From the Daily News:
Rep. Gary Ackerman hosted a meeting between Israeli officials and a defense contracting firm whose stock he later sold at a big profit, in which he had invested money - and made a big profit, a Daily News probe has found.
The Queens Democrat put no money down when he obtained private stock in the company, Xenonics Inc., relying on $14,000 borrowed in 2002 from the company's top shareholder, a longtime friend.
The sweetheart loan required no collateral and had no written payback date, a potential violation of House ethics rules.
When the company went public, its stock soared. Ackerman says he repaid the loan at 6% interest and sold the stock for more than $100,000 in 2005 and 2006.
House ethics rules bar members of Congress from using Congressional resources to promote commercial enterprises, stating: "The prohibition against use of House resources to support unofficial undertakings clearly applies to support of business endeavors."
The rules also require written repayment plans for any loans Congress members take out. Ackerman confirmed he had no such written plan for the 2002 loan.
In the last few years, Ackerman arranged a meeting in his Washington office between Xenonics founder Alan Magerman and two Israeli officials, Magerman said.
Magerman said he tried to convince the Israelis to buy Xenonics' NightHunter, a high-powered flashlight used by the U.S. military. Magerman said Ackerman was "trying to be very helpful."
"He was nice enough to arrange the meeting," he said. Israel did not buy the product. Magerman said he was unaware Ackerman had invested in his company.
He gave various explanations about the loan from longtime friend Selig Zises, then Xenonics' top shareholder.
Zises said he "can't recall" if he discussed the meeting with Ackerman or Israeli officials.
You have to read this entire thing...they caught Gary fudging documents and everything.