CREW I

citizens for responsibility and ethics in washington

October 12,2010

Office of Information Policy U.S. Department of Justice 1425 New York Avenue Suite 11050

Washington, D.C. 20530-0001

Re: FOIA Appeal in Request No. 10-3477

Dear Sir/Madam:

Citizens for Responsibility and Ethics in Washington (CREW) hereby appeals the refusal of the Executive Office of the United States Attorneys (EOUSA) to process and release to CREW any records responsive to our Freedom ofInformation Act (FOIA) request of September 27,2010.

By letter dated and sent by facsimile on September 27,2010, CREW requested records of the U.S. Attorney's Office for the Eastern District of Virginia pertaining to the investigation and prosecution of Paul 1. Magliocchetti, the founder and owner of PM A Group, Inc., for false statements, making illegal conduit campaign contributions, making illegal corporate campaign contributions, and any other charges at issue in United States of America v. Paul. Magliocchetti, Crim. No. 1:10-cr-287 (E.D. Va.). For your convenience, a copy of this request is attached as Exhibit A. In justifying its request for a public interest fee waiver, CREW explained that the requested records are likely to shed light on the extent to which the Department of Justice (DOJ) has taken any steps to prevent Mr. Magliocchetti and the public from learning about any aspect of the United States' investigation and prosecution ofMr. Magliocchetti, including his relationships with members of Congress. Highly unusual provisions in the government's written plea agreement with Mr. Magliocchetti waiving all of his FOIA and Privacy Act rights suggest the government seeks to prevent the public from learning whether any members of Congress knew or should have known ofMr. Magliocchetti's illegal activities. CREW specifically noted its willingness to discuss with EOUSA the scope of its request and whether it can be narrowed or modified to better enable DOJ to process it.

In response, EOUSA sent CREW a form letter dated October 5, 2010 (attached as Exhibit B), acknowledging receipt of CREW's request and indicating that without express authorization and consent of "the third party" - presumably Mr. Magliocchetti - any release to CREW would violate the Privacy Act. EOUSA also claimed the records are "generally exempt from disclosure" pursuant to Exemptions 6 and 7(C) of the FOIA. Finally, EOUSA offered to release any public records maintained in its files upon further request by CREW.

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

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FOIA Appeal October 12,2010 Page Two

By refusing at the outset to process any aspect of CREW's request that seeks anything beyond public record material - described as court records, news clippings, and the like - EOUSA has failed to meet its most basic obligations under the FOrA. EOUSA's reflexive reliance on the Privacy Act and Exemptions 6 and 7(C) fails to take into account the very public nature of the government's prosecution ofMr. Magliocchetti and the documents and information the government already has made public concerning Mr. Magliocchetti's crimes, including an indictment, plea agreement, and statement of facts. This high-profile prosecution has generated considerable media interest and the DO] itself has taken several actions to increase public attention to this matter.

For example, on August 5, 2010, both the u.s. Attorney's Office for the Eastern District of Virginia and DO] issued identical press releases touting the arrest of Mr. Magliocchetti, identified as the founder and president of PM A Group Inc., for making illegal campaign contributions and false statements to a federal agency.' Fully five paragraphs of the press releases describe the factual contents of the indictment and the illegal conduct with which Mr. Magliocchetti was charged. DO] also issued a press release on September 24,2010, (attached as Exhibit D), explaining in detail the guilty plea Mr. Magliocchetti had entered into that day, the nature of his illegal conduct, and the availability of corroborating evidence the Federal Election Commission had made public that same day. DOl's press release also included statements from Assistant Attorney General Lanny A. Breuer and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia describing Mr. Magliocchetti's illegal conduct and the significance of this prosecution.

Moreover, as CREW explained in its letter of September 27,2010, to Matthew Miller, Director of DOl's Office of Public Affairs, expedition of CREW's ForA request is warranted in view of the widespread and exceptional media interest in this matter." Reports have described Mr. Magliocchetti as "one of the most powerful and influential lobbyists in Washington," Dan Eggen and Maria Glod, Ex-Lobbyist Paul Magliocchetti Charged With Campaign-Finance Fraud, The Washington Post, Aug. 6,2010. The notoriety ofMr. Magliocchetti and his crimes, the public attention given to this matter, and DOl's own role in making the public aware of this prosecution all demonstrate that any privacy interest Mr. Magliocchetti has clearly is outweighed by the compelling public interest.

