" ! HOUSE OF REPRESENTATIVES 

111TH CONGRESS

1st Session 

REVIEW NO. 

09–6333 

OFFICE OF CONGRESSIONAL ETHICS 

UNITED STATES HOUSE OF 

REPRESENTATIVES 

————— 

Report and Findings 

Transmitted to the 

Committee on Standards of Official Conduct 

on June 8, 2009 

and released publicly pursuant to H. Res. 895 of the 

110th Congress as amended 

June 2009 


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House of Representatives Office of Congressional Ethics Review No. 09–6333 


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U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

54–333 

" ! HOUSE OF REPRESENTATIVES 

111TH CONGRESS

1st Session 

REVIEW NO. 

2009

09–6333 

OFFICE OF CONGRESSIONAL ETHICS 

UNITED STATES HOUSE OF 

REPRESENTATIVES 

————— 

Report and Findings 

Transmitted to the 

Committee on Standards of Official Conduct 

on June 8, 2009 

and released publicly pursuant to H. Res. 895 of the 

110th Congress as amended 

June 2009 


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(II) 

OFFICE OF 

CONGRESSIONAL ETHICS 

BOARD 

UNITED STATES HOUSE OF REPRESENTATIVES

ONE HUNDRED ELEVENTH CONGRESS

DAVID SKAGGS, Chair 

PORTER GOSS, Co-Chair 

YVONNE BURKE 

KAREN ENGLISH 

ALLISON HAYWARD 

JAY EAGEN 

WILLIAM FRENZEL 

ABNER MIKVA 

Leo J. Wise, Chief Counsel & Staff Director 

Omar Ashmawy, Investigative Counsel 

Elizabeth Horton, Investigative Counsel 


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REPORT 

Review No. 09–6333 

The Board of the Office of Congressional Ethics, by a vote of no 

less than four members, on May 29, 2009 adopted the following report and ordered it to be transmitted to the Committee on Standards of Official Conduct of the U.S. House of Representatives. 

SUBJECT: Representative Charles Rangel 

NATURE OF THE ALLEGED VIOLATION: There is substantial 

reason to believe that Congressman Charles Rangel’s participation 

in the 13th Annual Caribbean Multi-National Business Conference 

in St. Maarten, N.A. from November 7–9, 2008, his acceptance of 

reimbursement of expenses to attend that conference and the Member Post Travel Disclosure Form he filed violated various provisions of House Rule XXV Section 5(b). 

RECOMMENDATION: The Board of the Office of Congressional 

Ethics recommends that the Committee on Standards of Official 

Conduct further review the above described allegations concerning 

Congressman Rangel. 

VOTES IN THE AFFIRMATIVE: 6 

VOTES IN THE NEGATIVE: 0 

MEMBER OF THE BOARD OR STAFF DESIGNATED TO 

PRESENT THIS REPORT TO THE STANDARDS COMMITTEE: 

Leo Wise, Staff Director & Chief Counsel. 


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Table of Contents 

I. INTRODUCTON ............................................................................................ 5 

A. Summary of Allegations ................................................................... 5 

C. Jurisdictional Statement .................................................................. 7 

D. Procedural History ............................................................................ 7 

II. MULTIPLE ENTITIES, INCLUDING CARIB NEWS (THE NEWSPAPER), THE GOVERNMENT OF ST. MAARTEN AND SEVERAL 

CORPORATIONS, SPONSORED REPRESENTATIVE RANGEL’S 

TRIP ............................................................................................................ 8 

A. Representative Rangel’s Knowledge of The Involvement of These 

Corporations in the Conference ..................................................... 9 

B. CARIB NEWS also Sponsored Congressman Rangel’s Travel ...... 12 

C. Corporate Donations Were Earmarked for the Conference ........... 12 

D. Because Entities that Employ or Retain Lobbyists Sponsored 

the Event, Congressman Rangel’s Involvement Should Have 

Been Limited to One Day .............................................................. 17 

E. The Government of St. Maarten Made In-Kind Donations to 

the 2008 Conference and Played a Significant Role in Planning, Organizing and Conducting the 2008 Conference .............. 18 

III. ROLE OF THE CHAIR’S COUNSEL IN THE APPROVAL OF THE 

12TH ANNUAL CARIBBEAN MULTI-NATIONAL BUSINESS CONFERENCE IN 2007 .................................................................................... 20 

IV. THE VALUE OF THE TRIP REPORTED ON THE MEMBER’S POSTTRAVEL DISCLOSURE FORM ................................................................ 37 

A. Representations from Carib News Foundation .............................. 38 

B. Information Required from the Congressional Traveler ................ 39 

V. CARIB NEWS FOUNDATION, AS A PRIVATE FOUNDATION, WAS 

PROHIBITED FROM PAYING FOR CONGRESSMAN RANGEL’S 

TRAVEL ...................................................................................................... 40 


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FINDINGS OF FACT AND CITATIONS TO LAW 

REVIEW NO. 09–6333 

On May 29, 2009 the Board adopted the following findings of fact 

and accompanying citations to law, regulations, rules and standards of conduct (in italics). The Board notes that these findings do 

not constitute a determination that a violation actually occurred. 

I. INTRODUCTON 

1. Congressman Charles Rangel attended the 13th Annual Caribbean Multi-National Business Conference in St. Maarten, N.A., 

from November 6–9, 2008. Congressman Rangel received funds 

from a private source to participate in the conference. 

A. SUMMARY OF ALLEGATIONS

2. There is substantial reason to believe that Congressman Rangel violated the requirement that he identify the ‘‘true, correct and 

accurate’’ sponsor of his travel ‘‘to the best of his knowledge’’ on his 

Member Post Travel Disclosure Form. While forms submitted to his 

office and the Standards Committee before the conference identified one entity as the sponsor—the Carib News Foundation—once 

at the conference, Congressman Rangel was presented with indications that other corporations—including Citigroup, IBM, AT&T, 

Pfizer, Macy’s and Verizon Foundation—were also sponsors. Those 

indications proved to be true—the corporations were in fact sponsors of Congressman Rangel’s travel according to House travel 

rules because the corporations had donated funds specifically for 

the conference (i.e. earmarked funds). Further, events that occurred in 2007 affected the Standards Committee’s ability to determine whether these corporations were sponsors in 2008: 

a. In 2007, the House of Representatives changed the rules 

governing travel. Those changes placed limitations on the number of days Members of Congress could participate in events 

(such as conferences) when their travel was sponsored by an 

entity that employs or retains a lobbyist. These changes affected the annual Caribbean Multi-National Business Conference. In 2007, the Carib News Foundation continued to 

identify various corporations as sponsors on the conference 

agenda and on a draft version of the Private Sponsor Travel 

Certification Form prepared for submission to the Standards 

Committee for approval. However, after interacting with the 

counsel to the then-Chair of the Standards Committee, and apparently without the knowledge of the staff attorney reviewing 

the trip, the documents identifying these corporations as ‘‘sponsors’’ were changed and their sponsorship was not disclosed. 

b. The 2007 conduct and attendant misrepresentations appear to have directly influenced what occurred in 2008. When 


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the Carib News Foundation submitted materials to the Standards Committee for their approval of the 2008 conference, the 

Carib News Foundation took the same approach as they were 

instructed to take in 2007 and did not disclose the role of the 

corporate sponsors on the forms they submitted to the Standards Committee. 

3. There is substantial reason to believe that Congressman Rangel violated House Rule 25, clause 5(b)(1)(C) by accepting trip-related reimbursements from entities that employ or retain lobbyists 

for participating in an event for more than one day. 

4. There is substantial reason to believe that Congressman Rangel violated House Rule 25 clause 5(h)(i)(1)(B) by underreporting 

the value of the travel reimbursements he received to attend the 

13th Annual Caribbean Multi-National Business Conference. 

5. There is substantial reason to believe that the Carib News 

Foundation’s payment of travel expenses for Representative Rangel 

and his acceptance of payment violated the Internal Revenue Code. 

As stated above, Carib News Charities, the name previously held 

by the 501(c) organization now known as the Carib News Foundation, is listed as a private foundation in the Internal Revenue’s cumulative list of charitable organizations, Publication 78. Therefore, 

the Standards Committee should not have approved the trip because the funds came from a prohibited source. 

B. A NOTE ON CULPABILITY

6. These findings fall into three categories: (1) the sponsor or 

sponsors, as the case appears to be, of the conference; (2) the intervention of the counsel to the former Chair of the Standards Committee in the Standards Committee’s review process of the conference in 2007 and how it affected the information before the 

Standards Committee in 2008; (3) the accuracy of the value of the 

reimbursement submitted by Congressman Rangel and (4) whether, because of its tax status, the Carib News Foundation could lawfully pay for Congressman Rangel’s conference-related expenses. 

