    [House Prints, 111th Congress]
    [From the U.S. Government Publishing Office]

    111th Congress                                         Review No.
     1st Session             HOUSE OF REPRESENTATIVES       09-2222
    --------------------------------------------------------------------

                        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

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                                      June 2009

    111th Congress                                         Review No.
     1st Session             HOUSE OF REPRESENTATIVES       09-2222
    --------------------------------------------------------------------

                        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

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                                    June 2009

                         U.S. GOVERNMENT PRINTING OFFICE
    54-329                       WASHINGTON : 2009

                                   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
    Elizabeth Horton, Investigative Counsel
    Omar Ashmawy, Investigative Counsel

                                     REPORT

                               Review No. 09-2222

        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 Bennie Thompson
        NATURE OF THE ALLEGED VIOLATION: There is substantial
    reason to believe that Congressman Bennie Thompson's
    participation in the 13th Annual Caribbean Multi-National
    Business Conference in St. Maarten, N.A. from November 6-9,
    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 Thompson.
        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.
                               TABLE OF CONTENTS

      I. INTRODUCTION.....................................................5
              A. Summary of Allegations..............................     5
              B. A Note on Culpability...............................     6
              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 THOMPSON TRIP.....................................8
              A. Representative Thompson's Knowledge of The
                  Involvement of These Corporations in the Conference     9
              B. CARIB NEWS also Sponsored Congressman Thompson's
                  Travel.............................................    13
              C. Corporate Donations Were Earmarked for the
                  Conference.........................................    13
              D. Because Entities that Employ or Retain Lobbyists
                  Sponsored the Event, Congressman Thompson'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 POST-TRAVEL
         DISCLOSURE FORM.................................................36
              A. Representations from Carib News Foundation..........    37
              B. Information Required from the Congressional Traveler    38
      V. CARIB NEWS FOUNDATION, AS A PRIVATE FOUNDATION, WAS PROHIBITED
         FROM PAYING FOR CONGRESSMAN THOMPSON'S TRAVEL...................39
                     FINDINGS OF FACT AND CITATIONS TO LAW

                               Review No. 09-2222

        On May 29, 2009 the Board of the Office of Congressional
    Ethics (hereafter 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 of whether or
    not a violation actually occurred.

                                 I. INTRODUCTON

        1. Congressman Bennie Thompson attended the 13th Annual
    Caribbean Multi-National Business Conference in St. Maarten,
    N.A., from November 6-9, 2008. Congressman Thompson received
    funds from a private source to participate in the conference.

                           A. SUMMARY OF ALLEGATIONS

        2. There is substantial reason to believe that Congressman
    Thompson 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
    Thompson 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 Thompson'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 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 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
    Thompson 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
    Thompson 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
    Thompson 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 four 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 Thompson and (4) whether, because of its tax
    status, the Carib News Foundation could lawfully pay for
    Congressman Thompson's conference-related expenses.
        7. While all these topics are relevant, the Board notes
    that they do not all involve conduct by Congress Thompson to
    the same degree.
              a. As to topic 1, determining the identity of the
            true sponsor or sponsors implicates the conduct of both
            Congressman Thompson and the Standards Committee.
            Congressman Thompson told the OCE he relied on the
            Standards Committee to make that determination. It is
            the Board's view that the Member's approach is
            reasonable to a point. Once Congressman Thompson
            arrived at the conference, however, he was confronted
            with information that other corporations were co-
            sponsors. 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 Thompson. Nonetheless, it
            directly bears on whether and to 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 Thompson 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 ``true, accurate and complete'' to
            the ``best of the Member's knowledge.'' Congressman
            Thompson saw the value of his travel and retained
            copies of documents that showed its true value in his
            office files. Nonetheless, he certified inaccurate
            information on the post-travel disclosure form.
              d. As to topic 4, limitations on Carib News
            Foundation's ability to pay for overseas travel of
            government officials, Congressman Thompson 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 Bennie Thompson, a Member of the United
    States House of Representatives from the 2nd District of
    Mississippi. 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.
    ---------------------------------------------------------------------------
        \1\ House Resolution 895 of the 110th Congress, Section 1(e).
    ---------------------------------------------------------------------------

                             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.
    ---------------------------------------------------------------------------
        \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.
    ---------------------------------------------------------------------------
        10. At least three members of the Board voted to initiate a
    second-phase review in this matter on March 27, 2009. The
    second-phase review commenced on April 6, 2009.\3\ The second-
    phase review was scheduled to end on May 21, 2009.
    ---------------------------------------------------------------------------
        \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.
    ---------------------------------------------------------------------------
        11. The Board voted to extend the 45-day second-phase
    review by an additional 14 days, as provided for under the
    Resolution, on 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 Thompson 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.
    ---------------------------------------------------------------------------
        \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.
    ---------------------------------------------------------------------------
        16. There is substantial reason to believe that Congressman
    Thompson 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 Thompson 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 Thompson's travel according to House travel rules
    because these corporations had donated funds specifically for
    the conference (i.e. earmarked funds).

