The Politics Of Non-Prosecution? The Case Of Rangel

WSJ’s Opinion Journal carries this editorial today on U.S. Representative and Ways and Means Chairman Charlie Rangel’s various ethical shortcomings related to unreported income on House financial disclosure forms and apparent homestead tax exemption shenanigans. The editorial focuses on Rangel’s hypocrisy in wanting to add an income tax surcharge because “it is the moral thing to do.” But it raises a more important question to me. Who is investigating Rangel for federal criminal violations, and, if not, why not? Apparently Rangel neglected to report over $75,000.00 in rental income over a multi-year period on his House financial disclosure forms. The income is from a Dominican Republic yacht club villa that Rangel owns. The motive may have been Rangel’s need to keep his annual reported income under $175,00.00 to avoid losing his eligibility for his rent-controlled residence in Harlem.

Maybe it it was all a mistake. I really don’t wish a white collar criminal investigation on anyone, but what makes Charlie so special? DOJ has not hesitated to prosecute Congressional staffers and mid-level federal officials for relatively picayune failures to disclose income on their financial disclosure forms. And Rangel’s disclosure problems are not an isolated event. The developer of the yacht club also converted Rangel’s mortgage to an interest free loan. WSJ says that this appears to be a violation of the House ban on gifts. And Rangel apparently listed both DC and Harlem residences as homesteads in order to save on taxes.

Here is a situation where the U.S. Attorney’s Office for the District of Columbia or DOJ’s Public Integrity Unit should already be investigating. Here is a situation where the failure to initiate an investigation is most certainly a political act.

Full disclosure: I represent and have represented witnesses, subjects, and targets in investigations carried out by the Public Integrity Unit. This is not about the line attorneys in that unit. It is about how political the new Administration is going to be in the way that it investigates and does not investigate public corruption in Washington and around the nation. An omission, as well as an indictment, can be a political act.