You are on page 1of 17

CREW Icitizens for responsibility

and ethics in washington

February 14,2011

By facsimile: 540-868 -4995

Federal Bureau of Investigation


Attn: FOI/PA Request
RecordlInformation Dissemination Section
170 Marcel Drive
Winchester, VA 22602-4843

Re: Freedom of Information Act Request

Dear Sir/Madam:

Citizens for Responsibility and Ethics in Washington ("CREW") makes this request for
records, regardless of format, medium, or physical characteristics, and including electronic
records and information, audiotapes, videotapes and photographs, pursuant to the Freedom of
Information Act ("FOIA") , 5 U.S.C. §§ 552, et seq., and U.S. Department of Justice ("DOJ")
regu lations, 28 C.F.R. Part 16.

Specifically, CREW requests all records related to investi gations conducted by DOJ and
the Federal Bureau of Investigation ("F BI") of Rep. Alan B. Mollohan (D-WV) that are not
covered by grand jury secrecy pursuant to Rule 6(e) of the Federal Rules of Criminal Procedure,
including but not limited to DOl's decision not to bring criminal charges against him . DOJ
conducted an investigation of Rep . Mollohan related to $250 million in earmarks that benefitted
non-profit organizations of Rep . Mollohan 's campaign contr ibutors. See Paul Kane , Justice
Dept. ends probe of Rep. Mo llohan, The Washington Post , January 26,20 10 (attached as Exhibit
A) . DOJ notified Rep. Mo llohan in January 2010 it had concluded its investigation of him and
declined to prosecute him , and the United States Attorney's Office for the District of Columbia
confirmed it had closed its investigation. Id.

Please search for responsive records regardless of format , medium, or physical


characteristics . Where possible, please produce records electronically, in PDF or TIF format on a
CD-ROM. We seek records of any kind , including electronic records, aud iotapes, videotapes, and
photographs. Our request includes any letters, ema ils, facsimiles, telephone messages, voice mail
messages, and transcripts , notes, or minutes of any meetings, telephone conversations, or
disc ussio ns . Our reques t also includes any attachments to these records.

If it is your position that any portion of the requested records is exempt from disclosure,
CREW requests that you provide it with an index of those documents as required under Vaughn v.
Rosen, 484 F.2d 820 (D.C. Cir. 1973), cert. denied, 415 U.S. 977 (1972 ). As you are aware , a
Vaughn index must describe each document claimed as exempt with sufficient specificity "to permit
a reasoned judgment as to whether the material is actually exempt under FOIA. " Founding Church

1400 Eye Street, N.W. , Suite 450, Washington, D.C . 20005 I 202.408.5565 phone I 202.588.5020 fax I www.citizensforethics.org
.~,
Federal Bureau of Investigation
February 14,2011
Page 2

ofScientology v. Bell, 603 F.2d 945, 949 (D.C. Cir. 1979). Moreover, the Vaughn index must
"describe each document or portion thereof withheld, and for each withholding it must discuss the
consequences of supplying the sought-after information." King v. Us. Dep 't ofJustice, 830 F.2d
210,223-24 (D.C. Cir. 1987) (emphasis added). Further, "the withholding agency must supply 'a
relatively detailed justification, specifically identifying the reasons why a particular exemption is
relevant and correlating those claims with the particular part of a withheld document to which they
apply. '" Id. at 224 (citing Mead Data Central v. Us. Dep 't ofthe Air Force, 566 F.2d 242, 251
(D.C. Cir. 1977)).

In the event some portions of the requested records are properly exempt from disclosure,
please disclose any reasonably segregable non-exempt portions of the requested records. See 5
U.S.C. § 552(b). Ifit is your position that a document contains non-exempt segments, but that those
non-exempt segments are so dispersed throughout the document as to make segregation impossible,
please state what portion of the document is non-exempt, and how the material is dispersed
throughout the document. Mead Data Central, 566 F.2d at 261. Claims ofnonsegregability must
be made with the same degree of detail as required for claims of exemptions in a Vaughn index. If a
request is denied in whole, please state specifically that it is not reasonable to segregate portions of
the record for release.

Finally, CREW welcomes the opportunity to discuss with you whether and to what extent
this request can be narrowed or modified to better enable the FBI to process it within the FOIA's
deadlines. Adam 1. Rappaport, the CREW attorney handling this matter, can be reached at (202)
408-5565 or arappaport@citizensforethics.org.

