FOIA Request: CREW: Federal Bureau of Investigation (FBI): Regarding Investigations of Rep....

8/7/2019 FOIA Request: CREW: Federal Bureau of Investigation (FBI): Regarding Investigations of Rep. Mollohan: 2/14/11

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CREWIcitizens for responsibilityand ethics in washingtonFebruary 14,2011

By facsimile: 540-868-4995Federal Bureau of InvestigationAttn: FOI/PA RequestRecordlInformation Dissemination Section170 Marcel DriveWinchester, VA 22602-4843

Re: Freedom of Information Act RequestDear Sir/Madam:

Citizens for Responsibility and Ethics in Washington ("CREW") makes this request forrecords , regardless of format, medium, or physical characteristics, and including electronicrecords and information, audiotapes, videotapes and photographs, pursuant to the Freedom ofInformation 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 requests all records related to investi gations conducted by DOJ andthe Federal Bureau of Investigation ("FBI") ofRep. Alan B. Mollohan (D-WV) that are notcovered 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 . DOJconducted an investigation of Rep . Mollohan related to $250 million in earmarks that benefittednon-profit organizations of Rep . Mollohan 's campaign contr ibutors. See Paul Kane, JusticeDept. ends probe of Rep. Mollohan, The Washington Post , January 26,2010 (attached as ExhibitA) . DOJ notified Rep. Mo llohan in January 2010 it had concluded its investigation of him anddeclined to prosecute him , and the United States Attorney's Office for the District of Columbiaconfirmed it had closed its investigation. Id.

Please search for responsive records regardless of format , medium, or physicalcharacteristics. Where possible, please produce records electronically, in PDF or TIF format on aCD-ROM. We seek records of any kind , including electronic records, aud iotapes, videotapes , andphotographs. Our request includes any letters, emails, facsimiles, telephone messages , voice mailmessages, and transcripts, notes, or minutes of any meetings, telephone conversations, ordiscussions. Our request 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 , aVaughn index must describe each document claimed as exempt with sufficient specificity "to permita reasoned judgment as to whether the material is actually exempt under FOIA. " Founding Church

1400Eye Street, N.W. , Suite 450,Wash ington, D.C. 20005 I 202.408.5565phone I 202.588.5020 fax I www .citizensforethics.


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Federal Bureau of InvestigationFebruary 14,2011Page 2ofScientology v. Bell, 603 F.2d 945, 949 (D.C. Cir. 1979). Moreover, the Vaughn index must"describe each document or portion thereofwithheld, and for each withholding it must discuss theconsequences of supplying the sought-after information." King v. Us. Dep 't ofJustice, 830 F.2d210,223-24 (D.C. Cir. 1987) (emphasis added). Further, "the withholding agency must supply 'arelatively detailed justification, specifically identifying the reasons why a particular exemption isrelevant and correlating those claims with the particular part of a withheld document to which theyapply. '" Id. 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 some portions of the requested records are properly exempt from disclosure,please disclose any reasonably segregable non-exempt portions of the requested records. See 5U.S.C. 552(b). Ifit is your position that a document contains non-exempt segments, but that thosenon-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 dispersedthroughout the document. Mead Data Central, 566 F.2d at 261. Claims ofnonsegregability mustbe made with the same degree of detail as required for claims of exemptions in a Vaughn index. If arequest is denied in whole, please state specifically that it is not reasonable to segregate portions ofthe record for release.

Finally, CREW welcomes the opportunity to discuss with you whether and to what extentthis request can be narrowed or modified to better enable the FBI to process it within the FOIA'sdeadlines. Adam 1. Rappaport, the CREW attorney handling this matter, can be reached at (202)408-5565 or [email protected].

Fee Waiver RequestIn 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 requestconcerns the operations of the federal government and expenditures, and the disclosures will likelycontribute to a better understanding of relevant government procedures by CREW and the generalpublic in a significant way. Moreover, the request is primarily and fundamentally for noncommercial 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 andpossible criminal behavior by Rep. Mollohan and why, despite this apparent malfeasance, DOJrefused 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


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Federal Bureau of InvestigationFebruary 14,2011Page 3Virginia High Technology Consortium Foundation, Institute for Scientific Research, Canaan ValleyInstitute, Vandalia Heritage Foundation, and MountainMade Foundation. See Judi Rudoren, SpecialProjects by Congressman Draw Complaints, The New York Times, April 8, 2006 (attached asExhibit B). Employees of the organizations, including board members and contractors, contributedat least $397,122 to Rep. Mollohan's campaigns from 1997 to 2006. Id. The non-profits were runby 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 declinedto prosecute him. Id.

