Found the story you must be thinking of:
Fox News
"WASHINGTON ? House Democrats chose Rep. Alan Mollohan, D-W.Va., on Wednesday to head the appropriations subcommittee in charge of the budget for the Justice Department, which is investigating him for questionable land deals."
"Mollohan told members of the House Appropriations Committee last week that he will recuse himself from debate over the Justice Department budget, an effort to sidestep ethics questions relating to his elevation to "cardinal," one of 10 appropriations subcommittee chairman. The West Virginia Democrat will serve as chairman of the House Appropriations Commerce, Justice, Science and Related Agencies Subcommittee.
"To make certain that there is no basis for criticism of my service on the CJS Subcommittee, I have decided to recuse myself from any related Justice Department accounts," Mollohan said in a statement issued last week after questions were raised about the conflict. "I have written a letter to the chairman that details the recusal. I trust this will alleviate any legitimate concerns about my service."
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From another article, he was next in line for the post based on the house's seniority system, so it's more accurate to say "Pelosi did nothing to stop it" rather than implying she actively chose him.
He does sound like another corrupt member of congress that ought to be in prison, along with most of his fellow R's and D's in the House.