Charlie Rangel -- 'Statement of Facts in Support of Alleged Violations' -- the Compleat Text (Part Deux)

4. Pursnant to House Rule X, cl. 1(1)(8), the House Ways and Means Committee has jurisdiction over tax exempt foundations and charitable trusts.

5. Pursuant to House Rule X, cl. 1(t)(2), the House Ways and Means Committee has jurisdiction over reciprocal trade agreements.

6. Pursuant to House Rule X, cl. 1(t)(3), the House Ways and Means Committee has jurisdiction over revenue measures generally.

7. During the relevant period, issues before Congress affecting foundations included, inter alia, private foundation payout rules, excise tax rates on investment income, potential caps on foundation executive pay, IRA charitable rollover provisions, unrelated business income tax, and other charitable contribution and charitable governance issues.

8. During the relevant period, Nabors Industries lobbied members of the House of Representatives on tax issues, including retroactivity of corporate inversion tax treatment.

9. During the relevant period, Verizon lobbied members of the House of Representatives on numerous Issues, including, inter alia, tax Issues related to telecommunications.

10. During the relevant period, AIG lobbied members of the House of Representatives on numerous issues including, inter alia, subpart F of the Internal Revenue Code, treatment ofincome received by partners for perfol1ning investment management services, treahnent of mortgage insurance premiums as interest, deferral of income on executives' domestic income, and several treaty and free trade agreement issues.

11. During the relevant period, New York Life Insurance Company lobbied members of Congress on numerous issues including, inter alia, intemational trade agreements, tax treatment of long term care insurance, tax treatment of estate assets and lifetime aI111uities, tax on insurance products, aI1d executive compensation.

II. FINANCIAL DISCLOSURE STATEMENTS AND AMENDMENTS FILED IN CALENDAR YEAR 2009 BY OR ON BEHALF OF REPRESENTATIVE CHARLES B. RANGEL

93. Respondent filed an annual Financial Disclosure statement for calendar year 1998 on May 17,1999.

94. Respondent filed an almual Financial Disclosure statement for calendar year 1999 on May 26, 2000.

95. Respondent filed an almual Financial Disclosure statement for calendal' year 2000 on May 16,2001.

96. Respondent submitted a letter, dated June 5, 2001, amending his Financial Disclosure statement for calendar year 2000.

97. Respondent filed an annual Financial Disclosure statement for calendar year 2001 on May 15, 2002.

98. Respondent filed an almual Financial Disclosure statement for calendar year 2002 on May 14, 2003.

99. Respondent filed an annual Final1cial Disclosure statement for calendar year 2003 on May 13, 2004.

100. Respondent filed an almual Final1cial Disclosure statement for calendar year 2004 on June 15, 2005. Respondent was graJ1ted aJ1 extension to file his Financial Disclosure statement for calendar year 2004 beyond the May 16, 2005 deadline, and filed within that extended deadline.

101. Respondent filed an amendment to his FinaJ1cial Disclosure statement for calendar year 2004 on May 12, 2006.

102. Respondent filed all annual Financial Disclosure statement for calendar year 2005 on May 12, 2006.

1. Respondent filed an atumal Financial Disclosure statement for calendar year 2006 on June 15, 2007. Respondent was granted an extension to file his Financial Disclosure statement for calendar year 2006 beyond the May 15, 2007 deadline, atld filed within that extended deadline.

2. Respondent filed an atnendment to his Financial Disclosure statement for the calendar year 2006 on December 26,2007.

3. Respondent filed an annual Financial Disclosure statement for calendar year 2007 on May 14, 2008.

4. Respondent filed an annual Financial Disclosure statement for calendar year 2008 on August 12, 2009. Respondent was granted an extension to file his Financial Disclosure statement for calendat' year 2008 beyond the May 15, 2009 deadline, and filed within that extended deadline.

5. Respondent's Financial Disclosure statements contained numerous errors and omissions, including failure to disclose rental and other unearned income, understating rental income and other unearned income, failure to disclose earned income, failure to disclose tratlsactions, failure to disclose cancellation of debt income, and failure to disclose a reportable position.

6. Respondent's Financial Disclosure statements were prepared by members of his congressional staff.

109. Respondent personally signed each ofhis Financial Disclosure statements.

11 O. Respondent failed to ensure that the infonnation repOlied on the Financial Disclosure Statements was accurate or complete.

111. Respondent filed amended Financial Disclosure statements for each of calendar years 1998 through 2007 on August 12, 2009.

112. Respondent personally signed each of his amended Financial Disclosure statements.
113. Respondent owned a brownstone rental unit, located at 74 West 132nd Street in New York ("Brownstone"). The Brownstone was sold in 2004.

