Feb. 12, 2016 SIGN IN | REGISTER

Waters’ Lawyers Accuse Ethics Panel of Double Standard

Lawyers for Rep. Maxine Waters have accused the House ethics committee of applying a double standard by charging her with rules violations for actions that they claim are comparable to the actions of Rep. Sam Graves (R-Mo.), who was exonerated by the committee last year.The investigative subcommittee that filed the charges against Waters rejected this argument and refused to dismiss the case against her in July.The ethics committee on Monday released an investigative subcommittee’s three formal charges against Waters in preparation for an ethics trial this fall. The committee announced last week that the California Democrat would face a trial, but it did not detail the charges against her. Waters asked the committee to release the full charges so that she could publicly respond.The statement of alleged violations essentially faults Waters for failing to direct her chief of staff not to provide assistance to the minority-owned OneUnited Bank after Waters recognized that her involvement might pose a conflict of interest.In September 2008, the bank was concerned about the federal takeover of mortgage giants Fannie Mae and Freddie Mac, which wiped out the value of the bank’s significant holding in Fannie and Freddie stock. Waters’ husband had been a board member of OneUnited, and according to the investigators, his holdings in the bank at the time were worth about $350,000.Waters called then-Treasury Secretary Henry Paulson, who set up a meeting for two bank representatives — one of whom was also head of a minority bank trade association — with senior Treasury officials. The OneUnited representatives asked for $50 million to compensate the bank for Fannie and Freddie losses, the investigators concluded.Afterward, Waters spoke with Financial Services Chairman Barney Frank (D-Mass.), who told her he was already working to solve the problems of OneUnited and other minority banks and she should not get involved. While the investigative subcommittee did not accuse Waters of any violations for these actions, it concluded that her chief of staff, Mikael Moore — who is also her grandson — continued to engage in conversation with OneUnited officials and took additional steps to help the bank recover its funding.By not directing him to “refrain from assisting OneUnited,” Waters created the appearance that she was using her office to benefit her own financial interests, according to the statement of alleged violations. In addition, her failure to call off her staff member was “inconsistent with the spirit of the House Rule applicable to receiving compensation by virtue of influence improperly exerted,” according to the statement.But in a mid-July motion to dismiss the charges, Waters’ attorneys argued that she is the victim of the committee’s “disparate treatment” and that none of the things she is accused of were deemed violations by the committee in the investigation of Graves.In the Graves case, the Office of Congressional Ethics had suggested there was “a substantial reason to believe Graves had created an appearance of a conflict of interest” by extending an invitation to testify at a Small Business Committee hearing to an old friend and business partner of his wife’s. The hearing was about renewable fuels, and Graves’ wife and the witness were co-investors in two small renewable fuels cooperatives, and neither Graves nor the witness disclosed these relationships during the hearing.

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