7. While all these topics are relevant, the Board notes that they 

do not all involve conduct by Congressman Rangel to the same degree. 

a. As to topic 1, determining the identity of the true sponsor 

or sponsors implicates the conduct of both Congressman Rangel and the Standards Committee. Congressman Rangel told 

the OCE he saw no evidence of corporate sponsorship at the 

conference. However, the evidence strongly suggests the Member’s statement is not credible. Once Congressman Rangel arrived at the conference, he was almost certainly confronted 

with information that other corporations were co-sponsors. As 

such, he had a responsibility to inform the Standards Committee as that information, at least in 2008, does not appear 

to have been before the Standards Committee when they initially approved the 2008 travel. 

b. As to topic 2, the intervention of the counsel to the former 

Chair of the Standards Committee in the Standards Committee’s review of the 2007 conference did not involve Congressman Rangel. Nonetheless, it directly bears on whether and to 


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1 House Resolution 895 of the 110th Congress, Section 1(e). 

2 A preliminary review is ‘‘requested’’ in writing by members of the Board of the OCE. The 

request for a preliminary review is ‘‘received’’ by the OCE on a date certain. According to H. 

Res. 895 of the 110th Congress (hereafter ‘‘the Resolution’’), the timeframe for conducting a preliminary review is 30 days from the date of receipt of the Board’s request. 3 According to the Resolution, the Board must vote on whether to conduct a second-phase review in a matter before the expiration of the 30-day preliminary review. If the Board votes for 

a second-phase, the second-phase begins when the preliminary review ends. The second-phase 

review does not begin on the date of the Board vote. 

what extent the Standards Committee could determine the 

true sponsor of the conference in 2008. 

c. As to topic 3, the accuracy of the information Congressman 

Rangel provided as to the value of the reimbursement of his 

conference-related expenses most directly implicates his conduct. The post-travel disclosure form that all Members must 

file when they accept privately sponsored travel is signed and 

certified by Members. The form puts the obligation on Members, not staff, not the Standards Committee and not sponsors, 

to certify that the information on the form is ‘‘true, accurate 

and complete’’ to the ‘‘best of the Member’s knowledge.’’ Congressman Rangel stated that while he certified the information 

on the post-travel disclosure form, he was unaware of the accuracy of the information he certified. 

d. As to topic 4, limitations on Carib News Foundation’s ability to pay for overseas travel of government officials, Congressman Rangel told the OCE he was unaware of any such limitations. The Board finds this statement to be credible. Nonetheless, the law prohibits such payments. Therefore, the Board 

feels compelled to include a discussion of this issue in this referral. 

C. JURISDICTIONAL STATEMENT

8. The allegations that are the subject of this review concern 

Representative Charles Rangel, a Member of the United States 

House of Representatives from the 15th District of New York. The 

Resolution the United States House of Representatives adopted creating the Office of Congressional Ethics directs that, ‘‘[n]o review 

shall be undertaken . . . by the board of any alleged violation that 

occurred before the date of adoption of this resolution.’’ 1 The House 

adopted this Resolution on March 11, 2008. Because the conduct 

under review occurred or relates to actions taken after March 11, 

2008, review by the Office of Congressional Ethics is in accordance 

with the Resolution. 

D. PROCEDURAL HISTORY

9. The OCE received a written request for a preliminary review 

in this matter signed by at least two members of the Board on 

March 6, 2009. The preliminary review commenced on this date.2

The preliminary review was scheduled to end on April 5, 2009. 

10. At least three members of the Board voted to initiate a second-phase review in this matter on March 27, 2009. The secondphase review commenced on April 6, 2009.3 The second-phase review was scheduled to end on May 21, 2009. 

11. The Board voted to extend the 45-day second-phase review by 

an additional 14 days, as provided for under the Resolution, on 


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4 House Rule 25(5)(h)(i)(1)(B) directs the Standards Committee to establish, ‘‘regulations describing the information it will require individuals subject to this clause to submit to the committee in order to obtain the prior approval of the committee for any travel covered by this 

clause . . .’’ On February 20, 2007, the Committee issued guidelines and regulations concerning 

the travel restrictions and requirements. 

April 24, 2009. Following the extension, the second-phase review 

was scheduled to end on June 5, 2009. 

12. The second-phase review ended on May 26, 2009. 

13. The Board voted to refer the matter to the Standards Committee for further review on May 29, 2009. 

14. The OCE requested documents from and interviews with representatives of: 

(1) Representative Sheila Jackson-Lee’s Congressional office; 

(2) the Verizon Foundation; 

(3) Citibank; 

(4) American Airlines; 

(5) IBM; 

(6) Macy’s, Inc; 

(7) Pfizer; 

(8) AT&T; 

(9) Representative Kilpatrick’s Congressional office; 

(10) Representative Payne’s Congressional office; 

(11) Representative Rangel’s Congressional office; 

(12) Representative Thompson’s Congressional office; 

(13) Delegate Christensen’s Congressional office; 

(14) The Carib News; and 

(15) The Carib News Foundation 

II. MULTIPLE ENTITIES, INCLUDING CARIB NEWS (THE NEWSPAPER), THE GOVERNMENT OF ST. MAARTEN AND SEVERAL CORPORATIONS, SPONSORED REPRESENTATIVE RANGEL’S TRIP

15. Under House Rule 25 clause 5(d), Members are required to obtain prior approval of the Standards Committee for trips where the 

Member’s travel expenses will be reimbursed by a private source. 

The Standards Committee has adopted regulations, pursuant to 

House Rule 25 clause 5(h)(i)(1)(B) 4 that requires Members to identify the ‘‘sponsor(s),’’ i.e. the party reimbursing travel expenses, for 

any trip where the payor is a private entity. 

16. There is substantial reason to believe that Congressman Rangel violated the requirement that he identify the ‘‘true, correct and 

accurate’’ sponsor of his travel ‘‘to the best of his knowledge’’ on his 

Member Post Travel Disclosure Form. While forms submitted to his 

and the Standards Committee before the conference identified one 

sponsor—the Carib News Foundation—once at the conference, Congressman Rangel was presented with evidence that other corporations were also sponsors. As will be discussed below, those indications proved to be true—these corporations were in fact sponsors 

of Congressman Rangel’s travel according to House travel rules because these corporations had donated funds specifically for the conference (i.e. earmarked funds). 


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5The ‘‘Member/Officer Post-Travel Disclosure Form’’ asks the filer at question 5, ‘‘Sponsor(s) 

(who paid for the trip).’’ This in turn raises two questions: (1) what is a trip and; (2) is a conference a ‘‘trip’’ or is a trip limited to the travel expenses associated with attending the trip, 

e.g., transportation, lodging and meal expenses? The House Ethics manual and the relevant 

forms use the terms ‘‘travel’’ and ‘‘trip’’ interchangeably. For example, the relevant form is called 

a Member/Officer Post-Travel Disclosure Form’’ (emphasis added). The introductory paragraph 

on the form provides, ‘‘[t]his form is for disclosing the receipt of travel expenses from a private 

source for meetings, speaking engagements, fact-finding trips or similar events in connection 

with official duties’’ (emphasis added). However, question 9 on the form asks the filer to detail, 

‘‘TRIP EXPENSES’’ and uses as an example, ‘‘registration fees.’’ Registration fees are not ‘‘travel’’ expenses unless one defines travel (or a trip) to include participating in a conference. The 

Board uses the term ‘‘trip’’ to include participating in the conference. The Board also notes that 

the Standards Committee treated the conference as the ‘‘trip’’ in its letter of October 23, 2008 

pre-approving Congressman Rangel’s trip. 6Member/Officer Post-Travel Disclosure Form signed by Representative Charles B. Rangel 

(Nov. 24, 2008) (Exhibit 1 at 09–6333 0002–0003). 7 Id. at 09–6333 0003. 

A. REPRESENTATIVE RANGEL’S KNOWLEDGE OF THE INVOLVEMENT OF

THESE CORPORATIONS IN THE CONFERENCE

17. On his Member Post-Travel Disclosure Form, Congressman 

Rangel listed Carib News Foundation as the only sponsor of the 

13th Annual Caribbean Multi-National Business Conference in St. 

Maarten, N.A. (hereafter ‘‘the trip’’ or ‘‘conference’’ 5) in November 

2008.6

18. Congressman Rangel certified that this information was 

‘‘true, correct and complete’’ to the ‘‘best of [his] knowledge.’’ 7


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8Memorandum of Interview of Representative Charles Rangel (May 28, 2009) (Exhibit 2 at 

09–6333 0020). 9Private Sponsor Travel Certification Form signed by Karl A. Rodney (Oct. 3, 2008) (Exhibit 

1 at 09–6333 0004). 10 Id. at 09–6333 0005. 11 Id. at 09–6333 0006. 

