What is up with this $8.8 million?

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Registered: 08-30-2008
What is up with this $8.8 million?
Wed, 02-25-2009 - 6:47pm
House approves earmarks tied to FBI raids


Wednesday, February 25, 2009 5:15:10 PM

By PETE YOST


The House decided Wednesday to spend $8.8 million on projects sought by 11 businesses and educational institutions represented by a lobbying firm the FBI raided three months ago.


The money was in a $410 billion spending bill that covers a dozen Cabinet departments.


House members use such projects, or earmarks, to direct money to a particular government contractor or business in their district.


In November, FBI searched the lobbying firm PMA Group and the residence of its founder, Paul Magliocchetti, who once worked for the House Appropriations' defense subcommittee. PMA is closing down, and plans to go out of business by the end of March.


Two people, including a lawyer familiar with the raids, said the Justice Department's fraud section is overseeing an investigation into whether PMA reimbursed some employees for campaign contributions to members of Congress who requested the projects. Both people spoke on condition of anonymity because the Justice Department probe is ongoing.


Rep. Jeff Flake, R-Ariz., an opponent of earmarks, requested a House ethics probe of the matter Wednesday. House Democrats turned it down on a mostly party-line vote.


One lawmaker who sought a project for one of the 11 PMA clients was Democratic Rep. Paul Visclosky of Indiana, chairman of the House Appropriations subcommittee on energy and water.


Visclosky received $23,000 in campaign donations from PMA employees around the time he wrote a letter last March seeking money for NuVant Systems Inc. of Crown Point, Ind., which develops and licenses advanced fuel cell components. It was awarded $951,500 in the bill that passed Wednesday.


Visclosky has said he will turn over to the Treasury at least $18,000 in contributions from donors tied to PMA.


Others who requested money for projects on behalf of companies represented by PMA were Democratic Reps. Mike Doyle of Pennsylvania and Tim Ryan of Ohio.


Doyle helped obtain a $1.2 million earmark for PPG Inc. of Pittsburgh to explore solar cell technology. Ryan requested help for AlphaMicron Inc. of Kent, Ohio, for development of liquid crystal technology to reduce energy and utility consumption. The House bill contained $951,500 for Alpha Micron.


Around the time they requested the earmarks, Doyle and Ryan received $8,000 and $4,000 respectively in campaign contributions from PMA employees.


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