Source: https://www.scribd.com/document/105490801/Hal-Rogers-R-KY-CREW-s-Most-Corrupt-Members-of-Congress
Timestamp: 2017-12-17 08:18:34
Document Index: 780413079

Matched Legal Cases: ['§ 7353', '§ 7353', '§ 2635', '§ 201', '§ 2635', 'art 2']

Hal Rogers (R-KY) - CREW's Most Corrupt Members of Congress | Earmark (Politics) | United States Congress
MOST CORRUPT: REPRESENTATIVE HAROLD ROGERS Representative Harold “Hal” Rogers (R-KY) is a sixteen-term member of Congress, representing Kentucky’s
5th congressional district. Rep. Rogers chairs the House Appropriations Committee. His ethics issues stem from misusing his position to steer millions of dollars in earmarks to a manufacturing company in exchange for contributions to his campaign committee and political action committee (PAC). He was included in CREW’s 2007, 2008, and 2011 reports on congressional corruption for related issues. 1 Phoenix Products, Inc. Phoenix Products is an engineering and manufacturing company based in McKee, Kentucky. 2 Since 2006, the Army has entered into contracts totaling more than $17.6 million with Phoenix Products to procure hundreds of leakproof transmission fluid drip pans for UH-60 Black Hawk helicopters. 3 During that period, Rep. Rogers repeatedly issued press releases proclaiming he had “secured” more than $17 million in public funding for the Phoenix Productsproduced drip pans. 4 A list of requested earmarks for FY 2010 Rep. Rogers posted on his website includes $16 million in requests for Phoenix Products to produce the drip pans for the Army and the Army National Guard, and databases of earmarks list Phoenix Products as having received at least $12.1 million in earmarks for the drip pans from Rep. Rogers. 5 In addition, the conference reports for appropriations bills for 2005 and 2008-2010 include line items for
For more information, see CREW’s Most Corrupt 2011, available at http://www.crewsmostcorrupt.org /mostcorrupt/entry/most-corrupt-report-2011. 2 http://www.acstuff.com/aboutus.htm; http://www.acstuff.com/contactus.htm. 3 Office of Congressional Ethics Complaint filed by Citizens for Responsibility and Ethics in Washington (CREW OCE Complaint), Exhibit A, Federal Procurement Data System Purchase and Delivery Orders, filed June 11, 2012, available at http://www.citizensforethics.org/page/-/PDFs/Legal/Investigation/OCE_Rogers_Combined_Exhibits. pdf?nocdn=1. 4 Press Release, Representative Harold Rogers, Jackson County Business Wins $7 Million Army Contract, September 26, 2007; Press Release, Representative Harold Rogers, Congress Approves $3.6 Million for Military Equipment Made in Jackson County, November 12, 2007; Press Release, Representative Harold Rogers, McKee Made Army Helicopter Drip Pans Receives Congressional Approval, September 25, 2008; Press Release, Representative Harold Rogers, Rep. Rogers Secures Funding For McKee Made Army Helicopter Drip Pans, August 28, 2009; Press Release, Representative Harold Rogers, Rogers Secures $4.5 Million for McKee Made Army Drip Pans, December 17, 2009. 5 http://www.opensecrets.org/politicians/earmarks.php?fy=FY10&cid=N00003473&cycle=2010; http://www.opensecrets.org/politicians/earmarks.php?fy=FY09&cid=N00003473&cycle=2010; http://www.opensecrets.org/politicians/earmarks.php?fy=FY08&cid=N00003473&cycle=2008; http://www.legistorm.com/earmarks/details/organization/1225/Phoenix_Products_Inc_/page/1/sort/amount /type/desc/year/all.html; H.R. Rep. 108-622, at 102 (2004) (Conf. Rep.); Eric Lichtblau, Earmark Puts $17,000 Pans On Army Craft, New York Times, May 18, 2012.