19. In an interview with the OCE, Congressman Rangel confirmed he signed this document.8

20. Prior to the conference, Karl Rodney, the CEO of the Carib 

News Foundation, submitted a Private Sponsor Travel Certification 

Form to Congressman Rangel, which he in turn submitted to the 

Standards Committee that identified the Carib News Foundation 

as the sponsor of the trip.9

21. Later on that same, form Mr. Rodney represented that ‘‘the 

trip sponsor(s) [had] not accepted from any other source funds earmarked directly or indirectly to finance any aspect of the trip.’’ 10

22. Rodney also certified that the information was ‘‘true, complete, and correct.’’ 11


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12Letter from the Committee on Standards of Official Conduct to Representative Charles B. 

Rangel (Oct. 23, 2008) (Exhibit 1 at 09–6333 0016–0017). 13Photographs taken at the 13th Annual Caribbean Multi-National Business Conference (Exhibit 5 at 09–6333 0058–0068) (The Board notes that the source of this information may have 

a bias, interest, or motive in this matter.). 14 Id. 15Memorandum of Interview of Representative Charles Rangel (May 28, 2009) (Exhibit 2 at 

09–6333 0021). 16Memorandum of Interview of Delegate Donna Christensen (May 4, 2009) (Exhibit 26 at 09– 

6333 0287). 

23. Also prior to the conference, the Standards Committee approved the reimbursement of Congressman Payne’s expenses by the 

Carib News Foundation.12

24. At the conference, several corporations, including Citibank, 

IBM, AT&T, and others, were identified as ‘‘sponsors.’’ 13

25. The signs for the conference displayed these corporations’ 

logos, including signs hung behind the speaker’s podium.14 Congressman Rangel arrived at the conference on Friday and left on 

Sunday. According to his interview with OCE, Congressman Rangel did not attend any of the sessions he did not participate in— 

with one exception. However, he did attend all the conference 

meals.15 In total, Congressman Rangel would have attended approximately 6 or 7 sessions and/or meals. According to Delegate 

Christensen, the signs containing the corporate logos were in every 

room used by the conference.16 It is therefore likely Congressman 

Rangel was exposed to the signs bearing the corporate logos. 


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17Memorandum of Interview of Representative Charles Rangel (May 28, 2009) (Exhibit 2 at 

09–6333 0021). 18Private Sponsor Travel Certification Form signed by Karl A. Rodney (Oct. 3, 2008) (Exhibit 

1 at 09–6333 0006). 19Letter from Joel Cohen, Counsel for Karl Rodney (May 18, 2009) (Exhibit 6 at 09–6333 

0069). 

26. Despite the likelihood that Representative Rangel was exposed to signs bearing corporate logos, in an interview with the 

OCE, Congressman Rangel stated that he did not see any such 

signs. He stated that he did not remember any corporations identified as sponsors. While admitting that his lack of memory on this 

matter was a problem, he nevertheless was unequivocal that he did 

not see indications that business had sponsored the conference.17

His statements on this point are not credible and conflict with the 

statements of other Members of Congress who attended, and the 

pictorial evidence collected by OCE. 

27. Despite his statement that he has no memory of them, these 

corporate entities, as described below, were in fact sponsors of the 

conference. 

B. CARIB NEWS ALSO SPONSORED CONGRESSMAN RANGEL’S TRAVEL

28. Karl Rodney is the publisher of the CARIB NEWS, a weekly 

newspaper published in New York. He also identified himself as 

the CEO of the Carib News Foundation on the Private Sponsor 

Travel Certification described above.18

29. According to Mr. Rodney, ‘‘general funds’’ of CARIB NEWS 

were ‘‘pooled’’ with payments from corporate sponsors, made both 

to CARIB NEWS and the Carib News Foundation and fees from 

attendees at the conference to pay conference expenses including 

‘‘travel’’ and ‘‘hotel payments.’’ 19

30. Therefore, CARIB NEWS was also effectively a sponsor of 

Congressman Rangel’s trip. 

C. CORPORATE DONATIONS WERE EARMARKED FOR THE CONFERENCE

31. According to the House Ethics Manual: 

The rule and implementing regulations are concerned with the 

organization(s) or individual(s) that actually pay for travel. 

Thus, for example, when a nonprofit organization pays for travVerDate Aug 31 2005 14:49 Mar 09, 2010 Jkt 054333 PO 00000 Frm 00012 Fmt 6601 Sfmt 6601 P:\54-333\REVIEW~1\54-333.TXT 54-333

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20Letter from Carib News Foundation to Mr. Eric Eve, Citigroup, Inc. (Apr. 4, 2008) (Exhibit 

7 at 09–6333 0073) (a nearly identical letter was sent to IBM, AT&T, Pfizer, Verizon Foundation 

and others). 

el with donations that were earmarked, either formally or informally, for the trip, each such donor is deemed a—private source 

for the trip and (1) must be publicly disclosed as a trip sponsor 

on the applicable travel forms and (2) must itself be required 

to satisfy the above standards on proper sources of travel expenses. 

32. In the course of conducting its review, the OCE has learned 

that the Carib News Foundation solicited earmarked funds for the 

conference. For example, Carib News Foundation sent a solicitation 

letter to Citigroup, Inc.20


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21 Id. at 09–6333 0075–0090. 22 Id. at 09–6333 0083–0086. 

33. Attached to this solicitation letter was a PowerPoint presentation.21 The presentation solicits money only for the conference 

and not for any other purpose, outlining the benefits of each level 

of sponsorship—Platinum, Gold, and Silver, along with lesser levels 

of sponsorship—in terms of the conference.22 In each instance, the 


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23Letter from IRS to OCE (April 17, 2009) (Exhibit 8 at 09–6333 0095). 24 Id. at 09–6333 0096–0107. 25Memorandum of Interview of Representative of IBM (May 8, 2009) (Exhibit 9 at 09–6333 

0111). 

sponsorship covers travel related expenses such as gala events and 

meals. 

34. The OCE also learned that at least four of the corporations 

identified at the conference did in fact, make payments to the 

Carib News Foundation and CARIB NEWS (the newspaper) earmarked for the conference. The Carib News Foundation itself appears to be nothing more than a conduit in this case, and a partial 

one at that, for payments from corporations to support the conference. There is no evidence that the organization has filed a tax 

return with the IRS, under either Carib News Foundation or Carib 

News Charities, since 2005.23 On its 2005 form 990–PF, the Carib 

News Foundation is shown as having no assets, no income and no 

expenses.24 Not a single witness from a sponsor interviewed by the 

OCE knew of any other work of the Foundation. Indeed one witness, from IBM, was not aware that the Foundation played a role 

in the conference.25


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26Documents submitted to the OCE by Citigroup (Exhibit 7 at 09–6333 0072). 27Mr. Rodney accepted corporate payments under the names of three entities: The Carib 

News, the Carib News Foundation, and the Carib News Charities. According to the Secretary 

of State for the State of New York, the organization that currently operates as the Carib News 

Foundation originally operated under the name the Carib News Charities. 28Documents Submitted to the OCE by Verizon Foundation (Exhibit 10 at 09–6333 0117). 29Memorandum of Interview of Representative 1 of Verizon Foundation (Mar. 23, 2009) (Exhibit 11 at 09–6333 0122). 30Documents submitted by IBM to the OCE (Exhibit 13 at 09–6333 0140). 

35. Citigroup. Citigroup made a $75,000 payment to the CARIB 

NEWS for the conference.26

36. Verizon Foundation. Verizon Foundation made a $35,000 

payment to the Carib News Charities 27 for the conference.28

37. Representative 1 of the Verizon Foundation said the Verizon 

Foundation funded the Carib News Foundation for the first time in 

2008 and that the grant was issued to provide funding for the 13th 

Annual Caribbean Multi-National Business Conference.29

38. IBM. IBM made a $20,000 payment to Carib News Foundation for the conference as indicated on the invoice that CARIB 

NEWS, INC. (not Carib News Foundation) sent IBM.30


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31Memorandum of Interview of Representative 1 of Macy’s (Exhibit 20 at 09–6333 0232). 32 Interview with Investigative Counsel on May 22, 2009. 33Documents submitted by American Airlines to the OCE (Exhibit 14 at 09–6333 0142) and 

OCE Investigative Counsel interview with American Airlines Representative (Mar. 5, 2009). 

(American Airlines provided an in-kind contribution in the form of ten roundtrip tickets to be 

used by Carib News in any manner they chose with the exception that no ticket could be used 

for an elected official or the official’s staff or family. The estimated value of their contribution 

was between $6,200 and $7,500). 

