The Rangel Round-Up

For those of you keeping score, Charles Rangel has become to Washington, D.C. and Harlem what Kwame Kilpatrick was to Detroit during his mayoral days there.  You just didn’t know from day to day what new charges of ethical and/or legal lapses would emerge.  So, The Barometer begins the Rangel Round-Up.  The Barometer will attempt to keep you posted on what’s happening with the representative from Harlem (D., NY).  The Barometer is considering a National Forest Service type of posting:  “Ethical Breach Danger Today:  High       Medium      Low.”  Here’s a Rangel summary:  1.  In rent-controlled NYC, Rangel managed to wrangle several apartments from his landlord at the rock-bottom prices that characterize rent-control markets.  When asked about his cornering of the Harlem real estate, Rep. Rangel responded, “What?  There’s a problem here?” 2.  Rep. Rangel, who chairs the House Ways and Means Committee, the group responsible for writing the tax code, failed to report income he earned over two decades from renting his villa in the Dominican Republic. Rangel responded in several ways, “No hablo espanol,” was one defense, followed by  the defense that he didn’t understand the terms of his mortgage or that the rent had to be reported.  Write into the tax code the defenses of “I forgot” and “I was confused,” and we shall forgive and forget the Rangel shortcomings.  3.  The Charles Rangel School of Public Service at City College of New York received a $1 million donation from the CEO of an oil drilling firm at about the same time Chairman Rangel was ushering through the preservation of a lucrative tax loophole for the CEO’s offshore company.  Three years earlier, Mr. Rangel had proposed closing the offshore loophole in order to collect more taxes from off-shore companies.  Mr. Rangel said that there was no quid pro quo.  Mr. Rangel disclosed that he had used House stationery to solicit donations to the college from executives and others, including the oil-drilling CEO.  4.  Rep. Rangel paid $57,500 to his son’s Web-design company over a two-year period.  The funds came from a campaign account held by Mr. Rangel and were paid to Edisonian Innovative Works LLC, a company owned by Steven Charles Rangel and operated out of his Maryland home.  Rep. Rangel lives with his son at the Maryland home when the House is in session.  The payments stopped when Steven Rangel was hired by the House Energy and Commerce Committee in January 2007.  The payments were the largest spent on Web design by any member of the House.  Rep. Rangel said he did nothing wrong, but will amend his disclosure statements to disclose that Edisonian is owned by his son.  A source said of Steven Rangel’s 2007 job at the House, “How does anyone get any gig on Capitol Hill?  It’s who you know.” Rep. Rangel has hired a forensic auditor to review his financial disclosure records. Rep. Rangel said that the auditors would find no forensics in his disclosures, that he is clean as a whistle and does not accept forensics for votes.  5.  Rep. Rangel received a homestead exemption for property he owned in Washington, D.C. even as he resided in the four rent-subsidized apartments in New York City. Rep. Rangel responded that where he lives is a “personal issue,” and is not subject to a House ethics review now expedited by Speaker Pelosi. The Barometer asks, “Is this any way to run a government that is flat-broke?” 

About mmjdiary

Professor Marianne Jennings is an emeritus professor of legal and ethical studies from the W.P. Carey School of Business at Arizona State University, retiring in 2011 after 35 years of teaching undergraduate and graduate courses in ethics and the legal environment of business. During her tenure at ASU, she served as director of the Joan and David Lincoln Center for Applied Ethics from 1995-1999. In 2006, she was appointed faculty director for the W.P. Carey Executive MBA Program. She has done consulting work for businesses and professional groups including AICPA, Boeing, Dial Corporation, Edward Jones, Mattel, Motorola, CFA Institute, Southern California Edison, the Institute of Internal Auditors, AIMR, DuPont, AES, Blue Cross Blue Shield, Motorola, Hy-Vee Foods, IBM, Bell Helicopter, Amgen, Raytheon, and VIAD. The sixth edition of her textbook, Case Studies in Business Ethics, was published in February 2011. The ninth edition of her textbook, Business: lts Legal, Ethical and Global Environment was published in January 2011. The 23rd edition of her book, Business Law: Principles and Cases, will be published in January 2013. The tenth edition of her book, Real Estate Law, will also be published in January 2013. Her book, A Business Tale: A Story of Ethics, Choices, Success, and a Very Large Rabbit, a fable about business ethics, was chosen by Library Journal in 2004 as its business book of the year. A Business Tale was also a finalist for two other literary awards for 2004. In 2000 her book on corporate governance was published by the New York Times MBA Pocket Series. Her book on long-term success, Building a Business Through Good Times and Bad: Lessons from Fifteen Companies, Each With a Century of Dividends, was published in October 2002 and has been used by Booz, Allen, Hamilton for its work on business longevity. Her latest book, The Seven Signs of Ethical Collapse was published by St. Martin’s Press in July 2006 and has been a finalist for two book awards. Her weekly columns are syndicated around the country, and her work has appeared in the Wall Street Journal, the Chicago Tribune, the New York Times, Washington Post, and the Reader's Digest. A collection of her essays, Nobody Fixes Real Carrot Sticks Anymore, first published in 1994 is still being published. She has been a commentator on business issues on All Things Considered for National Public Radio. She has served on four boards of directors, including Arizona Public Service (1987-2000), Zealous Capital Corporation, and the Center for Children with Chronic Illness and Disability at the University of Minnesota. She was appointed to the board of advisors for the Institute of Nuclear Power Operators in 2004 and served on the board of trustees for Think Arizona, a public policy think tank. She has appeared on CNBC, CBS This Morning, the Today Show, and CBS Evening News. In 2010 she was named one of the Top 100 Thought Leaders in Business Ethics by Trust Across America. Her books have been translated into four different languages. She received the British Emerald award for authoring one of their top 50 articles in management publications, chosen from over 15,000 articles. Personal: Married since 1976 to Terry H. Jennings, Maricopa County Attorney’s Office Deputy County Attorney; five children: Sarah, Sam, and John, and the late Claire and Hannah Jennings.
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