The owner of a now-closed lobbying firm that represented defense clients was arrested Thursday on charges of making hundreds of thousands of dollars in illegal campaign contributions.
The charges against Paul Magliocchetti, brought in federal court in Alexandria, Va., included making false statements to the Federal Election Commission.
Magliocchetti's PMA Group Inc. in Washington's Virginia suburbs was shuttered last year after the FBI raided its offices. The Justice Department and House investigative committees conducted separate investigations of the PMA donations, but no action has been taken against lawmakers.
The federal indictment unsealed Thursday said Magliocchetti orchestrated the scheme to enrich himself and his firm by increasing PMA's influence, power and prestige among clients and elected officials.
The federal campaign organizations that received these funds were unaware of Magliocchetti's alleged scheme, the indictment said.
The Federal Election Campaign Act limits the amounts individuals can contribute to campaigns and political campaign committees. It prohibits corporations from making contributions, either directly or through officers of the corporation.
To evade the limits on individual contributions and the outright ban on corporate donations, the indictment alleges, Magliocchetti caused straw donors to make contributions to scores of federal campaign committees.
Local
Washington, D.C., Maryland and Virginia local news, events and information
The money actually came from Magliocchetti or PMA, rather than the named donor. The people masquerading as donors either received the money in advance or were reimbursed by Magliocchetti, the indictment said.
The Office of Congressional Ethics, an investigative panel of non-lawmakers created by Congress, turned over evidence to the Justice Department on PMA-related contributions earlier this year.
The Justice Department has investigated members of the House Appropriations defense subcommittee who received a flood of campaign money over the years from the lobbying firm and its defense contractor clients. The subcommittee had been chaired by Rep. John Murtha, D-Pa., who died in February.
The House ethics committee has already concluded that lawmakers who received PMA money did not violate any congressional standards of conduct.
The 11-count indictment charged Magliocchetti with four counts of making illegal campaign contributions in the name of another; four counts of making illegal campaign contributions from a corporation; and three counts of causing federal campaigns to unwittingly make false statements in their public reports.
Fan, Follow and Text: Get the latest from NBCWashington.com anytime, anywhere. Follow us on Twitter and Facebook. Sign up for our e-mail newsletters and get breaking news delivered right to your mobile phone -- just text DCBREAKING to 622339 to sign up. (Message and data rates may apply.)