      A. REPRESENTATIVE THOMPSON'S KNOWLEDGE OF THE INVOLVEMENT OF THESE
                         CORPORATIONS IN THE CONFERENCE

        17. On his Member Post-Travel Disclosure Form, Congressman
    Thompson 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 December 2008.\6\
    ---------------------------------------------------------------------------
        \5\ The ``Member/Officer Post-Travel Disclosure Form'' asks the
    filer at question 5, ``Sponsor(s) (who paid for the trip).'' This in
    turn raises the question 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 the
    conference. The Board also notes that the Standards Committee treated
    the conference as the ``trip'' in its letter pre-approving Congressman
    Thompson's trip.
        \6\ Member/Officer Post-Travel Disclosure Form signed by
    Representative Bennie G. Thompson (Dec. 5, 2008) (Exhibit 1 at 09-
    2222--2).

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        18. Congressman Thompson certified that this information
    was ``true, correct and complete'' to the ``best of [his]
    knowledge.'' \7\
    ---------------------------------------------------------------------------
        \7\  Id. at 09-2222--3.

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        19. In an interview with the OCE, Congressman Thompson
    confirmed he signed this document.\8\
    ---------------------------------------------------------------------------
        \8\ Memorandum of Interview of Representative Bennie Thompson (May
    6, 2009) (Exhibit 2 at 09-2222--27).
    ---------------------------------------------------------------------------
        20. Prior to the conference, Karl Rodney, the CEO of the
    Carib News Foundation, submitted a Private Sponsor Travel
    Certification Form to Congressman Thompson, which he in turn
    submitted to the Standards Committee that identified the Carib
    News Foundation as the sponsor of the trip.\9\
    ---------------------------------------------------------------------------
        \9\ Private Sponsor Travel Certification Form signed by Karl A.
    Rodney (Oct. 3, 2008) (Exhibit 1 at 09-2222--8).

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        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\
    ---------------------------------------------------------------------------
        \10\  Id.

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        22. Rodney also certified that the information was ``true,
    complete, and correct.'' \11\
    ---------------------------------------------------------------------------
        \11\  Id. at 09-2222--10.

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        23. Prior to the conference, the Standards Committee
    approved the reimbursement of Congressman Thompson's expenses
    by the Carib News Foundation.\12\
    ---------------------------------------------------------------------------
        \12\ Letter from the Committee on Standards of Official Conduct to
    Representative Bennie G. Thompson (Oct. 20, 2008) (Exhibit 1 at 09-
    2222--4).

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        24. At the conference, several corporations, including
    Citibank, IBM, AT&T, and others, were identified as
    ``sponsors.'' \13\
    ---------------------------------------------------------------------------
        \13\ Photographs taken at the 13th Annual Caribbean Multi-National
    Business Conference (Exhibit 5 at 09-2222--62-70) (The Board notes that
    the source of this information may have a bias, interest, or motive in
    this matter.).
    ---------------------------------------------------------------------------
        25. On November 7, 2008, the conference's organizer, Karl
    Rodney, began the first morning program by thanking Citigroup,
    Pfizer, Macy's, IBM, AT&T, the Verizon Foundation and American
    Airlines, as well as their executives by name, who were
    present.\14\ This morning session was recorded by an individual
    attending the conference and the recording was subsequently
    transcribed. The OCE obtained a copy of the transcript. Mr.
    Rodney described AT&T as ``support[ing] the Conference all 13
    years'' (this was the thirteenth annual conference).\15\
    ---------------------------------------------------------------------------
        \14\ Transcript of Recording of November 7, 2008 AM Session of the
    13th Annual Caribbean Multi-National Business Conference (Exhibit 3 at
    09-2222--30-32) (The Board notes that the source of this information
    may have a bias, interest, or motive in this matter.).
        \15\ Id. at 09-2222--30.
    ---------------------------------------------------------------------------
        26. Michael Flanigan, an executive from Citibank, spoke
    immediately after Mr. Rodney and described Citibank as the
    ``lead sponsor of the premier event.''\16\
    ---------------------------------------------------------------------------
        \16\ Id. at 09-2222--32.
    ---------------------------------------------------------------------------
        27. Following Mr. Flanigan's remarks, and the remarks of
    several other speakers, Representative Carolyn Cheeks
    Kilpatrick spoke. At the end of her remarks she stated, ``[a]nd
    to the sponsors, by the way, all of you, we couldn't do this,
    be with you, help Karl if you weren't here with us so we say
    thank you very much, you are so important. To all of the
    sponsors, thank you very much.'' \17\
    ---------------------------------------------------------------------------
        \17\ Id. at 09-2222--47.
    ---------------------------------------------------------------------------
        28. In an interview with the OCE, Congressman Thompson
    confirmed he attended this session of the conference.\18\
    ---------------------------------------------------------------------------
        \18\ Memorandum of Interview of Representative Bennie Thompson (May
    6, 2009) (Exhibit 2 at 09-2222--26).
    ---------------------------------------------------------------------------
        29. In addition to these comments, signs for the conference
    displayed these corporations' logos, including signs hung
    behind the speaker's podium.\19\
    ---------------------------------------------------------------------------
        \19\ Photographs taken at the 13th Annual Caribbean Multi-National
    Business Conference (Exhibit 5 at 09-2222--62).

