Lobbyist's Offer Illegal Jobs to
Congressional Aides
NY Times
ANNE E. KORNBLUT
December 2, 2005
WASHINGTON, Dec. 1 - With a federal corruption case intensifying,
prosecutors investigating Jack Abramoff, the Republican lobbyist, are examining
whether he brokered lucrative jobs for Congressional aides at powerful lobbying
firms in exchange for legislative favors, people involved in the case have
said.
Jack Abramoff.
The attention paid to how the aides obtained jobs occurs as Mr. Abramoff is
under mounting pressure to cooperate with prosecutors as they consider a case
against lawmakers. Participants in the case, who insisted on anonymity because
the investigation is secret, said he could try to reach a deal in the next six
weeks.
Many forces are bearing down on Mr. Abramoff. Last week, his closest
business partner, Michael Scanlon, pleaded guilty to conspiracy in exchange for
cooperating in the inquiry, being run by an interagency group, into whether
money and gifts were used in an influence-peddling scandal that involved
lawmakers.
Despite charging Indian tribes that were clients tens of millions of dollars
in lobbying fees, Mr. Abramoff has told friends that he is running out of
money. In a new approach that could contribute to the pressures, prosecutors
are sifting through evidence related to the hiring of several former
Congressional aides by a lobbying firm, Greenberg Traurig, where Mr. Abramoff
worked from 2000 to last year, according to people who know about the inquiry.
That course could impel a new set of Mr. Abramoff's former associates to
cooperate to avoid prosecution.
Investigators are said to be especially interested in how Tony C. Rudy, a
former deputy chief of staff to Representative Tom DeLay of Texas, and Neil G.
Volz, a former chief of staff to Representative BobNey of Ohio, obtained
lobbying positions with big firms on K Street.
The hiring pattern is "very much a part of" what prosecutors are focusing
on, a person involved in the case said. Another participant confirmed that
investigators were trying to determine whether aides conducted "job
negotiations with Jack Abramoff" while they were in a position to help him on
Capitol Hill.
Prosecutors are trying to establish that "it's not just a ticket to a
ballgame, it's major jobs" that exchanged hands, the participant in the case
said. Also under examination are payments to lobbyists and lawmakers' wives,
including Mr. Rudy's wife, Lisa Rudy, whose firm, Liberty Consulting, worked in
consultation with Mr. Abramoff, people involved in case said.
What began as an inquiry into Mr. Scanlon and Mr. Abramoff's lobbying has
widened to a corruption investigation centering mainly on Republican lawmakers
who came to power as part of the conservative revolution of the 1990's. At
least six members of Congress are in the scope of the inquiry, with an
additional 12 or so former aides being examined to determine whether they gave
Mr. Abramoff legislative help in exchange for campaign donations, lavish trips
and gifts.
It may be difficult for prosecutors to translate certain elements of the
case into indictments. Bribery, corruption and conspiracy cases are notoriously
difficult to prove. But the potential dimensions are enormous, and the
investigation, at a time of turmoil for the Bush administration, threatens to
add a new knot of problems for the party heading into the elections next
year.
Several people involved in the case, insisting on anonymity because of the
plea negotiations, said they anticipated that Mr. Abramoff would try to reach
an agreement with the prosecutors in a rapidly closing window of time before he
is scheduled to stand trial in a separate federal case in Florida.
Mr. Abramoff and another business partner, Adam Kidan, were indicted in
August on charges of wire fraud and conspiracy for reportedly defrauding their
lenders as they sought to buy a company in Miami, SunCruz Casinos, that
operated a fleet of gambling boats.
That trial is to begin on Jan. 9.
A lawyer for Mr. Abramoff in the case, Neal R. Sonnett, declined to comment
on whether his client is conferring with prosecutors, indicating that he is
moving ahead as though there will be no plea agreement.
"I'm preparing for trial," Mr. Sonnett said.
After more than a year of slow progress in what initially appeared to be a
case of lobbying excess, the larger scope of the inquiry started to come into
view toward the end of September with the arrest of David H. Safavian, chief
procurement official in the administration.
Mr. Safavian is accused of lying to investigators and of obstruction of
justice. He is pleading not guilty, his lawyer has said. Prosecutors contend
that Mr. Safavian did not disclose to investigators business that Mr. Abramoff
had before his agency at the time of a golfing trip to Scotland arranged by the
lobbyist.
The focus also expanded from Mr. Abramoff's work for Indian tribes with the
end of hearings by the Senate Indian Affairs Committee. The hearings set out to
examine whether the tribes, which paid $82 million to Mr. Abramoff and Mr.
Scanlon, had been defrauded. The panel, headed by Senator John McCain,
Republican of Arizona, avoided looking at the ties between the lobbyists and
specific lawmakers, leaving that to the inquiry's interagency group.
The Senate hearings uncovered many patterns of Mr. Abramoff's activities,
including his offering favors to officials while making deals on government
work. In one case, a former senior Interior Department official, J. Steven
Griles, testified that Mr. Abramoff had offered him a position at Greenberg
Traurig while Mr. Griles was in a position to affect decisions involving Mr.
Abramoff's Indian clients. Mr. Griles said he reported the offer to his
department's ethics division and rejected it.
Prosecutors are trying to determine whether Mr. Abramoff made similar
overtures to other well positioned government workers, especially former aides
to Republican leaders in of the House and Senate. Such gestures could be
considered as bribery or a conflict of interest, especially if the interests of
the two parties were entangled.
Of particular interest, according to several people involved in the case,
are how Mr. Rudy, who left Mr. DeLay's office in 2001 to join Greenberg
Traurig, and Mr. Volz, who left Mr. Ney's office in 2002 for that firm,
obtained their positions. Investigators believe Mr. Abramoff may have solicited
help from both men and their supervisors on Capitol Hill while helping arrange
for high-paying positions, people familiar with case said.
Mr. Rudy now works for the Alexander Strategy Group, a lobbying firm run by
Ed Buckham, another former senior aide to Mr. DeLay. Alexander Strategy is also
under scrutiny for its ties to Mr. Abramoff and for putting Mr. DeLay's wife,
Christine, on its payroll for several years.
As investigators try to unravel the web of relationships between the
lawmakers and the lobbyists, they are considering spouses' roles, people
involved in the case said.
Neither Mr. Rudy nor Mr. Volz returned calls and e-mail messages seeking
comment on Thursday.
Hiring patterns offer a rich and complicated field for investigators.
Congressional staff members routinely leave for the private work, with the sole
prohibition a one-year ban on lobbying their former supervisors. Mr. DeLay is
so renowned for funneling his skilled staff members into lobbying firms across
Washington that his political network is known as "DeLay Inc."
Although Mr. DeLay was reprimanded by the House Ethics Committee in the late
90's for pressuring a lobbying firm to hire a Republican, the practice has
become so standard in an era of Republican dominance that partisans have given
it a name, the K Street Project.
What investigators seek is evidence of a quid pro quo between Mr. Abramoff
and the lobbyists he helped hire, lawyers and others involved in the case said.
They are especially interested in evidence that Mr. Abramoff discussed hiring
Mr. Rudy, Mr. Volz or other staff members before they left the government or
around the time they or their bosses were doing favors for Mr. Abramoff's
clients.
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