Superlobbyist Pleads Guilty, Made Illegal Contributions

Superlobbyist Paul Magliocchetti, who specialized in getting defense earmarks for his clients, pleaded guilty Friday to federal charges of making hundreds of thousands of dollars in illegal campaign contributions to members of Congress.

Magliocchetti admitted using straw donors -- friends, lobbyists and family members, including his aged in-laws -- to funnel $386,250 in illegal contributions to favored members of Congress including key members of the House appropriations defense subcommittee who provided hundreds of millions of dollars in earmarks for the clients of his now defunct Arlington lobbying firm, The PMA Group. And while watchdog groups had hoped Magliocchetti would use his insider's knowledge to help federal prosecutors investigate Congress and earmarks, his plea agreement makes no mention of him cooperating in other probes.

"For years, Mr. Magliocchetti, by using conduit contributors, hid the fact that he and his company were donating significant funds to campaigns in violation of the federal election laws," said Assistant Attorney General Lanny A. Breuer. "Mr. Magliocchetti, in an effort to cover his tracks, used family, friends and business associates to secretly funnel hundreds of thousands of dollars to political campaigns, all in an effort to enrich himself and increase his power and prestige. "This case is an important reminder to all who seek to evade the federal campaign finance laws that they will be prosecuted to the full extent of the law," he said.

Magliocchetti was a major fundraiser for three powerful Democratic members of the defense subcommittee -- the late John P. Murtha of Pennsylvania, James P. Moran of Virginia and Peter J. Visclosky of Indiana -- who had repeatedly helped him and his clients.

The Justice Department said Friday the federal campaigns that received the Magliocchetti funds were unaware of the scheme. But federal prosecutors have been trying to determine whether members of Congress or their staffs engaged in a "pay to play" scheme with Magliocchetti and his firm in which they exchanged earmarks for donations. In May 2009, a federal grand jury subpoenaed records from the congressional and campaign offices of Mr. Visclosky and from his then chief of staff, Charles Brimmer. Mr. Visclosky obtained dozens of earmarks for PMA clients and PMA employees were his largest group of campaign donors. Mr. Visclosky has denied any wrongdoing.

Earmarks are taxpayer funds that lawmakers specifically set aside for favored contractors and projects in annual spending bills. For 2008, PMA obtained $300 million in defense appropriations earmarks for its clients, according to an analysis by Congressional Quarterly and Taxpayers for Common Sense, a watchdog group.

There was no mention of specific congressmen by name at Friday's hearing

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