[1]Representative John P. Murtha (D-PA) is a nineteen-term member of Congress, representing Pennsylvania’s 12th congressional district. Rep. Murtha chairs the Defense Appropriations Subcommittee of the House Appropriations Committee. Rep. Murtha’s ethics issues and violations stem from (1) his ties to the PMA Group, a now defunct lobbying firm under federal investigation; (2) his ties to Kuchera Industries, a defense contractor under federal investigation; (3) his ties to defense executives and former military personnel convicted of skimming money from government contracts; (4) actions he may have taken to benefit his brother’s lobbying clients; and (5) his chief of staff’s threats to a political opponent. Rep. Murtha was included in CREW’s 2006, 2007, and 2008 reports on congressional corruption.
PMA Group Investigation
Paul Magliocchetti worked with Rep. Murtha as a senior staffer on the Appropriations Committee Subcommittee on Defense for 10 years. After leaving the committee, Mr. Magliocchetti founded the PMA Group, which was one of the most prominent Washington, D.C. defense lobbying firms. In November 2008, federal authorities raided the offices of the PMA Group and the home of Mr. Magliocchetti. The PMA Group is being investigated for allegedly violating campaign finance laws by using “straw” donors to make contributions to lawmakers, concealing the true source of the money. In some cases, lawmakers received contributions from individuals listed as PMA lobbyists despite the fact that the individuals were never employees of the firm. Additionally, Mr. Magliocchetti may have reimbursed his employees for contributions made to candidates. After news of the raid broke, the lobbying shop closed its doors on March 31, 2009.
Despite the investigations into PMA’s practices, lawmakers have continued to earmark for the firm’s former clients with Rep. Murtha requesting $16.2 million in earmarks for Parametric Technology Corporation, Ardiem Medical, MobileVox, DRS Technologies, and MTS Technologies. In exchange, these companies made contributions to Rep. Murtha’s campaign committee and PAC.
On June 11, 2009, the Ethics Committee revealed it was investigating “certain, specific allegations within the committee’s jurisdiction” relating to the PMA Group The Ethics Committee’s statement did not mention any specific lawmaker by name, and Rep. Murtha’s spokesperson said the committee had not contacted his office.
Since 1998, Rep. Murtha has accepted $2,378,552 from PMA Group employees and clients of the firm, making him the biggest recipient of contributions from the firm.
Kuchera Corporation Investigation
In January 2009, federal investigators raided the headquarters of Kuchera Corporation as well as the homes of the company’s two top executives. The investigation concerns the misuse of corporate funds to finance a private ranch owned by the company’s president, Bill Kuchera, and contract fraud. In response to the investigation surrounding the firm, the U.S. Navy placed the company on its Excluded Parties List, barring the firm from receiving any more federal contracts. The suspension was revoked, however, after Kuchera agreed to alter some of its accounting practices.
In 1982, Mr. Kuchera pleaded guilty to a single felony count related to drug trafficking and spent less than a year in prison. After his release Mr. Kuchera approached his uncle, then the owner of Kuchera Industries, based in Racine, Wisconsin, for a job. When Mr. Kuchera’s partner in the drug-running operation, Peter Whorley, was released from prison in 1986, he approached Mr. Kuchera and invested $50,000 in the fledgling company in exchange for a share of the profits. Kuchera’s felony conviction never barred his company from winning contracts to handle sensitive government work.
Since 2001, Rep. Murtha has directed approximately $50 million in earmarks to Kuchera Industries. In turn, since 2002, employees of Kuchera Industries and their families have donated to $90,500 to Rep. Murtha’s campaign committee. Additionally, since 2006, employees as well as their families have donated $7,000 to Rep. Murtha’s PAC. Kuchera Industries shares links with a host of other Rep. Murtha connected organizations, including lobbyists and defense contractors.
KSA Consulting
KSA Consulting is a lobbying firm that has employed Rep. Murtha’s brother, Robert “Kit” Murtha, as well as Carmen Scialabba. Mr. Scialabba joined KSA Consulting after leaving the House Appropriations Committee where he worked as an aide to Rep. Murtha. KSA clients that have received earmarks from Rep. Murtha include Aeptec Microsystems, Coherent Systems International, MountainTop Technologies, and KDH Technologies.
Mr. Murtha was personally invited to join KSA Consulting as a lobbyist in 2002 by Mr. Scialabba, where he established a reputation as an “earmark specialist.” In 2004, Congress passed a $417 billion defense appropriations bill, which included earmarks benefitting at least 10 companies represented by KSA Consulting. Records show that KSA Consulting directly lobbied Rep. Murtha’s office for seven of those companies. Mr. Murtha retired from KSA Consulting in 2006.
Concurrent Technologies Corporation (CTC)
CTC is a large non-profit that in 2007 received $220,423,075 in funding from the federal government. The group’s 990 form also indicates that it paid the PMA Group $461,334 for consulting services. Since 2002, CTC’s employees and employees’ family members have donated more than $126,000 to Rep. Murtha’s political committees and leadership PAC.
Commonwealth Research Institute (CRI) is a subsidiary non-profit of CTC. In 2007, the non-profit received $5,104,829 in funding from the federal government. Since 2003, the group’s totally funding has jumped from $632,884 to just over $5 million.
Federal authorities continue their investigation into (CTC) and its subsidiary, Commonwealth Research Institute (CRI). CRI is under particular scrutiny concerning the process in which it was awarded its non-profit status. When CRI petitioned the IRS for tax-exempt status the IRS questioned whether the group’s purpose as a research institute was adequate rationale for tax-exempt status and noted that “research results must be made available to the interested public.” CRI responded that it planned to work primarily with government contracts, only a small portion of which would be classified. But in the nine years since the group petitioned the government for tax-exempt status, it has never published any of its government backed research.
Previously, CRI caught the attention of the Pentagon’s Office of Inspector General (IG), which was investigating payments made by CRI to an Air Force official awaiting confirmation for work that was never done. Shortly after admitting to a Washington Post reporter that he was being paid, but not doing any work in return, the official committed suicide. The IG’s investigation has been placed on hold pending the outcome of other probes into Rep. Murtha related entities.
If, as it appears, Rep. Murtha accepted donations to his campaign and political action committees in direct exchange for earmarking federal funds, he may have committed bribery and honest services fraud and engaged in conduct not reflecting credibility on the House.
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