Pa. House Democrats' bill for bonus probe is $1.

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7/31/2008, 3:20 p.m. EDT By MARK SCOLFORO The Associated Press

HARRISBURG, Pa. (AP) The state House Democratic caucus disclosed Thursday that it has paid lawyers and consultants more than $1.4 million in public money for help responding to an investigation into whether government funds and resources were illegally used for political campaigns. The figures obtained by The Associated Press include $618,000 the caucus has paid so far to about a dozen lawyers who represented more than 135 caucus employees and a small number of Democratic state representatives. The caucus also has paid about $800,000 to Chadwick Associates Inc., a Washington, D.C., firm that is helping it respond to the attorney general's investigation. "We understand that this is a substantial expenditure of public funds, but we believe strongly that it was entirely appropriate under the circumstances to facilitate the truthful cooperation of the caucus' staff with the attorney general's investigation," said Bill Chadwick, a lawyer and president of the firm that bears his name. Caucus employees approached by investigators or subpoenaed could seek representation by contacting Bill Sloane, the caucus' chief counsel and compliance and ethics director. Sloane, Chadwick and another lawyer worked together to determine which lawyer to provide. Chadwick said the outside lawyers were selected, in part, for a willingness to be cooperative with the attorney general's office, a "rapport" with state prosecutors and relevant expertise. "This is not a case for 'My Cousin Vinny,'" he said. "You need someone who understands grand jury investigations." Caucus records show payments to 13 lawyers or law firms. The largest recipient was the Philadelphia firm Conrad, O'Brien, Gellman & Rohn, which has received $320,000. Billing records show lawyers were paid to review documents and press accounts, attend meetings and legal proceedings and make phone calls. They were reimbursed for meals, travel and other expenses. Hourly rates varied considerably, in some cases reaching $400. Conrad, O'Brien chairman Jim Rohn said the firm represented about 45 current and former caucus employees "and took them through the process of cooperating with the government and telling the truth." He declined to identify the employees.

Earlier this month, 12 people associated with the House Democratic caucus were charged with theft, conflict of interest and conspiracy. Defendants include former Whip Mike Veon, current Rep. Sean Ramaley, the former chief of staff to Majority Leader Bill DeWeese and other high-ranking caucus employees. All the charged employees are either suspended without pay or were forced out in November.

At the heart of the case are allegations that legislative employees were paid bonuses for campaign work, often on state time, and that public equipment and contracts were used for electioneering purposes. A hearing is scheduled for October. Chadwick said three of the 12 defendants have previously received taxpayer-funded legal advice and the caucus intends to pursue repayment of those legal fees. He said most employees who have been provided lawyers, but not all, have been required to sign a document committing to repay the legal costs if they are convicted of a crime. A few caucus employees Chadwick estimated about five decided to select and pay their own lawyers. He declined to identify any of the 135 or so current and former caucus employees. Lately, the number of people seeking representation has dwindled. "For a while there, my phone was ringing off the hook with people who needed counsel," he said. "Now it's down to a trickle." Chadwick said a large portion of the $800,000 in fees paid to his firm were for "electronic discovery," the process of collecting and weeding through a vast number of e-mails requested by state prosecutors. DeWeese spokesman Tom Andrews said the payments were made out of the caucus' "special leadership account" controlled by DeWeese. As head of the caucus, DeWeese has coordinated the legal effort and is the final decision maker. Attorney General Tom Corbett has said the investigation is continuing and that he expects additional arrests. His office also is looking into practices within the House Republican and Senate Democratic and Republican caucuses. The Pittsburgh Tribune-Review reported Wednesday that House Republicans have spent $129,000 on investigation-related legal fees over the past 17 months. A spokesman for the Senate Democratic caucus said Thursday its outside legal costs related to the investigation amount to less than $5,000. A Senate Republican spokesman said a caucus lawyer would respond to the AP's request for similar information.