Metzenbaum Role in Hotel Sale Cleared
Sen. Howard M. Metzenbaum (D-Ohio) did not violate District of Columbia law when he collected $250,000 for his role in the 1983 sale of the Hay-Adams Hotel, the city's Real Estate Commission decided yesterday.</br></br>Metzenbaum collected the finderÛªs fee for acting as an intermediary between the owner of the Hay-Adams, Jeffrey I. Friedman, a friend and contributor to the senatorÛªs last two election campaigns, and David H. Murdock of Los Angeles, who subsequently bought the hotel for $30.5 million.</br></br>The cityÛªs Office of Compliance told the Real Estate Commission its investigation showed that the senator "did not act as a real estate broker or salesperson in the saleÛ of the hotel. The office "has determined that this matter merits no further action,Û said Artis G. Hampshire, chief of the office, in a memo accompanying the investigation report.</br></br>The commissioners accepted the recommendation, finding in a unanimous vote that Metzenbaum did not break "any provision of the District of Columbia real estate act, rules or regulations.Û The law requires brokers and sales agents working in the city to hold a D.C. real estate license.</br></br>Metzenbaum returned the fee last May, along with $24,524.59 in interest, after widespread reports of the payment. The senator said he decided to return the money because ÛÏI have been in public life long enough to know that reality and perception can be easily confused.Û