millions of dollars for leakproof transmission drip pans, and three of the bills specifically note they were requested by Rep. Rogers. 6 According to an Army spokesman, as of October 2011 the Army had purchased 374 of the drip pans at an average cost of $17,000. 7 The number may actually be higher. One contract obtained by CREW through the Freedom of Information Act indicates the maximum number of drip pans the Army could order under the contract was 471, and the total number ordered as of March 2009 was 407. 8 Meanwhile, a competitor who produces drip pans for other military helicopters said his company charges about $2,500 for a similar part – about one-eighth the price charged by Phoenix Products. 9 After the competitor began questioning the price, reporters asked Rep. Rogers about the earmarks. Rep. Rogers’ spokeswoman told Bloomberg that Phoenix Products had been awarded the contracts through a competitive bidding process. 10 One of Rep. Rogers’ congressional aides, however, told the New York Times the congressman “inserted the earmark,” and an Army spokesman told the Times the Army was simply following a budget directive from Congress and the work had been awarded without competitive bids. 11 Buttressing that, many of the purchase and delivery orders for the drip pans in the Federal Procurement Data System assert there was no competition for them as “authorized by statute.” 12 The owners of Phoenix Products, Peggy and Thomas Wilson, have contributed $20,400 to Rep. Rogers’ campaign committee and PAC since 2004. 13 Phoenix Products has retained the lobbying firm Martin, Fisher, Thompson & Associates since 2004, and employees of that firm have contributed $17,000 to Rep. Rogers’ campaign and PAC since 2002. 14
H.R. Rep. 108-622, at 102 (2004) (Conf. Rep.); H.R. Rep. 110-434, at 382, 386 (2007) (Conf. Rep.); H.R. Rep. 111-230, at 393, 395 (2009) (Conf. Rep.). 7 Lichtblau, New York Times, May 18, 2012. 8 CREW OCE Complaint, Exhibit D, Solicitation/Contract/Order for Commercial Items, Contract No. W58RGZ-07D-0267, August 7, 2007, at 2; CREW OCE Complaint, Exhibit D, Solicitation/Contract/Order for Commercial Items, Contract No. W58RGZ-07-D-0267, Order No. 0005, March 9, 2009, at 2. 9 Lichtblau, New York Times, May 18, 2012. 10 Stephanie Armour, Army Purchases Of $17,000 Pans Tied To Kentucky Lawmaker, Bloomberg, May 19, 2012. 11 Lichtblau, New York Times, May 18, 2012. 12 CREW OCE Complaint, Exhibit A, Federal Procurement Data System Purchase and Delivery Orders. 13 Political MoneyLine, Employer Search, Phoenix Products, 2001-Present; Political MoneyLine, Donor Lookup, Thomas Wilson, 2001-Present; Political MoneyLine, Donor Lookup, Peggy Wilson, 2001-Present. 14 Martin, Fisher, Thompson & Associates, Lobbying Registration October 1, 2004, on behalf of Phoenix Products, Inc., Secretary of the Senate, Office of Public Records; Martin, Fisher, Thompson & Associates, First Quarter 2012 Lobbying Disclosure Report on behalf of Phoenix Products, Inc., Secretary of the Senate, Office of Public Records; Political MoneyLine, Employer Search, Martin, Fisher, Thompson & Associates, 2001-Present; Political MoneyLine, Donor Lookup, Steven Thompson, 2001-Present; Political MoneyLine, Donor Lookup, J. Paris Fisher, 2001-Present; Political MoneyLine, Donor Lookup, David Martin, 2001-Present.
Potential Violations Illegal Gratuity The illegal gratuity statute prohibits a public official from directly or indirectly demanding, seeking, receiving, accepting, or agreeing to accept anything of value personally for or because of any official act performed or to be performed by such official. 15 In considering this statute, the Supreme Court has held that a link must be established between the gratuity and a specific action taken by or to be taken by the government official. 16 If a link is established between Rep. Rogers’ earmarking funds or obtaining federal contracts or loans for Phoenix Product and the campaign donations he received from executives and employees of either the company or its lobbyists, he may have accepted an illegal gratuity. Receiving Compensation For Exerting Improper Influence A provision of the Ethics Reform Act of 1989, 5 U.S.C. § 7353, prohibits members of the House, officers, and employees from asking for anything of value from a broad range of people, including “anyone who seeks official action from the House, does business with the House, or has interests which may be substantially affected by the performance of official duties.” 17 House Rule 23, clause 3, similarly provides: A Member, Delegate, Resident Commissioner, or employee of the House may not receive compensation and may not permit compensation to accrue to his beneficial interest from any source, the receipt of which would occur by virtue of influence improperly exerted from his position in the Congress. If Rep. Rogers accepted campaign contributions in return for legislative assistance by earmarking federal funds for Phoenix Products, he may have violated 5 U.S.C. § 7353 and House Rule 23. Official Action for Personal Gain Members of the House are prohibited from “taking any official actions for the prospect of personal gain for themselves or anyone else.” 18 House members are directed to adhere to 5 C.F.R. § 2635.702(a), issued by the U.S. Office of Government Ethics for the Executive Branch, which provides:
18 U.S.C. § 201(c)(1)(B). United States v. Sun-Diamond Growers of Cal., 526 U.S. 398 (1999). 17 House Comm. on Standards of Official Conduct, “Memorandum For All Members, Officers and Employees,” Rules Governing (1) Solicitation by Members, Officers and Employees in General, and (2) Political Fundraising Activity in House Offices, April 25, 1997. 18 House Comm. on Standards of Official Conduct, “Memorandum For All Members, Officers and Employees,” Prohibition Against Linking Official Actions to Partisan or Political Considerations, or Personal Gain, May 11, 1999.
