Wednesday, April 19, 2006

Sue me

Another Republican money laundering outfit gets a slap on the wrist. But, of course. On and on and on....

Many in the democracy-and-policy world worry about cynicism directed at the US government and American politics in general. The concern is that cynicism-creep leads good people away from careers in government and public service. I have the same concern. Yet, sometimes the corruption becomes so systemic and institutionalized that the institutions themselves breed cynics.
Freddie Mac will pay a record $3.8 million fine to settle civil charges that it violated federal election law by using corporate resources to raise $1.7 million at political fundraisers, most of them for Republican members of Congress and many involving House Financial Services Committee Chairman Michael G. Oxley (R-Ohio).

The agreement with the Federal Election Commission also settles allegations that the company violated election law by contributing $150,000 to the Republican Governors Association in 2002.

The settlement, which Freddie Mac agreed to without admitting or denying it broke the law, stems from an orchestrated effort by the McLean-based mortgage company to court key lawmakers through lavish dinners and other events, the settlement shows. Organized by then-Freddie Mac chief lobbyist Mitchell Delk, the effort pumped money into the campaigns of more than 50 politicians who had direct oversight of the government-chartered company or were considered supportive of it.

In a key part of the settlement, Freddie Mac asked and the FEC agreed to end its investigations of the former executives involved in the fundraising activities, including former chief executive Leland C. Brendsel; Delk; and another former lobbyist, Clarke Camper...

The FEC did, however, issue "admonishment letters" to Brendsel, Delk, Camper and two consulting firms they used to help with more than 70 fundraisers from October 2000 through May 2003. Many involved dinners at the expensive restaurant Galileo, where Delk, one of the highest-paid executives at Freddie Mac, hosted dozens of fundraisers at a cost the FEC said appeared to be a discount.

The letters cautioned the former executives "to take steps to ensure that this activity does not occur in the future." Delk is now a private consultant, Camper works at General Electric Co., and Brendsel is retired.

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