Waters, Richardson on Ethics Committee's List

By JONATHAN LLOYD

Updated 11:00 AM PST, Fri, Oct 30, 2009

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Two Southern California congresswoman will be investigated by House ethics panels.

Reps. Maxine Waters and Laura Richardson were listed in a leaked confidential committee memo.

The Richardson investigation involves a 2008 real estate transaction.

The committee said it was investigating whether Waters used her influence to help a bank in which her husband owned stock, and whether the couple benefited as a result.

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The House Ethics Committee announced Thursday that it voted to establish the investigative panels.

The committee said it will look into allegations that Richardson received a "gift" or "preferential treatment" from Washington Mutual. Richarson bought a house in Sacramento for $535,000 in 2007 after he Assembly election.

The LA Times reported that the house went into foreclosure in early 2008. A real estate investor bought the house in May 2008 for $388,000 and recorded the deed, according to the Times.

Washington Mutual then took back the house and returned it to Richardson, the Times reported. The investor filed a lawsuit and the case was settled, but both sides agreed to keep details secret.

Richardson released a statement Thursday.

"Like 4.3 million Americans in the last year who faced financial problems because of a personal crisis like a divorce, death in the family, unexpected job and living changes and an erroneous property sale, all of which I have experienced in the span of slightly over a year, I have worked to resolve a personal financial situation."

The Waters case involves the National Bankers Association and OneUnited Bank -- and her husband. Waters' husband owned stock and served on OneUnited's board.

OneUnited received $12 million in bailout money. The money was distributed three months after a meeting -- that Waters helped arrange -- between the bank and Treasury Department, the Times reported.

Waters also issued a statement.

"My longtime advocacy on behalf of women- and minority-owned institutions is well known and appreciated by these institutions, which have been historically denied access to government regulators to address their concerns. I am confident that as the investigation moves forward the panel will discover that there are no facts to support allegations that I have acted improperly."

As for other lawmakers mentioned in the memo, the panel said they may have done nothing wrong.