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

CREW is a non-profit corporation, organized under section 501(c)(3) of the InternalRevenue Code. CREW is committed to protecting the public's right to be aware of the activities ofgovernment officials and to ensuring the integrity of those officials. CREW uses a combination ofresearch, litigation, and advocacy to advance its mission. The release of information garneredthrough this request is not in CREW's financial interest. CREW will analyze the informationresponsive to this request, and will share its analysis with the public, either through memoranda,reports, or press releases. In addition, CREWwill disseminate any documents it acquires from thisrequest to the public through its website, www.citizensforethics.org, which also includes links tothousands of pages of documents CREW acquired through its multiple FOIA requests as well asdocuments 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 CREWqualifies 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 ofAppeals for the DistrictofColumbia Circuit found the National Security Archive was a representative of the news mediaunder 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.... Infact, any person or organization which regularly publishes or disseminates information to thepublic . . . should qualifyfor waivers as a 'representative ofthe news media." 132 Congo Rec.S14298 (daily ed. Sept. 30, 1986) (emphasis added), cited in id.


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Federal Bureau ofInvestigationFebruary 14,2011Page 4

CREW routinely and systematically disseminates information to the public in several ways.First, CREW maintains a frequentl y visited website, www.citizensforethics.org, that received53,145 page views in January 2011. In addition, CREW posts all of the documents it receives underthe FOIA on www.scribd.com. and that site has received 607,799 visits to CREW's documentssince April 14, 2010.

Second, since May 2007 CREW has published an online newsletter, CREWCuts, thatcurrently has 16,960 subscribers. CREWCuts provides subscribers with regular updates regardingCREW 's activities and information the organization has received from government entities. Acomplete archive of past CREWCuts is available at http://www.citizensforethics.org/newsletter.

Third , CREW publi shes a blog, Citizens bloggingf or responsibility and ethics inWashington, that reports on and analyzes newsworthy developments regarding government ethicsand corruption. The blog, located at http://www.citiznesforethics.org/blog, also provides links thatdirect readers to other news articles and commentary on these issues. CREW's blog had 4,045 pageviews in January 2011.

Finally, CREW has published numerous reports to educate the public about governmentethics and corruption. See Record Chaos, which examines agency compliance with electronicrecord keeping responsibilities; The Revolving Door , a comprehensive look into the postgovernment activities of 24 former members of President Bush 's cabinet; and Those Who Dared: 30Offi cials Who Stood Up For Our Country. These and all other CREW's report s are available athttp://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 questions about this request or foresee any problems in releasing fully therequested records please contact me at (202) 408-5565. Also, ifCREW's request for a fee waiver isnot granted in full, please contact our office immediately upon making such a determination. Pleasesend the requested records to Adam J. Rappaport, Citizens for Responsibility and Ethics inWashington, 1400 Eye Street , N.W., Suite 450, Washington, D.C. 20005.

Sincerely,j d Adam J. RappaportSenior Counsel

Enclosures


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EXHIBIT A


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tice Dept. ends probe ofRep. Mollohan

~ h {util6binglon tp06tJustice Dept. ends probe ofRep.MollohanBy Paul KaneWashington Post StaffWriterTuesday, January 26, 2010; 3:25 PMThe Justice Department has shuttered its nearlyfour-year investigation into the personal finances ofRep. Alan Mollohan CD-W.Va.), freeing the 14-termlawmaker to pursue what could be a tough bid forreelection without the lingering cloud of a federalcriminal probe.

http://www.washingtonpost.com/wp-dyn/content/artic1e/201%

The U.S. Attorney's Office for the District of Columbiahad been overseeing an investigation ofMollohan, a senior member of the House AppropriationsCommittee, for steering roughly $250 million in line-item expenditures to several nonprofit organizationsrun 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 chargesfiled. 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 AlanMollohan," 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. ObeyCD-Wis.), chairman of the Appropriations Committee, of the development in a letter Tuesday. Thatwould clear the way for him to resume full control of a subcommittee that oversees the roughly $28billion 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 partisanactions. The probe was launched when he was serving as the top Democrat on the House ethicscommittee."For nearly four years, in the face of a politically-motivated assault on my character, I have continued tofight for jobs and the working families ofWest Virginia. With this behind me, I am more determined thanever to stand up for the people of the First Congressional District and fight for what matters," Mollohansaid.He recently filed to run for reelection, squelching whispers that he might join several other longtimeincumbents 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 RothenbergPolitical Report have downgraded Mollohan's seat to "lean Democratic" status. The Republican Partvdid not field a challenger to Mollohan in 2008, but national party leaders have recruited several potentialcandidates while seeking to maintain a drumbeat of criticism related to the criminal investigation. Theypivoted away from the ethics matter Tuesday and sought to focus on the state's economy.