39. Macy’s. Macy’s made a $35,000 payment to CARIB NEWS 

for the conference.31

40. Pfizer. Pfizer made a $25,000 payment to CARIB NEWS for 

the conference.32

41. Only American Airlines explicitly limited their sponsorship of 

the conference to individuals who were not elected officials, prohibiting CARIB NEWS from using any part of their sponsorship on 

Members of Congress and other government officials and their 

staff.33 No other sponsor with whom we spoke placed restrictions 

on how or on whom their contribution could be spent. The only expectation was that the contribution would be used for expenses associated with the conference. 

D. BECAUSE ENTITIES THAT EMPLOY OR RETAIN LOBBYISTS SPONSORED THE EVENT, CONGRESSMAN RANGEL’S INVOLVEMENT SHOULD

HAVE BEEN LIMITED TO ONE DAY

42. According to the House Ethics Manual: 

One-Day Event Trip. The sole exception to the general prohibition on accepting officially-connected travel from a private 

source that retains or employs lobbyists or agents of a foreign 

principal is for trips involving attendance at or participation in 

one-day event (exclusive of travel time and an overnight stay). 

Under the rule, it is permissible for a Member or staff person 

to accept and meals related to a single night’s lodging and 

meals related to the trip, if offered by the trip sponsor. Members 

and staff must limit their involvement in connection with the 

event to a single calendar day, exclusive of travel time and 

an overnight stay. A Member or staff person may therefore atVerDate Aug 31 2005 14:49 Mar 09, 2010 Jkt 054333 PO 00000 Frm 00017 Fmt 6601 Sfmt 6601 P:\54-333\REVIEW~1\54-333.TXT 54-333

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34 House Ethics Manual at 92–93 (citing House Rule 25, clause 5(b)(1)(C)) (emphasis in original)). 35 Clerk of the House of Representatives Lobbying Disclosure Report 2008 (excerpt) (Exhibit 

15 09–6333 0148–0153). 36Member/Officer Post-Travel Disclosure Form signed by Representative Charles B. Rangel 

(Nov. 24, 2008) (Exhibit 1 at 09–6333 0002–0003). 37 In 2007, the ‘‘host’’ of the conference was the Government of Antigua and Barbuda. In the 

event that the Government of Antigua and Barbuda provided the same support as St. Maarten 

did in 2008, then the members may have accepted gifts from a foreign government which would 

have been reportable under the Foreign Gift and Decorations Act. In addition, if the Government of Antigua provided these gifts to the Members, and if they were more than $335 in value, 

then the Members should have disclosed them on their financial disclosure form for 2007, which 

was filed in May 2008. 38Letter from Karl Rodney to Commissioner Sarah Wescott-Williams (Aug. 13, 2008) (Exhibit 

16 at 09–6333 0155). 

tend only a single day of a multiple-day conference, forum, or 

other event that is being hosted primarily for individuals other 

than congressional invitees. 

Under the Committee’s travel regulations and guidelines implementing the travel provisions of the gift rule, the Committee 

may permit a second night’s stay when determined—on a 

case-by-case basis to be practically required to participate in the 

one-day event (House Rule 25, clause 5(b)(1)(C)). Some circumstances in which the Committee may permit a second 

night’s stay are for certain long-distance trips, when a Member 

or staff person is participating in a full day’s worth of officiallyconnected activities such that a second night’s stay is necessary 

to accomplish the purpose of the trip, or other exceptional circumstances that are described in detail by the traveler. The 

traveler will be personally responsible for any expenses incurred 

beyond those allowed by the Committee in connection with the 

second night’s stay.34

43. Citigroup, IBM and Verizon employ or retain lobbyists.35

44. Congressman Rangel spent four days at the conference at the 

expense of the third-party.36

45. There is substantial reason to believe that Congressman Rangel violated House Rule 25, clause 5(b)(1)(C) by accepting trip-related reimbursements from entities that employ or retain lobbyists 

for participating in an event for more than one day. 

E. THE GOVERNMENT OF ST. MAARTEN MADE IN-KIND DONATIONS TO

THE 2008 CONFERENCE AND PLAYED A SIGNIFICANT ROLE IN PLANNING, ORGANIZING AND CONDUCTING THE 2008 CONFERENCE

46. The Government of St. Maarten was the host of the 2008 conference. 

47. In that capacity, the Government of St. Maarten provided inkind donations to support the conference and also had a substantial role in planning the conference. As a result, it was effectively 

a sponsor of the 2008 conference.37

48. Rodney provided the Leader of Government of St. Maarten, 

Commissioner Sarah Wescott-Williams, with a list of ‘‘Basic Requirements to Host Caribbean Multi-National Business Conference.’’ 38 These included: 


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39Letter from Joel Cohen, Counsel for Karl Rodney (May 18, 2009) (Exhibit 6 at 09–6333 

0068–0069). 40 Id. 41 5 U.S.C. § 7342. 

49. According to a statement from Mr. Rodney submitted to the 

OCE, the Government of St. Maarten, (1) developed local Host 

Committees to facilitate local planning; (2) helped negotiate the 

rate with the hotel, (3) assisted in developing the theme of the Conference, (4) assisted in identifying local speakers, including the 

Leader of Government, (5) assisted in local publicity, (6) provided 

local entertainment, including a school choir and cultural items, (7) 

arranged Host Country Evening on Friday, November 8 (the whole 

group was transported to another property for refreshments and 

entertainment), (8) helped with local transportation for some 

CARIB NEWS employees and helped arrange accommodations for 

some guests (not paying for such accommodations), (9) participated 

as event speakers, and (10) issued invitations to attend to specially 

invited guests.39 These contributions to the conference were all inkind, according to Mr. Rodney, and he did not provide an estimated 

value for them.40

50. In addition, because these donations to the conference are 

from a foreign government, Members are required to take certain 

actions under the Foreign Gifts and Decorations Act.41


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42Memorandum of Interview of Representative Charles Rangel (May 28, 2009) (Exhibit 2 at 

09–6333 0021). 43 Id. at 09–6333 0022. 44 Id. at 09–6333 0021. 45 House Ethics Manual (2008) at 92–93 (citing House Rule 25, clause 5(b)(1)(C)). 

51. Representative Rangel told the OCE that he was unaware of 

what role the Government of St. Maarten played in the conference. 

He only knew that they provided protection for him—to include the 

use of a car and a police escort while he attended the conference.42

III. ROLE OF THE CHAIR’S COUNSEL IN THE APPROVAL OF THE 12TH

ANNUAL CARIBBEAN MULTI-NATIONAL BUSINESS CONFERENCE IN

2007 

52. Congressman Rangel told the OCE that he relied on the 

Standards Committee to determine if he could attend the conference.43 He also stated that he believed the Carib News Foundation was the conference and that the foundation put the program 

together and invited him to attend.44 In the course of the Board’s 

review, the OCE requested documents from Mr. Karl Rodney, the 

CEO of the Carib News Foundation. Mr Rodney voluntarily submitted documents to the OCE that included, among other things, 

communication with certain members of the staff of the Committee 

on Standards of Official Conduct in 2007. The contents of these 

documents from 2007 are relevant because they indicate the role of 

the corporations was concealed from the Committee in 2008. 

53. The Board requested that the Committee provide the information submitted to it for 2008 and the Committee declined to do 

so. 

54. The documents submitted by Mr. Rodney show that in 2007 

the CARIB NEWS initially identified, on several occasions, other 

corporations as sponsors of the Conference. The designation of 

these corporate entities as sponsors presented a problem for CARIB 

NEWS and the Members who wished to attend the conference insofar as their attendance would be limited to one day. In 2007, as a 

result of changes in the travel rules, a Member could not, in most 

instances, participate in an event (such as a conference) for more 

than one day if their travel to and participation in the event was 

paid for by an entity that employed or retained a lobbyist.45 Many 

of the corporate entities who sponsored the 2007, as well as the 

2008 conference, employed or retained lobbyists. Although CARIB 

NEWS initially identified these entities as sponsors, following 

interactions with the counsel to the then-chair of the Committee, 

apparently without the knowledge of the Standards Committee 

staff attorney assigned to review the trip, the documents identifying these organizations as sponsors were changed. 

55. Subsequently, in 2008, the Carib News Foundation submitted 

documents that omitted the role of these other corporations as 

sponsors of the conference. Further, the staff attorney assigned to 

review the trip in 2008 was not the same staff attorney that reviewed the trip in 2007. 

