Ex-Rep. Nathan Deal’s Congressional office paid hundreds of thousands of dollars to a Georgia company owned by his top staffer’s wife to fly to and from his Congressional district, but the staffer did not report the income on his financial disclosure forms because he claims the couple made no profit.
House rules prohibit Members from purchasing services from a staff member but appear to be silent on purchasing from a staff member’s spouse.
According to House spending records, which detail the finances of each lawmaker’s office, Deal’s office paid Gainesville, Ga.-based Chattahoochee Logistics LLC at least $245,000 from 2002 to 2008.
Former House aide Chris Riley, who now serves as Deal’s campaign manager in the Georgia gubernatorial race, founded that company in 2003 and served as Deal’s pilot on Chattahoochee Logistics flights, as first reported last month by the Atlanta Journal-Constitution. The company is now in his wife’s control.
In an interview Monday, Riley told Roll Call that he has not received any payment from Chattahoochee Logistics and received no additional compensation for serving as Deal’s pilot on those flights.
“I’ve never received income from Chattahoochee Logistics,” Riley said.
A campaign spokesman referred questions about Chattahoochee Logistics to attorney Randy Evans at McKenna, Long & Aldridge.
Evans confirmed that the LLC “had a single member” at the time it received payments from Deal’s office — Riley’s spouse, Bambi Riley — who would have received any income the company generated.
Members and senior aides who must file annual financial disclosures are required to disclose the source of any non-Congressional income greater than $200, as well as the source of any income exceeding $1,000 earned by their spouse in the previous calendar year.
Chris Riley’s publicly available financial disclosure forms, filed each year from 2004 to 2009, do not show Bambi Riley earning income from Chattahoochee Logistics.
Deal resigned in March to run for governor of Georgia; his campaign said Chattahoochee Logistics was “profit-neutral” when it received Congressional funds. Evans said: “It was virtually break-even.”
In 2008, Chattahoochee Logistics also reimbursed the House for more than $80,000 in “overpayments” based on revised travel rules as determined by an internal audit, as the Atlanta newspaper reported.
The first two disclosure forms Chris Riley filed indicated that he was president of Chattahoochee Logistics, but the company dropped off his later forms.
Riley said he subsequently removed himself as a member of the LLC, although he continues to manage the company in an uncompensated position. Records maintained by the Georgia secretary of state list the company’s principal office at Riley’s home address in Gainesville.
Riley added that he received advice from the Committee on Standards of Official Conduct.
“The staff director of the Standards Committee said, ‘Do I get paid to drive a car?’” Riley recalled. “‘So why should you get paid to fly an airplane?’”
Individuals familiar with the arrangement said Chattahoochee Logistics was paid based on the mileage reimbursement rates applied to an aircraft privately owned by a Member or staff for travel.
“The goal is to pay what’s owed, and not a penny more and not a penny less,” Evans said. The specific costs related to flight — such as hangar fees, fuel or maintenance — are unknown because the reimbursement rate covers only mileage.
Terri Henderson, 6, center, whose mother is El Salvador, attends a rally with members of Congress at Union Station's Columbus Circle to announce the Restore Opportunity, Strengthen, and Improve the Economy (ROSIE) Act on July 29, 2014. The legislation provides incentives for government contractors to pay a living wage and other benefits that would help low-income workers.