" ! HOUSE OF REPRESENTATIVES 

112TH CONGRESS

1st Session 

REVIE

11–

OFFICE OF CONGRESSIONAL ETH

UNITED STATES HOUSE OF 

REPRESENTATIVES 

————— 

Report and Findings 

Transmitted to the 

Committee on Ethics 

on May 18, 2011 

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

110th Congress as amended 

May 2011 


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se of Representatives Office of Congressional Ethics Review No. 11–7238 


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U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

67–439 

" ! HOUSE OF REPRESENTATIVES 

11 TH CONGRESS

1st Session 

REVIE

2010

11–

OFFICE OF CONGRESSIONAL ETH

UNITED STATES HOUSE OF 

REPRESENTATIVES 

————— 

Report and Findings 

Transmitted to the 

Committee on Ethics 

on May 18, 2011 

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

111th Congress as amended 

May 2011 


bjneal on DSK2TWX8P1PROD with HEARING

2
(II) 

OFFICE OF 

CONGRESSIONAL ETHICS 

BOARD 

UNITED STATES HOUSE OF REPRESENTATIVES

ONE HUNDRED TWELFTH CONGRESS

PORTER GOSS, Chair 

DAVID SKAGGS, Co-Chair 

YVONNE BURKE 

KAREN ENGLISH 

ALLISON HAYWARD 

JAY EAGEN 

WILLIAM FRENZEL 

ABNER MIKVA 

Omar S. Ashmawy, Chief Counsel & Staff 

Director 

Paul J. Solis, Investigative Counsel 


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REPORT 

Review No. 11–7238 

The Board of the Office of Congressional Ethics, by a v

less than four members, on April 29, 2011, adopted the f

report and ordered it to be transmitted to the Committee o

of the United States House of Representatives. 

SUBJECT: Greg Hill 

NATURE OF THE ALLEGED VIOLATION: Greg Hill 

outside earned income of $26,500 on his Calendar Year 

nancial Disclosure Statement from Representative 

McCaul’s campaign committee, McCaul for Congress, Inc. 

was considered ‘‘senior staff’’ in 2009 and subject to the 

earned income limit of $26,550. However, Mr. Hill received 

from McCaul for Congress, Inc., $5,450 over the 2009 limit

ruary 2011, Mr. Hill paid back $4,831.45 to McCaul for C

Inc. 

If Mr. Hill received more than $26,550 of outside earned 

from McCaul for Congress, Inc. in 2009, he may have 

House rules, standards of conduct, and federal law. 

RECOMMENDATION: The Board of the Office of Cong

Ethics recommends that the Committee on Ethics furthe

the above allegations because there is a substantial reaso

lieve that in 2009 Greg Hill received more than $26,550 o

outside income from McCaul for Congress, Inc., in vio

House rules, standards of conduct, and federal law. 

VOTES IN THE AFFIRMATIVE: 5 

VOTES IN THE NEGATIVE: 1 

ABSTENTIONS: 0 

MEMBER OF THE BOARD OR STAFF DESIGNAT

PRESENT THIS REPORT TO THE COMMITTEE ON E

Omar S. Ashmawy, Staff Director & Chief Counsel. 


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TABLE OF CONTENTS 

I. INTRODUCTION .....................................................................................

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

B. Jurisdictional Statement .............................................................

C. Procedural History ......................................................................

D. Summary of Investigative Activity ............................................

II. GREG HILL’S 2009 OUTSIDE EARNED INCOME .............................

A. Laws, Regulations, Rules, and Standards of Conduct ..............

B. Greg Hill Received Outside Earned Income in 2009 From Mc

for Congress, Inc. ......................................................................

C. Greg Hill Disclosed $26,500 in Outside Earned Income on 

Calendar Year 2009 Financial Disclosure Statement ............

D. Greg Hill Exceeded the 2009 Outside Earned Income Limit ..

III. CONCLUSION ..........................................................................................


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1 H. Res. 895, 110th Congress § 1(e), as amended (the ‘‘Resolution’’). 

2 A preliminary review is ‘‘requested’’ in writing by members of the Board of th

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

FINDINGS OF FACT AND CITATIONS TO LAW 

Review No. 11–7238 

On April 29, 2011, the Board of the Office of Congressio

ics (the ‘‘Board’’) adopted the following findings of fact an

panying citations to law, regulations, rules, and standard

duct (in italics). The Board notes that these findings do 

stitute a determination that a violation actually occurred. 

