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Published: June 13, 2009 3:00 a.m.

Campaign cash OK for defense

Visclosky wins ruling from FEC

Sylvia A Smith
Washington editor
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WASHINGTON – A Hoosier congressman may use campaign donations for legal fees in federal and congressional corruption investigations, the Federal Election Commission said Friday in a draft advisory opinion.

The commission will vote Wednesday; people who want to object have until noon Monday to respond.

Rep. Pete Visclosky, D-1st, asked for permission to tap into the nearly $910,000 in his re-election account to pay for legal fees and expenses stemming from a Justice Department investigation into whether a defunct lobbying firm, PMA Group, made illegal campaign contributions to Visclosky and two other House Democrats.

Visclosky has acknowledged that the Justice Department has subpoenaed material from his offices in Washington and Merrillville, his campaign account, and a political-action committee that Visclosky controls.

Federal investigators have subpoenaed several of Visclosky’s aides, and his chief of staff has resigned.

But Visclosky told a northwest Indiana newspaper that he has not been subpoenaed or questioned.

The House ethics committee also announced it is reviewing links between PMA and lawmakers, although it did not identify them by name.

According to news accounts, a federal grand jury is looking into whether PMA and its employees gave campaign donations to members of Congress in exchange for receiving money for projects sought by their clients.

The FBI raided the PMA offices in November.

Visclosky’s subcommittee has approved projects for PMA’s clients, and Visclosky has received campaign donations from PMA, its clients and its officers. Visclosky’s former chief of staff was one of PMA’s lobbyists.

In its draft opinion, the FEC said Visclosky’s campaign donations may be used for legal fees as long as the investigations involve his actions as a lawmaker.

The draft opinion cautions, however: “Because many of the details of the federal investigation are not public at this time, it is possible that portions of the investigation could involve allegations not related to Rep. Visclosky’s campaign or his duties as a federal officeholder.”

In that case, the draft ruling says, campaign donations could not be used for legal fees.

Visclosky announced this month that he is temporarily stepping down from one of the most powerful positions in the House during the investigation. He is the chairman of an Appropriations Committee subcommittee that deals with water and energy projects.

The Appropriations Committee and its subcommittee chairmen are considered among the most powerful lawmakers in the House because they have considerable decision-making power over federal spending.

sylviasmith@jg.net