ Leslie Stahl in a segment called “The Lobbyist’s Playbook,” and had a lot of criticism about the current political system, saying nothing has changed to improve ethics since he worked on K Street, despite HLOGA and other reforms enacted largely in response to the scandal that erupted around him.
Early in the interview, Abramoff responded to an astounded Stahl, who inquired whether his actions were legal, “We would certainly try to make the activity legal if we could. At times, we didn’t care.” He went on to tell her that the problem with our system is that “our system is flawed and has to be fixed. Human beings populate our system. Human beings are weak.”
Abramoff suggested that one way to improve ethics is to close the revolving door between K Street and Capitol Hill. “If you make the choice to serve the public, public service, then Buy Cialis serve the public, not yourself. When you’re done, go home. Washington’s a dangerous place. Don’t hang around.” He explained how the revolving door benefited him as a lobbyist trying to wield influence over congressional offices:
“When we would become friendly with an office and they were important to us, and the chief of staff was a competent person, I would say or my staff would say to him or her at some point, ‘You know, when you’re done working on the Hill, we’d very much like you to consider coming to work for us.’ Now the moment I said that to them or any of our staff said that to ’em, that was it. We owned them. And what does that mean? Every request from our office, every request of our clients, everything that we want, they’re gonna do. And not only that, they’re gonna think of things we can’t think of to do.”
Tom DeLay, the former House Majority Leader convicted on conspiracy to launder money in state elections, and who has often been listen in connection with the Jack Abramoff trials, has established a new legal defense fund to appeal a January conviction.
According to the, in fact, he can now “accept contributions of any type or amount.”
In addition to catching heat for receiving contributions to his defense fund by lobbyists, several Congressmen, including fellow Texan Rep. Lamar Smith (R-Tx.) were also noted as having contributed to DeLay’s first legal defense fund, in what some considered a breach of House Ethics rules.
Craig Richardson, a key fundraiser for DeLay while he was still in public office, has been listed one of two trustees of the fund. DeLay was sentenced to three years in prison, which he evaded by posting $10,000 bond, and ten years of community service in lieu of an additional five years on a related charge.
Michael Scanlon is the latest Abramoff associate sentenced for his role in the corruption scheme. Â A district judge sentenced the former House aide to 20 months in federal prison. Â Scanlon pleaded guilty in 2005 to conspiracy to bribe public officials and honest-services fraud, which his attorney referred to as âextraordinary cooperation,â when he requested a sentence that did not include jail time. Â The district attorney requested two years imprisonment, despite Scanlonâs role in aiding the Department of Justice in 20 Abramoff-related investigations. Scanlon said that he is âso sorry, so very remorseful,â at the sentencing.
Fraser Verruscio, another official on the hot seat because of his connection to Abramoff, was also convicted of one count of conspiring to accept an illegal gratuity, one count of making a false statement in failing to report gifts from lobbyists. Â His sentencing is scheduled for May 6, and he could be facing up to five years in prison and $250,000 in fines for each charge.
There were not a tremendous amount of headlines about lobbying or lobbyists this week, but the stories that hit the press were big ones.
First, Howard Marlowe, the new president of the American League of Lobbyists, releasedhis take on Tuesday night’s State of the Union address. And suffice it to say he was not impressed with the president’s remarks. In fact, Marlowe reported that the league “deplore[s] the inflammatory rhetoric about lobbyists,” and called the president out on several instances in which he himself has consorted with lobbyists. He also reiterated the stance that earmarks are a Constitutional right and an important part of the democratic legislative process.
Also this week, the trial of Fraser Verrusio, a former House aide who is the final conspirator charged in connection with the long-running Jack Abramoff probe, began. Opening statements took place Wednesday, and neither side mentioned the disgraced former lobbyist. Verrusio is being charged with public corruption for accepting what prosecutors are calling the “illegal gratuity” that was his ticket to the 2003 World Series. His defense lawyer, Joshua Berman, called this “a case about nothing,” because the New York trip was “a legitimate, run-of-the-mill, third party trip.”
Over the weekend, the 2010 lobbying numbers were released: last year, with the combination of stalled Congressional action in anticipation of mid-term elections and the still-slow economy, lobby shops saw a decline in the bottom line. Large firms saw booming revenue, thanks to acquisition of flailing boutique operations, but as a whole, most lobbying offices saw stagnant or declining numbers in 2010. The current Congressional climate — including uncertainty about the budget and appropriations process, and a heavy concentration of power within the regulatory agencies — have some concerned that this year may not be much better. Patton Boggs, which acquired Breaux Lott Leadership Group in July, and Akin Gump, which reported a $3 increase over 2009, remain the top earners, according to recently filed LD-203 reports.
