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Tuesday, October 17, 2006

Reid used campaign funds to pay bonuses to staff

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Senate Minority Leader Harry Reid has been using campaign donations instead of his personal money to pay Christmas bonuses for the support staff at the Ritz-Carlton, where he lives in an upscale condominium.

Federal election law bars candidates from converting political donations for personal use.

Questioned about the expenditures by the Associated Press, Mr. Reid's office said yesterday that he was personally reimbursing his campaign for $3,300 in donations he had directed to the staff holiday fund at his residence.

Mr. Reid also announced he was amending his ethics reports to Congress to more fully account for a Las Vegas land deal, highlighted in an AP story last week, that allowed him to collect $1.1 million in 2004 for property he hadn't personally owned in three years.

In that matter, the senator hadn't disclosed to Congress that he first sold land to a friend's limited liability company back in 2001 and took an ownership stake in the company. He collected the seven-figure payout when the company sold the land again in 2004 to others.

Mr. Reid portrayed the 2004 sale as a personal sale of land, making no mention of the company's ownership or its role in the sale.

Ethics experts told the AP that Mr. Reid's inaccurate accounting of the deal to Congress appeared to violate Senate ethics rules and raised other issues concerning taxes and potential gifts.

Mr. Reid said his amended ethics reports would list the 2001 sale and the company, called Patrick Lane LLC. He said the amended reports would also divulge two other smaller land deals he had failed to report to Congress.

"I directed my staff to file amended financial disclosure forms noting that in 2001 I transferred title to the land to a limited liability corporation," Mr. Reid said.

He said he believed the 2001 sale did not alter his ownership of the land but that he agreed to file the amended reports because "I believe in ensuring all facts come to light."

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