Feds probe Menendez rental deal (NJ Star-Ledger)

[liberalpragmatist]

http://www.nj.com/news/ledger/index.ssf?/base/news-8/1157696151222550.xml&coll=1

Senator took in at least $300,000 from nonprofit in Union City
Friday, September 08, 2006
BY JEFF WHELAN AND JOSH MARGOLIN
Star-Ledger Staff

Federal investigators have subpoenaed records of a rental deal between U.S. Sen. Robert Menendez and a nonprofit agency in Union City, launching a criminal investigation that is sure to rock New Jersey's hotly contested Senate race.

Authorities delivered the subpoena to the North Hudson Community Action Corp. earlier this week, according to four sources familiar with the move who requested anonymity because of the ongoing investigation.

The action comes two weeks after The Star-Ledger reported that Menendez collected more than $300,000 from the organization over a nine-year period while he represented Hudson County in the U.S. House of Representatives. During that period, he also helped the agency win millions of dollars in federal funding.

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Menendez campaign spokesman Matt Miller said last night the senator has nothing to fear from the investigation, and questioned the timing of the action by the U.S. Attorney's Office, considering the election is two months away.

"This transaction was already approved by the House Ethics Committee, and the U.S. attorney will find that Bob Menendez did nothing but support a well-respected agency in the exact same manner that he has supported other nonprofits in the state," Miller said.

[AX10]

1. Kean is trying to help his son win a Senate seat in NJ.