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Ethics Group Asks Justice Department and IRS to Investigate Rangel's Unreported and Undisclosed Beach Villa Rental Income

Rangel is Chairman of the House Ways and Means Committee.

The Complaint asks for a criminal investigation of Rangel following newspaper reports that he did not disclose rental income from his beachfront villa in theDominican Republic resort ofPunta Cana. The appearance that Rangel had not disclosed rent on his Financial Disclosure Forms was first reported by the New York Post on August 31, 2008.

On September 4, Rangel's attorney Lanny Davis confirmed that Rangel failed to report rental income of $75,000.

The admission represented a change of course for Rangel. He first called the Post's reporting "totally unfactual (sic) and it will be proven." When asked why he failed to disclose the income, he said, "There wasn't any," and called the subject "a private matter."

The Complaint contains detailed information about Rangel's public filings and suggests that the unreported and undisclosed rent may be much more than the $75,000 figure cited by Davis.

At the Democratic National Convention last week Rangel complained about "a tax system that rewards the rich and few."

On July 14, NLPC filed a Complaint with the Federal Election Commission (FEC) against Rangel regarding his use of a rent-stabilized apartment in Harlem for a campaign office, first reported by the New York Times. The Complaint alleges that the greatly reduced rent enjoyed by Rangel's campaign was an illegal corporate contribution from the building owner, the Olnick Organization. Rangel soon after announced he would close the office.

Boehm commented, "Ordinary citizens are prosecuted all the time for tax evasion. Rangel should not get special treatment just because his committee writes the tax laws. A full investigation of this matter is warranted."

NLPC promotes ethics in public life and sponsors the Government Integrity Project.

SOURCE National Legal and Policy Center