An employee shall not use or permit use of his Government position or title or any authority associated with his public office in a manner that is intended to coerce or induce another person . . . to provide any benefit, financial or otherwise, to himself or to friends, relatives, or persons with whom the employee is affiliated in a nongovernmental capacity. If Rep. Rogers accepted campaign contributions in return for funneling earmarks and federal contracts to Phoenix Products, he may have taken official action for personal gain in violation of 5 C.F.R. § 2635.702(a). Unfairly Discriminating By Dispensing Special Favors The Code of Ethics for Government Service provides that government officials should: Never discriminate unfairly by the dispensing of special favors or privileges to anyone, whether for remuneration or not; and never accept for himself or his family, favors or benefits under circumstances which might be construed by reasonable persons as influencing the performance of his official duties. 19 If Rep. Rogers accepted campaign contributions in return for funneling earmarks and federal contracts to Phoenix Products, he may have dispensed special favors in violation of the Code of Ethics. Conduct Not Reflecting Creditably on the House House Rule 23 requires all members of the House to conduct themselves “at all times in a manner that reflects creditably on the House.” 20 This ethics standard is considered to be “the most comprehensive provision” of the code. 21 When this section was first adopted, the Select Committee on Standards of Official Conduct of the 90th Congress noted it was included within the Code to deal with “flagrant” violations of the law that reflect on “Congress as a whole,” and that might otherwise go unpunished. 22 This rule has been relied on by the committee in numerous prior cases in which the committee found unethical conduct including: the failure to report campaign contributions, 23 making false statements to the committee, 24 criminal
72 Stat., Part 2, B12, H. Con. Res. 175, 85th Cong. (adopted July 11, 1958); House Comm. on Standards of Official Conduct, House Ethics Manual, p. 20 (110th Cong., 2d Sess., 2008 ed.). 20 Rule 23, cl. 1. 21 House Ethics Manual, p. 12. 22 House Comm. on Standards of Official Conduct, Report Under the Authority of H. Res. 418, H. Rep. No. 1176, 90th Cong., 2d Sess. 17 (1968). 23 House Comm. on Standards of Official Conduct, In the Matter of Representative John J. McFall, H. Rep. No. 951742, 95th Cong., 2d Sess. 2-3 (1978) (Count 1); In the Matter of Representative Edward R. Roybal, H. Rep. No. 95-1743, 95th Cong., 2d Sess. 2-3 (1978). 24 House Comm. on Standards of Official Conduct, In the Matter of Representative Charles H. Wilson (of California), H. Rep. No. 95-1741, 95th Cong., 2d Sess. 4-5 (1978); H. Rep. No. 95-1743 (Counts 3-4).
convictions for bribery, 25 or accepting illegal gratuities, 26 and accepting gifts from persons with interest in legislation in violation of the gift rule. 27 If Rep. Rogers accepted campaign contributions in return for legislative favors that benefitted campaign contributors, he acted in a manner that brings discredit to the House. In addition, wasteful earmarks have been the subject of significant controversy for many years and led to the current moratorium on earmarks. Rep. Rogers, once known for his generous use of earmarks, decried the practice to obtain the chairmanship of the House Appropriations Committee. Confronted by negative media attention for the drip pan earmark, it appears Rep. Rogers may have lied by having a spokeswoman claim he did not, in fact, insert the earmark despite evidence indicating that he did. Lying to cover up wasteful government spending on behalf of a campaign donor does not reflect creditably upon the House.
House Comm. on Standards of Official Conduct, In the Matter of Representative Michael J. Myers, H. Rep. No. 96-1387, 96th Cong., 2d Sess. 2, 5 (1980); see 126 Cong. Rec. 28953-78 (Oct. 2, 1980) (debate and vote of expulsion); In the Matter of Representative John W. Jenrette, Jr., H. Rep. No. 96-1537, 96th Cong., 2d Sess. 4 (1980) (member resigned); In the Matter of Representative Raymond F. Lederer, H. Rep. No. 97-110, 97th Cong., 1st Sess. 4, 16-17 (1981) (member resigned after Committee recommended expulsion). In another case, the Committee issued a Statement of Alleged Violation concerning bribery and perjury, but took no further action when the member resigned (In the Matter of Representative Daniel J. Flood, H. Rep. No. 96-856, 96th Cong., 2d Sess. 416, 125-126 (1980)). 26 House Comm. on Standards of Official Conduct, In the Matter of Representative Mario Biaggi, H. Rep. No. 100506, 100th Cong., 2d Sess. 7, 9 (1988) (member resigned while expulsion resolution was pending). 27 House Comm. on Standards of Official Conduct, In the Matter of Representative Charles H. Wilson (of California), H. Rep. No. 96-930, 96th Cong. 2d Sess. 4-5 (1980); see 126 Cong. Rec. 13801-20 (June 10, 1980) (debate and vote of censure).
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