Is there any limit to your tolerance for corruption from the members of your party? Your people have won this contest hands down. Aren't you ever just a teeny weeny bit disgusted by it all?
Arizona Congressman Is Indicted
By JOHN R. WILKE
February 22, 2008 1:50 p.m.
WASHINGTON -- Rep. Rick Renzi was indicted in Phoenix on felony counts of fraud, conspiracy, money laundering and extortion in connection with alleged kickbacks and land deals that the Arizona Republican tried to link to federal legislation.
The investigation began in 2006 after a local developer complained that Mr. Renzi pressed him to buy land near Sierra Vista, Ariz., owned by a business partner, and a former staff member of the congressman began cooperating with the Federal Bureau of Investigation. A secret payment of $200,000 linked to these land deals was disclosed in a Wall Street Journal article last April that also reported that Mr. Renzi had pressured copper-mining executives and others in exchange for federal land-swap legislation.
The 35-count indictment charges money laundering for the alleged concealment of $733,000, including the $200,000 payment made through the wine company; embezzlement from the family insurance business, including funds used in his congressional election campaigns; and extortion, in connection with his offer of federal land-swap legislation in exchange for the purchase of the business partner's land. The former partner, James W. Sandlin, was also indicted, along with a third associate, Andrew Beardall.
Mr. Renzi is one of at least a half-dozen current and former members of Congress of both political parties now under federal criminal investigation. Two former congressmen, Bob Ney of Ohio and Randy "Duke" Cunningham of California, both Republicans, are currently serving time in prison for corruption.
In a statement, the Justice Department said that convictions for public corruption wire fraud and extortion each carry penalties of up to 20 years in prison, a $250,000 fine or both, convictions for a money laundering conspiracy and concealment money laundering each carry a maximum penalty of 20 years in prison, a fine of $500,000 or twice the value of the money at stake, or both. Mr. Renzi also faces additional prison time and fines for the alleged conspiracy, money laundering and insurance charges, the department said.
Mr. Renzi's congressional office referred calls to his attorney, Reid Weingarten, who didn't immediately respond to requests for comment.
Write to John R. Wilke at john.wilke@wsj.com
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