56. The earliest communication between CARIB NEWS or the 

Carib News Foundation and anyone associated with the Ethics 

Committee in the documents submitted to the OCE from Mr. Rodney is an e-mail dated September 17, 2007 from Patricia Louis, an 


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46 E-mail from Patricia Louis to Dawn Kelly Mobley (Sept. 17, 2007, 3:47 PM EST) (Exhibit 

17 at 09–6333 0204) (The Board elected not the interview Ms. Mobley and Ms. Olson because 

the Standards Committee voted against disclosing information to the OCE. The Board determined that it would have been an act of bad faith on the part of the OCE to attempt to interview staff and former staff of the Standards Committee in light of the Committee’s refusal to 

grant OCE access to their records.). 47 E-mail from Dawn Kelly Mobley to Patricia Louis (Sept. 18, 2007, 12:57 PM EST) (Exhibit 

17 at 09–6333 0204). 48 E-mail from Patricia Louis to Dawn Kelly Mobley (Sept. 18, 2007) (Exhibit 17 at 09–6333 

0204) (The Board notes that while the document that contains the e-mail does not have a header 

which indicates a date and time, both the e-mail before it and responding to it are dated September 18, 2007). 49 E-mail from Dawn Kelly Mobley to Patricia Louis (Sept. 18, 2007, 7:03 PM EST) (Exhibit 

17 at 09–6333 0203). 50 E-mail from Dawn Kelly Mobley to Patricia Louis (Sept. 19, 2007, 2:16 PM EST) (Exhibit 

17 at 09–6333 0203). 51 House Ethics Manual (2008) at 97–98. 

Executive Assistant at CARIB NEWS, to Dawn Kelly Mobley, 

Counsel to the then-Chair of the Ethics Committee.46

57. The next day, on September 18, 2007, Ms. Mobley responded 

and asked for ‘‘any information on your sponsor’s status.’’ 47

58. That same day Ms. Louis responded, indentifying multiple 

corporations as ‘‘sponsors’’ of the trip.48

59. In response that same day, Ms. Mobley asked, ‘‘[d]o any of 

these organizations have or retain a lobbyist’’ 49

60. The next day, Ms. Mobley further responded asking Ms. 

Louis whether she, Ms. Mobley, should ‘‘assume’’ the sponsor was 

CARIB NEWS, despite the fact that Ms. Louis had not identified 

CARIB NEWS as a sponsor.50 The Board notes that in her e-mail, 

Ms. Louis did not identify CARIB NEWS as a sponsor. Further, 

Ms. Mobley acknowledged that she had been told corporations identified by Ms. Louis were ‘‘sponsoring food and other parts of the 

Antigua travel.’’ Under House rules in place at the time, and under 

current rules, sponsoring a meal makes these corporations sponsors 

of a Member’s travel.51 The Board also notes Ms. Mobley’s use of 

the phrase ‘‘safe review,’’ which the Board takes to mean a review 

which results in approval of the trip. 


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52 E-mail from Dawn Kelly Mobley to Patricia Louis (Sept. 19, 2007, 3:23 PM EST) (Exhibit 

17 at 09–6333 0203). 53 E-mail from Patricia Louis to Dawn Kelly Mobley (Sept. 21, 2007, 1:56 PM EST) (Exhibit 

17 at 09–6333 0201). 

61. Later in the afternoon on September 19, 2007, Ms. Mobley 

sent Ms. Louis another e-mail where she discussed the limitations 

posed by the new travel rules the House had adopted in 2007. Ms. 

Mobley told Ms. Louis, ‘‘the new rules might prohibit some things 

you were able to do with so many different sponsors in the past.’’ 

Thus, Ms. Mobley again acknowledged that these corporations were 

sponsors and that the new travel rules affected the nature of their 

participation in the trip.52

62. On September 21, 2007, Ms. Louis responded.53


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54Private Sponsor Travel Certification Form (Sept. 21, 2007) (Exhibit 17 at 09–6333 0191). 55 Id. 

63. That same day, on September 21, 2007, Ms. Louis faxed Ms. 

Mobley a Private Sponsor Travel Certification Form. On the form 

Carib News Foundation is listed as the sponsor of the trip in question 1.54

64. However, the Carib News Foundation listed a number of corporations as private sponsors, each with responsibility for planning 

and conducting the trip, in question 12.55 This is at least the second instance where the Carib News Foundation identified these 

corporations as the trip’s sponsors. 


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56 E-mail from Dawn Kelly Mobley to Patricia Louis (Sept. 25, 2007, 12:42 PM EST) (Exhibit 

17 at 09–6333 0188). 57 E-mail from Dawn Kelly Mobley to Patricia Louis (Sept. 25, 2007, 5:08 PM EST) (Exhibit 

17 at 09–6333 0188). 58 E-mail from Dawn Kelly Mobley to Patricia Louis (Oct. 3, 2007, 12:39 PM EST) (Exhibit 

17 at 09–6333 0185). 59Private Sponsor Travel Certification Form (Sept. 21, 2007) (Exhibit 17 at 09–6333 0192). 60Private Sponsor Travel Certification Form (Oct. 5, 2007) (Exhibit 18 at 09–6333 0207). 61 Id. at 09–6333 0211 

65. This prompted the following e-mail from Ms. Mobley to Ms. 

Louis.56 The Board notes that Ms. Mobley stated she was ‘‘working 

through’’ the Carib News Foundation’s forms ‘‘before leaving them 

with our staff attorney.’’ 

66. Later that same day, Ms. Mobley queried further.57 At least 

as of this date, following at least two instances where Ms. Louis 

identified these corporations as sponsors, Ms. Mobley appeared to 

treat these entities as ‘‘co-sponsors.’’ 

67. On October 3, 2007, Ms. Mobley informed Ms. Louis that 

Susan Olson was the staff attorney assigned to review the trip.58

68. A copy of the Private Sponsor Travel Certification Form provided to a Member’s office on October 5, 2007, shows that by October 5, 2007, following its interaction with Ms. Mobley, Carib News 

Foundation changed its answer to question 12 regarding other private sponsors. As previously highlighted, as of September 21, 2007, 

Carib News Foundation provided the following answer to question 

12.59

69. However, as of October 5, 2007, it provided a different answer to question 12.60

And the attached sheet provided the following information.61


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62 E-mail from Susan Olson to Patricia Louis (Oct. 10, 2007, 4:01 PM EST) (Exhibit 17 at 09– 

6333 0174). 

On October 10, 2007, Susan Olson, the staff attorney on the Standards Committee assigned to review the trip e-mailed Ms. Louis the 

following questions 62 (and copied Ms. Mobley and the Chief Counsel of the Standards Committee at that time, Bill O’Reilly). While 

the Private Sponsor Travel Certification Form for the trip had been 

changed by this date, the draft agenda for the conference apparently had not and still showed corporate sponsors for various 

events. What Ms. Olson does not appear to be aware of is the fact 

that Carib News Foundation had previously identified the same 

corporations she is raising questions about as private sponsors on 

its original Private Sponsor Travel Certification form. 


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63 Committee on Standards of Official Conduct, Advisory Opinion (Oct. 27, 2006) (Exhibit 17 

at 09–6333 0197–0199). 64Working Draft of the 13th Annual Caribbean Multi-National Business Conference Program 

(Oct. 3, 2007) (Exhibit 19 at 09–6333 0213–0229). 65 Id. at 09–6333 0219 66 Id. at 09–6333 0225 

70. The Committee’s Advisory Opinion dated October 27, 2006 indicates, as Ms. Olson wrote, that Carib News Foundation told the 

Standards Committee in 2006 that there were several corporate entities that sponsored the conference.63 The ‘‘Advisory Opinion’’ did 

not conclude that these entities were, in fact, the trip’s sponsors, 

as the e-mail seems to indicate. 

71. A draft agenda for the conference dated October 3, 2007, 

identified a ‘‘sponsor’’ for each event listed.64 This appears to be the 

version of the agenda that Olson is referring to in her e-mail. For 

example, ‘‘Preferred Health Partners’’ is identified as the sponsor 

of this event on ‘‘Port & Airport Security—The Mandates.’’ 65

And Citi is identified as the sponsor of this event on ‘‘Community 

Outreach—Education—Access and Collaboration.’’ 66


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67 E-mail from Patricia Louis to Dawn Kelly Mobley, George Dalley, and Shelley Thomas (Oct. 

10, 2007, 5:56 PM EST) (Exhibit 17 at 09–6333 0177). 