1. Respondent disclosed ownership of the Brownstone on his original Financial Disclosure Statements for the calendar years 1998 through 2004.

2. Respondent failed to disclose his rental income from the Brownstone on his original Financial Disclosure Statements for calendar years 1998, 1999,2000, and 2004.

3. For Respondent's original Financial Disclosure statements related to calendar years 1998 and 1999, the box for "none" under "amount of rental income" was checked. For calendar year 2000, the boxes under amount of rental income were left blank.

4. Respondent's original Financial Disclosure statements for calendar years 2001, 2002, and 2003 each listed the amount of income derived from the Brownstone rental in the range of $2,501 -$5,000.

5. Respondent's original Federal tax returns reported income from the Brownstone rental as follows:

Brownstone - Original Tax Returns
1998 $29,852
1999 $20,449
2000 $28,938
2001 $21,416
2002 $19,603
2003 $23,036
2004 $3,406

119. Respondent purchased a rental villa at the Punta Cana Yacht Club in the

Dominican Republic in March 1987. The purchase price of the Punta Cana villa was $82,750. Respondent made a down payment of $28,962.50, and financed the remaining portion of the purchase price.

1. Respondent financed the purchase through a mortgage. The mortgage was payable over 7 years at 10.5% interest.

2. Respondent repOlied the purchase of the Pmlta Cana villa on his initial Financial Disclosure statement for calendar year 1987, although he assigned an incorrect value to the property. Respondent submitted an amendment to that Financial Disclosure statement on June 10, 1988, re-categorizing the purchase.

3. Respondent issued a statement on Febrnary 2, 1989, regarding the incorrect valuation on his original Financial Disclosure statement for the Punta Cana villa, as well as the associated mortgage and distribution from his retirement account used to finance the down payment. Respondent stated that he "amended my Financial Disclosure to include these items as soon as the oversight was brought to my attention."

4. Respondent received income from a Punta Cana rental pool. The rental pool was detennined by taking all revenues fi'om the gross rentals of all the units. From that amount, deductions were made for agent commissions, Dominican Republic taxes, and a 10% maintenance fee. From that balance, 53% was paid to Punta Cana and 47% was paid to the owners in the rental pool. Each owner's share of the rental pool payments was determined on a point system, with a 3 bedroom beach villa receiving 3 points. All of the owner's points were totaled, and each owner's share of the rental pool income was based on that owner's number of points as a percentage of all points.

124. No later than February 1993, management of the Punta Cana Yacht Club informed Respondent that it was forgiving any remaining interest due on Respondent's mortgage.

1. Respondent failed to repoli the forgiveness of interest on his Financial Disclosure statements.

2. In January 1993, Respondent wrote to the Punta Cana Yacht Club requesting infoTInation about his unit. In that letter, he stated, "As I mentioned to you, the House Ethics Committee requires the disclosure by members of Congress of any assets and lU1earned income and while I enjoy a good relationship with the Committee's Chairman it certainly would be politically embalTassing if I were unable to provide an accurate accounting of my holdings."

3. Respondent did report ownership of the Punta Cana villa on his original Financial Disclosure statements for each of calendar years between 1998 through 2008.

4. Respondent failed to report any rental income from Punta Cana on his original Financial Disclosure statements for calendar years 1998, 1999,2000,2006, and 2007.

5. Respondent failed to report any rental income from Punta Cana on his original Federal income tax retums for calendar years between 1998 through 2006.

6. For Respondent's original Financial Disclosure statements related to calendar years 1998, 1999, 2006, and 2007, the box for "none" under amount of rental income was checked. For the year 2000, the boxes under amount of rental income were left blank.

7. In June 2001, Respondent wrote a letter to the Standards Committee amending his Financial Disclosure statement for calendar year 2000. In that letter he stated, "Thank you for calling to inform me of the omission in my recent Financial Disclosure Statement of information concerning the income derived during the year 2000 fi·om the two propeliies in New York City

and the Dominican Republic jointly owned by my wife and me and the New England Mutual Life Insurance policy listed by me as assets in the repOlt. There was no income detived by us from these assets during the year 2000 and that fact should have been noted in my Financial Disclosure Statement."

1. Respondent did report income from Punta Cana on his original Financial Disclosure statements for calendar years 2001 through 2005, but the amounts reported were incorrect.

2. Respondent reported income from Punta Cana on his original and amended Financial Disclosure statements, as well as his original and, where applicable, amended Federal income tax returns as follows:

3. Respondent failed to report earned income from IRA disttibutions on his original Financial Disclosure statements for calendar years 1998 through 2007.