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Throughout the 26-page indictment of Rep. Rick Renzi (R-Ariz.) and his business associates, federal prosecutors allege that the lawmaker made a series of legislative promises in exchange for proposed land deals.
But unlike the cases of former Reps. Bob Ney (R-Ohio) and Randy “Duke” Cunningham (R-Calif.), the legislative smoking gun is not as clear in the Renzi case.
In its indictment of Renzi, prosecutors allege that in April 2005, Renzi told so-called “Company A” (identified as Resolution Copper in many media reports) that unless it bought land from Renzi business partner James Sandlin, he would not sponsor a land exchange bill that Resolution Copper wanted.
“No Sandlin Property, no bill,” Renzi allegedly said.
The indictment indicates that the Renzi-Sandlin scheme was for Resolution Copper to buy the land from Sandlin and then offer the federal government that land as well as other real estate. In exchange, the government would give Resolution Copper federally owned forestland in Arizona so Resolution Copper could mine it. Sen. Jon Kyl (R-Ariz.) has said the area “may be one of the largest deposits of copper ore ever discovered in North America.”
Resolution Copper did not buy Sandlin’s land, claiming in a statement last week that it became aware that Renzi and Sandlin had a business relationship that made it feel “uncomfortable.”
Yet roughly six weeks after he allegedly made the “no bill” threat, Renzi introduced the bill that Resolution Copper had been lobbying for. At the time, Renzi touted the legislation in a press release and in a speech on the House floor. Others in the Arizona delegation cosponsored that measure while Kyl and John McCain (R-Ariz.) backed a companion bill in the upper chamber.
The indictment stipulates the only wrongdoing on the legislation was done by Renzi and his business partners.
After the land exchange bill became ensnared in local controversies in Arizona ranging from environmental concerns to rock climbing to acorn gathering, Renzi refined it and introduced a new version in December 2006. Renzi specifically mentioned Resolution Copper in his 2005 and 2006 floor statements on the legislation, pointing out how the firm was flexible to addressing local concerns.
After Resolution Copper refused to buy the Sandlin land, Ranzi and Sandlin went to “Investment Group B” (widely reported to be the Petrified Forest group), according to the indictment. Sandlin owed Renzi hundreds of thousands of dollars, which the two men did not reveal to Resolution Copper or to the Petrified Forest group, it stated.
Petrified Forest group subsequently bought Sandlin’s land for millions of dollars, seeking to secure a separate land exchange deal that would need congressional approval.
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