Summary
Adjudicatory leaders unanimously denied respondent's motion to reconsider stay denial and took committee counsel's 27-count summary judgment motion under deliberation.
Brittney Pescatore (Director of Investigations, House Committee on Ethics) testified bank records show Trinity funneled millions into the campaign through conduits and false loans.
Rep. Ivey pressed William R. Barzee (Managing Partner, Barzee Flores) on disputed Trinity transfers and whether joint accounts exceeded legal contribution limits.
Bipartisan consensus held the committee must protect House integrity and proceed despite the pending scheduled federal criminal trial next month.
Members entered executive session to decide summary judgment, with any violation finding advancing to sanctions and full House action before election blackout.
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Hearing details
View on Congress.govHouse of Representatives
House Ethics
5h 30m
Witnesses4
Managing Partner, Barzee Flores
Counsel, House Committee on Ethics
Senior Counsel, House Committee on Ethics
Director of Investigations, House Committee on Ethics
Members who spoke8
Transcript
I'd like to recognize the ranking member on the Committee of Ethics, uh, for an opening statement.
Thank you, Mister Chairman. Um, as the Chairman, uh, noted, we are here to consider allegations concerning Representative Scherfelis-McCormick. The Ethics Committee has a solemn duty under our constitutional authority to enforce standards of conduct in the house of representatives, to investigate claims of member misconduct, and deliver accountability where appropriate. It is a responsibility we all take extremely seriously without regard to partisanship or bias of any sort, and without the presumption of guilt before innocence. As we begin today, I want to reiterate that the process is not adversarial in the traditional sense. It is not a criminal trial, it is an inquiry to determine whether Representative Scherfelis-McCormick, uh, conduct violated House rules and ethical standards. Let me underscore that the subcommittee's role is to ensure that the factual record is carefully examined, the process remains fair, and the conclusions reached are grounded in evidence and consistent with the House rules and committee precedents. We as judges during this phase of the proceedings must determine whether committee counsel has proven the allegations by clear and convincing evidence. The ethics committee operates within a framework of precedent rules and long-standing institutional norms. These guideposts exist to ensure consistency and fairness across investigatore- investigative matters, regardless of the individuals involved or the surrounding circumstances. We will adhere to those same principles today as the committee does in all of its investigations and just as the committee has done since it began reviewing these allegations in two thousand and twenty-three. Today's hearing follows a twenty-four month long bipartisan investigation by an investigative subcommittee or ISC comprised of an equal number of members from the majority and minority parties. the ISC received testimony from twenty-eight witnesses and reviewed hundreds of thousands of pages of materials. Based on that record, the ISC produced a twenty-seven-count statement of alleged violations, and unanimously found substantial reason to believe that each of those counts were supported by the available evidence. All along the way, Representative Sch- Scherfelis-McCormick has been afforded the to share evidence with the ISC and directly address the allegations against her. Hearings like today's are very rare, as the committee often i- loses jurisdiction over respondents before this phase of the committee process. And the allegations before us are extremely serious. They are not on- they not only concern an individual member's conduct, they also implicate the public's confidence in the house's integrity as an institution, and if proven, they would demonstrate that the representative violated, if proven, multiple house rules and federal statutes. The adjudicatory subcommittee is of course aware that the representat- sh- Representative Sheriff Phyllis McCormick has been indicted on federal charges and a criminal trial is pending. We carefully considered her request to stay these proceedings pending the outcome of that criminal case. Yet we u- we unanimously declined to do so, given our committee's independent mandate to self-regulate member conduct and the constitutional limitations the executive branch faces in investigating members of Congress. The opportunities provided, Representative McCormick declined sh- declined to engage with the committee's process over the last several years and the need for public trans- transparency around these allegations. Public office by its definition derives from the will of the people, and transparency is essential, obviously, to maintaining the public's trust. The American people deserve for their institutions to uphold ethical standards and the American people are entitled to demand accountability of all of us when their, if their elected representatives are without integrity if they their preference prefer personal gain over public service, and if they set act in a manner that reflects discredit on the house. It is in this service of these foundational principles that we convene today. At a time when public confidence in our institution is so low, this committee's role in enforcing congressional ethics process and defending the integrity of the house could not be more important. As Supreme Court Justice Louis Brandeis famously said, "Sunlight is the best disinfectant." With today's public hearing, we have the opportunity to shine that light and that spirit on this committee, this matter, and the House. And to bring about the transparency that I believe the public expects and demands from this institution. Thank you, Mr. Chairman. Now you're back.
Uh, thank you, Mark. Uh, the first order of business uh is for the adjudatory subcommittee to consider a motion to reconsider. That motion to reconsider uh involves previous rulings the adjudatory subcommittee made last week. Uh the first was a motion to stay this proceeding past the criminal proceedings, and the second was a motion to hold any adjudatory subcommittee hearing in executive session. Uh after rulings by this body uh there has been a motion to reconsider that has been filed uh by the respondent. Uh that w- was filed by the respondent uh by her counsel, Mister William Barzee. Uh Mister Barzee, this is your motion uh and so at this time uh we will turn it over to you to make argument on your motion to reconsider.
Thank you very much. Thank you very much. Mister Chairman, as the ranking member pointed out, Congresswoman Shafalis McCormick was charged in federal court, and has a pending federal criminal indictment. A very serious affair, which she takes very, very seriously. Just as she takes this committee's action, and self-regulating the members of the house to be a very serious affair. Inherently, however, there is a conflict between participating in both of those arenas at the same time. And I wanna just take a couple of moments to try to explain to this committee why going forward with an adjudicatory hearing when a member has a pending criminal case is a very risky endeavor. And when I say risky, the risk is to a violation of her constitutional rights to a fair trial. And I want to explain how those rights are implicated by this committee moving forward at this time. The first and most serious issue fact that as the ranking member pointed out this is not a criminal trial and as such it's going to have different standards of proof are gonna be involved different rules of evidence are going to be involved and a different uh decision making apparatus is going to be involved. It's not going to be decided by a jury of her peers it'll be decided by the members of the committee and the full house. That being said, the public down in the Southern District of Florida, the pool of potential jurors who are going to be hearing this criminal case are going to be inundated with information about what takes place in this committee. They will learn about evidence related to the allegations in the criminal case, from what takes place in this committee. Now not all of that evidence may be admissible in a criminal case in federal court. It may be admissible here. You may want to call forth different witnesses to get testimony when those witnesses may not necessarily be on the stand and testifying in front of a jury. So the potential here, the difficulty here, is that you are going to have members of the public who are also potential jurors in the criminal criminal matter hearing about facts that they otherwise would never be exposed to. And those potential jurors can end up on her jury and can include those facts in their decision-making in an inappropriate way. That's a major, major risk. The other cons cons the the other risk that the committee should consider is the fact that whatever this committee decides, if you decide that that there was a violation of one of the rules, for example, no one on this committee has any control over how the press reports that. And the danger here is In t- in today's society, without pointing fingers or blaming one side or the other, e- everything has become weaponized, including the press, and you are going to see press reports indicating that the Congresswoman has been found guilty of these various allegations that were made against her. Now how can she possibly go into court and have a fair trial if her jurors have already heard that she was found guilty by the House of Representatives. It's an impossibility. I mean, jurors are human beings. A a federal judge can say to a juror, now listen, that was in the House of Representatives and that has nothing to do with this case, and you have to promise me that you'll put that out of your mind. And of course, every juror would immediately say, yes, your honor, we promise we won't consider that, but they're human beings, just like all of us. And and if someone covers this, or they read a press report, and they and they get an impression because of the way the story is told that the congresswoman has already been convicted by the house how can she have a fair trial? Any action by the committee is going to violate those rights. And I would suggest to you those rights are fundamental. They're what makes this country great, the right the right to a fair trial. And if this committee takes action that violates that rights, then what is the purpose? We don't wanna be doing that. We don't wanna be doing it to this congresswoman. We don't wanna be doing it to the member next year, or two years from now, or ten years from now. Which is why it makes sense, there is a pending criminal case that this committee should just simply pause. Allow the criminal case to work itself out so that there is no risk of tainting a jury. Now understand, it's not just a situation where potential jurors may read about this in the press. Everything is weaponized today. So they're going to be seeing it on their Facebook uh reels, they're gonna be seeing it on TikTok, on Instagram, it's going to be nonstop. And and assuming that it is nonstop, assuming that her political opponents use whatever happens is in this committee against her in the campaign, which is fair enough, but imagine the impact it is going to have on potential jurors. You know, trial attorneys have a saying about and and and I and I know that that more than one member here has experience in courts, they have a saying about how you can't unring the bell. Once you hit the bell, it's gonna reverberate. People are going to continue hearing it. It's going to have an effect. And it doesn't matter that I can ask a federal judge to instruct a jury to disregard everything that they've seen in the past six months. on Facebook and Instagram and TikTok, it's not going to happen because potential jurors are real humans. And humans really don't have that capacity to simply put something completely out of their mind. It's always going to be there. And if it's always going to be there, then there's always going to be a risk that the Congresswoman is not going to be able to get a fair trial. And that's not a mistake that this committee has to make. This committee can simply allow this to remain in a pending schedule until the criminal case is resolved. The second biggest issue that that I see with her rights being violated is her fifth amendment right to remain silent. And to and to and to say to the government, if you're going to accuse me of a crime, And by the way, that's exactly what the Congresswoman has done. She is not guilty of these allegations. She's absolutely innocent. She's looking forward to being in criminal court in order to prove her innocence, which I'm confident she's going to be able to do. But she's in between a rock and a hard place right now when the committee says, well give us all of your files, and allow us to cross-examine you about everything that happened. Well, if she complies with that, if she engages in that process of turning everything over and speaking to the committee, everything she turns over, everything she says to the committee could potentially be used against her in a subsequent trial. I'm not saying it absolutely will be, but I'm saying that that potential is there. And if there is a significant potential that the actions of this committee are gonna deny a member a right to a fair trial or deny a member's constitutional right to remain silent I would suggest that the committee could take a pause. Mister Chairman, I understand that that this committee and staff have been working on this matter for for over two years, maybe maybe up to three years. I understand the impatience to get things resolved and get things accounted for. And a and those are noble goals. And expediency is a noble goal. But it's not more noble than her right to have a fair trial. And it's not more noble than her fifth amendment right. against self-incrimination. You know, staff counsel has has mentioned a few times that the only time that this committee has has stayed cases was at the direction at not direction pardon me at the request, maybe I meant direction, but I'm gonna say request, at the request of the Department of Justice. Now, why does the Department of Justice come before this committee and ask for matters to be stayed? Well, the Department of Justice does that on a routine basis because they don't want their cases harmed. They don't want to run into problems with their cases, with their witnesses. And so the Department of Justice comes to the committee and says, " We're asking you to defer." And this committee regularly defers when asked to by the Department of Justice. Because you want things to be fair for the Department of Justice. Because you don't want to interfere with the important work that the Department of Justice is doing. And those are noble and appropriate reasons to defer. Well, anyone watching this on TV sitting on their couch is going to ask the same question that I'm gonna ask the committee. And that is, if it's good enough for the Department of Justice to be able to protect their case, why isn't it good enough for the member to be able to protect her constitutional rights before a a criminal trial in federal court? If you routinely defer to the Department of Justice, why not defer to one of your own members who has a pending criminal indictment hanging over their head? One of the things that I've seen is is is the issue of of not wanting to interfere with the Department of Justice's strategic approach to their case.
Meaning,
Department of Justice's plan on how they're going to present evidence and which witnesses they're going to call and which witnesses they're not going to speak to. And the Department of Justice doesn't want this committee getting things confused. They wanna have full and complete control over everything from beginning to end. And I respect that. I mean, uh, all lawyers are in some way control freaks, right? And so I get it. I get why the Department of Justice wants to shut the committee out so that they can do their job. And there's no problem with that. That's probably an appropriate thing for the Department of Justice to do, and it's an appropriate thing for this committee to accept those requests by the Department of Justice, and to pen this. The Department of Justice has never come in front of this committee and asked you to throw a case out because it might interfere with their work. What they do is they say to you, please, please, house, take a pause. Let us finish our investigation, let us finish our case, and then you can pick up where you left off. That's all we're asking. We I I'm not asking you to dismiss this because there's a pending criminal case. I'm not coming in here banging on the table and arguing about things like double jeopardy and she should only have to answer to to to one to to one authority. No, not at all. In fact, the Congresswoman takes the work of this committee very, very seriously, which is why, when her former attorneys withdrew from the case, she scrambled to get somebody on board to represent her before this committee as quickly as she possibly could. Uh, staff has been working on this case, as you know, for two and a half, three years, I think. I've had the case for what, two and a half, three weeks? And I'm at a position now where I'm supposed to stand up and represent a duly elected member of Congress before this body without really knowing what's in the file. Because two and a half three weeks is simply not enough time in order to review all of the work that's been done on this case. Hundreds of thousands of documents, lots of different witnesses. This committee knows that there was a day a while ago for us to respond to the motion for summary judgment, and we were not able to file a response. That wasn't because the Congresswoman is somehow disrespecting this committee, it's because she didn't have counsel until two and a half, three weeks ago. We want to respond. I want to respond more fully than we have in in the most recent filing that we sent to the committee uh this afternoon. We've already submitted one affidavit from a witness. it's clear that there are factual disputes here on both sides. I'm not gonna get into an argument on the summary judgment motion, I'll I'll I'll keep it to just the issue of requesting a stay. But all along the Congresswoman has wanted to show full respect to this committee and has wanted to cooperate fully with this committee and on the advice of counsel, because of the pending criminal investigation, she has not been as forthcoming with materials and testimony as the committee would appreciate and we understand that and I understand that completely. And those concerns will no longer be at at risk once the criminal matter is resolved. You know, this idea of of of postponing a hearing on summary judgment, for example, because of a pending criminal case is not my idea. I I didn't think of that argument. That's a long-standing process, even in federal courts, in civil in civil cases. I have a case here from from one of the greatest federal judges in the United States, Judge Hale in Kentucky, and uh uh the name of the case is norman quartermaus versus bullitt county fiscal court and it was the same sort of situation where there's a pending criminal case and i know a few of you probably know the judge from kentucky eh eh there's a pending criminal case and and the plaintiff is moving for summary judgment and i just wanna quote what the judge said because the criminal case prevented the I'll say respondent from having an opportunity to develop and discover the evidence, he or she would need to support his claims. Common sense, common sense dictates that the court should defer consideration of the defendant's motion for summary judgment, in light of the criminal action. So this isn't something that, you know, some criminal defense attorney is coming in trying to convince you to to hold off on going forward. I mean, this is a fundamental idea here, that you don't interfere with someone's constitutional rights if you don't have to. And you don't have to. Granting a request to stay these proceedings until the criminal case resolved, in no way diminishes the importance of what this committee is doing, in no way does it take away this committee's uh uh ability to self-regulate or the house's ability to regulate the members, all of those things are still going to be here as soon as the criminal case is resolved. And if the and if this committee were to defer and were to stay the hearing, until after the criminal case was resolved, it would be doing so in support of the United States Constitution. It would not be doing so because it's trying to protect a member or not fulfilling their obligation and their duty of self uh patrolling their members. You would be doing it for the right reason. And ultimately uh committee, that's that's why we're asking you to to stay this uh hearing at this time, for those constitutional reasons as well as for allowing me to have some opportunity to prepare a response for the summary judgment uh motion, to call witnesses on her behalf, to develop these facts that are absolutely one hundred percent in dispute. Thank you, Mr. Chairman.
Thank you, Mr. Barzee, I would now recognize Committee Counsel Ray Radican to respond to the motion to reconsider.
Thank you, Mr. Chairman. Mr. Chairman, Mr. Ranking member, and members of the adjudicatory subcommittee. Committee staff asks that the adjudicatory subcommittee stand by its ruling, denying respondents' requests for a stay of these proceedings and alternatively to proceed in executive session. The arguments raised in respondents' motion to reconsider are the same points that were already briefed and argued to this subcommittee prior to today's hearing, and the latest motion raises no basis for the subcommittee to reverse its decision. Respondent's request to stay this matter or to proceed in executive session should remain denied. With respect to respondent's request to stay these proceedings, committee staff acknowledge respondent's pending criminal prosecution. However, under Article one and House rules, the House and the Committee on Ethics have their own unique authority and obligation with respect to alleged misconduct by members of the House. Respondent has not been and will not be compelled to testify in this matter, or to otherwise forfeit her rights under the constitution. A stay is not required by precedent or policy. Despite being aware of this invest despite being aware of this investigation for years the Department of Justice did not request a deferral of these did not request a full deferral of these proceedings and it was not until January that the Department of Justice requested a limited deferral um limited to collecting witness interviews by that time the interviews you are The interviews are already completed and the request was already moved.
Excuse me. Can you get closer to the mike?
Yes.
Thank you.
The bipartisan investigative subcommittee conducted a thorough review over two years, and weeks after respondent was indicted, determined to move forward and to adopt the charges before you. The investigative subcommittee felt that respondent had caused enough delays throughout its reviews. Respondent's criminal trial has already been delayed, and although that trial is currently scheduled for April, Respondent's counsel acknowledged to the subcommittee that he anticipates the trial will be further delayed. There is no guarantee Respondent's criminal trial will take place this year or sooner after. There is a significant institutional interest in proceeding without further delay. Respondent's motion to reconsider her request for a stay should not be granted, and today's hearing should proceed as scheduled. The subcommittee has soundly exercised its discretion in and deny in respondents' motion and it should not reverse that decision now. Thank you.
Uh thank you for that response. Uh the members will now have the opportunity to ask questions of both counsel. Uh we'll begin and we will rotate that. Uh I will begin and then uh Mark and so we will rotate that uh uh by members of the adjudicatory subcommittee. Um Mr. Zierer, f for the record uh I think it's been stated that this matter has been under investigation by the committee since twenty twenty three uh this has been a very slow a very deliberate process uh there has not been a rush uh to judgment uh in this matter uh and and i will say that i am aware of multiple occasions to where uh requests were made uh of the committee uh requests for additional time to hire attorneys uh and that was done in your case uh think you were at least the third attorney possibly the fourth attorney who the committee has dealt with during the course of this. Uh we have granted extensions for uh not only the right to retain counsel, we've granted extensions on uh timing to respond to motions, uh we've allowed motions to be responded to after deadlines, and so uh I I think that the committee uh has made uh at least up to this point a a good faith uh effort uh to try to make sure that uh we are protecting the rights uh of your client. Um um the counsel for uh the committee did bring up and I think you stated uh last week that you intended or expected let me say that you expected the criminal matter which was set next month to be continued and there were there were conversations between you and the US attorney's office while nothing had been ruled yet. but you did expect that there would be some continuance. Uh that continuance I would assume would probably likely be to summer or fall at the earliest. Uh and then we also made you aware of certain blackout periods that would come into play. Uh and uh that would then further negate our ability to resolve this matter uh in a timely fashion. Um a at at this point um you've not made a motion for any s uh certain time of continuance your motion has been to continue the matter s past the criminal action uh and so uh my question to you uh is does there exist a circumstance in your mind where the ethics committee not just in this case but in any case that we should make a finding if there's a pending criminal case um the ethics committee i think uh in the santos matter which was the most recent matter in which we had a member uh that was under uh federal indictment. Uh in that matter uh the committee conducted an investigation, uh the committee issued a report, uh and then based on the report uh the house then took up a motion to expel, a motion that I sponsored uh to expel Mister Santos based on his uh conduct uh that had been found. Uh and so you're right when you argue that we did not go through this, uh these are additional uh protections for which uh your client is receiving that Mister Santos did not. Uh but I c- but my question is uh and one for clarity, you're requesting not for just you're not requesting additional time, but you're requesting that this matter be continued past a criminal matter whenever that may be. Uh and then the second question is do you believe that there exists a circumstance where a member who was charged with a crime uh that this committee should make findings or recommendations uh until that criminal matter is resolved. So with that I'll give you the opportunity to answer the question.
Thank you, Mr. Chairman. Um I I recognize the good faith efforts that the committee has made up to this point without question, and I want to acknowledge that. Um I I do want to uh correct one thing that staff said about the criminal matter, staff indicated that the criminal trial has already been delayed once and that's incorrect uh it has not been delayed it is currently set for trial in april um i agree with the chair it's most likely late summer early fall but i'm not the judge so i don't get to decide that um as as as far as um the question as to whether or not it would be possible to address this prior to the resolution of the criminal trial. Um, I would like to answer that by explaining that there's really two different major um difficulties with going forward at this time.
Mm-hmm.
One of them are the constitutional concerns that I raised before, about a tainted jury and and the fifth amendment right. Those concerns would not be addressed with a hearing in this committee prior to a resolution of the criminal case. So, if the concern is protecting a member's constitutional right to a fair trial, if the concern is protecting a member's constitutional right to, for example, exercise their fifth amendment to remain silent, And of course, she's not being compelled here to testify by staff, but her lawyers are telling her you can't get up and start talking about it until we have the criminal case, just just to clarify. So for those concerns, the only way to address those concerns would be to pend uh uh uh pending the criminal case, staying this until the criminal case is resolved. The other difficulty is the fact of the matter that I've been on the case for about two and a half three weeks and to expect an attorney to go through hundreds of thousands of documents and multiple witness statements and interviews, and then prepare their own witness interviews and affidavits and respond to evidence that's been accumulated for two and a half three years, in a period of two and a half three weeks is impossible absolutely impossible so if one of the concerns is that she is or that the member is represented by a competent counsel that's prepared in these hearings then that concern could be addressed with a delay shorter than staying the matter until the resolution of the criminal case. Um the chair pointed out the time frames before the elections that you're running up into and I understand those concerns and I appreciate them and I share those. Um I still think it would be possible for us to if the concern was was making sure she had competent counsel to represent her then a a shorter continuance would be possible to maybe sometime in the beginning or middle of June in order to sort of develop these arguments. Um, you know, to respond to the motion for summary judgment in a in a thorough in a thorough way. Uh, we did our best in the last, you know, few hours putting something together, but to really, uh, give it the amount of attention that it deserves, it's going to take work, it's going to take time. And so, something more than two and a half, three weeks, would give me enough time in order to come before the committee prepared and offer competent counsel to the congresswoman. And I've no doubt that every member of this committee wants the congresswoman to be represented by a competent attorney who's going to do a good job. Because the only way you're going to get to the truth, the only way you're going to discover what really happened, is if you hear from both sides and you have competent attorneys on both sides presenting the facts to the committee and cross-examining witnesses. And that simply cannot happen in the time frame that we have in front of us right now. I clearly the committee has a desire to get this resolved in a timely fashion. And I completely understand that, Mister Chairman, and I appreciate that. understand from my point of view from my perspective rushing into this from my perspective i i'm not saying that the committee is rushing but for me to rush into it having only had the case for two and a half three weeks uh that's that's dangerous territory i mean lawyers really shouldn't be practicing law like that you you you don't want a doctor running into a uh a surgery uh unprepared not sure exactly where in the brain she's going to operate on. I mean, things take time, and and what I'm asking the committee is putting aside the constitutional risks involved, which is why we're we're arguing to the committee that in order to protect those rights, a stay would be appropriate. Um, but also for reasons of her having a competent counsel, i would suggest to the committee that uh a continuance to allow me uh time to prepare a thorough response to the summary judgment motion and to and to raise for you in a coherent way all of the facts which we disagree with that that the committee has compiled and presented before you the committee staff has compiled rather mr. peter
party my time's expired and i'll uh recognize uh the ranking member but For the record, there has been no request made for additional time. The only request that you have made or your your client has made to this committee is to continue the matter cr past the criminal action uh and so I want
Yes, sir.
the record to reflect that uh that we have ruled on that motion and we are here to reconsider that uh but there has not been a request made to continue uh today's hearing so with that I'll recognize the ranking member for uh his uh five minutes of questioning.
Thank you, Mister Chairman, and I appreciate, um, your comments and as well as counsel. Um, so my question is sort of if not now, when, um, following up on the Chairman's, how long do you expect the criminal trial to take? And I say this in the context as a non-lawyer, uh, having read everything I could about this case in the public and what we have, a lot of it is already public, particularly in Florida. So, um, while we wanna be respectful of due process, when is this going to play out in your estimation, given your experience as a trial attorney. And then in the context of what I struggle with, the reason this is separate, institutionally, constitutionally is we have a while we wanna respect the constitutional rights, we have an obligation as given to us, and having watched the previous time we had a case like this and the Rangel case was not dissimilar in some ways from the argument that he provided, uh in this room in two thousand and ten so the question is i are if not now when in the context of much of what we are gonna hear today is already been very public um particularly in florida and the florida media so um actually there's three questions there are those two and put yourself in our position as we are required to do to protect the integrity of this institution,
Right.
including if we hear the evidence as quickly, I'm reminded of the expression justice denied is justice delayed, um we're doing a disservice to our responsibilities in this committee if we don't act with a level of concern about that how quickly we adjust or we address the issues of justice, irrespective of what the conclusion is.
Sure, well I I mean I think the I think the answer to that question is is the committee should do everything in its power to get this issue resolved as soon as it possibly can be resolved while protecting the members' constitutional rights. Right? I mean that's it. Um the fact that there have been lots of stories in the press, and I agree with you, there have been lots of stories in the press, There is a tremendous amount that is not in the press, and and really that's what my concern is. For example, there's there's at least twelve different witnesses, I think, that have been interviewed, uh a handful have been given depositions, uh interviewed by staff, lots of different statements being made. All of those things have not made it into the press. Uh they may, i it's all public record, and they and they have the opportunity to do it. But I'm talking about in the real world, in real life, and and the real world and real life is going to be what appears on Facebook, and what gets onto TikTok, and and what is weaponized. And and the risk here is the weaponization of the work of the committee being directed at the Congresswoman for political reasons, all of which, you know, arguably is fair game in politics, right? Like it's a contact sport, And I get it, and all of that is fair. But it's not okay if it violates her constitutional right to a trial. And we can expect that all of that is going to take place. So if the question is well if not now, when, my answer to the committee is as soon as possible. As soon as possible, without interfering with the member's constitutional right to a fair trial.
So
I go ahead, I'm sorry.
So if the trial just continues, you've done this a long time, when do you would you have some kind of reasonable prediction as to when there would be an appropriate time, other than from a chronological standpoint, other than when it ends? Because you could be a party of continuing it as well.