72. Ms. Louis forwarded Ms. Olson’s e-mail to Ms. Mobley, Congressman Charles Rangel’s Chief of Staff George Dalley and Delegate Donna Christensen’s scheduler Shelley Thomas, and asked 

them to advise her on a response.67

Ms. Louis appears to be pre-clearing her response to questions 

posed by the Standards Committee staff attorney. There is no indication that the staff attorney knew that the answer to her question 

had already been discussed with the counsel to the then-chair of 

the Standards Committee. Substantively, based on documents obtained by the OCE and interviews with sponsors, the statement 

‘‘the sponsors contribute to the overall expense of the trip’’ appears 


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68Memorandum of Interview of Representative of IBM (May 8, 2009) (Exhibit 9); Memorandum of Interview of Representative 1 of the Verizon Foundation (Mar. 23, 2009) (Exhibit 11); 

Memorandum of Interview of Representative of Citi (Mar. 17, 2009) (Exhibit 4); Memorandum 

of Interview of Representative 1 of Macy’s (May 28, 2009) (Exhibit 20). 69 E-mail from Dawn Kelly Mobley to Patricia Louis (Oct. 10, 2007, 6:49 PM EST) (Exhibit 

17 at 09–6333 0179). 70Fax from Patricia Louis to Dawn Kelly Mobley (Oct. 11, 2007) (Exhibit 17 at 09–6333 0176). 

to be true. However, the statement ‘‘and the general work of the 

Foundation,’’ does not appear to be true. All of the sponsors OCE 

interviewed stated unequivocally that the contribution was intended for the conference.68

73. Less than an hour later Ms. Mobley responded.69 The Board 

notes Ms. Mobley’s concern with whether any of the corporate 

sponsors paid for an event and also retained a lobbyist’’ and her 

conclusion that if they did, Members of Congress could only attend 

for one day. 

74. Ms. Louis then faxed Ms. Mobley.70 The Board notes that Ms. 

Louis again appears to be pre-clearing her responses to the staff attorney, Ms. Olson, with Ms. Mobley (‘‘Kindly review and advise before I send to Ms. Olson.’’). 


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71Working Draft of the 13th Annual Caribbean Multi-National Business Conference Program 

(Oct. 22, 2007) (Exhibit 21 at 09–6333 0235–0246). 

75. The Board further notes that Ms. Louis represented that, 

‘‘the program has been amended to reflect the companies as Participants,’’ an action taken following Ms. Louis’ interactions with Ms. 

Mobley. A copy of the revised agenda was submitted by another 

Member of Congress who attended the conference.71 The Board 

notes that this ‘‘updated’’ schedule changed the label applied to 

‘‘sponsors’’ to ‘‘participants’’ and in some cases deleted any mention 

of the corporate entity that had previously been identified as a 

‘‘sponsor.’’ 


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72Working Draft of the 13th Annual Caribbean Multi-National Business Conference Program 

(Oct. 3, 2007) (Exhibit 19 at 09–6333 0219). 73Working Draft of the 13th Annual Caribbean Multi-National Business Conference Program 

(Oct. 22, 2007) (Exhibit 21at 09–6333 0239). 74Working Draft of the 13th Annual Caribbean Multi-National Business Conference Program 

(Oct. 3, 2007) (Exhibit 19 at 09–6333 0225). 75Working Draft of the 13th Annual Caribbean Multi-National Business Conference Program 

(Oct. 22, 2007) (Exhibit 21 at 09–6333 0245). 76Memorandum of Interview of Representative of Citi (Mar. 17, 2009) (Exhibit 4 at 09–6333 

0053). 

76. This event was previously identified in the earlier draft as 

being ‘‘sponsored’’ by Preferred Health Partners.72 Now it identifies 

them as merely a ‘‘participant.’’ 73

77. In another example, the Board notes that the following event 

was previously identified as being sponsored by CITI.74 Now CITI 

is not even mentioned.75 Michael Flanigan, the moderator, was an 

executive at CITI at the time and represented the company at the 

conference.76


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77 E-mail from Patricia Louis to Susan Olson (Oct. 10, 2007, 10:33 AM EST) (Exhibit 17 at 

09–6333 0173). 78 E-mail from Susan Olson to Bill O’Reilly and Dawn Kelly Mobley (Oct. 12, 2007 9:29 AM) 

(Exhibit 17 at 09–6333 0172). 

78. These changes were entirely cosmetic. There is no indication 

that the corporations’ substantive role in the conference changed in 

any way. 

79. That same day, October 11, 2007, Ms. Louis responded to Ms. 

Olson, stating that ‘‘[t]he sponsors contribute to the overall expense 

of the trip.’’ 77 The Board notes that this is precisely the answer she 

had pre-cleared with Mobley. 

80. Ms. Olson then forwarded her exchange with Ms. Louis to 

Bill O’Reilly, the Staff Director and Chief Counsel of the Ethics 

Committee at that time, and to Dawn Mobley.78 Based on this email, it appears that Ms. Olson was unaware that Mobley had been 


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79Memorandum of Interview of Representative of IBM (May 8, 2009) (Exhibit 9); Memorandum of Interview of Representative 1 of the Verizon Foundation (Mar. 23, 2009) (Exhibit 11); 

Memorandum of Interview of Representative of Citi (Mar. 17, 2009) (Exhibit 4); Memorandum 

of Interview of Representative 1 of Macy’s (May 28, 2009) (Exhibit 20). 80 E-mail from Dawn Kelly Mobley to Patricia Louis (Oct. 12, 2007 9:59 AM EST) (Exhibit 

17 at 09–6333 0172). 81 E-mail from Dawn Kelly Mobley to Patricia Louis (Oct. 12, 2007 1:55 PM EST) (Exhibit 17 

at 09–6333 0172). 

communicating directly with the Carib News Foundation. There is 

also no evidence that Ms. Mobley told her she had been involved 

in this manner. Witnesses for the various sponsors told the OCE 

that they did contribute funding directly to the trip (the conference) 

and in no case did they simply make donations to the ‘‘general 

funds’’ of the CARIB NEWS or the Carib News Foundation.79

81. Ms. Mobley then forwarded Ms. Olson’s internal e-mail to Ms. 

Louis.80 The Board notes that Ms. Mobley counseled that these 

‘‘other organizations’’ can ‘‘participate’’ in the program but ‘‘should 

not help pay for the trip.’’ 

82. Later that day, Ms. Mobley sent Ms. Louis an additional email.81 As previously stated, the sponsors whom the OCE interviewed all stated that they did not ‘‘support [the] foundation annually’’ and did specifically designate their donations for the 2007 

conference. Either Ms. Mobley was repeating inaccurate information Ms. Louis had given her, or she was giving inaccurate information to Ms. Olson without prompting. 


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82 E-mail from Susan Olson to Patricia Louis (Oct. 12, 2007 2:41 PM EST) (Exhibit 17 at 09– 

6333 0167–0168). 83 E-mail from Patricia Louis to Dawn Kelly Mobley (Oct. 15, 2007 11:00 AM EST) (Exhibit 

17 at 09–6333 0167). 

83. Ms. Olson then sent Ms. Louis additional questions about the 

corporate entities previously identified as ‘‘sponsors.’’ 82

84. Three days later, Ms. Louis sent an e-mail to Ms. Mobley, but 

addressed to Ms. Olson.83 This may have been inadvertent or, 

based on their previous practice, Ms. Louis may have done this before she then sent it to Ms. Olson. This is the final communication 

regarding the 2007 conference provided to the OCE. 


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84Memorandum of Interview of Staff Member 1 of Congressman Rangel’s Office (May 27–28, 

2009) (Exhibit 22 at 09–6333 0249). 85 Id. at 09–6333 0250. 86 Id. at 0250. 87 Id. at 0249. 88 Id. 

85. In an interview with the OCE, a staff member of Representative Rangel’s office described discussions with Ms. Louis and Ms. 

Mobley in 2007 on the topic of how the new travel rules would affect the Members’ participation in the 2007 conference.84 The staff 

member said that Ms. Louis, and Mr. and Mrs. Rodney told him 

that the then Chair of the Standards Committee had assigned her 

counsel on the Committee, Ms. Mobley, to ‘‘find a way’’ to allow 

Members of Congress to participate in the conference under the 

new travel rules passed by the House in 2007.85 The staff member 

told the OCE that Congressman Rangel told him that the thenChair had made similar statements to him.86

86. The staff member said the ‘‘framework’’ that was decided 

upon was that the Carib News Foundation would raise money from 

corporate donors who had previously sponsored the conference and 

that this money in turn would be deposited in a ‘‘common fund’’ 

that would then be used to pay for the conference.87 It was the 

staff member’s understanding that if this was done, then Members 

of Congress could participate in the conference without any restrictions imposed by the new rules. The staff member said that it was 

important to break the link between the corporations and the conference under the new rules and that using the Foundation in this 

way would enable that to happen. The staff member said he 

learned of this new framework for the conference from Mr. and 

Mrs. Rodney and that they represented this approach had come 

from Ms. Mobley on the Standards Committee.88

87. This conduct in 2007 is relevant to the present reviews for 

a number of reasons. First, in and of itself, the intervention of the 

Chair’s counsel in this matter is troubling and more likely conVerDate Aug 31 2005 14:49 Mar 09, 2010 Jkt 054333 PO 00000 Frm 00035 Fmt 6601 Sfmt 6601 P:\54-333\REVIEW~1\54-333.TXT 54-333

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89Fax from Patricia Louis to Dawn Kelly Mobley (Aug. 20, 2008) (Exhibit 23 at 09–6333 

0255). 

stituted an improper manipulation of the clearance process. Following Ms. Mobley’s intervention, Carib News Foundation changed 

the Private Sponsor Travel Certification Form to delete any mention of private sponsors before it was sent to the Standards Committee’s staff attorney assigned to review the matter. This occurred 

after Carib News Foundation had told Ms. Mobley that these corporations were sponsors of the conference on several occasions. Ms. 

