Massa used campaign funds to pay himself and wife
By Jerry Zremski
News Washington Bureau Chief
Updated: November 15, 2009, 12:48 PM / 17 comments
WASHINGTON -- Eric Massa paid himself and his wife $33,000 in salary out of campaign funds during his successful 2008 race in the Southern Tier's 29th district, federal records show.
Massa's payments highlighted a review of the personal financial disclosure statements of the area's federal lawmakers.
That review -- which found Rep. Chris Lee, R-Clarence, to be the House's 25th-richest lawmaker -- also showed that Massa and several of his colleagues took the same kind of huge financial hits that most Americans took during the 2008 economic crisis.
While that loss was to be expected, it's highly unusual to see a congressional candidate paying himself out of funds he or she raised for a campaign. Such payments are legal under federal election law, but ethics experts take a dim view of them.
"Voters should be concerned," said Melanie Sloan, executive director of Citizens for Ethics and Responsibility in Washington, a good-government group. "When they donated to Massa, they didn't expect that he would be pocketing the money."
Yet that's just what Massa, a Democrat from Corning, did with $15,000 of the $2.16 million he raised in his second bid to unseat Rep. Randy Kuhl, R-Hammondsport.
"Eric did draw a meager salary at the end of the 2008 campaign to cover expenses after campaigning full-time for four years," said Jared Smith, Massa's spokesman. "There aren't many people who have spent more time or effort working for the privilege of serving the families of their congressional district's than Rep. Massa."
Massa paid his wife, Beverly, $18,000 to work as the campaign's treasurer, accountant and compliance officer. Smith said Beverly Massa is not serving in those roles for Massa's 2010 re-election bid.
A retired Navy commander, Massa is by no means one of the wealthiest members of Congress. He ranked 283rd in wealth among the House's 435 members, the Center for Responsive Politics found in an analysis of the disclosure forms that lawmakers must file annually.
The value of Massa's investments was somewhere between $31,039 and $674,999. Those estimates are grossly imprecise because Congress wants it that way, only requiring lawmakers to report the value of an investment in a dollar-value range rather than a specific amount.
Averaging those two figures, the Center for Responsive Politics pegged Massa's net worth at an estimated $353,019.
What's more, Massa's net worth declined by an estimated 31.2 percent last year, according to the group's figures.
That's comparable to the estimated 30.2 percent hit that Lee -- by far the area's wealthiest lawmaker -- took last year.
With an estimated net worth of $13.46 million, Lee ranked as the House's 25th richest member, the study showed. Lee made his wealth through the family business, Enidine Corp., a motion-controls equipment manufacturer based in Orchard Park, where he served as an executive before running for Congress.
Lee was heavily invested in stock funds early in the year, but his financial disclosure form shows that he shed many of them in favor of less volatile investments, presumably often at a loss.
Acknowledging he took "a huge hit," Lee also said voters should not look at his considerable remaining wealth and consider him out of touch.
Saying he's in Congress "to help improve the lives of other Americans," Lee noted that he spends so much time with constituents that he knows very well how they are suffering economically.
"I've always felt that, if you're not talking all the time with people, in any organization, you won't be successful," he said. "It's very simple, if I'm not in touch with my constituents, I won't be re-elected."
The review of personal financial disclosure statements also showed:
-- Rep. Louise M. Slaughter, D-Fairport, suffered an estimated 36.6 percent drop in the value of her investments, which are concentrated in investment funds and savings that she has held for a long period of time.
With an estimated net worth of $1.7 million, Slaughter ranked 122nd in the House.
-- Rep. Brian Higgins, D-Buffalo, enjoyed an estimated 10.4 increase in the value of his investments. Higgins keeps almost all of his money in savings and retirement accounts, meaning any increase in his net worth likely resulted from increased savings from his income as a congressman and his wife's income from the Buffalo schools.
Higgins remains one of the House's least wealthy members, ranking 341st.
jzremski@buffnews.com
Reader comments
There are 17 comments on this article.
My husband and I both maxed out on Massa's campaign. He told us in early 2007 as he was deciding whether to run again that the only way he could do it was to draw a salary from the campaign. He said he hated having to do it, but there was no other way to support his family and run again. We wrote our checks to his campaign long after he told us that, so obviously, as donors, we have no problem with it. Let me say that again, it was MY MONEY he paid himself and I'm fine with it. (For those of you who are still upset, you might want to look up how much Randy Kuhl paid his son...)
I find it funny that one of the people who thinks this is evil also thinks career politicians are evil. Massa was taking on a career politician. He's not one. That's why he had to campaign full time and draw a salary from his campaign. It's the very fact that this practice is legal that makes it possible for the non-wealthy to take on career politicians.