Right. So so I if I understand the question correctly, I I think that the trial is likely to begin maybe the end of the summer or or early fall as as as the chairman said uh i think the trial itself is probably expected to last a couple of weeks would be my guess um and that's when it would be resolved so really we're i'm not talking about years talking about a matter of months in order to protect a constitutional right so uh you know on the one hand you have this this this not just a desire but a a a a goal, an appropriate goal, to get this resolved as quickly as expeditiously, as reasonable, right? And as appropriate. On the other hand, you have a member wanting to protect their constitutional rights. And their attorney, their criminal defense attorney, is coming to you and saying, look, this is a problem. It's a problem because a lot of the things that are in the press for would never be admissible in federal court. But, but that stuff is out there, and this committee's work is putting a spotlight on all of it. Yeah, it's out there in the public arena. I agree, uh, ranking member, but not the way it will be if this committee starts issuing rulings and making decisions on on things like summary judgment motions then it's a whole different ball game. So, I you know, I I think at the end of the day we're talking about asking you to to stay this for a matter of months. And and I understand I understand the desire to get it completed. But let me ask the members of the committee, do you go through all of this angst when the Department of Justice asks for a deferral? Because it seems to me that when the Department of Justice walks in here and says, don't talk to any more witnesses, staff immediately agrees. Or when the Department of Justice walks in and says we're gonna stay this, we want you to stay this matter until our criminal case is resolved, the committee immediately agrees. I'm not saying if it's right or wrong, I'm just saying that's what happens. And if we give such deference to the Department of Justice, why aren't you giving the same deference to a member of Congress? The executive is not a more powerful branch of this government than the house. They're co-equal branches. And I would respectfully suggest that if we're going to allow the Department of Justice to decide when these hearings take place, Well then uh we should be concerned about the committee members as as well. Basic fairness.
I just conclude that uh from my perspective that's a mischaracterization. We don't let the Department of Justice to decide, and that's what you're arguing, as I hear it. That's the precedent, and there's a reason for that. Uh you're back.
Uh the ranking member yields back. Ashley, any questions? Glenn, any questions?
Yes.
You're recognized.
I don't know if this is on. OK. Um, OK, Mister Barzee, couple questions for you. Um, when we were talking about this, I guess it was last week, and you talked about needing six additional months. Um, is that a different time frame than what you're talking about today? Or was it for a different issue.
I it's a different issue, I I I think it's got a little confused. Um, so
Okay. What what what was the six months' referencing?
I that that was a reference to how much time I would want if I was taking on this case, and I had to come in and argue it, and and I was saying, well, I would want at least six months in order to review hundreds of thousands of documents, interview the witnesses that needed to be interviewed, and be ready to prepare for an adjudicatory hearing.
Okay, but it's not. No. You're sa okay. So then the request you're making is to delay, I guess, the motion for summary judgment until after the trial is over? Is that right? Right. Take take take Let me give you a hypothetical. Let's say the judge sets the trial date well, Yes, sir. well actually before I do that on when he sets the trial date, have you had additional conversations with the No, sir. about when a trial date might be set, since we last talked. No, sir. No, OK. So let's say the Department of Justice and you all and the judge agree to say it, six months, they set it out, then um, you know, November or something along those lines, or perhaps later. Would your request be to delay the motion for summary judgment until after the trial? And uh, by the way, the Fifth Amendment Right, doesn't extinguish with the trial, it would go to sentencing if I read your your motion correctly. So would you want the trial six months for the trial date and then the sentencing date which could be two or three months after that before we would have the motion for summary judgment or would you be amenable to doing something sooner than that?
Uh something sooner, absolutely one hundred percent. Uh as soon as a criminal case the the issue of guilt or innocence is determined by a jury. As soon as a jury's work is done, we would be completely one hundred percent ready for the committee. So it's we're not asking for a delay until sentencing
All right.
or or appeals are extinguished or anything like that.
Okay.
It's just until the jury's work is done,
Okay, fair enough.
because that's what we have to protect.
Let me ask the next one before I run out of time. So um no uh no offense to you, we just we just have a five minute clock,
No, no. Okay, got it.
that's all. So um With respect to the fifth amendment argument uh you know one of the things I would want you to do um if we get to the motion for summary judgment is to explain where the fifth amendment issue would arise. In other words and I know you raised it I haven't I just had this time to skim through your motion so you raised it a few times with respect to creating a uh you know issue with respect to um dispute with r- r- with respect to material facts, but I'd want you to tell me how that is. And we don't know we don't need her to testify. You wanna keep her I get it. You don't wanna put her in a Fifth Amendment exposure scenario. But I would at least want representations about what it is that she would say, or what is that Fifth Amendment issue that would arise. Um and the other part I'd wanna know about that too is whether you can raise it through additional witnesses or documents. You attached some documents here, I haven't had a chance to go through all of them. But I'd wanna know why you can't raise some of those issues just for the dispute of material fact piece. We're not talking about a full-blown trial. Just for that piece, why can't you tell us that? Uh and then the last part I would ask on this, and actually for committee counsel. Um Why not give them the same deference that arguably we give to the the Department of Justice with respect to these kinds of issues. Department of Justice, and we don't always just agree to what they request, but are we giving the same kind of deference to um the member here that we we would with respect to the Department of Justice under similar kinds of circumstances?
Uh I'll take the question for committee counsel first. Uh first as a uh initial matter, the committee does not always defer at the request of the Department of Justice. That's not just recent precedent but precedent throughout the years. Uh uh secondly as to the question of why not to provide deference to respondents when they seek the committee deferral, uh the committee has sometimes stepped back not just at the request of a respondent, but in recognition of the Fifth Amendment concerns when there is a brief non-delatory proceeding like when a a member is arrested for drunk driving or something like that uh but this is uh a complex matter that has gone on for many years and what's unique about this case versus many of the other matters where the committee did defer at the request of the Department of Justice is that in many of those other cases the allegations came to light because of the indictment that the Department of Justice released. But the committee's investigation predates that of the Department of Justice. The committee has a truckload of evidence relating to a sitting member of Congress, and those same TikToks that are inundating the jurors of South Florida are affecting the American public's view of this institution. And so it is a live question now.
Uh, I've run over, so I yield back.
Nathaniel, any questions?
Yes, Th- thank you. Chairman um I've got a couple questions for you, Mr. Barzee. I wanna go back to the second question that the chairman posed to you that I don't think you answered. You artfully avoided answering that question. And that is this, under what circumstances, if any, do you believe this body can move forward with an adjudicatory hearing while there is a pending criminal case? I thought I heard you basically say there is never that circumstance because of your perceived or your argued um imposition on the fifth amendment right of the of of your client. Is that correct?
That is correct. It's not just for the fifth amendment right, but it's also because of the risk of tainting a criminal jury.
So you would you would say to this body, any time there is a criminal proceeding for any any individual uh that has an ethics complaint a complaint in Congress, a person that has voluntarily submitted to those ethics rules and this body's you would say, we must hold off pending the resolution by a jury of a criminal case. Is that what you would argue?
I I I would I would suggest to the court uh I would suggest to the committee that if you are dealing with allegations that are essentially close in nature to the allegations in the criminal case, the most prudent thing for this committee to do would be to stay its proceedings until the criminal case was resolved.
OK. You've softened your answer a little bit because now you're saying it's, it's a matter of prudence not constitutionality. I wanna go to the one case that you cited for us, which is a Western District of Kentucky district judge saying we should hold off. That was your argument, that's what you've cited in your motion to reconsider. Would you agree, number one, first of all, we're not subject to the jurisdiction of the Western District of Kentucky, that's should be plain and easy for everybody to understand. Number, cuz they are a separate branch of the government.
That's right.
Number two, uh there are lots of s- of federal civil cases that we could cite in opposition to say, look, many other judges, and I've been involved in some of those cases, would say, despite the fact you have a pending civil case, under the same factual scenario as a criminal case, we should we should proceed with the civil case. Would you agree with that fact?
Uh absolutely, a hundred percent, yes sir.
All right, that's all I need. You're back.
Heels back, Sylvia.
Thank you, Mister Chairman. I think this is working.
That's working.
It's working now?
Yeah.
Good. Um, Mister Barsik, I just wanna ask you, what has changed since last week for the that you're asking us to reconsider? I mean, what has changed since the the first decision?
Why I'm asking the committee to reconsider its previous
What what new facts, what what what has happened, what has changed, uh that you're asking us to reconsider?
Mm, can we go into the
I I'm sorry, can I have one moment please?
Sure.
Okay, now there is like a whole thing of different parts to it, I don't know what you're talking about. So, after a minute, something will come in.
Well, one one of the issues was Well, I have a couple questions. that I that I'm not sure we raised initially was the committee's rule about um only going back for three years when they're when you're investigating the violations. And and that was something that
I I'm not familiar with that rule. Can can you I'm not familiar with that rule.
I'm sorry?
I'm new to the committee, so. Can you hold a minute, mister uh s Committee Counselor, is that true, do we have a rule of Three years.
Uh that's not accurate. There is a effectively statute of limitations that says that the committee's investigations can go back to the third previous congress. So functionally that is through twenty nineteen uh long before any of the conduct at issue here I don't know why it's relevant to the motion at issue.
So the
So how is that relevant, sir?
The the reason it's relevant is it's it's the rule is three prior congresses. So I don't want I wanna make sure that this committee understands that we're not attempting to run out the clock. So one of the things that we did in the motion to reconsideration to answer the the question as to what has changed is we are affirmatively saying we're not running we're not trying to run out the clock, if there is a statute of limitations, if you can only go back three congresses, we will waive that. We're we're we're not this is not about us getting to zero zero on on the time clock. Uh, we want this matter resolved. We want to come in here and have this matter resolved.
So you don't have any new evidence or anything to support your motion for for reconsideration?
N- I don't have any evidence to present at this time, no. No, I do not.
Um You know, I wanna follow up on on some of the questions Mister Ivey asked about the uh Justice Department deference. What makes you think that we automatically do whatever the Justice Department does?
You know, my my my Irish passion sometimes gets ahead of me. It seems when you're looking at the record that when the Department of Justice in the passes asks a committee to defer, the committee seems to be willing to defer at the request.
But but you say seems, seems is
Well, I I I I I don't know what the committee members
So it's just your so it's just your personal opinion, you don't think it's better?
No, no, no, no, it's I apologize. Uh, I didn't mean to speak over you. No, it's not my personal opinion. It's it's i if if we go back and look at how many times the Department of Justice has asked the committee to defer, it is my belief, based on the historical precedent, that this committee often defers at the request of the Department of Justice. I think that's factually correct.
Alright, but let me move on to one last question, 'cause, you know, as has been pointed out, we're working against the clock.
Understood.
You you um you also kind of threw out there that that you needed more time to review documents. Um but you haven't asked for a continuance to do that. You wanna com- a whole stay on all the proceedings until after there is a conviction.
I as I as I pointed out previously, there's there's really two different issues, the one issue are the
So you're not asking for a continuous.
No, I I am. I I am and I will uh I will now ask the chair and ask the committee to continue this matter in order to give me enough time in order to answer thoroughly the motion for summary judgment in order to give me more time to review the work that staff has done in the case i have been representing this congresswoman for two and a half three weeks um and i and i would pray that everyone on this committee god forbid anyone ever needs a lawyer you want your lawyer to be prepared you don't want them doing it off the cuff
well we want to want you to be prepared we don't wanna face a new lawyer every time we have a hearing asking for continuance, because they need time to prepare. And I believe this is what, the third lawyer or the fifth lawyer? Fourth lawyer?
Understood. And it's a very, very valid concern, and I get it. Um
So what how much time are you asking for, sir? Thirty days, sixty days?
I uh for the beginning of June, I would request.
How how long is that?
Yeah, it was sixty days roughly.
Sixty days?
Yeah. Yeah. I I I'm uh I'm saying the beginning of June only because I'm I'm aware of of your procedures about having hearings within a certain number of days of an election, and I believe our window closes.
Are you the lawyer in the crim in the criminal matter also?
Yes, that's how I became involved.
Okay, thank you, I yield back.
If I had any questions, uh just briefly, I wanna talk about You've you've stated fairly authoritatively about how this would violate your client's constitutional rights but that's a fairly broad statement in numerous in numerous respects, would you not agree?
I absolutely, I hundred percent
If we if we proceed in this and we deny your motion, that is not at all a denial of her constitutional rights. That's your opinion but that is not that's not at all established in in precedent by any means. I mean, we're we're not in a court of law. We're not dealing in a criminal matter. We are a body that's unique unto itself. We're dealing with rules. We're not dealing with any type of of criminal adjudication. So I I I wanna just push back on that a little bit, that we are not violating her constitutional rights if we deny your motion to continue this.
I I I would agree one hundred percent uh with the member. Uh And and that's really what what I am saying is the actions of the committee will result in a loss of her constitutional rights. I'm not saying that the members of this committee are personally responsible for violating her rights.
Sure. So should an Article Three court preclude this from going on?
An Article Three court wouldn't have authority to preclude this.
Well, if we violate her constitutional rights, that would.
You you're not violating her constitutional rights. You're exercising your rights, right?
Yep.
For the House.
Right.
But in exercising those rights to an expeditious hearing,
Sure.
you are putting her constitutional rights in jeopardy.
So I disagree with you. Fully.
Okay?
I mean, i if if that were the case, an Article Three court whose duty is to protect the constitutional rights would have the right to stop this proceeding. And I I disagree forcing us to go forward under a rule, not a law, under a different different evidentiary standard, not proof beyond a reasonable doubt, that her rights are not violated.
I I I appreciate your opinion. Uh I I disagree with it completely and I'm not again, I'm not saying that you are the one who is violating
This committee would if we decide to go forward.
What I what well well let me reframe it. What I am saying is the actions of this committee will result and a loss of her constitutional rights because it will be impossible for her to have a impartial jury if
Well that's what I wanna talk to you about.
everything that happens here
That's also that's the second part I wanna talk to you about. There you would you would stipulate there are criminal trials that have received far more coverage far more attention, far more slanted receipt from the public than this if she were to get a trial, correct?
Not when a committee of the House
You wouldn't stipulate you wouldn't stipulate that?
Not not in cases where a committee of the House of Representatives declares guilt or innocence. This isn't about pretrial publicity.
We're talking about rules,
This is about
not crime, but you you you it's it it it's your testimony or your argument that if if we go forward, that that will be the most prejudiced of any jury trial in a criminal context.
What what I'm saying is if you go forward, any decision that this committee makes, for example, this committee says we find you in violation
Of rules.
of rules.
Correct.
I I I know that the member is a lawyer. I know that the member worked in the prosecutor's office.
Yes.
I I get it.
And I saw lawyers,
It's it
I saw defense lawyers, every trial advocate for limiting instructions, motions and limiti motions to exclude evidence, There were cases that had dozens of press releases, interviews, arguments that fit exactly within what you're saying, and it's the job of the court and counsel to ensure that juries only consider what? Evidence presented in the trial. Not what we decide here.
We're not a jury.
Most re
Uh, is is that correct?
Most respectfully, they're not robots. We're talking about human beings. Y yes, everyone tries to give someone a fair trial and that's what judges are supposed to do,
I could
and I appreciate that. But but prospective jurors aren't robots.
You're saying that's an
If they hear that she's already been found guilty,
But you
how can she have a fair trial? This isn't about pretrial publicity. This is about the House of Representatives passing on the same issues that a prospective juror is going to be deciding.
She would be found in violation of the rules of the house,
Well
not the law. There is a very real distinction there.
And do you think the pr-
I hope you would I hope you would submit that
I I absolutely.
in agreement.
And do you think the press is going to follow your admonition
Okay.
and say that she was in violation of a rule of the house? Or do you think the press is gonna say, Congresswoman guilty?
Yeah. Candidly. That's the job of the defense counsel. To ensure that standards met.
I I agree with you, sir.
Yes, sir.
And I'm doing my best.
You are. You're doing a great job.
I yield back.
Gentlemen yield, su haus.
Thank you.
Thank you.
Thank you, Mr. Chair. Uh, I just wanna ask one other question that you based on something you brought up. Uh, you mentioned the tainting of the jury pool. Uh, wouldn't you'd be able through voir dire be able to uh sift out a any jurors who might be biased uh from anything they may have seen in the news?
Uh abs absolutely. I mean that's one of the safeguards that that that the uh member from North Carolina was pointing out. Um there are safeguards and I would be able to theoretically if the if the if the federal judge allowed me to I would be able to voir dire members of the panel about what they heard. But my my my point to you is that let's be real, all right? Let's not try to say, well, this is a violation of a rule as opposed to a law. Eh, let's talk about what people are going to understand. And yeah, a prospective juror who sees on CNN the banner that that that she's been found guilty by the House of Representatives yeah maybe that juror comes in accord and says yeah i won't i won't consider that but it's there it's on their mind it can't not be if i asked everyone in this room right now not to think of a pink elephant guess what everybody is thinking of right now pink elephants we're human beings we're not machines
i i think your your point your point's taken thank you thank you uh do you have any other um points you wanna make i think we heard a lot of this last week actually but i wanna give you some time to make any uh any uh new points or additional points you haven't made
thank you the the additional point for would be the request for a short continuance in order to give us more time to develop a response to the summary judgment motion um we we filed something at the last minute but it is it is not what the congresswoman deserves she deserves uh to have lawyers working on that for a while and to present a solid answer to the committee's motion for summary judgment. So at the very least I would request a continuance until June, uh, so that we would have time to respond to that motion.
And and, uh,
Thank you, sir.
Committee Counselor, do you have anything else to add?
I'll just note that with respect to the fifth amendment's application here, uh, it is not a settled matter that the fifth amendment would bar a parallel proceeding, such as this one. there are matters where adverse inferences are drawn in civil proceedings all the time, whether it's a Securities and Exchange Commission matter or divorce proceeding or anything like that there are a lot of matters that need to run in parallel to criminal proceedings what's unique here is that uh this is a matter that also involves a distinct branch of government with its own mandate. Uh I'll also note that this is not a matter where we are suggesting the committee draw adverse inferences but that it work with the record it has before it, to meet its obligations.
I yield back, thank you.
Uh Jim, it yields back, uh we've had a request for one additional question from Mister Ivey and then Miss Henson wishes to make a statement, so Glenn you're recognized. You go ahead.
Okay. Thank you, to both of you. Um, I I wanna see if I can tease out where we are with respect to the stay versus continuance. So the stay, I think we've kinda argued past that um because just the length of time and the issues that are raised with respect to the fifth amendment challenges and the like. The continuance piece though, um, l let me ask wh- why, um, why do you need additional time? And I I want more specific than there's a lot of documents out there and I need time to go through them. What exactly would you like to try and do to address the issue with respect to um the speech with respect to material fact that would be relevant to the motion for summary judgment. What exactly you are you trying to do, and how much how little time could you do that in?
The very first thank you, sir. The very first thing I would do would be to sit down with my client and come up with a list of witnesses to interview to offer
No, I I don't wanna get in your attorney-client purpose piece,
Okay.
but I bet you've done that already, right?
No, I I haven't.
You haven't had a chance to do that with her?
Sir, we've been we've we I've had the case for two and a half weeks.
No. Okay.
We have not we have not arranged for witness interviews.
Not witness interviews, but just with respect to talking with her about what time, okay.
But no, no, we've talked, but I need to get people into the office, I need to set up interviews.
All right.
We we need to work on the case, we need to go through the documents. and prepare responses. None of that has been done, not really.
All right, and then
Uh, we did our best in two or three hours to put something together, but she deserves a a a real response to this motion, and in order to do that, it's gonna take time.
Okay, and then the documents that you did attach um to the motion you filed, I think these were the documents you attached, um Can you tell me briefly what the relevance you got an affidavit, I saw a notice of a a settlement agreement, if I recall correctly. There was a document on there that was too small to read for an old eyes like mine. What are what are the points that are raised in those documents that would be relevant to the motion to dismiss?
To the summary judgment motion.
Uh, yeah, I'm sorry.
Yeah, first you have an affidavit in there that is contradicting um evidence that staff was relying on in their summary judgment motion. Saying that that did not happen. I was a witness to that and I saw it differently. So that is a conflict in the
What what i what is the that?
The the the specific disagreements?
I mean it doesn't have to be all the way in the weeds, but give me a general sense of what the disagreement is.
disagreements about about why money was moved for example from one account into another how loans were made who was responsible for directing those transfers of money uh you have a a staff has a witness who's claiming that the congresswoman purposely put money into an account and then withdrew it in violation of of fec rules and regulations and uh my understanding is the witness is going to say that that's not what happened. The Congressman never directed that for it to happen that way. It was done by another individual.
That's is is that the affidavit or is that what
I mean That that's the affidavit.
Okay.
I mean I I don't I mean to be honest,
Okay.
you know, this is part of this is just having the case for two and a half, three weeks.
I'm not trying to pick it apart.
I'm trying
I'm just trying to figure out what what the documents
Yeah.
were and and the relevance of those to to the motion.
Well, the y yeah, the the other things that that that we attached was the fact that many of the complaints that that have been alleged by staff um were also um investigated by the fec and they had to do with the fact that this was the congresswoman's for example the most recent ones you know maybe her first successful election and having volunteers handle things like financial reports and not having a professional compliance team on board. Um, so lots and lots of different mistakes were made and a lot of those mistakes are reflected as complaints of the violations. The information what
That that's the that's the settlement agreement, the FEC settlement agreement?
This there was a settlement agreement where the FEC referred the congresswoman to alternative dispute resolution, uh, indicated that she needed to hire professional compliance staff in the future. um that somebody had to undergo uh remedial training on the necessity to file certain financial disclosures all of which has been done
uh ok ok and then that document that you have there is some kind of a it's too small for me to read but it was it was like a spreadsheet
it's it's huge that's the most important document and that's a document that
what is that
unfortunately touches upon the criminal case which is one of the reasons why it's troublesome for me to get into it but one of the major allegations that staff has made is that uh trinity healthcare services funneled money illegally into the congresswoman's campaign and that the congresswoman was just taking money from trinity and using it for her campaign nothing could be further from the truth one of the things that we filed so that the committee has it in front of them is the fact that she was entitled to certain percentage of profits of Trinity, and the money that she was receiving from Trinity was not money that Trinity was using to finance her campaign, it was money that was legally obligated to be paid to her, as part of the profit sharing agreement, and those are the documents that were presented.
And I I know I've I appreciate the indulgence of of the chair, could I ask cou- uh counsel for the committee to respond to What they've heard? By all means.
I I think much much of what Bart uh represen what Representative Sheriff Nicholas McCormick's counsel has raised goes towards the motion to summary judgment and we're happy to address it in that context. To the extent that he is uh raising a new motion seeking some additional time a continuance of a couple weeks, uh while that is procedurally improper, uh we're not objecting to him raising that now, uh And we wouldn't object in theory to the idea of a little more time, but we would raise some concerns about that concept. It's a little unrealistic given the realities of the house calendar and scheduling thing and then the blackout period that's been referenced would start in I believe on June twenty fourth sixty days prior to an election in which the respondent is a candidate uh the process that we're undergoing is more than just one day. This involves a a judicatory hearing at this time but provides for a sanctions hearing to follow, and then likely a resolution for the entire House to consider. I think that the reason why we are here now i at this time is because this is what puts the House on track to consider this in a timely manner before that blackout period begins.
Thank you, Mister Chair.
Jeremy Yeals back, uh passed over, uh Miss Henson, Miss Henson, you have five minutes to ask questions or make a statement.
Thank you, Mr. Chairman. I just wanna um make a quick statement. Um in council's opening remarks about the motion, um it was implied that this is being done for political reasons. And I I just wanna say, and you said that earlier today, I I wanna be very clear that this committee is about respecting the integrity of the house. It's not political reasons here. You have an evenly balanced Republican and Democrat um uh rostrum here. And I think it's very critical that we clear the air there and make sure that it is on the record that this committee is about respecting the integrity of the house. Do you dispute that you said that earlier? Because I wrote it down and you didn't.
I if I if I did, I withdraw that, I I did not mean to make that statement about the actions of this committee. I was not at all suggesting that this was some kind of a political vendetta against a congresswoman or that the republican members of the committee were acting inappropriately in any way whatsoever uh so I withdraw that if if if that was said, that's not what my intention was. My my my point was we live in a political atmosphere and of course her political opponents not meaning the Republican Party meaning people wanting her congressional seat are going to weaponize whatever this committee does against her. That was my point, not that the committee was acting inappropriately in a in a political way. I I don't believe that to be the case.
Thank you for the clarification. I yield back.
Yes ma'am.
General Lady Yields back. Uh I wanna personally thank uh counsel for both sides for their arguments. Uh thank you for uh ask answering questions uh proposed by this body. Uh at this time the subcommittee we will recess the hearing to allow us to move into executive session and to consider deliberations on this matter uh and uh once we have reached a decision uh we will return so with that uh the committee, we'll stand and recess.
I'm gonna take this back with me.
That's not fresh, is it?
I'm
So then get back in the air. Yeah, that's true. Well, I'm inclined against the little tunnel. It's
Well, you're saying it's air, it's air, Oh he's got a little bit of it, It's like a little and then you said, you said, no, no, no, no, no, no, no, no, yeah, sure, sure. you know, it's like,
Uh the committee will come to order. Uh as we return uh from our deliberations.
Thank you. Thank you. Thank you.
Uh it is the decision of the subcommittee uh that the respondent's motion to reconsider is denied. Uh we will then move forward at this point with the motion for summary judgment. The subcommittee will now hear arguments from committee counsel for summary judgment. Because this is the council's motion, I will recognize committee counsel Sidney Bellwar for arguments on the motion for summary judgment. Uh and at the conclusion of those arguments uh counsel for the respondent, Mister Berzier, you will have the opportunity uh to argue on behalf of your client. So at this time uh counsel for the committee, uh the floor is yours.
Thank you. Good evening, Chairman Guest, Ranking Member Desongnyay, and members of the Adjudicatory Subcommittee. I am Sidney Bellwar, Senior Counsel for the Committee on Ethics, and I wanted to take a moment to introduce the other staff who are here with me today, Brittany Peskitor, the Director of Investigations, Jen, Seba, and Ray Radican, who are Co-Counsel on this matter. And we are all part of the committee's non-partisan and professional staff. Committee counsel welcomes this opportunity to make clear that the committee's investigations seek only to find facts, and based on those facts, determine whether there have been violations of any law or ethical standard. The Committee on Ethics is uniquely charged I can't hear you. We introduce the doctor.
Mister Chairman, I'm still having trouble hearing her.
Okay, uh uh please uh leave it off the call callers.
