THE FALLOUT OVER SEN.

HARRY REID’S (D-NV) ETHICAL HANG-UP
Newspapers Question Dem Leader’s Ethics While Sen. Reid Calls It “Terrible Journalistic Unfairness”
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FACT: Dem Leader Harry Reid (D-NV) Hung-Up On Reporter That Exposed Lucrative Land Deal That Violated Ethics Rules: “Senate Democratic Leader Harry Reid Collected A $1.1 Million Windfall On A Las Vegas Land Sale Even Though He Hadn’t Personally Owned The Property For Three Years …” (John Solomon and Kathleen Hennessey, “Reid Got $1 Million For Land He
Hadn’t Owned For 3 Years,” The Associated Press, 10/11/06)

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“Reid Hung Up The Phone When Questioned About The Deal During An AP Interview …” (John Solomon and
Kathleen Hennessey, “Reid Got $1 Million For Land He Hadn’t Owned For 3 Years,” The Associated Press, 10/11/06)

Sen. Reid: “What a terrible journalistic unfairness.” (Roy Hagar, “Reid Says AP Is Unfair,” Reno Gazette Journal, 10/13/06)

“Senate Ethics Rules Require Lawmakers To Disclose On Their Annual Ethics Report All Transactions Involving Investment Properties – Regardless Of Profit Or Loss – And To Report Any Ownership Stake In Companies.” (John
Solomon and Kathleen Hennessey, “Reid Got $1 Million For Land He Hadn’t Owned For 3 Years,” The Associated Press, 10/11/06)

“[R]eid Did Not Disclose To Congress An Earlier Sale In Which He Transferred His Land To A Company Created By A Friend And Took A Financial Stake In That Company …” (John Solomon and Kathleen Hennessey, “Reid
Got $1 Million For Land He Hadn’t Owned For 3 Years,” The Associated Press, 10/11/06)

“Other Parts Of The Deal – Such As The Informal Handling Of Property Taxes – Raise Questions About Possible Gifts Or Income Reportable To Congress And The IRS, Ethics Experts Said.” (John Solomon and Kathleen
Hennessey, “Reid Got $1 Million For Land He Hadn’t Owned For 3 Years,” The Associated Press, 10/11/06)

“Kent Cooper, Who Oversaw Government Disclosure Reports For Federal Candidates For Two Decades In The Federal Election Commission, Said Reid’s Failure To Report The 2001 Sale And His Ties To Brown’s Company Violated Senate Rules.” (John Solomon and Kathleen Hennessey, “Reid Got $1 Million For Land He Hadn’t Owned For 3 Years,” The
Associated Press, 10/11/06)

Third Parties Across The Country Say Sen. Reid Acted Improperly, Should Be Held Accountable: The Philadelphia Inquirer: “Unless Reid comes up with a better explanation for this lack of disclosure, Democrats should not keep him as their leader in the new Congress in 2007.” (Editorial, “Reid’s Land Deal,” The Philadelphia Inquirer, 10/13/06) • The Philadelphia Inquirer: “A lucrative land deal benefiting U.S. Senate minority leader Harry Reid (D., Nev.) deserves full scrutiny by the Senate ethics committee. … [T]he Senate Democratic leader engaged in a seven-figure handshake and didn’t feel the need to disclose all the details. Experts on Senate ethics rules say Reid should have
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disclosed the sale in 2001 on his annual ethics report, and informed Congress of his part-ownership in Brown’s corporation. Reid didn’t.” (Editorial, “Reid’s Land Deal,” The Philadelphia Inquirer, 10/13/06) CNBC’s Larry Kudlow: “[W]hat’s up with this Harry Reid scandal? Why aren’t newspapers playing this on the front pages? Some pundits say he could go to jail. … [T]he part that’s really troubling is … apparently [Jay] Brown, who has a checkered past, structured the deal so that Senator Reid could transfer his ownership interest to Brown without disclosing it to the public. … That is potentially a federal crime.” (CNBC’s “Kudlow & Co.,” 10/12/06) The Washington Post: “The best case for Senate Minority Leader Harry M. Reid (D-Nev.) is that he was sloppy about financial disclosure rules in accounting for a real estate deal on which he made a $700,000 profit. The more unattractive case is that the senator’s inaccurate description of the investment was an effort to disguise his partnership with a Las Vegas lawyer … whose name has surfaced in federal investigations involving organized crime, casinos and political bribery since the 1980s.” (Editorial,
“Mr. Reid’s Nondisclosure,” The Washington Post, 10/13/06)

The Washington Post: “[R]eid’s dealings doesn’t cast the senator in an attractive light. Neither does his response to the AP story, which indicates a casual disregard for the importance of accurate reporting of lawmakers’ financial affairs.” (Editorial, “Mr. Reid’s Nondisclosure,” The Washington Post, 10/13/06)

Las Vegas Review-Journal’s John L. Smith: “The question is the timing of the land deal itself and its relationship, if any, to the release of other federal land for private development. In theory, such a purchase could be considered something akin to trading with insider knowledge. Reid’s influential friends and political allies are often close to those federal land releases.” (John
L. Smith, Op-Ed, “Timing Is Everything In Harry Reid’s Profitable Partnership Deal,” Las Vegas Review-Journal, 10/13/06)

The Oklahoman: “Reid … is accused of failing to account for a business transaction on which he made a $1.1 million windfall. … The deal was orchestrated by a lawyer for casino interests in Reid’s home state. It appears to violate Senate ethics rules and definitely puts Reid in an uncomfortable place as we head into the final weeks before the election.” (Editorial, “Capitol Gains,”
The Oklahoman, 10/13/06)

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The Oklahoman: “[W]hen an AP reporter questioned him on specifics of the deal, Reid hung up the phone. So much for coming clean.” (Editorial, “Capitol Gains,” The Oklahoman, 10/13/06) The Oklahoman: “Now that the shoe’s on the other foot, will congressional Democrats call on U.S. Sen. Harry Reid to resign? Will they accuse him of being a profiteer along the lines of ExxonMobil and other energy firms?” (Editorial, “Capitol
Gains,” The Oklahoman, 10/13/06)

The Atlanta Journal Constitution’s David McNaughton: “Senate Democratic leader Harry Reid would be well advised to stop thundering about corruption in the Republican ranks … Reid faces too many questions about his own behavior to crusade against the misdeeds of others.” (David McNaughton, Op-Ed, “Senator Should Look In Mirror First,” The Atlanta Journal-Constitution, 10/13/06) Fox News’ Megyn Kendall: “[H]arry Reid is under fire, it’s all about this land deal he made a few years ago with questions being raised about the Senator’s disclosures of the transactions. Now the senate ethics committee is taking a closer look.” (Fox
News’ “Fox News Live,” 10/12/06)

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