For Clinton detractors, Norman Hsu is a huge deal. For Obama detractors, Tony Rezko is incredibly important. But where does Rep. Rick Renzi (R-Ariz.), a member of Sen. John McCain’s (R-AZ) National Leadership Team and a co-chair of his Arizona Leadership Team, fit into the mix?
Renzi was, of course, recently indicted on felony counts of extortion, wire fraud, and money laundering, among other transgressions. Despite the charges, McCain hasn’t distanced himself from Renzi at all, saying he doesn’t know the “details” of the indictment, so he won’t criticize his political ally. McCain wouldn’t even comment on whether Renzi would remain a part of his campaign leadership, saying the issue “doesn’t matter.”
With all of this in mind, I couldn’t help but notice that matters for McCain’s buddy went from bad to worse yesterday.
Rep. Rick Renzi, R-Ariz., allegedly defrauded dozens of pro-life organizations for hundreds of thousands of dollars to fund his first congressional bid, according to an analysis of the recent indictment against him, a state insurance claim and an interview with an insurance lawyer involved in the case.
When federal prosecutors indicted Renzi, 49, on 35 felony counts two weeks ago, many reports focused on alleged crimes stemming from a complicated series of land swaps the congressman facilitated.
But the indictment also accuses Renzi, who ran an insurance firm before coming to Capitol Hill, of misappropriating hundreds of thousands of dollars in insurance premiums and using the money to fund his congressional campaign.
As I understand it, in conservative circles, it’s not an especially smart move to defraud anti-abortion groups.
Organizations such as Arizona Right-to-Life, the Hope Crisis Pregnancy Center and the Wickenburg Pregnancy Resource Center paid insurance premiums to Renzi’s insurance firm, Renzi & Company, but received notices their insurance coverage was going to be cancelled for nonpayment, according to a 2003 complaint filed with the State of Arizona. The complaint was first reported by the Phoenix New Times.
According to the indictment, Renzi funneled those payments — totaling more than $400,000 — through various accounts and finally to his campaign.
Renzi’s congressional office has directed all legal questions to his lawyer, Reid Weingarten. Weingarten did not immediately respond to a request for comment. Renzi says he is innocent.
Renzi has positioned himself as staunchly anti-abortion. “The sanctity of human life should always be upheld, and I will continue to fight for the rights of the unborn in Congress,” he said in 2003, as a freshman U.S. representative. In 2006, Renzi received a 100 percent rating from the National Right to Life Committee for his voting record.
The 2003 complaint was filed by an insurance broker who acted as an intermediary between Renzi & Company and the insurance company which held the pro-life groups’ policy.
In an interview, a lawyer for the broker confirmed that the payments his company did not receive from the pro-life groups were the same prosecutors allege Renzi embezzled to pay for his congressional campaign.
In all, according to the ABC News report, the insurance lawyer involved in the case said Renzi may have defrauded “roughly 50 pro-life organizations,” all of which “received cancellation notices because Renzi’s company had not forwarded their payments.”
It’s hard to know which narratives will catch on in a presidential campaign, but given Renzi’s close ties to McCain, and his positions within McCain’s campaign, I wonder whether Renzi’s name will take on the resonance Rezko’s and Hsu’s have.