Rahm Emmanuel's Rent Is Only Part Of His Ethical Debacle

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.

Roland Burris Changes His Story. More Democrat Culture of Corruption and Lies

From Associated Content
Senator Roland Burris conceded Saturday that former Illinois Governor Rod Blagojevich's brother, Rodney Blagojevich, tried to shake him down three times for campaign contributions. This was during the time that Burris was among candidates for appointment to the Illinois Senate seat that became vacant when Barack Obama was elected president.

The Roland Burris revelation adds evidence to allegations that Rod Blagojevich pursued a fraudulent and illegal pay-to-play strategy for the Senate seat. U.S. Attorney Patrick Fitzgerald says he already has evidence on tape, regarding not only the Senate seat but regarding state funds for everything from toll booths to a children's hospital.

Roland Burris also suffers a credibility lapse, because he previously had testified that there were no pay-to-play offers made by Rod Blagojevich or his political team.

A twist of this story is that while Senate Democrats initially tried to fight Rod Blagojevich's appointment of Roland Burris, they needed Burris' vote to pass the $789billion economic stimulus package with a filibuster-proof minimum threshhold of 60 votes. As it was, the Democrats needed to call Ohio Senator Sherrod Brown back to Washington from Brown's home state, where he was attending his mother's wake, of all things. The next option would have been to try to pull Teddy Kennedy from his sick bed.

In other words, Rod Blagojevich apparently was one of the key actors for passage of the economic stimulus package. Is that ironic, or what?

Roland Burris gave testimony in January to a Blagojevich impeachment hearing in the Illinois Senate. Burris testified that he never had pay-to-play conversations, which would have regarded an effort to raise money for Blagojevich in exchange for the U.S. Senate appointment. Patrick Fitzgerald has asserted that Rod Blagojevich, on a taped wiretap, mentioned a desire of sums of $500,000 and $1 million, although Blagojevich did not mention Burris by name.

Another Obama Cabinet Nominee Faces Tax Troubles. This Time Its Health and Human Services' Tom Daschle

Former Senate Majority Leader Tom Daschle, A democrat from South Dakota nominated to be President Obama's secretary of health and human services, has hit a huge snag on his way to confirmation through the Senate Finance Committee.

The controversy deals with a car and driver gifted to Daschle by a wealthy Democratic friend. Daschle used the chauffeur service for years without declaring it on his taxes.

After being defeated in his 2004 re-election campaign to the Senate, Daschle became a consultant and chairman of the executive advisory board at InterMedia Advisors in 2005.

Based in New York City, InterMedia Advisors is a private equity firm founded in part by longtime Daschle friend and Democratic fundraiser Leo Hindery, the former president of the YES network (the New York Yankees' and New Jersey Devils' cable television channel). That very same year he began his professional relationship with InterMedia, Daschle began using the services of Hindery's car and driver.

The Cadillac and driver were never part of Daschle's official compensation package at InterMedia, but Daschle -- who as Senate majority leader enjoyed the use of a car and driver at taxpayer expense -- didn't declare their services on his income taxes, as tax laws specifically require.

During the vetting process to become HHS secretary, Daschle corrected the tax violation, voluntarily paying $101,943 in back taxes plus interest, working with his accountant to amend his tax returns for 2005 through 2007.

(Daschle reimbursed the IRS $31,462 in taxes and interest for tax year 2005; $35,546 for 2006; and $34,935 for 2007, a Daschle spokesperson said, adding that Daschle had asked his accountant to look into the tax implications of the car and driver five months before Obama won the presidency.)

The Daschle spokesperson told ABC News that the senator, facing questions from the committee, has said "he deeply regretted his mistake. When he realized it was a mistake he corrected it rapidly."

His spokesman also added "In June 2008, Sen. Daschle mentioned the use of the car to his personal accountant and asked him if there were any potential tax consequences," the spokesperson said. "His accountant said that there could be tax consequences and said he was going to fix them as part of Daschle's 2008 filing. So when he got down to vetting, Sen. Daschle decided to amend his returns for 2005, 2006 and 2007, and he paid all the taxes. At the urging of Daschle, the accountant was very conservative in his estimates."

Really Tom Daschle?? You have not been paying your taxes since 2005, and 5 months before it looks likely that you will have a new boss and position where your taxes will be looked into, in 2008, you finally ask someone to look into that matter? Tom Daschle, how stupid do you think the American people are?

In the meantime, the White House and Democratic allies are coming to Daschle's defense.