My apologies. Committee counsel would also like to be heard on the motion for summary judgment that we noticed on March sixth, twenty twenty six. The motion before you argues that the facts relied on by the statement of alleged violations are uncontroverted and supported by the record, and that those facts are sufficient to find each count in the statement of alleged violations has been proven by clear and convincing evidence. The memorandum in support of the motion extensively cites the statement of alleged violations, which itself is supported by the voluminous record in this matter, including bank records, witness testimony, and contemporaneous text messages and emails. Respondent's response to this motion, submitted thirty minutes before the hearing was scheduled to start, argues that motions for summary judgment are not allowed in criminal proceedings. Notwithstanding that this committee is a civil, legislative, and the committee counsel's submission is not a motion for summary judgment under the federal rules of civil procedure, committee rule twenty three O clearly contemplates this type of motion. Essentially, a motion to rule on the papers. Rather than putting on a trial with public examination of witnesses, we are here today to outline the information that you already have and answer any of your questions. Going back to twenty twenty three, respondent has had every opportunity
Sidney, let me interrupt you very briefly, the the acoustics in this room are not ideal uh and if you would please, I know you're trying, please
Yes, thank you, sir. Respondent received a copy of the draft statement of alleged violations, supporting evidence and exculpatory evidence prior to the investigative subcommittee's adoption of the charges. And respondent had the opportunity to object to the evidence relied on in the statement of alleged violations, negotiate the facts and counts to be included in the document, or engage in settlement negotiations. She did not do so. Prior to today's hearing, respondent was again given the opportunity to object to the evidence relied on by the statement of alleged violations. She was also given the opportunity to provide notice of any evidence that she intends to present or witnesses that she intends to call in opposition to the notice motion. Respondent waited until less than an hour prior to this hearing to file a response, in disregard of the already extended deadline granted by the adjudicatory subcommittee. Regardless, the submission does not raise any legitimate disputes as to any material facts. To the extent council attempts to introduce new facts to the matter at this stage, his representations are not evidence. The adjudicatory subcommittee has convened here today to consider whether the record established by the investigative subcommittee proves the facts and whether those facts are sufficient to prove each count in the statement of alleged violations. The twenty-seven counts charged in the statement of alleged violations are as follows. Counts one through seven relate to the improper receipt of funds by respondent's campaign from her parents' health care company, Trinity Health Care Services, either directly or through conduits and respondent's receipt of funds from Trinity to which she had no legal right. Counts eight through twelve relate to the improper receipt of funds by respondent's campaign from other organizations including political action committees non-profits and corporations. Counts thirteen and fourteen relate to respondent's campaign's failure file accurate reports with the Federal Election Commission. Counts fifteen through seventeen relate to criminal violations implicated by respondents' conduct with respect to funds from Trinity, and a Florida-based company, Petrogas Haiti, as well as false statements. Count eighteen relates to violations of House rules concerning commingling of personal and campaign funds. Counts nineteen through twenty-three relate to respondents' failure to file certain required financial disclosure statements with the House. and reporting errors contained in financial disclosure statements that she did file. Counts twenty-four through twenty-six relate to violations of house rules concerning special favors and acceptance of voluntary services by respondent's congressional office. Count twenty-seven relates to respondent's lack of candor and diligence during the investigative subcommittee's investigation into respondent's conduct. Nearly all of these counts are charged as violations of the Code of Ethics for government service. and the Code of Official Conduct. The Code of Ethics for Government Service requires those in and seeking to serve the government to uphold the laws of the United States and never be party to their evasion. The Code of Official Conduct requires members to follow both the letter and spirit of the rules and to act in all times in a manner that reflects credibly upon the house, and applies to counts related to respondents' conduct after she became a member. In addition, each count describes the underlying laws and rules specific to the conduct enumerated in that count. A full recounting of the facts underlying each of these charges is extensively documented in both the statement of alleged violations and the memorandum in support of the summary judgment motion. The facts which are supported by the record show that Respondent has attempted time and again to circumvent the laws and ethical ethical standards to which she is subject. Fundamentally, the allegations before you involve a member of Congress, misleading constituents, the FEC, and the House of Representatives, in order to obtain and keep a congressional seat. Respondent won a seat in the House of Representatives after portraying herself as an independently wealthy non-profit founder who s- self-financed her campaign. However, the record reveals that this apparent non-profit, Essential Community Health, initially entered into a contract with the state of Florida regarding COVID-nineteen vacsa- vaccinations in February twenty twenty one, despite making claims in its submission that were untrue. In fact, Essential Community Health was a sham, and the source of Respondent's wealth was actually her parents' health care company, Trinity, which became a party to the contract instead of Essential Community Health. At that time, Respondent had been the CEO of Trinity for years and had earned his salary of around eighty-six thousand dollars annually, according to her tax records. But in twenty twenty one, Trinity received over fourteen million dollars from the state of Florida pursuant to this agreement. More than half of that fourteen million from the state of Florida ended up with Respondent and her siblings. Publicly available records show LLCs owned by Respondent and her siblings, SCM Consulting, EC Firm, and MC Nursing were formed shortly after Trinity was awarded the COVID-19 vaccination contract at the beginning of March, twenty twenty one. Their bank records show these companies had little or no other clients. Respondent, her siblings, and their LLCs did not enter into consulting contracts with Trinity, but did split the profits of the money Trinity received from the state of Florida. Bank records, Trinity's internal records, and Trinity's tax documents show that Responder received approximately six point seven million dollars from Trinity, in addition to her annual salary. Two point three million of that went to her directly, and four point four million went to her consulting company, SCM Consulting. She and her brother also received around six hundred thousand dollars from Trinity in twenty twenty one through EC firm which they co-owned. Hundreds of thousands more went directly to her siblings, their LLCs, and her close friend and District Chief of Staff, Natige LeBlanc. Most of that money made its way to Respondent's campaign. Some transfers of funds were reported as personal loans from Respondent. Some were not reported at all. And many were reported with inaccurate amounts, dates, or sources. Respondent's respa response argues, quote, " the record reflects that Trinity did not transfer any funds to Respondent's campaign." But it did. Bank records clearly show that Trinity, a corporation, made direct contributions totaling nearly two hundred thousand dollars to the campaign. In addition to the funds that flowed directly to the campaign, respondent and her siblings funneled more than five hundred thousand dollars, originating from Trinity into various outside organizations that made expenditures on behalf of the campaign. A candidate can donate her own money to her own campaign, but it has to meet the legal definition of personal funds. Respondent was aware of this as early as March twenty seventh, twenty twenty, when her campaign advisor explicitly told her. Nonetheless, during Respondent's twenty twenty campaign, Respondent reported a fifty thousand dollar personal loan that she did not actually make. Instead, just before the filing deadline, Respondent received fifty thousand dollars from her husband's law firm and put that into her campaign account. Then she paid her husband back with funds from the campaign just after the filing deadline passed. In her successful election to the House, respondent repeated this scheme on a much larger scale. Bank records show a pattern of respondent moving money into and out of her campaign accounts just before and after the filing deadlines in the special election, misleading voters about the strength of her campaign. The most egregious example of this scheme is when in on June twenty third, twenty twenty one, Trinity transferred two million dollars to the respondent, who transferred this money to her campaign the next day. Then, shortly after the end of the filing period, on July second, respondent returned the money to herself nearly in full. Respondent was also aware that there were limits on who could make contributions and in what amounts. In twenty twenty one, individuals could donate a maximum of two thousand nine hundred dollars per election. In text messages to her campaign treasurer, respondent indicated that the contribution limit was why her sister gave money to her friend Nadege LeBlanc to give to the campaign, with Nadege acting as a straw donor. to funnel additional funds originating from Trinity into the campaign. These schemes paid off, and after a recount responded won her election by five votes. Meanwhile
Okay, Mr. Chair, okay, can I ask questions as we go ahead?
So I can understand what's what um
Uh
the exhibits are saying and how they connect to which campaign.
Uh I would prefer, Mr. Avi, if if it would be okay to wait until after a presentation
Thank you. Meanwhile, Thank you.
Yes.
the campaign had also been paying respondent back for her loans, even though they did not all originate from her personally. Bank records show that respondent has received two point eight million dollars from the campaign since twenty twenty one. Between the transfers of funds for purported personal loans and loan repayments, as well as the numerous other discrepancies apparent in Respondent's campaign bank records Respondent has made at least sixty filings with the FEC, containing false and inaccurate information. After spending much of the funds obtained from Trinity during the special election, Respondent found herself immediately having to run again for the twenty twenty two election. Text messages show that Respondent and her campaign advisors were concerned that she would be outraised in the first quarter by her primary opponent, who she had only narrowly beaten in the special election primary. Bank records and text messages show the respondent again deliberately inflated her campaign committee's cash on hand through making and reporting a large personal loan to the campaign. The campaign reported receiving more than a million dollars from respondent, when in fact, respondent transferred four hundred thousand dollars to the campaign, and the campaign did not receive that money. until just after the reporting period ended. It was also repaid a few days later, similar to the scheme used in her prior campaigns. In respondent's response to the motion, counsel asserts that, quote, the record reflects that funds were available to satisfy campaign related expenses from lawful sources, end quote. But that is inaccurate. The record reveals that respondent's twenty twenty-two reelection campaign costs were largely and impermissibly paid for by companies and political action committees run by her friends and family. According to bank records, the single largest source of funds that ultimately went to these organizations in support of Respondent's re-election campaign was Petrogas Haiti, which itself was primarily funded by the Haitian government during the relevant period. Having demonstrated concerns about financing her re-election campaign, Respondent had a meeting with the owner of Petrogas Haiti, arranged by the chair of her leadership pack, Michael Joseph. A few days later, Petrogas Haiti started making payments to a newly created organization called Progressive People, Inc. Progressive People was created by Michael Joseph and respondent's husband, who served as the president and vice president respectively. Petrogas Haiti gave Progressive People eight hundred and ten thousand dollars in twenty twenty-two which accounted for almost ninety percent of funds that Progressive People raised that year. The majority of that money, seven hundred and twenty-five thousand dollars, was passed on to a company called Truth and Justice, Inc., which was run by Respondent's campaign consultant and spent nearly entirely for the campaign's benefit. At the same time, Respondent and her siblings were also providing funds to Truth and Justice, and to political action committees associated with the then-president of the National Haitian American Elected Officials Network for the benefit of the campaign. Most of the arguments in response to this motion essentially suggest that there is sufficient evidence that respondent was aware that her campaigns were being financed through the very companies she and her family members were funding. That not only strains credulity, but is belied by the numerous contemporaneous emails that she has copied on regarding coordinated expenditures or messages with her campaign staff about varying payment sources. Candidates and members are also required to file financial disclosure statements with the house. Respondent was as cavalier as she was with her campaign finance reporting with the accuracy of her required house filings, if she filed them at all. The record demonstrates that respondent knowingly did not timely file her required candidate disclosure statements for several years in which she qualified as a candidate. In an email to respondent from her campaign advisor, sharing press coverage of her delinquent filing for the twenty twenty two special election, he noted that quote, " no record can be found of a candidate who is not yet a member being for withholding the required pre-election disclosure." With this knowledge and her campaign's funding already under media scrutiny, respondent intentionally waited to disclose her finances until after she won her competitive primary. The evidence also shows the respondent has not filed full and complete financial disclosures since becoming a member of Congress. As a member of Congress, respondent has brought the same disregard for the rules to other ethical standards applicable to members, accepting volunteer services from a campaign advisor, including for franked communications, and using her position to benefit her allies with special favors during the appropriations process. Around the time that he was setting up Progressive People, respondent's friend and leadership PAC treasurer Michael Joseph was contacting respondent's congressional staff to pressure them to submit specific community project funding requests to the appropriations committee. When staff objected to some of the projects, respondent overruled them, including use of using one of the fifteen slots for submissions on a project that one staffer had already identified as being ineligible. She similarly prioritized a community project funding request for a foundation associated with an individual whose company provided messaging services to both respondent's campaign and congressional office. In her response, respondent tries to create what her counsel deems, genuine issues of material fact, by alleging in some instances that respondent did not know better or was in the dark about what her closest advisors, family members, and staff were doing. But in almost every instance, counsel has argued that respondent's knowledge was not material to the charge. Very good. Rather, it was how her campaign or congressional office operated, uh, which are organizations that she's ultimately responsible for. Finally, the record reflects that respondent did not meet the level of diligence and candor owed to the committee by respondents. Responder was given every opportunity to address the allegations in the investigative subcommittee's two-year investigation. Responder received three separate requests for information, which were ultimately narrowed to reduce the scope and burden. She also spent several months considering and ultimately agreeing to a voluntary interview only to cancel two days in advance. After multiple assurances of continued cooperation, followed by no meaningful progress, leading to significant delays in its investigation, the investigative subcommittee felt it was necessary to authorize subpoenas to respondent for her testimony and documents. Respondent has a fifth amendment right not to incriminate herself, but she wasted valuable time and committee resources in feigning her cooperation. Since this adjudicatory subcommittee has been established, respondent has likewise flouted the deadlines established by the chairman and ranking member including making an untimely response to the instant motion less than an hour prior to this hearing. Any evidence in that response could have been provided at any time during these proceedings and indeed at any point during the investigative subcommittee's investigation. With that said, committee counsel welcomes any information of actual relevance, and we are prepared to answer any questions the adjudicatory subcommittee may have, including regarding respondents' last minute submission. Committee counsel submits to you that no dispute of material fact exists, related to this motion. What does exist is a mountain of evidence showing
Uh thank you, Mister Barzi, you're now recognized to argue on behalf of the respondent.
Most respectfully, the idea that staff is asking this committee to grant a motion for summary judgment, knowing that she is disputing all of the facts that they are alleging, knowing that her prior counsel has in writing indicated that they dispute these facts and these allegations. Should tell you something. Uh, I have my client on the one side of me saying, that's not true, I wanna get up and I wanna testify and I wanna explain something. I have to advise her not to, because I have to protect her fifth amendment rights for the criminal case. And on the other side I have staff attorneys running through a litany of facts, all of which have been contested by prior attorneys with their knowledge. They've denied all of these allegations, they've stated that the Congresswoman is not guilty of these violations. I mean, listen, if the committee is going to take action, at the very least you have to give us a hearing, you have to allow me to call witnesses on her defense, You have to let me cross-examine witnesses that staff put up. You can't just decide this on the paper and and and and push it aside. I need to be able to to see witnesses. She has a right to confront those witnesses. I have to be able to cross-examine people. We do not accept the facts as they are alleged by staff. And we've tried to do that in the best way we could at the last second. I'm not gonna go through the request for more time, but this is the problem that we're in right now. And what I would suggest to this committee is the idea of just deciding all of these issues on summary judgment without giving me an opportunity to cross-examine witnesses without giving me an opportunity to put witnesses on the stand, without giving me an opportunity to have enough time with the Congresswoman to discuss who else could be a witness, that I'm not even aware of yet. I mean, these are the things that have to happen. These, thi this is what, and I understand it's a different branch of government, but this is what Article three courts refer to as due process, due process of the law. Meaning we don't railroad people and we don't decide things before there is a full hearing. before everyone gets a a chance to say something. I'll give you an example. One of the documents we filed, and yes, it was filed late, and I apologize for that, but one of the documents we filed is proof beyond any doubt whatsoever that there was a profit sharing agreement at Trinity that she was entitled to every single penny that she received from Trinity, that that profit sharing agreement predated everything that happened in this case. predated the wrong payment that the state of Florida made to Trinity. So this profit sharing agreement in and of itself is enough to defeat the motion for summary judgment because it shows you that there are material facts that are in dispute. The Congresswoman does not concede at all the idea that that she received money from Trinity, that she was I think the wording in in in staff's paperwork is is not entitled to. That's an absolute fact in dispute.
The second document.
And I would urge you to allow me to call witnesses that can testify about this profit sharing agreement, call witnesses that would be able to testify that the Congresswoman was entitled to each and every penny that she received from Trinity. The other factual disputes are set forth in the in the affidavit that's before the committee already. I mean, this is just this is just scratching the surface, but you can see how obviously the Congresswoman has disputed all of these allegations and all of these facts. This affidavit points out that the Congresswoman had basically no involvement with working out those those those financial disclosure forms, that other people in the campaign were dealing with that, that that wasn't her responsibility. This is what the affidavit says. I attest there are several matters referenced in the statement of violations that were solely controlled by individual one as opposed to the respondent and to which the respondent did not have knowledge. So if she didn't have knowledge of something, if she didn't have knowledge that a financial form that was supposed to be filed wasn't filed on time, and the Congresswoman has no knowledge of that, and this is her first rodeo, is this committee really gonna just decide that she she intentionally violated finance campaign law? That would be a travesty of justice if that were to happen. without calling witnesses without giving me an opportunity to cross examine someone without giving me an opportunity to put a witness on the stand to take responsibility for some of this she says the the the is the person who fills out the affidavit said regarding campaign operations individual one made ninety five percent of all strategic decisions The respondent's involvement was limited to expressing general preferences or needs. The respondent was rarely present in the campaign office and did not participate in administrative or financial tasks. So put aside your your beliefs as to what happened, just procedurally speaking, that statement in the affidavit, if true, should be enough to cause this committee to say, you know what, let's have a hearing. You want transparency? You want the public to know exactly what happened? There's only one way to do that, members, and that is for you to allow us to have an adjudicatory hearing, allow me to cross-examine witnesses that are saying things about the congresswoman woman who aren't even here right now. How would that possibly be fair? I understand that the committee is frustrated because of the congresswoman has gone through multiple attorneys, I get that, and I understand that staff is frustrated because the congresswoman didn't show up for their interview, and didn't comply with all of their requests. I understand that. And you know what? You can punish her for the delay. You can punish her for not speaking to staff when she said she was going to. But by gosh, at least give her a fair shake and let me cross-examine some witnesses. Let me put some witnesses on the stand to defend her and to tell you what happened. If the committee really wants the truth and you really want transparency and you wanna get to the bottom all of this let me call somebody who will explain to the committee that every single penny she received from Trinity Healthcare she was entitled to. The entire complaint reads as though Trinity Healthcare was pouring money into the campaign, right? That's that's what the alleged violations say over and over and over again. Well, that's a factual dispute, because our argument is that Trinity was paying the Congresswoman her percentage of profits that she was entitled to. And what the Congresswoman decides to do with her own money is up to the Congresswoman. And if she wants to put money into her campaign as a loan, as far as I understand, she's allowed to do so. But you know what I would like to do? I don't wanna testify, I wanna call a witness. I wanna call someone who can explain to the committee what exactly occurred with the finances, and how she put the money into the account, and when she put the money into the account. The record reflects competing evidence regarding the respondent's entitlement to the funds. There's a genuine dispute concerning the nature, authorization and intended use of the funds at issue, as well as the respondent's intent which would absolutely preclude this committee acting on summary judgment, without having a full public hearing, so everyone knows exactly what the witnesses are going to testify to. The terms of the agreement that the congresswoman had with Trinity, including her hourly compensation and profit sharing, are all reflected in cont temporaneous communications including the uh the document that I earlier submitted from March fifth two thousand twenty one which shows the projected financial report for Trinity and the administrative cost the affidavit you have in front of her says that she relegated the authority to fill out all of the financial disclosure forms and do all of the reports to someone else in the campaign Now, maybe that was a mistake, maybe she should have been using professional compliance people to do all of her money. I I would agree with that a hundred percent. But the question is whether or not her personal acts were in violation of these house rules or reflects poorly on the house. The only thing it reflects poorly on is perhaps her managerial uh expertise in hiring the people that she hired. Because according to the affidavit in front of you, according to the documents that have been submitted, there are serious disputes as to what happened in this case. And the Congresswoman by no means, by no stretch of the imagination agrees with the facts as they have been presented by staff.
Right. It's okay. Okay, what would the A's do?
The the the issues as far as the FEC cons are concerned, that went to the alternative uh dispute resolution and were resolved by the FEC are are another evidence that we disagree with staff as to the facts as to the level that that of of of malfeasance that's that that arises as a result of the poor paperwork and the poor financial reporting that was done by the people that she, her campaign hired. We acknowledge, we acknowledge, and I acknowledge right here that that many many many mistakes were made with her campaign and the way they reported the funds. There's no question about that. But that's as far as the agreement between us on the facts goes. After that, you have a complete disagreement as to what occurred. And in order to get to the bottom of that, and make a decision as to who's telling you the truth and what actually happened, there's only one way to do that. And that's having a trial, or having a hearing, and calling in witnesses. and questioning them under oath, and giving me an opportunity to cross-examine witnesses that are claiming falsely, falsely, that the Congresswoman did something wrong. So if the committee is not going to pen i- stay these proceedings until the criminal case is resolved, which would give me an opportunity to allow the Congresswoman to address the committee, If you're not going to do that, and you're not going to grant me a continuance in order to respond to the motion for summary judgment, at the very least, now is the time to pause. Now is the time to realize that that the community, that the public, deserve to be able to hear these witnesses. And the Congresswoman certainly deserves the opportunity to be able to cross-examine witnesses that are claiming that she did things improperly, when we have the evidence that it's not true. And and the funds flowing from Trinity are the most important part of that. Because the the funds flowing from Trinity to the consulting business, to the Congresswoman, all worked out ahead of time with a profit sharing agreement, That's half of the violations are related to that. So you you now have evidence in front of you that there was a there was a profit sharing agreement in place. You have an affidavit in front of you saying that she's not the one who's making the financial decisions, someone else in the committee is. You have her prior attorneys informing the committee that she disputes the facts as alleged. and claims her innocence. So you really gonna deny her the right to defend herself in front of an adjudicatory hearing? Are you really contemplating denying her the right to call witnesses on her own behalf? Are you seriously contemplating the possibility that her lawyer wouldn't be able to question those witnesses under oath to test their veracity? to weigh their credibility? If we want the truth, let's hear the truth. Let's parade the truth for the public, so everyone can see what really happened here. Please don't make the mistake of deciding this based on some documents and papers that staff put together, rather than having a full hearing and hearing from witnesses, and allowing me to defend this woman. Thank you.
Uh we'll now move into uh opportunity for members to ask questions. Uh, Mr. Barthel, you are aware of summary judgment. Uh, that is a procedure that is regularly used, that is not unique to this courtroom. And we see that happen in courtrooms across this country. And so for you to sit here and make the claim that we, the committee, is trying to trample upon the rights of your client, I I take offense to that. For two years, and I'm gonna defend the process, for two years the committee has worked together documents. For two years we've tried to get documents from your client. Not only have we requested documents, but we have subpoenaed those documents. Those documents were not provided. For two years we tried to get a statement from your client. even going to the point of issuing a subpoena. She does not have to talk to us. She can exercise her fifth amendment rights just as she did. But for you to out- allege that all of this information is new, that we've not tried to gather this information for the last two years, I I find that offensive. And I'm personally offended because I know the work that this committee goes to protect all members and to make sure that we go above and beyond to make sure that there is fairness. And in this motion for summary judgment, you have had the opportunity to call witnesses. You you can call witnesses. No one has prevented you from calling witnesses. We've allowed you to enter documents as exhibits to your response to the motion for summary judgment. Uh, and so for you to claim that we are doing something that is improper, that is wrong, we are following the same procedure that this committee used sixteen years ago, in the Rangel We are following a procedure that we see happen in courtrooms across the country each and every day where there are disputes as to the facts,
Mm.
but motions for summary judgment are one way short of a trial in which those, the facts, in which those facts are decided. And that is how the committee is following this process. We are not trying to circumvent your right to call witnesses. We're not trying to prevent you from being able to present documents to this adjudication subcommittee. And you have the opportunity to present documents which you have. You have the op- opportunity to submit a response which the committee accepted late. You have the opportunity, if you wanted to, to call witnesses. And so for you to make the allegation that we as an investigative subcommittee are trampling upon some sort of rights of your client, uh, I I I I take offense to that. And and I just wanted to make the record clear that we as a committee for two years have looked into this matter the investigative subcommittee has that we've been now on their fourth attorney that every time we talk to attorneys and every time we try to get documents every time we try to allow them to present us anything that would tend to sh- to contradict the facts that the committee has got. In other word, w- we we've not received that. And so again, for the record, Uh you make a good record that your client just got an attorney and that the and you make a record that this is a brand new proceeding and and that all this just happened and just began in January but that is not what is laid out the procedural history of this case is laid out in the PowerPoint PowerPoint three that was given to us by staff. Now my question staff to you is looking at the PowerPoint uh again that addresses some of the allegations uh specifically I wanna turn your attention to the uh page six of the PowerPoint. Page six of the PowerPoint shows the flow of Trinity funds in twenty twenty one and twenty twenty two. N now going back to page five we see in twenty twenty that Miss McCormick received a salary of eighty six thousand dollars for her role as CEO of Trinity. Is that correct? Am I reading those documents correct?
That's correct.
And then in twenty twenty one and into twenty twenty two, according to the documents that and according to the PowerPoint, it appears to me that if you add the money that went directly to Miss McCormick and the money that went to the LLC which she exclusively controlled which is SCM consultants,
Mr. Chairman?
yes.
Can I give the uh Congresswoman's counsel a copy of this?
Yeah, uh uh uh I'm sorry if he does not have it, yes. please make sure that he has a copy of the the PowerPoint. And I and I apologize. Mr. Presidio,
Thank you.
I'm looking at looking at page six of the PowerPoint just uh so that you're aware, uh as to the document that the which I'm referring. Uh it appears on page six of the PowerPoint uh that in twenty twenty one and twenty twenty two Miss McCormick received six point seven million dollars in compensation. Is that what I understand? That the previous year she received eighty-six thousand and the following two years she received six point seven million dollars.
That's correct.
And in addition to that there was an additional six hundred thousand that went into a LLC known as the EC firm.
Yes, which she owned fifty percent of.
And Miss McCormick owned half of those funds. And then from those different accounts, from her personal uh money that she received, of the two point three million dollars from the SMC consultant and then from the EC firm, uh much of that money then flowed into her campaign.
Correct.
And then there also seems to be money that came directly from Trinity Healthcare. Now Trinity Healthcare is an Inc., it is incorporated, not an LLC, is that correct?
I- it is an LLC that has elected to receive corporate tax treatment, so for campaign finance purposes it is considered a corporation.
Okay. A and uh according to document six and I think um in the statement of alleged violations uh it appears that two hundred thousand dollars went directly from Trinity Health Care into our campaign?
Nearly, it was about one hundred ninety eight thousand dollars, a little more than that.
And would that would Trinity Health Care have been legally able to give that money directly to the campaign?
No.
Uh and then as it relates to the twenty twenty two uh election Uh that is found on page ten of the PowerPoint. I wanna refer you to page ten of the PowerPoint. Um it appears that the Haitian government deposited twelve and a half million dollars into a Florida-based corporation known as Petro-Gas Haiti. Is that correct?
That's correct.
And then that Florida-based company then they deposited eight hundred and ten thousand dollars into a pact known as progressive people.
Progressive people was not actually a pact, uh it was not registered as one, but yes, Petr Gas Haiti in twenty twenty two transferred eight hundred ten thousand dollars to an organization called progressive people inc.
And that organization, the respondent's husband was responsible or was, it says here, owned by respondent's husband husband and leadership pact chair, is that correct?