I. INTRODUCTION 

A. SUMMARY OF ALLEGATIONS

1. Greg Hill disclosed outside earned income of $26,50

Calendar Year 2009 Financial Disclosure Statement fr

resentative Michael McCaul’s campaign committee, Mc

Congress, Inc. Mr. Hill was considered ‘‘senior staff’’ in 2

subject to the outside earned income limit of $26,550. Howe

Hill received $32,000 from McCaul for Congress, Inc. In F

2011, Mr. Hill paid back $4,831.45 to McCaul for Congr

Therefore, the Board recommends that the Committee o

further review the above allegations because there is a su

reason to believe that in 2009 Greg Hill received mo

$26,550 of earned outside income from McCaul for Congr

in violation of House rules, standards of conduct, and fed

B. JURISDICTIONAL STATEMENT

2. The allegations that were the subject of this review 

Greg Hill, an employee of the United States House of Rep

tives. The Resolution the United States House of Represe

adopted creating the Office of Congressional Ethics (‘‘OCE’

that, ‘[n]o review shall be undertaken . . . by the board o

leged violation that occurred before the date of adoption of 

olution.’’ 1 The House adopted this Resolution on March 1

Because the conduct under review occurred after March 1

the OCE has jurisdiction in this matter. 

C. PROCEDURAL HISTORY

3. The OCE received a written request for a preliminar

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

uary 24, 2011. The preliminary review commenced on Jan

2011.2 The preliminary review was scheduled to end on F

23, 2011. 


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Resolution, the timeframe for conducting a preliminary review is thirty days from 

receipt of the Board’s request. 3 According to the Resolution, the Board must vote on whether to conduct a seco

view in a matter before the expiration of the thirty-day preliminary review. If the 

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

phase review does not begin on the date of the Board vote. 4 5 U.S.C. app. 4 § 501(a)(1). 

5Memorandum from Committee on Standards of Official Conduct for All Membe

and Employees, dated February 12, 2009 (Exhibit 1 at 11–7238—002–03). 

4. At least three members of the Board voted to initia

ond-phase review in this matter on February 22, 2011. The 

phase review commenced on February 24, 2011.3 The secon

review period ended on April 9, 2011. 

5. Pursuant to Rule 9(B) of the OCE Rules for the Condu

vestigations, Mr. Hill submitted a written statement to th

on April 26, 2011. 

6. The Board voted to refer the matter to the Committee 

ics and adopted these findings on April 29, 2011. 

7. The report and findings were transmitted to the Co

on Ethics on May 18, 2011. 

D. SUMMARY OF INVESTIGATIVE ACTIVITY

8. The OCE requested and received documentary evide

the following sources: 

(1) Greg Hill; and 

(2) Campaign Financial Services. 

9. The OCE requested and received testimonial from 

lowing sources: 

(1) Greg Hill; and 

(2) Financial Manager, Campaign Financial Services

II. GREG HILL’S 2009 OUTSIDE EARNED INCOM

A. LAWS, REGULATIONS, RULES, AND STANDARDS OF COND

10. House Rule 25, clause 1(a)(1) states that ‘‘[e]xcept as 

by paragraph (b), a Member, Delegate, Resident Commissio

cer, or employee of the House may not—have outside earned 

attributable to a calendar year that exceeds 15 percent of th

rate of basic pay for level II of the Executive Schedule unde

5313 of title 5, United States Code, as of January 1 of that 

year . . . .’’ 

11. The Ethics in Government Act states that ‘‘[e]xcept 

vided by paragraph (2), a Member or an officer or employe

a noncareer officer or employee and who occupies a positio

fied above GS15 of the General Schedule or, in the case of p

not under the General Schedule, for which the rate of bas

equal to or greater than 120 percent of the minimum rate 

pay payable for GS15 of the General Schedule, may not in 

endar year have outside earned income attributable to s

endar year which exceeds 15 percent of the annual rate of b

for level II of the Executive Schedule under section 5313 o

United States Code, as of January 1 of such calendar year.’

12. ‘‘[T]he outside earned income limit for Members an

staff for calendar year 2009 [was] $26,550.’’ 5


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6Memorandum of Interview of Greg Hill, March 15, 2011 (‘‘Hill MOI’’) (Exhibit 2 a

005). 7 Id. 

8 Id. 

9 Id. at 11–7238—007. 10 Id. at 11–7238—005. 11 Id. 12 Id. 13 Id. 14 Id. 15 Id. at 11–7238—006. 

B. GREG HILL RECEIVED OUTSIDE EARNED INCOME IN 2009 

MCCAUL FOR CONGRESS, INC. 