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        30. In an interview with the OCE, Congressman Thompson
    stated that he relied on the entity that invited his to the
    conference, the Carib News Foundation, to identify the sponsor
    of his trip and, further, that he relied on the Standards
    Committee, who pre-approved his trip, to determine if that
    information was accurate.\20\ As a result, Congressman Thompson
    told the OCE that the involvement of these corporations in the
    conference did not raise questions in his mind about whether
    the Carib News Foundation was the sole sponsor of the
    conference.\21\
    ---------------------------------------------------------------------------
        \20\ Memorandum of Interview of Representative Bennie Thompson (May
    6, 2009) (Exhibit 2 at 09-2222--28).
        \21\ Id. at 09-2222--27.
    ---------------------------------------------------------------------------
        31. The Board notes that the practice of relying entirely
    on the Standards Committee to determine the sponsor of a
    Member's travel carries with it a degree of risk. Further,
    while Members are required to receive pre-approval from the
    Standards Committee before they travel, it is the Member, and
    not the Standards Committee, that is ultimately accepting the
    travel from a private sponsor. The Board reads the pre-
    clearance process as a free-standing requirement the House
    adopted in 2007. There is no indication that the House intended
    it to supplant, or at the very least to completely supplant,
    Members' responsibility to abide by the travel rules when they
    accept privately sponsored travel. As a result, it is the
    Board's view that a reasonable reading of the travel rules
    places responsibility for identifying the sponsor with both the
    Member and the Standards Committee and not the Standards
    Committee alone. This shared responsibility also reflects the
    practical reality that, because the Member actually takes the
    trip, and the Standards Committee does not, the Member may, in
    certain circumstances, have access to information about the
    trip not available to the Standards Committee. In this
    instance, the Member's had information about the sponsors of
    the conference not available to the Standards Committee, namely
    that numerous corporations were identified as sponsors of the
    conference.
        32. Further, as described below, these other entities were,
    in fact, sponsors of the conference.

           B. CARIB NEWS ALSO SPONSORED CONGRESSMAN THOMPSON'S TRAVEL

        33. 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.\22\
    ---------------------------------------------------------------------------
        \22\ Private Sponsor Travel Certification Form signed by Karl
    Rodney (Oct. 3, 2008) (Exhibit 1 at 09-2222--10).
    ---------------------------------------------------------------------------
        34. 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.''\23\
    ---------------------------------------------------------------------------
        \23\ Letter from Joel Cohen, Counsel for Karl Rodney (May 18, 2009)
    (Exhibit 6 at 09-2222--72).
    ---------------------------------------------------------------------------
        35. Therefore, CARIB NEWS was also effectively a sponsor of
    Congressman Thompson's trip.

            C. CORPORATE DONATIONS WERE EARMARKED FOR THE CONFERENCE

        36. 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 travel 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.
        37. 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.\24\
    ---------------------------------------------------------------------------
        \24\ Letter from Carib News Foundation to Mr. Eric Eve, Citigroup,
    Inc. (Apr. 4, 2008) (Exhibit 7 at 09-2222--77-78) (a nearly identical
    letter was sent to IBM, AT&T, Pfizer, Verizon Foundation and others).

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        38. Attached to this solicitation letter was a PowerPoint
    presentation.\25\ 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.\26\ In each instance, the sponsorship covers
    travel related expenses such as gala events and meals.
    ---------------------------------------------------------------------------
        \25\ Id. at 09-2222--79-94.
        \26\ Id. at 09-2222--87-90.