Fee Waiver Request

In accordance with 5 U.S.C. § 552(a)(4)(A)(iii) and 28 C.F.R. § 16.11(k), CREW requests a


waiver of fees associated with processing this request for records. The subject of this request
concerns the operations of the federal government and expenditures, and the disclosures will likely
contribute to a better understanding of relevant government procedures by CREW and the general
public in a significant way. Moreover, the request is primarily and fundamentally for non-
commercial purposes. 5 U.S.C. § 552(a)(4)(A)(iii). See, e.g., McClellan Ecological v. Carlucci,
835 F.2d 1282, 1285 (9th Cir. 1987).

These records are likely to contribute to greater public awareness of alleged malfeasance and
possible criminal behavior by Rep. Mollohan and why, despite this apparent malfeasance, DOJ
refused to prosecute Rep. Mollohan.

From 2006 to 2010, the Justice Department investigated possible connections between Rep.
Mollohan and five non-profit organizations that he created and supported with earmarks. See Kane,
Wash. Post, Jan. 26, 2010. Rep. Mollohan earmarked $250 million for five non-profits: West
Federal Bureau of Investigation
February 14,2011
Page 3

Virginia High Technology Consortium Foundation, Institute for Scientific Research, Canaan Valley
Institute, Vandalia Heritage Foundation, and MountainMade Foundation. See Judi Rudoren, Special
Projects by Congressman Draw Complaints, The New York Times, April 8, 2006 (attached as
Exhibit B). Employees of the organizations, including board members and contractors, contributed
at least $397,122 to Rep. Mollohan's campaigns from 1997 to 2006. Id. The non-profits were run
by close friends and real estate partners of Rep. Mollohan. See Kane, Wash. Post, Jan. 26,2010.
DOJ notified Rep. Mollohan in January 2010 it had concluded its investigation of him and declined
to prosecute him. Id.

The requested documents would shed light on the conduct of DOJ and the FBI in conducting
the investigation of Rep. Mollohan, and DOl's decision to close the investigation without bringing
charges against him. In addition, while DOJ decided not to prosecute Rep. Mollohan, his activities
still may have been illegal or violations ofthe rules of the House, and the requested records would
shed light on them.

CREW is a non-profit corporation, organized under section 501(c)(3) of the Internal


Revenue Code. CREW is committed to protecting the public's right to be aware of the activities of
government officials and to ensuring the integrity of those officials. CREW uses a combination of
research, litigation, and advocacy to advance its mission. The release of information garnered
through this request is not in CREW's financial interest. CREW will analyze the information
responsive to this request, and will share its analysis with the public, either through memoranda,
reports, or press releases. In addition, CREW will disseminate any documents it acquires from this
request to the public through its website, www.citizensforethics.org, which also includes links to
thousands of pages of documents CREW acquired through its multiple FOIA requests as well as
documents related to CREW's litigation and agency complaints, and through www.scribd.com.

Under these circumstances, CREW satisfies fully the criteria for a fee waiver.

News Media Fee Waiver Request

CREW also asks that it not be charged search or review fees for this request because CREW
qualifies as a "representative of the news media" pursuant to the FOIA. In Nat 'l Sec. Archive v.
Us. Dep 't ofDefense, 880 F.2d 1381, 1386 (D.C. Cir. 1989), the Court of Appeals for the District
of Columbia Circuit found the National Security Archive was a representative of the news media
under the FOIA, relying on the FOIA's legislative history, which indicates the phrase
"representative of the news media" is to be interpreted broadly; "it is critical that the phrase
'representative of the news media' be broadly interpreted if the act is to work as expected.... In
fact, any person or organization which regularly publishes or disseminates information to the
public . . . should qualify for waivers as a 'representative ofthe news media." 132 Congo Rec.
S14298 (daily ed. Sept. 30, 1986) (emphasis added), cited in id.
Federal Bureau ofInvestigation
February 14,2011
Page 4

CREW routinel y and systematically disseminates information to the public in several ways.
First, CREW maintains a frequentl y visited website, www .citizensforethics.org, that received
53,145 page views in January 2011. In addition, CREW posts all of the documents it receives under
the FOIA on www .scribd.com. and that site has received 607,799 visits to CREW's documents
since April 14, 2010.