Posted by: MariaW on Nov 16,2009 at 07:26 am
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I didn't say he was a JAG Officer I said they would be investigating HIM. If he had to retire because of cancer that is his problem. What he does in office and with politics that is our forum Comrade. If you read my lips republicans were a joke too. Most politicians do it for one thing control over people and money. The whole political system is flawed because of CAREER POLITICIANS ruling the roost. There needs to be people stepping up to the bat and getting this playing field pretty level. Instead they just seem bent on lining their pockets from campaign funds or taxpayer funds. All to stay in political control. Do you know the retired salaries most of these POLITICIANS GET. some get better benefits and salaries that would make some of the top 10 businesses CEO's eyes beam with jealousy. Look up any public records of some of these guys if you can find them. These should be available under the freedom of information act. But I'll bet if you try it will take an act of congress to get them available. He's but one of the flunkies trying to REPRESENT their constituients and pass some of these flawed laws to help him line his pockets. So take your playboy with two shotguns and vote him in if he's so good. Just make sure he's above board and does a good job while in office. I don't care what these politicians do in their private time. It's when they are on public time and their funds that's where I draw the line. BTW I served in the NAVY too so It takes one to know one.
Posted by: Repairman on Nov 16,2009 at 12:30 am
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"There aren't many people who have spent more time or effort working for the privilege of serving the families of their congressional district's than Rep. Massa." - according to spokesman Jared Smith. With a statement like that this clown is ... "
He ran a full time campaign, twice. Was proud to vote for him twice too. Glad we got rid of what we had. He was a joke.
Posted by: parmm1 on Nov 15,2009 at 11:47 pm
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"A NAVY retiree at Commander level and he's billing his campaign contributions for wages. double dipping eh. Sounds like JAG would looking his way if he was still serving. As far as these political cronies go I ... "
I take it you would rather have a playboy who pointed 2 shotguns at his wife and threatened her at a fund raising party? Right Comrade, the Republicans didn't offer much!!! I really can not figure how he got re-elected over and over again.
BTW, Massa was not a Jag, and he would still be serving it it were not for cancer that is now under control. Had to retire.
Posted by: parmm1 on Nov 15,2009 at 11:44 pm
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Reply
"Should be removed from office immediately. He is a Democrat though so he will probably be rewarded with a committee chairmanship."
Or as a Republican given life long standing, a yacht, cocaine, some wars to start to help his buddies......
Posted by: aldo23 on Nov 15,2009 at 11:43 pm
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A NAVY retiree at Commander level and he's billing his campaign contributions for wages. double dipping eh. Sounds like JAG would looking his way if he was still serving. As far as these political cronies go I trust none of them. Especially poor Louise she really leaves a bad taste in my mouth. Whats bad are the republicans really don't want to offer any good candidates just clones of those in office. So we're basically in a no win situation. Maybe we need some good independents to stand up and fight the good one against these INCUMBENT and clones trying to serve. After all they are supposed to be serving us taxpayers not themselves. Obviously this guy is just trying to get all he can from our dime. Did any of you notice it that congress doesn't want to be precise on any of their finances? Only within Vague ranges? Like they want us to be precise but somehow they seem to be exempt. Sure try that at an IRS audit. Politics are getting to be too big and people like Louise are trying to rule the roost and keep her throne in DC. No wonder our Government is into debt for over 12 trillion dollars and that is not to us. Look at Obama now he's over in China kissing up to the Chinese to let them know their investment (US) is safe and not to worry. With Politicians like these boy there really is a double standard and it's not in our favor. No wonder we are in such deep trouble as a nation. Small businesses like mine and yours Mr Freeze don't have to worry because we'll be taken over by the government and they will decide what we can and can not do. Right Comrade!
Posted by: Repairman on Nov 15,2009 at 11:16 pm
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I am not rich now and I think that way because I want to be wealthy in the future. I understand that letting me spend more of the money I earn and is rightly fully mine I will be able to spend it on my business and investments. Small business people like me will be able to create far greater wealth than pouring into the black hole of government. Even a ham and egger can understand this fact.
Posted by: mrfreeze on Nov 15,2009 at 07:51 pm
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I mlike Higgin's but come on! BOTH INCOMES, his and his wife from the public sector?
Posted by: Seenenough on Nov 15,2009 at 07:42 pm
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Lee is out of touch with reality. Constantly his legislation is "tax breaks" while a vast majority of Americans are making the more basic decision "can I afford it" not "how it will reduce my taxes". ONLY THE RICH THINK THAT WAY!