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        39. 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.\27\ On its 2005 Form 990, the Carib News Foundation
    is shown as having no assets, no income and no expenses.\28\
    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.\29\
    ---------------------------------------------------------------------------
        \27\ Letter from IRS to OCE (April 17, 2009) (Exhibit 8 at 09-
    2222--98-115).
        \28\ Id. at 09-2222--98-115.
        \29\ Memorandum of Interview of Representative of IBM (May 8, 2009)
    (Exhibit 9 at 09-2222--119).
    ---------------------------------------------------------------------------
        40. Citigroup. Citigroup made a $75,000 payment to the
    CARIB NEWS for the conference.\30\
    ---------------------------------------------------------------------------
        \30\ Documents submitted to the OCE by Citigroup (Exhibit 7 at 09-
    2222--76).
    ---------------------------------------------------------------------------
        41. Verizon Foundation. Verizon Foundation made a $35,000
    payment to the Carib News Charities \31\ for the
    conference.\32\
    ---------------------------------------------------------------------------
        \31\ Mr. 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.
        \32\ Documents Submitted to the OCE by the Verizon Foundation
    (Exhibit 10 at 09-2222--122).

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        42. 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.\33\
    ---------------------------------------------------------------------------
        \33\ Memorandum of Interview of Representative 1 of Verizon
    Foundation (Mar. 23, 2009) (Exhibit 11 at 09-2222--128).
    ---------------------------------------------------------------------------
        43. 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.\34\
    ---------------------------------------------------------------------------
        \34\ Documents submitted by IBM to the OCE (Exhibit 13 at 09-2222--
    142).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        44. Macy's. Macy's made a $35,000 payment to CARIB NEWS for
    the conference.\35\
    ---------------------------------------------------------------------------
        \35\ Memorandum of Interview of Representative 1 of Macy's (Exhibit
    20 at 09-2222--236).
    ---------------------------------------------------------------------------
        45. Pfizer. Pfizer made a $25,000 payment to CARIB NEWS for
    the conference.\36\
    ---------------------------------------------------------------------------
        \36\ Interview with Investigative Counsel on May 22, 2009.
    ---------------------------------------------------------------------------
        46. 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.\37\ 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.
    ---------------------------------------------------------------------------
        \37\ Documents submitted by American Airlines to the OCE (Exhibit
    14 at 09-2222--145) 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).
    ---------------------------------------------------------------------------

       D. BECAUSE ENTITIES THAT EMPLOY OR RETAIN LOBBYISTS SPONSORED THE
     EVENT, CONGRESSMAN THOMPSON'S INVOLVEMENT SHOULD HAVE BEEN LIMITED TO
                                    ONE DAY

        47. 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 attend
            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
            officially-connected 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.\38\
    ---------------------------------------------------------------------------
        \38\ House Ethics Manual at 92-93 (citing House Rule 25, clause
    5(b)(1)(C)) (emphasis in original)).
    ---------------------------------------------------------------------------
        48. Citigroup, IBM and Verizon employ or retain
    lobbyists.\39\
    ---------------------------------------------------------------------------
        \39\ Clerk of the House of Representatives Lobbying Disclosure
    Report 2008 (excerpt attached hereto as ``Exhibit 15'' at 09-2222--151-
    156).
    ---------------------------------------------------------------------------
        49. Congressman Thompson spent four days at the conference
    at the expense of the third-party.\40\
    ---------------------------------------------------------------------------
        \40\ Member/Officer Post-Travel Disclosure Form signed by
    Representative Bennie G. Thompson (Dec. 5, 2008) (Exhibit 1 at 09-
    2222--2).
    ---------------------------------------------------------------------------
        50. There is substantial reason to believe that Congressman
    Thompson 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

        51. The Government of St. Maarten was the host of the 2008
    conference.
        52. In that capacity, the Government of St. Maarten
    provided in-kind 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.\41\
    ---------------------------------------------------------------------------
        \41\ 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.
    ---------------------------------------------------------------------------
        53. 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.'' \42\ These included:
    ---------------------------------------------------------------------------
        \42\ Letter from Karl Rodney to Commissioner Sarah Wescott-Williams
    (Aug. 13, 2008) (Exhibit 16 at 09-2222--158).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        54. 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.\43\ These contributions to the conference were all in-
    kind, according to Mr. Rodney, and he did not provide an
    estimated value for them.\44\
    ---------------------------------------------------------------------------
        \43\ Letter from Joel Cohen, Counsel for Karl Rodney (May 18, 2009)
    (Exhibit 6 at 09-2222--72-73).
        \44\ Id.
    ---------------------------------------------------------------------------
        55. 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.\45\
    ---------------------------------------------------------------------------
        \45\ 5 U.S.C. Sec. 7342.
    ---------------------------------------------------------------------------
        56. Representative Thompson told the OCE that he was
    unaware of what role the Government of St. Maarten played in
    the conference.\46\
    ---------------------------------------------------------------------------
        \46\ Memorandum of Interview of Representative Bennie Thompson (May
    6, 2009) (Exhibit 2 at 09-2222--28).
    ---------------------------------------------------------------------------