Second , since May 2007 CREW has publi shed an online newsletter, CREWCuts, that
currently has 16,960 subscribers. CREWCuts provides subscribers with regular updates regarding
CREW 's activities and information the organization has received from government entities. A
complete archive of past CREWCuts is available at http ://www .citizensforethic s.org/newsletter.

Third , CREW publi shes a blog, Citizens blogging f or resp onsibility and ethics in
Washington, that reports on and analyzes newsworth y developm ents regarding government ethics
and corruption. The blog, located at http://www.citiznesforethics.org/blog, also provides links that
direct readers to other news articles and commentary on these issues. CREW' s blog had 4,045 page
views in January 2011.

Finally, CREW has published numerous reports to educate the public about government
ethics and corrup tion. See Record Chaos, which examines agency compliance with electroni c
record keeping responsibilities; The Revolving Door , a comprehensive look into the post-
government activities of 24 former members of President Bush 's cabinet; and Those Who Dared: 30
Offi cials Who Stood Up For Our Country. These and all other CREW' s report s are available at
http://www .citizensforethics.org/reports .

Based on these extensive publication activities, CREW qualifi es for a fee waiver as a
"representative of the news media" under the FOIA and agency regulations.

Conclusion

If you have any question s about this reque st or foresee any problems in releasing fully the
requested records please contac t me at (202) 408-5565. Also, if CREW's request for a fee waiver is
not granted in full, please contact our office immediately upon makin g such a determination. Please
send the requested record s to Adam J. Rappaport, Citizens for Responsibility and Ethics in
Washington, 1400 Eye Street, N.W., Suite 450, Washington, D.C. 20005.

Sincerely,

jd~
Adam J. Rappaport
Senior Counsel

Enclosures
EXHIBIT A
Justice Dept. ends probe of Rep. Mollohan http://www.washingtonpost.com/wp-dyn/content/artic1e/20 1% 1/26/...

~he {util6binglon tp06t


Justice Dept. ends probe of Rep.
Mollohan
By Paul Kane
Washington Post Staff Writer
Tuesday, January 26, 2010; 3:25 PM

The Justice Department has shuttered its nearly


four-year investigation into the personal finances of
Rep. Alan Mollohan CD-W.Va.), freeing the 14-term
lawmaker to pursue what could be a tough bid for
reelection without the lingering cloud of a federal
criminal probe.

The U.S. Attorney's Office for the District of Columbia


had been overseeing an investigation of Mollohan, a senior member of the House Appropriations
Committee, for steering roughly $250 million in line-item expenditures to several nonprofit organizations
run by close friends, who also were real estate partners with him.

Mollohan's office was notified this month that the investigation had been closed without criminal charges
filed. Federal prosecutors declined to elaborate on what the investigation had found.

"We're not going to get into any details, but I can confirm we've closed the investigation into Alan
Mollohan," Ben Friedman, spokesman for the u.s. attorney's office, said Monday evening.

Mollohan, 66, is expected to notify House Speaker Nancy Pelosi CD-Calif.) and Rep. David R. Obey
CD-Wis.), chairman of the Appropriations Committee, of the development in a letter Tuesday. That
would clear the way for him to resume full control of a subcommittee that oversees the roughly $28
billion budget for the Justice Department and the nearly $8 billion budget for the FBI.

In a statement, Mollohan said the investigation was sparked by a conservative watchdog group's partisan
actions. The probe was launched when he was serving as the top Democrat on the House ethics
committee.

"For nearly four years, in the face of a politically-motivated assault on my character, I have continued to
fight for jobs and the working families of West Virginia. With this behind me, I am more determined than
ever to stand up for the people of the First Congressional District and fight for what matters," Mollohan
said.

He recently filed to run for reelection, squelching whispers that he might join several other longtime
incumbents who decided to retire rather than face a tough political environment in November.

In recent weeks, the independent political handicappers Cook Political Report and the Rothenberg
Political Report have downgraded Mollohan's seat to "lean Democratic" status. The Republican Partv
did not field a challenger to Mollohan in 2008, but national party leaders have recruited several potential
candidates while seeking to maintain a drumbeat of criticism related to the criminal investigation. They
pivoted away from the ethics matter Tuesday and sought to focus on the state's economy.

lof3 2/14/2011 3: 16 PM
Justice Dept. ends probe of Rep. Mollohan http://www.washingtonpost.com/wp-dyn/content/article/20 1% 1/26/ ...

