Renzi faced cash squeeze
By Alexander Bolton
May 02, 2007
Rep. Rick Renzi (R-Ariz.) took out a $500,000 second mortgage on his Flagstaff home in January after paying more than $300,000 in tax arrears discovered by a Federal Election Commission (FEC) investigation.
The mortgage loan, revealed by Renzi in a document filed with Coconino County, Ariz., is worth the highest possible listed value of his house, and suggests the embattled lawmaker may have faced a substantial cash squeeze at the end of the last Congress.
It may also cast light on $200,000 that came to Renzi two years ago from a business partner. The money exchange has raised eyebrows and suggestions of impropriety.
Around the time Renzi accepted the payment, the FEC launched an investigation of his campaign finances, forcing the lawmaker and his wife to pay an extra $324,000 in federal and state taxes.
The FEC launched its investigation in May 2005 and informed two businesses linked to Renzi of the probe later that month. That same month, James Sandlin, a former business partner, gave Renzi $200,000, a payment now being investigated by the FBI, according to The Wall Street Journal.
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