According to a whistleblower who contacted the lawmaker, the businessman said Flynn had told him that sanctions on Russia would be "ripped up" as a priority in the new Trump government to help the nuclear scheme go ahead.
"Mike has been putting everything in place for us," the businessman, Alex Copson, managing director of nuclear power promoter ACU Strategic Partners, allegedly told the whistleblower.
The allegations posed new troubles for Flynn, who left the White House last February after barely three weeks and pleaded guilty last week to lying to FBI investigators in the Russia election meddling probe.
It also raised fresh questions on what Trump knew about Flynn's business plans when he appointed the retired three- star general to serve as his national security advisor.
Representative Elijah Cummings, the senior Democrat on the House Oversight Committee, recounted the whistleblower's allegations as part of a push to have Flynn and others testify to his committee.
Six months earlier, Copson had paid Flynn USD 25,000 to travel to the Middle East to help promote his scheme, and was excited about the possibility that it would move ahead.
The ACU plan involved some two dozen nuclear power plants around the Middle East, to be developed jointly by the United States and Russia.
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