Top Dem on House Ethics Committee Steps Down

Alan Mollohan (D-WV), the top Dem on the House ethics committee, is stepping down amid a financial controversy in which Mollohan is accused of steering millions to non-profit organizations in his district that donated to his campaign.

The top Democrat on the House ethics committee, Alan Mollohan, will leave the panel _ at least temporarily _ while he defends his own financial conduct, Democratic leader Nancy Pelosi said Friday.

Mollohan’s decision comes in an election year when his party is accusing majority Republicans of allowing a “culture of corruption” in Congress.

Mollohan, of West Virginia, will be replaced by Rep. Howard Berman of California, a former ranking Democrat on the panel. Mollohan has denied any wrongdoing.

The only evenly divided panel in the House, the Committee on Standards of Official Conduct has been divided along partisan lines for the past 16 months and unable to launch any major new investigations. If Mollohan had stayed while under his own ethics cloud, the chances for the stalemate to end would have been almost impossible.

The Wall Street Journal reported two weeks ago that Mollohan steered millions of dollars to nonprofit groups in his district _ with much of the money going to organizations run by people who contribute to the lawmaker’s campaigns.

Also, a conservative group filed a complaint with federal prosecutors this year questioning whether Mollohan correctly reported his assets on financial disclosure forms.

While Mollohan’s troubles threaten to become a major campaign problem for Democrats, Pelosi, of California, said in a statement that Mollohan decided on his own to step down and that she accepted his decision.

National Legal and Policy Center investigated Mollohan’s finances and found the following:

For the period 1996 through 2004, NLPC found that the Financial Disclosure Reports:

• repeatedly failed to disclose real estate assets which public records showed were owned by Mollohan and his wife

• repeatedly failed to disclose financial assets which public records showed were owned by Mollohan and his wife

• repeatedly failed to disclose major loans which were used in the acquisition of financial assets which were not being disclosed

• failed to disclose interests in companies which owned major assets

• grossly undervalued assets, giving purported valuations which were a small fraction of the assets’ true value

After Pelosi has spent months on her high horse lecturing the country about the Republicans’ so called “culture of corruption,” she can’t be too pleased that a member of her own party has his own issues with corruption.

Update: A reader reminds us of Rep. Pelosi’s issues with corruption just a couple of years ago.

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