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Dozens Send Back Lobbyist's Donations    [

    To view the plea agreement click here: http://www.truthout.org/mm_01/5.010306abramoff_plea.pdf

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    http://www.washingtonpost.com/wp-dyn/content/custom/2005/12/28/CU2005122801183.html

    Abramoff Pleads Guilty to Three Felony Charges
    By William Branigin, Susan Schmidt and James V. Grimaldi
    The Washington Post

    Tuesday 03 January 2006

Plea bargain settles one of two fraud cases against lobbyist.

    Former high-powered lobbyist Jack Abramoff pleaded guilty today to three felony charges in a deal with federal prosecutors that helps clear the way for his testimony about members of Congress and congressional staffers in a wide-ranging political corruption investigation.

    Appearing crestfallen and speaking softly in U.S. District Court in Washington early this afternoon, Abramoff, 46, expressed "profound regret" for what he called his "multitude of mistakes" in a career that once brought him to the pinnacle of power and influence among Washington lobbyists. After pleading guilty to charges of conspiracy, mail fraud and tax evasion, he told U.S. District Judge Ellen S. Huvelle that he would spend "all my remaining days" seeking "forgiveness from the Almighty."

    Although the charges could bring Abramoff a sentence of up to 30 years in prison, the actual sentence is more likely to be a third of that if he fulfills his part of the plea agreement, lawyers said.

    The plea bargain settles one of two fraud and corruption cases against Abramoff, involving charges stemming principally from his lobbying activities in Washington on behalf of Native American tribes. The other case, arising from an indictment in Miami in connection with the purchase of a fleet of casino cruise ships, is expected to be settled by another plea agreement.

    Abramoff's attorneys and federal prosecutors agreed that his eventual sentence from the case in Washington will run concurrently with whatever sentence he receives in the Miami case.

    In addition, Abramoff and other defendants must make restitution of at least $25 million that was defrauded from clients, notably Indian tribes. On top of this debt, Abramoff owes the Internal Revenue Service $1.7 million as a result of his guilty plea to a tax evasion charge.

    The purpose of the conspiracy by Abramoff and co-defendants was "to enrich themselves by obtaining substantial funds from their clients through fraud and concealment," according to a criminal information document outlining the charges.

    The criminal information alleges that Abramoff bribed public officials, including a person identified only as "Representative #1." Details of the alleged acts indicate that Representative #1 is Robert W. Ney, a Republican congressman from Ohio. Abramoff is also accused of hiring congressional staffers and conspiring with them to lobby their former employers - including members of Congress - in violation of a one-year federal ban on such lobbying.

    Abramoff had been facing trial on fraud charges Jan. 9 in Miami in connection with the purchase of a Florida casino cruise ship company. His co-defendant in that case, Adam Kidan, agreed last month to plead guilty to conspiracy and wire fraud and to testify against Abramoff.

    Another former partner, Michael Scanlon, has pleaded guilty to conspiring to bribe a member of Congress and other public officials and has agreed to pay back more than $19 million of the more than $80 million that he and Abramoff charged Indian tribal clients.

    One of Abramoff's attorneys in Miami, Neal Sonnett, said his client had agreed to plead guilty to two of the six criminal charges in a federal indictment resulting from the 2000 purchase of the gambling ship company, the Associated Press reported. Abramoff and Kidan were indicted in August 2005 on charges of conspiracy, wire fraud and mail fraud in connection with the purchase of the SunCruz Casinos fleet from Miami businessman Konstantinos "Gus" Boulis.

    Scanlon, a former aide to Rep. Tom DeLay (R-Tex.), reached a plea agreement with federal prosecutors last fall, pleading guilty in November to conspiring to bribe Ney in a separate case. As part of that plea deal, Scanlon agreed to cooperate in the SunCruz case.

    According to the criminal information, Abramoff conspired with Scanlon and others "to corruptly give, offer and promise things of value, including money, meals, trips and entertainment, to public officials and their relatives" in return for official acts benefiting the defendants and their clients.

    The bribes to "Representative #1" included campaign contributions, tickets to sporting events, meals at an upscale Washington restaurant owned by Abramoff and "a lavish trip to Scotland to play golf on world-famous courses," the document says.

    In return, the lawmaker agreed "to perform a series of official acts to benefit defendant Abramoff's businesses, clients and others," including support for legislation, the placement of statements in the Congressional Record, meetings with Abramoff clients and promotion of a client's application to install wireless telephone infrastructure in the House of Representatives, the criminal information says.

    The document identifies Indian tribes in Mississippi, Louisiana, Michigan and Texas as among the Abramoff clients that were exploited by the defendants as part of various money-making schemes. The tribes hired Abramoff to advance their casino gambling interests.

    The tax evasion charge against Abramoff accuses him of falsifying financial records and concealing assets through the use of tax-exempt organizations.

    Abramoff, who has told others he is out of money, faced trial in Miami on charges that he defrauded lenders in the $147.5 million purchase of the SunCruz fleet of gambling boats based in Florida. Kidan pleaded guilty to conspiracy to commit fraud in the SunCruz purchase, telling a court he and Abramoff faked the wire transfer of a $23 million down payment to create the appearance that they were putting their own money into the purchase in order to obtain a $60 million loan.