"Alan Mollohan's support for Obama's war on Mountaineer State jobs proves that it doesn't matter
whether he's in Congress or behind bars -- he stopped representing West Virginians a long time ago," said
Andy Sere, spokesman for the National Republican Congressional Committee.

A federal grand jury issued a flurry of subpoenas to West Virginia-based nonprofits in 2006 and 2007,
after a SOO-page criminal complaint regarding Mollohan's finances in February 2006.

The complaint came from the National Legal and Policy Center, a conservative group that discovered
discrepancies in Mollohan's personal financial disclosure forms. It raised questions about how his
personal wealth rose -- according to congressional disclosure reports he filed -- from a minimum of
$180,000 in 2000 to a minimum of $6.3 million in 2004.

Mollohan attributed much of that increase to a family inheritance and to the soaring property values of a
condominium building he owns in the District's West End. After a self-imposed audit, Mollohan filed
amended reports that corrected roughly 20 mistakes in his disclosure forms. He contended they were
minimal in nature.

However, federal investigators continued to focus on multimillion-dollar earmarks that Mollohan steered
to entities such as Vandalia Heritage Foundation, a historic-preservation group that was run by Laura
Kuhns, a former Mollohan staff member.

The lawmaker's family also invested with Kuhns's family in North Carolina beach property, including a
lot in Bald Head that went to foreclosure late last year.

Pete Flaherty, who co-founded the NLPC, questioned whether the Justice Department backed off the
investigation because Mollohan is a loyal vote for the Obama administration. "Has Attorney General
Eric Holder now made it legal for members of Congress to earmark money to their business partners?
This is a horrible precedent," Flaherty said.

The Mollohan investigation came at the height of Democratic attacks on what Pelosi, then the minority
leader, called the Republican "culture of corruption." Mollohan served as ranking Democrat on the
ethics panel when it admonished House Majority Leader Tom DeLay (R-Tex.) in 2004 over fundraising
activities. Mollohan also fought rules changes that GOP leaders imposed in 2005, leading to a virtual
shutdown of the committee's work for several months.

Shortly after the investigation became public, Mollohan stepped down from the ethics committee. When
Democrats claimed the majority in January 2007, Mollohan took over as chairman of the Appropriations
justice subcommittee, but recused himself from voting on matters specifically related to the FBI and the
attorney general's office.

In his statement Tuesday, Mollohan defended helping to fund the nonprofit groups: "These nonprofits
are all about building West Virginia's economy and making our state a better place to live. I am very
happy that they will be able to put this behind them and refocus on their core missions to create good
jobs and improve the lives of West Virginians."

View all comments that have been posted about this article.

Post a Comment

View all comments that have been posted about this article.

20f3 2/14/20113:16 PM
Justice Dept. ends probe of Rep. Mollohan http://www.washingtonpost.com/wp-dyn/contentlarticle/20 1% 1/26/ ...

You must be logged in to leave a comment. Login I Register

Submit

Comments that include profanity or personal


attacks or other inappropriate comments or material vvill be removed from the site, Additionally, entries that are unsigned or contain
"signatures" by someone other than the actual author vvill be removed. Finally, we vvill take steps to block users who violate any of our
posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rul~,$. governing
commentaries and discussions. You are fully responsible for the content that you post.

Sponsored Links

Dermatologists Hate Her


Clever Mom Uses $5 Trick to Erase Wrinkles and Look Younger Instantly.
www.vanityreports.com/wrinkle-free

Groupon" Official Site


1 ridiculously huge coupon a day. Like doing your city at 90% off!
www.Groupon.com

Spinal Stenosis Pain?


See where laser Spine Surgery Began-No Hospitalization!
www.bonati.com

Buya link here

© 2010 The Washington Post Company

30f3 2/14/2011 3:16PM


EXHIBIT B
SPECIAL PROJECTS BY CONGRESSMAN DRAW COMPLAINTS '" http://query.nytimes.com/gst/fullpage.html?res=9BO 1E6D61130F93B...

This copy is for your personal, noncommercial use only. You can order presentation-ready copies for distribution to
your colleagues, clients or customers, please click here or use the "Reprints" tool that appears next to any article.
Visit www.nytreprints.com for samples and additional information. Order a reprint of this article now. »

April S, 2006

SPECIAL PROJECTS BY CONGRESSMAN DRAW


COMPLAINTS
By JODI RUDOREN; David Johnston and Aron Pilhofer contributed reporting for this article.

