The House Ethics Committee has voted to open an investigation into U.S. Rep. Robert Pittenger’s ties to his former real estate company, but it’s deferring any action on the matter at the request of the Department of Justice.
The Charlotte Republican last week requested the Ethics Committee inquiry himself, saying he wanted to confirm that he was in compliance with all House rules.
For more than three decades, Pittenger Land Investments has gathered investors to buy raw tracts with the goal of making a profit by later selling the properties to developers. After being elected to Congress in 2012, Pittenger transferred the business to his wife, Suzanne, in order to meet House ethics rules.
These rules prohibit House members from practicing fiduciary professions that involve managing others’ assets, such as law and real estate, because of potential conflicts of interest. The idea is that members of Congress should be focused on their constituents, not their private clients.
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In a letter released Thursday, the bipartisan Ethics Committee said it voted to establish an investigative subcommittee to determine whether Pittenger broke any rules regarding allegations that he received compensation for his role at PLI. The chairman of the ethics committee, Charles Dent, R-Pa., and its ranking member, Linda Sanchez, D-Calif., will hold the same positions on the subcommittee.
The Justice Department, however, has asked the ethics panel to defer its investigation and the panel agreed to do so, following precedent, according to Thursday’s letter. No other public comment will be made, the letter said.
Pittenger confirmed in August that his former company was under federal investigation but has repeatedly denied any wrongdoing. The FBI and IRS are looking into personal loans and contributions Pittenger made to his 2012 congressional campaign and whether he improperly transferred the money from PLI.
Pittenger has said he has a letter from the Ethics Committee approving the transfer of his company to his wife, although he has declined to release it. He has also said he routinely checks with Ethics staff to ensure full compliance with all rules and regulations.
Two PLI investors told the Observer last month that Pittenger has remained involved in his former company since being elected to Congress. They said he has talked with them and others about land deals, finding buyers for properties, and shaping the company’s future.
“I have lived a life of integrity – personally, professionally, and in public service,” Pittenger said through a spokesman. “Regrettably, some local media reports have not conveyed accurate information regarding my activities or commitment to serving my constituents with honor and integrity. Last week, I requested an investigation by the House Ethics Committee in order to address these issues directly.”
This week, Pittenger released a letter from Ken Bell, a Charlotte attorney who said he has been representing Pittenger since the federal inquiry began. “We have reviewed tens of thousands of pages of documents and emails, and conducted many interviews,” Bell wrote. “Nothing I have seen even suggests criminal conduct by Congressman Pittenger or his former company.”
Last week, PLI reached a deal to transfer management of the company to a subsidiary of Charlotte-based South Street Partners, but investors still need to vote to approve the transaction. PLI has come under fire from some investors in recent months for the slow pace of land sales, markups charged on properties and what they call a lack of transparency around its operations.
Franco Ordoñez of the McClatchy Washington Bureau contributed.
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