    A guilty plea by Abramoff would be a major boost to federal prosecutors in an influence-peddling investigation that could become one of the largest corruption scandals in recent memory, involving as many as a half dozen lawmakers, a former top official at the Department of Interior and former and current congressional aides.

    Prosecutors are expected to seek information from Abramoff about official actions performed for his clients by the lawmakers, including DeLay, the former House majority leader, as well as by the former top Interior official, congressional aides and federal employees.

    DeLay has taken three overseas trips with Abramoff since 1997 - to the Mariana Islands, Moscow and the United Kingdom - and received more than $70,000 from Abramoff, his associates and tribal clients for his campaign committees.

    Investigating DeLay, who is facing separate campaign finance charges in Texas, could take up to a year and require the cooperation of other witnesses before issues surrounding the Texas Republican are resolved, according to people familiar with the case.

    Prosecutors are expected to act more quickly in the case of Ney, who accepted campaign contributions, skybox fundraisers, drinks, dinners, gifts and a golfing trip to Scotland while allegedly performing official actions that benefited Abramoff and his clients.

    Also of interest to prosecutors is former deputy Interior secretary J. Steven Griles, who received a job offer from the lobbyist in 2003 at a time when Abramoff was seeking department actions on behalf of his tribal clients.

    Griles, who held the No. 2 job at Interior from 2001 to 2004, has said he never tried to intercede on behalf of Abramoff's clients, but e-mails released by a Senate committee show more than a half-dozen contacts Griles had with Abramoff or with a woman working as the lobbyist's go-between. The contacts concerned gambling-related issues affecting four tribal clients who were paying Abramoff tens of millions of dollars for representation.

    Other lawmakers who had close dealings with Abramoff are Sen. Conrad Burns (R-Mont.), Rep. John T. Doolittle (R-Calif.) and other members of Congress involved with Indian affairs.

    Prior to resolution of any issues involving DeLay, prosecutors are continuing to investigate two of DeLay's top former deputies, Edwin A. Buckham and Tony C. Rudy. Abramoff maintained a business relationship with Buckham, who runs the Alexander Strategy Group with Rudy.

    Among the areas of interest are questions about client business steered to the Alexander Strategy Group at a time when the firm was hiring the spouses of members of Congress, including DeLay's wife, Christine DeLay, and Doolittle's wife, Julie Doolittle.

    Christine DeLay was paid about $115,000 over three years while performing a special project - contacting members of Congress to find out their favorite charity, according to here attorney.

    Julie Doolittle, whose records have been subpoenaed by a grand jury, was hired by Buckham to perform accounting work for the Korea-United States Exchange Council, a nonprofit organization created by Buckham and bankrolled by the Hanwha Group, a Korean conglomerate, Justice Department foreign registration documents show.

    Rudy is under investigation for assistance he allegedly provided Abramoff's lobbying clients while he was working for DeLay. Rudy helped Abramoff scuttle an anti-gambling bill on behalf of an Abramoff client in 2000. In early 2001, Rudy went to work for Abramoff for about 18 months before switching to Alexander Strategy.

    Payments from Abramoff clients and associates to Liberty Consulting, a political firm founded by Rudy's wife, Lisa, are also under review by the Justice Department.

    Tony Rudy met his future wife while working for Rep. Dana Rohrabacher (R-Calif.), a longtime friend of Abramoff's who was listed as a personal reference along with Tony Rudy on loan papers for the SunCruz deal.

    Prosecutors have already told Ney and the Ohio Republican's former chief of staff, Neil Volz, that they are preparing a possible bribery case against them, according to two sources knowledgeable about the matter who spoke on the condition of anonymity.

    Ney inserted statements into the Congressional Record to promote the SunCruz deal, praising Kidan and casting aspersions on SunCruz's then-owner, Boulis, during contentious purchase negotiations.

    Boulis was killed in a gangland-style hit in Fort Lauderdale on Feb. 6, 2001. Three men - including a business associate Kidan had hired to provide catering and security services for SunCruz - were charged last year in the Boulis murder.

    Ney's SunCruz statements came even though the gambling enterprise was thousands of miles away from his rural Ohio congressional district. Ney later said he was misled. Ney also promised to help one of Abramoff's tribal clients reopen a casino shut down by Texas authorities.

    --------

    Staff writers Susan Schmidt and Fred Barbash contributed to this report.

 

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    Dozens Send Back Lobbyist's Donations
    By Susan Milligan
    The Boston Globe

    Monday 02 January 2006

Lawmakers fear link to Abramoff.

    Washington - Members of Congress who once counted on super-lobbyist Jack Abramoff to help finance their campaigns have begun returning the cash they got from him and his clients, signaling a growing worry that ethics - and the scandal surrounding Abramoff - will become issues that could affect close House and Senate races in next year's midterm elections.