As lawmakers have increasingly slipped pet projects into federal spending bills over the past
decade, one lawmaker has used his powerful perch on the House Appropriations Committee to
funnel $250 million into five nonprofit organizations that he set up.

Those actions have prompted a complaint to federal prosecutors that questions whether any of
that taxpayer money helped fuel a parallel growth in his personal fortune.

The most ambitious effort by the congressman, Alan B. Mollohan, is a glistening glass-
and-steel structure with a swimming pool, sauna and spa rising in a former cow pasture in
Fairmont, W.Va., thanks to $103 million of taxpayer money he garnered through special
spending allocations known as earmarks.

The headquarters building is likely to sit largely empty upon completion this summer, because
the Mollohan-created organization that it was built for, the Institute for Scientific Research, is
in disarray, its chief executive having resigned under a cloud of criticism over his $500,000
annual compensation, also paid by earmarked federal money.

The five organizations have diverse missions but form a cozy, cross-pollinated network in the
forlorn former coal capitals of north-central West Virginia. Mr. Mollohan has recruited many of
their top employees and board members, including longtime friends or former aides, who in
turn provide him with steady campaign contributions and positive publicity in their
newsletters.

The conservative National Legal and Policy Center in Falls Church, Va., filed a soo-page
complaint with the United States attorney for the District of Columbia on Feb. 28 challenging
the accuracy of Mr. Mollohan's financial disclosure forms. The forms show a sharp spike in
assets and income from rental properties from 2000 to 2004.

Federal authorities said yesterday that they were reviewing the complaint, which was reported
in The Wall Street Journal.

The case has led several Republican leaders to call for Mr. Mollohan's removal from the House
ethics committee, where he is the senior Democrat.

lof8 2/14/2011 3: 17 PM
SPECIAL PROJECTS BY CONGRESSMAN DRAW COMPLAINTS ... http://query.nytimes.com/gst/fullpage.html?res=9BOIE6D6 I 130F93B ...

In a statement yesterday, he said, "These groups were not created to benefit me in any way,
and they never have."

Mr. Mollohan noted that the National Legal and Policy Center had attacked other Democrats
and their union supporters and that it began its inquiry last May after he had voted against
Republican efforts to water down House ethics rules.

"Obviously, I am in the crosshairs ofthe National Republican Party and like-minded entities,"
said Mr. Mollohan, who faces a serious electoral challenge in November. Vice President Dick
Cheney is scheduled to headline a fund-raiser on April 21 for the Republican whom the White
House recruited to run against Mr. Mollohan.

"They are angry at me, and I fully expect that from now until November they will continue to
make baseless charges against me, my record and my family," the statement said. "I will
vigorously defend my service and not be intimidated by their heavy-handed tactics."

In previous interviews, Mr. Mollohan acknowledged that he had failed to pay 2004 taxes on
income from rental properties in Washington and North Carolina, resulting in a state lien of
$8,948.28 being filed on Dec. 1. He said the case was resolved by final payments of all taxes,
interest and penalties by January.

"Obviously it's totally my fault," he said. "I just neglected this, and it was paid late, and I regret
that."

In the last three years, Mr. Mollohan, a Democrat first elected in 1982 to a seat long held by his
father, has bought $2 million worth of property on Bald Head Island, N.C., with Laura Kurtz
Kuhns, a former employee who now runs one of the organizations and is on the boards of two
others.

He was unapologetic about his earmarks, saying that local lawmakers knew their constituents'
needs best, and that he was hardly alone in mainlining money back home. "The amount of
money in the transportation bill spent in Illinois in earmarked projects is astronomical," he
said. "It puts $100 million on the I.S.R. building in real perspective."

The earmarking occurred as an abundance oflocal projects was added to spending bills outside
the normal budget review, from $32.9 billion in 2000 to $64 billion in 2006, the
Congressional Research Service said. Although it is impossible to trace individual earmarks for
certain, an analysis by Citizens Against Government Waste, a Washington watchdog, found
$480 million added in the House or in conference committees, most likely by Mr. Mollohan, for
his district since 1995. That sum helped West Virginia rank fourth on the watchdog list --
$131.58 for each of the 1.8 million West Virginians this year.

Although Mr. Mollohan's mentor, Senator Robert C. Byrd, has long blanketed the state in
bacon in the form oflarge public works projects and federal complexes, Mr. Mollohan has
directed more than half his earmarks to his five organizations of his design.

