Menendez Denials On Ongoing Investigation Stand In Contrast To Silence From Obama Justice Department

In a move reminiscent of his 2006 denial that he was under federal investigation, despite numerous press reports showing otherwise, U.S. Senator Bob Menendez (D-NJ) has once again “angrily” denied that there is an ongoing federal investigation surrounding his past activities in Congress. Responding to questions raised by Republicans, Menendez tells the Bergen Record, “[t]his is pretty outrageous because they have no factual basis for that.” 

The problem with Menendez’s statement is that just as the New York Times reported last month, federal prosecutors have not yet issued any clearance letters in this sordid matter, which is routinely done when an investigation is concluded. Notably, in today’s Bergen Record story, Menendez also acknowledges that subpoenas were issued in this investigation, even though he denied the existence of the subpoenas in 2006, telling the Associated Press, “[t]here are no such subpoenas to my knowledge whatsoever.”

“It’s striking that just as he once denied the existence of subpoenas which he now acknowledges were issued, Senator Menendez is also denying there is an ongoing investigation, while the silence from President Obama’s own Justice Department strongly suggests otherwise,” National Republican Senatorial Committee (NRSC) spokesman Chris Bond said today. “The reality is that since Bob Menendez came to Congress, and even before, there has been a cloud of ethics-related questions surrounding his activities. At a time when voter confidence in Washington is at an all-time low, professional politicians like Bob Menendez give New Jersey voters good reason to vote for change in 2012.”

Finally, it’s worth noting that Menendez’s latest denial of any ongoing federal investigation comes just days after, under pressure from Republicans, he gave away thousands of dollars in campaign contributions from indicted real estate developer Aaron Malinsky, who stands accused of funneling bribes to two New York officials. Even though Malinsky and his family funded Menendez’s past campaigns to the tune of $33,000 in contributions, Menendez has yet to explain his relationship with him and why a New York-based real estate developer might have such an interest in a Senator from New Jersey when Malinsky donated just $250 each to New York’s two U.S. Senators.

BACKGROUND ON THE FEDERAL INVESTIGATION OF SENATOR BOB MENENDEZ

Menendez Collected $300,000 In Rent From A Company He Directed Federal Funding To

In 2006, It Was Reported That Menendez Collected $300,000 In Rent From A Group He Directed Millions Of Dollars In Federal Funding To, The North Hudson Community Action Corp. “Five years ago, the North Hudson Community Action Corp. hailed Robert Menendez as its ‘man of the year.’ In doing so, the nonprofit agency honored a congressman who long supported its efforts to win millions of dollars in federal funding. But the organization also could have used another title to describe what Menendez meant to them: landlord. Over a nine-year period, while he represented the Hudson County-based 13th District in the House of Representatives, Menendez collected more than $300,000 in rent from the agency as it leased a three-story brick house he owned in Union City. Menendez had bought the property in 1983 for $92,000.” (Jeff Whelan, “Agency Was Paying Rent To Its Champion,” The Star Ledger, 8/25/06)

In February 2007, The Record Published An Article Showing That Menendez Received Substantially More In Rent By Renting To NHCAC. “A deal with a federally funded non-profit allowed then-Rep. Bob Menendez to collect substantially more rent for his old house than he got in prior years, when the property’s annual losses reached $10,000, records show. Menendez’s arrangement with the politically connected organization meant the rent he charged for the Union City property jumped by nearly 50 percent from 1989 to 1994 despite a pronounced real estate slump that had emptied some of Hudson County’s best office buildings.” (Josh Gohlke and Mitchel Maddux, “A Lucrative Lease,” The Record, 2/4/07)

In September 2006, Federal Investigators Subpoenaed Records Of The Rental Deal

In September 2006, Federal Investigators Subpoenaed Records Of The Menendez – NHCAC Rental Deal And Launched A Criminal Investigation. “Federal investigators have subpoenaed records of a rental deal between U.S. Sen. Robert Menendez and a nonprofit agency in Union City, launching a criminal investigation that is sure to rock New Jersey’s hotly contested Senate race. Authorities delivered the subpoena to the North Hudson Community Action Corp. earlier this week, according to four sources familiar with the move who requested anonymity because of the ongoing investigation.” (Jeff Whelan and Josh Margolin, “Feds Probe Menendez Rental Deal,” The Star Ledger, 9/8/06)

