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1.1 Million Reasons to Call Reid Corrupt
The AP has reported that Reid profited from a land deal which he hid from the Senate (in violation of Senate ethics rules) and used his influence to obtain federal land swaps and rezoning to his personal benefit.
Of course, in the Reid World, he did nothing wrong.
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WASHINGTON (AP) - Senate Democratic leader Harry Reid announced Monday he is amending his ethics reports to Congress to more fully account for a Las Vegas land deal that allowed him to collect $1.1 million for property he hadn't personally owned for three years.
The Nevada Democrat also disclosed he failed to report two other smaller land deals on those same reports.
Reid acted several days after The Associated Press reported the senator didn't disclose to Congress that he first sold land to a friend's company back in 2001 and took an ownership stake in the company. He didn't collect the seven-figure payout until the company sold the land again in 2004 to others.
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AP - 10.16.2006
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WASHINGTON (AP) - Senate Democratic leader Harry Reid has been using campaign donations instead of his personal money to pay Christmas bonuses for the support staff at the Ritz-Carlton where he lives in an upscale condominium.
Federal election law bars candidates from converting political donations for personal use.
Questioned about the campaign expenditures by The Associated Press, Reid's office said Monday he was personally reimbursing his campaign for $3,300 in donations he had directed to the staff holiday fund at his residence.
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AP - 10.16.2006
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Third Parties Across The Country Say Sen. Reid Acted Improperly
Las Vegas Review-Journal: "[A]nother Washington controversy this week at least momentarily threatened the credibility of Senate Minority Leader Harry Reid. ... [E]ven several left-leaning newspapers - including The Washington Post - criticized the senator. The Philadelphia Inquirer went so far as to urge Democrats to boot Sen. Reid as their leader barring additional evidence in his favor." (Editorial, "Sen. Reid On The Hot Seat," Las Vegas Review-Journal, 10/15/06)
• Las Vegas Review-Journal: "All this raises the question: How does a savvy political operative such as Sen. Reid make a bush-league error and find himself ankle deep in the manure pit? For the past few years, Sen. Reid has been railing about a Republican 'culture of corruption' - and has eagerly sought to exploit the Foley mess for his party's political gain. Oops." (Editorial, "Sen. Reid On The Hot Seat," Las Vegas Review-Journal, 10/15/06)
• Las Vegas Review-Journal: "Perhaps after Sen. Reid scrapes the dung off his shoes, he'll tend to the egg on his face." (Editorial, "Sen. Reid On The Hot Seat," Las Vegas Review-Journal, 10/15/06)
The [Cleveland, OH] Plain Dealer: "Democrats who have been howling this election season about a pervasive 'culture of corruption' in Washington apparently have a brand-new poster boy to illustrate their point. Problem is, he's one of theirs. Worse, he's the top Democrat in the Senate - Minority Leader Harry Reid ..." (Editorial, "Harry's Hang-Ups," The [Cleveland, OH] Plain Dealer, 10/16/06)
• The [Cleveland, OH] Plain Dealer: "The questions are so unpleasant that he hung up on the AP reporter trying to ask them. But it won't be quite so easy to dismiss a Senate ethics committee inquiry as to why he didn't report his holdings, participation and influence-wielding, as Senate rules demand. The IRS might have a couple of tax questions, too. And they really hate being hung up on." (Editorial, "Harry's Hang-Ups," The [Cleveland, OH] Plain Dealer, 10/16/06)
• The [Cleveland, OH] Plain Dealer: "The questions raised by the AP's investigative team about Reid's down-home dealing demand answers. The gentleman from Nevada would be well advised to provide them, quickly and clearly, as a culture of honesty demands." (Editorial, "Harry's Hang-Ups," The [Cleveland, OH] Plain Dealer, 10/16/06)
