Rep. Pete Visclosky (D-IN)

Rep. Pete Visclosky (D-IN) is a thirteen-term member of Congress, representing Indiana’s 1st congressional district. Rep. Visclosky is the chairman of the House Appropriations Subcommittee on Energy and Water Development. His ethics issues stem from his close ties to the PMA Group, a now defunct lobbying firm that represented numerous clients, many of which received earmarks sponsored by the lawmaker.

The PMA Group

In May 2009, Rep. Visclosky was subpoenaed by a federal grand jury seeking information about the PMA Group. The PMA Group is a now defunct lobbying firm, founded by former House Appropriations Committee aide, Paul Magliocchetti. Mr. Magliocchetti and his firm had close ties to Rep. Visclosky – the lawmaker’s former chief of staff, Rich Kaelin, was a registered lobbyist for the firm. Rep. Visclosky benefitted from his close ties with the group; from 1998 through the end of 2008, Rep. Visclosky was the second highest recipient of donations from PMA Group lobbyists and the firm’s clients, with a total of $1,369,298. In 2008, the PMA Group was Rep. Visclosky’s number one campaign contributor. In exchange, the lawmaker rewarded PMA Group clients with millions in earmarks, at least $23 million in fiscal year 2008 and at least $10 million in fiscal year 2009.

In November 2008, the offices of the PMA Group as well as the home of its founder, Mr. Magliocchetti, were raided by the FBI. The PMA Group is under investigation for allegedly violating campaign finance laws by making “straw” donations to lawmakers, concealing the true source of the money. Additionally, Mr. Magliocchetti may have reimbursed his employees for contributions made to candidates.

In March 2009, Rep. Visclosky asked for and was granted permission by the Federal Election Committee (FEC) for permission to use campaign funds to defray legal costs associated with defending himself during the course of the investigation. The FEC has also granted Rep. Visclosky’s campaign committee permission to use funds to pay legal expenses incurred by current and former aides to the lawmaker stemming from the investigation.

Shortly after the subpoena was issued, Rep. Visclosky announced he would temporarily step down as chair of the House Energy and Water Appropriations Subcommittee. Rep. Visclosky also pledged to cease earmarking for any for-profit company in this year’s spending bills. Finally, the lawmaker said he would reject $21 million in requests made by former PMA Group clients to his office.

Purdue Research Park Northwest Indiana

The Purdue Research Park of Northwest Indiana (PRPNI) is a technology incubator established in 2005. Based in Merrillville, Indiana, in Rep. Visclosky’s district, the lawmaker was instrumental in securing the original $6.9 million that financed PRPNI’s construction and he has continued to support the project. The goal of PRPNI was to create a space for fledgling businesses to get their start, expand, and eventually move out to more permanent space, but after four years and millions in investments, PRPNI is one-quarter empty.

Instead of serving as an incubator for struggling new businesses, PRPNI has hosted satellite offices of established government contractors and PMA Group clients. At least five current or former PRPNI tenants – 21st Century Systems, NuVant Systems, Inc., ProLogic, Inc., Sierra Nevada Corporation, and ACT-1 – are former clients of the PMA Group. Sierra Nevada, one of the first companies recruited by Rep. Visclosky, has closed its office in the Park.

Employees of the five firms as well as the corporate PACs of three of the companies have made donations to Rep. Visclosky’s campaign committee or political action committee.

If Rep. Visclosky traded earmarks for campaign contributions, he may have committed bribery and honest services fraud and he engaged in conduct that does not reflect creditably upon the House.

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