Tony Podesta said he is increasing his oversight capacity at this firm. | John Shinkle/POLITICO K Street gears up for Issa probes

House Republicans say their top priority this year is jobs, and one place they’re already creating work is a few blocks from Capitol Hill, on K Street.

Lobbying shops and law firms are ramping up their investigations practices and promoting their high-end consulting services to corporate clients who might find themselves in the cross hairs of one of the many oversight investigations the GOP plans to launch in the next two years.


Two expected beneficiaries of the upswing in investigations are the Podesta Group, a lobby shop, and Dickstein Shapiro, a Washington law firm. Both groups say K Street will see an increase in business from entities that will face questions about stimulus funds, government regulations or a host of other issues congressional panels might probe.

Tony Podesta, the firm’s namesake, said he is increasing his oversight capacity — “it’s a burgeoning area of practice,” Podesta told POLITICO. David Marin, a Podesta investigations lobbyist, said he’s been “sharing stories” from trade associations in response to letters sent by House Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.) to more than 100 of the trade groups inquiring about the potential pitfall of regulation.

Mark Paoletta, a top investigations lawyer for Dickstein Shapiro, met with a recipient of substantial government stimulus money about representing its interests, anticipating that it might find itself in front of congressional investigators skeptical of the stimulus spending. Dickstein Shapiro also hit the road recently to sell both a health care company and an energy company on its Washington services, mentioning its work in the investigative realm.

Dickstein Shapiro and Podesta aren’t alone. Covington & Burling distributed a flier to its clients, reminding them it can provide “guidance for companies that may be in the cross hairs” of a House oversight committee investigation. It was the second update on oversight it had given clients in a few months.

Firms are reluctant to disclose how much investigatory representation runs, but several K Street sources say preparing a company to respond to a subpoena could cost a corporation between $500,000 and $1 million. This could be in addition to money the company pays to retain a law firm.

When told of the K Street reaction, Issa suggested that those targeted in his probes will need accountants rather than lawyers.

“We’re about money; we’re about waste, fraud and abuse,” Issa told POLITICO. “They don’t have to have lawyers; they have to have accountants. We’re primarily about waste; we’re primarily about efficiency. If there’s outright fraud, I’m sure they’ve already got their lawyers. We’re looking for efficiency in government and efficiency in the private sector by clearing impediments to job creation.”

This uptick on K Street won’t be only because of Issa, though his committee is expected to have the most activity. Issa has vowed to investigate topics ranging from corruption in the Afghan government to WikiLeaks to Fannie Mae and Freddie Mac.

Other committees also plan to dive deep into the investigations pool. Committees like Ways and Means, Financial Services, Energy and Commerce and Appropriations are expected to launch into oversight this session.

Usually, lobbyists are hired because of their extensive knowledge of an industry. But oversight investigations are a cottage industry unto themselves, and the best operators know the process inside and out.

“The firms that will benefit from this increased activity are the firms with people who know the tricks of the investigative trade and aren’t strangers to congressional inquiries or congressional testimony,” Marin said, echoing his pitch for Podesta. “There are tricks to this activity.”

And how to best prepare is a point of contention. Lobbying shops scoff at law firms that position themselves as the operators most useful for oversight — and vice versa.

The two fields provide different services to investigations clients. Marin said he counsels clients on strategy, including whether the inquiry is driven by politics or policy, how the lawmakers on the committee operate and how to frame issues for maximum effectiveness and the ins and outs of committee workings.

Law firms generally focus their efforts on more technical tasks — for example, helping clients navigate a hearing by narrowing document production, in addition to providing inside insight on the committee’s dynamics.

Paoletta, Dickstein Shapiro’s top congressional investigations attorney, was the Energy and Commerce Committee’s top investigative hand for nearly a decade, working under three GOP chairmen. Paoletta is joined by Andrew Snowdon, also a former Energy and Commerce investigative hand.

On the lobbying side, Podesta boasts Marin, who was the staff director on the oversight committee under former Chairman Tom Davis (R-Va.). Podesta also has Paul Brathwaite, who was a top Congressional Black Caucus aide to Maryland Rep. Elijah Cummings, now the top Democrat on the oversight committee.

Some companies are even considering putting lawyers on retainer in Washington to avoid being caught off guard.

“I have been talking to several companies about the new Congress and the potential that there may be significant oversight activity,” said Paoletta. “Unfortunately, most companies, even really sophisticated companies, don’t focus on oversight until they have a letter from a chairman. And then it is zero to 60 in four seconds.”

Chris Frates contributed to this report.