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Lobbyists under scrutiny - Representative Weldon and Smallpox Vaccine

By: William Bender, Daily Local News

In late 2001, following the Sept. 11, 2001, terrorist attacks and the anthrax scare, U.S. Rep. Curt Weldon, R-7th, of Thornbury, Delaware County, went to bat for a Maryland-based biotech company that was looking to cash in on the threat of a terrorist-caused smallpox outbreak.

Novavax Inc. was seeking federal funding to develop, and ultimately sell, an "inactivated," or killed virus that could potentially be used to vaccinate the entire U.S. population from a smallpox attack without the serious side effects of existing vaccines.

Weldon penned a "dear colleague" letter to members of Congress asking them to attend a briefing on the Novavax vaccine.

"There are questions about whether this type of vaccine, which utilizes a live virus, will really do the job for all Americans," Weldon wrote, referring to an older vaccine that could cause hundreds of deaths for at-risk populations if a mass immunization was required.

In the letter, which was signed by three other members of Congress, Weldon wrote that the government "needs a vaccine that can be administered before an outbreak of smallpox," USA Today reported in 2001.

A few weeks before the briefing, Novavax hired a new lobbyist to get the word out in Washington about its product.

Through Frank Rapoport, a government contracts attorney who is close to Weldon’s office, the company tapped Stefanie J. Reiser, Weldon’s fundraiser for his campaign and Committee for a United Republican Team (CURT PAC), his political action committee.

Such relationships -- lobbyists who double as congressional fundraisers and treasurers -- are coming under increased scrutiny in light of the Jack Abramoff scandal, and at least two senators are calling for legislation to prohibit them.

Reiser registered as a Novavax lobbyist on Nov. 13, 2001, records show. On Dec. 6, 2001, Weldon called the briefing.

Novavax issued a press release that read: "In opening the briefing, Congressman Weldon noted that ‘America continues to face serious threats from terrorism. I believe the potential for the use of biological or chemical agents against the U.S. is real and that we owe it to the American people to find safe and effective protections against these threats.’"

Russ Caso, who became Weldon’s chief of staff last year, said he and the congressman were both unaware that Reiser had performed any work for Novavax until it was brought to their attention this month.

Caso said Reiser worked with Weldon and other House members to arrange the smallpox briefing. Weldon declined to be interviewed on the matter.

Through his chief of staff, Weldon said: "My position is I never knew Stefanie Reiser was a lobbyist. It was never articulated to me. I took on that issue because of what was going on at the time and it seemed like a very significant issue."

Weldon also was interested in helping the company in 2001 because it was considering moving its headquarters from Columbia, Md., to his home district.

Novavax completed that relocation to the Great Valley Corporate Center in Malvern in September 2004.

"Curt was working on a good issue that could also benefit his congressional district," Caso said, denying that there was any connection between the congressman assisting Novavax and Reiser’s position as a lobbyist for the company.

Contacted last week in Reston, Va., Reiser said Weldon’s office was, in fact, aware that she was lobbying for Novavax while she was raising money for the congressman.

"They did know," she said, referring specifically to Michael Barbera, who was serving as Weldon’s chief of staff when Novavax hired Reiser.

She also said she found it difficult to believe that Weldon himself was unaware of her work for the biotech firm, which ultimately produced few results.

"Basically, all that ever happened was we had one little briefing on the Hill," Reiser, 42, said of her lobbying efforts.

Barbera hired Reiser in January 2000 to handle fund-raising duties for Weldon’s campaign committee and CURT PAC. She was replaced last year.

Prior to working for Weldon, Reiser was a lobbyist for Chambers Associates and served as former California Gov. Peter Wilson’s representative in Washington. She now works in the coffee business.

Reiser earned $54,659 as a fundraiser for Weldon’s campaign committee, records show. She was paid at least $90,000 out of CURT PAC for fundraising and reimbursements for travel, lodging and office supplies.

Reiser was paid $20,000 by Novavax, but she said the company never received any federal funding for the smallpox vaccine, the only issue she was assigned to handle.

An official at the National Institute of Allergy and Infectious Diseases, the federal agency that disperses most smallpox funding, confirmed that.

A Novavax spokeswoman would not provide information about Reiser or the status of its smallpox vaccine.

Barbera, who now serves as a Washington lobbyist with American Continental Group, said he knew Reiser was working for Novavax while serving as Weldon’s fundraiser.

"At some point, I came to be aware of it, and to be honest, I wasn’t particularly troubled with it," he said. "If it’s a legitimate company with a legitimate product that’s talking about bringing jobs to the district, it doesn’t matter who the lobbyist is. We’ll try to help."

Asked if he ever told the congressman Reiser was a Novavax lobbyist, Barbera said: "If Curt said he didn’t know, I believe him."

Reiser’s dual-role status is not uncommon in Washington, but some lawmakers have begun severing such relationships after Abramoff, once a powerful lobbyist, pleaded guilty last month to fraud and bribery charges.

Lawmakers who had accepted campaign contributions from Abramoff immediately began returning the money or donating it to charity.

Weldon donated to a local charity $2,000 he received from Abramoff and one of his clients, the Saginaw Chippewa Indian Tribe.

In the past six years alone, lobbyists have served as treasurers for at least 800 PACs and 68 campaign committees, according to a study released in October by the Center for Public Integrity.

"That’s undue influence, something that should just be banned right across the board," said Craig Holman of Public Citizen’s Congress Watch, which is pushing for legislation that would prevent lobbyists from arranging fundraisers, serving as treasurers and soliciting campaign contributions.

"There’s been a lot of criticism of that because it really does put lobbyists in close with the members (of Congress) and really gives them the inside track," said Larry Noble, executive director of the Center for Responsive Politics.

As the fundraiser for both of Weldon’s committees, Reiser helped raise hundreds of thousands of dollars a year to benefit Weldon’s campaign and those of other Republicans, from the federal to the municipal level.

Holman said lobbyists are a legitimate educational source for Washington lawmakers, but "they should not be in their face handing them money at the same time."

Caso said neither Weldon’s campaign committee nor CURT PAC currently have lobbyists on staff.

"The good thing is we don’t have to go out and change anything because we don’t have any lobbyists associated with our two accounts," he said.

But as of Thursday afternoon, Barbera’s biography on the American Continental Group Web site said he is "currently chairman of the Committee for a United Republican Team (CURT PAC), Congressman Weldon’s political action committee."

Asked about that position, Barbera, who has been registered as a lobbyist since 2002, said CURT PAC technically has no chairman because it does not have a board. Barbera said he "informally" works for the PAC.

By early Thursday evening, hours after Barbera was questioned about his activity on the committee, American Continental Group’s Web site had removed any mention of Barbera’s association with CURT PAC.

"I can’t explain why people put things on their resumes or bios," Caso said in response to Barbera’s claim that he was CURT PAC’s chairman.

Like other lawmakers, Caso said Weldon’s office is re-evaluating all its relationships with lobbyists by making sure all staffers document who they meet with and what topics are discussed.

"Our radar is on," he said. Representatives and senators from both parties are considering lobbying and ethics reform that would make funding earmarks more transparent, strengthen lobbyist disclosure requirements and restrict gifts from lobbyists to lawmakers.

Weldon’s office is waiting to see which bill "makes the most amount of sense," Caso said.

"The thing we have to be careful of is not to group all lobbyists into the Jack Abramoff category. They’re not all Jack Abramoffs," Caso said. "People have a right to make a living and most are very ethically and morally sound, so I would hesitate to group them all together and say they’re all bad people."

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