Wednesday, February 25, 2009 5:42 PM

PMA's Exodus Grows; Founder Hires a Lawyer

The wild exodus of lobbyists from embattled defense lobbying shop PMA Group is growing, with more spinoff firms starting and tensions apparently building over where longtime PMA clients will move their business.

Further, National Journal has learned that PMA founder Paul Magliocchetti has hired William E. Lawler III, a prominent criminal lawyer with Vinson & Elkins, to represent him in the ongoing federal investigation of PMA. Lawler confirmed that he is representing both Magliocchetti and PMA. The firm, which was raided by the FBI last November, is under scrutiny in a federal probe into possibly illegal campaign donations, including potential reimbursements to so-called "straw donors."

In recent weeks, veteran lobbyists have fled PMA to open their own shops. One is Federal Business Group, which boasts five former PMA lobbyists, including Brian Morgan, and is currently working out of the PMA suites in Arlington, Virginia. Two sources say that some clients have received communications from Magliocchetti suggesting he prefers existing clients go with Federal Business Group.

The other major new shop is Flagship Government Relations, which opened its doors earlier this month with eight former PMA lobbyists. It says it is making headway in trying to sign up PMA clients. "We're very pleased and encouraged about clients joining us," said Kaylene Green, president of Flagship, adding that Flagship expects to start registering new clients soon.

Last year, PMA was the tenth largest lobbying firm in Washington in terms of revenues and boasted such big-name clients as General Dynamics and Lockheed Martin. It also represented many smaller defense firms. PMA is slated to close its doors at the end of next month and has recently shut down its political action committee.

Patrick Dorton, a spokesman for PMA who is with the firm Rational PR, said, "It seems like clients are making their transition decisions based on their relationships with their individual staff lobbyists."

Meanwhile, retired Navy Captain Joe Littleton, a 14-year veteran of PMA, is about to bail out. In an e-mail dated February 14, Littleton informed old friends that he was going to be "moving on in the near future" to Defense Strategic Advantage, a small firm that he launched about a year ago.

The PMA Group's dwindling ranks have been partly spurred by federal probers' interest in PMA-linked donations to several members of Congress with whom the firm has long had close ties. The most prominent are House Defense Appropriations Subcommittee Chairman John Murtha, D-Pa - for whom Magliocchetti used to work - and Rep. Pete Visclosky, D-Ind.

Roll Call and The Washington Post recently reported that in 2006 PMA added two Florida-based friends and neighbors of Magliocchetti to the lobbying firm's board of directors. The two were not lobbyists, but quickly became big political donors.

According to the Center for Responsive Politics, PMA lobbyists and clients have donated almost $197,000 -- more than any other firm -- to Visclosky during his career. Visclosky has said he's giving to the Treasury Department $18,000 of the donations that came from the two newly added PMA board members.

Since its founding in 1989, PMA has donated $167,000 to Murtha's campaign coffers, according to the center. Murtha has not indicated whether he will return any PMA donations. At this stage, there is no evidence that these members or any others are targets of the probe.

                                                                                                              -- Peter H. Stone

UPDATE -- Feb. 26, 12:35 p.m.

Matt Mazonkey, communications director for Rep. John Murtha, D-Pa., wrote to us: "Mr. Magliocchetti never worked for Congressman Murtha. He was a staff analyst for the defense appropriations subcommittee, and reported to the chairman, who was Cong. Bill Chappell [D-Florida], at the time of his appointment and the full committee Chairman Jamie Whitten [D-Miss.]. He was never a staffer of Murtha's.