That's correct. Those two individuals owned the the organization and were on the bank records. Uh, the husband was the vice president. The other individual was the president.
And so then of that eight hundred and ten thousand dollars that progressive people received from Petro-gas Haiti who received the money from Haiti, it then goes into a, uh, I guess a third account, which is truth and justice.
That's correct.
And truth and justice was run by the respondent's campaign consultant, is that what I understand?
That's correct.
And then money was paid out of the Truth and Justice campaign to pay vendors, so they went to pay for items that benefitted Miss McCormick's campaign. Is that correct?
Yes, that includes invoices explicitly billed to the Congresswoman's campaign that were paid by Truth and Justice.
It's the only questions I have at this time. I yield to the ranking member for uh questions of uh either council.
Um thanks, Mr. Chairman, first to our council. Um the FEC settlement uh agreement, why is intent important? We all have to do these. Uh we signed that we're personally responsible for it. Could you respond to that?
Um so to the extent there has been an assertion that the Congresswoman was not the one filing her FAC reports and was perhaps not aware of every FAC report that was filed. She is still the one responsible for that under the law the rules and precedents of the house. There is also ample evidence that she was aware of at least some of this activity, most notably the millions of dollars that came out of her own bank account, and others that she had access to.
And are you aware of, I am not, um Uh there are mistakes, naturally it was as many people running for Congress, but um of this scale it just seems sort of extraordinary.
No, I'm not aware of something on this scale. I mean, we have precedent where similar schemes were conducted and they were uh ten percent to one percent of the amount of money involved here.
Right, I mean just personal experience I think we've all had this was, if we have compliance, and I do, um the mistakes when somebody, a friend who's their treasurer or something tries to do this, it's not of this scale, even remotely. My experience, you're not aware of. Um, the amounts that uh, this is to committee staff, the amounts that Trinity Health Services received from the Florida Department of Emergency Management, these were federal funds, taxpayer funds granted to the state of Florida to support COVID vaccination registration programs. Correct?
That's correct.
And as noted in paragraph one O six of the SAV, paid seventeen at least three point six million of the funds paid to Trinity under the FD AM contract made their way into the respondents' campaign for at least par- some period of time. Correct?
Yes, that's a generously conservative number.
Could you extrapolate?
Well, as seen on the uh flowchart that we were looking at earlier, we had about eight million dollars going from Trinity into the accounts of the respondent and her family members and the vast majority of that, approximately six point five million dollars if not more, made its way into the campaign.
So yeah.
Some of it did make its way back out through repayments to the uh to the Congresswoman which some of which was then put back into the campaign which is why we went with the conservative number.
So as far as um admission goes, there was a settlement with the FEC, going back to that?
Yeah so the the FEC uh did issue a reason to believe finding at some point uh during the campaign relating to some problems on the face of the campaign documents uh and there was a settlement recognising that uh i the kind of typical campaign finance issues that you guys know better than we do where uh uh you know the cash on hand wasn't adding up or the there were excessive contributions that needed to be reattributed and refunded and there was a settlement entered into 'cause it was a pretty uh wide spread issues But the findings of the ISC go far beyond what the FEC looked at. The FEC wasn't looking at her bank records, which bear little resemblance to her FEC reports.
And in terms of the movement, um, all of these movements from account to the campaign, clearly, they were preceded by a movement that was taxpayer funding.
Yes, very quickly proceeded. There would be a large transfer of funds from Trinity to the respondent and then immediately from respondent to the campaign, if not through one of her siblings or their corporations.
I know this isn't completely in front of us, but just as a cash flow thing as a former small business person. So that money went to services and profit sharing, but then there was a settlement with the Florida depa department to repay that. So I think the average person would go, well, if all of this is factual, where where is the money now? And there was a settlement to repay. Is that an accurate description? And I I'll let you respond to this as well, Mr. President.
Yeah, so uh there was a little more than fourteen million dollar pay fourteen million dollars paid by the state of Florida to Trinity Health Care some of that was paid to uh by Trinity to nurses,
Mm-hmm.
you know, few hundred dollar paychecks to uh administer some vaccines, but more than half of it was paid to the congresswoman and her friends and family and of that the vast majority went into her campaign. Subsequent to that fourteen and a half million dollars being paid out, Better pay. it was discovered that at least five million dollars uh dollars of that was an overpayment on an invoice for fifty thousand dollars where the decimal point was moved. Uh and uh I understand there is has been a settlement between Trinity and the Florida Division of Emerge Emergency Management, but that the Congresswoman is not a party to that settlement. Uh I don't I'm not aware of any uh process in place for her to pay back the money that she received from Trinity. Uh To yeah.
That's that's enough. I'll give you a if the chairman will indulge me. Counsel, you wanna respond to my line of questioning?
Yes. I I I think let let let's just sort of back up a little bit and begin with the understanding that the state of Florida was sending Trinity Healthcare funds.
Mm-hmm.
And I think that over the time period that we're discussing, they sent approximately fourteen million dollars. At some point, the State of Florida said that they had made a mistake and had overpaid five million dollars. Let's be clear, there's no suggestion that the Congresswoman did anything inappropriate in order to try to steal the State of Florida's money. They sent it to her To Trinity rather. And then Trinity did what businesses do when they get a large influx of money, and that's they often pay it out in profit to their owners. And she had a profit sharing agreement where she receives a certain percentage of the profit. After the monies were all paid out, Trinity entered into an agreement with the state of Florida to pay back the overpayment of the five million. Trinity is on the hook for that money, because Trinity is the entity that received the money, and Trinity is the legal entity that dispersed it. The Congresswoman is not on the hook for that money, Trinity is. Now, Trinity may decide to go to the Congresswoman and try to seek reimbursement for whatever money she received under the profit sharing agreement. But legally speaking, the the overages that were paid to Trinity, that's a contract between Trinity and the state of Florida.
Okay.
Now, the the the this this this flow of quote unquote Trinity funds on this flow sheet from page six doesn't indicate how the money ends up in the campaign Because it's suggesting that the money is flowing directly through Trinity through some kind of false shell corporation. And that is just simply factually incorrect. The monies that were paid from Trinity were paid much of it was paid to her consulting corporation for example. And the consulting corporation took on a much broader scope of work than Trinity had under the contract under her agreement with Trinity. So it was work that's not covered by her salary, it was outside work. And this, you gotta remember, this is happening during COVID. And and the Congresswoman is driving around the state of Florida, trying to get unrepresented communities vaccinated from the COVID uh virus. That's what she's doing. And that work, that work is what the consulting work was doing, and that was what Trinity was paying. I I I understand, Mister Chairman, that this committee has a right to decide issues on summary judgment and I also understand the frustration the committee has with the way the case has has e evolved. And I acknowledge that. My argument isn't that the committee is doing
Absolutely, with all due respect you've already answered those questions.
Okay.
I wanted you to have time to respond to my questions. and we've gone over. Um, just follow up with counsel.
Thank you.
Do we have a, do we have a valid profit sharing agreement?
I I don't know which document counsel is referring to, uh if it's something that has not yet been provided to the committee. I do know I'm I am not familiar with any document that appears to even resemble a profit sharing agreement with Trinity Healthcare Services. Uh, I do know that in January, twenty twenty four, your colleagues on the investigative subcommittee, the very first question they asked Congresswoman was please provide any profit sharing agreements that you have with Trinity that show that your legal right to these funds and that we repeatedly followed up with her various counsel to try to obtain those documents, and I'm not aware of any such document.
Okay. Thank you.
We filed it yesterday.
Thank you, Mr. Chairman.
With the committee.
I go back.
Chairman Neal's back, uh and just for the record uh I'm not gonna hold members to the five minutes um, wanna make sure that uh all members have the opportunity to have their questions answered. Um, so, uh, would ask members, um, to be respectful of time, but, uh, also want to make sure that we are not cutting members off uh as they seek to have their questions asked. So, at this time the chair recognizes Miss Hinson.
Thank you, Mr. Chairman. Um, I I would ask our uh committee counsel to kind of walk us through the the dates of the establishments of these companies that are listed on the flowchart on page six. Um can you explain um kind of the the dates that those were established and how how that money flowed through those since uh the defendant's counsel just brought that up, please.
Yes, thank you, Congresswoman. So the agreement with Florida Division of Emergency Management was dated March fourth, twenty twenty one. On March twelfth, twenty twenty one, respondent registered SEM consulting group LLC with the state of Florida. On March eleventh, Her brother registered EC firm LLC with the state of Florida. And uh on March eleventh as well, her sister registered MC nursing journey consulting firm LLC with the state of Florida.
And these are all their initials tied to these um these companies.
Yes.
And then those dollars then flowed uh as it lays out on this into the respondents' campaign through various means, correct?
Correct.
Okay. Um I'd I'd ask a question specifically about um count twenty-six. the CPF related count. Can you kinda connect the dots on the statement in um that says respondent instructed her staff to be proactive only about a CPF request from individual three and was more invested personally in this request than other requests. Can you kind of lay out um what you what you're inferring there and how that um that process unfolded for the CPF request?
Uh yes, so individual three is an individual who had a campaign relationship with the Congresswoman and was a personal friend of hers and uh
Was this person a a donor to the campaign or okay.
Yes. Yes. Uh in addition to a a vendor for the campaign through his for-profit company, but he also had a foundation that had an earmark request for a telehealth tablet uh program. Unlike other programs that were seeking earmarks from the office uh the legislative staffer overseeing that process was explicitly directed to reach out to this individual to make sure he was aware of the process, the appropriations process, that issue. Uh and according to uh that staffer it was they she was told that it was a priority for the congresswoman to make sure that this individual understands the process and that they do submit a request uh no other recipients of uh community project funding requests were the subject of such proactive outreach.
So as a result of that outreach and then the project itself was not eligible, is what this uh document says?
Uh no there there's two separate charges with respect to the community project funding request, so that individual did indeed receive a a a appropriation, uh and it was eligible and it received two point something million dollars. Another individual who also received special favors in that He provided a list of other companies, not not entities he was directly affiliated with, but projects that he wanted the co- the Congresswoman to support for community project funding. Uh his requests were prioritized and when the staffer running this process noted that, you know, one of these isn't even eligible, it's not even in the district, uh the Congresswoman kept it on the list despite that, and told that staffer to apologize to the friend who had
So took up a slot of the fifteen knowing it would not be eligible, correct? Yes. Um, Mister Barzee, uh I know you you just said that you submitted the evidence of that uh profit sharing agreement yesterday. Uh what date was that profit sharing agreement entered into?
Do we know what date it was entered?
Is that the other thing that we
That's the date that it was set.
This is the week. This is the week.
Mm.
I don't know the date, but this is the
Yeah, and I'm referring to the document that you were just discussing.
I mean it it Yeah, it it it what I have on it on on as far as the date stamp is concerned, is it goes back to March twenty ninth, twenty twenty one, but I believe that's a date that it was sent. from one person to another as far as the date that it was entered into the agreement was entered into
so it's also that's not the date of the meeting we decided at this children's day is going to be the year
right
so since two thousand thirty
of what year
mister chairman i i don't believe we have that document he keeps referring to
that's really long
alright so
is this is this the document you're referring to this
a chart with the hours of service and
It's a it's a document the document I'm referring to right now is titled uh a projected financial report and it was filed along with the uh summary judgment response. And it indicates that there was a profit sharing agreement in place as far back as February of twenty twenty one. But I don't have the date that it was actually entered into.
Yes.
I can get the committee that date, and I can call a witness to testify about the profit sharing agreement and how it included i work that the Congresswoman was doing separate from what she was contracted to do for Trinity.
I don't.
Return agreement. Does uh committee council have any response to that? Y you reviewed this document.
I I'm not familiar with this document. I don't believe we have seen it. We're not aware of a document that meets that description. The inability to identify the date of it makes me question to what extent it is an
Okay.
agreement it sounds like there aren't necessarily dated signatures on it. Uh to the extent what's being referred to is the projections document with one hundred ten percent of the profits uh divvied up between the respondent and her siblings. I don't understand why that would be considered an agreement with Trinity but regardless immaterial to the question of whether uh the funds that Responda and her siblings received from Trinity were those that they had legal title to or whether she intended to funnel that money into her campaign.
'Kay. Thank you. That's all my questions, Mr. Chairman.
General Lady yields back. Uh the uh chair recognizes Mr. Ivey for his questioning.
Thank you, Mr. Chairman. Um The the document where you were just talking about, is it this spreadsheet thing or something different? Cuz it doesn't the projections document that council for staff mentioned doesn't have the heading that you you referenced.
Uh, it it must be a different document, sir.
Okay, well
The the document in front of me is titled projected financial report, and it has the corporate administrators, the different sites, and it has a under the column for bonus amount it shows what the profit sharing agreements were and i could bring
oh ok
a witness to the
i don't want a witness i want your representation just to make
alright well my representation is that she was entitled to a certain percentage of profits and trinity paid those profits out when it received monies in uh and and that there was nothing nefarious or improper about that But if you look at the staff's complaint, you know, i I mean everything related to count one basically from th from paragraph three O six, three O seven, three O eight is all suggesting that that whatever came from Trinity is is tainted and it came directly from Trinity.
Well, let me
And neither one of those are factually accurate.
Let me give you a chance to refute those point by point, but With respect to the flow of Trinity funds flow chart twenty twenty one to twenty twenty two page six.
Okay, yeah.
Okay. So and I guess this is aimed at capturing what you were just talking about, staff counsel. Um which counts is this supposed to um illustrate?
This relates to several of the accounts, uh to the extent that the issue is the funds that went through respondent or SCM consulting. The notion that they're not her personal funds because she did not not have legal title goes more towards count two and only a small portion of count one because as indicated by the flow of funds directly from Trinity from EC firm which she only had fifty percent title to from her brother and from her sister uh those were excessive contributions that could not be made that were funneled through those individuals into the campaign. Council is mistaken, it's not all.
Okay, does it cover other counts?
Uh, okay.
Other than count one and two?
Yes, it also covers um
What else does it cover?
uh count five, six, and seven.
And those are what?
Five, six, and seven. So count five charges her with acceptance of improper campaign contributions from her brother Edwin Shervelis.
Uh, all right, let me let me let me go to counsel for the Congresswoman. What are the what do you dispute on on those points?
How is that an illegal contribution? If her if her brother is paid by Trinity and does work for Trinity and the money is his because Trinity pays him for it, why can't he contribute to his sister's campaign?
Well, a a couple points on on that, I suppose. Um, the amounts and and staff counts, I guess these are pink, the amounts of money that flowed into the respondents' campaign from SCM consulting, respondent EC firm, respondents brother, respondents sister, and MC nursing. are three point four million, three hundred and fifty thousand, two point two million, three hundred and ninety thousand, fifty eight hundred, I guess is the one you're talking about, twenty eight hundred and fifty eight hundred. So, with respect to the larger amounts, that would be over what an individual contribution could be, is there and that would be the the let's take the three point four million or the three hundred and fifty thousand. Um, what are What what's what is your position with respect to why those are appropriate contributions? Are you disputing whether these these this is factually happening or
No, no, no. She the Congresswoman is legally permitted to contribute to her own campaign, correct? She can use her own money.
Yeah. Right, and did she do that in the form of a loan or a contribution?
Well I I I'm I'm not entirely certain, that's one of the things that we could we could figure out if I could bring a witness in here to testify as to who was filling out the financial affidavits and those forms. I don't know that they did it correctly, but the intention of the congresswoman was to loan the campaign monies, and then at some point the campaign apparently returned those loans back to the congresswoman.
Okay, so
But if it's her money, she can loan her own campaign the money.
Okay, so the respondent flow is two point two million. Right? Are you disputing that?
From from from altogether you're saying?
No. So you see the pink boxes there, and there's the flow?
Oh yes, I see it, I see it, yes,
Okay.
got it.
So that would be the amount that she contributed her loan to her campaign.
Correct.
Alright, now with respect to the three point four million. If you go over and that goes to the box joint account, respondent and brother. What's your position on that one, from a fact sheet's end?
That's that's her m- the money, I believe that they owned that account sort of joint and severably, that they both had access to it, but I believe that that's her money as well. Yeah, it w- it's her it's uh uh thank you, uh factually speaking it's actually her account, he was the signature on it, but all of the money in the account was hers.
So you're
And I would bring him in to testify to that.
No, so the fact that it's a joint account in your your view is makes it permissible under the campaign finance law.
The money belongs to her.
Well, if it's a, if it's a, is it a joint account or not?
He was a signature on it. I'm not sure what the bank itself called it.
It was Okay.
I I'm I I'm not I'm not uh trying to be clever.
No, no, okay, fine.
I honestly don't know what the bank called it.
That's fine, that's fine. What about SCM consulting and the three hundred and fifty thousand?
That's that's her company, that's her consulting company, which I I don't believe they the consulting company put that money into the campaign directly. I believe the consulting company gave the oh it's a sole proprietorship, so it was able to do that, yes.
All right.
And that's hers.
Well let me let me pause there for a moment and go to staff. So just to go through those three, the three point four million that came, you've got here listed as a joint account, respondent and brother. Is it a joint account under your understanding?
Ye yes, that's my understanding, based on on the bank records.
All right, and would it be permissible for the joint account to make that contribution to the campaign?
Uh, it would depend no, because of the way that the campaign finance rules operate, it would only be about half of the amount in the account could be donated on to her, but I do wanna make clear the subcommittee did not charge that as an improper contribution from her brother it focused on the more clear examples.
Okay. Then what about the three hundred and fifty thousand from SCM consulting?
SCM consulting is a single member LLC. It's treated as if it's a loan from the candidate. That is permissible if she has legal title.
So, that's permissible. All right, what about the two point two million from her? That's permissible, right?
Permissible if she has legal title.
All right, so then we get to the EC firm, three hundred and ninety thousand.
Yes, three hundred eighty thousand of that would have had to been considered half a donation from her brother who had fifty percent ownership of it making it a excessive contribution. Ten thousand of it was actually.
Yeah.
Yeah, and just before you move on, it's an excessive contribution because the maximum contribution would be what amount?
Was twenty nine hundred dollars uh election site election.
Twenty three. I don't know.
Twenty nine hundred dollars. Council,
I don't know. I can't say it here.
with respect to the EC firm contribution of three hundred and ninety thousand, you just heard from council that the max is twenty nine hundred.
Twenty three.
What's your what's the material facts in dispute on that position?
I mean, it's not that hard to have the consent of a direct member of the EC firm to
my understanding is is money did not flow directly from ec firm into the campaign, so i'm not sure that i mean i may have an objection to this fact here or at least to the flow sheet but but my understanding factually is that money did not flow
ok
the way it is indicated here directly from ec firm into the respondents campaign
counsel for the committee do you have records that show that
hi
the money went directly from ec firm to respondents campaign
Indeed, we have both sides of the transaction. We have EC firm's bank records and the campaign's bank records. Both of which show the direct transfer of funds.
Yeah, so the three hundred and ninety thousand amount, you've got bank records that show that that came out of the EC firm and that it went that it went directly to the
Oh, got it.
Yes, over the course of multiple payments.
the campaign.
Not one giant three ninety, but over a few.
Okay. Okay, I'm sorry. Counsel for Congresswoman?
Uh, and and and that was the Congresswoman's money. she had a fifty percent interest in ec firm and and there was a separation agreement it's not just hers i mean her brother's, it's hers as well
committee council since there's such an agreement in place
i so as a a matter of law the portion donated while she had fifty percent ownership is she only had legal title to fifty percent of that under campaign finance clause but an additional ten thousand dollars was actually donated after she entered into the separation agreement
Right, well let's stick with what you got here on the the exhibit. So the three hundred
Uh, uh, I'm sorry, those were repayments, just to clarify the the money going back.
Okay, so the three So the three hundred and ninety thousand dollars, you're saying that more than that's more than half of what was in the account out of the EC firm? You're s- she had a fifty percent ownership of the amount of money that was in the the account because she had fifty percent ownership of the EC firm
correct
is that right alright so was the three hundred and ninety thousand more than fifty percent of what was in the EC firm account at the time the
yes
yes how how much more
I don't have that in front of me
ok counsel do you
um
I
I we
sorry go ahead
EC firm apparently received at least six hundred thousand from Trinity over over the the length of the um firm's existence, it had much more than that,
Yes.
correct?
Yeah.
It had more than that.
Yeah, but it's got the six hundred over the EC firm box. And Chairman, I you cut me off when I've gone too long, but I'm just trying to walk through the exhibit to make sure I understand. So, if I'm I'm understanding what how the document's designed, the six hundred thousand shows that that amount was put into the EC firm from Trinity Healthcare Services.
That's correct.
I don't think you gotta talk about Trinity. You can talk about the funding request if you want.
Please don't. Please don't. Please don't. Please don't.
I think this is
Talk talk to your counsel and let him him make the representation.
I think this is a good example. You can use
No, it's good of you to do that.
Yeah, you can use this. You you can find the results on the free time. And
Counsel, put your hand over the microphone. Okay.
But um, I'm supposed to look at this and do a time-lapse and what is so important about this and this and this. It's not true. I have to look at something and look at this. I don't want to look too at anything.
As I said earlier, the Congresswoman was entitled to fifty percent of the EC firm, and they were paying out over time, in installments, those payments.
Can I can I go the rest of the way across the chart? Uh, oh yeah. Okay. Just to make sure I understand what what this is. Let's go to respondent's brother, that box. That's two hundred thousand come in, fifty eight hundred goes out. I guess the position would be that that is the twenty nine hundred and twenty nine hundred that that's permissible under the campaign finance law. So counsel for the committee, what's the position?
That is not the basis for the ICS charge, the five thousand eight hundred dollar. The basis is the arrow going
It's not.
up for many in-kind contributions made through various shell companies.
All right. Well, so far now the only box that's relevant to the charges is the three hundred and ninety thousand. Is that right?
Uh, to which charges? I mean, the the the these boxes?
To the SAV charges.
Well, no, to the extent that some of the charges relate to her the loans that did come from her personally there are charges relating to the fact that they are not considered to be one she has personal title to, although I don't think any charge relies wholly on it.
Okay.
Yeah.
Let me go to responded sister. That's twenty eight hundred that comes out?
Yeah, twenty eight hundred directly, yes.
That that goes direct? And that's a permissible uh campaign contribution?
Yep.
All right. And then Nadage LeBlanc and her LLC. Is that fifty eight hundred?
Yes.
All right. Are you saying that's permissible or impermissible?
We're saying that was a conduit contribution as part of a straw donor scheme, whereby the sister provided the funds to the Dej LeBlanc to contribute to the campaign.
And that is based on what, a a bank record that you got?
Bank records and text messages. There's a text message where the Congresswoman explains that the max is two checks of twenty nine hundred, and that is why her sister gave Nadege The money.
Is that one of the exhibits and the the motion that you filed?
It is. It's also on the PowerPoint.
Okay. Um all right. I I'm gonna end on this page. I'll come back later. But so on this page, uh if I'm seeing this correctly the fifty eight hundred from Nidosh is counsel's alleging that that is which count that's violated there?
Uh, count seven. And count seven.
And I'm gonna come to the other one too, so you can look that one up. That's the three hundred ninety thousand, I guess, which count does that go to?
The three hundred ninety tha which one is that? Apologize.
That is from EC firm. Here's that's the one where you're saying more it was more than half of the amount that the firm had. Which count does that go to?
Uh that goes towards count five, but it's not the only basis for that count.
Count five, okay. So, and the last question. So for the other blocks of money going to respond in this campaign, those are not alleging, correct me if I'm wrong, you're not saying that those stand for allegations of of particular counts in the SAV?
I think all of them relate to some count in the SAV. Uh, I think that the the the funds flowing from SCM
Well, you gotta tell me.
consulting and respondent relate to the allegations that her uh, the contributions she reported as personal loans were not actually personal loans but were conduit funds from Trinity Healthcare Services.
Right,
The
now, but before you before you move off of that,
three
cuz that's I didn't know that was there. So, what's the basis of that? Allegation.
In part, the her use of funds that she did not demonstrate legal title to, but also these other funds that were moving through other individuals from Trinity, from that uh initial eight million that get spread across into the campaign.
I'm not sure I follow what you're saying there. So the you got the three hundred and fifty thousand from SEM consulting, right?
Sorry, three hundred fifty thousand to, yes.
That's that's you're on the counting to the left.
Yes, so the argument is that is one of the facts that contributes to the account that there were conduit firms from Trinity Healthcare Services and that she improperly reported those as personal loans and
I didn't heard it.
Right, but but you were saying earlier, I thought though, that
Okay.
since it's a uh that she owned the consulting firm, that it was permissible for her to loan or contribute that amount.
Yeah,
Under FEC rules.
if if there was four point four million dollars in her consulting firm that she had legal title to she could donate that to her campaign but the argument is that she did not have legal title to it because there is no real profing shared agreement that meets the legal requirements under campaign finance clause for what is considered personal funds.
Okay, so the three hundred and fifty thousand and I'll st I promise I'll stop after this. The three hundred and fifty thousand that came out from SCM consulting to respond its campaign Was that money actually in the SEM account?
Yes.
Alright. So Counsel, your position on the on the three hundred and fifty thousand then, with respect to a material dispute issue, uh what what's your
It's it's the mater the the the the key dispute here is whether or not As i whether or not she had title to this money, whether or not the congresswoman had earned this money appropriately, and that she had reason to believe that that money was flowing to her appropriately from Trinity. This was a family business. The the her brother, her sister, they're all involved in the business. The state of Florida makes a mistake and sends them too much money. They had they had they were receiving fourteen million.
I'm gonna
Feedback.
I'm gonna ask you to keep it right to SCM consulting if you can.
Oh but
I we got the fourteen million.
Oh okay well with the all of the money it every single penny from SC SCM consulting
Yeah.
Okay.
is owned by the Congresswoman and is appropriately there. There's it's not tainted money. That's that's the problem that I'm having with the committee's argument is it seems to presuppose that all of this money is somehow tainted. And it's not. There's been no evidence that any of this money is tainted. This money was was was all appropriately transferred to SCM consulting. It was all appropriately transferred to her brother and sister.
All right.
There's nothing wrong with any of that.
Let Let me let me yield back. I I I thank the the chair for your indulgence. Uh, and I'll come back. I do wanna if we get another round, I'd like to ask about The twenty twenty two reelection funds,
D I
kind of same line of questioning.
Is there one thing that I can add, please?
Yes, sir. If if the chair is agreeable.
Okay. Yeah, n n not not only is this a question of them receiving appropriate profit sharing from Trinity, but that money was earned, that work was done. The congresswoman was driving around the state getting these communities vaccinated. It wasn't as though she's just sitting back receiving money flowing in. She's out there working.
Okay.
And it was completely appropriate and it was earned, every penny of it.