      III. Role of the Chair's Counsel in the Approval of the 12th Annual
              Caribbean Multi-National Business Conference in 2007

        57. As previously stated, Congressman Thompson told the OCE
    that he relied on the Standards Committee to determine who the
    true sponsor of the conference was based on information the
    Standards Committee received from the organization that invited
    him to the conference--the Carib News Foundation.\47\ 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.
    ---------------------------------------------------------------------------
        \47\ Id.
    ---------------------------------------------------------------------------
        58. The Board requested that the Committee provide the
    information submitted to it for 2008 and the Committee declined
    to do so.
        59. 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.\48\ 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.
    ---------------------------------------------------------------------------
        \48\ House Ethics Manual (2008) at 92-93 (citing House Rule 25,
    clause 5(b)(1)(C)).
    ---------------------------------------------------------------------------
        60. 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.
        61. 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
    Executive Assistant at CARIB NEWS, to Dawn Kelly Mobley,
    Counsel to the then-Chair of the Ethics Committee.\49\
    ---------------------------------------------------------------------------
        \49\ E-mail from Patricia Louis to Dawn Kelly Mobley (Sept. 17,
    2007, 3:47 PM EST) (Exhibit 17 at 09-2222--208) (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.).
    ---------------------------------------------------------------------------
        62. The next day, on September 18, 2007, Ms. Mobley
    responded and asked for ``any information on your sponsor's
    status.'' \50\
    ---------------------------------------------------------------------------
        \50\ E-mail from Dawn Kelly Mobley to Patricia Louis (Sept. 18,
    2007, 12:57 PM EST) (Exhibit 17 at 09-2222--208).
    ---------------------------------------------------------------------------
        63. That same day Ms. Louis responded, indentifying
    multiple corporations as ``sponsors'' of the trip.\51\
    ---------------------------------------------------------------------------
        \51\ E-mail from Patricia Louis to Dawn Kelly Mobley (Sept. 18,
    2007) (Exhibit 17 at 09-2222--208). (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).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        64. In response that same day, Ms. Mobley asked, ``[d]o any
    of these organizations have or retain a lobbyist' '' \52\
    ---------------------------------------------------------------------------
        \52\ E-mail from Dawn Kelly Mobley to Patricia Louis (Sept. 18,
    2007, 7:03 PM EST) (Exhibit 17 at 09-2222--207).
    ---------------------------------------------------------------------------
        65. 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.\53\ 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.\54\ 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.
    ---------------------------------------------------------------------------
        \53\ E-mail from Dawn Kelly Mobley to Patricia Louis (Sept. 19,
    2007, 2:16 PM EST) (Exhibit 17 at 09-2222--207).
        \54\ House Ethics Manual (2008) at 97-98.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        66. 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.\55\
    ---------------------------------------------------------------------------
        \55\ E-mail from Dawn Kelly Mobley to Patricia Louis (Sept. 19,
    2007, 3:23 PM EST) (Exhibit 17 at 09-2222--207).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        67. On September 21, 2007, Ms. Louis responded.\56\
    ---------------------------------------------------------------------------
        \56\ E-mail from Patricia Louis to Dawn Kelly Mobley (Sept. 21,
    2007, 1:56 PM EST) (Exhibit 17 at 09-2222--205).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        68. 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.\57\
    ---------------------------------------------------------------------------
        \57\ Private Sponsor Travel Certification Form (Sept. 21, 2007)
    (Exhibit 17 at 09-2222--195).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        69. 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.\58\ This is
    at least the second instance where the Carib News Foundation
    identified these corporations as the trip's sponsors.
    ---------------------------------------------------------------------------
        \58\ Id.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        70. This prompted the following e-mail from Ms. Mobley to
    Ms. Louis.\59\ The Board notes that Ms. Mobley stated she was
    ``working through'' the Carib News Foundation's forms ``before
    leaving them with our staff attorney.''
    ---------------------------------------------------------------------------
        \59\ E-mail from Dawn Kelly Mobley to Patricia Louis (Sept. 25,
    2007, 12:42 PM EST) (Exhibit 17 at 09-2222--192).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        71. Later that same day, Ms. Mobley queried further.\60\ 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.''
    ---------------------------------------------------------------------------
        \60\ E-mail from Dawn Kelly Mobley to Patricia Louis (Sept. 25,
    2007, 5:08 PM EST) (Exhibit 17 at 09-2222--192).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        72. On October 3, 2007, Ms. Mobley informed Ms. Louis that
    Susan Olson was the staff attorney assigned to review the
    trip.\61\
    ---------------------------------------------------------------------------
        \61\ E-mail from Dawn Kelly Mobley to Patricia Louis (Oct. 3, 2007,
    12:39 PM EST) (Exhibit 17 at 09-2222--185).
    ---------------------------------------------------------------------------
        73. 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.\62\
    ---------------------------------------------------------------------------
        \62\ Private Sponsor Travel Certification Form (Sept. 21, 2007)
    (Exhibit 17 at 09-2222--196).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        74. However, as of October 5, 2007, it provided a different
    answer to question 12.\63\
    ---------------------------------------------------------------------------
        \63\ Private Sponsor Travel Certification Form (Oct. 5, 2007)
    (Exhibit 18 at 09-2222--211).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    And the attached sheet provided the following information.\64\
    ---------------------------------------------------------------------------
        \64\ Id. at 09-2222--215

