URGING INVESTIGATION INTO SPEAKER HASTERT’S LAND DEAL

CREW

CREW SENDS LETTER TO DOJ URGING INVESTIGATION INTO SPEAKER HASTERT’S LAND DEAL

CREW Questions Hastert Earmark – Demands Reform

Washington, DC – Earlier today, Citizens for Responsibility and Ethics in Washington (CREW) asked the Department of Justice (DOJ) to investigate whether Speaker Dennis Hastert (R-IL) violated the law by inserting an earmark into the 2005 Highway Bill that earned him a 500% profit on a lucrative land deal.

As reported in the Chicago Tribune, in August 2002, Speaker Hastert purchased 179 acres of land, inaccessible by road, in Kendall County, Illinois for $925,000, or $5,200 per acre. Then, in February 2004, Speaker Hastert formed a real estate trust with two other land buyers and purchased 69 acres of land adjacent to the original parcel at a cost of $1,033,000, or $15,000 per acre. The trust’s 69 acres was then joined with 69 acres of Speaker Hastert’s land.

The land purchased by the trust was more valuable than Speaker Hastert’s property because it was accessible by road.

In the summer of 2005, the Federal Highway Bill was enacted containing a $207 million earmark inserted by Rep. Hastert for construction of the Prairie Parkway. While the earmark was sufficient only to build about one-third of the entire 36 mile parkway, the language of the legislation mandated that construction take place on the portion of the parkway nearest to Speaker Hastert’s property.

As reported in The New Republic, four months after the bill was signed into law, the trust’s 138 acres was sold to a developer for $4,989,000 or $36,152 an acre. The partners apportioned the proceeds of the sale according to the acreage each had contributed. Thus, Speaker Hastert was credited with 62% ownership on the supposition that his $5,200 per acre land was equal in value to the partnership’s $15,000 per acre land with the result that he received $3,118,000 of the proceeds. While Rep. Hastert’s partners each made a 144% profit on their investment, Speaker Hastert’s profit was 500% of his original investment.

Melanie Sloan, CREW’s executive director, stated, “Speaker Hastert’s use of the earmarking process to increase his own property value is an egregious abuse of his legislative authority. The Department of Justice should immediately investigate this sweetheart deal.”

Sloan continued, “Congressional leaders have promised that the first order of business in January will be to enact ethics legislation. Any reform package must include a provision prohibiting members from inserting earmarks for their own personal financial benefit.”

The request for investigation and supporting documents are available at CREW’s website.

Speaker Hastert was included in the watch list of CREW's September 2006 report, "Beyond DeLay: The 20 most corrupt members of Congress (and five to watch)."

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Citizens for Responsibility and Ethics in Washington (CREW) is a non-profit legal watchdog group dedicated to holding public officials accountable for their actions.

Hastert for UN?

Foreign Policy:

The List: Who Will Replace John Bolton?

John Bolton is the most controversial U.S. ambassador to the United Nations in history. But, to the delight of his critics, his temporary appointment is nearing expiration. With congressional Democrats in charge, President Bush won’t have the votes to send Bolton back to New York. Or will he? This week’s FP List considers the contenders for Bolton’s spot.
[snip]
The Longshot

Dennis Hastert, Republican congressman from Illinois

Why he’ll get the post: The outgoing Speaker of the House is already rumored to be at the top of Bush’s list to become the next ambassador to Japan. Hastert has said publicly that the 2007–2008 term will be his last, and there’s a chance the president will encourage him to step down early in order to go to Turtle Bay instead of Tokyo. That way, Bush can stick it to the Democrats who scuttled the Bolton nomination by appointing someone who equally raises partisan hackles.

Why he won’t: Hastert is politically polarizing. Critics call him a defender of congressional corruption. He was recently called out for his handling of the Mark Foley sex scandal and was a little too close for comfort to Jack Abramoff. Plus, his foreign-policy experience is thin. He briefly served on the House subcommittee tasked with national security, hardly a stand-out resume for the country’s top diplomat.

Please, please, please let Hastert be nominated, and soon.

Hastert & Abramoff: the payoff

* n0madic has the details of Hastert's double dealing re indian casions. i hadn't ever really appreciated why Hastert was the number one beneficiary of Abramoff's cash. great work n0madic. more on hastert at The Real Denny.