Ex-Hill Staffer Charged in Kickback Scheme

Dec. 4, 2007— -- The ex-chief of staff to former Republican Rep. Curt Weldon of Pennsylvania was charged Tuesday with allegedly using his wife to accept kickbacks to help a consulting firm get federal funding.

Russell Caso worked for Weldon from 2004 until January 2007, when Weldon left office after losing his bid for re-election.

While working for Weldon, Caso allegedly used his wife to accept $19,000 in payments from a nonprofit consulting firm, referred to in court records as "Firm A." The firm specializes in helping American businesses operate in Russia, promoting U.S.-Russia trade.

Caso's wife earned $1,500 for reviews of Firm A's proposals, but did little else for the remaining $17,000, court documents show. According to the criminal information filed Tuesday in federal court, Caso is charged with one count of conspiracy to commit honest services wire fraud.

Weldon, who is referred to only as "Representative A" in court documents, served on the firm's governing council, according to court records.

Weldon and Caso, according to court records, "organized and attended meetings with high-level officials in Executive Branch agencies, including the Departments of State and Energy, and the National Security Council" in which they argued that "Firm A's" proposals should be federally funded.

When contacted by ABC News, Caso's attorney Kelly Kramer declined to comment.

Weldon, a 10-term representative, was defeated in the 2006 election by retired Vice Adm. Joe Sestak. Weldon was considered influential on Capitol Hill in foreign policy matters, especially Russian affairs.

Reports that Weldon and his daughter, Karen Weldon, were under federal investigation surfaced just weeks before the election.

Federal agents searched the home of Karen Weldon in October 2006 as part of an investigation into whether the congressman improperly used his influence to help her get a contract, according to sources familiar with the investigation.