Feds ask judge to not dismiss Renzi charges

Federal prosecutors have asked a judge to deny retiring U.S. Rep. Rick Renzi's bid to have corruption charges against him dismissed on constitutional grounds.

Renzi's lawyers last month claimed that FBI agents violated the "speech or debate" clause of the U.S. Constitution by questioning his aides and secretly recording him in a call with one aide.

Prosecutors replied in court papers filed late last week that Renzi "distorts the intent and plain meaning" of the clause and argues in essence that he "is the fortunate denizen of a 'sanctuary for crime.' "

Renzi, a Republican who has represented Arizona's 1st Congressional District for three terms, was indicted by a federal grand jury in February with co-defendants Andrew Beardall of Rockville, Md., former president of Renzi's insurance firm; and James W. Sandlin of Sherman, Texas, Renzi's former business partner. Renzi did not seek re-election this year.

The indictment named Renzi in 35 counts including conspiracy, wire fraud, extortion, money laundering and insurance fraud.

In extensive filings, prosecutors said they are not relying on his legislative acts to prove their case.

They also said that Renzi's lawyers were seeking to expand the breadth of the speech or debate clause beyond a scope that the Supreme Court and appellate courts have granted.

Renzi's defense team has contended that "the speech or debate clause protection is absolute" - that the constitutional clause provides a privilege immunizing the congressman from prosecution concerning virtually any of his functions related to the legislative process.

But in their motion, prosecutors said, "Renzi claims that he is entitled to dismissal of every count of the indictment" on the basis that evidence of legislative acts was introduced in the grand jury, and "that the government 'must necessarily' introduce evidence of legislative acts to support its theory of the case at trial."

However, they said the Supreme Court has applied speech or debate protection only to "legislative acts," and in a situation that "expressly covers actual 'speech or debate in either House.'

Other legislative activities "must be an integral part of the deliberative and communicative processes" in congressional proceedings concerning proposed legislation, activities "essential to legislating," the prosecutors said.

Among other accusations, Renzi is charged with pressuring two investor groups seeking federal land swaps to purchase 480 acres owned by Sandlin along the San Pedro River in Cochise County as part of their exchanges.

Renzi allegedly promised help in obtaining House approval for the land exchanges, but only if Sandlin's land was part of either deal.

The Resolution Copper Corp. broke off negotiations with Sandlin. But within weeks, a group headed by Philip Aries paid $1 million down to Sandlin for the property.

Renzi failed to disclose to either group that Sandlin owed him $700,000 plus interest, nor that Sandlin paid $200,000 to a Renzi-owned company from the Aries sale, prosecutors said.

Nor, apparently, did Renzi ever help obtain the legislative approval for the land swap.

"These promises for future votes were not legislative acts," prosecutors said.

"Renzi's promises were integral to his broader acts of extortion against Resolution Copper and the Aries Group, acts which find no protection in speech or debate jurisprudence. . . . In sum, Renzi's sordid activity receives no speech or debate protection."

Renzi also has been accused of stealing from his insurance company's clients to help finance his first congressional campaign.

In addition, prosecutors have responded to other defense motions, including one to suppress wiretap conversations intercepted on a cell phone registered to his insurance business. Renzi's lawyers maintain the government improperly taped protected legislative communications and legislatively privileged calls.

"Both claims are without merit," prosecutors said.

U.S. Magistrate Bernardo Velasco will hold hearings on defense dismissal motions starting Dec. 1.