20f8 2/14/2011 3: 17 PM
SPECIAL PROJECTS BY CONGRESSMAN DRA W COMPLAINTS ... http://query.nytimes.com/gst/fullpage.htm1?res=9BO 1E6D61130F93 B...

Several people involved in the appropriations process said no other lawmaker employed that
strategy to the same extent.

The first and largest is the West Virginia High Technology Consortium Foundation, which is
absorbing the troubled Institute for Scientific Research. Another, the Canaan Valley Institute,
works on stream restoration and wastewater treatment. The Vandalia Heritage Foundation
redevelops dilapidated buildings, and the MountainMade Foundation helps artisans market
wares.

"He's basically judge, jury and executioner for all this money," said Keith Ashdown, vice
president of the Taxpayers for Common Sense in Washington.

Of the empty building in Mr. Mollohan's hometown, Fairmont, Mr. Ashdown added, "This is
sort of Mollohan's field of dreams, but in his case, he's building it, and it doesn't look like
they're going to come."

Kenneth F. Boehm, chairman ofthe National Legal and Policy Center, said the bulk of his
complaint to the federal prosecutors was made up of public documents that showed 260
instances of omitted or undervalued assets on the financial disclosure forms that Mr. Mollohan
filed with the ethics committee from 1996 to 2004.

Those forms show a jump in Mr. Mollohan's portfolio from less than $500,000 in assets
generating less than $80,000 in income in 2000 to at least $6.3 million in assets earning
$200,000 to $1.2 million in 2004, along with large mortgage debts.

Among the concerns in the complaint, Mr. Boehm said, are commissions that Ms. Kuhns's
husband, Donald, received as a real estate broker on deals for the organization that she
controls. The couple have donated at least $10,000 to Mr. Mollohan's political committees
since 1998.

The complaint also looks at whether Mr. Mollohan properly reported 27 condominiums in the
Remington, near Foggy Bottom in Washington. He and his wife own the building with a
cousin, Joseph 1. Jarvis, whose business once received money from a federal contract in Mr.
Mollohan's district.

"The $64,000 question that's all over this thing is during the period of time all these earmarks
went to very closely associated nonprofits run by people who were very close to him, did any of
the money go from Point A to Point B?" Mr. Boehm asked in an interview. "Did any of his
newfound wealth result from, in any way, shape or form, individuals who had benefited from
his official actions?"

Lifeblood for a Weak Economy

About 75 miles southeast of Fairmont along windy roads in Thomas (pop. 473) sits the Buxton
& Landstreet Building, whose lifeblood is Mr. Mollohan's largess. The Vandalia Heritage

3 of 8 2/14/2011 3: 17 PM
SPECIAL PROJECTS BY CONGRESSMAN DRAW COMPLAINTS ... http://query.nytimes.comigstffullpage.html?res=9BO I E6D6II30F93B ...

Foundation used $1.2 million in earmarks from the Department of Housing and Urban
Development to help transform the yellow-brick behemoth, built in 1901 as the coal company
store, from broken down to bustling.

The first floor is a vibrant gallery where the MountainMade Foundation, relying on its own
earmarks from the Small Business Administration to pay Vandalia its $5,166.67 in monthly
rent, sells items like Mr. Byrd's thick autobiography for $35 and a maple desk for $5,250.

Upstairs, 41 people work on stream restoration and wastewater treatment in the Canaan Valley
office, whose $5,100 rent to Vandalia is covered by earmarks from the Environmental
Protection Agency and the National Oceanic Atmospheric Administration.

"What else are you going to do to reinvent this economy?" asked Ms. Kuhns, Mr. Mollohan's
former aide who runs Vandalia and is the co-owner of the North Carolina beach property with
the congressman. "A lot of what we do would not get done otherwise."

Created in 2000 to help artisans market their creations over the Internet -- Mr. Mollohan
favors the earthenware pottery -- MountainMade also runs glassblowing, spinning and
felt-malting workshops in another downtown building that Vandalia renovated.

The Canaan Valley Institute, which grew out of an effort to create a wildlife refuge near
property that Mr. Mollohan owns, is building a $33 million headquarters with classrooms and
laboratories on 3,208 acres that it bought with earmarks he secured.

