South Bay congresswoman investigated by ethics committee

LONG BEACH — A South Bay congresswoman, under fire for failing to pay her bills, is now being investigated by the House Ethics Committee, it was reported today.

The Long Beach Press-Telegram reports that Rep. Laura Richardson's correspondence with the Long Beach Gas & Oil Department have been subpoenaed. The municipal department sells natural gas to Long Beach residents.

The congressional committee's probe was launched in October after the Press-Telegram reported that Richardson had stiffed some creditors, let her property go to weeds, and had lost a house to foreclosure only to regain it in an auction cancellation that raised ethical questions.

The congresswoman came under fire in 2008 after she lost her house in Sacramento to foreclosure, but then arranged with a lender to get it back from a man who bought it at an auction. The Press-Telegram reported the congresswoman personally showed up at a South Bay collision repair mechanic to pay a longstanding debt, after the newspaper had run an article about it.

At the time, Richardson said the problems were due to the financial stress of suddenly being elected a state legislator, moving to Sacramento, then winning a congressional election and having to move to Washington, all within one year.

After the ethics panel announced its investigation in October, it issued a statement that it was looking into whether Richardson accepted "an impermissible gift or received preferential treatment from her lender relating to the foreclosure, rescission of the foreclosure sale or loan modification
agreement for or relating to her property,'' the Press-Telegram reported.

Two other women are named in the subpoena, but the newspaper was unable to confirm who they are and has decided to withhold publication of their names. The subpoena was sent to the Gas & Oil Department and a number of city officials.

The newspaper reported it could not reach Richardson on her cell phone. Her communications director was contacted by phone and e-mail but could not be reached, the Press-Telegram reported.