Ethics fight hits Rep. Charles Rangel's campaign funds; could hurt him in 2010 election

BY Michael Saul

DAILY NEWS SENIOR POLITICAL CORRESPONDENT

Saturday, October 17th 2009, 4:00 AM

Handschuh/News

Rep. Charlie Rangel has spent $1.1 million since a House Ethics Committee probe into his personal finances began nearly 13 months ago.

Rep. Charles Rangel's campaign coffers are being drained by his battle to survive an ethics probe, leaving him vulnerable to a well-funded challenger next year.

The Harlem Democrat spent more than $250,000 in campaign cash on legal fees from July 1 to Sept. 30, newly released records show - 56% of his total expenses for the period.

His overall lawyer bills now total $1.1 million since a House Ethics Committee probe into his personal finances began nearly 13 months ago, and they are still mounting.

But Rangel's fund-raising for 2010 is down by more than half compared with his 2008 reelection bid, leaving him with just $1.1 million in the bank, compared with $1.8 million two years ago.

It's one more reason potential challengers are coming into the open, seeing the best chance in decades to oust the 79-year-old Rangel from the seat he has held for 39 years.

Assemblyman Adam Clayton Powell 4th (D-Harlem), a son of Rangel's legendary predecessor, the late Adam Clayton Powell Jr., said on Friday he plans to launch an exploratory committee in the next several weeks.

When told about Rangel's legal bills, Powell replied, "Good. Maybe he will run out of money for the campaign."

Powell, who unsuccessfully challenged Rangel in 1994, called the ethics scandal "embarrassing." He echoed Republicans who called on Rangel to step aside as chairman of the House Ways and Means Committee while awaiting the outcome of the investigation.

A Rangel spokesman did not return a call for comment.

Ex-Rangel aide Vincent Morgan also has announced he plans to challenge Rangel in the Democratic primary next September.

It's too early to know how adept they will be at raising money, or if other candidates will emerge.

And Rangel allies still predict challengers will face an uphill battle unless the Ethics Committee report is damning.

"People are too sophisticated uptown to try and get rid of a Ways and Means chair," said Assemblyman Keith Wright, the Manhattan Democratic chairman.

And Rangel has shown no inclination to step down willingly.

"Kings don't give up their crowns easily," said one Rangel friend who spoke to The News on condition of anonymity.

Rangel's troubles include not paying taxes on rental income from his vacation villa in the Dominican Republic and his failure to report assets totaling hundreds of thousands of dollars on his annual disclosure reports. Those included a credit union account worth a hard-to-overlook $500,000.