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THE CAMPAIGN FOR A

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CLEANER CONGRESS
Thursday, Jan. 19, 2006 Noel Hillman Chief, Public Integrity Section Criminal Division Department of Justice 1400 New York Ave., N.W. Washington, D.C. 20510

By_FAX:L-1_ _ ____.
Dear Mr. Hillman: Campaign for a Cleaner Congress has learned that Congressman Jerry Lewis of California appears to have flipped his position and ultimately changed a decision of Congress on behalf of a New York hedge fund called Cerberus .Capital Management. The switch was followed by a $110,000 donation to his leadership political action committee. A published report in today's USA Today documents this story of what seems to be a startling votefor-money swap. We request that you investigate whether Rep. Lewis's conduct violates federal bribery and gratuity statutes. As we understand it, Cerberus is one of a number of so-called "vulture" funds, which bought debt in MCI WorldCom shortly before its bankruptcy so it would be at the front of the line if the company paid back debt or would get equity in a revitalized company. Cerberus invested so heavily in the company that one of the Cerberus executives got on the MCI board. MCI WorldCom was a subcontractor on a Navy-Marine Corps communications network- an $8.8 billion program to connect all the Navy offices on a secure computer network. The program has been troubled throughout, enough to cause prime contractor EDS (Electronic Data Systems) ~-~-financiattrouole.Melwas-oneofthe-main-subcontractors,providing-all-of.thetelephone-linksbetween the offices. Congressman Lewis was quoted in The Washington Post on October 2, 2002, criticizing the program and the involvement ofMCI WorldCom. "When you have a big piece of the pie that's already in trouble, it just gums up the process that already has great difficulty," he said at the time.
888 16th St., Suite 303, Washingto!l, D.C. 20006

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202-393-4352

www.cleanercongress.org

CREW/Lewis-9

On May 16, 2003, the House Armed Services Committee voted out a budget calling for $160 million cut in the program. This threatened the cash flow and future viability of the company and, therefore, Cerberus's investment strategy. On Jun~ 16,2003, however, thebefense Appropriations Subcommittee and its chairman, Congressman Lewis, put out its spending bill preserving the money and keeping MCI (and Cerberus's investment) safe. On June 26, 2003, the full Appropriations Committee approved the bill with the program's funding preserved. Within two weeks, on July 7, 2003, Lewis held a fundraiser and received $110,000 from Cerberus and its executives and representatives, who had not previously been political donors to Lewis. The followjng day, July 8, 2003, the House passed the bill with the preserved funding. Congressman Lewis later used the funds in his political action committee to win support within the House Republican Caucus for his successful bid to chair the full House Appropriations Committee. Inasmuch as the Public Integrity Section oversees the federal effort to combat corruption through the prosecution of elected and appointed public officials at all levels of government, we request a prompt investigation into this matter.

Sincerely,

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Campaign for a Cleaner Congress

Cc: House Committee on Standards of Official Conduct

202-393-4352

888 16th St., Suite 303, Washington, D.C. 20006

www.cleanercongress.org

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