13. Greg Hill is the Chief of Staff for Representative 

McCaul.6

14. As Chief of Staff, among other duties, Mr. Hill ensu

the staff for Representative McCaul completes their requir

training.7 He does not train the staff personally, but invite

sel from the Committee on Ethics to conduct the training.8

15. Mr. Hill recalled receiving both the general House e

and Senior Staff ethics training in 2008 and 2009.9

16. Mr. Hill also works for Representative McCaul’s ca

McCaul for Congress, Inc.10 Although he does not have 

title with the campaign, he has the responsibilities of a c

director.11 Mr. Hill has had these responsibilities since h

working for Representative McCaul in 2006.12 His duties 

campaign include supervising campaign functions, assur

vendors get paid, and making certain that staff operat

tively.13

17. Although Representative McCaul ultimately makes 

terminations on his campaign activities, Mr. Hill generally 

final say regarding campaign expenditures.14 Salaries for c

staff are approved by Representative McCaul and adminis

a private firm, Campaign Financial Services (‘‘CFS’’).15


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16Greg Hill’s 2009 W–2c Corrected Wage and Tax Statement (Exhibit 3 at 11–723

17Memorandum of Interview of CFS Financial Manager, March 23, 2011 (‘‘Financ

MOI’’) (Exhibit 4 at 11–7238—012). 18 Id.; Hill MOI (Exhibit 2 at 11–7238—007). 19 House Ethics Manual 248 (2008). 20Greg Hill’s Calendar Year 2009 Amended Financial Disclosure Statement (Exh

7238—014). 

18. According to his ‘‘W–2c’’ Corrected Wage and Tax St

shown below,16 and the CFS Financial Manager working 

Hill on his account,17 in 2009 Greg Hill received outside ea

come from McCaul for Congress, Inc., totaling $32,000. Mr

ceived $32,000 in 2009, $14,000 in ‘‘bonus’’ money and $1

salary (a rate of $1,500 per month).18

C. GREG HILL DISCLOSED $26,500 IN OUTSIDE EARNED INCOME 

CALENDAR YEAR 2009 FINANCIAL DISCLOSURE STATEME

19. Mr. Hill filed a Calendar Year 2009 House Financia

sure Statement as required for ‘‘senior staff.’’ 19

20. On his Calendar Year 2009 Amended Financial D

Statement, Mr. Hill disclosed $26,500 in outside earned 

from McCaul for Congress, Inc.20

21. The $26,500 figure disclosed above is inconsistent 

$32,000 of outside earned income Mr. Hill received in 

shown by tax documents and witness testimony. 


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21 Hill MOI (Exhibit 2 at 11–7238—007). 22Financial Manager MOI (Exhibit 4 at 11–7238—012). 23 Id. 24 Hill MOI (Exhibit 2 at 11–7238—006). 25 As discussed in these findings, Mr. Hill issued a $4,831.45 check to McCaul f

Inc. in February 2011. This payment does not resolve the fact that Mr. Hill actu

$32,000 in outside earned income in 2009. The OCE does not take a position on w

repayment to the campaign committee is legally permissible or counts against inco

received in 2009. 26 Check from Greg Hill to McCaul for Congress, Inc., February 15, 2011 (Exhi

7238—024). 27 Hill MOI (Exhibit 2 at 11–7238—007). 28 Id. 

D. GREG HILL EXCEEDED THE 2009 OUTSIDE EARNED INCOME 

22. Mr. Hill told the OCE that he directed CFS to abid

annual outside earned income limit.21

23. The CFS Financial Manger told the OCE that he 

monitor the outside earned income limit because Mr. Hill 

only campaign employee who received a salary in addit

bonus from the campaign.22 The first time the CFS Financ

ager became aware of the outside earned income limit wa

March 2010, when Mr. Hill informed him of the limit.23

24. Mr. Hill explained that once he became aware that 

over the 2009 outside earned income limit, CFS told him 

rected W–2 would be issued. The corrected W–2 would 

$26,500 in outside earned income and that CFS would file 

propriate corrected paperwork with the IRS.24 However, 

remained in receipt of the $32,000.25

25. Mr. Hill did not explain why he continued to disclose 

on this Calendar Year 2009 Financial Disclosure Statemen

receiving $32,000 in outside earned income, in 2009. 

26. On February 15, 2011, nearly eleven months after b

aware of being over the outside earned income limit, Mr. H

a $4,831.45 check (shown below) to McCaul for Congress, In

Hill told the OCE that the amount on the check repres

amount CFS told him to pay back to the campaign.27 Mr. 

lieved the number represents the difference between the 

paid to Mr. Hill in 2009 by McCaul for Congress, Inc., 

$26,500 amount initially reported on his Calendar Year 

nancial Disclosure Statements, minus taxes previously wi


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III. CONCLUSION 

27. In 2009, Mr. Hill received $32,000 from McCaul 

gress, Inc., $5,450 over the 2009 House of Representatives 

earned income limitation. 

28. The Board recommends that the Committee on Et

ther review the above allegations because there is a su

reason to believe that in 2009 Greg Hill received mo

$26,550 of earned outside income from McCaul for Congr

in violation of House Rule 25, clause 1(a)(1) and 5 U.S.C

501(a)(1). 


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