Rep. Rick Renzi (R-AZ)

UPDATE:
On February 22, 2008, Rep. Rick Renzi (R-AZ) was indicted on charges of conspiracy, wire fraud, money laundering, extortion and insurance fraud.

UPDATE:
Rep. Rick Renzi (R-AZ) announced on August 24, 2007 that he would retire at the end of his term in January 2009.

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Rep. Rick Renzi (R-AZ) is a third-term member of Congress, representing Arizona’s 1st congressional district. Rep. Renzi’s ethics issues stem from assistance he offered to a former business partner and legislation he sponsored that benefitted his father’s employer. Rep. Renzi was included in CREW’s 2006 report on congressional corruption.

Suspect Land Deal

Just before Rep. Renzi’s reelection in 2006, federal authorities began investigating whether Rep. Renzi used his position as a member of Congress to promote the sale of land owned by his former business partner, James Sandlin. In 2005, mining company Resolution Copper sought to mine for copper in Superior, Arizona. Before mining could commence however, Resolution needed Congress to approve a land swap. Rep. Renzi agreed to support the land exchange bill if, as part of the swap, Resolution bought a 480 acre alfalfa field in his hometown owned by Mr. Sandlin. When Resolution Copper refused the deal, Rep. Renzi solicited the Petrified Forest Group to purchase the land for $4 million. Rep. Renzi assured the group that he would make sure that the swap got through the Natural Resources Committee. After the purchase, Resolution Copper complained that Petrified Forest had received priority treatment and Rep. Renzi dropped his support for the land swap.

Federal authorities are investigating whether a $200,000 payment Mr. Sandlin made in May 2005 to Rep. Renzi is connected to the land deal. The payment was made the same day that Mr. Sandlin received the first payment from the Petrified Forest Group and went to a wine company owned by Rep. Renzi. A few days later, the wine company was sold to Rep. Renzi’s father. Rep. Renzi has claimed that Mr. Sandlin paid the $200,000 to settle a debt stemming from a previous business transaction, although the payment was not noted on Rep. Renzi’s 2005 financial disclosure statement. The suggestion is that the payment may have been transacted through the wine company to avoid disclosure.

On April 19, 2007, Rep. Renzi’s business offices were raided by FBI agents.

Rep. Renzi Sponsored Legislation Financially Benefitting His Father

Federal authorities in Arizona have opened an investigation into whether Rep. Renzi violated any laws by sponsoring legislation that benefitted his father’s employer, ManTech International Corp. In 2003, Rep. Renzi sponsored legislation (signed into law in November 2003) that earmarked hundreds of millions of dollars to his father’s business while, according to environmentalists, devastating the San Pedro River. Rep. Renzi claimed he introduced the measure to prevent the closing of the Fort and to promote its enlargement. Notably, neither the fort nor the river is located in Rep. Renzi’s district.

A key beneficiary of Rep. Renzi’s legislation was ManTech, a Fairfax, Virginia based defense contractor where Rep. Renzi’s father, Retired Major General Eugene Renzi, is an executive vice president. ManTech had $467 million in contracts at Fort Huachuca with options for an additional $1.1 billion between 2004 through 2008. In addition, the company was the largest contributor to Renzi’s 2002 congressional campaign and the second largest in his 2004 campaign.

By using his position as a member of Congress to push Resolution Copper and the Petrified Forest Group to purchase land from Mr. Sandlin in exchange for legislative assistance, and by receiving $200,000 from Mr. Sandlin in return for that assistance, Rep. Renzi likely deprived his constituents, the House of Representatives, and the United States of his honest services.

By using his position as a member of Congress to push legislation that would benefit ManTech and therefore his father, Rep. Renzi may be depriving his constituents, the House of Representatives, and the United States of his honest services.

DOWNLOAD THE FULL REPORT ON REP. RICK RENZI (R-AZ)