The San Diego Union Tribune: "Senate Minority Leader Harry Reid of Nevada is accused of violating Senate ethics rules by failing to disclose that he had transferred to a holding company ownership of a piece of land that was eventually sold for a $700,000 profit. Senate rules require that such disclosures be made so as to identify a lawmaker's business partners and avoid potential conflicts that might arise if those partners were to gain some benefit from action taken by that lawmaker." (Editorial, "Dodging Blame," The San Diego Union Tribune, 10/16/06)
• The San Diego Union Tribune: "Reid is no rookie. He has served in the Senate for 20 years, and served two terms in the House of Representatives before that. He must know the rules. So why didn't he follow them in this case? ... Whatever happened to admitting a mistake and taking responsibility? And if our representatives can't do even that much, how can we take them seriously?" (Editorial, "Dodging Blame," The San Diego Union Tribune, 10/16/06)
The [Allentown, PA] Morning Call: "Sen. Reid's lack of land-deal disclosures takes away his authority to point fingers ... A thorough investigation by the Senate Ethics Committee is warranted, but Sen. Reid has fast become a serious liability to Democrats." (Editorial, "Sen. Reid's Lack Of Land-Deal Disclosures Takes Away His Authority To Point Fingers," The [Allentown, PA] Morning Call, 10/16/06)
• The [Allentown, PA] Morning Call: "What was Senate Minority Leader Harry Reid thinking when he gave an inaccurate accounting to Congress about a 2001 property transfer that later resulted in a $1.1 million sale and a $700,000 profit? The Nevada Democrat has been out front pointing fingers at Republicans for ethical breaches ... even as he was involved in a series of shady decisions himself." (Editorial, "Sen. Reid's Lack Of Land-Deal Disclosures Takes Away His Authority To Point Fingers," The [Allentown, PA] Morning Call, 10/16/06)
• The [Allentown, PA] Morning Call: "[S]en. Reid's association with [Jay] Brown is troublesome. Mr. Brown was involved in a 1981 federal securities complaint that was settled out of court, and his name surfaced in a political bribery trial this summer and in other organized crime investigations." (Editorial, "Sen. Reid's Lack Of Land-Deal Disclosures Takes Away His Authority To Point Fingers," The [Allentown, PA] Morning Call, 10/16/06)
Pittsburgh Tribune-Review: "Look who got his wallet caught in the wringer. Senate Minority Leader Harry Reid, D-Nev., received a $700,000 profit for the sale of land he hadn't personally owned for three years." (Editorial, "The Harry Reid Scandal," Pittsburgh Tribune-Review, 10/15/06)
• Pittsburgh Tribune-Review: "This is a matter for investigation by the ethics committee, the feds and Nevada. Was the $400,000 purchase money Reid's? Did Reid, or Brown on behalf of Reid, exert illegal influence on zoning officials? Why, even in the middle of a desert, does this smell so wet and so fishy?" (Editorial, "The Harry Reid Scandal," Pittsburgh Tribune-Review, 10/15/06)
MSNBC's Norah O'Donnell: "[D]emocratic leader, Harry Reid, of course, in the Senate is under fire for a land deal that netted him $1.1 million." (MSNBC's "MSNBC Live," 10/13/06)
• O'Donnell: "The Philadelphia Enquirer says unless Reid comes up with a better explanation, Democrats should not keep him as their leader. The Washington Post talks about his professions of transparency are transparently wrong, they say. And The Atlanta Journal-Constitution, Reid faces too many questions about his own behavior to crusade against the misdeeds of others." (MSNBC's "MSNBC Live," 10/13/06)
New York Post's Ed Morrissey: "Senate Minority Leader Harry Reid's ethics woes continue to mount. An Associated Press expose shows that Reid pushed through changes in federal law that helped the senator get rich - via complex land deals with a lobbyist who's also tied up in a federal bribery case." (Ed Morrissey, Op-Ed, "Reid's Smelly Windfall," New York Post, 10/16/06)
• Morrissey: "It isn't the first time Harry Reid's ties to real-estate developers have caused people to question the senator's ethics. ... Had the investment been known, voters could have made the connection. The Senate Ethics Committee might have taken an interest as well - except that Harry Reid himself sat as the top Democrat on that panel." (Ed Morrissey, Op-Ed, "Reid's Smelly Windfall," New York Post, 10/16/06)