Posted by: Seenenough on Nov 15,2009 at 07:39 pm
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Should be removed from office immediately. He is a Democrat though so he will probably be rewarded with a committee chairmanship.
Posted by: abbie66 on Nov 15,2009 at 07:09 pm
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And we are wondering where political corruption comes from. Boy do we need an education. This is just kindergarten for these guys. Where's our ethics guys when we need them. May be legal but then most politicians are legal just not ethical.
Posted by: Repairman on Nov 15,2009 at 07:03 pm
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I find it very comical that anyone would find it objectional that Massa paid himself out of campaign money when ex Representative Kuhl was being paided by the taxpayers! I, for one, gave to Massa's campaign and do not object. Very happy to see Kuhl gone. Massa is a breath of fresh air when compared to the man I paid thru taxes to run against him.
Posted by: parmm1 on Nov 15,2009 at 01:34 pm
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If Massa raised money in the stock market without disclosing his intent to pay himself he would be in violation of securities law. Funny how congress exempts itself from the laws it imposes on others. Don't expect congress to be subject to the new health care bill: they'll just vote themselves more of our taxes for cadillac care. They exempt themselves from labor law, EEOC law, etc. Our imperial congress: don't you just love them?
Posted by: Obmanation on Nov 15,2009 at 11:52 am
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"There aren't many people who have spent more time or effort working for the privilege of serving the families of their congressional district's than Rep. Massa." - according to spokesman Jared Smith. With a statement like that this clown is either a lawyer or practicing to be one.
Posted by: LloydSokorski on Nov 15,2009 at 11:49 am
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This article seems to be slanted, even with the chosen headline that Rep. Eric Massa did some wrongdoing. This is NOT an example of impartial reporting.
Posted by: pjrobbins on Nov 15,2009 at 11:37 am
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Expect to see Brian Davis run for congress once he becomes aware of this procedure.
Posted by: GSBILL on Nov 15,2009 at 11:18 am
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Reply
Look at who (JK) ran against Collins a few years back, he did the same thing.
-
Its common in Buffalo:)
Posted by: bullitt424 on Nov 15,2009 at 10:37 am
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By Jerry Zremski
News Washington Bureau Chief
Updated: November 15, 2009, 12:48 PM / 17 comments
WASHINGTON -- Eric Massa paid himself and his wife $33,000 in salary out of campaign funds during his successful 2008 race in the Southern Tier's 29th district, federal records show.
Massa's payments highlighted a review of the personal financial disclosure statements of the area's federal lawmakers.
That review -- which found Rep. Chris Lee, R-Clarence, to be the House's 25th-richest lawmaker -- also showed that Massa and several of his colleagues took the same kind of huge financial hits that most Americans took during the 2008 economic crisis.
While that loss was to be expected, it's highly unusual to see a congressional candidate paying himself out of funds he or she raised for a campaign. Such payments are legal under federal election law, but ethics experts take a dim view of them.
"Voters should be concerned," said Melanie Sloan, executive director of Citizens for Ethics and Responsibility in Washington, a good-government group. "When they donated to Massa, they didn't expect that he would be pocketing the money."
Yet that's just what Massa, a Democrat from Corning, did with $15,000 of the $2.16 million he raised in his second bid to unseat Rep. Randy Kuhl, R-Hammondsport.
"Eric did draw a meager salary at the end of the 2008 campaign to cover expenses after campaigning full-time for four years," said Jared Smith, Massa's spokesman. "There aren't many people who have spent more time or effort working for the privilege of serving the families of their congressional district's than Rep. Massa."
Massa paid his wife, Beverly, $18,000 to work as the campaign's treasurer, accountant and compliance officer. Smith said Beverly Massa is not serving in those roles for Massa's 2010 re-election bid.
A retired Navy commander, Massa is by no means one of the wealthiest members of Congress. He ranked 283rd in wealth among the House's 435 members, the Center for Responsive Politics found in an analysis of the disclosure forms that lawmakers must file annually.
The value of Massa's investments was somewhere between $31,039 and $674,999. Those estimates are grossly imprecise because Congress wants it that way, only requiring lawmakers to report the value of an investment in a dollar-value range rather than a specific amount.
Averaging those two figures, the Center for Responsive Politics pegged Massa's net worth at an estimated $353,019.
What's more, Massa's net worth declined by an estimated 31.2 percent last year, according to the group's figures.
That's comparable to the estimated 30.2 percent hit that Lee -- by far the area's wealthiest lawmaker -- took last year.