That a balancing of interests under Exemptions 6 and 7(C) would support disclosure of the requested information is also evidenced by the inclusion in Mr. Magliocchetti's plea agreement with the government of a waiver of all of his rights under the Privacy Act and the FOrA. As CREW explained in its initial request, this waiver strongly suggests DO] seeks to

! These press releases are attached as Exhibit C.

2 This letter is attached as Exhibit E.

FOIA Appeal October 12,2010 Page Three

prevent the public from learning whether any members of Congress knew or should have known of Mr. Magliocchetti' s illegal activities. Revelation of information confirming these concerns would advance "the FOIA's central purpose ... to ensure that the Government's activities be opened to the sharp eye of public scrutiny." Us. Dep 't of Justice v. Reporters Comm. for Freedom of Press, 489 U.S. 749,775 (1989).

Finally, we note that EOUSA's treatment of CREW's FOIA request directly conflicts with the treatment afforded identical requests by DOl's Criminal Division and Office of Information Policy, both of which are processing CREW's requests, having granted our request for expedition.

Accordingly, EOUSA's initial determination that it could process CREW's request only with the express authorization and consent of Mr. Magliocchetti plainly is in error and must be reversed. EOUSA must be ordered to process CREW's request and withhold information pursuant to Exemptions 6 and 7(C) only after weighing any privacy interests against the compelling public interest in disclosure. EOUSA's reliance on the Privacy Act to justify refusing to process CREW's request is equally in error, given the express acknowledgment in the Privacy Act that where the FOIA requires disclosure, the Privacy Act is not a bar to that disclosure. 5 U.S.C. § 552a(b)(2).

Respectfully submitted, •

nne L. Weismann Chief Counsel

Enclosures

EXHIBIT A

CREW I

citizens for responsibility and ethics in washington

September 27,2010

By Facsimile: 202-252-6047

William G. Stewart, II

Assistant Director, FOIA/Privacy Unit Executive Office for United States Attorneys U.S. Department of Justice

Room 7300

600 E Street, N.W. Washington, D.C. 20530-0001

Re: Freedom of Information Act Request

Dear Mr. Stewart:

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") regulations, 28 C.F.R. Part 16.

Specifically, CREW seeks all records of the U.S. Attorney's Office for the Eastern District of Virginia pertaining to the investigation and prosecution of Paul J. Magliocchetti, the founder and owner of PMA Group, Inc., for false statements, making illegal conduit campaign contributions, making illegal corporate campaign contributions, and any other charges at issue in United States 0/ America v. Paul J Magliocchetti, Crim. No. 1:10-cr-287 (E.D. Va.).

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, audiotapes, videotapes, and photographs.

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 of Scientology 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 of Justice, 830 F.2d 210,223-24 (D.C. Cir. 1987) (emphasis added). Further, "the

1400 Eye Street, NW., Suite 450, Washington, D.C. 20005 I 202.408.5565 phone I 202.588.5020 fax I www.citizensforethics.org

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William O. Stewart September 27,2010 Page 2

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. '" ld. at 224 (citing Mead Data Central v. us. Dep 't of the Air Force, 566 F.2d 242, 251 (D.C. Cir. 1977)).

In the event that 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 of nonsegregability 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 the extent to which this request can be narrowed or modified to better enable DOJ to process it within the FOIA's deadlines.

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 likely will contribute to a better understanding of relevant government procedures by CREW and the general public in a significant way. Moreover, the request primarily and fundamentally is 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).

Specifically, these records are likely to contribute to greater public awareness of the extent to which DOJ has taken any steps to prevent Mr. Magliocchetti and the public from learning about any aspect of the United States' investigation and prosecution ofMr. Magliocchetti including, but not limited to, preventing any inquiry into or public airing of Mr. Magliocchetti's relationships with members of Congress. Unprecedented provisions in the government's written plea agreement with Mr. Magliocchetti waiving all FOIA and Privacy Act rights Mr. Magliocchetti has in this information and the failure of the plea agreement to require Mr. Magliocchetti's continued cooperation suggest the government seeks to prevent the public from learning whether any members of Congress knew or should have known of Mr. Magliocchetti's illegal activities. The requested documents would shed light on this issue and how the Department of Justice is fulfilling its responsibilities to investigate and prosecute crimes.

William G. Stewart September 27,2010 Page 3

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 is dedicated to empowering citizens to have an influential voice in government decisions and in the government decision-making process. 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. In addition, CREW will disseminate any documents it acquires from this request to the public through www.scribd.com and CREW's website, which also contains links to thousands of pages of documents CREW acquired from multiple FOIA requests. See www.citizensforethics.org. CREW's website includes documents relating to CREW's FOIA litigation, Internal Revenue complaints, and Federal Election Commission complaints.