    Abramoff, a powerful Washington figure who owned a tony restaurant frequented by members of Congress, is under federal investigation for allegedly swindling American Indian tribes out of millions of dollars in lobbying fees and contributions to Abramoff's associates.

    With a court date looming Jan. 9 - and the possibility that Abramoff will cut a deal with prosecutors before that date - at least two dozen lawmakers have refunded money they fear could look tainted by Election Day in November.

    "They're obviously worried," said Michael Malbin, director of the nonpartisan Campaign Finance Institute. "If people get disgusted by the relationship between the people in power and the lobbyists, [Abramoff] is going to become their poster boy."

    If a lawmaker is not personally tied to any possible illegal activity involving Abramoff, then giving the money back could burnish his or her image with voters, Malbin said.

    But if, as many political analysts suspect, some senators or House members are linked to Abramoff and potentially illegal activity, Malbin said, then "returning the check won't begin to take care of the problem."

    Montana Senators Max Baucus, a Democrat, and Conrad Burns, a Republican, were the latest to return Abramoff-connected cash.

    Baucus returned $18,892, including $1,892 he had failed to report for use of Abramoff's skybox at a Washington, D.C., sports arena.

    Burns, who has been targeted by Democrats in November's election, gave back $150,000 in contributions before Christmas, reversing an earlier position that he would not return the money.

    "The contributions given to my political committees by Jack Abramoff and his clients, while legal and fully disclosed, have served to undermine the public's confidence in its government," Burns said in a statement explaining his reversal.

    A Burns aide said the senator has not been implicated in any of the Abramoff investigations, and has not hired a lawyer to handle the case.

    Abramoff's dealings are the subject of a Senate probe and a criminal investigation.

    Among the deals being scrutinized are contributions from the tribes who hired Abramoff to politicians and political groups associated with him, and overseas trips paid for by Abramoff and involving Tom DeLay, former House majority leader and Republican of Texas, among other political figures.

    Capitol Hill sources have also suggested that Abramoff gave free meals and drinks at his restaurant to lawmakers, in violation of a congressional rule barring gifts worth more than $50.

    Some political strategists and congressmen believe it's not necessary to return campaign donations simply because the contributor is under investigation.

    Carl Forti, spokesman for the National Republican Congressional Committee, said the committee has not recommend to GOP candidates that they return money from Abramoff or his clients.

    But on Capitol Hill, lawmakers are uneasy, worried that any connection to Abramoff could become a campaign liability that far outweighs the campaign help he may have given them.

    Senator Byron Dorgan, a North Dakota Democrat who, like Burns, sits on a congressional committee that oversees Indian tribes' issues, returned $67,000 in Abramoff-related donations a few days before Burns and Baucus gave back their campaign cash.

    "Members of Congress try to hold onto as much money as possible, until it becomes politically distasteful to hold onto it," said David Donnelly, national campaigns director for the Public Campaign Action Fund.

    He predicted that lawmakers who accepted contributions from Abramoff may face serious questions from their constituents on the campaign trail.

    "What it does is shine a very bright light on our campaign finance system," he said.

    Democrats intend to make ethics an issue against Republicans in next year's elections, using the indictments of DeLay on money-laundering charges unrelated to the Abramoff probe, and former vice presidential aide I. Lewis "Scooter" Libby for allegedly lying to a grand jury, to paint the GOP as a party immersed in scandal.

    New Hampshire Democrats have hounded the state's GOP representatives, Charles Bass and Jeb Bradley, to give back contributions they received from a DeLay political action committee.

    Bradley has returned such campaign contributions; Bass hasn't, but has called for DeLay to be replaced as the House leader.

    Democratic strategists compare the current series of Republican ethics headaches to the House banking scandal in the early 1990s, when dozens of lawmakers were found to have repeatedly written bad personal checks on their House bank accounts, some racking up hundreds of thousands of dollars in overdrafts - without penalties.

    Democrats believe the ensuing voter anger contributed to their loss of dozens of seats in 2004, giving control of the chamber to Republicans.

    The Abramoff and DeLay cases, Democrats believe, could help them pick up some seats next year and perhaps even regain majority control of the House.

    "My sense of this is that voters are cynical and angry to start, and that more scandal just makes matters worse," said Peter Fenn, a veteran Democratic consultant and former congressional staffer.

    He noted that former House speaker Jim Wright, Democrat of Texas, was forced to resign from Congress in 1989 because lobbyists bought large quantities of his books, then handed them out at fund-raisers.

    The Abramoff case "is clearly a much bigger scandal than the House bank or a book," Fenn said.

    But while DeLay limited his handouts to fellow Republicans, Abramoff spread his money around to lawmakers and candidates in both parties.

    According to an analysis prepared by the nonpartisan Center for Responsive Politics, Abramoff and his clients doled out more than $4.4 million to candidates since 2000, with $1.5 million of the money going to Democrats.

    While Democrats seek to taint Burns with the Abramoff scandal, the National Republican Senatorial Committee has gone on the offense, pointing out that Abramoff gave cash not only to Baucus, but to Harry Reid of Nevada, Senate minority leader and the Democrats' leader.

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