Yet another chink in the armor of the democratic party's integrity. This is just another scandal piled on to the heap of Democratic scandals that have abounded lately.
NEWS broke last week that White House Chief of Staff, Rahm Emanuel lived rent- free for years in the home of Rep. Rosa De Lauro (D-Conn.). Emmanuel failed to disclose the gift, as congressional ethics rules mandate.
According to Dick Morris and Eileen McGann at The New York Post:
Emanuel is a multimillionaire, but lived for the last five years for free in the tony Capitol Hill townhouse owned by De Lauro and her husband, Democratic pollster Stan Greenberg.
During that time, he also served as chairman of the Democratic Congressional Campaign Committee - which gave Greenberg huge polling contracts. It paid Greenberg's firm $239,996 in 2006 and $317,775 in 2008. (Emanuel's own campaign committee has also paid Greenberg more than $50,000 since 2004.)
Emmanuel never disclosed his gift of a living space on his financial disclosure reports. He and De Lauro claim that it was just allowable "hospitality" between colleagues. Many argue that this housing should count as taxable income. The estimated worth of his housing was $100,000.
Then there is also the question of Rahm Emmanuel's service on the board of Freddie Mac. Emanuel served on the Freddie Mac board of directors during the time that the government-backed lender lied about its earnings, a leading contributor to the current economic meltdown.
The Federal Housing Enterprise Oversight Agency later singled out the Freddie Mac board as contributing to the fraud in 2000 and 2001 for "failing in its duty to follow up on matters brought to its attention." In other words, board members ignored the red flags waving in their faces.
The SEC later fined Freddie $50 million for its deliberate fraud in 2000, 2001 and 2002.