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tice Dept. ends probe of Rep. Mollohan http://www.washingtonpost.com/wp-dyn/content/article/201%

"Alan Mollohan's support for Obama's war on Mountaineer State jobs proves that it doesn't matterwhether he's in Congress or behind bars -- he stopped representing West Virginians a long time ago," saidAndy 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 discovereddiscrepancies in Mollohan's personal financial disclosure forms. It raised questions about how hispersonal 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 acondominium building he owns in the District's West End. After a self-imposed audit, Mollohan filedamended reports that corrected roughly 20 mistakes in his disclosure forms. He contended they wereminimal in nature.However, federal investigators continued to focus on multimillion-dollar earmarks that Mollohan steeredto entities such as Vandalia Heritage Foundation, a historic-preservation group that was run by LauraKuhns, a former Mollohan staffmember.The lawmaker's family also invested with Kuhns's family in North Carolina beach property, including alot in Bald Head that went to foreclosure late last year.Pete Flaherty, who co-founded the NLPC, questioned whether the Justice Department backed off theinvestigation because Mollohan is a loyal vote for the Obama administration. "Has Attorney GeneralEric 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 ofDemocratic attacks on what Pelosi, then the minorityleader, called the Republican "culture of corruption." Mollohan served as ranking Democrat on theethics panel when it admonished House Majority Leader Tom DeLay (R-Tex.) in 2004 over fundraisingactivities. Mollohan also fought rules changes that GOP leaders imposed in 2005, leading to a virtualshutdown of the committee's work for several months.Shortly after the investigation became public, Mollohan stepped down from the ethics committee. WhenDemocrats claimed the majority in January 2007, Mollohan took over as chairman of the Appropriationsjustice subcommittee, but recused himself from voting on matters specifically related to the FBI and theattorney general's office.In his statement Tuesday, Mollohan defended helping to fund the nonprofit groups: "These nonprofitsare all about building West Virginia's economy and making our state a better place to live. I am veryhappy that they will be able to put this behind them and refocus on their core missions to create goodjobs and improve the lives ofWest Virginians."View all comments that have been posted about this article.Post a Comment

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tice Dept. ends probe of Rep. Mollohan

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EXHIBIT B


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April S, 2006SPECIAL PROJECTS BYCONGRESSMAN DRAWCOMPLAINTSBy 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 pastdecade, one lawmaker has used his powerful perch on the House Appropriations Committee tofunnel $250 million into five nonprofit organizations that he se t up.Those actions have prompted a complaint to federal prosecutors that questions whether any ofthat taxpayer money helped fuel a parallel growth in his personal fortune.The most ambitious effort by the congressman, Alan B. Mollohan, is a glistening glassand-steel structure with a swimming pool, sauna and spa rising in a former cow pasture inFairmont, W.Va., thanks to $103 million of taxpayer money he garnered through specialspending allocations known as earmarks.The headquarters building is likely to sit largely empty upon completion this summer, becausethe Mollohan-created organization that it was built for, the Institute for Scientific Research, isin disarray, its chief executive having resigned under a cloud of criticism over his $500 ,000annual compensation, also paid by earmarked federal money.The five organizations have diverse missions but form a cozy, cross-pollinated network in theforlorn former coal capitals of north-central West Virginia. Mr. Mollohan has recruited many oftheir top employees and board members, including longtime friends or former aides, who inturn provide him with steady campaign contributions and positive publicity in theirnewsletters.The conservative National Legal and Policy Center in Falls Church, Va., filed a soo-pagecomplaint with the United States attorney for the District of Columbia on Feb. 28 challengingthe accuracy of Mr. Mollohan's financial disclosure forms. The forms show a sharp spike inassets and income from rental properties from 2000 to 2004 .Federal authorities said yesterday that they were reviewing the complaint, which was reportedin The Wall Street Journal.The case has led several Republican leaders to call for Mr. Mollohan's removal from the Houseethics committee, where he is the senior Democrat.