Menendez Denied He Was Under Federal Investigation At The Time

Menendez In October 2006: “There Are No Such Subpoenas To My Knowledge Whatsoever.” “Democratic Sen. Robert Menendez told The Associated Press Wednesday that he has not been subpoenaed in any federal investigation, a claim Republican opponent Tom Kean Jr. continued to maintain. ‘There is a subpoena that has his name on it that was issued by an impaneled grand jury and delivered by the FBI,’ Kean said during an interview with the AP. ‘That’s a fact.’ In a separate interview with the AP later Wednesday, Menendez denied Kean’s claim. No federal agency has publicly said Menendez has been subpoenaed, and a Menendez campaign spokesman said Kean has no proof to make such a serious accusation. ‘There are no such subpoenas to my knowledge whatsoever,’ Menendez said.” (Donna De La Cruz, “Menendez Denies Kean’s Subpoena Claim,” The Associated Press, 10/21/06)

In 2007, The Investigation Of Menendez Widened

In 2007, Federal Investigators Subpoenaed Jersey City Medical Center For Records Regarding Government Relations Consulting Contracts. “Tom O’Neil, a spokesman for the Jersey City Medical Center, confirmed last week that the hospital has received two subpoenas from federal investigators. He said hospital officials were gathering documents to fully cooperate with authorities. He declined to disclose details. The subpoenas, according to people familiar with the command, are for records regarding government-relations consulting contracts. The subpoenas were signed by Assistant U.S. Attorney Richard Constable, the prosecutor spearheading the Menendez case. The subpoenas are related to that probe, according to a source familiar with the investigation.” (Jeff Whelan, “Federal Probe Of Menendez Is Far From Dead,” The Star Ledger, 8/26/07)

Former Menendez Aide Kay LiCausi Was One Of Only A Handful Of Lobbyists For Jersey City Medical Center. “Only a handful of lobbyists have worked for the hospital in recent years, and among them was Menendez’s former chief of staff, Kay LiCausi. She Earned A Total Of $280,000 From The Hospital From 2003 Until Her Contract Ended Earlier This Year, according to hospital officials. Critics have previously raised questions about the senator’s relationship with his former aide because after LiCausi left his office, she quickly built a successful lobbying firm enlisting clients, such as the hospital, that rely on government funding.” (Jeff Whelan, “Federal Probe Of Menendez Is Far From Dead,” The Star Ledger, 8/26/07)

The Federal Investigation Of Menendez Is Still Open

The Investigation Was Still Open In February 2011 According To The New York Times. “The investigation has yet to result in any charges, prompting Mr. Menendez’s supporters to urge the Justice Department to issue an official statement declaring it closed. But that has not happened.” (Raymond Hernandez, “Menendez Gears Up For 2012 Senate Race, With Christie Looming As A Factor,” The New York Times, 2/25/11)

In February 2010, It Was Reported That Menendez’s Lawyers Were Trying To Get The U.S. Attorney’s Office To Conclude The Investigation. “Behind the scenes, Menendez’s people have been trying for years to get the U.S. Attorney’s Office to announce the investigation is concluded and yielded nothing. But such a declaration has never come. Christie declined to issue it. So did Christie’s successor, Ralph Marra. There was a renewed, feverish and unsuccessful attempt to get such a statement last year after Christie left the office and before Paul Fishman was officially confirmed as the new federal prosecutor.” (“Sen. Robert Menendez investigation lingers,” Star Ledger Blog, 2/28/10)

Citizens For Responsibility And Ethics In Washington (CREW) List The Status Of The Investigation As “Unknown.” (Citizens For Responsibility And Ethics In Washington, http://www.citizensforethics.org/under-investigation#Menendez, Accessed 3/28/11)