Watchdog files Justice complaint against Rep. Mike Ross

An ethics watchdog group has filed a complaint with the Justice Department against Rep. Mike Ross (D-Ark.).

Citizens for Responsibility and Ethics in Washington (CREW) asked the Justice Department to investigate whether Ross engaged in bribery and honest services fraud by selling a commercial property for more than its worth to a pharmacy chain with an interest in pending legislation.

A recent ProPublica.com story chronicled Ross’s sale of Holly’s Health Mart in Prescott, Ark. to USA Drug for $420,000. The article also alleged that the owner of USA Drug, Stephen LaFrance, paid Ross and his wife, Holly, between $500,000 and $1 million worth of assets, and that Holly Ross was paid between $100,000 and $250,000 for signing a covenant not to compete with Super D Drug Acquisition as part of the sale. In addition, at least two weeks after the sale, Rep. Ross received a $2,300 campaign contribution from LaFrance.

At the time of the sale, the county assessor’s office valued the pharmacy building and land on which it sits at $263,000, $157,000 less than the Rosses were paid.

The story went on to say that USA Drug was the 15th largest drug chain in the country in 2008 and is actively lobbying Congress on health care reform legislation.

Ross is an active member of the Energy and Commerce Committee and the Blue Dog Coalition and has been integrally involved in the debate over health care reform.

“Given that Rep. Ross received a personal financial benefit conservatively valued at no less than $143,850 and probably a great deal more, both the sale of the property for $420,000 and payment of no less than $100,001 for the covenant not to compete certainly merit criminal investigation,” CREW executive director Melanie Sloan said in a statement.

Ross’s office did not immediately return a call seeking comment, though he earlier slammed "leftist" outlets for promoting the story.