"The president has confidence that Sen. Daschle is the right person to lead the fight for health care reform," White House deputy press secretary Bill Burton said. "In preparation for his nomination, Sen. Daschle and his accountant identified some tax issues and fixed them. They filed amended return with the IRS and made payments with interest. Sen. Daschle brought these issues to the Finance Committee’s attention when he submitted his nomination forms and we are confident the committee is going to schedule a hearing for him very soon and he will be confirmed."

Jim Manley, a spokesman for Senate Majority Leader Harry Reid, D-Nev., added: "Sen. Daschle will be confirmed as secretary of health and human services. He has a long and distinguished career and record in public service and is the best person to help reform health care in this country."

But Republicans have different feelings about the issues.

In a speech to his fellow Republican House members, Rep. Eric Cantor from Virginia, compared Daschle's issue with the tax problems that hindered the confirmation of Treasury Secretary Timothy Geithner and those of Rep. Charles Rangel, D-N.Y., who is embroiled in a controversy over payment of taxes on a beachfront villa in the Dominican Republic.

"A pattern is developing," Cantor said. "The pattern is solidified. ... It's easy for the other side to sit here and advocate higher taxes because -- you know what? -- they don't pay them."

Should Daschle have difficulty being confirmed he doesn't have to worry about finding another job in the administration, since President Obama has also appointed him to serve as director of the new White House Office on Health Reform.

Blagojevich is out!

Illinois Governor Rod Blagojevich has been convicted at his impeachment trial by Illinois state senate and thrown out of office. He now becomes the first U.S. governor in more than 20 years to be removed from office by impeachment.

Blagojevich insisted Thursday he had done nothing wrong and should not be removed from office over criminal charges and complaints about his decisions that could not be proven.

"You haven't proved a crime, and you can't because it didn't happen," Blagojevich said at his Senate impeachment trial. "How can you throw a governor out of office with insufficient and incomplete evidence?"

"The whole world is watching Illinois today, and you know what? I'm tired of it," said Democratic Sen. Terry Link of the Chicago suburb of Waukegan. "You don't know whether to get angry or cry because we've been duped again. You were with the last governor, and we were with this governor," he said, pointing first to Republicans and then to his fellow Democrats.

The two-term Democratic governor spoke for 47 minutes, then smiled and winked at reporters as he passed the press box on his way out of the Senate.

Each senator was given five minutes to speak before the final vote on Blagojevich's fate. Republican Sen. Dale Righter of Mattoon called him "a devious, cynical, crass and corrupt politician."

Senators then voted unanimously to convict Blago, 59-0 and shortly thereafter, Lieutenant Governor Pat Quinn was sworn in as Illinois' new governor.

Governor Bill Richardson Scandal Heating Up As He Withdraws From Obama Cabinet

On December 15, 2008, I published a story about Bill Richardson's "pay-to-play" scheme involving a federal investigation into donations made to California-based CDR Financial Products Inc. The investigation comes after the company made a $75,000 donation to Richardson's campaign and was then rewarded with a $1 billion contract for a transportation system with the state of New Mexico, the state Richardson governs.

It seems the scandal may really be heating up as Richardson has just announced the withdrawal of his name as Secretary of Commerce in Obama's cabinet. Richardson said he is withdrawing because "I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process. Given the gravity of the economic situation the nation is facing, I could not in good conscience ask the president-elect and his administration to delay for one day the important work that needs to be done."

Obama has said about Richardson's withdrawal "Governor Richardson is an outstanding public servant and would have brought to the job of Commerce Secretary and our economic team great insights accumulated through an extraordinary career in federal and state office. It is a measure of his willingness to put the nation first that he has removed himself as a candidate for the Cabinet to avoid any delay in filling this important economic post at this critical time. Although we must move quickly to fill the void left by Governor Richardson's decision, I look forward to his future service to our country and in my administration."


Put the nation first? If this is what Obama thinks is putting the nation first I feel we may be in for a very bumpy 4-8 year ride

Tom Vilsack, Secretary of Agriculture. Yet Another Corrupt "Pay to Player" On Team Obama?

I just saw it pop up on the newswire. Obama taps Vilsack for Secretary of Agriculture. I quickly run to the Google homepage. I type in "Vilsack Corrupt". The first hit I get is this little beaut from MSNBC, entitled IS CLINTON HELPING VILSACK WITH HIS DEBT?, from March of 2007.