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    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 \65\ (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.
    ---------------------------------------------------------------------------
        \65\ E-mail from Susan Olson to Patricia Louis (Oct. 10, 2007, 4:01
    PM EST) (Exhibit 17 at 09-2222--177-178).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        75. 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.\66\ The
    ``Advisory Opinion'' did not conclude that these entities were,
    in fact, the trip's sponsors, as the e-mail seems to indicate.
    ---------------------------------------------------------------------------
        \66\ Committee on Standards of Official Conduct, Advisory Opinion
    (Oct. 27, 2006) (Exhibit 17 at 09-2222--201-203).
    ---------------------------------------------------------------------------
        76. A draft agenda for the conference dated October 3,
    2007, identified a ``sponsor'' for each event listed.\67\ 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.'' \68\
    ---------------------------------------------------------------------------
        \67\ Working Draft of the 13th Annual Caribbean Multi-National
    Business Conference Program (Oct. 3, 2007) (Exhibit 19 at 09-2222--
    217).
        \68\ Id. at 09-2222--222-223.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    And Citi is identified as the sponsor of this event on
    ``Community Outreach--Education--Access and Collaboration.''
    \69\
    ---------------------------------------------------------------------------
        \69\ Id. at 09-2222--229.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        77. 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.\70\
    ---------------------------------------------------------------------------
        \70\ E-mail from Patricia Louis to Dawn Kelly Mobley, George
    Dalley, and Shelley Thomas (Oct. 10, 2007, 5:56 PM EST) (Exhibit 17 at
    09-2222--183).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    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 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.\71\
    ---------------------------------------------------------------------------
        \71\ Memorandum 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).
    ---------------------------------------------------------------------------
        78. Less than an hour later Ms. Mobley responded.\72\ 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.
    ---------------------------------------------------------------------------
        \72\ E-mail from Dawn Kelly Mobley to Patricia Louis (Oct. 10,
    2007, 6:49 PM EST) (Exhibit 17 at 09-2222--183).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        79. Ms. Louis then faxed Ms. Mobley.\73\ 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.'').
    ---------------------------------------------------------------------------
        \73\ Fax from Patricia Louis to Dawn Kelly Mobley (Oct. 11, 2007)
    (Exhibit 17 at 09-2222--180).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        80. 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.\74\ 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.''
    ---------------------------------------------------------------------------
        \74\ Working Draft of the 13th Annual Caribbean Multi-National
    Business Conference Program (Oct. 22, 2007) (Exhibit 21 at 09-2222--
    238).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        81. This event was previously identified in the earlier
    draft as being ``sponsored'' by Preferred Health Partners.\75\
    Now it identifies them as merely a ``participant.'' \76\
    ---------------------------------------------------------------------------
        \75\ Working Draft of the 13th Annual Caribbean Multi-National
    Business Conference Program (Oct. 3, 2007) (Exhibit 19 at 09-2222--222-
    223).
        \76\ Working Draft of the 13th Annual Caribbean Multi-National
    Business Conference Program (Oct. 22, 2007) (Exhibit 21 at 09-2222--
    242).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        82. In another example, the Board notes that the following
    event was previously identified as being sponsored by CITI.\77\
    Now CITI is not even mentioned.\78\ Michael Flanigan, the
    moderator, was an executive at CITI at the time and represented
    the company at the conference.\79\
    ---------------------------------------------------------------------------
        \77\ Working Draft of the 13th Annual Caribbean Multi-National
    Business Conference Program (Oct. 3, 2007) (Exhibit 19 at 09-2222--
    229).
        \78\ Working Draft of the 13th Annual Caribbean Multi-National
    Business Conference Program (Oct. 22, 2007) (Exhibit 21 at 09-2222--
    248).
        \79\ Memorandum of Interview of Representative of Citi (Mar. 17,