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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 Democratsand their union supporters and that it began its inquiry last May after he had voted againstRepublican 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 DickCheney is scheduled to headline a fund-raiser on April 21 for the Republican whom theWhiteHouse recruited to run against Mr. Mollohan."They are angry at me, and I fully expect that from now until November they will continue tomake baseless charges against me, my record and my family," the statement said. "I willvigorously 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 onincome 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 regretthat."In the last three years, Mr. Mollohan, a Democrat first elected in 1982 to a seat long held by hisfather, has bought $2 million worth of property on Bald Head Island, N.C., with Laura KurtzKuhns, a former employee who now runs one of the organizations and is on the boards of twoothers.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 ofmoney in the transportation bill spent in Illinois in earmarked projects is astronomical," hesaid. "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 outsidethe normal budget review, from $32.9 billion in 2000 to $64 billion in 2006, theCongressional Research Service said. Although it is impossible to trace individual earmarks forcertain, 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, forhis 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 inbacon in the form oflarge public works projects and federal complexes, Mr. Mollohan hasdirected more than half his earmarks to his five organizations of his design.

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Several people involved in th e appropriations process said no other lawmaker employed thatstrategy to the same extent.The first and largest is the West Virginia High Technology Consortium Foundation, which isabsorbing the troubled Institute for Scientific Research. Another, the Canaan Valley Institute,works on stream restoration and wastewater treatment. TheVandalia Heritage Foundationredevelops dilapidated buildings, and the MountainMade Foundation helps artisans marketwares."He's basicallyjudge, jury and executioner for all this money," said Keith Ashdown, vicepresident of the Taxpayers for Common Sense in Washington.Of the empty building in Mr. Mollohan's hometown, Fairmont, Mr. Ashdown added, "This issort of Mollohan's field of dreams, but in his case, he's building it, and it doesn't look likethey're going to come."Kenneth F. Boehm, chairman ofthe National Legal and Policy Center, said the bulk of hiscomplaint to the federal prosecutors was made up of public documents that showed 260instances of omitted or undervalued assets on the financial disclosure forms that Mr. Mollohanfiled with the ethics committee from 1996 to 2004.Those forms show a jump in Mr. Mollohan's portfolio from less than $500,000 in assetsgenerating 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 th e complaint, Mr. Boehm said, are commissions that Ms. Kuhns'shusband, Donald, received as a real estate broker on deals for the organization that shecontrols. The couple have donated at least $10,000 to Mr. Mollohan's political committeessince 1998.The complaint also looks at whether Mr. Mollohan properly reported 27 condominiums in theRemington, near Foggy Bottom in Washington. He and his wife own the building with acousin, 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 earmarkswent to very closely associated nonprofits run by peoplewho were very close to him, did any ofthe money go from Point A to Point B?" Mr. Boehm asked in an interview. "Did any of hisnewfound wealth result from, in any way, shape or form, individuals who had benefited fromhis official actions?"Lifeblood for a Weak EconomyAbout 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

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Foundation used $1.2 million in earmarks from the Department of Housing and UrbanDevelopment to help transform the yellow-brick behemoth, built in 1901 as the coal companystore, from broken down to bustling.The first floor is a vibrant gallery where the MountainMade Foundation, relying on its ownearmarks from the Small Business Administration to payVandalia its $5,166.67 in monthlyrent, 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 Valleyoffice, whose $5,100 rent to Vandalia is covered by earmarks from the EnvironmentalProtection Agency and the National OceanicAtmospheric Administration."What else are you going to do to reinvent this economy?" asked Ms. Kuhns, Mr. Mollohan'sformer aide who runs Vandalia and is the co-owner of the North Carolina beach property withthe 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. Mollohanfavors the earthenware pottery -- MountainMade also runs glassblowing, spinning andfelt-malting workshops in another downtown building that Vandalia renovated.The Canaan Valley Institute, which grew out of an effort to create a wildlife refuge nearproperty that Mr. Mollohan owns, is building a $33 million headquarters with classrooms andlaboratories 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 theBaltimore & Ohio station in Grafton that it is turning into a museum and office space and lotsin Fairmont, where it plans to build houses. Earmarks from HUD bought the mothballedWaldo Hotel in Clarksburg ($230,000 in 2000) and 1,129 acres in Canaan Valley ($2-4 millionin 2004).Mr. Mollohan and the organizations' managers said their goal was to wean from earmarks andbe self-sustaining. But Canaan Valley, the oldest, continues to rely on earmarks for 97 percentof 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 federalearmarks. 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 runregular fund-raisers. They worry about the crackdown on earmarks. The Vandalia pipeline hasbegun to dry up since Mr. Mollohan left the subcommittee that appropriates HUD money. Theorganizations said success in finding other sources had been sporadic.The Quid Pro Quos