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 '1 Sec. Archive v. Us. Dep 't of Defense, 880 F.2d 1381, 1386 (D.C. Cir. 1989), the COUli 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; "[i]t 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 of the news media. '" 132 Congo Rec.

S 14298 (daily ed. Sept. 30, 1986) (emphasis added), cited in id.

CREW routinely and systematically disseminates information to the public in several ways. First, CREW maintains a frequently visited website, www.citizensforethics.org, that received 75,629 visits in August 2010. The website reports the latest developments and contains in-depth information about a variety of activities of government agencies and officials. In addition, CREW posts all of the documents it receives under the FOIA on www.scribd.com. and that site has received 412,057 visits to CREW's documents since April 14,2010.

Second, since May 2007, CREW has published an online newsletter, CREWCuts, that currently has 15, 731 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 . ci tizensforethics. org/newsletter.

William G. Stewart September 27,2010 Page 4

Third, CREW publishes a blog, Citizens blogging for responsibility and ethics in Washington, that reports on and analyzes newsworthy developments 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 1,174 hits in August 2010.

Finally, CREW has published numerous reports to educate the public about government ethics and corruption, including agencies' failure to comply with their record keeping responsibilities. See Record Chaos, which examines agency compliance with electronic record keeping responsibilities; The Revolving Door, a comprehensive look into the post-government activities 01'24 former members of President Bush's cabinet; and Those Who Dared: 30 Officials Who Stood Up For Our Country. These and all other CREW's reports are available at http://www. citizensforethics. org/reports.

Based on these extensive publication activities, CREW qualifies for a fee waiver as a "representative of the news media" under the FOIA.

Request for Expedition

Pursuant to 5 U.S.c. § 552(a)(6)(E)(I) and 28 C.F.R. § 16.5(d)(iv), CREW requests that your office expedite the processing of this request. As required by DO] regulations, 28 C.F.R. § 16.5( d)(2), CREW is submitting its request for expedition to the director of Public Affairs. A copy of CREW's request is enclosed.

CREW also requests that DO] expedite its request pursuant to 28 C.F.R. § 16.5(d)(ii). As explained above, CREW is engaged primarily in the dissemination of information that it gathers from a variety of sources, including the FOIA, and seeks the information requested in this FOIA request for the express purpose of disseminating it to the public. In addition to the websites on which CREW posts all documents it acquires through the FOIA, CREW's website contains numerous examples of its efforts, including reports it has published based on information it receives through the FOIA. For example, CREW's report, Record Chaos: The Deplorable State of Electronic Record Keeping in the Federal Government, was based in significant part on documents CREW requested under the FOIA from a variety of agencies, including DOl.

There is a particular urgency to inform the public about the extent to which DO] has attempted to suppress information pertaining to members of Congress and their relationship with Mr. Magliocchetti and PMA Group, Inc. and the exact nature of that information in light of the upcoming congressional elections. Whether and to what extent members of Congress running for reelection participated in Mr. Magliocchetti's scheme to make hundreds of thousands of dollars in illegal conduit and corporate federal campaign contributions or were the knowing recipients of any of those dollars bear directly on their suitability for public office. In light of the

William G. Stewart September 27,2010 Page 5

critical importance of this information to voters in the upcoming elections, immediate action is required.

Pursuant to 28 C.F.R. § 16.5(d)(3), I hereby certify that the basis for CREW's request for expedition, as outlined above, is true and correct to the best of my knowledge and belief.

If you have any questions about this request or foresee any problems in releasing fully and on an expedited basis the requested records, please contact 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 making such determination. Please send the requested records to Anne L. Weismann, Citizens for Responsibility and Ethics in Washington, 1400 Eye Street, N.W., Suite 450, Washington, D.C. 20005.

Si cerely,

~nne L. Weismann Chief Counsel

Enclosure

cc: Matthew Miller

EXHIBITB

U.S. Department of Justice

Executive Office for United States Attorneys Freedom of Information & Privacy Staff

600 E Street, N. W, Suite 7300, Bicentennial Building Washington, DC 20530-0001

(202) 252-6020 FAX: 252-6047 (www.usdo(gov/usao)

Requester: Anne L. Weismann

Request Number:_1"'-'0"--=3_,_47..:,_7:...._ _

Subject of Request: Paul Magliocchetti

Dear Requester:

The Executive Office for United States Attorneys has received your Freedom of Information Act request and assigned the above number to the request.