With an estimated net worth of $13.46 million, Lee ranked as the House's 25th richest member, the study showed. Lee made his wealth through the family business, Enidine Corp., a motion-controls equipment manufacturer based in Orchard Park, where he served as an executive before running for Congress.
Lee was heavily invested in stock funds early in the year, but his financial disclosure form shows that he shed many of them in favor of less volatile investments, presumably often at a loss.
Acknowledging he took "a huge hit," Lee also said voters should not look at his considerable remaining wealth and consider him out of touch.
Saying he's in Congress "to help improve the lives of other Americans," Lee noted that he spends so much time with constituents that he knows very well how they are suffering economically.
"I've always felt that, if you're not talking all the time with people, in any organization, you won't be successful," he said. "It's very simple, if I'm not in touch with my constituents, I won't be re-elected."
The review of personal financial disclosure statements also showed:
-- Rep. Louise M. Slaughter, D-Fairport, suffered an estimated 36.6 percent drop in the value of her investments, which are concentrated in investment funds and savings that she has held for a long period of time.
With an estimated net worth of $1.7 million, Slaughter ranked 122nd in the House.
-- Rep. Brian Higgins, D-Buffalo, enjoyed an estimated 10.4 increase in the value of his investments. Higgins keeps almost all of his money in savings and retirement accounts, meaning any increase in his net worth likely resulted from increased savings from his income as a congressman and his wife's income from the Buffalo schools.
Higgins remains one of the House's least wealthy members, ranking 341st.
jzremski@buffnews.com
Reader comments
There are 17 comments on this article.
My husband and I both maxed out on Massa's campaign. He told us in early 2007 as he was deciding whether to run again that the only way he could do it was to draw a salary from the campaign. He said he hated having to do it, but there was no other way to support his family and run again. We wrote our checks to his campaign long after he told us that, so obviously, as donors, we have no problem with it. Let me say that again, it was MY MONEY he paid himself and I'm fine with it. (For those of you who are still upset, you might want to look up how much Randy Kuhl paid his son...)
I find it funny that one of the people who thinks this is evil also thinks career politicians are evil. Massa was taking on a career politician. He's not one. That's why he had to campaign full time and draw a salary from his campaign. It's the very fact that this practice is legal that makes it possible for the non-wealthy to take on career politicians.
Posted by: MariaW on Nov 16,2009 at 07:26 am
Inappropriate
Reply
I didn't say he was a JAG Officer I said they would be investigating HIM. If he had to retire because of cancer that is his problem. What he does in office and with politics that is our forum Comrade. If you read my lips republicans were a joke too. Most politicians do it for one thing control over people and money. The whole political system is flawed because of CAREER POLITICIANS ruling the roost. There needs to be people stepping up to the bat and getting this playing field pretty level. Instead they just seem bent on lining their pockets from campaign funds or taxpayer funds. All to stay in political control. Do you know the retired salaries most of these POLITICIANS GET. some get better benefits and salaries that would make some of the top 10 businesses CEO's eyes beam with jealousy. Look up any public records of some of these guys if you can find them. These should be available under the freedom of information act. But I'll bet if you try it will take an act of congress to get them available. He's but one of the flunkies trying to REPRESENT their constituients and pass some of these flawed laws to help him line his pockets. So take your playboy with two shotguns and vote him in if he's so good. Just make sure he's above board and does a good job while in office. I don't care what these politicians do in their private time. It's when they are on public time and their funds that's where I draw the line. BTW I served in the NAVY too so It takes one to know one.
Posted by: Repairman on Nov 16,2009 at 12:30 am
Inappropriate
Reply
"There aren't many people who have spent more time or effort working for the privilege of serving the families of their congressional district's than Rep. Massa." - according to spokesman Jared Smith. With a statement like that this clown is ... "
He ran a full time campaign, twice. Was proud to vote for him twice too. Glad we got rid of what we had. He was a joke.
Posted by: parmm1 on Nov 15,2009 at 11:47 pm
Inappropriate
Reply
"A NAVY retiree at Commander level and he's billing his campaign contributions for wages. double dipping eh. Sounds like JAG would looking his way if he was still serving. As far as these political cronies go I ... "
I take it you would rather have a playboy who pointed 2 shotguns at his wife and threatened her at a fund raising party? Right Comrade, the Republicans didn't offer much!!! I really can not figure how he got re-elected over and over again.
BTW, Massa was not a Jag, and he would still be serving it it were not for cancer that is now under control. Had to retire.
Posted by: parmm1 on Nov 15,2009 at 11:44 pm
Inappropriate
Reply
"Should be removed from office immediately. He is a Democrat though so he will probably be rewarded with a committee chairmanship."