    2009) (Exhibit 4).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        83. These changes were entirely cosmetic. There is no
    indication that the corporations' substantive role in the
    conference changed in any way.
        84. 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.'' \80\ The Board notes that this
    is precisely the answer she had pre-cleared with Mobley.
    ---------------------------------------------------------------------------
        \80\ E-mail from Patricia Louis to Susan Olson (Oct. 10, 2007,
    10:33 AM EST) (Exhibit 17 at 09-2222--177).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        85. 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.\81\ Based on
    this e-mail, it appears that Ms. Olson was unaware that Mobley
    had been 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.\82\
    ---------------------------------------------------------------------------
        \81\ E-mail from Susan Olson to Bill O'Reilly and Dawn Kelly Mobley
    (Oct. 12, 2007 9:29 AM) (Exhibit 17 at 09-2222--177).
        \82\ Memorandum 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).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        86. Ms. Mobley then forwarded Ms. Olson's internal e-mail
    to Ms. Louis.\83\ The Board notes that Ms. Mobley counseled
    that these ``other organizations'' can ``participate'' in the
    program but ``should not help pay for the trip.''
    ---------------------------------------------------------------------------
        \83\ E-mail from Dawn Kelly Mobley to Patricia Louis (Oct. 12, 2007
    9:59 AM EST) (Exhibit 17 at 09-2222--176).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        87. Later that day, Ms. Mobley sent Ms. Louis an additional
    e-mail.\84\ 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.
    ---------------------------------------------------------------------------
        \84\ E-mail from Dawn Kelly Mobley to Patricia Louis (Oct. 12, 2007
    1:55 PM EST) (Exhibit 17 at 09-2222--176).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        88. Ms. Olson then sent Ms. Louis additional questions
    about the corporate entities previously identified as
    ``sponsors.'' \85\
    ---------------------------------------------------------------------------
        \85\ E-mail from Susan Olson to Patricia Louis (Oct. 12, 2007 2:41
    PM EST) (Exhibit 17 at 09-2222--171).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        89. Three days later, Ms. Louis sent an e-mail to Ms.
    Mobley, but addressed to Ms. Olson.\86\ 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.
    ---------------------------------------------------------------------------
        \86\ E-mail from Patricia Louis to Dawn Kelly Mobley (Oct. 18, 2007
    11:00 AM EST) (Exhibit 17 at 09-2222--170).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        90. In an interview with the OCE, a staff member of
    Representative Rangel's office, Staff Member 1 of Congressman
    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.\87\
    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.\88\ The staff member told the OCE that Congressman Rangel
    told him that the then-Chair had made similar statements to
    him.\89\
    ---------------------------------------------------------------------------
        \87\ Memorandum of Interview of Staff Member 1 of Congressman
    Rangel's Office (May 27-28, 2009) (Exhibit 22 at 09-2222--251-256).
        \88\T3AId. at 09-2222--252.
        \89\ Id. at 09-2222--253.
    ---------------------------------------------------------------------------
        91. Staff Member 1 of Congressman Rangel's Office 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. It was Staff Member 1 of Congressman
    Rangel's Office's understanding that if this was done, then
    Members of Congress could participate in the conference without
    any restrictions imposed by the new rules. Staff Member 1 of
    Congressman Rangel's Office 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. Staff Member 1 of Congressman Rangel's
    Office 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.\90\
    ---------------------------------------------------------------------------
        \90\ Id.
    ---------------------------------------------------------------------------
        92. 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 constituted 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.
        93. 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.
        94. In fact, in 2008, Carib News Foundation again first
    submitted its document to Ms. Mobley.\91\ 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.
    ---------------------------------------------------------------------------
        \91\ Fax from Patricia Louis to Dawn Kelly Mobley (Aug. 20, 2008)
    (Exhibit 23 at 09-2222--258).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        IV. The Value of the Trip Reported on the Member's Post-Travel
                                Disclosure Form