You have requested records concerning a third party (or third parties). Records pertaining to a third party generally cannot be released absent express authorization and consent of the third party, proof that the subject of your request is deceased, or a clear demonstration that the public interest in disclosure outweighs the personal privacy interest and that significant public benefit would result from the disclosure of the requested records. Since you have not furnished a release, death certificate, or public justification for release, the release of records concerning a third party would result in an unwarranted invasion of personal privacy and would be in violation of the Privacy Act, 5 U.S.C.§ 552a. These records are also generally exempt from disclosure pursuant to sections (b)(6) and (b)(7)(C) of the Freedom ofInformation Act, 5 U.S.C. § 552.

We will release, if requested, any public records maintained in our files, such as court records and news clippings, without the express authorization of the third party, a death certificate, or public justification for release. If you desire to obtain public records, if public records exist in our files, please reply with a letter asking for the public documents. Please send your letter to the address above.

Should you obtain the written authorization and consent of the third party for release of the records to you, please submit a new request for the documents accompanied by the written authorization. A form is enclosed to assist you in providing us the authorization and consent of the subj ect of your request. Your name should appear in the section tided "Optional." The authorization must be notarized or signed under penalty of perjury pursuant to 18 U.S.C. § 1001. Please send your new request to the address above.

[] Please note that your original letter was split into separate files ("requests"), for

processing purposes, based on the nature of what of what you sought. Each file will have a separate Request Number (listed below), for which you will receive a separate response:

NOT SPLIT

(Page 1 of2) Form No. 006 - 3/10

This is our final action on this above-numbered request. You may appeal this decision in this matter by writing to the Office of Information Policy, Department of Justice, 1425 New York Avenue, Suite 11050, Washington, D.C. 20530-0001. Both the envelope and the letter of appeal should be marked "FOIA Appeal." Your appeal must be received by OIP within 60 days from the date of this letter. If you are dissatisfied with the results of any such administrative appeal, judicial review may thereafter be available in U.S. District Court. 28 C.F.R. § 16.9.

Sincerely,

William G. Stewart II Assistant Director

Enclosure

(Page 2 of2) Form No. 006 - 3/10

U.S. Department of Justice

Certification of Identity

Privacy Act Statement. In accordance with 28 CFR Section 16.41 (d) personal data sufficient to identify the individuals submitting requests by mail under the Privacy Act of 1974, 5 U.S.c. Section 552a, is required. The purpose of this solicitation is to ensure that the records of individuals who are the subject of U.S. Department of Justice systems of records are not wrongfully disclosed by the Department, Failure to furnish this information will result in no action being taken on the request. False information on this form may subject the requester to criminal penalties under 18 U.S.c. Section 1001 and/or 5 U.S.c. Section 552a(i)(3).

Public reporting burden for this collection of information is estimated to average 0.50 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information, Suggestions for reducing this burden may be submitted to Director, Facilities and Administrative Services Staff, Justice Management Division, U.S. Department of Justice, Washington, DC 20530 and the Office of Information and Regulatory Affairs, Office of Management and Budget, Public Use Reports Project (1103-0016), Washington, DC 20503.

Full Name of Requester 1

Citizenship Status 2 Social Security Number 3 _

Current Address _

Date of Birth Place of Birth _

I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct, and that I am the person named above, and I understand that any falsification of this statement is punishable under the provisions of 18 U.s.C. Section 1001 by a fine of not more than $10,000 or by imprisonment of not more than five years or both, and that requesting or obtaining any record(s) under false pretenses is punishable under the provisions of 5 U.S.C. 552a(i)(3) by a fine of not more than $5,000.

Signature 4 Date ___

OPTIONAL: Authorization to Release Information to Another Person

This form is also to be completed by a requester who is authorizing information relating to himself or herself to be released to another person.

Further, pursuant to 5 U.S.c. Section 552u(b), I authorize the U.S. Department of Justice to release any and all information relating to me to:

Print or Type Name

1 Name of individual who is the subject of the record sought.

2 Individual submitting a request under the Privacy Act of 1974 must be either "a citizen of the United States or an Alien lawfully admitted for permanent residence," pursuant to 5 U.S.c. Section 552a(a)(2). Requests will be processed as Freedom of Information Act requests pursuant to 5 U.S.C. Section 552, rather than Privacy Act requests, for individuals who are not United States citizens or aliens lawfully admitted for permanent residence.