Or as a Republican given life long standing, a yacht, cocaine, some wars to start to help his buddies......
Posted by: aldo23 on Nov 15,2009 at 11:43 pm
Inappropriate
Reply
A NAVY retiree at Commander level and he's billing his campaign contributions for wages. double dipping eh. Sounds like JAG would looking his way if he was still serving. As far as these political cronies go I trust none of them. Especially poor Louise she really leaves a bad taste in my mouth. Whats bad are the republicans really don't want to offer any good candidates just clones of those in office. So we're basically in a no win situation. Maybe we need some good independents to stand up and fight the good one against these INCUMBENT and clones trying to serve. After all they are supposed to be serving us taxpayers not themselves. Obviously this guy is just trying to get all he can from our dime. Did any of you notice it that congress doesn't want to be precise on any of their finances? Only within Vague ranges? Like they want us to be precise but somehow they seem to be exempt. Sure try that at an IRS audit. Politics are getting to be too big and people like Louise are trying to rule the roost and keep her throne in DC. No wonder our Government is into debt for over 12 trillion dollars and that is not to us. Look at Obama now he's over in China kissing up to the Chinese to let them know their investment (US) is safe and not to worry. With Politicians like these boy there really is a double standard and it's not in our favor. No wonder we are in such deep trouble as a nation. Small businesses like mine and yours Mr Freeze don't have to worry because we'll be taken over by the government and they will decide what we can and can not do. Right Comrade!
Posted by: Repairman on Nov 15,2009 at 11:16 pm
Inappropriate
Reply
I am not rich now and I think that way because I want to be wealthy in the future. I understand that letting me spend more of the money I earn and is rightly fully mine I will be able to spend it on my business and investments. Small business people like me will be able to create far greater wealth than pouring into the black hole of government. Even a ham and egger can understand this fact.
Posted by: mrfreeze on Nov 15,2009 at 07:51 pm
Inappropriate
Reply
I mlike Higgin's but come on! BOTH INCOMES, his and his wife from the public sector?
Posted by: Seenenough on Nov 15,2009 at 07:42 pm
Inappropriate
Reply
Lee is out of touch with reality. Constantly his legislation is "tax breaks" while a vast majority of Americans are making the more basic decision "can I afford it" not "how it will reduce my taxes". ONLY THE RICH THINK THAT WAY!
Posted by: Seenenough on Nov 15,2009 at 07:39 pm
Inappropriate
Reply
Should be removed from office immediately. He is a Democrat though so he will probably be rewarded with a committee chairmanship.
Posted by: abbie66 on Nov 15,2009 at 07:09 pm
Inappropriate
Reply
And we are wondering where political corruption comes from. Boy do we need an education. This is just kindergarten for these guys. Where's our ethics guys when we need them. May be legal but then most politicians are legal just not ethical.
Posted by: Repairman on Nov 15,2009 at 07:03 pm
Inappropriate
Reply
I find it very comical that anyone would find it objectional that Massa paid himself out of campaign money when ex Representative Kuhl was being paided by the taxpayers! I, for one, gave to Massa's campaign and do not object. Very happy to see Kuhl gone. Massa is a breath of fresh air when compared to the man I paid thru taxes to run against him.
Posted by: parmm1 on Nov 15,2009 at 01:34 pm
Inappropriate
Reply
If Massa raised money in the stock market without disclosing his intent to pay himself he would be in violation of securities law. Funny how congress exempts itself from the laws it imposes on others. Don't expect congress to be subject to the new health care bill: they'll just vote themselves more of our taxes for cadillac care. They exempt themselves from labor law, EEOC law, etc. Our imperial congress: don't you just love them?
Posted by: Obmanation on Nov 15,2009 at 11:52 am
Inappropriate
Reply
"There aren't many people who have spent more time or effort working for the privilege of serving the families of their congressional district's than Rep. Massa." - according to spokesman Jared Smith. With a statement like that this clown is either a lawyer or practicing to be one.
Posted by: LloydSokorski on Nov 15,2009 at 11:49 am
Inappropriate
Reply
This article seems to be slanted, even with the chosen headline that Rep. Eric Massa did some wrongdoing. This is NOT an example of impartial reporting.
Posted by: pjrobbins on Nov 15,2009 at 11:37 am
Inappropriate
Reply
Expect to see Brian Davis run for congress once he becomes aware of this procedure.
Posted by: GSBILL on Nov 15,2009 at 11:18 am
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Reply
Look at who (JK) ran against Collins a few years back, he did the same thing.
-
Its common in Buffalo:)
Posted by: bullitt424 on Nov 15,2009 at 10:37 am
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