Vandalia owns more than a score of properties throughout Mr. Mollohan's district like the
Baltimore & Ohio station in Grafton that it is turning into a museum and office space and lots
in Fairmont, where it plans to build houses. Earmarks from HUD bought the mothballed
Waldo Hotel in Clarksburg ($230,000 in 2000) and 1,129 acres in Canaan Valley ($2-4 million
in 2004).

Mr. Mollohan and the organizations' managers said their goal was to wean from earmarks and
be self-sustaining. But Canaan Valley, the oldest, continues to rely on earmarks for 97 percent
of its money. Last year, MountainMade received $1,085,308 from the S.RA., nearly twice its
$553,000 in sales. MountainMade also had a $124,000 state grant.

As for Vandalia, 92 percent of its $31.5 million in grants since 1999 arrived through federal
earmarks. Separately, the 2004 tax return for the organization shows that 96 percent of its
$8.5 million revenue was from government grants.

None ofthe three groups have dues-paying members, like many such organizations, or run
regular fund-raisers. They worry about the crackdown on earmarks. The Vandalia pipeline has
begun to dry up since Mr. Mollohan left the subcommittee that appropriates HUD money. The
organizations said success in finding other sources had been sporadic.

The Quid Pro Quos

4 of 8 2/14/2011 3: 17 PM
SPECIAL PROJECTS BY CONGRESSMAN DRA W COMPLAINTS ... http://query.nytimes.com/gst/fullpage.html?res=9BO 1E6D61130F93B ...

"The congressman gave us money" for this or that is how the groups' leaders frequently explain
their programs. And they generally return the favor at fund-raisers.

A review of campaign finance records by The New York Times shows that from 1997 through
February 2006, top-paid employees, board members and contractors ofthe five organizations
gave at least $397,122 to Mr. Mollohan's campaign and political action committees.

Thirty-eight individuals with leadership roles, including all five chief executives -- all but one
of whose 2004 salaries outpaced the $98.456 national average among nonprofit leaders --
contributed, often giving the maximum allowed.

At the same time, workers at companies that do business with the federally financed groups
were among Mr. Mollohan's leading contributors. Employees ofTMC Technologies, which had
a $50,000 contract with Vandalia in 2003, have given $63.450 since 1998. Workers at
Electronic Warfare Associates and Man Tech International, military contractors that rent space
from the technology consortium and whose chief executives are on the board of the Institute for
Scientific Research, combined to give $86,750.

For Kate McComas, a weaver who is the executive director of MountainMade, the $1,000 check
that she wrote in March 2004 at a Mollohan fund-raiser was a first. "I bought a pair of high
heels to wear," Ms. McComas recalled. "I thank him every occasion I see him for the
opportunity we have here."

Asked whether contributions were required or expected, Kevin Niewoehner, the departed chief
executive of the Institute for Scientific Research, said: " 'Required' is such a strong term. The
political environment and the access that goes along with it has a number of expectations that
involves what is appropriate and what isn't appropriate." He added that the first hint that he
was falling out of favor occurred in October, when a $250 check he wrote to the campaign was
returned uncashed.

"I received invitations to those events on a regular basis," he said. "I was invited to participate,
and I participated."

'Teaming to Win'

Mr. Mollohan scoffed at the suggestion that the overlap among the groups that he supports
and his supporters meant anything more than a meeting of the minds.

"I like to think I'm supported because I work hard," he said. "Because I bring a collaborative, a
'teaming to win,' if you will, approach to solving the really difficult challenges facing West
Virginia."

The team includes overlapping rosters among the five organizations. In addition to Ms.
Kuhns's multiple roles, Jack Carpenter, an old friend ofthe congressman, is vice president of
the consortium and chairman of the MountainMade board. The board once included Mr.

50f8 2/14/20113:17 PM
SPECIAL PROJECTS BY CONGRESSMAN DRA W COMPLAINTS ... http://query.nytimes.com/gst/fullpage.html ?res=9BO IE6D61130F93 B ...

Mollohan's wife, Barbara.

Raymond A. Oliverio, executive vice president of the consortium, is also treasurer of the Robert
H. Mollohan Foundation, named for the congressman's late father. Gina Fantasia, Vandalia's
legal counsel, moved over last year from the Institute for Scientific Research. Her brother Nick,
mayor of Fairmont, is chairman of the Vandalia Redevelopment Corporation, a heritage
foundation sister.