Okay. Thank you. Thank you, Mister Chair.
Uh, thank you, gentlemen, yield back, uh, before, uh, I refer to Mister Moran. Uh, I'd like to ask if the staff director, uh, again, to clear up the record, uh, would hand to, uh, the respondents' council um an exhibit that was attached to your motion in opposition to summary judgment which I believe is what we have referred to in some of the arguments as a profit sharing agreement and and I wanna make sure that when we talk about the profit sharing agreement that that's the document that you're referring to or if there is another document that you're referring to um please make sure that uh we uh can uh This talking about something else. uh make sure we're all we're we're we're viewing the same document.
Okay, I think this is a different document.
I don't think we are, thank you. I'm glad you caught that.
Yeah, this is a different document.
Yeah.
So uh y-
Yes.
Do do do you have a copy of that document, Mister Barzi, the document that you are referring to as a profit.
Yes sir.
The document that we handed you was a document that was attached to the motion for summary judgment. Do you have a document that's referred to as a profit sharing document?
Yes, sir, and I'm passing it to uh staff counsel now.
Uh uh and are are you agreeable to uh us distributing to members uh of this committee?
Yes, sir.
Yes, all right. Th thank you very much, I just wanted to clear
Well, Mister Chairman, if you indulge, so can he identify what this is?
The the document that was handed to you which is uh at the top,
There's no title, no date.
labeled projections, uh, Mister Barger, can can you please identify the document that uh the staff director
I believe that that document was
These are the same.
I'm sorry.
The same document, you see the week? The week. This is the same document, it looks like it's much smaller.
Congresswoman, I'm not entirely sure right now. It's it's it's not the document that I was familiar with.
Oh, I realize it's true, but this one has no title, doesn't tell us what it
Yeah. I I don't I don't.
There's no date, we don't know who prepared it, we
I I I agree with you and I'm not sure and I can't even read it, I'm gonna need a magnifying glass to get to it. What was the sign?
Well we we we blew it up.
Oh the new one.
Yeah, I think they handed you that, didn't they?
Uh I hand it in the original document, but if you wanna hand them the the blown up copy uh so that he may can
That was attached to your motion for summary judgment.
I I understand, I
We couldn't read it so some staff um blew it up for us.
Understood. Thank you.
Where's the other document? Oh, it's there.
Just a minute, it's there.
I it says the same thing as the same document that that we provided just now to staff, which is that there is a percentage of profits on the document that was attached as part of the motion. And that's what I'm referring to as the profit sharing agreement.
Well, I'll ask more questions about that when it's my turn now.
Yes, ma'am.
Understood.
Go back to to the judge.
Thank you, uh, and I think they're making copies of the document that you provided. Once that document uh is returned we will distribute it to members uh of the uh Judiciary Subcommittee and also make sure that uh Committee Counsel receives a copy of that document as well uh so Mister Moran you are recognized for your questioning.
Thank you, Mister Chairman, I'm gonna start where you just left off, cuz I had this as my number one question. You had referred to uh a profit sharing agreement early on. Now we know what you're really talking about is a chart. Is that correct?
Correct. Well, I mean, there were both.
Right. It's an unsigned chart.
Correct.
All right. Uh I I will have to say I did a lot of business transaction law uh for a number of years before I came to Congress. I drafted a whole lot of profit sharing agreements. Uh never saw one that was just a chart. that was unsigned. Uh all that you've been able to produce at this point is that unsigned chart that you contend is a profit sharing agreement. And you've made a lot of argument about uh the fact that um your client was entitled to the funds that were flowing through Trinity Healthcare Services, at least adding up to six point seven million to her directly and to SCM consulting which she owned wholly. Am I correct about that?
I'm not sure of the six million dollar figure that you're referring to.
All right. Well that's uh that's what the evidence shows that uh that counsel has produced,
But
that's what's on the chart, that's what what we've been referring to the whole time.
Right.
But never nevertheless, whatever the number is, you've said, and we know it's in the millions, you've said she was legally entitled to that money and that she could loan that to her campaign if she wanted to.
Correct.
So the legal entitlement is uh you've made a really big deal of it today, but you've based that on a chart that's unsigned that you say is a profit sharing agreement, correct?
Correct. Mm-hmm.
All right. So uh that's that's very interesting to me and I think should be instructive because uh considering that we've been undertaking this investigation for more than two years, I would think uh that if if it was my client, uh day one I would say, you know, a whole lot of the magnitude of the allegations here is wrapped up in whether or not you had entitlement to at least six point seven million dollars worth of money flowing from trendy health care services that you say quote are appropriate profit sharing and which you also argue is she's entitled to for driving around the state talking to people about vaccines. I wish I'd had a job like that.
It was more than that, sir. Much much more than that.
So
And and and and frankly that's offensive to suggest that all she was doing was driving around talking to people.
No actually those were that was exactly what you suggested.
Well, she she it was a lot more than that.
And and you also suggested that It's I think it's frankly offensive that you would suggest that an unsigned chart actually qualifies as a profit sharing agreement. Now let me let me move on and talk to you more about that because if if in fact your client was entitled to that under a profit sharing agreement I would think, day one I would say, hey, give me the signed profit sharing agreement, let me turn it over. And your client in two years has not done that, even though she was asked by council to do that at the very beginning. Now I'm gonna come to council here in a second.
May I respond to that?
Sure, go right ahead.
Please.
Please.
Congressman.
Okay, yeah.
This is a family business. Not every family business in the United States hires lawyers and puts everything in writing and creates corporate documents. Sometimes family businesses are decided around the kitchen table. And there's an agreement and there's an understanding.
If you're getting,
I'm not, I'm not saying that this is a profit.
if you're getting seven, if you're getting near seven million dollars, actually you're getting fourteen million dollars from the state of of Florida, and you're then taking at least six point seven million of that for yourself, I would think that you would wanna document that. I wanna come to uh counsel for a second and ask you about uh the uh the the statement you made at the very beginning because uh you talked about um opportunity for the respondent to clarify uh the to provide a list of witnesses and exhibits that might exonerate her, provide facts that would contest the facts that you were looking at. Talk a little bit about the time line and the opportunities that respondent has had over the past couple of years uh to provide a list of witnesses and exhibits uh that she could uh then rely on to provide some kind of contest to the facts today.
Uh so Congresswoman's opportunities have been myriad. Most recently in connection with this hearing there was a pre-hearing schedule set by a certain deadline she could provide a list of witnesses that she wanted to call here today she did not submit a list of witnesses she could have provided any information she could have sought subpoenas and she did not do that by the deadline set and the pre-hearing schedule but that's just this most recent adjudicatory phase. She has also been provided with every opportunity throughout the two year investigation because the investigation is not a prosecution it's an effort by her colleagues to understand what happened and I think something that has not come up yet but is notable is this investigation came from a referral from the office of congressional conduct, and when the office of congressional conduct makes a referral they write a report with their findings and we give a copy to the respondent and we say please respond to this, tell us if they got anything wrong, anything you wanna add, uh. Council has made some reference to her prior counsel's denying the allegation, but that's not an accurate representation of the responses that our prior counsel submitted on her behalf. It really side-stepped a lot of the allegations that were put forth by the Office of Congressional Conduct. And then subsequently when we followed up through requests for information in the normal process seeking information about what was in that referral and other allegations that came to light her responses were limited we did not get profit sharing agreements we did not get direct responses. And at all times she was free and often encouraged through her council to provide an explanation for what was going on here. We never got one.
Thank you, counsel, for that clarification, cuz I I think that's what's uh most telling to me is, if we were really de- dealing with a contest of fact, those facts would have been presented in documentary form by the respondent at some point over the past two years or at least provided by her counsel over the past two years. and they have not been. Um I I wanna also re-emphasize something uh that you mentioned earlier. I wanna be sure that uh this is clear for the record. Um I if a member uh delegates authority for filing her disclosures, managing finances, can she delegate legal responsibility for compliance?
So the answer is a little more complicated depending on whether you're asking for legal responsibility from the perspective of the house. and legal responsibility from the perspective of the Federal Election Commission. The Federal Collection Commission does have the treasurer as the person with liability for the campaign's conduct, and the extent to which the candidate can be held responsible for that is maybe a little more complicated and also immaterial, because as a member of Congress, her obligations are greater, and the committee's long-standing position is that she is on the hook from an ethics perspective for the conduct of her campaign.
And I think I heard you say earlier uh or Sidney when she was giving her presentation that was it sixty or sixteen times she filed a f- a financial disclosure that was incorrect?
Sixty, uh maybe sixty-one since her most recent filing may have occurred since then.
Six zero times. All right, thank you. I I yield back.
Uh gentlemen, yields back before um I'll refer to Miss Garcia, uh wanna make sure again just getting back to the document Um there has been a document distributed, I have a copy here, and again just wanna make sure this is the document that we've been referring to as a profit sharing agreement. The heading of that document says projected financial report, XLSX, and at the very top it says Gmail. Is that the document that you're referring to?
Yes, but I I don't mean to say that that is a is a formal legal profit sharing agreement. What I'm trying to say is that that is evidence of a profit sharing agreement that existed with the family members around Trinity Healthcare, just just to clarify.
Yes sir, and uh committee council has been provide a copy of this document, is is that correct?
Yes, we have now.
All right, uh I would like just for the record to be clear that we will introduce a copy of this into the record. Uh I've written on mine so I'd like to introduce a clean copy uh We have one here, so we will make sure to make this an exhibit to the record, uh so if there are any questions uh the record is clear as to the document that we have been referring to. Do you have any objection?
No, none whatsoever.
Uh any objection from committee council?
No.
Uh the document will be entered uh without objection.
Mister Chairman, I I I would like to respond to Mister Moran's uh questions that were directed at at staff that I didn't have an opportunity to respond to. If I may.
Go ahead.
And well, uh it's it's about all the time she was invited to come in and cooperate and give them documents and and, we're making the point that, staff is making the point that this is an an adversarial situation. And of course a member should just turn over all the documents immediately if it's if it's requested. But y you need to understand from the point of view of her prior councils And her prior counsels are receiving requests for documents, and receiving requests for interviews, at the same time that they're aware of the Department of Justice doing a criminal investigation. And so her prior counsels did what prior counsels will do in that type of a situation, and they will advise the person that they have to be careful, that they have a Fifth Amendment right to protect. And so I I I I I don't want it to sound like she was ignoring this committee, because that's not what was happening. There was no disrespect meant to this committee. What she was doing was following the advice of counsel, excuse me, following the advice of counsel that was based on those attorneys' beliefs that whatever material she was turning over, whatever she was going to say to the committee, could turn around and be used against her. There is no secret here that the Department of Justice has a very close relationship, working relationship, with committee staff. For example, when the Department of Justice decided that they didn't want committee staff interviewing witnesses because it might interfere with their strategies, they didn't put that in writing, they didn't send that to the committee. Someone from the DOJ picked up the phone and called someone on committee staff. So you can understand why her prior attorneys would be a little reticent to turning over files and documents knowing that they're all going directly to the DOJ, who is in the process of investigating her.
I can't.
Why would her prior counsels allow her to just give up her fifth amendment right automatically? There's no disrespect to the committee, sir. She's cooperated, she's had attorneys, I understand it hasn't gone quickly. I I get that. But with all due respect, this is what she was advised to do.
Um and r well one uh uh Mister Moran wants to follow up with that. I I would like to add that documents that we obtain as part of our ethics investigation, those documents are not shared with the Department of Justice. That has been standard procedure of this committee and we have actually fought the Department of Justice when they have come in and tried to documents that we obtained as part of uh an investigation uh into an individual member so I understand that that might have been what her attorney believed would have been uh the free flow of information uh but for the record uh we have repeatedly denied requests from the Department of Justice and we have false subpoenas from the Department of Justice when they have attempt to obtain information from this committee previously.
I I appreciate that,
Uh
but I hope the committee appreciates the concern her prior attorney would have, knowing that the relationship between the DOJ and staff is so close, that all they have to do is pick up the phone and say stop interviewing witnesses, and the committee staff immediately would agree.
Well I
Now now I understand that's not exactly what happened in this case, because they had already done the interviews, but the point is you can see why her prior counsels were concerned about turning over documents. It's an understandable concern, especially when you have a client who's facing a federal indictment.
Miss Moran, did you have any follow-up question to that?
Just follow-up comment, uh your argument might carry more weight if this was an incriminating document. But it is in your words an exonerating document, in fact a central exonerating document. It is the kind of document that you would reach for first in about two minutes, and you would produce intentionally to protect your client. So you've made a uh an argument to the extent that prior counsel might believe it was incriminating, but you have told this committee it is an exonerating document. So your argument does not hold way with me.
Oh, I believe it is an exonerating document, and I appreciate the the member for recognizing it as such. It does exonerate her. Prior counsel was concerned about a violation of her fifth amendment rights. And that's why they don't turn anything over, because they're afraid and they're scared. And I understand that, and I'm asking the committee to understand it because that's what happens in the real world. When when you have a client, and this is why we were asking for a stay, when you have a client who is facing criminal prosecution and criminal consequences, you don't turn over documents. You invoke their fifth amendment right, and you, yeah and you wait for a trial,
But you do turn over in a document if it's exonerating,
and that's what a
and you don't we haven't even seen a document. You can't even show us a document at your table, even if you don't wanna give us to us d to us today.
I I have given it to you.
All you can show us is a chart.
No, well that's that that's the document. The document is a chart, and it's a chart that shows
An an unsigned, undated, uh chart.
So, this is a family business who make agreements around a kitchen table and there's an agreement that mom's gonna get ten percent, and brother's gonna get twenty percent, and you're suggesting somehow that that's nefarious. That's how family businesses work. They don't always run downtown to get a lawyer to put everything and memorialize everything. I showed you this this this document in order to support the idea that there was a profit sharing agreement.
Jim and Yael. Jim and Yael, Jim and Yael, thank you. the chair now recognizes Miss Garcia.
Thank you and um not to belabor the point, but I was wanting to clarify the document that you did give us uh because I too am concerned that it's undated, unsigned, and we have no idea when this chart was prepared.
Uh-huh.
Um so do you do you happen to know um counsel when the family got together and formed this agreement?
I do not. I I understand that that's an important question. I can tell you that that agreement was in existence as early as February of twenty twenty one.
February of twenty twenty one.
Yes.
Cuz in February of twenty twenty one, uh, the congresswoman signed a letter uh, February twenty fourth of twenty twenty one, under the a letterhead of essential community health. Was that the family business at that time, or or who who is essential community health versus Trinity Healthcare Services?
Uh that's the that's a different corporation, that's a non-profit corporation that you're referring to, I believe.
Why don't I'm asking you, sir. She's
I'm sorry.
This reports to be the beginning of the the request for participation in the state's COVID-nineteen vaccination registration as soon as possible and then she outlines project overview.
No, it's getting hard. We just let it, let it not, it's a happy argument. We just said that.
Do you have the certificates?
Yeah, so.
When we tried that, they said that you need a licensing, a licensing activity, so we need a person who's an activity to have a licensing library.
I do, I do. So, Congresswoman, can you please point me into what you're asking again?
I just wanna kinda chronologically you're t you're telling us that this unsigned, undated,
Right.
we don't know who prepared it, when it was printed, is is evidence of a profit sharing agreement
Correct.
for her consulting firm, right?
Where's this actually? That's my question.
I think it's for Trinity. Uh, business control design as your consulting firm.
Trinity.
Okay, because the document I have is dated February twenty fourth, twenty twenty one from essential community health. It says Sheila Cornelius McCormick, JD, co-founder. That's the letterhead.
Mm.
She signed it as co-founder and it's it's suggesting that essential community health is ready to participate in the state's COVID-nineteen
Oh, I understand now. Yes. Yeah. I understand. No, uh uh uh or originally the the ECH or whatever it was, That's the action. was applying for these contracts to do this work for the state. They weren't able to do it because they didn't have all of the correct licenses, But they entered into a a an agreement that they were going to do it. When they discovered that there was a licensing issue, the contract got transferred over to Trinity, is my understanding.
Alright, and then Trinity, she signs it as CEO Trinity Healthcare Services LLC.
Correct. Correct.
So is she the CEO of Trinity Healthcare or is she the consulting group?
She was the CEO of Trinity Healthcare Services. She also had a consulting group for for tasks that were outside of what her designated job duties were at Trinity.
Okay, because your projected financial report lists her as executive director, not as CEO and not as co-founder. CEO.
She's the executive director of SEM consulting.
And that's the ounce. Okay, cuz it doesn't doesn't refer to The ounce of money? 'Cause it says number of employ corporate administrators.
Uh-huh.
I thought she was an LLC and not a corporation.
No, this this, I mean Trinity is a corporation, right?
Trinity LLC.
Yeah, Trinity is an LLC. I I mean I I see what you're saying is that the words here says corporate administrator. I I I don't think that indicates uh they're official.
Well, I'm just trying to figure out what her role is, 'cause you say this purports to indicate that she worked eighty four hours a week at a pay of seventy, I'm assuming that's seventy dollars?
Right.
Yes. Yes.
Correct.
Independent contractor for one site of a different company.
And that began in twenty twenty one?
That's the end of the year.
As as far back as, yes, twenty twenty one, correct.
Okay, cuz there's no year on this uh projected uh f project financial statement,
I see that um.
so. And it doesn't tell us when it was fru when was this printed?
You know, we we've we've found we've Uh, i I don't know, but it's attached to an email that we do have a date on of March fifth, twenty twenty one.
Do you have the
Yes, I
email to to introduce today?
Yeah, I'll uh give that to staff and and uh with the chairman's permission, it'll uh be distributed to the members.
Any objection from committee council? Have you seen the document?
No, objection, n have not seen it.
That's the new data section.
Now if I'm reading this correctly, it says fifty percent of profit.
Correct.
If it's a I'm just trying to figure out how you figure it out fifty percent.
This one.
I'm trying to make sense of this financial report and it's really hard to do that.
Yeah.
I think I'm a bit wrong. Did I tell you about my dog? I was like, is it a dog? Or a cat? Or a dog?
Time is. On each side had a different mark, some sites come out on every site. Each site had different marks. So so you can look over here and you can see.
Okay.
And this is how we're gonna expedite it for order. We execute.
I mean the document in in in front of you is not intended to be a contract or a legal document. I'm offering it as evidence to show
Well I understand that, sure, but you've maintained throughout this hearing that that she had a consulting firm,
Correct.
that she was entitled to all these dollars, and that it was solely hers.
Correct.
But this suggests that she was an executive director, there was a prog program operations director who was edwin a program manager nadege and administrator marjorie and marie smith and they all have
well she's very smart
profits in there and it totals a hundred percent
yeah three no six
but i don't know that all those are the family members that sit around that table to make this agreement that you keep talking about
yeah mmm right
are all these people the relatives
yes
Except for
What what who is Nadege?
Except for wait, I'm sorry, one of them is not, who's not a relative.
Nadege.
Nadege is not a relative.
That's my mother.
So we had an interloper interloper at the family table?
She's like family.
Alright, I'm just trying to make sense of the topic,
No no, I get it, I get it.
sorry.
It's it's it's this is not how business is is generally uh usually conducted in big corporations. Usually when you're dealing with multi-million dollar
Uh, I don't wanna get into that, sir. I just wanna
He's really the writer.
understand this document.
Excellent.
So So in the um funding, federal funding world I mean, I don't see a profit, it's usually worked on by non-profits that get federal funds.
Mm.
What do you consi what what was considered profit?
No.
uh trinity wasn't a non-profit trinity was a was a corporation that that made profit and the family members had an agreement family members plus had an agreement as to how they would
florida gave federal dollars to a for-profit company to do healthcare work
yes well it it it the federal funds went to the state of florida actually and then the state of florida hired corporations to help them get people vaccinated.
Well, I'll ask you yes.
I I mean the same way the state contracts with the hospital or clinic.
I Right. Yeah, I don't I just wanna know how did you determine profit?
No. But you can answer it. Just a minute. How do you
Because you seem to suggest that if
Yeah.
Florida gave you five million dollars, whether it was an overpayment or not, that she was entitled to half of that.
Council, I
Which is really just the grant or the money you're being given.
No, no, no, this
Council, council, I wou I would push your mike away when you talk to your clients.
Ye- Okay, thank you. No, these weren't these weren't grants. These were payments that were being made for services rendered.
Sure, if you would just answer the question, how is the profit determined?
Okay, give me a second. Profit was determined the same way every company determines profit. They they get the money in, they pay the expenses.
Oh, you're being disingenuous, counselor. I'll just move on. Um
That's true.
When was S and M consulted? put together when was it incorporated or
you we don't contest the dates that are in the uh documents pretend uh provided by staff i can go back and look at it for you
ok staff do you recall please when was snm consulting organized
march twelfth twenty twenty one
march twelfth twenty twenty one and this work was being done in february and So you actually incorporate it. You put the consulting firm together after this profit sharing agreement?
I I yes, I believe that's accurate.
Okay. I'll pass for now. Thank you.
General lady yields. Uh, chair now recognizes Mister Nott.
Thank you, Mister Chairman. Mister Bars, I wanna start back with where Mister Moran left off. Um. Your first assertion said that this was a profit sharing agreement, correct?
This indicates what the profit sharing agreement was. I'm not saying that this piece of paper is a profit sharing agreement. I'm saying it's evidence of the existence of a profit sharing agreement, and it's laid out in the paper.
Sure. But you would also agree with Mr. Moran that that is potentially exculpatory.
Yes, absolutely.
Um, but you said it was you insinuated that it was somewhat simple because it was a family business, correct?
No, I'm saying I'm saying the way family businesses work is they don't always run downtown and hire expensive lawyers to draw up complicated documents. Sometimes they just come to an agreement around the kitchen table. And that's what happened here. Her father was was suffering from COVID. The family came together. They had a meeting and they discussed how they were gonna divide things up. They did it at her house.
Okay. You are aware that your client and her husband are are attorneys, I believe. Are you aware of that?
I I I am.
Okay. It just seems remarkably simplistic, given the um
No.
Not if you're dealing with people that you trust.
Well, we differ on that. Um, but you know
Well, I I wouldn't make my my my sister's sign some some kind of agreement with me. If I borrowed fifty thousand dollars from my sister, there wouldn't be a contract. We wouldn't agree to it in writing. We would just agree.
Well, you're you're you're you're making a lot of references about the family business and corporate structures and so on, so forth. I'm just making the point. It seems remarkably
Correct.
So this is this is the part that I had the biggest question about because Failing to comply, failing to file a financial disclosure, actually makes you more prone to be investigated, would it not?
I believe it would, yes.
So council was saying don't do something that will make your light shine brighter for the investigators, correct?
I I I wanna understand that we're both talking about the same thing. You're saying that that failure to turn over this document to staff?
Fail failure to fill out the.
Right, that should have been done.
Should have been done, but was it your testimony or your your your argument that her previous counsel
No. No, no, no, no. I'm saying counsel told advised her not to turn over different things like this.
Okay. But it was her own decision not to comply with their inquiries into the financial disclosure.
No, whatever the committee's request were made.
Yes.
The committee was making the request, she was represented by council at the time, and council was advising not to turn over documents to the ethics committee staff because they were concerned about her fifth amendment right.
Okay.
Period.
Okay. Now, staff, I'm gonna give you a chance to respond, but just so that the the members can understand who are watching this or uh for council, In regards to the congressional financial disclosure reports that we're referencing here,
Right.
um, this is not some zero tolerance gotcha game, is it?
Absolutely not. The committee recognizes that people inadvertently Okay, hold on. fail to file or make errors in their disclosure. So perhaps.
And, matter of fact, it can be fairly common that members do forget to file, or they file a copy and pasted version from last year, or there could be ambiguities that need clarification, correct?
I think we had stats hovering around thirty percent of members have some error that needs fixing.
And that's year over year, correct?
Mm-hmm.
Yes.
Okay. Um now in regards to what's been maintained, can I get the page number six, the flow of Trinity funds from twenty one to twenty two? On the screen? Taking a more bird's eye view here, I want I want you to respond. uh staff and council. The narrative as I understand it from the respondent is essentially that this was an established business, there were uh existing business operations, there was on the on behalf of the state of Florida, there was a five million dollar surcharge into these accounts, and then once that was noticed there was an agreement to essentially repay. Other than that, the distributions, the profit sharing agreement that we've been hearing about, it was sort of business as usual and there's really no way to know that this was being funneled into the campaign beyond the legal limits. I just wanna give you the chance to clarify um why or why why or why not that is the case.
Um I'm not sure I fully understand the question, but to the extent that uh you know at the time that these large loans were being made to her campaign, there was some press reporting saying, where did all this money come from, and recognizing that there was evidence of this COVID contract, and some questions were raised about that. But various aspects of the record uh got in the way of her competitive primary opponent's ability to recognize what was going on here, chief of which is that she failed to file a financial disclosure until after that primary but also the fact that this money didn't all go directly to her campaign, some of it was paid to the various PACs and other things that are at issue, uh as well as just the the lack of transparency about what was going on with the profiteering agreement.
Was there evidence that this money was was distributed with the purpose of ultimately ending up in the campaign?
One seventeen.
There is evidence and that that is the the investigative subcommittee's conclusion. Uh the sheer timing of the payments I think is the the most noteworthy evidence. The money would come in, it would go to her and then it would go into their campaign or it would go out to someone else in her family. And in a few instances it went directly from the health care company to the campaign. But beyond that, the council has suggested at some point that this profit sharing agreement sort of predates the scheme to get money into her campaign. But it's all part of the same campaign. And if you look at exhibits two, three, and four to the motion for summary judgment, that first exhibit two is an email from Can we pull that up on the screen? January second. Is that it? Can we get a s- a s- Uh, unfortunately I don't, well I don't know. Fine. Can we put that on the screen? Alright. Uh, it was an exhibit to the motion that you received. Okay. Uh, but it is an email from January second, twenty twenty one, from the Congresswoman to her brother, Nadege, stating, uh, I will be running for Congress again and need to roll out my non-profit, essential health. There has been some whispering going on that there may be a special election soon approaching. It even notes that the the colors for the essential community health letterhead should be the same as the campaign colors. And then essential community health submits the uh proposal for the COVID funds that Congresswoman Garcia was talking about earlier. Later that is converted into a request from Trinity. But it all flows from this initial plan to launch her campaign, set up this intended non-profit that she never actually sets up, uh and then she starts receiving this money from the state
Other than um
Mm.
On that on that uh page number six of the of the ch of the um of the packet, did you have reason to believe that any of these entities were set up exclusively for funneling money to the campaign?
Yes, based on the times that they were set up and the lack of other action in their accounts or relating to those companies, all of these sibling LLCs, SCM Consulting, EC Firm LLC, and MC Nursing Journey LLC do appear and the evidence is clear and convincing that it was set up for the purpose of receiving these funds.