• Morrissey: "Disclosures now are pointless. The ethics panel needs to order a full investigation not just into the $700,000 profit, but all of Reid's business partners and any legislation or intervention with federal regulators Reid pushed on their behalf." (Ed Morrissey, Op-Ed, "Reid's Smelly Windfall," New York Post, 10/16/06)
Rocky Mountain News: "[T]he House is hardly the only body tainted by ethical issues. ... Senate Democratic leader Harry Reid of Nevada had been involved in an elaborate deal that yielded big profits after land he'd bought was rezoned from residential to commercial so a shopping center could be built. Reid didn't even own the land any more, though on the official disclosure forms he filed with the Senate, he said he did." (Editorial, "Mounting Image Woes For Congress," Rocky Mountain News, 10/14/06)
• Rocky Mountain News: "At the very least Reid appears to have violated Senate disclosure rules in this peculiar, incredibly complicated deal - a deal, moreover, that seems to have minimized his risk and maximized his profit. And this is the man who could become majority leader if the Democrats take back the Senate next month!" (Editorial, "Mounting Image Woes For Congress," Rocky Mountain News, 10/14/06)
Tuscaloosa [AL] News: "Another congressional leader, Nevada Sen. Harry Reid, is facing questions on what has become an all-too familiar charge - a breach of ethics." (Editorial, "Public Deserves Tougher Ethics Laws For Corrupt Congress," Tuscaloosa [AL] News, 10/13/06)
• Tuscaloosa [AL] News: "The allegation in Reid's case is that the he failed to disclose to Congress that he first sold land to a friend's company in 2001. Then he took an ownership stake in the company - again failing to disclose it as legally required - and collected a seven-figure payout when the company sold the land again in 2004. Ethics experts have told the AP that Reid's inaccurate accounting of the 2004 transaction as a personal sale appears to violate Senate ethics rules." (Editorial, "Public Deserves Tougher Ethics Laws For Corrupt Congress," Tuscaloosa [AL] News, 10/13/06)
Houston Chronicle's James T. Campbell: "Just when I thought it was safe to write about something nonpolitical like recipes in the Flavor Section, The Associated Press drops a story last week about Senate Democratic leader Harry Reid possibly violating Senate rules." (James T. Campbell, Op-Ed, "In A Week Of Scandals, Are All Of Them Created Equal?," Houston Chronicle, 10/15/06)
• Campbell: "The Reid story is newsworthy, but involves a complicated allegation. As it continues to evolve it should be considered for Page One." (James T. Campbell, Op-Ed, "In A Week Of Scandals, Are All Of Them Created Equal?," Houston Chronicle, 10/15/06)
The Philadelphia Inquirer: "Unless Reid comes up with a better explanation for this lack of disclosure, Democrats should not keep him as their leader in the new Congress in 2007." (Editorial, "Reid's Land Deal," The Philadelphia Inquirer, 10/13/06)
• The Philadelphia Inquirer: "A lucrative land deal benefiting U.S. Senate minority leader Harry Reid (D., Nev.) deserves full scrutiny by the Senate ethics committee. ... [T]he Senate Democratic leader engaged in a seven-figure handshake and didn't feel the need to disclose all the details. Experts on Senate ethics rules say Reid should have disclosed the sale in 2001 on his annual ethics report, and informed Congress of his part-ownership in Brown's corporation. Reid didn't." (Editorial, "Reid's Land Deal," The Philadelphia Inquirer, 10/13/06)
CNBC's Larry Kudlow: "[W]hat's up with this Harry Reid scandal? Why aren't newspapers playing this on the front pages? Some pundits say he could go to jail. ... [T]he part that's really troubling is ... apparently [Jay] Brown, who has a checkered past, structured the deal so that Senator Reid could transfer his ownership interest to Brown without disclosing it to the public. ... That is potentially a federal crime." (CNBC's "Kudlow & Co.," 10/12/06)
Las Vegas Review-Journal's John L. Smith: "The question is the timing of the land deal itself and its relationship, if any, to the release of other federal land for private development. In theory, such a purchase could be considered something akin to trading with insider knowledge. Reid's influential friends and political allies are often close to those federal land releases." (John L. Smith, Op-Ed, "Timing Is Everything In Harry Reid's Profitable Partnership Deal," Las Vegas Review-Journal, 10/13/06)