Last year saw Executive Orders and court rulings and legislative movements and the passing of some of the profession’s most dearly-loved members. Here is a look back at the top headlines of 2010:
Trials, convictions and releases – Kevin Ring was convicted on five counts of corruption November 15 and awaits sentencing, after a 2009 trial resulted in a hung jury. Paul Magliocchetti pleaded guilty in September to making illegal campaign contributions. The justice department is seeking a 57 month imprisonment for what prosecutors are calling “one of the largest criminal schemes in U.S. history to violate federal campaign finance laws.” Jack Abramoff, initially sentenced to six years for fraud, tax evasion, and conspiracy to bribe public officials, was released from federal prison in June, and his term at a work-release-like program at a Baltimore pizzeria ended in early December.
Court rulings – In January, the Supreme Court ruled in Citizens United v. Federal Elections Commission corporate funding of independent campaign ads could not be limited under the First Amendment. Many consider the March Speechnow ruling to be a follow-up to Citizens United; the spring case allowed for unlimited giving to “independent expenditures committees.” Both cases, however, upheld disclosure requirements while lifting spending restrictions.
Legislative Bullying – Congress sought to “fix” the Citizens United ruling with the DISCLOSE Act, which would require organizations that back federal election campaigns to disclose the names of large donors, as well as list said donors in any campaign ads the organizations run, and ban foreign governments, government contractors, and TARP recipients from donating to campaigns. The act passed in the House in June, but failed in the lame duck session in the Senate. In addition, a proposed ban on earmarks failed in the Senate November 30.
Executive Orders – In June, President Obama issued an order banning lobbyists from advisory boards of federal departments and agencies. It also banned all gifts from lobbyists to executive branch appointees, appointees-turned-lobbyists from lobbying the branch for the duration of his administration, and tightened revolving door policies.
Deaths – Patti Jo Baber, executive director of the American League of Lobbyists, passed in December. She was described as the “backbone” of the organization and a prominent member of the lobbying community.
In this, the week of ethical trial decisions, proceedings did not fare well for the defendants.
The trial of Kevin Ring, the only Abramoff associate to try his luck in court, came to an end Monday, when a jury found him guilty of five felony counts of corruption. Ring took eleven congressional aides and Bush administration officials down with him, along with nine others.
Tom DeLay, the former Speaker of the House charged with money laundering and conspiracy, did not take the stand in his own defense before his attorney rested his case. Though the case is largely circumstantial, several witness testimonies have implicated DeLay as having been involved in, or at minimum knowledgeable about, the transactions. Closing arguments are scheduled for Monday.
Rep. Charles Rangle (D-NY) was found guilty of 11 charges, including improperly soliciting lobbying funds and failing to disclose income and assets.
Though facing investigation, and not actually on trial, conservative backers of American Principles in Action received negative press for not disclosing funds spent on Latino outreach this past election. Citizens for Responsibility and Ethics in Washington is concerned that the group may have exploited the Citizens United decision beyond the Court’s initial intent.
Citizens for Responsibility and Ethics in Washington is seeking information regarding why Jack Abramoff was prevented from talking to the media about his role in what the organization’s executive director, Melanie Sloan calls “one of the largest congressional corruption scandals in history.” The full complaint filed in a suit against the Department of Justice can be found here.
Following up with a story posted earlier this week, “Campaign Finance Reformers see a tough road ahead,” the FEC has again come under fire for its lax regulation heading into the mid-term elections. Huffington Post reported, “according to campaign finance experts, it’s unlikely” that the FEC will punish campaign finance law violators any time soon. The article goes on to refer to the FEC as ” a toothless tiger made up of six members that usually deadlocks on the important decisions.”
Lobbyists and organizations may be given a "get out of jail free" card by the FEC and the Obama administration, at least for a little while.
This snowballs into another issue: President Obama’s demonstrated lack of commitment to advance his campaign reform platform. So far, despite having the opportunity (and perhaps responsibility, since the terms have ended) to replace three commissioners whose aversions to the regulatory laws reportedly prevent them from voting in favor of committee action against potential violators, the FEC’s make-up remains unchanged.
Donald McGhan, who remains a commissioner pending appointment of a successor, once said “[The FEC is] ‘not like other agencies because you have the charge of the fox guarding the hen-house. You gonna appoint your guys to make sure you are taken care of. The original intent was for it to be a glorified Congressional committee. That’s the way I see it,'” according to a column written by Melanie Sloan, executive director of Citizens for Responsibility and Ethics in Washington.