        95. 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 pre- and post-travel form Members must
    complete, pursuant to House Rule 25 clause 5(h)(i)(1)(B) \92\
    that requires Members to publicly disclose ``trip expenses.''
    ---------------------------------------------------------------------------
        \92\ 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.
    ---------------------------------------------------------------------------
        96. 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.
        97. There is substantial reason to believe that Congressman
    Thompson 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.

                 A. REPRESENTATIONS FROM CARIB NEWS FOUNDATION

        98. 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.\93\ 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.
    ---------------------------------------------------------------------------
        \93\ Private Sponsor Travel Certification Form signed by Karl
    Rodney (Oct. 3, 2008) (Exhibit 1 at 09-2222--10).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        99. 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.
        100. 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 of attendance included ``room
    accommodations, meals, and admission to the Conference.''
    However, these figures were not disclosed pre-travel to the
    Members or the Standards Committee, nor were these figures
    disclosed to the Members after the conference.\94\
    ---------------------------------------------------------------------------
        \94\ Letter from Joel Cohen, Counsel for Karl Rodney (May 18, 2009)
    (Exhibit 6 at 09-2222--73).
    ---------------------------------------------------------------------------

            B. INFORMATION REQUIRED FROM THE CONGRESSIONAL TRAVELER

        101. On his Member/Officer Post-Travel Disclosure Form,\95\
    Representative Thompson certified his travel cost as the
    following:
    ---------------------------------------------------------------------------
        \95\ Member/Officer Post-Travel Disclosure Form signed by
    Representative Bennie G. Thompson (Dec. 5, 2008) (Exhibit 1 at 09-
    2222--3).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        102. However, documents from Congressman Thompson's office
    show his airline ticket cost $750.15, not $410.\96\
    ---------------------------------------------------------------------------
        \96\ E-mail from Jennifer Jimerson to Patricia Louis (Oct. 27,
    2008, 8:27 PM EST) (Exhibit 24 at 09-2222--283).

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        103. In an interview with OCE, Congressman Thompson stated
    that he had been shown a list of flights and that he had chosen
    which flight he would take.\97\
    ---------------------------------------------------------------------------
        \97\ Memorandum of Interview of Representative Bennie Thompson (May
    6, 2009) (Exhibit 2 at 09-2222--26).
    ---------------------------------------------------------------------------

    V. Carib News Foundation, as a Private Foundation, Was Prohibited From
                    Paying for Congressman Thompson's Travel

        104. 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.'' \98\
    ---------------------------------------------------------------------------
        \98\ Member/Officer Post-Travel Disclosure Form signed by
    Representative Bennie G. Thompson (Dec. 5, 2008) (Exhibit at 09-2222--
    2).
    ---------------------------------------------------------------------------
        105. 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.\99\
    According to Publication 78 of the IRS, a list of all charities
    claiming 501(c) status, Carib Charities, Inc is a private
    foundation.\100\
    ---------------------------------------------------------------------------
        \99\ Letter from IRS to OCE (Apr. 17, 2009) (Exhibit 8 at 09-2222--
    98-115).
        \100\ Online Version of Publication 78 (Accessed online on June 5,
    2009 at http://www.irs.gov/app/pub-78/) (Exhibit 8 at 09-2222--114-
    115).
    ---------------------------------------------------------------------------
        106. 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.
    ---------------------------------------------------------------------------
        \101\ 26 U.S.C. Sec. Sec. 501 and 509.
    ---------------------------------------------------------------------------
        107. 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
    from receiving compensation, including reimbursements for
    international travel, from a private foundation.\104\
    ---------------------------------------------------------------------------
        \102\ 26 U.S.C. Sec. Sec. 4941 and 4946.
        \103\ 26 U.S.C. Sec. 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.
        \104\ The 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.
    Sec. 4941(d)(2)(G)(vii).
    ---------------------------------------------------------------------------
        108. As such, it appears that the Carib News Foundation's
    payment of travel expenses for Representative Kilpatrick and
    her acceptance of payment potentially violated the Internal
    Revenue Code.
        109. 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 have for some time been enforcing
    it.\105\
    ---------------------------------------------------------------------------
        \105\ Memorandum from Ethics Counsel at the National Institutes of
    Health to Deputy Ethics Counsels at NIH (Jun. 2, 2000) (Exhibit 25 at
    09-2222--278).
    ---------------------------------------------------------------------------
        110. Congressman Thompson told the OCE that he was unaware
    of any limitations on the ability of private foundations to pay
    for overseas travel by government officials.\106\
    ---------------------------------------------------------------------------
        \106\ Memorandum of Interview of Representative Bennie Thompson
    (May 6, 2009) (Exhibit 2 at 09-2222--27).
    ---------------------------------------------------------------------------
        111. 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 Thompson 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.
        112. For all these reasons, the Board concludes further
    review of this matter by the Standards Committee is
    appropriate.