Fox News' Megyn Kendall: "[H]arry Reid is under fire, it's all about this land deal he made a few years ago with questions being raised about the Senator's disclosures of the transactions. Now the senate ethics committee is taking a closer look." (Fox News' "Fox News Live," 10/12/06)
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- 10.16.2006
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AP Exclusive: Reid Got $1M in Land Sale
By JOHN SOLOMON and KATHLEEN HENNESSEY
The Associated Press
Wednesday, October 11, 2006
WASHINGTON -- Senate Democratic Leader Harry Reid collected a $1.1 million windfall on a Las Vegas land sale even though he hadn't personally owned the property for three years, property deeds show.
In the process, Reid did not disclose to Congress an earlier sale in which he transferred his land to a company created by a friend and took a financial stake in that company, according to records and interviews.
The Nevada Democrat's deal was engineered by Jay Brown, a longtime friend and former casino lawyer whose name surfaced in a major political bribery trial this summer and in other prior organized crime investigations. He's never been charged with wrongdoing _ except for a 1981 federal securities complaint that was settled out of court.
Land deeds obtained by The Associated Press during a review of Reid's business dealings show:
_The deal began in 1998 when Reid bought undeveloped residential property on Las Vegas' booming outskirts for about $400,000. Reid bought one lot outright, and a second parcel jointly with Brown. One of the sellers was a developer who was benefiting from a government land swap that Reid supported. The seller never talked to Reid.
_In 2001, Reid sold the land for the same price to a limited liability corporation created by Brown. The senator didn't disclose the sale on his annual public ethics report or tell Congress he had any stake in Brown's company. He continued to report to Congress that he personally owned the land.
_After getting local officials to rezone the property for a shopping center, Brown's company sold the land in 2004 to other developers and Reid took $1.1 million of the proceeds, nearly tripling the senator's investment. Reid reported it to Congress as a personal land sale.
The complex dealings allowed Reid to transfer ownership, legal liability and some tax consequences to Brown's company without public knowledge, but still collect a seven-figure payoff nearly three years later.
Reid hung up the phone when questioned about the deal during an AP interview last week.
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Senate ethics rules require lawmakers to disclose on their annual ethics report all transactions involving investment properties _ regardless of profit or loss _ and to report any ownership stake in companies.
Kent Cooper, who oversaw government disclosure reports for federal candidates for two decades in the Federal Election Commission, said Reid's failure to report the 2001 sale and his ties to Brown's company violated Senate rules.
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Stanley Brand, former Democratic chief counsel of the House, said Reid should have disclosed the 2001 sale and that his omission fits a larger culture in Congress where lawmakers aren't following or enforcing their own rules.
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SALE HIDDEN FROM CONGRESS
Reid and his wife, Landra, personally signed the deeds selling their full interest in the property to Brown's company, Patrick Lane LLC, for the same $400,000 they paid in 1998, records show.
Despite the sale, Reid continued to report on his public ethics reports that he personally owned the land until it was sold again in 2004. His disclosure forms to Congress do not mention an interest in Patrick Lane or the company's role in the 2004 sale.
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PROPERTY TAXES LOOSELY HANDLED
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Ethics experts said such informality raises questions about whether any of Brown's tax payments amounted to a benefit for Reid. "It might be a gift," Cooper said.
