FBI widens Lewis probe

Former defense contractor Tom Casey, who accused Rep. Jerry Lewis this week of trying to trade his influence for favors and stock options, is either a subject of the same federal investigation or should be, a former employee said Thursday.

Meanwhile, the FBI has widened its probe of Lewis' ties to lobbyists Copeland Lowery Jacquez Denton & White to include Rep. Ken Calvert, R-Corona.

At the same time federal prosecutors were issuing subpoenas in late May in San Bernardino and Riverside counties, the FBI sent a special agent from its Riverside office to retrieve records of Lewis and Calvert from the basement of the Cannon House Office Building on Capitol Hill, the Roll Call newspaper in Washington, D.C., reported Thursday morning.

Calvert, whose 44th District is home to several Copeland Lowery clients, did not return calls seeking comment Thursday.

In a statement issued earlier, Calvert said, "I assume the FBI is just doing their due diligence in looking at government agencies and officials from our area. I have not been contacted by the FBI."

Lewis, R-Redlands, and Calvert have not been charged with any wrongdoing. Lewis is chairman of the House Appropriations Committee, which oversees about $900 billion in federal outlays.

In San Diego, an engineer who used to work for Casey at Audre Recognition Systems Inc., said Casey violated campaign contribution law in his efforts 13 years ago to gain favor with Lewis and the House appropriations panel.

"If I was the federal government, I'd be investigating him," Dirk Holland said of Casey. "I worked with him six years. He used to encourage employees to make campaign contributions, and the company refunded them. That's illegal ...

"It was always suspicious why a small company like ours, 60 people at most, got so much attention from congressmen. (Randy "Duke") Cunningham, Duncan Hunter (R-Alpine), Jerry Lewis, even Pete Wilson, the governor at the time. They all came to visit."

Casey also landed a $3 million contract through Hunter and General Dynamics that was unusually profitable, Holland said.

"He got the money, but he never delivered any software," Holland said. "There was never an investigation."

Holland worked with Casey in the 1990s when another defense contractor, Brent Wilkes, came to Audre Inc. Wilkes has ties to former Rep. Cunningham, R-San Diego, who was sentenced to eight years in prison in March after he pleaded guilty to accepting $2.4 million in bribes.

Federal officials with the FBI and the Department of Justice would not confirm or deny whether Casey is a subject or a target of any investigation.

NBC Nightly News reported Wednesday evening that Casey has been interviewed by federal investigators.

When Casey sought Lewis' help to gain business with the Pentagon, Casey said in nationally-televised report, Lewis tried to steer Casey to hire Lewis' friend, lobbyist and former congressman Bill Lowery. Casey then said Lewis asked him (Casey) to set up stock options for Lowery in Canada in someone else's name.

Casey never issued the stock options and says he has no proof Lewis did anything illegal, NBC reported.

"It is outrageous and false to suggest that I might have supported a program in order to provide some illicit benefit for a friend," the statement quoted Lewis.

While federal investigators attempt to go quietly about their business in a criminal probe of D.C.-based California lawmakers and deep-pocket lobbyists, elected leaders and influence peddlers are still openly proclaiming mutual admiration for each other.

The 2006 executive committee for California State Society, a social organization that gives parties in the nation's capital, includes representatives for several lawmakers and lobbyists who have gained unwanted attention in recent months.

# Lewis, whose ties to a lobbying firm are a focus of an investigation that grew out of the probe that eventually sent Cunningham to prison.

# Copeland Lowery, the influential K Street (Washington) lobbying firm, whose founder, Lowery, is close friends with Lewis.

# Calvert, whose finances are under investigation in the same federal probe examining ties between Lewis and Copeland Lowery.

# Platinum Advisors, a Sacramento lobbying firm contracted by San Bernardino County. Last year, an independent investigator found Platinum Advisors lobbyist Brett Granlund involved himself in negotiations for the county's $28 million purchase of a privately-owned jail facility. Granlund represented both the buyer of the jail -- the county -- and the seller of the jail -- Terry Moreland of Bakersfield.

# Rep. David Dreier, R-Glendora, a leader of California's 53-member Republican delegation in Congress.

# Sen. Barbara Boxer, D-California, one of the Democratic Party's most outspoken critics of the Bush administration.

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/09/AR2006060901576.html

Lobbying Firm Made Payment to Hill Aide - Lewis Staffer Received Nearly $2 Million

By Charles R. Babcock
Washington Post Staff Writer
Saturday, June 10, 2006; Page A06

A lobbying firm with close ties to Rep. Jerry Lewis (R-Calif.) paid nearly $2 million last year in a separation agreement with a partner who was leaving to become a top aide to Lewis, then the new chairman of the House Appropriations Committee.

Attorneys for Jeffrey S. Shockey, who became the deputy staff director of the committee, told reporters yesterday that the lobbying firm of Copeland Lowery Jacquez Denton & White projected that Shockey would have made $3 million at the firm in 2005 if he had remained a lobbyist. That would have been a 76 percent increase from the $1.7 million he billed clients the year before.

The firm's relationship with Lewis is being scrutinized by federal prosecutors in Los Angeles who issued subpoenas to its clients last month. Lewis has denied any wrongdoing, and Shockey's attorneys said he has not been contacted by federal authorities.

Shockey had reported $600,000 received under the separation agreement last year. It was the first of three payments and the only one he received before he filed an initial financial disclosure statement. The full amount, $1,962,260, is reported on his 2005 disclosure statement. The Copeland Lowery firm specializes in seeking special funding -- or earmarks -- for companies, local governments and nonprofit groups. Shockey does not work on earmarks at the committee, his attorneys said.

(snip)

http://www.flashreport.org/commentary0b.php?postID=2006061011305971&authID=2005081622025042&post_offsetP=0

Earth to Jerry Lewis: Perception Matters

OK - what is wrong with this picture? You are a fat-cat lobbyist with a prominent lobbying firm, that literally specializes in getting federal funds earmarked for the clients of the firm. You have an opportunity to take a senior position for the Chairman of the Committee that his primary jurisdiction over doling out these earmarks, the Appropriations Committee. Do you go? Well, what if your firm gives you a departure bonus of nearly $2 million bucks to make sure you can maintain a lavish lifestyle while in your paltry $100,000+/year job with the government?

Well, this appears to have happenned. Congressman Jerry Lewis (pictured) has a senior staffer working for him who clearly has a huge conflict of interest. I find it laughable to think that this lobbying firm wouldn't receive deferential if not preferential treatment from their 'paid lobbyist working at the committee'.

You have to wonder what Congressman Lewis was thinking when he allowed this staffer to come onboard with this kind of conflict, assuming he knew. Of course he knows now...

It is all made more problematic because one of the principals at this lobbying firm is former Congressman Bill Lowery, who is like best friends with Lewis.

I'm not saying that anything illegal has or is taking place here, although I think the Feds will give Lewis and company a probe-ectomy and sniff that out. But clearly, if nothing else, there is a significant breach of common sense. This looks awful. I'm not sure of all of the ramifications of this, but the fact that this lobbyist with immutable conflicts is STILL working for Lewis tells me that we have a problem.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.