"He effectively referred to it as a family," said a person involved in the Mollohan network,
likening the operation to keiretsu, the Japanese concept of intermeshed corporate boards.

Down the hill from the steel structure here is the more pedestrian $14 million Alan B.
Mollohan Innovation Center, built with $3.5 million in earmarks. It is the home of the
high-tech consortium, which began in 1990 as six small companies hoping to seed a new
economic area. The center has 200 affiliates throughout the state. Earmarks are its engine,
underwriting high-tech projects like AmberView, which seeks to create a national database of
three-dimensional school photographs to help find missing children.

The consortium has had better luck following earmarks with competitive grants. Its
Information Research Corporation was spun off as a for-profit subsidiary after obtaining a $10
million Navy contract to build 2,500 BomBots, robotlike tractors that remotely deliver
explosives.

"The congressman has enabled programs and entities to get started," said Tom Witt, director of
the West Virginia University Bureau of Business and Economic Research. "But at some point,
they're going to have to make the transition or they'll die."

The big test will be the $134 million Institute for Scientific Research building, three-quarters
paid by NASA and HUD earmarks. The 57-member staff is barely large enough to fill a corner
of the ooo-plus capacity of the building.

Photos: Alan B. Mollohan, left, senior Democrat on the House ethics committee, with
Commerce Secretary Carlos Guitierrez at an appropriation hearing yesterday. (Photo by
Stephen Crowley/The New York Times); (Photographs by Vandalia Foundation [Canaan Valley
Institute, MountainMade Foundation] and Jeff Swensen for The New York Times)(pg. AlO)

Chart: "Local Projects, Federal Funds"


Alan B. Mollohan's Congressional district in West Virginia has received $480 million in special
spending allocations known as earmarks since 1995. About half the money has gone to the five
organizations at right, all of which Mr. Mollohan set up.

Earmarks for Mr. Mollohan's Congressional District

Graph tracks earmarks for the following groups since 1995.

60f8 2/14/20113:17PM
SPECIAL PROJECTS BY CONGRESSMAN DRAW COMPLAINTS ... http://query.nytimes.com/gst/fullpage.html ?res=9BO 1E6D61130F93 B...

West Virginia High Technology Consortium Foundation


FOUNDED: 1990
EMPLOYEES: 148
TOP SALARY: $260,000
ACTIVITIES: Runs its own research projects and works with companies to seed hightech
projects. Planning a technology park.
EARMARKS SINCE 1995: $39 million from HUD, S.B.A. and the Justice Department

Institute for Scientific Research


FOUNDED: 1990
EMPLOYEES: 57
TOP SALARY: $362,286
ACTIVITIES:Conducts basic information technology and engineering research for federal
agencies,
EARMARKS SINCE 1995: $108 million from NASA and HUD

Canaan Valley Institute


FOUNDED: 1995
EMPLOYEES: 49
TOP SALARY: $147,450
ACTIVITIES: Partners with local groups on environmental problems, particularly stream
restoration and wastewater treatment.
EARMARKS SINCE 1995: $71 million (awarded funds) from E.P.A. and NOAA

Vandalia Heritage Foundation


FOUNDED: 1998
EMPLOYEES: 12
TOP SALARY: $102,000
ACTIVITIES: Restores historic buildings, acquires property for development and runs "legacy"
projects of oral histories.
EARMARKS SINCE 1995: $28 million from HUD

MountainMade Foundation
FOUNDED: 2000
EMPLOYEES: 19
TOP SALARY: $65,565
ACTIVITIES: Helps local artisans sell wares. Runs craft workshops.
EARMARKS SINCE 1995: $8 million from S.B.A.

(Sources by Citizens Against Government Waste; tax returns of the five nonprofits)(pg. AlO)

70f8 2/14/20113:17 PM
SPECIAL PROJECTS BY CONGRESSMAN DRAW COMPLAINTS ... http://query.nytimes.com/gst/fullpage.html ?res=9BO IE6D61130F93 B...

Map of West Virginia highlighting First Congressional District: Fairmont, W.Va., is the
hometown of Representative Alan B. Mollohan. (pg. AlO)

CQPYrighL2QJJ IbS!NS!wYQrk]m:~$CQnJP?J:lY H9nJS! PriY?GYPQliGY $g?rch CQU?G!iQD$ XM~ HS!lp CQot?Gt


V$I2?GkJ9I9P

80f8 2/14/2011 3:17PM