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FEDERAL LAND SWAPS
Nevada land deeds show Reid and his wife first bought the property in January 1998 in a proposed subdivision created partly with federal lands transferred by the Interior Department to private developers.
Reid's two lots were never owned by the government, but the piece of land joining Reid's property to the street corner _ a key to the shopping center deal _ came from the government in 1994.
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In 1994, Reid wrote a letter with other Nevada lawmakers on behalf of Del Webb, and then met personally with a top federal land official in Nevada. That official claimed in media reports he felt pressured by the senator. Reid denied any pressure.
The next year, Reid collected $18,000 in political donations from Del Webb's political action committee and employees. Del Webb's efforts to get federal land dragged on.
In December 1996, Reid wrote a second letter on behalf of Del Webb, urging Interior to answer the company's concerns. The deal came together in summer and fall 1997, with Perma-Bilt joining in.
In January 1998 _ just days before he bought his land _ Reid applauded the Lake Tahoe land transfers, saying they would create the "gateway to paradise."
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THE REZONING
Clark County intended for the property Reid owned to be used solely for new housing, records show. Just days before Reid sold the parcels to Brown's company, Brown sought permission in May 2001 to rezone the properties so a shopping center could be built.
Career zoning officials objected, saying the request was "inconsistent" with Clark County's master development plan. The town board in Spring Valley, where Reid's property was located, also voted 4-1 to reject the rezoning.
* * *
Before the approval in September 2001, Brown's consultant told commissioners that Reid was involved. "Mr. Brown's partner is Harry Reid, so I think we have people in this community who you can trust to go forward and put a quality project before you," the consultant testified.
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On Jan. 21, 2004, Reid received more than $1.1 million of the sale proceeds. Reid disclosed the money the following year on his Senate ethics report as a personal sale of land, not mentioning Patrick Lane.
A BUSINESS PARTNER'S PAST
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This past summer, federal prosecutors introduced testimony at the bribery trial of former Clark County Commission chairman Dario Herrara that Brown had taken money from a Las Vegas strip club owner to influence the commission. Herrara was convicted of taking kickbacks. Brown was never called as a witness.
© 2006 The Associated Press
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AP - 10.11.2006
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Editorials From Around The Nation Blast "Hang Up Harry's" Shady Land Deal
The Oklahoman: "Will Congressional Democrats Call On U.S. Sen. Harry Reid To Resign?"
"Now That The Shoe's On The Other Foot, Will Congressional Democrats Call On U.S. Sen. Harry Reid To Resign?" "NOW THAT the shoe's on the other foot, will congressional Democrats call on U.S. Sen. Harry Reid to resign? . . . Reid, D-Nev., is accused of failing to account for a business transaction on which he made a $1.1 million windfall. The Associated Press reports that Reid never disclosed that he sold land to a friend's company in 2001 in exchange for an ownership stake in that company."
(Editorial, "Capitol Gains: The Trouble With Harry Is Ethics," The Oklahoman, October 13, 2006)
"House Minority Leader Nancy Pelosi . . . . Should Hunt The Crocs In Her Own Party, Starting With Harry Reid." "Scandal: House Minority Leader Nancy Pelosi wants to 'drain the swamp' after more than a decade of GOP rule. She should hunt the crocs in her own party, starting with Harry Reid."
(Editorial, "Harry Reid: Swamp Thing," Investors Business Daily, October 12, 2006)
The Philadelphia Inquirer: "Unless Reid Comes Up With A Better Explanation . . . Democrats Should Not Keep Him As Their Leader"
"So The Senate Democratic Leader Engaged In A Seven-Figure Handshake And Didn't Feel The Need To Disclose All The Details."