And again, why do you say that?
Because of the each was set up in the same week after she received the funds.
So again, that was my earlier question. I'm sorry it wasn't clear. This chart has a lot of different entities, and it was insinuated that all of these entities predated the money, were operating on autopilot so to speak, and there was really no interruption other than the five million dollar drop that was ultimately repaid. That's not the case.
I understand.
These are not all independent and functioning entities. Um apart from the campaign. That's the conclusion that I'm I'm I'm trying to reach. Um and just for the the the sake of the record, this was not some sort of we got five million dollars, let's pay it back immediately to Florida, was it?
Uh no, it was not first of all it has not been repaid. Uh there is a settlement agreement that was entered into following litigation for Trinity to repay it over many years, but that
But there was a lawsuit to reclaim the five million dollars that they accidentally
Yes.
gave to
That's correct.
Okay. No further questions, or uh or excuse me, Mister Chairman.
May may may I respond to some of that?
Sure. Yeah.
First there's some confusion about about the the financial disclosures and and what her prior lawyers were advising her to do. Her prior lawyers weren't advising her not to file financial disclosures.
I misunderstood what you were saying.
Okay, all right.
I was trying to clarify that.
Okay. No.
You found why I was confused.
I now I do, yes.
Yes.
No. They'd they were not advising her to not file financial disclosures.
You were referring to this alone, not the disclosures required by law. That's what that's what the the delta was.
Corre correct. Correct, okay.
And I apologize for that.
All right. Uh the the second point I'd like to make is that essential community health, managed projects, they did work Right, right. They wou they were out in the field doing work, so i i the committee shouldn't get the false idea that these are just corporations set up for the purposes of transferring money from one entity to another. If if essential community health is out there passing out food and knocking on doors, and passing out masks, in underrepresented neighborhoods and lining people up for vaccinations, it's much more than just a shell, it's an ongoing active part of the community, and that's what was happening with it. So so don't mistake that for a moment. The second most important point that I'd like to make is my understanding is that the overpayment the mistake made by the state of Florida was made sometime in July of twenty twenty one. I these these different entities that were set up were set up prior to that happening.
Uh-huh.
So it's not as though, you know, there's there's some big windfall and then everyone runs out to set up corporations to get money. That's not what happened. And I just wanted to clarify that.
Also there's a loss of this.
Thank you.
I totally
And and one final thing we wanna is is that they didn't receive their first payment
don't know.
From the state under the contract until April of twenty twenty one.
And the and the LLCs in the criminal law, they're gonna have to re-work this.
And the LLCs were created, these different LLCs were created in March,
Mm.
prior to them receiving that money from the state of Florida, on the contract and prior to receiving any of the
And the
uh mistaken money that the state of Florida sent them. So all of that was set up ahead of time. Committee is telling a story that makes it sound like Trinity gets five million dollars and then everybody runs out and sets up these corporations in order to hide all of the money and that's just factually and this is a factual dispute that we have, that's factually incorrect. What happened was all of these different corporations were set up prior to them receiving penny-one from the Florida contracts, and definitely before July, when that five, that extra five million dollars came in. And and keep in mind that the state of Florida paid Trinity fourteen million dollars. There's a lot of money involved here, it's not just the five million. So that means there's another nine million that's being distributed that's legitimate money. Right? That wasn't a mistake. That's a lot of money that's going through these different corporations. But the corporations that are in set up after the fact, they were already in existence when that money started flowing.
Awesome.
Just not any follow-up to that? Chair recognizes Mister Subramanian for his questioning.
Uh thank you, thank you, Mister Chair. Uh I cou- counsel for the committee, uh I was wondering if um if you could bear with me, if you could actually go through sort of the uh mens rea the uh where intent is required uh through some of these counts, or through many of these counts. If you could just walk um
Sure, I'll ask our clerk to return us to the uh PowerPoint slide that
just me and the public through that.
listed all twenty-seven counts so that we can talk through them individually. Um so the first eighteen counts are the various campaign finance related counts and some of them have mens rea requirements that require the knowledge and uh willfulness of the congresswoman, but many of them do not.
Ca can I get a copy of this please? This document that's
It's page four of the PowerPoint document you've been provided.
Thank you.
And it's just a list of the counts and the statement of alleged violations.
Let's let's not make an issue of that.
So With respect to the charge that there were conduit funds from Trinity Healthcare Services, uh, in order to find that that was a violation of federal campaign finance regulations, it does not require to find that she had knowledge of that. Uh, with respect to the fact that there were improper contributions that were falsely reported as personal loans to the extent that is charged and is in the statement of alleged violations as a reporting violation her personal knowledge is not essential to that charge. uh for failure to properly disclose the loans and to disclose the payments from the campaign to the respondent. Those again, those are reporting errors. Uh i those are violations regardless of whether she was aware of them. For the acceptance of improper campaign contributions from her family members, her friend, uh various pacts, et cetera, uh to the extent that those contributions were intended by to benefit her campaign, they were improper contributions. Uh I do think that in order for her to be held uh sort of to account for those, whi while they are impermissible contributions that would need to be returned if she didn't realize they were happening uh I think for her to be held to account the argument that the investigative subcommittee has put forward, that these in-kind contributions uh w she did have reason to know about. Uh I don't think that's essential to finding that there was a violation, but I do think that is what the charge is. Uh the improper contra uh the conduit funds, similar to the conduit funds from Trinity, uh to the extent that is charged and is charged as a campaign finance violation, her knowledge and intent is not required. Same thing with the additional reporting errors, the and the false reports filed with FEC generally. That charge is meant to capture the systemic reporting errors and repeated uh loan misstatements. Now, charges fifteen, sixteen, and seventeen are based on criminal statutes, and they do require some level of mens rea where she was had the had the requisite intent to engage in this activity. So the investigative subcommittee has charged her with morningly engaging in money laundering with respect to not just the funds that went from Trinity into her campaign and were funneled through myriad different entities, but also with respect to the funds that went from Petrogas, Haiti through the various PAC-like organizations into her campaign. And then finally, the false statements charge, that does refer to the false statements made to the FEC in the reports. A single charge of false statements was brought in recognition of the fact that the ISC founder was clear in convincing evidence that she would know that, uh, the millions of dollars that were moved into her campaign uh were not actually uh transferred as reported.
Is that something
Uh. And then the coming of campaign and personal funds is a house rule that definitely does not require her personal knowledge, uh but in that it involves her personal funds certainly by nature of that would involve her having some awareness. Uh the financial disclosure accounts, on their own they do not, to be a violation, they do not require any personal intent or knowledge, but the committee's long-standing precedent has been that it will not take enforcement action against members, for inadvertent failures to file or errors, provided that when they are made aware of such errors or uh delinquencies that they, they remedy them. And then the house rule charges do not require and the code of official conduct charge don't have any specific mens rea requirement those are more generalized ethics standards that have the requirements you read into them.
So so you're saying that only counts fifteen, sixteen and seventeen require uh proof of intent.
Those are the only ones that require proof of intent. Personal knowledge. I think there was intent for others, but those are the only ones that require it.
And what uh evidence did you draw upon to prove intent in those counts?
Yeah. Uh, in some instances there is documentary evidence going towards that. So for example, the money laundering of the f Trinity funds. We see the text message in which the Congresswoman discusses the money that her sister is giving to her uh friend that is then going into her campaign, and that is money that her sister had just received from Trinity. Uh and then also the timing and nature of the contributions we think goes to that. We're not talking about a five thousand dollar contribution that you may not have noticed in your campaign, we're talking about the bulk of her campaign finances. Um I think the
Of course that's not money laundering if that money was was her sister's and her sister had a right to it. The ki the staff has has presupposed that all of this money is somehow tainted, and that's where we have the biggest factual dispute here, and that's why this is silly for us to try to resolve this with a motion for summary judgment. We need to have a hearing so that you can determine whether or not this money was tainted or not if it's not tainted money then none of these counts should be held against the congresswoman
corporate contributions
and you can't determine whether or not it's tainted without without taking some evidence on it and giving me an opportunity to call witnesses as well
i understand yeah and i i do wanna get to your response to to this as well so thank you i uh could you keep going uh you you had just come up with a challenge
yeah corporate contributions are impermissible campaign contributions to Try to obscure the source of them by sending them through various individuals to be made at the max amount the individual contributions have, is an intent to conceal the unlawful contributions.
Yes, and then the false statements, seventeen.
Yes, uh, that that relates to the repeated false, uh, FEC filings regarding her loans. Just a moment. The respondent has has argued that she wasn't responsible for her FEC filings, and so even agreeing, arguendo that she wasn't involved with, you know, aware of every misstatement on her FEC filings, that's what some of the earlier charges are meant to get to, the systemic sloppiness of the filings. But this charge is meant to get to the fact that she has repeatedly for sixty or sixty-one cycles reported her loans in a way that does not match the actual transfer of funds in her bank records. And she may not have been the one filing her FEC reports, but that was the money from her account. What her counsel has argued was her personal funds, and what we have argued was impermissible corporate funds.
Okay, I wanted to give uh uh um counsel to respond uh to especially fifteen, sixteen, seventeen where there's an intent requirement, and I think those are some of the more serious charges as well.
Right, and and excuse me.
No, that's fine. I don't like the colour of the screen, maybe it's a
Money laundering is a federal crime. And it presupposes that that there is a taint on the money. The money is ill-gotten gains, or or or the the money has been flown through, uh or transferred through some account in order to conceal its source that's what money laundering is every single penny that went into trinity came from the state of florida all of that money was paid by the state to trinity trinity has that money, it's not money laundering at that point, right? Can we all agree that that the Florida sending Trinity a check is not evidence of money laundering Trinity then takes that money that they receive from the state of Florida to do all of these different vaccination projects and they pay out their expenses they pay out all their employees and then if there's money left over it is distributed pursuant to their family agreement, what I called the profit sharing agreement. Every individual that received funds worked for those funds. There was nobody, uh and and I don't think the committee has has competently suggested that there was somebody getting money who wasn't working, who wasn't doing something in return for it. Congresswoman is somehow guilty because Trinity paid out money to those different corporations in the floor sheet is absurd. You would have to come in you would have to come into a courtroom and argue that the the the money from Trinity was somehow tainted, that it was illegal, or that none of these groups deserved the money, and staff hasn't even made that argument. The Congresswoman was out there working, everyone else, all of the individuals, including her brother, including her sister, including Nadege, they were all out there working all day. They deserved a piece of whatever they deserved to be paid for their work, and if they were part of the leaders of Trinity, and everyone agreed, then they deserved a particular profit sharing. That's what was happening, and to call that money laundering is based on a false premise that this money is tainted because Trinity didn't deserve to get the money from the state of Florida. And it may be true that Trinity did not deserve to receive that extra five million dollars, but Trinity didn't cause that to happen. The state made a mistake. Now, we can talk about whether or not Trinity should have caught it immediately, should have given back immediately whether or not it was improper for trinity to hold on to it as long as they did before entering into an agreement to prepay it to pay it all back. Like we can talk about those things, but when that money flows from the state of from the federal government to the state of florida from the state of florida to trinity that is all one hundred percent legitimate and above board and when trinity distributes it to the different family members and different organizations that the family members are doing work for, that's completely appropriate also. Uh, another member said, well, the the dates that these corporations were open, you know, it's it's problematic. Well, they knew that they were going after these contracts, they knew that all of this work had to be done in the field, the corporations were set up prior to them receiving the money, prior to them being paid. There's no way that this committee could grant a summary judgment motion on on on these kinds of counts when when there is no intent that's been proven. In fact, it hasn't even been proven that the money is tainted and would fit under the definition of money laundering. I understand that there were significant problems with with with filing the proper paperwork. We we get that and we understand that. There's an affidavit from somebody saying someone else was handling ninety five percent of the filings with the FEC. Now, do the committee rules require staff to prove by a clear convincing evidence that the congresswoman had the intent to file the wrong file, the wrong FEC files? I don't know, maybe it does or maybe it doesn't. That's really not the point. The point is, she wasn't the one doing that. That was somebody else. We have a factual dispute on that, and I would like an opportunity to be able to flush that out for you, to call in witnesses and to cross-examine witnesses to determine who actually filed these FEC forms that were wrong. Were they doing it under the direction of the Congresswoman, or were they doing it under the direction of somebody that was working for the campaign who claimed they knew how to fill it all out, and it turns out they lied? There's a big difference there. And and the only way we can get to that kind of nuanced decision on any of these issues, is by having a full hearing. That's what that's what trials are for. That's what adjudicative hearings are for, so we can get to the truth of all of this. Right now on this record, there's not enough. And and and especially when you have me now telling the committee that we are factually disputing all of these issues.
Thank you. Uh, Counselor, how does the, uh, for the committee, how does the straw donor scheme fit into the counts themselves? Do you know which one that, which ones those cover?
Yeah, so the straw donor scheme is not unrelated to the Trinity funds money laundering scheme because as I mentioned earlier, the funds that were moved into uh the sister's account to the friend's account into the campaign originated with Trinity, and that sort of moving of it it was intended to hide the fact that it was an unlawful contribution. It also goes to the false statements piece because that is one of the clearest pieces of evidence that she was aware of the fact that things were being reported as coming from a source other than who they actually came from.
And counsel further to find out how would you respond to that?
The money flowed appropriately from Trinity to her sister, to Nadege, to her brother, to other people. And then those people wrote campaign contributions because they wanted to contribute to her campaign. And that's perfectly permissible.
Do you see the text messages? Uh and the
I I saw one text messages that referred to
Does the Max max check
the the limit is twenty nine hundred, that's why she got to
Does the max is two checks for twenty nine hundred, this is why sister had to give money to Nadage for her to make another Donation so when you give money to another person that's like generally a to make a donation that's like a
Right and and and and if we were to read that text message alone without any context and without hearing from the person who wrote it and the person who received it to get a little context I could understand why somebody would misunderstand misinterpret it. But the fact of the matter is I would suggest that the committee needs to take some evidence on You need to bring these people in and the committee can subpoena them, I can request a subpoena to bring them in myself, but let's air this and let's let's find out what really happened, because that text message should not be read alone. We should know what they were discussing, we should be able to put it in some kind of a context.
And and then the other text string of text messages, efforts to inflate FEC reporting numbers with loans, uh, Would you say that the same thing about those text messages as well, that that we need more context for that?
Yes, I mean I I would uh I would say at this stage of the proceeding that that we uh disagree factually with with the interpretation that staff has attached to these text messages. And in order to fully understand it, we would need more information and we would need to hear from the witnesses. But right now we have a factual disagreement as to the meaning behind these text messages.
And then is there a factual disagreement about the money from Petrogas, Haiti to progressive people to truth and justice? This is page ten of the
A a thousand percent of factual dispute because uh the the first of all because staff has suggested that the Congresswoman has some knowledge of all of this, and she simply did not. at all and if if if i have to at an adjudicated hearing maybe we're gonna have to put the congresswoman on the stand to testify to that but she had no idea whatsoever that that was happening with those funds during the twenty twenty two election cycle so factually speaking yes i object to those conclusions that were drawn the money may have flowed that way i haven't seen the supporting documents for example from the haitian government to the uh florida based corporation um i i just haven't had the time to get into those documents to be honest with you but uh whether or not the congresswoman was aware of the flow of that money i can tell you that her position is she was not aware of it and would be happy to testify to that at the appropriate time
alright council for the committee how did you reach the conclusions on uh powerpoint Page ten.
Detecting.
Uh those conclusions the the flow of money was r that We need to conclusion was reached on the basis of the clear bank records. That's incontrovertible. This is how the money flowed. Her as to her intent the investigative subcommittee did believe that there was clear and convincing evidence of her intent recognizing that when it gave her the opportunity to testify under oath to that question she did not do so. Based on the evidence it had it felt it was enough to show that. There's the fact that shortly before that money started to move from Petrogas Haiti into Progressive People, there are records of her having a campaign fundraising meeting with the individual who owns Petrogas Haiti and his wife.
Let me stop you there. How did you know she had that meeting and that it was about this?
Because of the calendar entry and the text message communications between two of her staffers, asking what's this thing on the calendar and explaining that uh it was a meeting that had been scheduled by someone and it It says
This was a meeting w-
reception, Petro-Gas Haiti fundraiser.
This was a meeting with the congresswoman and Petro-Gas Haiti and themsel directly, like they met.
That wou that's what was scheduled. We weren't able to question the congresswoman or the
Then
individuals of Petro-Gas Haiti about the specifics of that meeting.
A and um the I think the defense here is saying that this may have happened but uh there was no knowledge of this by the congresswoman could you um explain to us uh this is this is
The
surrounding factors is what you're saying is
So so what led the investigative subcommittee to conclude that she surely knew about this was the Timing of the transactions, the chain of her closest associates who carried them out, including her husband, uh and the complexity of it. There's clearly some awareness of the fact that this is not lawful.
Uh, Counselor, Defendant, would you wanna respond?
Yeah, so so you you heard the answer that staff just gave. It wasn't a direct answer. Basically, they're just saying circumstantially, well, it looks like that because of the timing, and it looks like that because it was complicated. And let me just suggest to the committee that the appropriate thing to do would be to bring in witnesses so we can question it.
We know, we know, we know. I understand.
I I do wanna ask
But I mean this is absurd.
No, I don't. not wait you made that point I understand we're just trying to
oh okay
to flesh things out
I I I understand and and and just
so for committee for council for the committee you mentioned that you just mentioned the term clear and convincing evidence right this this is what we have to
yes
essentially show is that right
yes uh we're not denying that it's circumstantial in certain places but that it is nonetheless clear and convincing I think there's one other important factor I neglected to mention which is that Her campaign account was at zero dollars for a point during this period, uh and yet there were ads being bought, there were things happening to support her campaign, so either she didn't realize that someone else was paying for her campaign, uh or she was well aware that these uh campaign expenses were be coming from elsewhere.
These campaign ads, were they they were TV ads or were they uh, do you know what form these ads were in?
I believe they were TV and radio ads during that time.
So then they would have a a marker on paid for, is that right? Like they would show who paid for the ad, right? That by they would.
I believe that's right, and part of the record is that Truth Injustice paid for ads that had uh markers that they were paid for by the congresswoman's campaign.
Is it would counsel for defend wanna respond to any of that?
I I I I think it's a question of knowledge. You have an affidavit saying that decisions were being made by other people in the campaign. Um Give me one second, I'm sorry.
Uh and I I just to be clear, I don't know if it's a question of knowledge on all of these accounts, but we're talking about I think the most serious accounts here, right?
Mm, as well as the communication purchases, the management.
I mean I mean he The affidavit that that we've previously uh submitted. says that regarding truth and justice, individual one was the only person observed controlling the entity. He appeared to have complete authority over it, and explained that it was structured so as to not require the same level of financial reporting as FEC. He indicated that it was used to fund attack advertisements, including one to attack Barbara Sharif. I i this is this is clearly a a a an issue of fact for the committee to consider. Uh because according to the uh uh person filling out this affidavit, someone else was handling all of that and it was not the Congresswoman.
Thank you, I I yield back.
Jim yields back, uh I'd like to clear up a couple things and um there may be a few other members who have questions uh would like to try to limit questions a little more again I'm not gonna put time limits on this but I I do think it's important for us to try to uh move through uh as uh quickly uh as possible. Uh Mr. Brzee you talk about the fact that this was a a a family business is that right?
Yes sir.
Uh and a family business uh in which uh uh the respondent she was the CEO of the company.
That's correct.
And she was actively involved in the day-to-day operations of the company?
She she was until at some point I believe she stepped away uh for campaign purposes, but primarily yes, she was involved with the uh day-to-day operations.
Uh, but she was unaware of the five million dollar overpayment to her company for which she was the CEO and involved in the day-to-day operations. And and which came off of a single invoice because according to uh the um statement of alleged violations, uh that the largest single over overpayment to Trinity was approximately five million dollars in connection with an invoice the invoice was for fifty thousand five hundred seventy eight dollars and fifty cents and instead of paying that invoice Trinity received a payment of five million fifty seven thousand eight hundred and fifty dollars a hundred times the amount of the invoice and so you have described this as a small company we don't need uh profit sharing agreements because this is all family. Uh she's the CEO, she's involved in the day-to-day operations, but she fails to notice a payment that's a hundred times more than Trinity should've received and actually a payment forty percent in excess of the total payments that Trinity received over the course of the contract and so uh I'm trying to wrap my head around uh this overpayment um because the allegations made by the committee, is that the overpayments were money much of which was put into these different accounts, whether it be directly to the respondent, SMC, consulting, EC firm, or others.
Right.
Uh, but it's your allegation uh that she had no knowledge of this, uh, and was unaware that they had received a payment a hundred times more than they invoiced the state of Florida.
Uh, I I didn't say she was unaware of of the money coming in, she was certainly aware that that Trinity was receiving large checks from the state of Florida. She was aware th I mean they were bringing in millions of dollars, over fourteen million dollars I believe that that Trinity brought in during this period of time. But no, she wasn't sitting there uh opening the envelopes and reading the checks and signing the checks and depositing the checks into the account. Someone else was doing all of that. When those checks came in, when that big check came in, the wrong one from the state of Florida, she had already stepped aside from Trinity in order to work on the campaign, so she wasn't even there when that came in. She was doing the work for the consulting group, working on the campaign, but she wasn't receiving the financial information every day.
Uh,
What do what do you
and and then uh as it relates to uh the chart uh on page six, uh the chart that uh we we referred to Uh, uh, g- there is directly under Trinity, uh, there is a pink box that has a payment of - of two hundred thousand dollars. I think that payment is actually, uh, just short of that, a hundred and ninety-eight thousand, eight hundred and twenty-eight dollars. And it's at the staff's, um, position, uh, that that money, and again that was not a single payment, but those payments, uh, went directly from Trinity Health Care to the respondent's account, and that those payments in and of themselves uh the account was uh unable to receive those payments.
Yes, there were three separate payments from Trinity Health Care Services bank account directly into the campaign's bank account, which were at the same institution.
And then there has been some conversation about the uh money that the respondent's sister gave to NIDAJ uh and then uh Miss LeBlanc then makes a contribution to the campaign. and you actually reference on page eight of the materials uh a t uh uh uh um the body of a text. And and just so I'm uh understanding this correctly, this was a text that the was sent by the respondent, not a text sent by her sister, not a text sent by someone else, but a text sent by the respondent that says the max is two checks of twenty nine hundred, that's why And we blocked out the name, but the sister had to give money to Nidage for her to make another donation. Is that correct?
That's correct. It's a text from her to her campaign treasurer.
Now, Mister Brazier, you said that uh at some point that your client had stepped away from the family business and was no longer being a part of that but she continued to receive compensation, did she not?
She did. It's it's Barzee. Bar and then Z, Bar Z.
Bar Bar Z, Mister Bar Z, I'm sorry.
That's okay, I just I wanted to correct it for you.
Uh but she had stepped away but was still receiving uh compensation from the company?
Yeah, and in fact she wasn't even the same city where where the finance people at Trinity were handling all of this. Eh you know, they were all over the state of Florida. They had they had operations in Jacksonville, in Orlando, in Tampa, in Miami. Um, what
Had she stepped down as CEO?
No, she's uh I mean the truth is yes, but she didn't sign any document that said she was stepping down as CEO. But, a again, this is a family owned business. What she did was she stepped away from the company, from running the company. The family continued running the company. She wasn't removed as CEO on any official document or something. But she wasn't there on the day-to-day basis, and even when she was there day-to-day, her focus was not the finances, that's not what she was doing. Someone else was running the finances, and she was running the community outreach. She's the one that had the contacts with all the different churches, all the different community groups. She's the one that would go out and and and hire everyone. She's the one that would help them get out the tents and set up the tents. for the vaccination sites, so she's not she's not sitting behind some big desk, reviewing profit and loss statements all day. Someone else is dealing with finances, that's not what her role was.
I mean I I would just think if I was CEO of a company and we received a hundred times the invoice that we had sent out uh that at some point as the CEO that I would be notified of that,
I
but you're telling me that that's not how this family business was was set up.
Oh She she was notified that the money came in, I'm not saying she wasn't notified, But I'm just saying that I'm just saying that well at some point, at some point you would know the point.
Don't you remember the money that was in the company before?
I didn't say that. There's there's just to clarify, eh she was aware that money came in, she wasn't aware that the money that came in had come in because of a mistake from the state of Florida until much much later. Do you understand? So that I just needed to clarify that.
Mm-hmm. Uh and last question uh and then I'll turn over to the ranking member, uh as it relates to slide ten which we've talked about uh which was the money that flowed from the Haitian government to Petro-Gaz Haiti to progressive people to truth and justice um the flow chart there lists those dollar amounts um that came in from first from the Haitian government which was twelve and a half million dollars. It then flew uh it was then deposited into Petrogas Haitian account uh they then took a portion of that money, eight hundred and ten thousand, they deposited in an account entitled progressive people which was an account that their respondent's husband had control over. He then took seven hundred and twenty-five thousand of that and deposited in an account known as truth and justice, a campaign account that was controlled by her campaign consultant. And then on the statement of alleged violations, if I'm not mistaken, page twenty-seven, there is a chart showing where much of this money went. Uh, and it includes vendor one, payment eighteen thousand. Uh, her brother received a check, uh, from that account for a hundred and, uh, roughly a hundred and eighty thousand. Vendor two, a hundred and fifty thousand. Vendor three, twenty-four thousand. Vendor four, uh, four thousand five hundred. Vendor five, seventeen thousand vendor six forty five thousand vendor seven ninety six thousand uh and then her campaign manager was paid twenty five thousand dollars out of that account uh and is it the um position of the committee staff that these vendors provided services to the respondents' campaign and that those services that they provided uh to the campaign, were paid not by the campaign account, but were paid out of the account uh titled Truth and Justice.
Uh, yes, to some extent. Some of those vendors were also paid by the campaign for certain amounts, but other campaign expenses incurred by her campaign were paid by Truth and Justice to those vendors.
So some were paid duly, some were paid by her campaign, and then also paid by Truth and Justice.
Yes, particularly when she ran out of money in her uh campaign account.
And those and But, and were those invoices from your viewing the invoices were they built to her campaign?
Some of the invoices were built to her campaign, some of them didn't involve formal invoices.
Okay. 'Kay.
Like her brother.
Uh with that I will yield such time as the ranking member may consume.
