A major Democratic lobbyist and fundraiser was arrested Thursday and indicted on charges of making hundreds of thousands of dollars of illegal campaign contributions to members of Congress.
The 11-count indictment by the Department of Justice against Paul Magliocchetti, the founder of the now-defunct lobbying outfit PMA Group, brings for Democrats new and unwelcome attention to continuing ethics controversies ensnaring some of the party’s lawmakers.
Magliocchetti appeared Thursday in U.S. District Court for the Eastern District of Virginia and was released after he surrendered his passport and provided a $2 million bond. He is living at a psychiatric facility in Baltimore, the court said.
His attorney did not respond to requests for comment.
From 2003 to 2008, Magliocchetti and his lobbying firm successfully steered millions of government dollars to clients by relying on close relationships with members of the House Appropriations Committee — mostly Democrats and particularly the late Rep. John Murtha (D-Pa).
The financial ties between Magliocchetti, Murtha and other members of the House panel’s subcommittee on defense spending were at the center of an investigation by House ethics investigators at the time Murtha died in February.
Federal prosecutors alleged Magliocchetti prodded family members, employees and acquaintances to make political donations to particular lawmakers by promising that he would reimburse them for the contributions, which is illegal. The Justice Department said Magliocchetti paid people back by writing personal and corporate checks, or giving employees bonuses and raises to cover the contributions.
In one instance, two of his acquaintances were put on the board of the lobbying firm and paid a salary to cover the costs of their donations, even though neither had experience as lobbyists and did not attend board meetings, according to prosecutors.
The Justice Department did not specify the total illegal donations Magliocchetti allegedly made, but the indictment characterized them as “hundred of thousands of dollars.” In connection with the probe, prosecutors said Magliocchetti’s brother Mark pleaded guilty to making between $120,000 and $200,000 in illegal donations. No lawmakers were cited by name in the indictment.
Paul Magliocchetti’s arrest made this the third consecutive week with news of alleged ethics transgressions by Democrats. Two prominent members of the party, Reps. Charles Rangel of New York and Maxine Waters of California likely will face public trials by the House ethics panel.