The PMA Group, a well known K Street lobbying shop that specializes in defense appropriations work and boasts strong ties to Rep. John Murtha, D-Pa., is in turmoil, with several of its veteran lobbyists trying to put together a buyout deal with Paul Magliocchetti, the firm's principal owner and a former staffer on the Defense Appropriations Subcommittee, which Murtha chairs.

Meanwhile, at least three of the PMA's lobbyists who specialize in health care issues have set up a separate health care practice that is housed at the PMA office in Arlington, Va., and which shares some clients with the firm. At least one other lobbyist recently left the firm to work in-house for a PMA client.

Sources say that a potential buyout deal involving a majority of the two-dozen or so professionals at the firm has been under discussion for a while, but its fate is still unclear. "There are ongoing discussions about the structure of the firm going forward," said Patrick Dorton, a principal at Rational PR and a spokesman for PMA. He declined to provide specifics.

It's not clear what has prompted the buyout offer at this time, although the firm and Murtha have both come under increasing scrutiny from the media and watchdog groups because of their ties. PMA has been a lucrative lobbying shop for many years; in 2008, it reported revenues of $13.8 million. Historically, the firm has represented dozens of both large and small defense clients -- among them such household names as General Dynamics and Lockheed Martin -- which have received millions of dollars in defense earmarks courtesy of Murtha who, in turn, has received hundreds of thousands in campaign contributions from many of these contractors.

The nonpartisan group Citizens for Responsibility and Ethics in Washington alleges that Murtha helped funnel $100.5 million to PMA clients in the fiscal 2008 defense appropriations bill. CREW also noted that since the second quarter of 2007 PMA and 10 of its clients kicked in almost $191,000 to Murtha's campaign coffers, making them among the top 20 donors to the congressman.

The buyout discussions are taking place at a time when Murtha's links to defense contractors appear to be under increasing federal scrutiny. Earlier this month, agents from the FBI, the IRS and the Defense Criminal Investigative Service raided the offices of Kuchera Industries and Kuchera Defense Systems in Pennsylvania. According to press reports, the firms have in recent years received over $100 million in earmarks through Murtha and the companies and their employees have donated more than $65,000 to Murtha's leadership PAC and his campaigns. Kuchera is represented in Washington by Ervin Technical Services, which also has close links to Murtha and is chaired by former Rep. Joseph McDade, R-Pa.

                                                                                       -- Peter H. Stone and Bara Vaida