WASHINGTON -- The House Ethics Committee concluded yesterday that Rep. Maxine Waters' rights have not been violated in a continuing investigation, clearing the way for the panel to determine whether the California Democrat tried to improperly steer federal money to a bank where her husband is a shareholder.

Her allegations of unfair treatment led to the extraordinary decision in February by the committee's five Republicans and its top Democrat to step away from the case. Six new members were added to handle the investigation and an outside lawyer, Billy Martin, was hired to investigate the committee's conduct.

The committee, with five members from each party, investigates whether lawmakers violated House rules and can recommend punishment such as a reprimand, censure or even expulsion. Waters, a senior member of the House Financial Services Committee, has denied wrongdoing.

A letter to Waters by the acting chairman, Rep. Robert Goodlatte (R-Va.) and the acting top Democrat, Rep. John Yarmuth of Kentucky, said Martin concluded that Waters' rights were protected and there was no wrongdoing. But the letter cited unauthorized leaks of investigative information by committee staff and by Waters.

Waters has contended that committee procedures did not give her a chance to present her case and unduly delayed the investigation, which began in late 2009.

The most explosive allegations, which led to the committee shake-up, centered on the leak of internal committee documents to the news media and communications among some staff investigators and Republican committee members.

From celebrating America's 250th birthday to a new ride at Adventureland, NewsdayTV's Elisa DiStefano and Newsday lifestyle editor Meghan Giannotta have your inside look at Newsday's summer FunBook. Credit: Newsday/Howard Schnapp, Kendall Rodriguez, Drew Singh; Anthony Florio, Randee Daddona, Morgan Campbell, Debbie Egan-Chin

Get ready for sun and fun with NewsdayTV's summer FunBook special! From celebrating America's 250th birthday to a new ride at Adventureland, NewsdayTV's Elisa DiStefano and Newsday lifestyle editor Meghan Giannotta have your inside look at Newsday's summer FunBook.

From celebrating America's 250th birthday to a new ride at Adventureland, NewsdayTV's Elisa DiStefano and Newsday lifestyle editor Meghan Giannotta have your inside look at Newsday's summer FunBook. Credit: Newsday/Howard Schnapp, Kendall Rodriguez, Drew Singh; Anthony Florio, Randee Daddona, Morgan Campbell, Debbie Egan-Chin

Get ready for sun and fun with NewsdayTV's summer FunBook special! From celebrating America's 250th birthday to a new ride at Adventureland, NewsdayTV's Elisa DiStefano and Newsday lifestyle editor Meghan Giannotta have your inside look at Newsday's summer FunBook.

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