Rep. Renzi indicted over Arizona land deal Dennis Wagner The Arizona Republic Feb. 22, 2008 12:44 PM After nearly two years of public controversy and speculation, U.S. Rep. Rick Renzi of Arizona faces indictment on 35 charges of extortion, wire fraud, conspiracy, embezzlement and other crimes. The criminal counts, handed down Thursday by a federal grand jury in Tucson and unveiled today, stem from a tangle of fraud allegations involving the Republican congressman's business dealings, campaign finances and legislative conduct. If convicted, Renzi, 48, could be sentenced to up to 20 years in prison on the most serious counts, plus fines of $250,000. A business associate, Texas real estate investor James W. Sandlin, 56,faces 27 criminal charges. Another associate, Maryland attorney Andrew Beardall, 36, is charged with four offenses. Diane Humetewa, U.S. Attorney for Arizona, said all three men will be served summonses to appear at a March 6 U.S. District Court arraignment in Tucson. In a written statement released today, Renzi's attorneys in Washington, D.C., denied that he did anything wrong, adding, ¡§We will fight these charges until he is vindicated and his family's name is restored. "We fear that the Department of Justice may have allowed the investigation to have been influenced by political considerations, which should never have a place in the administration of justice," adds the statement from attorneys Kelly B. Kramer and Reid H. Weingarten. Contacted at his Virginia home () last night, hours after attending his father's funeral, Renzi said he was unaware that an indictment had been handed down. Friday's written statement criticized the Department of Justice for not allowing Renzi enough time to mourn the death of his father, Maj. Gen. Eugene Renzi, who was buried at Arlington National Cemetery Thursday. During a Phoenix news conference this morning, Humetewa said Renzi had made not a statement to FBI agents or prosecutors. According to court papers, the congressman was a central figure in two, separate criminal conspiracies. In one, he is accused of manipulating a federal land exchange to financially benefit himself and Sandlin, a former business partner who owed him money. In the other, he allegedly looted cash from his insurance company's trust fund to help finance his first election campaign, then attempted a cover-up with Beardall's assistance. Humetewa said the allegations suggest that Renzi "betrayed the trust of the citizens of Arizona" by misusing his public office. Renzi, first elected to the sprawling 1st Congressional District in 2002, is serving his third term. Amid rumors and political fallout from the investigation in April, he gave up his important seats on the House's Intelligence, Natural Resources and Financial Services committees. He also announced that he would not seek re-election. The investigation was conducted by the FBI, the Internal Revenue Service and the U.S. Attorney's office in collaboration with the Justice Department's Office of Public Integrity in Washington, D.C. Amy Hess, special agent in charge for the FBI in Tucson, said agents put in more than 25,000 hours during the probe, which began with a tip in June 2005. ¡§Illegal activities purported by our public officials ¡K impact the very core of how our society is supposed to function,¡¨ Hess added. Allegations about the land-exchange deal involve a labyrinth of business transactions between Renzi and his former partner, Sandlin. According to the indictment, the two men acquired real estate together in Kingman. In 2003, court papers say, Sandlin bought out Renzi's interest for $1 million, paying $200,000ƒ¤ down and signing a promissory note for the remaining $800,000. Two years later, at a time when Sandlin still owed $700,000, Renzi attempted to manipulate a federal land exchange by forcing participants to include property owned by Sandlin, the indictment says. In his official capacity as a congressman, the indictment adds, Renzi told representatives from two different companies that he would not support the transactions unless Sandlin's land was included. In addition to extortion, Renzi is accused of concealing Sandlin's debt to him from Congress and failing to include it in financial disclosure statements. Renzi and Sandlin also are charged with money-laundering in connection with the use of funds obtained through criminal conduct. The indictment involving Renzi's family business stems from efforts to finance his election campaign in 2001 and 2002. According to the indictment, Renzi embezzled more than $400,000ƒ¤ in insurance premiums from a trust at Patriot Insurance Agency Inc. in Santa Cruz County. He and Beardall are accused of making false statements to authorities and committing fraud in an attempt to conceal the theft. News leaks about the investigation months ago helped fuel a partisan furor about the dismissal of Paul Charlton as U.S. attorney for Arizona. Some in Congress suggested that Charlton was ordered to resign by the Bush administration because he was investigating a Republican supporter of the president. Others complained that the case was being stonewalled or squelched for political reasons. Humetewa and Peter Ainsworth, senior deputy chief of the Justice Department's Public Integrity Section, declined comment on those issues during Friday's news conference. However, Humetewa lauded the work of FBI and IRS agents, adding, "This indictment demonstrates a commitment by the Department of Justice to root out public corruption wherever it is found." Charlton, who oversaw much of the investigation, declined to talk about politicization of the case, which remains under review by the Justice Department's Inspector General. "We will know someday what happened," Charlton said, adding, "I think you can't help but feel disappointment any time an official of this rank is indicted on these types of charges." Reporter Robert Anglen contributed to this story. ------------------------- This guy represents my district. He should have been voted out of office in '06, but his opponent (a brother of Bruce Babbitt) ran a weak campaign.
Do people like this honestly think they can get away with ongoing crime like this forever without getting caught? It amazes me, because they are obviously smart people.
He still has a lot of support in Flagstaff and on the reservations because he "brought home the bacon".
