[Congressional Record Volume 144, Number 145 (Tuesday, October 13, 1998)]
[House]
[Pages H10814-H10815]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   PORTALS INVESTIGATION AND POSSIBLE REFERRALS TO JUSTICE DEPARTMENT

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Texas (Mr. Barton) is recognized for 5 minutes.
  Mr. BARTON of Texas. Mr. Speaker, the Subcommittee on Oversight and 
Investigations of the Committee on Commerce has held 7 hearings since 
August this year into the circumstances surrounding the planned 
relocation of the Federal Communications Commission to the Portals, a 
privately owned and financed office complex in Southwest Washington, 
D.C. in which Mr. Franklin L. Haney is a partner.
  In particular, hearings have focused on the questionable fee 
arrangements Mr. Franklin L. Haney had with several top Washington 
lawyers/lobbyists, including Peter Knight, a former top Senate aide to 
Vice President Gore and manager of the Clinton-Gore reelection 
campaign; James Sasser, a former U.S. Senator from Tennessee, the 
current United States Ambassador to China; and Mr. John Wagster, a 
former subcommittee staff director for then Senator Sasser.
  At this time the Subcommittee on Oversight and Investigations does 
not plan to hold any further hearings, but I do believe that the 
evidence developed to date warrants specific referrals to the 
Department of Justice for investigation as to whether Mr. Franklin L. 
Haney, Mr. Peter Knight, Mr. James Sasser, and Mr. John Wagster might 
have committed one or more illegalities in connection with the Portals 
matter, the committee's investigation thereof, and other related 
matters, such as the extension of the Franklin L. Haney lease with the 
Tennessee Valley Authority.
  The Department of Justice campaign finance task force currently is 
investigating some aspects of the Portals matter, but it is unclear 
whether the Department is focusing on some of the legal questions that 
our investigation has raised.
  In addition, there is substantial reason to believe that in 
attempting to conceal the true nature of their fee arrangement, some of 
the individuals that I have mentioned may have lied under oath or 
otherwise made false or deceptive statements to the Subcommittee on 
Oversight and Investigations of the Committee on Commerce, which in and 
of themselves constitute crimes worthy of referral for further 
investigation.
  In consultation with the full committee chairman, the gentleman from 
Virginia (Mr. Tom Bliley) of the Committee on Commerce, I have directed 
majority committee counsel to prepare expeditiously a report setting 
forth findings on this matter, and the grounds for specific referrals 
to the Justice Department, which will be shared with all members of the 
subcommittee in order to solicit their views.
  However, based on a preliminary assessment of the evidence gathered 
so far and the potentially applicable laws that may have been violated, 
I believe the subcommittee's investigation has raised the following 
legal questions: Whether Mr. Franklin L. Haney may have violated 41 
U.S. code section 254(a) by retaining Mr. Peter Knight, Mr. James 
Sasser, and Mr. John Wagster on a contingency fee basis with respect to 
the Portals and or TVA leases; number 2, whether in violation of the 
False Statements Act, 18 USC 1001, and the False Claims Act, 31 U.S. 
Code, Section 3729, Mr. Franklin L. Haney may have caused a false 
certification of claim to be filed with the government asserting that 
he had not hired or retained anyone on a contingency fee basis with 
respect to the Portals and the TVA leases.

                              {time}  2015

  Whether, in violation of the Federal Conspiracy Statute, (18 U.S. 
Code, Section 371) Mr. Peter Knight, Mr. James Sasser or Mr. John 
Wagster may have conspired with Mr. Franklin L. Haney in the making of 
these false certifications, or in an effort to defraud the United 
States Government by impairing, obstructing, or defeating the lawful 
function of a department or government agency.

[[Page H10815]]

  Whether, in violation of the False Statements Act (18 U.S. Code 1001) 
and the Federal Perjury Statute (18 U.S. Code 1621) Mr. Franklin Haney, 
Mr. Peter Knight or Mr. James Sasser may have made false or deceptive 
statements or lied under oath before the Subcommittee on Oversight of 
the Committee on Commerce with respect to the nature of their fee 
arrangements on the Portals or and/or TVA leases; and
  Whether Mr. Sasser may have violated 18 U.S. Code 203(a) by agreeing 
to and receiving compensation while a U.S. official for the 
representational services of another before a government agency with 
respect to a matter directly involving the Federal Government.
  I also believe that the Department of Justice and the General 
Services Administration should take immediate steps to recover the $2.5 
million in fees paid by Mr. Franklin Haney to Mr. Peter Knight, Mr. 
James Sasser and Mr. John Wagster on the Portals as authorized by 
statute, and the more than $17 million paid out to the Portals 
partnership for rent on a vacant building due to the fixed rent start 
date that Mr. Franker L. Haney and his representatives secured to 
facilitate his financing of the Portals.
  The subcommittee's investigation into the Portals has been a 
difficult one, mainly due to the unprecedented lack of voluntary 
cooperation and the deliberate efforts at obstruction by Mr. Franklin 
L. Haney and his associates, virtually all of whom refused to be 
interviewed by committee staff or provide documents voluntarily. Mr. 
Franklin L. Haney's refusal to produce subpoenaed materials ultimately 
led to the Subcommittee on Oversight and Investigation of the Committee 
on Commerce and the full Committee on Commerce to hold him in contempt 
of Congress. A report detailing those proceedings against Mr. Franklin 
L. Haney recently was filed by the House by the chairman of the 
Committee on Commerce, the gentleman from Virginia (Mr. Thomas Bliley).
  It is also my hope that the House will use this case to make much-
needed changes to its rules governing investigations, including 
expediting enforcement of subpoenas and permitting subpoenas to be 
issued for staff depositions of witnesses who refuse to be interviewed 
voluntarily. These steps, among others, will permit the investigative 
subcommittees to do their important job in a more efficient, timely 
fashion in the future.

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