Can a Real Estate Deal Corrupt You?

Business Friendships... Let's say that you're a senior corporate real estate executive. A friend wants to acquire one of your company's properties. You help your friend solicit letters of support, and you arrange a meeting with your friend's wife and company officials. The next day, your friend takes you to play golf. Have you committed a crime?

I doubt it. But the situation raises a host of ethical issues, and, at a minimum, you would certainly want to disclose your conflict of interest. Now transplant this scenario to Washington, DC.

It is 2002. You (David Savafian) are the chief of staff of the GSA. Your friend (Jack Abramoff) wants to acquire the Old Post Office on Pennsylvania Ave. You help your friend solicit letters from congressmen. You arrange a meeting with your friend's wife and GSA officials. The next day, your friend takes you on a luxury golf outing to Scotland.

You tell government investigators that your friend has "no business with the GSA" because your friend has not yet submitted a bid. Have you committed a crime?

Yes. Earlier this week, a jury convicted Savafian of lying and obstructing justice after numerous e-mails surfaced documenting his close personal relationship with Abramoff. Oops. (New York Times, June 21, 2006)

Ironically, Abramoff (actually his Indian tribe client) never did submit a bid to acquire the property. So what finally happened to the building? I found two related web sites, one for the Old Post Office Pavilion and another for the Old Post Office Tower, part of the National Park Service. But who redeveloped it?

-- Peter Pike