Uh I uh I'm sorry, can I just respond to something that that staff said? I I apologize just quickly, the the the the important thing here is that progressive people there's no evidence that progressive people is is right now in the record before you we have not heard from the respondent's husband related to what his knowledge uh was of where petrogas haiti receive those funds so to put this on a chart saying that the money is coming from haiti and suggesting that the congresswoman who's six or seven steps down, somehow has knowledge of that, is absolutely unfair. We we we need to get somebody in in order to establish whether or not Petrogas understands where that money is flowing from, whether or not Progressive People Pack knows that the money from Petrogras was originated in Haiti and that evidence is not before this committee right now. Finally, the money going into truth and justice, which is being run by a campaign consultant, who the affidavit tells us was handling ninety-five percent of all of this. So, as far as the Congresswoman is concerned, whether or not these things factually happen the way this flowchart suggests, I I'm not sure. But did she have any knowledge of it? And did the people in the flowchart who were receiving the money know where the money was coming from upstream we don't have an answer to that without calling witnesses so if if the committee wants a a a finding on summary judgment to suggest that the congresswoman has violated some law or some rule of of the house at least let her talk to these witnesses who are making these claims allow us to cross examine them to determine what the truth is because The fact of the matter is this flow sheet on page ten doesn't show anything, other than some pretty boxes. It doesn't tell us what anybody knew. It doesn't tell us about the knowledge of where these funds were coming from.
The the individuals that control the accounts were her husband and her campaign consultant, and I'm assuming that your client knows those individuals. Uh would would committee staff like to respond to anything brought up?
Yes.
Uh I would like to note that out refer you to pages twenty three to twenty seven of the statement alleged violation, which lays out extensive evidence of how this scheme was carried out, including details of her husband's testimony that he just couldn't remember why the ninety percent of his company's funds went to this organization, truth and justice, and and where it came from or what it might be going towards. Uh I think the the evidence is there and we've already laid it out in detail. Uh he has however raised questions about whether Uh it's fair to say that she should have known that Truth and Justice's funds were going to benefit her campaign. Uh and she he's relying on this affidavit that he introduced just before the hearing from a staffer who the committee also interviewed. Um he has said that staffer says that uh individual one, Mister Mark Goodrich, was the one who decided everything that Truth and Good Justice was doing, and that the Congresswoman didn't know about it. Uh we're not disputing that individual one was involved in making those determinations but his testimony is that the Congresswoman knew about it. And the staffer cited in the affidavit when asked if she'd heard of the company, Truth and Justice, testified no. Now, yes, this is a fact issue that has come up last second just before the adjudicatory hearing, but at the time uh it's not material because the it's evident that the funds were used to support that and that she had ample reason to know that uh the funds were being used such. And it just strange credulity to suggest that she didn't know how her campaign was being funded.
Well, this is this is why you take testimony, because we don't have to just make arguments about well it's strange strange credulity because she must have known. Let's call witnesses and let's have a hearing and find out the truth. There's also s a suggestion that these things were being done because the campaign was out of money. The the the campaign wasn't out of money, the campaign was spending the money as a came in on TV ads and other things. The congresswoman had her own personal accounts. She would transfer, she would make loans to the campaign when it was necessary. So this type of outside spending that that individual number one was engaged in was being done independently of her knowledge. She had no knowledge of it. So how can we hold her responsible if if the only link to her is, well, she must have known. without having any concrete evidence before you. This is why I'm saying the idea of ruling on a summary judgment motion when something is at stake like a a a member's career is a mistake. Let's have some witnesses in here and let's figure out exactly what happened, rather than asking staff what their opinion of circumstantial evidence is, and whether or not it it makes them credulous or not.
Uh l- let me just follow up while something committee staff and then I will um uh yield to the ranking member. Um you talked a little bit, Brittany, about this affidavit uh that uh Miss Luster um filled out. Um and then you also talked about the fact that the committee staff had interviewed individuals uh f with truth and justice. Was was Miss Luster one that has she been interviewed?
Miss Luster wasn't with Truth and Justice, but yes, she was interviewed, as were the two individuals involved with Truth and Justice.
Right. Um, and when you talked to Miss Luster, uh, what statement did she give the committee, if you recall?
She did not know what Truth and Justice was, is what she told us.
All right. And then you interviewed two other individuals who were associated with Truth and Justice?
Yes, we interviewed the individual who is listed as sort of the president of Truth and Justice on the filings with the state. He indicated that he just understood it was a vehicle to make expenditures for her campaign. We interviewed individual one who was her campaign consultant, and he indicated similarly, uh the SAV discusses in detail some of his testimony and he also spoke to her direct knowledge of what was going on.
So Miss Luster said she was unfamiliar with truth and justice when she spoke to the committee before giving this affidavit and individual one who she references the committee spoke to individual one and his testimony before the committee, was that testimony under oath?
Uh yes.
That his testimony under oath before the committee was that the Congresswoman knew that the funds flowing from to truth and justice were being used to benefit her campaign.
Yes.
Uh, I tender um um, excuse me, um uh uh recognize the ranking member.
If I may, he said it under oath. It wasn't tested. And you know how we test the truth? We test it with cross-examination. It's the greatest way of testing whether or not a witness is telling the truth or not. You haven't even had an opportunity to ask him any questions.
I did not serve on the investigative subcommittee, and so that is the staff and the members of the investigative subcommittee. But I I wanted to make the point that he was placed under oath and so he is subject to perjury. Now, could he have lied? Clearly he could have lied. But if he lied to the committee and now comes and makes a contradicting statement, he would be subject to perjury. And so it's not just a statement where we called someone on the phone and they gave that statement. That statement was actually given
Oh. I
under the penalty of perjury and that that individual gave a sworn statement under oath before the committee. And so I do think that that is important, and an important distinction when we're talking about statements that are given. Uh, and clearly the statement that Miss Luster gave, according to committee staff, contradicts the statement that she gave, that was her statement under oath.
It was not under oath, but it was she was informed it was subject to the False Statements Act.
And and we dispute the statements that he made under oath, regardless of whether or not he made them under oath, regardless of whether or not uh another subcommittee heard that statement, we dispute that. We disagree with that. We don't believe he was being truthful when he made that statement. And therefore, I think the appropriate thing is to allow me to have an opportunity to cross-examine him. Because that's how we've done it for over two hundred years in this country.
Recognize a ranking member.
Thank you. Mister Chairman. Um. Mister President, I'm struggling with
Barzi.
Barzi, I'm sorry.
That's okay.
No, what what pronounces my name correctly. I'm struggling with some of what I see as inconsistencies, so I'm not a lawyer, I own a family business. So a family business to me is in fourteen million dollars, uh it's smaller than that. If I had fourteen million dollars, and I even e especially if it was family, I wouldn't have a this as a legal document for profit share.
I don't disagree with you at all, sir, neither would I, but the way that you and I would handle a business,
It's uh
And and and and the best way to get to the truth of that, sir, is to allow me to call the witnesses and have them tested by for the in front of the committee.
Yeah, I realize you're new to the process, but we're a little impatient, I think. We're tired. Um, because we've been at this in the ethics committee and the subcommittees for two years, and your client, represented by other attorneys, has not been responsible. If if I were in that position, I would have brought payroll records, I would have brought uh, tax records from the state of Florida and other things to prove that you were actually had building business expenses. But the absence of that sort of makes me sit here and go, this strains credibility that you could say, oh, it's just a family or it's a different community.
Mm.
I'm being honest with you. It's hard for me to take exception to that because and we we said this a lot at the beginning, this is a not a courtroom, this is the ethics committee.
Right.
So I'm just telling you honestly, it strains credibility, and if I had this kind of money and I was running for Congress, I would have on the FEC, I would have hired a compliance company. So all of those things, uh, having walked in here with a open mind, is training credibility and i- if I was looking at a financial statement in a family business, I would notice five million dollars
Right.
worth of if if it was was the other way, I'd sure as heck notice it. So i- I'm just being very honest with you. This strains credibility, from my perspective.
I I I appreciate that, I I appreciate that, not only do I appreciate it, I I concede that that it raises very significant questions. And and my point to the committee is instead of guessing as to what actually happened, instead of guessing what these motivations were, just give me an opportunity to call witnesses and to have them address you. I understand the impatience, I understand it's been going on two years, I understand that the other councils handled the case differently than I would, but if you give me an opportunity, I can call these witnesses and we can answer your questions and have them explain it to you. I'm I'm explaining it the best I can third-hand i in in based on what I've learned in the past twenty-one days. And and what I'm saying to the committee is if you wanna really understand all of this, if you really wanna s understand it and get to the truth of it, there's only one way to do that, and that's by calling in these witnesses, and questioning them under oath, and giving me an opportunity to cross-examine the staff witnesses, and giving staff an opportunity to cross-examine my witnesses.
And and I would I would agree with that, but part of our charge is
And that's how the truth will come out.
protect the reputation of this institution. And it's already been eroded by your client's action, at least in the public perception. If if we're being honest and truthful and we're trying to give her the benefit of doubt, we're already eroding that trust that we have a responsibility to adhere to. So I'm just being perfectly honest with you, it it doesn't it's not making sense to me at this moment. And in the context of just let me explain now,
Oh no.
what happens if this happens again? If we w- if we were to have granted the continuance, I don't know, I I just assume that we're gonna be back here in six months going through the same thing. So that's just my observation, it's more of an observation. I'll give you a second to respond, but only a few seconds please, cuz I know we're all tired.
I mean one one
Over two hours.
Okay, that's it. Some context. Trinity has been in business for over thirty years. They're a successful company. They made a lot of money. some years one or two million other years four five million sometimes more than that but it's a corporation that has been in existence for a long time it's an old family company at some point her father gets covid he gets sick other people are moving in to take over things and they come to an agreement we're gonna start dividing up the company we're gonna divide up profits and that's the profit sharing what i called evidence of the profit sharing agreement i i understand the members concern i i mean i get it and i understand it and the only way that i think could possibly be done to explain it is by calling in these witnesses and talking to them because we're not going to be able to judge their credibility or or understanding based on some paragraphs in a report that were written
You know.
Not for something this serious. Not for something this serious. And I get the fact that it is that the committee has been dragged along for a long time, and that there have been difficulties in getting this case moving. I I I concede that, and I understand that. And and I appreciate the patience that the committee has shown me, personally. But the fact of the matter is, at the end of the day, if we want to know the truth, rather than just go by your feelings, the way to do that would be to call witnesses, and to bring in witnesses, put them under oath, and let us ask them questions. That is the key. There is a reason why the justice system and and and trials is considered the gold standard all over the world, because of every single different system that's come up with trying to find the truth, The one system that works better than all the others are trials.
Counsel, I I just had some observations, I don't we've you've been very eloquent about your position. This doesn't come for me from just feelings, it comes from a objective business analysis. I've gone over hundreds, thousands of of business statements. N I own businesses, I did consulting. Um what we have here is no evidence of where the money came from, or went. and what services were provided. We've had over two years to have the client to be able to do that. I'm just expressing my opinion. I wanted to give you an opportunity to respond. It's not there are some feelings here because we're tired, but objectively looking at this, especially with families and two people who are attorneys with or went to law school and were attorneys, um you don't go into agreement with that kind of money based on how you're gonna divide things. especially with families, based on this as a ribbon of sharing.
I
So, uh, that's my comment. I'll yield back.
Thank you. I I I don't I don't think oh, I'm sorry, I'm sorry.
I I don't need any more comments. I can take that.
Go ahead. Uh, gentleman yields uh, chair recognizes Miss Hinson.
Thank you, Mister Chairman. Um, my question is again for committee staff, and I'm just gonna reference some things from the statement of alleged violations, um, cuz I think we we do need to talk about the truth and the numbers here. How many times did the investigative subcommittee meet?
So many times that I need to look it up. Uh, just one moment. Uh, twelve times over the course of two congresses.
'Kay, and how many requests for information did that subcommittee send to respond it?
Thirty.
Thirty.
Oh, to respond it? Three.
Three. Um, but there was a very good information gathering effort here over a significant amount of time, correct?
That's correct.
Yes. Uh, how many subpoenas were issued?
Fifty nine.
Fifty-nine subpoenas. Um, and over thirty-three thousand documents?
Correct.
So, the lack of candor charge, then this is gonna be my last point here, can you lay out and talk about how that uh response and lack of response from the respondent directly ties into that lack of candor charge?
Yes. So, uh, for two years the committee, the the investigative subcommittee saw information from various witnesses, including respondent, respondent through her various attorneys did not provide no documents despite the fifth amendment concerns that council has identified. She did hand over about two thousand documents of varying degrees of relevancy, uh responding to various requests, but she also completely ignored various of the requests from the investigative subcommittee. So the investigative subcommittee renewed its requests and narrowed its RFIs to try and make it less burdensome as she started to cite concerns about the cost of responding to it. Um At a certain point, the counsel for the congresswoman said she's gonna decline to further uh respond to these requests for information. So then we asked, this is in November twenty twenty four, is your client going to assert her fifth amendment right against self-incrimination? Counsel said, we're not saying that right now, we think that it's just too burdensome to respond to all these requests. And we said okay we'll narrow it further. And we came up with a narrower set of requests. Uh, they did not respond to that. New Congress came around, she uh moved on from that council during a period of time when she was unrepresented, we had a difficult time contacting her. Eventually a new investigative subcommittee was impaneled and a new request for information was sent out reiterating the narrowed requests that were outstanding. Uh and about a month after that her third council in the matter appeared, and we explained what was outstanding, we walked them through what we were missing, we again asked that he please let us know she's going to assert her fifth amendment, right? against Uh and the and we let him know at that time that we were also going to be seeking her testimony that the ISC had authorized a request for her testimony. Uh after several months of back and forth and trying to negotiate and come up with a uh timeline that would work for counsel and accommodate her schedule, there was a voluntary interview scheduled but she cancelled that last second. No documents were produced during that time, eventually the ISC was brought to the point that is is rare to have to do to their colleagues but they subpoenaed. her documents and testimony. Uh she was the the day before she was scheduled to appear for her subpoenaed deposition, she informed the committee through her then counsel that she would be asserting her fifth amendment right so the deposition was cancelled.
And here we are tonight. All right, thank you. That's the only question I have. Do you have a response to this complete lack of candor charge? And um obviously it's counsel before you, but um here we are tonight and this is why we are having the conversation about moving ahead with this
Right, and and what I heard was that the Congresswoman was communicating with the committee, that the Congresswoman had turned over thousands of documents, that the Congresswoman had attorneys communicating on her behalf with the committee staff, that they had agreed to set up an interview. This doesn't sound like a lack of candor to me, with all due respect,
When when your client canceled said interview that doesn't sound like
this sound No, because she has a fifth amendment right under the constitution of the United States to remain silent. And when push came to shove,
She didn't assert help.
she invoked that fifth amendment right.
She did not show up to the committee though to say, I am uh invoking my fifth amendment right, correct?
So,
She just she just can't
let me understand. So, so the allegation of lack of candor is that she didn't physically walk over across the street?
No, I'm I'm uh committee staff just detailed the reason why the lack of candor charge exists. Um, It's a multiple year, uh, I guess you'd call it systematic effort to avoid compliance with committee, fully applying complying with committee.
Which is nonsense, because that's not what happened.
The
You just heard that she turned over thousands of docu
Very clearly, sir, so this is my time. I am saying what the committee staff just laid out was a very clear pattern of dilatory tactics and um and uh a dil a direct uh non-compliance with their requests, and with the investigative subcommittee requests, which is why we are all uh at this point tonight where we are moving forward because frankly the house ethics committee's job is to protect the dignity of the chamber and make sure our members are meeting that uh requirement that we all agree to in the in the house rules so that is why we are here tonight I just wanted to make sure it was very clear that that pattern was laid out for the record, thank you and I I yield back Mister Chairman.
Oh.
And and and and and and and
May may I respond please? What's clear is that you wanna hold her you you wanna call her invoking the fifth amendment right a lack of
and that is inappropriate and that's what you're doing.
Oh I I call lack of candor Sir, lack of candor is the the uh evidence that this uh this staff has just laid out of a pattern over the course of the one hundred eighteenth and one hundred nineteenth congresses of not complying with committee requests that is the lack of candor. Thank you, I yield back.
The gentlelady yields back, the chair recognizes, Mister Ivey.
Thank you, Mister Chairman. Um Okay, uh as promised I wanna go to this document, this is twenty twenty two re-election funds. And I there I know there's been some questioning and comments about it, but I wanted to sort of follow up. Does this document link to the money laundering charges?
Yes, one of the charges relating to the Petro-Gas Haiti funds.
Alright. And what is that, sixteen? Count sixteen.
Mm. I get sixteen, do I? Yes, sixteen.
Okay.
Sorry, yes, sixteen.
All right. So the petrogas, I think you said earlier that this is evidence of this kind uh you talked about the complexity It was shows it was clearly unlawful. I think that was a quote. Those are my notes anyway.
Sounds like something I'd say.
Sorry?
Sounds like something I'd say.
Yes, ma'am. Uh, campaign finance reform meeting with head of Petro Gas Haiti.
Uh, she she had a fundraising meeting with the the there are documents that indicate she had a fundraising meeting with the head of Petro Gas Haiti shortly before the money began to flow into the organization affiliated with her husband.
Okay. And that demonstrates How does that support the claim of money laundering, the meeting?
It it's evidence that she uh likely knew what was happening there, combined with the other evidence, the timing of the proceeds, the um uh her involvement with all organizations in the chain. She was also providing money to Truth and Justice, Inc., and her campaign consultant was doing it uh and then the uh fact that the people involved were so close with her and uh the sheer amount of money involved would be hard to go unnoticed. Those were the factors that were considered in determining that uh there is enough convincing evidence that she must have known what was going on.
Well the what was going on part is what?
The When sh that that Petrobras Haiti was uh contributing to her campaign through shell corporations run by her closest associates.
Alright, so Progressive People, Inc., that's the the money goes from Petrobras Haiti to Progressive People, Inc.?
Correct.
Okay. And are you saying that was a shell corporation?
It was a corp I I use that term to refer to a corporation created for the purpose of receiving this money, funneling it funneling it into another one
Ok well by shell corporation I take that to mean that there was no other legitimate purpose for it.
Almost all of their funds went to Truth and Justice almost all of the funds they got came from Petrogas Haiti there were a few other funds they got from
Okay but shell corporation is a very tight definition right? Are you saying that there was no other purpose for progressive people?
Uh I uh all I'm willing to say based on the record before is that it was the overwhelming and primary purpose of the organization. Uh shell company was my word that I threw in there, it is not what appears in the statement of alleged violation. I think that the guy I see was most comfortable saying that this was the purpose of creating this organization and moving money through it.
Okay, and who said that?
I'm saying the investigative subcommittee felt comfortable arriving at that conclusion.
Oh I see.
Mm-hmm, okay.
Is there a f- a witness or a factual basis? beyond that that this was a shell corporation or that was the purpose it was um set up for
uh not not other than what i have described the fact that all of the money most of the money came from there most of the money went out into the other organization where we did speak with the witnesses so there were two people with each of these organizations progressive people and truth and justice sort of running things the two people involved with progressive people were her husband and uh an individual named michael joseph who did not comply with the subpoena Her husband spoke with us and and and uh his testimony is is recounted in the SAV, uh and the we consider that evidence that goes towards the convincing conclusion that she must have known about this. Uh, Truth and Justice is run by the individual involved with her campaign and another individual both of whom testified clearly about the they didn't know about the Petrograd's Haiti source of things because it was uh another entity over, but they knew the money was going into the campaign and that that was its purpose.
All right. And then the truth and justice piece, that's the seven hundred and twenty-five thousand comes to them.
Yes.
And then they send they made payments to campaign vendors.
Yes, that's the chart the chairman was discussing.
Right. Um And were the well, what was illegal about this chain of
Uh, so
What was the
Those are in-kind contributions. They were they were made on behalf of her campaign. Rather than her campaign paying the vendors directly, this organization paid the vendors. The money that was used originated from Petrogas, Haiti, which is not a lawful campaign donor.
Okay. So the the payments to the campaign vendors was, you said, a campaign in-kind campaign contribution?
Correct.
And not an actual financial payment for services?
I it's an the the the services are real, they're the in-kind nature of the contribution. Truth and Justice bought the campaign ads, the graphics, the various services and goods provided by the vendors uh for the benefit of the campaign. These were ads for her campaign and and other things sort of requ requested and sort of explicitly set up for her campaign.
Okay. Well, couple things quickly there then. So the unlawful activity was the fact you're uh testable or the position of committee staff was that it because it came from Petro Gas Haiti.
Yes, a corporation which cannot lawfully donate to a federal campaign.
All right. And then the attempts to conceal, which is the other one of the other elements of um money laundering, was what?
Uh, moving it from progressive people into progressive jus into truth and justice. Uh so these are when uh i it's an attempt to create a sort of dark money chain, one might call it. They rather than having to report these things as they would if it went through a campaign or even a an actual PAC uh it was passed through various organizations, so that the source of the funds could be far divorced from the actual expenditures. Uh further uh I sort of lost my thread on something, but um
I've been worried.
I think that that that's the gist of it.
Okay. Uh, it's been a while since I've done a money laundering case, but my recollection was that um there had to be explicit proof that the unlawful act uh was separate from the actual final transaction, and that the movement of the money wasn't done to complete the act of the the the unlawful contribution that there had to be then steps taken beyond that to conceal the funds. Is that your understanding?
Yes, so there needs to be the unlawful activity and then the proceeds of that steps have to be taken to conceal that. The steps here were creating these organizations, creating progressive people, transferring the funds uh from one account to the other, and then having uh the uh items paid through that. The other evidence of the awareness of that includes the documents that were flowing. There was uh generated were these solicitation letters from Truth and Justice to progressive people asking for the funds at the request. It was the uh it was uh there's testimony that it was her husband's idea, but he did deny that uh to create these letters where Truth and Justice requests the funds to sort of create a a paper trail making it seem like these are contributions towards what they were styling as a get out the vote operation, but no such operation has been evidenced.
Diff different question. So there ha as my recollection is that there has to be a distinction between the completion of the unlawful act, which I think you said was the sending of the money, so that it the from Petro Gas to pay the campaign vendors ultimately.
The solicitation and acceptance of a corporate contribution is an unlawful act.
Right.
However, the money laundering statute uh i is a little narrower than that. and the specified unlawful crime that can be captured under that. It more traditionally includes things like fraud. The investigative subcommittee did not go so far as to charge her with fraud here. This is an area where I think you need to recognize the subcommittee's role here to determine whether she was, not necessar- regardless of whether she was in violation of the money laundering statute by uh beyond a reasonable doubt as the Department of Justice may have to prove, she was not upholding the laws of the United States and was a party to their evasion, through her involvement in this scheme.
Well, no, there's there there are two separate pieces to what you'd have to show to prove money laundering one is that there was a the unlawful transfer right and so that would be the movement of the money from PetroGas Haiti ultimately to the campaign vendors and then the second piece is there were steps taken to conceal the the the transaction itself.
Yes, and
So for example, like in a fraud, you know, the movement of the money from I was taking from a w I mean, let's say it's a credit card fraud, and the person takes the money, and then deposits the money in his bank account, that's not money laundering, 'cause it's not an attempt to conceal.
Yes. Yes, she was
If you then did something to move it away so that it couldn't be seen, that would be the attempt to conceal.
Yeah.
So what I'm trying to narrow down for you, just to make sure I understand what your argument is on this, Is this the separate attempt to conceal separate from the unlawful movement of the money to pay the campaign vendors.
Yes, so there's the unlawful movement of the money that is the separate is the attempt to conceal but the unlawful act is a solicitation and acceptance of a corporate contribution uh the money laundering aspect is a little bit charged.
That's not what you said earlier. What you said earlier was the unlawful act was taking the money from a foreign contributor.
Which is Petrogas Haiti. Not, no, a a corporation, not a foreign contributor. I wanna be very careful, clear. OK. The committee has not, it is not suggesting that it has the evidence to show that she knew that Petrogas Haiti got all its money from the Haitian government, but that she did have reason to know that Petrogas Haiti was a corporation who could not donate to her campaign. OK. So it was solicitation and acceptance of an improper campaign contribution. My point about the Code of Ethics charge is that you don't need to procedurally find that the the criminal law of money laundering has been proven by a reasonable doubt under those standards. She has been charged with uh failing to uphold the money laundering laws and being a party to their evasion.
Under the
Code of Ethics of Government Service. This isn't it's we're not the Department of Justice.
OK. So that that part of the my recollection at least of of the money laundering proof is not applicable here? So we can we can say there's a money laundering violation, but not meet the elements of money laundering?
I think if you felt that she was not upholding the money laundering laws and was a part of the evasion that is within your discretion. I'm not saying I don't think the elements of the money laundering charge were brought, but I do think it is a uh a lesser standard than proving a crime. That is not what we are here to do today.
All right. Uh, council, uh want your your thoughts on the
I mean the committee hasn't offered any evidence that that she had any knowledge of this.
Uh laundering it.
What they've done is is put up a a a a highly prejudicial false flow sheet here saying that twelve and a half million dollars came from the Haitian government. If I heard correctly they're saying that they they're they're not able to prove that up that the money came from the haitian government or that they're not able to do that at this time and if that's true then that shouldn't be on this flow sheet they shouldn't be trying to paint her with something that they can't prove number one and number two it sounds like their only evidence that she had any knowledge of any of this is that she attended a fundraiser or something with some individuals from Petro-gas the day before this happened. That's their proof? That she was aware of it? That she decided, that she made a conscious decision not to enforce the, not to support the money laundering laws in the United States?
This on that point, wha is there which paragraph in the complaint, or paragraphs, go to the knowledge issue with respect to the campaign fundraising meeting with uh Petro Gas Haiti.
Um so One moment. The so the motion for summary judgment discusses it on pages fifteen to sixteen. The statement of alleged violation lays out all of the evidence relating to the scheme, which
Well
uh uh I'm just a moment.
if if you go to count sixteen you reference um previous paragraphs
Mm-hmm.
uh you know 'cause the ones under count sixteen third paragraphs three seventy eight through three eighty one are summary paragraphs and I'm not saying there's anything wrong with that but they're not making factual allegations that's that go to the issue of the uh campaign finance event with Petrobras Haiti where would that be discussed
So the evidence I discussed that was considered in arriving at this conclusion regarding the timing of the payments, the complexity of the scheme, the individuals involved, including her husband, uh and there's also details about what was uh, you know, said on some of the checks at issue. Uh they range from paragraphs approximately one sixty through one eighty. Uh and they include what I've been discussing here today.
One sixty to one eighty?
Yes, that that lays out the scheme as presented.
Where does it reference oh there it is, let's see that's one seventy nine, one seventy eight. One seventy six, is that where the first reference is, Petrobras Haiti?
Uh, I well while I think there are earlier references, that is the first reference to where it appears in this particular discussion of the scheme.
Well, that's the first point where it says they got the money from
Yes, so after laying out how progressive people operated,
Your government of Haiti.
it begins to talk about where they got all their money from.
