Rep. Miller responds to critics, says he is not under FBI scrutiny

After months of silence amid media articles that raised questions about the ethics of his business transactions, Rep. Gary Miller (R-Calif.) has launched an aggressive counteroffensive.

Miller has complained this year to media outlets, including The Hill, regarding their coverage of the congressman’s real estate deals and how he allegedly used his congressional influence for personal benefit.

{mosads}The fifth-term lawmaker, who was elected to the lower chamber as a successful real estate developer, maintains that he has done nothing wrong and is being targeted by partisan Democrats, disgruntled ex-employees and the media.

Miller agreed to an on-the-record, unrecorded interview with The Hill days before the August recess, in which he rejected the
notion that the FBI is investigating him.

On Jan. 31, 2007, the Los Angeles Times reported that Dick Singer, a spokesman for the city of Monrovia, Calif., said federal agents had interviewed city officials about a $10 million land deal in which Miller did not pay capital gains taxes.
Miller says no taxes were owed because he was forced to sell the land under threat of eminent domain.

Miller also pointed out that a “federal agent” could be any federal entity, such as the IRS. He said he wouldn’t be surprised if the IRS had questions after the liberal-leaning group Citizens for Responsibility and Ethics in Washington filed a complaint to the federal agency against him in August 2006.

“I’m sure the IRS wanted to see the information. A federal agent could be anyone — anyone flashing a badge,” Miller said.
Contacted last month, Singer declined to specify which agency was asking questions about Miller. He said, “Beyond that, we have nothing new to comment on. Nothing has happened here, and it’s a long-dead story as far as we’re concerned.”

In the same Times article, Gary Owens, a Monrovia planning commissioner, said he was interviewed by two FBI agents in person. Owens, who said he is a longtime Republican, recently confirmed his quotes to The Hill.

Miller said Owens had nothing to do with the Monrovia purchase sale and “did not sit in on one meeting about the deal.”

“Gary is right and Gary is wrong,” Owens said in response, saying he wasn’t involved in the land deal in question but had spent years on the planning commission and was privy to information regarding the deal from his local contacts.

Owens, who said his one and only discussion with the FBI lasted 30 to 45 minutes, offered a partial defense of Miller: “If you
or I did this [land deal], this would never make the paper. Gary Miller didn’t do anything that any sophisticated businessman wouldn’t do.”

Owens doesn’t think Miller’s dealings with the city of Monrovia were illegal, but he said the congressman “had a way of pushing his connections and using his power” to get what he wanted.

Miller said neither the IRS nor the FBI has contacted him.

Details of the land deal were sent to the House ethics committee, Miller said. It is unclear when those documents were delivered to the ethics panel. A follow-up question on the issue sent to Miller’s office this week was not answered by press time.

The congressman declined to provide that documentation to The Hill, initially arguing that it contains proprietary information. When asked for the documents with the proprietary information blacked out, Miller declined, saying, “It’s none of your doggone business.”

He did offer letters from the city of Monrovia about the deal, as well as other documents surrounding the 2002 transaction.

Miller also disputed any impropriety in taking out $7.5 million in promissory notes in 2004 from one of his top campaign contributors, who is also his business partner. He used the money to buy some of the contributor’s land and other real estate in areas the company is developing into housing communities or retail space.

Miller previously told The Hill that he helped insert a provision in the 2005 highway bill that closed an airport in Rialto, Calif., an area outside of his district. His business partner already had a contract to develop the airport land into a planned community. It was the first time an act of Congress closed an airport.

There is nothing wrong with going into business with a longtime friend, Miller said, waving off criticism that business ventures between politicians and their campaign contributors carry an inherent appearance of impropriety.

Members of Congress are allowed to pursue business interests, Miller said, noting that the Founding Fathers were businessmen as well.

Miller’s office said the congressman did not submit the loan details to the ethics committee even though the House ethics manual states that “before entering into a loan arrangement with a person other than a financial institution, Members and staff should contact the Committee for a review of the proposed terms, and a determination by the Committee on whether the loan is acceptable under the gift rule.”

Scott Toussaint, a Miller spokesman, said the rules of the House do not require that Miller needed approval from the panel.

“As you note,” Toussaint said, “the rules encourage, but do not require, that members contact the committee. The rules state ‘Members and staff should contact the Committee,’ not shall or must.”

Both Toussaint and Miller said the type of loan is a common transaction in real estate deals.

Miller acknowledges that Democrats are not the only ones who are criticizing him. However, he and his chief of staff, John Rothrock, suspect two disgruntled ex-staffers are spreading false information.

Miller strongly denies using his staff to help his business in any way: “My staff doesn’t know anything about the building industry.”

Citing ethics concerns, Democrats are targeting Miller’s seat in the 2008 cycle, and Miller has maintained his innocence to his Republican colleagues.

Miller said he has supplied extensive documentation of his financial deals to House GOP leadership, adding it has been “very supportive” of him.

The House Republican Conference has offered encouragement, with members telling him, “Hang in there” and “we’re praying for you,” Miller said.

He said his wife, Cathy, who also is his partner in the real estate business, “is absolutely fed up.”

“I haven’t enjoyed this at all,” Miller said. “I’ve worked up to build a good reputation and then I get beat up. It’s awful.”