Louis’s initial, and presumably truthful, submissions regarding the 

conference described the corporate entities as sponsors. However, if 

the corporations were sponsors of the conference, as opposed to 

Carib News Foundation, then the Members of Congress ability to 

attend would have been limited because, the corporations, unlike 

the Carib News Foundation, employed or retained lobbyists. It appears from the correspondence between Ms. Mobley and Ms. Louis, 

and Ms. Olson’s apparent ignorance of the correspondence, that Ms. 

Mobley assisted Ms. Louis in preparing inaccurate answers for Ms. 

Olson in order to ensure that Ms. Olson would approve the trip in 

a manner that would not limit the attendance of the Members of 

Congress. Ms. Mobley’s involvement in the process seems to have 

prevented the Standards Committee and its staff from correctly 

performing its responsibilities. Ms. Olson’s approval of the trip was 

predicated on an incomplete or inaccurate factual record, in which 

Ms. Mobley apparently was complicit, putting at risk those Members of Congress who relied on that approval. 

88. The 2007 conduct and attendant misrepresentations appear 

to have directly influenced what occurred in 2008. When the Carib 

News Foundation submitted materials to the Standards Committee 

for their approval of the 2008 conference, the Carib News Foundation took the same approach that they had been counseled to take 

in 2007 and did not disclose the role of the corporate sponsors on 

the Private Sponsor Travel Certification Form or the conference 

agenda. 

89. In fact, in 2008, Carib News Foundation again first submitted its document to Ms. Mobley.89 The Board notes that while 

Ms. Mobley remains an employee of the U.S. House of Representatives as of the date of this report, the above described conduct did 

not occur after the day the House passed the resolution creating 

the OCE, and therefore, under the terms of the that resolution, the 

OCE does not have jurisdiction to open a preliminary review into 

Ms. Mobley’s conduct. 


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90 House Rule 25(5)(h)(i)(1)(B) directs the Standards Committee to establish, ‘‘regulations describing the information it will require individuals subject to this clause to submit to the committee in order to obtain the prior approval of the committee for any travel covered by this 

clause . . .’’ On February 20, 2007, the Committee issued guidelines and regulations concerning 

the travel restrictions and requirements. 

IV. THE VALUE OF THE TRIP REPORTED ON THE MEMBER’S POSTTRAVEL DISCLOSURE FORM

90. Under House Rule 25 clause 5(d), Members are required to obtain prior approval of the Standards Committee for trips where the 

Member’s travel expenses will be reimbursed by a private source. 

The Standards Committee has adopted regulations, including a preand post-travel form Members must complete, pursuant to House 

Rule 25 clause 5(h)(i)(1)(B) 90 that requires Members to publicly disclose ‘‘trip expenses.’’ 

91. According to the House Ethics Manual, ‘‘[t]he rule and implementing regulations are concerned with the organization(s) or individual(s) that actually pay for travel.’’ House Ethics Manual (2008) 

at 97. 

92. There is substantial reason to believe that Congressman Rangel violated House Rule 25 clause 5(h)(i)(1)(B) by underreporting 

the value of the travel reimbursements he received to attend the 

13th Annual Caribbean Multi-National Business Conference. 


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91Private Sponsor Travel Certification Form signed by Karl Rodney (Oct. 3, 2008) (Exhibit 

1 at 09–6333 0004–0013). 

A. REPRESENTATIONS FROM CARIB NEWS FOUNDATION

93. Carib News Foundation submitted a Private Sponsor Travel 

Certification Form to each Member it sponsored for the 2008 trip— 

Representatives Christensen, Kilpatrick, Payne, Rangel and 

Thompson.91 This form was provided to each Member Office and 

then submitted by the Member Office to the Standards Committee 

as part of the pre-travel approval process. 

94. The Board notes that the Carib News Foundation provided 

the same exact dollar figure with very minor variations for each 

Member of Congress that attended the conference despite the fact 

that Carib News Foundation recognized on the same form that the 

Congressional travelers were travelling to and from different cities. 

In fact, the Congressional travelers came from St. Croix, U.S. Virgin Islands; Detroit, Michigan; Newark, New Jersey; New York, 

New York; and Jackson, Mississippi. 

95. The Board notes that the Carib News Foundation provided 

the same ‘‘total transportation’’ figure to the Congressional travelers despite the fact that Carib News Foundation had, in its own 

files, airline tickets and receipts for each Congressional traveler 

that showed, with the exception of Congressman Payne, that the 

actual cost of the ticket was significantly higher. 

96. In addition, according to Mr. Rodney, the cost charged to ‘‘the 

public’’ to attend the conference for four days and three nights was 

$840 for double occupancy or $1085 for single occupancy. The cost 

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92Member/Officer Post-Travel Disclosure Form signed by Representative Charles B. Rangel 

(Nov. 24, 2008) (Exhibit 1 at 09–6333 0003). 93Private Sponsor Travel Certification Form signed by Karl Rodney (Oct. 3, 2008) (Exhibit 

1 at 09–6333 0006). 94Memorandum of Interview of Representative Charles Rangel (May 28, 2009) (Exhibit 2 at 

09–6333 0020). 

pre-travel to the Members or the Standards Committee, nor were 

these figures disclosed to the Members after the conference. 

B. INFORMATION REQUIRED FROM THE CONGRESSIONAL TRAVELER

97. On his Member/Officer Post-Travel Disclosure Form,92 Representative Rangel certified his travel cost as the following: 

98. Unlike the other Members of Congress who attended the conference, who apparently used the November 18, 2008 memo to complete the post-travel disclosure, it appears that the figures that 

Congressman Rangel certified are identical to the estimates Mr. 

Rodney provided in the Private Sponsor Travel Certification Form 

submitted for pre-travel approval provide to Congressman Rangel 

from Mr. Rodney on November 18, 2008.93

99. Congressman Rangel stated he never saw a plane ticket or 

anything bearing the cost of his flight. The airline would have 

given him something with which to locate his seat, but that was 

the extent of what he may have seen.94


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95Flight Reservation for Representative Charles Rangel (Oct. 27, 2008) (Exhibit 24 at 09–6333 

0279). 96Memorandum of Interview of Representative Charles Rangel (May 28, 2009) (Exhibit 2 at 

09–6333 0020. 97Memorandum of Interview of Representative Charles Rangel (May 28, 2009) (Exhibit 2 at 

09–6333 0020). 

100. Documents obtained from Mr. Rodney indicate Congressman 

Rangel’s transportation costs were actually $752.15.95

101. In his interview with OCE, Congressman Rangel stated that 

he did not see any documented dollar amounts for airline ticket, 

the registration fee or for the cost of meals. He stated that, although he signed the certification, he had no idea if the numbers 

on the forms were accurate. His Chief of Staff filled out all the paperwork.96 Representative Rangel did not know how much his 

meals cost or what ‘‘transportation’’ referred to other than his 

flight.97 In an interview with the OCE, a staff member of Representative Rangel’s office stated that while he did not remember 

whether the itinerary, above, was given to the Member, it was the 

kind of document that was typically placed in his briefing book so 

that he could travel. The staff member also pointed out that the 

receipt for the electronic ticket, also above, was a document that 


steuser on CDPSPC2PFRM with REPORTS54333.045
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98Memorandum of Interview of Staff Member 1 of Congressman’s Rangel’s Office (May 27– 

28) (Exhibit 22 at 09–6333 0253). 99Member/Officer Post-Travel Disclosure Form signed by Representative Charles B. Rangel 

(Nov. 24, 2008) (Exhibit 1 at 09–6333 0002). 100Letter from IRS to OCE (Apr. 17, 2009) (Exhibit 8 at 09–6333 0095). 101 26 U.S.C. §§ 501 and 509. 102 26 U.S.C. §§ 4941 and 4946. 103 26 U.S.C. § 4941(d)(1)(F). The Code imposes a tax (currently 10 percent of the amount involved) on the illegal payments, with later penalties (up to $20,000 per act of self-dealing) for 

failure to pay back the foundation. The tax is imposed on the disqualified person, including a 

government official if the official participates in the act of self-dealing knowingly. 

