Rangel promises independent investigation of finances

WASHINGTON (CNN) -- Rep. Charles Rangel, the chairman of the House Ways and Means Committee, will hire forensic accountants to investigate his financial statements over the past two decades, his lawyer said.

The firm, which has yet to be hired, will review Rangel's tax returns and other financial documents and compile a report on any financial improprieties or back taxes the chairman owes, lawyer Lanny Davis said.

Rangel would pay any back taxes he owes with penalties and would wave the normal three-year statue of limitations, Davis said.

Davis predicted that the firm would be able to produce the report relatively quickly.

"Mr. Rangel is a simple man. He has not had complicated partnerships, investments, investment strategies. He has a relatively simple financial life and not a lot of wealth," he said.

The firm will send its report on Rangel's finances directly to the House Ethics Committee, which is looking into Rangel's finances after questions were raised about some real estate transactions. Rangel has admitted he owed $5,000 in back taxes after he failed to report income from a rental property in the Dominican Republic.

Davis said Rangel welcomes the ethics panel investigation. Davis said he advised the New York Democrat not to comment further on the matter until the investigation is over.

"It's now down to a subject with the facts, and nothing but the facts," he said. "I have advised him that it is now a matter with the ethics committee."

Rangel said asked for the independent investigation because "he never meant to conceal" his finances, Davis said.

"He wanted to show in as many ways he has possibly could, that he did not do anything intentionally wrong," Davis said.

Asked by reporters on a conference call why the ethics committee would accept a report paid for by Rangel, Davis said, "If the ethics committee decides to ignore it, that it is up to the committee.

"We do not want to see, talk to, or in any way guide this report, and it is up to the ethics committee to decide how much weight they want to give to this report," he said.

Rangel and his Democratic colleagues did not believe that "inadvertent" errors in his tax returns disqualify him from continuing to serve as the chairman of the House's main tax writing committed, Davis said.

He also denied reports Rangel was pressured by Speaker Nancy Pelosi to step down from his chairmanship while the investigation into his finances is under way, Davis said.

"Indeed, the speaker told Mr. Rangel that she was pleased that Mr. Rangel had initiated an investigation of himself with full transparency," Davis said.

Shortly after the call, Pelosi said, "I see no reason why Rangel should step down. He's called for ethics committee investigation. I long supported his call for ethics committee to look into that."

Rep. John Lewis, a Georgia Democrat who also sits on the Ways and Means Committee, said he supports Rangel remaining chairman and said other Democrats on the committee share his view.

House Majority Leader Steny Hoyer, the No. 2 Democrat in the House, said earlier on Tuesday that there was no reason for Rangel to step down.

"He's done exactly what a member should do -- that is ask the Committee on Official Conduct to review all the matters and all the issues that have been raised," Hoyer said.

Rangel's decision to hire an outside firm to investigate himself did not satisfy his Republican critics, however.

"Today, Nancy Pelosi and the Democrat-led Congress officially abandoned their promise to run the 'most ethical Congress in history' and instead embraced the politics of corruption with open arms," said Ken Spain, a spokesman for the National Republican Congressional Committee.

"It is comforting to know that in a time of financial crisis, Democrats are proudly standing by an individual who not only circumvented the very tax hikes he himself has authored, but then escaped responsibility by claiming he is incapable of keeping his own financial house in order."

CNN's Scott J. Anderson, Deirdre Walsh and Richard Allen Greene contributed to this report.

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