Ethics violations against Rep. Charles Rangel, D-N.Y., include a charge that he solicited and won a $5 million grant from a foundation then associated with American International Group to create an educational institute that bears his name.
In its "statement of facts in support of the alleged violations," a special House Committee on member conduct said the $5 million donation from the Starr Foundation in June 2007 was made only eight days after Rep. Rangel met with Maurice "Hank" Greenberg, then chairman and CEO of AIG.
The statement of facts also charge that in April 2008, Rep. Rangel met with AIG lobbyist Edward Cloonan in hopes of "closing a $10 million gift" for the institution, called the Rangel Center, which would have been created at the City College of New York (CCNY).
"At the AIG meeting, a potential donation to the Rangel Center was discussed," the statement of facts said. "AIG raised concerns about a potential donation, including the potential headline risk."
Rep. Rangel, the statement said, "asked AIG, at least twice, what was necessary to get this done."
The statement of facts also allege that Ken Kies, senior counsel for the Association for Advanced Life Underwriting, MetLife and New York Life Insurance Company were among the 100 foundations and companies Rep. Rangel and his staff solicited for donations to the center.
Rep. Rangel is charged with violating the letter and spirit of House rules by engaging in conduct that:
o Violated the solicitation and gift ban.
o Violated the code of ethics for government service.
o Violated the House gift rule.
o Violated U.S. Postal Service laws and Franking Commission regulations.
o Violated House Office Building Commission's regulations.
o Violated the Purpose Law and the Member's Congressional Handbook.
o Violated the Ethics in Government Act and House Rule XXVI.
Talks aimed at settling the case have failed, and a trial before the eight-member House Committee on Official Conduct is likely in September, when Congress returns from its August break.
In a statement denying the charges, Rep. Rangel's lawyers contended, "The undisputed evidence in the record--assembled by the Investigative Subcommittee over its nearly two-year investigation--is that Congressman Rangel did not dispense any political favors; that he did not intentionally violate any law, rule or regulation; and that he did not misuse his public office for private gain."
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