3 Providing your social security number is voluntary. You are asked to provide your social security number only to facilitate the identification of records relating to you. Without your social security number, the Department may be unable to locate any or all records pertaining to you.

4 Signature of individual who is the subject of the record sought.

FORM APPROVED OMB NO. 1103-0016 EXPIRES 10/31110

FORM 001-361 APR.OI

EXHIBIT C

U S Attorneys' Office Eastern District of Virginia Press Release

Page 1 of2

i1eJlalillt.ent of Jltsiir]!

FOR IMMEDIATE RELEASE:

CRM

THURSDAY, AUGUST 5, 2010 Web Address:.\YWW.D01..,(!J)Y

(202) 514-2007 TDD (202) 514-1888

LOBBYIST INDICTED FOR ALLEGEDLY ORCHESTRATING ILLEGAL CAMP AIGN CONTRIBUTION SCHEME

WASHINGTON - Paul Magliocchetti, the founder and president of PMA Group Inc., a lobbying firm in Arlington, Va., was arrested today on charges of making illegal campaign contributions and making false statements to a federal agency, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Neil H. MacBride of the Eastern District of Virginia and Assistant Director Shawn Henry of the FBI's Washington Field Office.

A federal grand jury returned the indictment on Aug. 4, 2010, which was unsealed today in U.S. District Court in Alexandria, Va., following Magliocchetti's arrest by FBI agents. He will make an initial appearance this afternoon before U.S. Magistrate Judge T. Rawles Jones Jr., in federal court in Alexandria.

According to the indictment, Magliocchetti orchestrated a scheme to make hundreds of thousands of dollars in illegal conduit and corporate federal campaign contributions in an effort to enrich himself and PMA by increasing the firm's influence, power and prestige among the firm's current and potential clients, as well as among the elected public officials to whom PMA and its lobbyists sought access. The federal campaigns that received these funds were unaware of Magliocchetti's alleged scheme.

According to the indictment, the Federal Election Campaign Act limits the amounts individuals can contribute to election campaigns and political campaign committees (PACs), and prohibits corporations from making contributions, either directly or through officers of the corporation. In order to evade the legal limits on individual contributions and the outright ban on corporate contributions, the indictment alleges that Magliocchetti caused straw donors to make contributions to scores of federal campaign committees, which in fact were actually paid for by Magliocchetti or PMA, rather than the named donor.

As alleged in the indictment, Magliocchetti concealed from the Federal Election Commission (FEC) and the public the fact that he and PMA were the true source of the funds for these illegal federal campaign contributions. At the same time, Magliocchetti allegedly ensured that he and PMA received credit for these contributions from the campaigns and candidates by, among other things, using family members, PMA employees and others associated with Magliocchetti as the conduits, and by hosting fund-raising events in which he or his associates delivered the contributions.

http://www.justice.gov/usao/vae/Pressreleases/08-AugustPDF Archivell 0/20 1 00805maglio... 10/7 /2010

U S Attorneys' Office Eastern District of Virginia Press Release

Page z of ?

According to the indictment, from 2003 through 2008, Magliocchetti allegedly used personal and corporate money to advance funds to or reimburse these individuals for the contributions they made on his behalf. The funding of the conduits' contributions took several forms, including Magliocchetti issuing personal checks and authorizing PMA to issue business checks, and to make salary and bonus payments to cover the costs of the contributions. In one instance, Magliocchetti allegedly used two acquaintances that lived near his Florida vacation home to make contributions by, among other things, designating them as members of PM A's board of directors and paying them with PMA funds even though they lived in Florida, never worked as lobbyists and never attended PMA board meetings.

Through this scheme, Magliocchetti caused various federal campaign committees to unknowingly create and file false reports with the FEC regarding the contributions they had received. As alleged in the indictment, these reports, which the FEC made available to the public, falsely stated that the conduits had made contributions, when in fact the contributions were made by Magliocchetti or PMA.

The l l-count indictment charges Magliocchetti with four counts of making illegal campaign contributions in the name of another; four counts of making illegal campaign contributions from a corporation; and three counts of causing federal campaigns to unwittingly make false statements.