It's a priceless little gem that explains that after Vilsack's failed Presidential bid, he was left with mounds of debt. When Vilsack dropped out of the race and endorsed Hillary, Clinton said that she would help him take care of his bills. But being the strong, upstanding, law abiding former Governor that Vilsack is, he said "Thanks but no thanks there, Hil."

Vilsack then goes on to say he is taking out personal loans to pay off his debt, but then goes on to say that he has friend's in the state who are strong Hillary supporters that will help him financially.

Umm. Tom Vilsack. Your confusing me. Personal Loans? Money from the Hill-ster? Or money from your Hill-ster supporting friends?

God I wish politicians could keep their lies straight for more than 10 seconds as not to confuse me so.

Corruption, Politics and the New Administration: Bill Richardson and His "Pay to Play" Scheme.

Read the newest Update on the Richardson Scandal Richardson withdraws from Obama Cabinet

Looks like another political player strongly connected to Barack Obama is playing dirty and for keeps.

New Mexico Governor Bill Richardson, Obama's appointed Secretary of Commerce, is being investigated by a federal grand jury and is being linked to a bond deal scheme that has landed Birmingham, Alabama’s mayor, Larry Langford with federal solicitation charges.

From Bloomberg:

The grand jury in Albuquerque is looking into Beverly Hills, California-based CDR Financial Products Inc., which received almost $1.5 million in fees from the New Mexico Finance Authority in 2004 after donating $100,000 to Richardson’s efforts to register Hispanic and American Indian voters and pay for expenses at the Democratic National Convention in 2004, people familiar with the matter said.

The Federal Bureau of Investigation asked current and former officials from the state agency if any staff members in the governor’s office influenced CDR’s hiring, said the people, who declined to be identified because the proceedings are secret. Richardson, who is President-elect Barack Obama’s designate for Commerce Secretary, has a staff of at least 30 people.

“They’re looking at everything related to CDR,” William Sisneros, the finance agency’s chief executive officer, said of the FBI probe. “They’re just trying to evaluate all the relationships to see what CDR was doing for the money.”

In October 2003, CDR President David Rubin gave $25,000 to Moving America Forward Inc., a political action committee formed by Richardson, disclosure forms show. Seven months later, CDR, known then as Chambers, Dunhill, Rubin & Co., gave $75,000 to ¡Si Se Puede! Boston 2004 Inc., formed to help pay expenses at the 2004 Democratic National Convention in Boston, where Richardson was chairman.

Cooperation Expected

“The Governor’s Office is aware of questions surrounding some financial transactions at the New Mexico Finance Authority,” said Gilbert Gallegos, a spokesman for Richardson. “We expect any state agency that is approached with federal officials” to cooperate, he said, declining to comment further. Calls to Richardson were directed to Gallegos.

Darrin Jones, an FBI spokesman, declined to comment, as did Norman Cairns, a spokesman for the U.S. Attorney’s office in Albuquerque. CDR’s lawyer, Richard Beckler, a partner at Howrey LLP in Washington, declined to comment. Obama spokeswoman Jen Psaki declined to comment.

A member of the agency’s board, Craig Reeves, said he was asked by federal agents about hiring CDR and whether the donations had any role.

‘Many Things Discussed’

“That was one of many things we discussed,” he said, declining to comment on the specific scope of the investigation. He said no one at the governor’s office discussed retaining CDR with him when the decision was made.


I did a quick google search for this story and it seems the only people running this story, besides Bloomberg which broke it, is The Washington Post and the National Review, both decidedly conservative publications. Also our friend Eric Dondero at The Libertarian Republican blog makes mention. God Bless that Dondero.

Patti Blagojevich's Family Runs To Her Defense

The potty-mouthed Patti Blagojevich's, the wife of recently arrested Democratic Illinois Governor Rod Blagojevich, family has come rushing to her aid today after Patty did a smash up job of being caught saying some very unladylike things on Federal prosecutors tapes collected from a wire tapped phone.

From Michelle Malkin:
Prosecutors say the governor plotted to sell President-elect Barack Obama’s vacant Senate seat and he was arrested Tuesday. In the criminal complaint, his wife emerges in recorded phone conversations as scheming to punish those who got in her way.

According to the complaint, it was Patti Blagojevich’s voice in the background spewing a suggestion to “just fire” some newspaper editors if the Tribune Co. hoped for state assistance to sell Wrigley Field, the storied home of the Chicago Cubs.

“Hold up that (expletive) Cubs (expletive),” she says as her husband is talking on the telephone. “(Expletive) them.”

Patti Blagojevich’s family acknowledged the salty language contained on the recordings but said those words were uttered at a stressful time as both she and her husband were under federal scrutiny.