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"The congressman gave us money" for this or that is how the groups' leaders frequently explaintheir 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 throughFebruary 2006, top-paid employees, board members and contractors ofthe five organizationsgave 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 oneof 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 groupswere among Mr. Mollohan's leading contributors. Employees ofTMC Technologies, which hada $50,000 contract with Vandalia in 2003, have given $63.450 since 1998.Workers atElectronic Warfare Associates and Man Tech International, military contractors that rent spacefrom the technology consortium and whose chief executives are on th e board of the Institute forScientific Research, combined to give $86,750.For Kate McComas, a weaver who is the executive director of MountainMade, the $1,000 checkthat she wrote in March 2004 at a Mollohan fund-raiser was a first. "I bought a pair of highheels to wear," Ms. McComas recalled. "I thank him every occasion I see him for theopportunity we have here."Asked whether contributions were required or expected, Kevin Niewoehner, the departed chiefexecutive of the Institute for Scientific Research, said: " 'Required' is such a strong term. Thepolitical environment and the access that goes along with it has a number of expectations thatinvolves what is appropriate and what isn't appropriate." He added that the first hint that hewas falling out of favor occurred in October, when a $250 check he wrote to the campaign wasreturned 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 supportsand his supporters meant anything more than a meet ing 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 WestVirginia."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 ofthe consortium and chairman of the MountainMade board. The board once included Mr.

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Mollohan's wife, Barbara.

http://query.nytimes.com/gst/fullpage.html?res=9BOIE6D6113

Raymond A. Oliverio, executive vice president of the consortium, is also treasurer of the RobertH. Mollohan Foundation, named for the congressman's late father. Gina Fantasia, Vandalia'slegal 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 heritagefoundation 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 thehigh-tech consortium, which began in 1990 as six small companies hoping to seed a neweconomic 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 ofthree-dimensional school photographs to help find missing children.The consortium has had better luck following earmarks with competitive grants. ItsInformation Research Corporation was spun off as a for-profit subsidiary after obtaining a $10million Navy contract to build 2,500 BomBots, robotlike tractors that remotely deliverexplosives."The congressman has enabled programs and entities to get started," said Tom Witt, director ofthe 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-quarterspaid by NASAand HUD earmarks. The 57-member staffis barely large enough to fill a cornerof the ooo-plus capacity of the building.Photos: Alan B.Mollohan, left, senior Democrat on the House ethics committee, withCommerce Secretary Carlos Guitierrez at an appropriation hearing yesterday. (Photo byStephen Crowley/The NewYork Times); (Photographs by Vandalia Foundation [Canaan ValleyInstitute, 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 specialspending allocations known as earmarks since 1995. About half the money has gone to the fiveorganizations at right, all of which Mr. Mollohan set up.Earmarks for Mr. Mollohan's Congressional DistrictGraph tracks earmarks for th e following groups since 1995.

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PROJECTS BY CONGRESSMAN DRAW COMPLAINTS ... http://query.nytimes.com/gst/fullpage.html?res=9BO 1E6D6113

West Virginia High Technology Consortium FoundationFOUNDED: 1990EMPLOYEES: 148TOP SALARY: $260,000ACTIVITIES: Runs its own research projects and works with companies to seed hightechprojects. Planning a technology park.EARMARKS SINCE 1995: $39 million from HUD, S.B.A. and the Justice DepartmentInstitute for Scientific ResearchFOUNDED: 1990EMPLOYEES: 57TOP SALARY: $362,286ACTIVITIES:Conducts basic information technology and engineering research for federalagencies,EARMARKS SINCE 1995: $108 million from NASAand HUDCanaan Valley InstituteFOUNDED: 1995EMPLOYEES: 49TOP SALARY: $147,450ACTIVITIES: Partners with local groups on environmental problems, particularly streamrestoration and wastewater treatment.EARMARKS SINCE 1995: $71 million (awarded funds) from E.P.A. and NOAAVandalia Heritage FoundationFOUNDED: 1998EMPLOYEES: 12TOP SALARY: $102,000ACTIVITIES: Restores historic buildings, acquires property for development and runs "legacy"projects of oral histories.EARMARKS SINCE 1995: $28 million from HUDMountainMade FoundationFOUNDED: 2000EMPLOYEES: 19TOP SALARY: $65,565ACTIVITIES: 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)

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

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