LA Times
A Donor Who Had Big Allies
DeLay and two others helped put the brakes on a federal probe of a businessman. Evidenc s published in the Congressional Record.
By Richard A. Serrano and Stephen Braun
Times Staff Writers
January 8, 2006
WASHINGTON — In a case that echoes the Jack Abramoff influence-peddling scandal, two Northern California Republican congressmen used their official positions to try to stop a federal investigation of a wealthy Texas businessman who provided them with political contributions.
Reps. John T. Doolittle and Richard W. Pombo joined forces with former House Majority Leader Tom DeLay of Texas to oppose an investigation by federal banking regulators into the affairs of Houston millionaire Charles Hurwitz, documents recently obtained by The Times show. The Federal Deposit Insurance Corp. was seeking $300 million from Hurwitz for his role in the collapse of a Texas savings and loan that cost taxpayers $1.6 billion. The investigation was ultimately dropped. The effort to help Hurwitz began in 1999 when DeLay wrote a letter to the chairman of the FDIC denouncing the investigation of Hurwitz as a "form of harassment and deceit on the part of government employees." When the FDIC persisted, Doolittle and Pombo — both considered proteges of DeLay — used their power as members of the House Resources Committee to subpoena the agency's confidential records on the case, including details of the evidence FDIC investigators had compiled on Hurwitz.
Then, in 2001, the two congressmen inserted many of the sensitive documents into the Congressional Record, making them public and accessible to Hurwitz's lawyers, a move that FDIC officials said damaged the government's ability to pursue the banker. The FDIC's chief spokesman characterized what Doolittle and Pombo did as "a seamy abuse of the legislative process." But soon afterward, in 2002, the FDIC dropped its case against Hurwitz, who had owned a controlling interest in the United Savings Assn. of Texas. United Savings' failure was one of the worst of the S&L debacles in the 1980s.
Doolittle and Pombo did not respond to requests for interviews last week. They publicly defended Hurwitz at the time, saying the inquiry was unfair. Hurwitz's lawyer said Friday that the FDIC had been overzealous. This summer, a judge in Texas agreed and awarded Hurwitz attorney fees and other costs in a civil suit he filed. "They sought to humiliate him," U.S. District Judge Lynn N. Hughes, said in the ruling. The government is appealing the decision. In key aspects, the Hurwitz case follows the pattern of the Abramoff scandal: members of Congress using their offices to do favors for a politically well-connected individual who, in turn, supplies them with campaign funds. Although Washington politicians frequently try to help important constituents and contributors, it is unusual for members of Congress to take direct steps to stymie an ongoing investigation by an agency such as the FDIC.
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http://www.latimes.com/news/nationworld/nation/la-na-banker8jan08,0,1764103.story?coll=la-home-headlines&track=morenewsI hate hate hate Pombo. Here's hoping this takes him down.
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