only would be printed after the Member checked in at the airport 

for his flight.98

V. CARIB NEWS FOUNDATION, AS A PRIVATE FOUNDATION, WAS

PROHIBITED FROM PAYING FOR CONGRESSMAN RANGEL’S TRAVEL

102. The Carib News Foundation is identified as the ‘‘sponsor’’ of 

this conference on at least three forms filed with the Committee on 

Standards of Official Conduct: (1) the ‘‘Private Sponsor Travel Certification Form,’’; (2) the ‘‘Privately Sponsored Travel: Travel 

Form,’’ and; (3) the ‘‘Member/Officer Post-Travel Disclosure 

Form.’’ 99

103. According to a query of the New York State’s Office of the 

Secretary of State, Mr. Rodney appears to operate two organizations—the ‘‘Carib News, Inc’’ which operates a newspaper and the 

‘‘Carib News Charities, Inc’’ which also may operate under the 

name ‘‘Carib News Foundation.’’ The OCE has not been able to 

identify any additional activity, other than the annual Caribbean 

Multi-National Business Conference, in which the latter organization is involved. Furthermore, while ‘‘Carib News Charities, Inc’’/ 

‘‘Carib News Foundation’’ is listed with New York’s Office of the 

Secretary of State as a domestic not-for-profit corporation, it is not 

listed, as required by law, with the New York State Charities Bureau. In addition, there is no evidence that the organization has 

filed a tax return with the IRS, under either name, since 2005.100

104. Every organization that qualifies for tax exemption described in section 501(c)(3) of the Internal Revenue Code is defined 

as a private foundation unless the organization falls into one of the 

categories specifically excluded from the definition under section 

509(a).101 In effect, the definition divides 501(c)(3) organizations 

into two classes: private foundations and public charities. Private 

foundations are generally funded through a single donor, family or 

corporation and operate through investment income; whereas, public charities are typically funded and operated through diversified 

support from governmental sources and the general public. 

105. There are several restrictions that are placed on private 

foundations. At issue here is the restriction on ‘‘self-dealing’’ between a disqualified person (the definition of which includes Members of Congress) and a private foundation.102 The Code defines the 

act of ‘‘self-dealing’’ to include any direct or indirect agreement to 

make any payment of money (including reimbursement of expenses) or other property by a private foundation to a government 

official.103 Although framed as a tax provision, the statute essentially bars certain federal employees and federally elected officials 


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104The payment or reimbursement of travel expenses for travel solely from one point in the 

United States to another point in the United States is excepted from the definition of self-dealing provided that the payment or reimbursement does not exceed the actual cost of the transportation involved and provided the amount for all other traveling expenses does not exceed 125 

percent of the maximum amount payable under section 5702 of title 5, United States Code, for 

like travel by employees of the United States. 26 U.S.C. § 4941(d)(2)(G)(vii). 105Online Version of Publication 78 (Accessed online on June 5, 2009 at http://www.irs.gov/ 

app/pub–78/) (Exhibit 8 at 09–6333 0107.1–0107.2). 106Memorandum from Ethics Counsel at the National Institutes of Health to Deputy Ethics 

Counsels at NIH (Jun. 2, 2000) (Exhibit 25 at 09–6333 0281–0282). 107Memorandum of Interview of Representative Charles Rangel (May 28, 2009) (Exhibit 2 at 

09–6333 0022). 

from receiving compensation, including reimbursements for international travel, from a private foundation.104

106. According to Publication 78 of the IRS, a list of all charities 

claiming 501(c) status, Carib Charities, Inc is a private foundation.105

107. As such, it appears that the Carib News Foundation’s payment of travel expenses for Representative Rangel and his acceptance of payment potentially violated the Internal Revenue Code. 

108. The Board infers from the fact that the Standards Committee approved the reimbursement that the Standards Committee 

is unaware of this restriction. The Board notes, however, that its 

own research revealed that numerous other ethics-related entities 

in the federal government are aware of this restriction, and enforced it for some time.106

109. Congressman Rangel told the OCE that he was unaware of 

any limitations on the ability of private foundations to pay for overseas travel by government officials.107

110. The Board notes that these facts show failures at multiple 

points by multiple parties in complying with and enforcing the 

travel rules. Inaccurate information was provided by the Carib 

News Foundation to Members and the Standards Committee. Congressman Rangel certified inaccurate information to the Standards 

Committee. The counsel to the former Chair of the Standards Committee intervened in the review process in a way that both frustrated the process in 2007 and set a pattern of obfuscation that 

continued in 2008. Finally, the Standards Committee appears unaware of limitations on the ability of private foundations to pay for 

overseas travel by Members. 

111. For all these reasons, the Board concludes further review of 

this matter by the Standards Committee is appropriate. 


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CONFIDENTIAL 

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended 

MOI – Page 1 of 2 OFFICE OF CONGRESSIONAL ETHICS 

OFFICE OF CONGRESSIONAL ETHICS 

UNITED STATES HOUSE OF REPRESENTATIVES 

Memorandum of Interview

In Re: Representative 1 of Macy’s 

Review #: 09-6333; 09-2567; 09-4403; 09-3698; 09-2222 

Date: May 27, 2009 

Location: 11 Penn Plaza 

 New York, NY 10001 

Time: 11:10pm to 12:00 p.m. (approximately) 

Participants: Leo Wise 

 Omar Ashmawy 

Summary: Representative 1 from Macy’s is the Senior Vice President of Government and Consumer 

Affairs and Diversity Vendor Development at Macy’s, Inc. He was interviewed pursuant to Review 

09-2567; 09-4403; 09-3698; 09-6333; and 09-2222. The OCE requested an interview with 

Representative 1 from Macy’s and he consented to an interview. Representative 1 from Macy’s was 

given an 18 U.S.C. § 1001 warning and signed a written acknowledgement of the warning. 

Representative 1 from Macy’s made the following statements in response to our questioning: 

1. Representative 1 from Macy’s met Karl and Faye Rodney in 1996. As a result of the 

large Caribbean Community in New York City and Macy’s commercial interests in the 

Caribbean region, Representative 1 from Macy’s asked Macy’s advertizing division to 

consider the CaribNews newspaper. 

2. The first conference he attended was in 1998 in St. Lucia. He attended as a participant.

At the time, Macy’s was considering a store in Puerto Rico and so Representative 1 from 

Macy’s was especially interested in business in the region. He was impressed by how 

many government officials from the Caribbean region were present at the conference and 

by what they had to say about developing relationships with the United States.

09-6333 0231

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CONFIDENTIAL 

Subject to the Nondisclosure Provisions of H. Res. 895 of the 110th Congress as Amended 

MOI – Page 2 of 2 OFFICE OF CONGRESSIONAL ETHICS 

3. In the ensuing years, Macy’s became a sponsor. The conference was a place where the 

company looked for vendors and designers. It was also a place where they could hear 

from U.S. legislators about their thoughts on the region. It was also a place for 

Representative 1 from Macy’s to connect with U.S. companies who were attending. 

4. Macy’s first sponsored the conference in 2000. Over the years they have sponsored the 

event on an annual basis at varying levels, ranging from $10,000 to $35,000. As 

women’s issues are particularly important to Macy’s, given their clientele, their 

sponsorship focuses on the conference’s “Women’s Power Breakfast.” The event was 

described as very lavish. All attendee of the breakfast also get a Macy’s tote bag.

5. In 2008, Macy’s contribution to the conference was $35,000 is cash and an in-kind 

contribution of 400 tote bags. The total value of the in-kind contribution was $4,620.

The money was earmarked specifically for the conference. 

6. As a sponsor, Macy’s was given the opportunity to have a representative make opening 

remarks, to have representation at the Women’s Power Breakfast, have input into who the 

speaker at the breakfast will be, and attend the closed door session with Members of 

Congress and officials from the Caribbean governments. Representative 1 from Macy’s 

did in fact attend the closed door session in 2008. He recalled that other corporate 

sponsors also attended the meeting, but he could not recall which ones. 

7. Representative 1 from Macy’s recalled interacting with Representative Payne, 

Representative Kilpatrick, Representative Thompson, Representative Rangel, and 

Delegate Christensen. His interactions were all social in nature. 

8. Representative 1 from Macy’s was not aware of any other events sponsored by or 

planned by the CaribNews Foundation. With the exception of the conference, he was not 

aware of any other instances when Macy’s supported a CaribNews Foundation event.

Given Representative 1 from Macy’s position within the company, it is very likely he 

would know if Macy’s had done so. 

I prepared this Memorandum of Interview on May 28, 2009 after interviewing Representative 1 

from Macy’s on May 27, 2009. I certify that this memorandum contains all pertinent matter 

discussed with Representative 1 from Macy’s on May 27, 2009. 

 Omar Ashmawy 

 Investigative Counsel 

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