An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

In connection with this investigation, Mark Magliocchetti pleaded guilty today before Judge Jones in U.S. District in Alexandria to making illegal corporate campaign contributions. According to court documents, Mark Magliocchetti admitted to receiving payments from an individual and a company with the understanding that those monies were to be used for federal campaign contributions. According to court documents, the amount of contributions made by Mark Magliocchetti and his wife, and funded by the individual and the company, exceeded $120,000 but was less than $200,000. Sentencing has been scheduled for Nov. 16, 2010.

This case is being prosecuted by Trial Attorneys M. Kendall Day, Justin V. Shur and Kevin O. Driscoll of the Criminal Division's Public Integrity Section, and by Assistant U.S. Attorney Mark D. Lytle of the U.S. Attorney's Office for the Eastern District of Virginia. The case is being investigated by the FBI.

###

10-899

http://www.justice.gov/usao/vae/Pressreleases/08-AugustPDF Archivell 0/20 1 00805maglio... 10/7/2010

Lobbyist Indicted for Orchestrating Illegal Campaign Contribution Scheme

Page 1 of2

Horne

Brk>tlng ROC.'111 » Justice News

'iifjiSiMatlf'

Department of Justice

Office of Public Affairs

FOR IMMEDIATE RELEASE

Thursday, August 5, 2010

Lobbyist Indicted for Orchestrating Illegal Campaign Contribution Scheme

WASHINGTON - Paul Magliocchetti, the founder and president of PMA Group Inc. (PMA), a lobbying firm in Arlington, Va., was arrested today on charges of making illegal campaign contributions and making false statements to a federal agency, announced Assistant Attorney Genera] Lanny A. Breuer of the Criminal Division, U.S. Attorney Neil H. Macbride of the Eastern District of Virginia and Assistant Director Shawn Henry of the FBI's washington Field Office.

A federal grand jury returned the indictment on Aug. 4, 2010, which was unsealed today in U.S. District Court in Alexandria, Va., following Maglioechetti's arrest by Fill agents. He will make an initial appearance this afternoon before U.S. Magistrate Judge T. Rawles Jones Jr., in federal court in Alexandria.

According to the indictment, Magliocchetti orchestrated a schcme to make hundreds of thousands of dollars in illegal conduit and corporate federal campaign contributions in an effort to enrich himself and PMA by increasing the firm's influence, power and prestige among the firm's current and potential clients, as well as among the elected public officials to whom PMA and its lobbyists sought access. The federal campaigns that received these funds were unaware of Magliocchetti's alleged scheme.

According to the indictment, the Federal Election Campaign Act limits the amounts individuals can contribute to election campaigns and political campaign committees (PACs), and prohibits

corporations from making contributions, either directly or through officers of the corporation. In order to evade the legal limits on individual contributions and the outright ban on corporate contributions, the indictment alleges that Magliocchetti caused straw donors to make contributions to scores of federal campaign committees, which in fact were actually paid for by lvlagliocchetti or PMA, rather than the named donor.

As alleged in the indictment, Magliocchetti concealed from the Federal Election Commission (FEC) and the public the fact that he and PMA were the true source of the funds for these illegal federal campaign contributions. At the same time, Magliocchetti allegedly ensured that he and PMA received credit for these contributions from the campaigns and candidates by, among other things, using family members, PMA employees and others associated with lI1agliocchetti as the conduits, and by hosting fund-raising events in which he or his associates delivered the contributions.

According to the indictment, from 2003 through 2008, lvlagliocchetti allegedly used personal and corporate money to advance funds to or reimburse these individuals for the contributions they made on his behalf. The funding of the conduits' contributions took several forms, including Magliocchetti issuing personal checks and authorizing PMA to issue business checks, and to make salary and bonus payments to cover the costs of the contributions. In one instance, Magliocchetti allegedly used two acquaintances that lived near his Florida vacation home to make contributions by, among other things, designating them as members of PMA's board of directors and paying them with PMA funds even though they lived in Florida, never worked as lobbyists and never attended I'MA board meetings.

Through this scheme, Magliocchetti caused various federal campaign committees to unknowingly create and file false reports with the FEC regarding the contributions they had received. As alleged in the indictment, these reports, which the FEC made available to the public, falsely stated that the conduits had made contributions, when in fact the contributions were made by Magliocchetti or PMA.

The ll-count indictment charges Magliocchetti with four counts of making illegal campaign contributions in the name of another; four counts of making illegal campaign contributions from a corporation; and three counts of causing federal campaigns to unwittingly make false statements.

