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AJC investigation: Report finds Deal violated ethics rules
12:51 pm March 29, 2010, by Aaron Gould Sheinin

Nathan Deal far exceeded congressional limits on outside income and used his U.S. House office and staff to preserve a private stream of money coming from a no-bid state business deal, a report from the Office of Congressional Ethics has found.

The 138-page report, released Monday, is based on reporting from The Atlanta Journal-Constitution from August that deal and a business partner made hundreds of thousands of dollars from the business and that Deal used his congressional office to try and prevent state officials from making significant changes to it.

Deal, a Republican candidate for governor, has denied wrongdoing. He resigned his seat from the U.S. House immediately following the March 21 vote on health care reform. His resignation came just minutes before the clock struck midnight. The next day, March 22, was the deadline for the the ethics office in Washington to announce whether it was issue a report or dismiss the case.

But the ethics office’s board voted unanimously to release their report anyway, even though Deal is no longer under House jurisdiction and can no longer be punished for his actions.

The congressional ethics office found that Deal made at least $75,000 in 2008 in earned income, far exceeding the limit of $25,830.

Deal, a Republican candidate for governor in 2010, personally intervened with Georgia leaders to preserve an obscure state program that earns his company nearly $300,000 a year.

Deal on three occasions in 2008 and 2009 met with state Revenue Commissioner Bart Graham to question proposed changes Graham wanted to make in the way Georgia inspects rebuilt salvaged vehicles. Deal coordinated his efforts through the office of Lt. Gov. Casey Cagle.

Also, Deal’s chief of staff used his congressional e-mail account to contact Georgia Senate and Revenue Department staff to discuss the plans and to set appointments for Deal to meet with officials, including Cagle.

Deal and Ken Cronan own and operate Recovery Services Inc., also known as Gainesville Salvage & Disposal, which for nearly 20 years enjoyed a lucrative agreement with the state that earned the company $1.5 million from 2004 through 2008, the AJC found last year. The company provided a location and equipment for state inspectors to examine salvaged vehicles. Deal and Cronan never had to compete for the business, state officials said.

Deal ended his relationship with the state after substantial changes were made to the program.

Deal personally earns up to $150,000 a year from the enterprise, according to reports he files with the U.S. House.

Deal, a top contender to replace Gov. Sonny Perdue, says he has done nothing wrong and has acted as any business owner and citizen would in speaking to state officials about a program he says saves lives and brings revenue to state coffers. He also said he has often worked with state officials on issues important to constituents.

More to come …