“I can understand it. This a pressure cooker she’s living in,” said Deborah Mell, who will be sworn in as a state representative next month.

Patti Blagojevich, 43, has not been charged with wrongdoing, and she has not spoken publicly since her husband’s arrest.

Patti's sister Deborah Mell told the Chicago Sun Times and NBC, "“That is absolutely not my sister, Patti is a mother, a sister and a devoted wife. She is particularly protective of her family.”

Deborah Mell has got to be f*cking kidding right?!?! I have no problem with people of the potty-mouthed persuasion. I, too, have a bit of a potty mouth problem. My problem lies with the abuse of power, which she really has none of being only first lady, and a problem with taking part in the shakedowns.

I do believe the liberals and Democrats may have their answer to Todd Palin. The liberal media had such a problem with Mr. Palin's interjection in the firing of the Public Safety Commissioner Walt Monegan, now let's hope they have the same "moral fortuitousness" about Mrs. Blagojevich.

Questions Arise About the Governor Rod Blagojevich/Obama Connection

As you all have heard, Illinois Governor Rod Blagojevich was taken into Federal custody today on a slew of corruption charges, the most prominent charge being that he tried to sell President Elect Barack Obama's newly opened senate seat.

When asked for comment today, Obama had this to say "Obviously like the rest of the people of Illinois I am saddened and sobered by the news that came out of the US attorney's office today," said President-elect Obama this afternoon in Chicago, speaking of the criminal complaint against Democratic Gov. Rod Blagojevich for corruption. "But as this is a ongoing investigation involving the governor I don't think it would be appropriate for me to comment on the issue at this time."

And when asked if he had any contact with the Governor about this issue, Obama said "I had no contact with the governor or his office and so we were not, I was not aware of what was happening."

Seems a wee bit confusing because when David Axelrod, Obama's senior adviser, appeared on Fox News on November 23rd, 2008, Axelrod had this to say about Obama's interaction with the Governor " "I know he's talked to the governor and there are a whole range of names many of which have surfaced, and I think he has a fondness for a lot of them."

Today, The Office of The President Elect released a statement saying that Axelrod misspoke on November 23rd. This evening David Axelrod issued a statement of his own. ""I was mistaken when I told an interviewer last month that the President-elect has spoken directly to Governor Blagojevich about the Senate vacancy. They did not then or at any time discuss the subject."

According to Federal Affidavit's, on November 11th, 2008, Blagojevich told an associate that Obama was not going to appoint him to a cabinet position because of the negative press surrounding himself. He then said that he knew Obama had a preference for a specific candidate and that "“they’re not going to give me anything except appreciation. Fuck them."

I'm no Federal Agent, but it would seem to me that if Blagojevich knew Obama had a particular candidate in mind, that there would have to be some kind of contact between them because this was not reported in the press. It would also seem that if Blagojevich knew what that particular candidate was prepared to "offer" him, either Obama offered Blagojevich that information, or Blagojevich had contact with this unnamed candidate, who most likely would relay that information back to the President Elect. Either way, Obama is in up to his knees on this one.

Even more staggering about this Chicago ring of corruption is the fact that Rahm Emmanuel, Obama's newly appointed chief of staff, was also a top advisor of Rod Blagojevich in his gubernatorial race.

But wait! There's more!

You remember the name Tony Rezko right?? That was the guy that sold the family Obama a piece of land at a grossly under priced rate and is now a convicted felon for demanding kickbacks from Chicago politicians for fundraising efforts. Well he is tied into this as well. Rezko raised phenomenal amounts of money for both Blagojevich and Obama. It is known that Obama has already used to his influence to secure a real estate deal for Rezko while he was just a lowly state senator. Rezko was supposedly a right hand man of the corrupt Blagojevich as well.

Obama's defense is, as it always has been, to play it cool and say "Oh wow, Really?? I had no clue that he was such a bad guy! I swear I didn't know anything!". The same defense he used with Ayers, the same defense he used with Reverend Jeremiah Wright and countless others. It makes one wonder, if the President Elect is just one big lying sack, or worse, is he actually stupid and dimwitted enough to have absolutely no idea what kind of corruption is going on right under his nose. If the former is true, we can deal with that. There are legal measures such as impeachment or a recall of the vote. Obama can rot in jail for the rest of his life and that is fine, as long as he stays away from politics. If the later is true, we are in BIG trouble. How can a man that is supposed to be the leader of the free world be so dim and nieve to not see that kind of trouble coming right at him??