In connection with this investigation, Mark Magliocchetti pleaded guilty today before Judge Jones in U.S. District in Alexandria to making illegal corporate campaign contributions. According to court documents, Mark Magliocchetti admitted to receiving payments from an individual and a company with the understanding that those monies were to be used for federal campaign contributions. According to court documents, the amount of contributions made by Mark Magliocchetti and his wife,

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10/7/2010

Lobbyist Indicted for Orchestrating Illegal Campaign Contribution Scheme

and funded by the individual and the company, exceeded $120,000 but was less than $200,000. Sentencing has been scheduled for Nov. 16, 2010.

This ease is being prosecuted by Trial Attorneys M. Kendall Day, Justin V. Shur and Kevin O. Driscoll of the Criminal Division's Public Integrity Section, and by Assistant U.S. Attorney Mark D. Lytle of the U.S. Attorney's Office for the Eastern District of Virginia. The case is being investigated by the FBI.

An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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Lobbyist Pleads Guilty to Role in Illegal Campaign Contribution Scheme

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Urletlng R!X!111 » Justice News

Department of Justice

Office of Public Affairs

FOR IMMEDIATE RELEASE

Friday, September 24, 2010

Lobbyist Pleads Guilty to Role in Illegal Campaign Contribution Scheme

WASHINGTON - Paul Magliocchetti, the founder and president of PMA Group Inc., a lobbying firm, pleaded guilty today in federal court in Arlington, Va., to making hundreds of thousands of dollars in illegal campaign contributions and making false statements to a federal agency, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia.

Magliocchetti was charged in an indictment unsealed on Aug. 5, 2010. According to the indictment, Magliocchetti orchestrated a scheme to make illegal conduit and corporate federal campaign contributions in an effort to enrich himself and PMA by increasing the firm's influence, power and prestige among the firm's current and potential clients as well as among the elected public officials to whom PMA and its lobbyists sought access. The federal campaigns that received these funds were unaware of Magliocchetti's scheme.

Magliocchetti admitted that, from 2005 through 2008, he used members of his family, friends and PMA lobbyists to make unlawful campaign contributions. Aware of the strict limits on individual federal campaign contributions - and the outright ban on corporate contributions - Magliocchetti admitted that he instructed the conduits to write checks out of their personal checking accounts to specific candidates for federal office and that, for the purpose of making these contributions, Magliocchetti advanced funds to or reimbursed these individuals using personal and corporate monies. Magliocchetti also admitted that, through this scheme, he caused various federal campaign committees to unknowingly create and file false reports with the Federal Election Commission (FEC) regarding the contributions they had received. These reports, which the FEC made available to tIte public, falsely stated that the conduits had made contributions, when in fact the contributions were made by Magliocchctti or PMA.

"For years, Mr. Magliocchetti, by using conduit contributors, hid the fact that he and his company were donating significant funds to campaigns in violation of the federal election laws. Mr. Magliocchetti, in an effort to cover his tracks, used family, friends and business associates to secretly funnel hundreds of thousands of dollars to political campaigns, all in an effort to enrich himself and increase his power and prestige," said Assistant Attorney General Lanny A. Breuer, "This case is an important reminder to all who seek to evade the federal campaign finance laws that they will be prosecuted to the full extent of the law."

"Mr. Magliocchetti is answering for his brazen disregard for the law to achieve political influence and enrich himself," said U.S. Attorney MacBride. "Campaign finance laws give transparency to political contributions, and protect the public's ability to see who's really funding a campaign."

"Americans should be confident that elections are not being influenced by illegal campaign contributions. Those who undermine this process and use it to gain power and influence should be punished" said Sha\\11 Henry, Assistant Director in Charge of the FBI's Washington Field Office. "I'm proud of the diligent efforts put forth by special agents from the Defense Criminal Investigative Service and Flll who investigated this matter."

Magliocchetti pleaded guilty to one count each of making false statements, making illegal conduit contributions and making illegal corporate contributions. The maximum penalty for making false statements to a federal agency and making illegal campaign contributions from a corporation is five years in prison, and a $250,000 fine, to be followed by a term of up to three years of supervised release. The maximum penalty for making illegal campaign contributions in the name of another is five years in prison, a fine of not less than 300 percent of the amount involved in the violation and not more than the greater of $50,000 or 1,000 percent of the amount involved in the violation, and a three year term of supervised release. Magliocchetti is scheduled to be sentenced on Dec. t7, 20 to.