And and where does it reference the Congresswoman?
the Congresswoman who's referred to as Respondent throughout here, uh is referenced indeed at uh paragraphs one seventy eight uh when she met with the Petrigez uh Haiti owner. And then other than that, she's mostly referenced in terms of her connection to the individuals involved. There's also some references to her campaign throughout.
Okay. So the the company hosted a reception for her And she met personally with the owner of the corporation and his wife I never heard of it. prior to the reception for a meet and greet organized by Mister Joseph. And then after she got elected to Congress, the son of this owner was h became an intern for her.
Oh yeah. Yes.
Is that
Yes.
All right. So this was a a meet and greet.
That's what it was styled as on the calendar entry. We have not been able to receive any testimony from her or anyone who was present at that.
Okay. So, well, it wasn't a camp, was it a fundraiser or not?
Uh, exhibit eight to the motion for summary judgment includes details about it. It's referred to as a petro-reception, um, organized by her leadership pack. uh treasurer shortly before a Holland and Knight reception. So I I apologize if I mistook the misspoke. The word fundraiser does not appear in that particular instance. However, she did receive uh the Holland and Knight event is also referred to as a reception, and she did indeed receive a campaign contribution from Holland and Knight around that time through lawful channels.
From who?
Holland and Knights PAC.
From who?
From Holland and Knights PAC, a typical PAC contribution.
Holland and Knight?
Holland and Knight, the law firm, so in exhibit eight,
Law firm.
the same day, there's two things called a reception, the Petrogas reception and the Holland and Knight reception. Holland and Knight made a lawful campaign contribution through their PAC around that time. There is no lawful campaign contribution from Petrogas Haiti around that time, but there is the flow of funds into the organization controlled by her husband.
Okay, so the Holland and Knight contribution, do they represent Petrogas Haiti or no?
No, I believe these were two completely separate events on the same day. One was at twelve PM at a restaurant, and then the holiday night reception was later that day at five thirty PM.
Oh, okay. All right. Um and then with respect to the false statements, um count seventeen. And I appreciate the time, Mister Chair. Where is that? Let's see, that's Paragraphs three eighty-two through three eighty-six of the statement. The SAV.
Yes, that's where the that's where the charge appears.
Right. So, and you were saying that there's a a knowledge and intent requirement of for this one?
Yes, the investigative subcommittee determined it was appropriate to bring a uh false statements charge for really the sum of the campaign misconduct that was talked about before in some ways because the much of what we've been discussing led to false reports, but in in in the charges but specifically discussed is the continued false assertions with respect to her loans uh and there is detail in the SAV about how uh despite efforts by when she hired a professional consulting firm after she got to Congress in twenty twenty three, efforts by them to get access to some past bank accounts they never were able to and they never were able to audit and correct the errors from prior to when they took over the loans continue to appear on your campaign finance filings each quarter until they are fully paid off uh so that is the, one of the the main basis for that charge. I do think uh the investigative subcommittee felt that uh there was sufficient evidence as a general matter that she uh had the sufficient mens rea to have been a party to the uh misstatements in her FEC filings, the intentional misstatements, and I I would point to that straw donor scheme and the reporting of the contribution is coming from one individual when in fact she knew it came from another, as yet another example of that.
Alright, so when you say, and this is in paragraph three eighty four, numerous FEC reports,
That's the sixty reports that have been talked about a few times.
The how many?
The sixty reports that have come up a few times.
Okay. So all of those are well, is the allegation of false statement connected to specific of those sixty? Or the some combination of them?
All
How
All of them. When your campaign takes on debt, there is a section of your FEC reports where you have to continue to report each debt, each the debt each quarter, uh including noting what repayments you have made and and what it was from, so. Every quarter since she began reporting making loans to her committee, she continued to report that debt uh in a manner that was that was false.
Come report which debt?
The the debt relating to her personal loans, there are inaccuracies laid out and discussed already with respect to how her personal loans were reported. They do not match her actual finances, including after she brought on a uh a uh established compliance firm and despite their efforts they were uh unable to get access to the older bank accounts there was some testimony about how perhaps there was some bank error that uh made them have to close those accounts just before the professionals got on board but in any event uh she has never at any point corrected the numerous errors in her campaign finance reports uh including to this day.
Alright. when you say the numerous errors,
She has about twenty different loans.
is it
And and she reports repayments on those loans. And so it's laid out in the SAV, many of those loans are not correctly reported, whether by the source, the amount, the date, many of the repayments have not been accurately reported. The the loans are are not accurately described in her FAC records.
All right, and and that contru continued into the period when she retained or hired um professional staff to Handle these documents and filings?
Yes, continues to this day.
Is that right?
She still must report all outstanding debt and the repayments made on it.
So the evidence that it was intentional, especially given that, that it's continues now is what?
With that it's her her that she's saying that she herself made personal loans to her campaign. The investigative subcommittee uh feels that it is clear that she has every reason to know whether she did or did not actually give or get
Ok, ok, so you're you're right,
Yeah. Yeah.
basically your point is your position is that we should infer That this, that she knows it was false.
Of course.
That, okay.
We d we don't have a um a document where she says, I know these FAC records are false. We do have documents where she is involved in discussing things relating to her loans, um that she knew for example, there's the document we looked at earlier about the um I'm reporting uh that that was she was not on that document. There was the document she was on about how I'm putting this into leverage and her her uh um campaign Consultant says, well no one needs to know that. And then there were the documents that we have, she's I will grant that she's not on it, but there is the document between individual one and Nadege, in which they discussed that they're going to be reporting more than a million dollars, uh and then we laid out previously in our presentation how they did indeed report contributing more than a million dollars in loans, but actually at that time there had not been a contribution of any kind, and then shortly after that there was a contribution of only four hundred thousand dollars and she didn't amend her FEC reports to reflect that until uh the FEC noted an issue with the cash on hand and in that message Nadege says to individual one oh we're gonna be reporting less than our primary opponent we only have twenty seven thousand dollars in the bank account which hey she had twenty seven thousand dollars in the bank account not the more than a million dollars in campaign loans that were reported.
All right, so which paragraphs uh in the SAV relate to Paragraph one four.
One moment. It's also slide um
Mister Ivey, not trying to limit your questions, but if you could wrap it up here shortly for the remaining members to ask their questions.
Fair enough, fair enough. I'll I'll stop after this one.
Uh, Mister Ivey, I w also wanted to clarify with respect to the false statements and the loans, uh, it also relates to loans that were reported as personal loans of the candidate, but were actually, for example,
Uh, alright, and is that in the paragraphs that you co-counsel referenced a minute ago, or is that in a different
Mm. Mm.
I will let her respond.
Okay.
I can't point to the exact paragraphs for now. All of this information is indeed in the statement of alleged violation, which sort of chronologically lays out her campaign finances with respect to what we were discussing um
All right. I I and and and this
Right.
Yeah.
recognizing the time and I apologize for running so long, but I did wanna give counsel a chance to respond before I yielded back, so please.
Well I I I I I just think it's important to recognize that that there's still no evidence before the committee that the Congresswoman had direct knowledge of any of this number one. And number two, a as far as the making a false continuing to make false uh financial disclosures, all of that is based going back to the premise that she wasn't entitled to the money from Trinity. She's allowed to make loans to her own campaign. There's no question that that's a permissible thing for a member to do. And it is our position that that's exactly what she was doing. The the rest of these arguments are all based on a theory that is not proven. And that theory is that somehow the money from Trinity is tainted and therefore every document every financial report that's filed every financial disclosure that's made we can say it's sixty one we can say it's six hundred and twenty, it doesn't matter it's all based on this idea that just because it it flowed from trinity it is de facto tainted. And and frankly there's not enough evidence before the committee for the committee to accept that as real. That's that's along the same level of persuasiveness as saying well she had a meet and greet with this somebody from Petrobras so that means she knows that Petrobras went into an illicit agreement with someone else to transfer funds to transfer funds to another corporation to then support her campaign, even though there's absolutely no nevid evidence that she had any knowledge of that.
Alright, I I yield I thank you and I yield back.
Gentleman who yields the chair recognizes Judd Moran.
Thank you, Mr. Chairman. Uh very briefly, just wanna make two uh clarifications for the record. Uh, Mister Barzee throughout today's uh hearing has said on multiple occasions when he referenced the statement of alleged violations, that this is quote " staff's opinions". He's made that comment and used that phrase several times. Just wanna point out to everybody watching, remind the folks on this dais that these are not staff's opinions, these are the findings of an investigative subcommittee made up of members of Congress, after several years of investigation. That's point one. Point two, think Mr. Barzee uh summarized best, probably better than any of us today, uh the totality of the response and the evidence that he's presenting today, and he said quote, "I'm explaining it best I can third-hand." triple hearsay, I will remind everyone on this dais. Triple hearsay testimony by legal counsel is not and has never been credible controverting evidence in a summary judgment hearing before this body, or any other judicial body to my knowledge. And though he has made artful uh attempts to uh to take us down several different paths, in my opinion I see no evidence presented that would controvert the evidence presented by council uh for the uh uh for the adjudicary uh s subcommittee. So just wanna make sure that those comments were made on the record uh before I wrapped up my time. I yield back.
Jim, I yield back. Chair recognizes Miss Garcia.
I don't have any further questions.
Chair recognizes Mister Nye.
Yeah, just briefly, and I wanna echo some of the sentiments that um given this hour, I too find it hard to to maintain a level of credibility from the respondent. Uh, counsel, you've stated that she was ordered not to participate in this investigation. That that was that was uh justification for her not taking part for roughly two two and a half years. You've also made the claim that she was actively participating, giving thousands of do- thousands of of pages and so on and so forth. Um, you know, and and while she refused every step up until this point to engage with staff, to respond to subpoenas, to produce and explain uh canceling interviews with no explanation. Now you're saying you want the full court press, you want witnesses, you wanna have your own subpoenas, you want to put the full weight and vigor behind the defense for this hearing. It's it's it's it's both sides of the coin over and over and over. You know, we have allowed you extra time. We've received motions after deadlines. We've tried to be as courteous as we possibly can. And I appreciate the difficulty, but this is in no way a rushed process at all. And then fifthly, basically the thread of defense that I have heard is that there's no evidence of knowledge. She was not aware, she did not know, there's no statement pointing to, there's no admission from her. But when you add up all the things that she did not know, it absolutely flies in the face of common sense. She didn't know uh about the finances of the family business even though she was the CEO. She didn't know about the five million dollar overpayment from the state of Florida. She didn't know where all the money from the consulting firms, the Truth and Justice uh network, the Petrogas Haiti, progressive people, et cetera. All of that was outside of her information. And when my colleague across the dais here asked you about text messages that show, despite your argument, she was integrally involved in this from her own phone, from her own correspondence. The max is two checks of two thousand nine hundred dollars. That is why sister had to give money to Najaj for her to make another donation, another text message. The goal is two million, at least one point five million. Hector Roos responds, " I suggest you move funds into the campaign account sooner rather than waiting This is the one chance to post a big number. Respondent, I am not planning on using that amount, just leveraging. I think that's a good idea. Response, indeed, but no one has to know that. At some point, and your response to him was, we gotta get the full context. You and I both know that sometimes evidence speaks for itself. And that at a minimum says that she was integrally involved in the money moving around these various entities and people into her campaign, her campaign balance. There was knowledge on her behalf far beyond what you have represented to this committee. And given all that we've heard, for all the reasons I just stated again, I don't think it's been a very credible presentation to say there's material issues here.
Uh I I I appreciate your Congressman, I don't think there's any conflict whatsoever in saying that she has thoroughly cooperated with the committee in this way. And if I can explain to you what I mean
Well, the fact that she had to explain it indicates that she hasn't cooperated.
Well No, that's not true. She's turned over thousands of documents.
That is true.
She hasn't ignored the committee. She's had attorneys contacting the committee, contacting discussing these issues with staff, I would understand if she if she just refused to discuss anything with the committee. If she didn't show up for for this hearing, I could understand you taking that position. The reason that she's had the difficulty that she's had is because her criminal defense attorney before me, before me, came in and overrode the attorneys that were dealing with the committee and said, can't turn these things over." Their hair was on fire because they're Criminal Defense attorneys and the idea of their client turning over documents when they don't have to in the criminal world was it was was absurd to them so they said,
Mm.
no, don't do that, don't talk to the committee, don't turn anything over. So I understand you can blame her for that, but please understand what you're doing is is holding her exercise of her fifth amendment right against her, if you blame her for that. Because the only reason she didn't turn over those documents, the only reason she didn't sit for the interview, was because she was advised not to turn over the documents and not to sit for the interview by her criminal defense attorney who overrode the advice that her attorneys before this committee were recommending to her. But a lack of candor when when she's doing when she has gone out and spent money to hire attorneys to handle these discovery issues and the attorneys are in communication with staff I understand it didn't go the way staff wanted, I get it.
It's not staff.
I or or the committee then, I understand it didn't go the way that the committee would have preferred. It didn't go the way that I would have preferred. If I was the attorney it would have gone differently. But don't hold that against her because her criminal defense attorney advises her
Not.
to invoke the fifth amendment and to not testify and to not turn over certain documents. Because that's what criminal defense attorneys do every single day. And you know that as well as I do.
I do, but I've reminded you, we're not charging her with crimes. And for you to say that there has only been efforts to to discuss this with counsel, or that she has said, I can't talk because my counsel has said This is the first time we've heard this as explicitly as it as it has been relayed. So again, I'm not buying it. And I have see I have seen the record, I've talked to staff, I've talked to the investigative subcommittee, there has absolutely not been a retreat on the advice of counsel. There has been a refusal to engage on any level. And that's where the credibility is falling apart. And I don't wanna get into this any more any more than we have to, but taking it in full it's tiring to keep up with the with the vein
i i understand congressman and i appreciate your your patience uh that that you've exhibited thus far definitely with me by the way that this committee has had with me i appreciate it i appreciate the extension of the time limits that you've given me i think the committee has been very fair with me but that being said let me bring the lawyer in let me bring in her former criminal defense attorney who insisted that she not speak to this committee. Let me bring in the attorneys who recommended to her not to turn over the documents. I understand it strains credibility. Let me prove it to you. I can. I can call these lawyers in. We can call in her former counsel and have them explain why they didn't turn over doc
You're making you're you're you're imb you're making the point I just made. There's been total refusal up until this point, and now we want a full court press.
Well
That time is past, Mister Chairman, I yield back.
Chairman yields, Mister Subramaniam, yeah, we will allow you to wrap up questioning.
Uh, thank you, Mister Chair. Um, counsel for the committee, could you explain uh to us sort of the burden of proof that needs to be met um for um I guess to to meet the the counts that we're looking at?
Yeah, so under the rules that the committee has set for itself, Uh it has to determine whether there is clear and convincing evidence of the violations that have been charged by the investigative subcommittee. Uh that essentially means uh is it highly probable? Uh it is something less than reasonable doubt but more than substan less than beyond a reasonable doubt but more than substantial reason to believe.
And so uh and under that instance circumstantial evidence would point to that. or uh evidence that would um maybe not be directly speaking to it but would be sort of um speaking around it, wou that would be enough?
If it's convincing, uh then absolutely.
And uh counsel for the defendant uh do you understand that to be the burden of proof we need to meet here?
I didn't catch your answer, was it clear and convincing? Was the burden and proof that you
Do you wanna tell them again what what your um what the burden is?
Yeah. Yeah, clear and convincing.
Clear and convincing.
I I I do. That's the same burden, for example, that a state has when they have a case over uh termination of parental rights, and they wanna take uh children away from parents that have been abusive. That kind of a case has to be proven by clear and convincing evidence. My point being that it is an extremely high standard. clear and convincing evidence. That's not the only standard that's before this committee though. The first question is whether or not there are material facts in dispute,
Yeah, so I'm gonna I'm gonna get to that.
because
So then for counsel for the uh committee, uh this is a summary judgment hearing, so could you explain um what what our burden is there to when it comes to summary judgment?
Yes, so the rules that the committee has adopted for itself uh borrow this phrase from civil procedure, that there is the option to make a determination that there is no material fact at issue. Uh it's similar to summary judgment in the civil process in that it is uh a question of whether there is a dispute about the material facts. Committee counsel made that motion uh based on the record before it and the responses that it has received had received up to that point from uh the respondent some new last second efforts have been made to introduce some uh disputes of facts and I think it is within the discretion of this uh adjudicatory subcommittee to determine whether those are the material issue whether there's a material issues of fact that uh interfere with its ability to determine whether the evidence is sufficiently clear and convincing at this time.
And and is that your understanding of summary judgment?
i wanna clarify something if i may and that is that the rule the committee's rule indicates that prior to deciding an issue like this on summary judgment you must determine that there is no material fact at issue so before you can even take a vote according to your own rule before you can even take a vote on whether or not to grant summary judgment, uh you have to decide are there any any material facts at issue. And if there is one material fact at issue, you cannot be voting for summary judgment. You have to allow it to go to an adjudicated toy hearing, so that we would have an opportunity to call witnesses, to cross-examine witnesses, and to have the truth come out as to what that material difference is. But right now, there are lots of material facts that are in dispute. A lot of them. And so there is no real avenue here for this committee to grant summary judgment based on rule twenty-three O, which clearly states, if the adjudicated adjudicatory subcommittee finds that there is no material fact at issue, Then you go on to the burden of proof. But before you get to the burden of proof, which is a very, very high burden, before you get there you have to determine that there is no material fact in dispute. And I'm telling you right now on behalf of the Congresswoman, we dispute these facts.
Uh, and count.
And we would ask for an opportunity to have them heard in public through cross-examination and the calling of witnesses.
Uh you are aware that you could have called witnesses today, right?
I I yes.
Okay, I have a lot of action.
Yes, I I've I've had this matter on my desk,
Okay.
sir, for twenty-one days. I mean, in order to really prepare for this, I would have needed a little bit more time. I'm doing the best with the amount of time that I have, uh, but we're not prepared to call witnesses at this time. We wanna have our witnesses heard at the adjudicatory hearing. not at a motion practice where there's a question of summary judgment. Because from my understanding, all we have to do is raise that there is a material dispute over a fact. And once we do that, then we would be entitled to call witnesses, we'd be entitled to having an adjudicatory hearing, which is what happens every single day in courtrooms all over the United States. That's all I'm asking for, is an opportunity to cross-examine these witnesses, to put on our own witnesses and to have a full hearing so
Yes, yes.
everyone knows what all these facts are rather than guessing.
I understand. Thank you. And and counsel for the for the committee, um, you've learned some new facts here today or s or learned some new disputes to facts today. Did you consider any of the facts you learned or the disputes you learned material, uh, to the findings that you made coming into today's hearing?
I don't think any of them are sufficiently material to make any of the counts charged, not proved by clearing convincing evidence. I think that there, you know, we discussed what underlies each of the charges. This is a set of conservative charges where in many cases multiple violations are sort of consolidated among individual charges. And I don't think anything I've heard today changes any of the conclusions that the investigative subcommittee arrived at, uh
I'll yield back.
Nnn, I'll also just add that very little actual evidence has been introduced today. There were a few documents attached and something up some chart, but there's also just been a lot of representations from council. We still don't have any testimony under oath from the congresswoman.
Gentleman yields back, uh time for member questioning has concluded, uh each side will now be given five minutes to make a closing statement or closing argument. Uh council, committee for the council will go first.
Members of the adjudicatory subcommittee, under rules of the house and committee, you procedurally have the discretion to decide whether you have sufficient evidence to rule today on whether the statement of alleged violation charges are proved by clear and convincing evidence. I submit to you that you do. The material facts alleged in the statement of alleged violations are amply supported by the record. As discussed in committee counsel's papers and during this hearing today, the material facts supporting the charges rely in large part on bank records, which are incontrovertible documents that speak for themselves. These facts are further supported by contemporaneous communications and records, as well as by testimony obtained by the investigative subcommittee. Respondent has argued today that the profit sharing agreement predated the special election and overpayment that Trinity received. This is true. What is also true, as demonstrated by exhibit two to the committee's motion for summary judgment, is that respondent had decided to run for Congress in January of twenty twenty one, before the COVID-nineteen contract with Trinity was signed. Uh, respondent has also or rather, respondent's counsel has also referred to the five million dollars being the windfall. But the windfall was the COVID contract in its entirety. The record establishes that there was a scheme to impermissibly funnel Trinity's money to respond in special election campaign via both direct transactions, and using various conduits. In doing so, respondent violated numerous campaign finance laws, including the prohibitions on accepting cor- corporate contributions, limits on the amount of contributions, and requirements that contributions be accurately reported. The sheer amount of pass-through bank accounts and entities involved demonstrates that she knew that this was wrong and wanted to obfuscate the true source of the funds. Notably, unlike the indictment, the charges and the statement of alleged violations do not require this subcommittee to make a finding regarding whether Trinity had a legal right to all of the funds that it received from the state of Florida in relation to the COVID-nineteen contract. Rather, the most pertinent question with respect to Trinity's funds is whether millions of dollars of those could lawfully be transferred to Respondent's campaign, either directly from Trinity, from her family members, or from LLCs and bank accounts she owned or co-owned with her brother. The answer to that question is that they could not. Part of the part of that inquiry is a related question of whether Respondent had a right to all the Trinity funds she received. The record makes clear she did not. Moreover, in order to cover up the scheme and support her independently wealthy campaign persona, Respondent and her campaign filed inaccurate reports with both the FEC and the House. In one of the more egregious instances involving her twenty twenty-one candidate financial disclosure report, the record indicates that respondent weighed the risks, and then purposefully delayed filing her report until after she won the highly competitive primary, denying her constituents the ability to evaluate her public representations about the source of her wealth. Respondent's twenty twenty-two re-election campaign likewise relied on a clandestine and improper funding scheme. This time, hundreds of thousands of dollars from Petrogas, Haiti were channeled through a newly formed company, run in part by Respondent's husband, which in turn passed most of its money on to another company, described by its director as effectively a fund created to facilitate Respondent's campaign, and which was run in part by her campaign consultant, which then, predictably, spent the money in support of Respondent's campaign. The campaign finance related counts of the statement of alleged violations range from systemic reporting violations to very serious charges of campaign finance misconduct. The investigative subcommittee did not charge every last campaign finance misstep in a freshman congressional campaign but instead focused on the clearest violations of unambiguous laws and standards of conduct. Respondent's misconduct was not limited to her campaigns, however. After becoming a member, respondent accepted voluntary services for official work from a campaign advisor, including for French communications. She also provided special favors and privileges in connection with community project funding requests. Finally, respondent repeatedly displayed a lack of candor and diligence throughout the investigative subcommittee's investigation, insisting she wanted to cooperate but consistently failing to do so after November, twenty twenty four. Respondent has put forth insufficient arguments today as to why the facts alleged in the statement of alleged violations which are supported by the record, are at issue or do not sufficiently make
Thank you.
Closing.
Closing on behalf of the responded.
The greatest material fact in dispute right now is apparently whether or not she was entitled to the money that she received from Trinity. If I heard correctly, the argument from staff is that she wasn't entitled to that money and we haven't proven that she was entitled to that money from Trinity. Trinity was a family corporation that's been in business for over thirty years. Her father was had covid, they thought he was dying from covid, and the family sat down and talked about how to divide up the quote unquote profits of Trinity. We introduced a document that I said was evidence of the existence of a profit sharing agreement. I understand it is not your typical profit sharing agreement that you would see if you owned a corporation and had lawyers handling these things for you. But that doesn't mean it's not true. It doesn't mean that in the Haitian American community, family members don't put things in writing like that, they shake hands and they trust each other. But it's definitely evidence of one thing, and it's evidence that there is a very serious dispute here over the facts of the case. And whether or not the money from Trinity was was was entitled to go to her, whether or not the Congresswoman was entitled to that money or not, well that's the underpinning for all of these allegations that are And what you have now is you ha you have a piece of evidence that members suggested may be exculpatory that I've presented before the committee that's in front of you now that completely contradicts staff's argument that she wasn't entitled to the money. Well if that's not a material dispute, I don't know what is. And so how can this committee be asked to just decide this before we get to the bottom of it? What I suggest is that we talk to the witnesses, we place them under oath in front of everybody, we put a TV camera on them, and we ask them questions. And then we'll know what happened with the money from Trinity. And we'll know why the money from Trinity went into these different corporations. Because the evidence will show, if we have a hearing that the work was done. That Trinity went out and helped tens of thousands of people get vaccinated who wouldn't otherwise be vaccinated. And yeah, the Congresswoman made a lot of mistakes on a lot of financial disclosure forms. There's no question about that. But the same mistake that they're suggesting she made over sixty-one times is misreporting her loans. And that's all based on their theory that she's not entitled to the Trinity money. And that is a factual dispute that we will dispute till the end of time, because she was entitled to it. And the reason she was entitled to that money from Trinity is because her family said, you know what, Shirley, we're gonna give you half of this money. And that was a decision that was made by her family. And if we need to bring the family members in to prove that to committee, we're happy to do so. And if we're, if we need to bring people in who receive the services from Trinity, who got lifesaving vaccinations, who wouldn't have gotten them but for the work of the Congresswoman in her community we'll do that as well. But to suggest that there's no material fact and you can just decide to to throw a woman out of Congress who was duly elected by her constituents, because of bank records quote unquote, well that's not enough. If i i i if you wanna sanction her, if you wanna ask the house to sanction her, if you wanna move into a a a different hearing where you consider a sanction, before you get there, make sure that these procedures are followed meticulously. And if it says that there is no summary judgment unless there are no material facts at issue, I would suggest to you that all this time we spent today proves one thing, and that is we disagree on the facts. And if we have a serious disagreement on the facts, if we have a serious disagreement over whether or not the Congresswoman was entitled to every penny she received from Trinity, well then let's have a hearing. Let's call some witnesses, and let's get it all out in the open and be transparent about it, rather than deciding it based on conjecture, circumstantial evidence, hunches, and bank records. Thank you, your honor.
I wanna thank council for both sides for their participation uh in the hearing uh this evening. Uh I wanna thank you for your argument for your um responses to questions on behalf of members of the adjudicatory subcommittee. At this time the subcommittee will adjourn, we will move into executive session, uh we will meet to deliberate the motion for summary judgment. Uh when a decision has been reached uh we will announce it through a public statement uh released by the committee. Uh and so with that uh this uh hearing is adjourned.
Mm. Okay.
Yeah, as far as she was in right. Nah, I just wanna make sure, since Mm. Yeah, we're we're incorporating the names. Mm-hmm. I see. Yeah. Well. But there were reasons why mom didn't want to do that. I mean, well, we could have. Um
She's not listening.
Yeah, I think everybody, the uh the last question is in a different I don't think she could Well, listen, you can't No. I don't have a reason for that. thing. We can listen to them. We can listen to them.
That was in twenty sixteen when I first started.
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