Renzi could face decades in prison

The U.S. Attorney for the District of Arizona today unveiled a 26-page indictment against Rep. Rick Renzi (R-1) and his business partner James Sandlin on charges of wire fraud, money laundering and extortion, among others. Any one of the charges carries a penalty of between 5 and 20 years in prison.

According to a Justice Department press release:

"The indictment charges Renzi and Sandlin in 27 counts with honest services wire fraud, extortion and money laundering, and conspiracies to engage in these acts, based on Renzi’s active involvement in the sale of Sandlin’s property in Cochise County, Ariz. to a participant in a federal land exchange proposal.

"The indictment alleges that Renzi and Sandlin previously owned land together in Kingman, Ariz. and that in 2003, Sandlin bought out Renzi’s interest for $200,000 and a note for $800,000. The indictment further alleges that in 2005, at a time when Sandlin still owed Renzi $700,000 in principal on the note, Renzi insisted that two separate entities doing business in Arizona purchase Sandlin’s property in exchange for his support on land exchange legislation.

"The indictment also alleges that Renzi failed to disclose to either entity Sandlin’s $700,000 debt to him; that after the second entity purchased Sandlin’s property, Renzi failed to disclose to that group the $733,000 he received from Sandlin at the commencement and close of escrow in the spring and fall of 2005; and that Renzi failed to disclose to Congress his earnings from Sandlin in his 2005 Financial Disclosure Statement. Finally, the indictment traces the manner in which Renzi and Sandlin used the alleged proceeds of the above unlawful activities for their own personal and business use.

"The remaining counts of the indictment charge Renzi and Beardall with violations of federal insurance laws, by embezzling over $400,000 in insurance premiums from the trust account of the Patriot Insurance Agency, Inc., a business owned by the Renzi family in Santa Cruz County, Ariz., to fund his first Congressional campaign in 2001 and 2002, and by subsequently making false statements to influence state regulatory investigations.

"Convictions for Honest Services Wire Fraud and Extortion each carry a maximum penalty of 20 years in prison, a $250,000 fine or both, and a wire fraud conspiracy carries a maximum penalty of 5 years in prison, a $250,000 fine or both. Convictions for a Money Laundering Conspiracy and Concealment Money Laundering each carry a maximum penalty of 20 years in prison, a fine of $500,000 or twice the value of the money at stake, or both. A conviction for the use by Renzi and Sandlin of the alleged proceeds, known as Transactional Money Laundering, carries a maximum penalty of 10 years in prison, a fine of $500,000 or twice the value of the money at stake, or both. Convictions for False Statements to an Insurance Regulator and Misappropriation of Insurance Premiums each carry a maximum penalty of 10 years in prison, a $250,000 fine or both, and a conspiracy to commit these insurance offenses carries a maximum penalty of 5 years in prison, a $250,000 fine or both."

Click here for the full text of the press release.

Renzi and Sandlin are scheduled to appear at a Tucson court on March 6 for arraignment.