The Lance Sigmon for US Congress Newsletter
Paid for By Sigmon for Congress
Investors Lose Billions, Thousands Lose Homes - While McHenry Pads his WarchestOn Thursday, March 6th, Rep. McHenry and the other members of the Congressional Oversight Committee questioned Countrywide Financial Corp. CEO Angelo Mozilo (and other CEOs) concerning his multi-million dollar salary package as well as the over $120 million he made by selling his personal holdings of the company’s stock justprior to the company’s financial collapse. Under Mr. Mozilo’s management, Countrywide’s stock value has plummeted, stockholders have lost billions, over ten thousand employees have lost their jobs, the stock market has tumbled, and tens of thousands of families have lost their homes. On the following Saturday, the Wall Street Journal reported that the FBI is now investigating Countrywide Financial for securities fraud, checking into whether the company misrepresented its financial state and the condition of its mortgages in its financial filings. This investigation may also involve as many as 15 other subprime mortgage lenders. While other congressman grilled Mr. Mozilo about his excessive compensation, McHenry’s treatment of him during this hearing could only be described as sympathetic and supportive. This should come as no surprise, however, since between 2005 and 2007 McHenry accepted $5000 in campaign contributions from Countrywide Financial and over $160,000 from other Real Estate PACs. In addition, McHenry has received almost $23,000 from Bank of America—which is in the process of acquiring Countrywide. Even though this subcommittee was investigating the possibility of wrongdoing by subprime lenders, McHenry, who has profited from their successes, refused to remove himself from this hearing. (See video transcript on CSPAN.org, “House Oversight and Gov’t Reform Cmte. Hearing on CEO Compensations – Panel 2”) This is yet another example of a “Washington insider” and career politician protecting campaign contributors at the expense of thousands of investors and home owners who now find themselves “out in the cold.” This is why a change is needed in Washington. |
McHenry and the FBI Investigation into NRCCRep. McHenry has been a fundraising workhorse for the National Republican Congressional Committee (NRCC) during his short congressional career—contributing over $160,000 from his own campaign funds (2005-07) to the NRCC—which resulted in his securing a coveted position as Vice-Chair of Fundraising at the beginning of 2007. (See: The Hill, January 31, 2007) On February 6, 2008, Jonathan Adler of the National Review reported that top House Republicans were told that “a former employee of their campaign committee (NRCC) may have forged an official audit during the contentious 2006 election cycle and that they should brace for the possibility that an unfolding investigation could uncover financial improprieties stretching back several years.” This scandal began when Rep. Mike Conaway (R-Texas), a certified public accountant, demanded an audit of the NRCC books. The NRCC treasurer at the time, Christopher Ward, produced a fake internal audit. When the fabricated audit was discovered, the FBI began a criminal investigation into the committee’s accounting procedures. (See: www.politico.com/news/stories/0208/8349.html) According to The Hill, the NRCC has admitted that it is missing $740,000 and that Ward “apparently funneled several hundred thousand dollars to his personal and business bank accounts from the committee’s funds.” McHenry’s FEC disclosures also shows that not only did he contribute to the NRCC while Ward was treasurer, McHenry also has contributed thousands of dollars to several other Republican congressional campaigns for which Ward served in the position of campaign treasurer. Interestingly beginning in April 2007, McHenry retained the services of a high-power DC law firm, Wiley Rein, LLC, for $3,000/month. Wiley Rein is renowned for their expertise in election law and campaign finance. This is yet another example of McHenry, a Washington-insider, being closely associated with questionable activities. |
As noted above, Mr. McHenry has been very successful in raising money during his political career. However, during the 2004 primary, McHenry was quick to point out that his opponent had accepted donations from a beer distributor. McHenry implied that accepting a donation from this particular industry meant that the opponent was not a true conservative and was not upholding the family values they both professed.
However, according to www.opensecrets.org, one of Mr. McHenry’s biggest contributors has been the “Beer, Wine, and Liquor” industry, from which he has received over $50,000 during his congressional career. (See: www.opensecrets.org/politicians/allindus.asp?CID=N00026627)
I find it incredibly hypocritical for McHenry to accept money from the same group that he used to discredit his opponent in 2004. Just another example of his “situational ethics”…
Fiscal Responsibility Begins at Home?
During the 2004 election, Mr. McHenry claimed that his opponent was taking unnecessary trips at taxpayer expense.
Given the fact Mr. McHenry was concerned about the supposed misuse of funds* by others, it may be enlightening to see what he does with some of the money which has been donated to his campaign…
According to www.opensecrets.org, Mr. McHenry has received over $2.9 million in campaign contributions in his short career - and has spent over $2.7 million. Where has some of that money gone?
In 2007, he has spent almost $18,000 at the Grove Park Inn in Asheville (food/beverage/lodging); $3,767 at the Caves Valley Golf Club (food/lodging); $8,846 at the Capitol Hill Club (food/beverage); $3,000 at Johnny’s Half Shell (food/beverage); $5,000 at Mansion on Forsyth; $1,321 at Hilton Hotel; and $2,678 at Sonoma Restaurant (food/beverage).
This small sample of McHenry’s extravagant expenditures clearly demonstrates that our congressman uses poor judgment in his stewardship of other people’s donated money. Why would we believe that he would be a better steward of our tax dollars?
*The misuse of taxpayer’s funds was false, but the story was deliberately used to mislead and deceive voters.