The president is reportedly waiting on members of the Senate to recommend new FEC commissioners for him to appoint before replacing any members.
The Veterans’ Alliance for Security and Democracy (VetPAC) is one of several organizations griping about the Chamber of Commerce election spendings. The group filed suit against the Chamber Oct. 18, alleging its receipt of foreign funds may in some way damage the purity of its campaign contributions. VetPAC is surely banking on FEC regulation (no pun intended).
GOP members of the House Ethics Committee want Rep. Zoe Lofgren to just schedule trials for Reps. Waters and Rangel already! (Roll Call)
Jack Abramoff was spotted in Dupont Circle on Tuesday, having a discussion with some friends about “writing a book,” according to Roll Call.
Rep. Zack Space (D-Ohio) has been a public proponent of cutting lobbyists’ ability to give campaign contributions, and has also pledged not to accept any lobbyist campaign contributions himself. The GOP is hitting Rep. Space by claiming that his acceptance of “special interest” PAC money and contributions from lobbyists’ family members constitutes the same thing.
Rep. Chellie Pingree (D-Maine) was getting in hot water from several groups for her use of a private jet… but the airplane was cleared for her use by the Ethics Committee, since it is owned by her fiance.
Quote of the Week:
“There is definitely a big distance from President Obama’s Ethics.gov campaign promise and what they have done so far… They are failing to live up to their promise, but their promise was aimed very high.” – John Wonderlich, policy director for the Sunlight Foundation, The Hill, 10/1/10
The latest incarnation of the Jack Abramoff story is now playing at the Toronto International Film Festival. “Casino Jack,” the big-screen adaptation of Abramoff’s rise to power and fall from grace, stars Kevin Spacey in the lead role.
Spacey, who was on hand for the film’s premiere in Toronto, told Reuters that he played the role with a certain amount of sympathy for the now-disgraced lobbyist:
“His greed wasn’t self interest… Is it just that he got caught up in the game of being the best, of making the most money in the culture of the lobbying industry? When you break it down, he wasn’t doing anything that everyone else in Washington wasn’t doing. He was doing it louder, better and making more money than everyone else.”
The government has ended a six-year investigation of former House Majority Leader Tom Delay’s (R-Texas)’s ties to the disgraced lobbyist Jack Abramoff.
The news was relayed by DeLay’s lead counsel in the matter, Richard Cullen, chairman of law firm McGuireWoods, who said he received a call from the Justice Department’s Public Integrity Section informing him of the decision and letting him know that it was approved for public knowledge.
The extraordinarily long (more than 6 years) and expensive probe marked the rise of a wave of lobbying scandals that helped Democrats regain the House majority in 2006. In 2005, a Texas court charged DeLay with criminal violations of state campaign finance laws and money laundering. He pled not guilty, citing political motivation for the charges.
Once one of Washington’s top power brokers, DeLay now spends most of his time at his home in Sugar Land, Texas, and recently starred in the reality show, ‘Dancing with the Stars.’ He is also founder and president of a strategic political consulting firm, First Principles, which he launched after he stepped down from his Congressional seat in 2005.
Abramoff was released to a Baltimore half-way house in December 2009. Another figure in the case, ex-Rep. John Doolittle, was cleared in June. Kevin Ring, a former staff for Doolittle, and then a lobbyist for Abramoff, was refused an injunction on his own corruption case by Federal Judge Ellen Huvelle last week; Ring’s attorneys sought to get his case thrown out after the Honest Services Fraud statute was weakened by the Supreme Court in June.
A timeline of charges against DeLay is here from National Journal. A POLITICO article on the DeLay case is here.
Politico is reporting that the government has ended a six-year investigation of former House Majority Leader Tom Delay’s (R-Texas)’s ties to the disgraced lobbyist Jack Abramoff .
Former Congressman Tom DeLay
The news was relayed by DeLay’s lead counsel in the matter, Richard Cullen, chairman of law firm McGuireWoods, who said he received a call from the Justice Department’s Public Integrity Section informing him of the decision and letting him know that it was approved for public knowledge.
The extraordinarily long (more than 6 years) and expensive probe marked the rise of a wave of lobbying scandals that helped Democrats regain the House majority in 2006. In 2005, a Texas court charged DeLay with criminal violations of state campaign finance laws and money laundering. He pled not guilty, citing political motivation for the charges.
Once one of Washington’s top power brokers, DeLay now spends most of his time at his home in Sugar Land, Texas, and recently starred in the reality show, ‘Dancing with the Stars.’ He is also founder and president of a strategic political consulting firm, First Principles, which he launched after he stepped down from his Congressional seat in 2005.
