Hagedorn's office spent $440K on companies connected to staffers, review finds

After coming under public pressure over irregular spending, the office of First District Rep. Jim Hagedorn released an internal review over Labor Day weekend confirming improper connections between two Hagedorn staffers and printing contractors, yet stopping short of implicating the congressman in the misdeeds.

The review, filed by prominent ethics lawyer Elliott Berke (whom Hagedorn hired as counsel in June), confirms that Abernathy West and Invocq Technologies benefited from personal connections inside the congressional office. Both companies were awarded printing contracts for franked mail — mail sent with postage paid for by the U.S. government, a privilege reserved for members of Congress.

Hagedorn has repeatedly denied any personal wrongdoing, saying former chief of staff Peter Su — who was fired June 19, a day after the review began — handled all contractual obligations regarding franked mail. The report (remember, filed by hired counsel for Hagedorn) backs up his claim, saying the representative took “swift and corrective action” to stop the improper deals. 

However, Berke’s findings are irrefutable — both companies had connections inside the office of the Congressman, and both received handsome sums to print the mail.

“It appears that Abernathy West and Invocq charged Congressman Hagedorn’s office significantly more than the fair market for franking services,” the report reads. 

The Findings

Abernathy West LLC was awarded $339,000 in franking contracts by Hagedorn’s office between last fall and this spring. While the company is based in Delaware — the only state in America that does not require LLCs to publicly disclose its owners — the review states it is likely the company is owned by Szu-Nien Su — Peter’s brother. 

Neither Peter nor Szu-Nien denied a financial connection between the brothers when initially contacted by Berke. After both parties initially agreed to cooperate with the review process, the Sus went dark, refusing to respond to Berke’s attempts for contact.

Initially, the main subject of scrutiny was Invocq Technologies, a Texas-based graphic design firm owned by a Hagedorn staffer that received over $100,000 in franking contracts from the congressman’s office in the past year. The report confirms the basics — that the firm is owned by a Hagedorn staffer and received a printing contract above market value — but does not suggest there was any intentional impropriety.

John Sample, the owner and staffer in question, cooperated with the review process. Berke’s report states Sample offered the services of Invocq to Su after the latter said the franking proposals were “too cookie cutter.” Invocq, a graphic design firm with no previous franking experience, was selected after that conversation.

Through the entire printing process, Sample stated he was unaware of any potential ethics violations, going so far as to ask Su about the permissibility of such a contract. Sample was suspended for roughly three weeks, but was reinstated on July 9.

The report notes that Hagedorn is “ultimately responsible” for the actions of Su and Sample and says the Congressman has re-instituted an office policy to make sure all potential contracts with outside vendors are approved by him beforehand. 

Still, Berke’s report contends that Hagedorn, personally, is not and has not been in violation of any rules.

“Congressman Hagedorn acted in good faith and did not personally direct, profit, or intend for his office to bypass any established procedures or potentially/technically violate any rule of the House,” the report states.

Meanwhile, Minnesota DFL officials called for an independent investigation into the spending habits of Su and the rest of Hagedorn’s team, asserting that the report is a “damning” document. 

“Even a lawyer for crooked politicians couldn’t conceal the fact that there was massive wrongdoing in Hagedorn’s office and that an independent investigation is needed to get to the bottom of it,” said Minnesota DFL Chair Ken Martin. “Congressman Hagedorn is responsible for using almost half a million of our tax dollars to line the pockets of his employees.”

While it remains likely that the House Ethics Committee will open its own independent investigation into the spending, do not expect the committee to release any findings before Election Day.

Isaac Jahns is a Rochester native and a 2019 graduate of the Missouri School of Journalism. He reports on politics, business and music for Med City Beat.