I hadn't read the details in awhile, so went back over them again this morning. The unreported income amounts, as I expected, are relatively modest - probably less than $10,000 per year. Rangel also owned another rental unit, in New York, for which he did report income on his tax returns, although either omitting or understating the income on his annual financial disclosure forms. The rental unit in D.R., at the Punta Cana Yacht Club, was purchased in part with a mortgage, for which the seller eventually forgave at least some of the interest due. (He didn't report that forgiveness of debt on financial disclosure statements; not sure about tax returns.) Rangel reported:
- Ownership of the villa on financial disclosure forms for 1998 - 2008
- Rental income from the villa on financial disclosure forms only for 2001 - 2005 (incorrect amounts, though) and 2008
- Rental income from the villa on his tax returns only for 2007 and 2008
The Standards Committee apparently called his office about the omissions of rental income in the financial disclosure forms,j and Rangel wrote a letter back to them in 2001. That indicates it had been brought to his attention, and should have been passed along to his tax return preparer. He didn't file amended tax returns for 2004 through 2007, though, until September 2008 or later. By which time the statute of limitations for several of the years had closed and her permanently escaped taxes.
(There were also a
lot of other items that he reported properly, it appears, on his tax returns but omitted from the financial disclosure statements. The summary sounds as though he or his staff were
extremely sloppy in preparing the latter.)
I might feel differently if he were my client and an ordinary citizen, but trying to look at it objectively, that's well below the standard I would expect from a member of Congress, let alone chair of Ways and Means.
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With respect to the rent-stabilization apartments, on the application for at least one of the four units he indicated that his son would occupy the apartment, which never happened. That was the unit used for his campaign committee and PAC, without a written sublease. It appears that rent-stabilized apartments only qualify for that lower rent if used as a primary residence. (And I believe there was also a limitation as to how many units one person could lease at the rent-stabilized rates.) Apparently the management company did not permit the use of any other rent-stabilized apartments in the complex, above the first floor, for solely non-residential purposes for anyone other than Rangel. The management company or owner took legal actions against many tenants based on primary residency, including those who improperly sublet their apartments -- but not against Rangel. In fact, he was included on the management company's "special handling list" where he was identified as a Member of Congress. Rangel's office and staff received complaints from tents regarding legal actions brought against them because of primary residency, and worked with the management company to resolve those constituent issues. This, to me, indicates that they knew of the requirements and should have been aware Rangel himself was in violation.
I have some sympathy to an argument that the staff knew but Rangel didn't, but not a lot. The boss sets the moral tone of the organization; if it wasn't clear to all of his staff that he demanded compliance with the law and avoidance of an appearance of impropriety, that may be partly on them but it's also partly on him.
Rangel and his staff also met at least once with the management company regarding proposed construction projects and other developments. There may not have been anything improper about that, but it doesn't look good.
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Probably nothing that rises to the level of throwing him in prison. But also a certain lackadaisacal attitude toward his obligations and responsibilities, in my opinion. A
serious embarassment to the House.