Rep. Laura Richardson (D-CA) has generated an enormous amount of (negative) media coverage of late.  This latest tidbit revealed by the Daily Breeze doesn't help her image:

When she arrived in Congress last fall, Rep. Laura Richardson sought out a vehicle that would match her newfound status.

She settled on a 2007 Lincoln Town Car - the choice of many representatives who lease their vehicles at taxpayers' expense. But hers was distinct: at $1,300 a month, it was the most expensive car in the House of Representatives.

Richardson, a Democrat who represents Carson, has since become known for defaulting on two home loans and losing a third house - in an upscale neighborhood in Sacramento - at a foreclosure auction.

Majority Leader Steny Hoyer is not only hosting a fundraiser today for embattled Rep. Laura Richardson (D-CA), he strongly defended her to reporters.  You may recall that earlier this month, CREW filed an ethics complaint against Rep. Richardson to "determine whether Rep. Richardson accepted a loan in violation of the House gift rule, failed to properly report a loan on her financial disclosure statements, and engaged in conduct that does not reflect creditably on the House by loaning her campaign money at a time when she was in default on her mortgage."

More on the Hoyer's defense of Richardson:

Hoyer, known in political circles as a prodigious fundraiser, is hosting a Capitol Hill event on Wednesday to help Richardson retire her campaign debt.

"I agree to do, to be on the invitations, of many of our members, including Congresswoman Richardson," the Maryland Democrat told reporters today during his weekly pen and pad session. "Congresswoman Richardson has not been, there is no wrongdoing that I know of, of which she has been alleged to have committed. ...

"As I understand, she was, she defaulted on a mortgage," Hoyer continued. "You know, there are literally millions of people in America who have defaulted on mortgages. It's a real problem for us. But I know of no wrongdoing that has been alleged beyond the fact that she defaulted on a mortgage. Or more than one. I think there may have been two."

Citizens for Responsibility and Ethics in Washington asked the Ethics Committee last week to determine whether Richardson reported loans properly on her financial disclosure statements, and whether she "engaged in conduct that does not reflect creditably on the House" by loaning $77,500 to her campaign at a time when she was in default on her mortgage.

Hoyer is right that "literally millions of people in America have defaulted on mortgages."  Only one, as far as we know, is a member of Congress subject to House disclosure and ethics rules.

The Daily Breeze, based in the district of Rep. Laura Richardson, wrote about CREW's ethics complaint against the congresswoman.  Melanie Sloan's quote is right on target.  This is pretty bad and it doesn't make Congress look good at all.   

The complaint, filed by Citizens for Responsibility and Ethics in Washington, accuses Richardson of failing to disclose her mortgage debt and suggests she may have received preferential treatment from her lenders.

Richardson, a first-year Democrat who represents Carson, lost her Sacramento house in a foreclosure sale last month - leaving behind $9,000 in unpaid taxes - and has defaulted seven times on her two homes in Long Beach and San Pedro. She has also failed to pay smaller debts to local businesses until reporters inquired about them.

"This is pretty bad," said Melanie Sloan, executive director of CREW. "This just doesn't make Congress look very good. There seems to be building pressure on Richardson, and she's not exactly explaining herself."

Richardson did several interviews after the story first broke last month. But she refused to answer specific questions about her finances and has not been available since.

Today, CREW filed a complaint with the House Ethics Committee against Rep. Laura Richardson (D-CA). We asked for an immediate investigation into whether she has violated House rules. Specifically, CREW asked that the committee determine whether Rep. Richardson accepted a loan in violation of the House gift rule, failed to properly report a loan on her financial disclosure statements, and engaged in conduct that does not reflect creditably on the House by loaning her campaign money at a time when she was in default on her mortgage. Extensive background on Richardson's financial dealings can be found here.

When we filed the complaint, CREW's Melanie Sloan made this statement:

By failing to pay her debts, filing incorrect financial disclosure forms and funneling money that should have gone to pay her mortgage and property taxes to her congressional campaign, Rep. Richardson has signaled that legal and financial obligations can be ignored in the pursuit of political power. Richardson not only has shown exceedingly poor judgement, she has violated House ethics rules. She is unfit to be an elected official, at any level.

Earlier today, CREW's Melanie Sloan issued a blistering statement on the financial controversy swirling around Rep. Laura Richardson.  It's having reverberations.  This afternoon, the Capitol Hill newspaper, The Hill, gave prime coverage to that statement:

The Congressional watchdog group Citizens for Responsibility and Ethics in Washington (CREW) on Tuesday fired a shot at Rep. Laura Richardson (D-Calif.), describing her financial problems as “appalling” and calling her a “deadbeat congresswoman.” 

Richardson has been the subject of media scrutiny since she lost one of her three California homes to foreclosure in May. A review of state records showed that she has a long history of defaulting — a total of eight times since 2004 — on each of her three homes in the state.

The Hill reported last week that Richardson left off her financial disclosure statement the heavily indebted mortgage of her Sacramento home, which may be a violation of House ethics rules and federal law. Over the weekend the Long Beach Press Telegram reported that Richardson has a history of unpaid car repair bills. Since those reports were aired, Richardson apparently settled some of those debts, according to Los Angeles media outlets.

While stopping short of calling for an official ethics investigation, CREW Executive Director Melanie Sloan called Richardson’s financial situation “shocking.”

Melanie Sloan issued this statement today. Shocking and appalling are the key words to describe Rep. Laura Richardson's financial dealings:

Rep. Laura Richardson's (D-CA) appalling financial dealings raise serious questions about her ethics. Not only has Rep. Richardson defaulted on home loans eight times since 2004, she failed to pay a mechanic, a print shop and an auto body shop. And those are just the debts we've read about. With a history like this, there are sure to be other unpaid bills and financial irregularities yet uncovered. What kind of responsible adult – much less elected public official -- only pays her bills when she’s called out by journalists? How can Rep. Richardson effectively represent the same people she is cheating? We all know about 'deadbeat dads.' Now we have a deadbeat congresswoman.