(Editorial, "Reid's Land Deal," Philadelphia Inquirer, October 13, 2006)
"Unless Reid Comes Up With A Better Explanation For This Lack Of Disclosure, Democrats Should Not Keep Him As Their Leader In The New Congress In 2007." "'Americans have been shocked and even disgusted by revelations of corruption in our current system by Republican lobbyists, senior Bush Administration officials, members of Congress, and former congressional staff,' Reid said in March. . . . That's how this case looks, too. Unless Reid comes up with a better explanation for this lack of disclosure, Democrats should not keep him as their leader in the new Congress in 2007."
(Editorial, "Reid's Land Deal," Philadelphia Inquirer, October 13, 2006)
The Washington Post: "Mr. Reid's Professions Of Transparency . . . Are Transparently Wrong"
Either Reid Was Just Sloppy In Reporting His Investment, Or "The Senator's Inaccurate Description Of The Investment Was An Effort To Disguise His Partnership With A Las Vegas Lawyer . . . Whose Name Has Surfaced In Federal Investigations Involving Organized Crime, Casinos And Political Bribery Since The 1980s."
(Editorial, "Mr. Reid's Nondisclosure," The Washington Post, October 13, 2006)
"[E]ither Way, An Associated Press Report About Mr. Reid's Dealings Doesn't Cast The Senator In An Attractive Light."
(Editorial, "Mr. Reid's Nondisclosure," The Washington Post, October 13, 2006)
"'Everything I Did Was Transparent,' Mr. Reid Said At A News Conference Wednesday, After The Story Broke. . . . Mr. Reid's Professions Of Transparency And Full Disclosure Are Transparently Wrong."
(Editorial, "Mr. Reid's Nondisclosure," The Washington Post, October 13, 2006)
Investor's Business Daily: "This Isn't The First Time"
"This Isn't The First Time The Honorable Harry Reid Has Been Caught With His Hands In The Cookie Jar." This isn't the first time the Honorable Harry Reid has been caught with his hands in the cookie jar. We've reported previously on other questionable land deals that have personally benefited him and his family, and where Reid used his political clout on behalf of contributors to benefit himself and his political activities."
(Editorial, "Harry Reid: Swamp Thing," Investors Business Daily, October 12, 2006)
"[W]hen It Comes To Questionable Ethics, Reid Is The Undisputed Heavyweight Champion."
(Editorial, "Harry Reid: Swamp Thing," Investors Business Daily, October 12, 2006)
The Atlanta Journal-Constitution: "Reid Faces Too Many Questions About His Own Behavior To Crusade Against The Misdeeds Of Others"
"Reid Faces Too Many Questions About His Own Behavior To Crusade Against The Misdeeds Of Others." "Senate Democratic leader Harry Reid would be well advised to stop thundering about corruption in the Republican ranks or crying 'cover-up' over the GOP's failure to promptly and appropriately deal with former Rep. Mark Foley (R-Fla.) and his sexually explicit e-mails to congressional pages. Reid faces too many questions about his own behavior to crusade against the misdeeds of others."
(Editorial, "Sen. Reid Should Look In Mirror First," Atlanta Journal-Constitution, October 13, 2006)
"Unfortunately, Reid's Ethics Meter Only Seems To Work When It's Too Late."
(Editorial, "Sen. Reid Should Look In Mirror First," Atlanta Journal-Constitution, October 13, 2006)
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Various Newspapers - 10.13.2006
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1.1 Million Reasons Harry Reid Has Failed Nevada
Las Vegas, NV: State Republican Party Chairman Paul Adams issued the following statement regarding reports that Democratic Senate Minority Leader Harry Reid received $1.1 million for real estate he had not owned for 3 years:
“Today's development is one of the many incidents and questionable associations that reveal Harry Reid's complete inability to avoid the corruption of power. Reid has proven to be a reckless public presence. He has traded Nevada's public trust for a virtual fortune in dirty money, and it won't be forgotten. No politician should compromise the integrity of their office for their own financial gain. Harry Reid clearly has, and he's failed Nevada.”
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Nevada Republican Party - 10.11.2006
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