[House Prints, 111th Congress]
[From the U.S. Government Publishing Office]
111th Congress Review No.
1st Session HOUSE OF REPRESENTATIVES 09-2222
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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
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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.
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\1\ House Resolution 895 of the 110th Congress, Section 1(e).
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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.
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\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.
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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.
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\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.
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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.
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\4\ House Rule 25(5)(h)(i)(1)(B) directs the Standards Committee to
establish, ``regulations describing the information it will require
individuals subject to this clause to submit to the committee in order
to obtain the prior approval of the committee for any travel covered by
this clause . . .'' On February 20, 2007, the Committee issued
guidelines and regulations concerning the travel restrictions and
requirements.
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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\
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\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\
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\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\
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\8\ Memorandum of Interview of Representative Bennie Thompson (May
6, 2009) (Exhibit 2 at 09-2222--27).
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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\
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\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\
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\10\ Id.
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22. Rodney also certified that the information was ``true,
complete, and correct.'' \11\
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\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\
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\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\
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\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.).
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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\
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\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.
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26. Michael Flanigan, an executive from Citibank, spoke
immediately after Mr. Rodney and described Citibank as the
``lead sponsor of the premier event.''\16\
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\16\ Id. at 09-2222--32.
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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\
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\17\ Id. at 09-2222--47.
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28. In an interview with the OCE, Congressman Thompson
confirmed he attended this session of the conference.\18\
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\18\ Memorandum of Interview of Representative Bennie Thompson (May
6, 2009) (Exhibit 2 at 09-2222--26).
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29. In addition to these comments, signs for the conference
displayed these corporations' logos, including signs hung
behind the speaker's podium.\19\
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\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\
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\20\ Memorandum of Interview of Representative Bennie Thompson (May
6, 2009) (Exhibit 2 at 09-2222--28).
\21\ Id. at 09-2222--27.
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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\
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\22\ Private Sponsor Travel Certification Form signed by Karl
Rodney (Oct. 3, 2008) (Exhibit 1 at 09-2222--10).
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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\
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\23\ Letter from Joel Cohen, Counsel for Karl Rodney (May 18, 2009)
(Exhibit 6 at 09-2222--72).
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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\
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\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.
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\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\
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\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).
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40. Citigroup. Citigroup made a $75,000 payment to the
CARIB NEWS for the conference.\30\
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\30\ Documents submitted to the OCE by Citigroup (Exhibit 7 at 09-
2222--76).
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41. Verizon Foundation. Verizon Foundation made a $35,000
payment to the Carib News Charities \31\ for the
conference.\32\
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\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\
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\33\ Memorandum of Interview of Representative 1 of Verizon
Foundation (Mar. 23, 2009) (Exhibit 11 at 09-2222--128).
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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\
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\34\ Documents submitted by IBM to the OCE (Exhibit 13 at 09-2222--
142).
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44. Macy's. Macy's made a $35,000 payment to CARIB NEWS for
the conference.\35\
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\35\ Memorandum of Interview of Representative 1 of Macy's (Exhibit
20 at 09-2222--236).
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45. Pfizer. Pfizer made a $25,000 payment to CARIB NEWS for
the conference.\36\
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\36\ Interview with Investigative Counsel on May 22, 2009.
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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.
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\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).
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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.''
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\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.
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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.
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\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\
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\94\ Letter from Joel Cohen, Counsel for Karl Rodney (May 18, 2009)
(Exhibit 6 at 09-2222--73).
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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:
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\95\ Member/Officer Post-Travel Disclosure Form signed by
Representative Bennie G. Thompson (Dec. 5, 2008) (Exhibit 1 at 09-
2222--3).
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102. However, documents from Congressman Thompson's office
show his airline ticket cost $750.15, not $410.\96\
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\96\ E-mail from Jennifer Jimerson to Patricia Louis (Oct. 27,
2008, 8:27 PM EST) (Exhibit 24 at 09-2222--283).
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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\
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\97\ Memorandum of Interview of Representative Bennie Thompson (May
6, 2009) (Exhibit 2 at 09-2222--26).
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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\
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\98\ Member/Officer Post-Travel Disclosure Form signed by
Representative Bennie G. Thompson (Dec. 5, 2008) (Exhibit at 09-2222--
2).
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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\
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\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).
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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.
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\101\ 26 U.S.C. Sec. Sec. 501 and 509.
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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\
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\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).
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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\
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\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).
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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\
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\106\ Memorandum of Interview of Representative Bennie Thompson
(May 6, 2009) (Exhibit 2 at 09-2222--27).
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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.