This case is being prosecuted by Deputy Chief Justin V. Shur and Trial Attorneys M. Kendall Day and Kevin O. Driscoll of the Criminal Division's Public Integrity Section, and by Assistant U.S. Attorney

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Lobbyist Pleads Guilty to Role in Illegal Campaign Contribution Scheme

Mark D. Lytle of the U.S. Attorney's Office for the Eastern District of Virginia. The case is being investigated by the FBI and the Defense Criminal Investigative Service.

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10/7/2010

EXHIBITE

CREW I

citizens for responsibility and ethics in washington

September 27,2010

By facsimile (202) 514-5331) and first-class mail

Matthew Miller Director

Office of Public Affairs U.S. Department of Justice Room 1128

950 Pennsylvania Avenue, N.W. Washington, D.C. 20530-0001

Re: FOIA Request for Expedition

Dear Mr. Miller:

Pursuant to U.S. Department of Justice ("DOJ") Freedom ofInformation Act ("FOIA") regulations, specifically 28 C.F.R. § 16.5(d)(2), Citizens for Responsibility and Ethics in Washington ("CREW") requests that you grant its requests for expedition of the enclosed FOIA requests of this date, submitted to the Criminal Division, the Executive Office of United States Attorneys, and the Office of Information Policy ("OIP"). 1

CREW's requests seek copies of records pertaining to the investigation and prosecution of Paul 1. Magliocchetti, the founder and owner of PMA Group, Inc., for false statements, making illegal conduit campaign contributions, making illegal corporate campaign contributions, and any other charges at issue in United States of America v. Paul J Magliocchetti, Crim. No. 1:10-cr-287 (E.D. Va).

CREW requests expedition in light of the widespread and exceptional media interest in this matter and the questions raised by the plea agreement entered into between the government and Mr. Magliocchetti in which Mr. Magliocchetti waived all of his FOIA and Privacy Act rights and the government's failure to require Mr. Magliocchetti's continued cooperation. Media accounts have closely tracked all phases of the government's case against Mr. Magliocchetti, from the bringing of multiple criminal charges to the announcement that a plea agreement had been reached. See, e.g., Dan Eggen and Maria Glod, Ex-Lobbyist Paul Magliocchetti Charged With Campaign-Finance Fraud, The Washington Post, Aug. 6,2010; Anna Palmer, Indictment May Mark End of PM A Scandal, Roll Call, Aug. 9,2010; Susan Crabtree, Report: Former PMA

I CREW's FOIA requests are enclosed as Exhibit 1. CREW's requests of OIP seeks records of the Offices of the Attorney General, Deputy Attorney General, and Associate Attorney General.

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

Matthew Miller September 27,2010 Page Two

Lobbyist to Plead Guilty, The Hill, Sept. 16,2010; Ex-Lobbyist Pleads Guilty to Illegal Campaign Donations, Associated Press, Sept. 24,2010.2 Described as "one of the most powerful and influential lobbyists in Washington not too long ago,"? Mr. Magliocchetti was charged with and ultimately pleaded guilty to making hundreds of thousands of dollars in illegal political contributions to campaign committees and political action committees of numerous candidates for federal office.

The government's plea agreement with Mr. Magliocchetti contained the unprecedented waiver of his rights under the FOIA and the Privacy Act, a waiver seemingly designed to prevent the public from learning about Mr. Magliocchetti' s relationships with members of Congress and any involvement of any member of Congress with his illegal campaign contributions. This raises substantial concerns about what the government may be hiding and why. In light of this media interest and the possible questions about the government's integrity affecting public confidence, CREW satisfies the DO] requirements for expedition. See 28 C.F.R. § 16.5(d)(1)(iv).

Moreover, as CREW explained in its FOIA requests, CREW is a non-profit corporation engaged primarily in disseminating information it gathers from a variety of sources, including the FOIA, and seeks the information requested in its FOIA requests fro the express purpose of disseminating it to the public. CREW's website, www.citizensforethics.org. contains links to thousands of pages of documents CREW has acquired from multiple FOIA requests, as well as documents related to CREW's FOIA litigation and other complaints. Similarly, CREW posts all of its documents acquired through the FOIA on www.scribd.com.

For the foregoing reasons, as well as those set forth in CREW's FOIA requests of September 27,2010, CREW requests that you grant its requests for expedition.

Pursuant to 28 C.F.R. § 16.5(d)(3), I hereby certify that the basis for CREW's requests for expedition is true and correct to the best of my knowledge and belief.

,

nne L. Weismann Chief Counsel

Enclosures

2 Copies of these articles are attached as Exhibit 2.

3 Eggen, The Washington Post, Aug. 6,2010.