Tuesday, October 25, 2011

Historians of the future may look back and describe the Obama stimulus package as the "Great Swindle."

Where did that $1 trillion go?

According to Roll Call, the "conscience of Congress, Rep. John Murtha (D-Pa) put the corrupt in "corruption."

Last week’s release of FBI documents finally put in writing what nobody had ever said on the record: The FBI suspected that former Rep. John Murtha (D-Pa.) and lobbyists close to him were running a scheme to funnel earmarks to sham companies and nonprofits to benefit the lawmaker’s friends and former staffers.


Bits and pieces of this story were kicked around for years before Murtha died in February 2010. The Los Angeles Times, Roll Call, the Washington Post and others had documented the odd appearance of earmarks for tiny defense contractors that just happened to open an office in western Pennsylvania and just happened to hire one of the lobbying firms close to Murtha and just happened to begin making campaign donations to Murtha and other Members of Congress close to him.

Reporters could do little but assemble the coincidences and couldn’t prove there was anything wrong with the bigger picture.

But it turns out the FBI was reading the stories and was very interested — interested enough that the Justice Department had opened a criminal investigation into Murtha and some of the lobbyists in his orbit, a fact that never leaked while Murtha was alive
And:

Federal agents had begun investigating Murtha in 2007 upon hearing allegations that the PMA Group, a lobbying firm run by former defense appropriations staffer Paul Magliocchetti, had paid for Murtha to have a driver. The PMA Group was raided by the FBI in February 2008, and the firm shut down the following year. Magliocchetti is serving a 27-month prison sentence for running a scheme to reimburse friends, family members and colleagues for hundreds of thousands of dollars worth of campaign contributions to Murtha and other Members of Congress.


The FBI investigation also suggested that a staff member in Murtha’s office may have failed to disclose thousands of dollars in income and assets on her annual financial disclosure forms; that money from Murtha’s campaign fund may have been used to buy guns for the personal use of another Murtha staffer; that Murtha may have steered contracts and earmarks to other family members; that staff members may have violated the one-year ban on lobbying Murtha’s office after leaving his employ; and that KSA may have run a fraudulent political action committee.

There is no evidence in the released documents that the FBI pursed any of these cases.

Sloan of CREW said the FBI files prove a long-sought point: “It was as bad as we said it was. It wasn’t nothing; it wasn’t OK.”

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