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Monday, March 22, 2010

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CONGRESS

Lee drops problematic $3 million earmark request

NEWS WASHINGTON BUREAU CHIEF

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WASHINGTON — Rep. Chris Lee on Wednesday withdrew his request for a $3 million “earmark” for the company that bought the Lee family business two years ago.

On the same day that The Buffalo News reported Lee’s earmark request for ITT Corp., Lee, R-Clarence, said he wouldn’t seek the federal funding for the company’s Rochester operation after all.

“Despite the fact that there is no conflict, out of an abundance of caution, I am withdrawing the request to put any questions to rest and continue with my work to help grow and strengthen Western New York,” Lee said.

Congressional ethics experts downplayed the possibility of any conflict regarding Lee and ITT, but said the situation could pose a problem of appearances for the freshman lawmaker.

The ITT money was among the more than $220 million in funding requests Lee has disclosed on his Web site.

ITT purchased International Motion Control of Buffalo, which Lee helped run with his father, Patrick Lee, for $395 million in the summer of 2007.

The younger Lee’s congressional financial disclosure form indicates that he personally earned between $1 million and $5 million on the sale.

However, Lee did not receive any ITT stock as part of the deal, meaning there is not now any financial connection between the congressman and the company.

The $3 million in federal funds that Lee had been seeking for ITT would have been used for the company’s Rochester operation to build a system for the Department of Defense that integrates real-time surveillance images from sensors on a battlefield.

Lee said he pursued the earmark in a 2010 spending bill because the company employs nearly 700 people in his district, even though it is located about a mile to the east of his district, in the district of Rep. Louise M. Slaughter, D-Fairport.

“Since the day I began my campaign for Congress, I have not had, and do not have today, any financial interest whatsoever in the success or failure of ITT,” Lee said. “As I stated in my letter to the Appropriations Committee, I have no financial interest in this request, and my only interest is in helping to create jobs in Western New York and get our economy back on track.”

jzremski@buffnews.com


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