Bribery Investigation Hits the White
House
The Washington Post
Lawmakers Under Scrutiny in Probe of Lobbyist By Susan Schmidt and James V.
Grimaldi Washington Post Staff Writers Saturday, November 26, 2005; Page
A01
The Justice Department's wide-ranging investigation of former lobbyist Jack
Abramoff has entered a highly active phase as prosecutors are beginning to move
on evidence pointing to possible corruption in Congress and executive branch
agencies, lawyers involved in the case said.
Prosecutors have already told one lawmaker, Rep. Robert W. Ney (R-Ohio), and
his former chief of staff 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.
The 35 to 40 investigators and prosecutors on the Abramoff case are focused
on at least half a dozen members of Congress, lawyers and others close to the
probe said. The investigators are looking at payments made by Abramoff and his
colleagues to the wives of some lawmakers and at actions taken by senior
Capitol Hill aides, some of whom went to work for Abramoff at the law firm
Greenberg Traurig LLP, lawyers and others familiar with the probe said.
Former House majority leader Tom DeLay (R), now facing separate campaign
finance charges in his home state of Texas, is one of the members under
scrutiny, the sources said. Sen. Conrad Burns (R-Mont.), Rep. John T. Doolittle
(R-Calif.) and other members of Congress involved with Indian affairs, one of
Abramoff's key areas of interest, are also said to be among them.
Prosecutions and plea deals have become more likely, the lawyers said, now
that Abramoff's former partner -- public relations executive Michael Scanlon --
has agreed to plead guilty to conspiracy and to testify about gifts that he and
his K Street colleagues showered on lawmakers, allegedly in exchange for
official favors.
An attorney for DeLay, whose wife worked for a lobbying firm that received
client referrals from Abramoff, said there was no connection between her work
and congressional business. A spokesman for Doolittle, whose wife received
payments from Abramoff's lobbying firm, also said there was no connection with
her husband's position. Burns's office has said his actions were consistent
with his support for improving conditions for Indian tribes.
Ney is the congressman whose name has surfaced most prominently in the
Abramoff investigation. His spokesman and attorney have said for weeks that Ney
has not been told he is a target of the inquiry, even while acknowledging that
his office has received a grand jury subpoena and that his activities were
mentioned in Scanlon's plea agreement.
But the sources said that during the third week of October prosecutors told
Ney and his former chief of staff, Neil Volz, that they were preparing a
bribery case based in part on activities that occurred in October 2000.
Abramoff and another business partner, Adam Kidan, were also told that they are
targets in that case, the sources said.
The five-year statute of limitations for filing charges based on those
events expired last month; the prosecutors sought and received a waiver of the
deadline from all four men while they continue their investigation, the sources
said. Prosecutors are often able to obtain such waivers by giving the targets a
choice of being indicted right away or granting more time to see if information
might surface that exonerates them.
Ney's attorney, Mark H. Tuohey, did not return calls seeking comment on the
waiver. Ney spokesman Brian Walsh said the office had no comment, as did a
lawyer for Volz.
The attorneys of Abramoff and Kidan did not return calls seeking
comment.
The events in 2000 that interest investigators are connected to the purchase
by Abramoff and Kidan of SunCruz Casinos, owner of a fleet of Florida gambling
boats. Ney twice placed comments in the Congressional Record about SunCruz,
first criticizing its former owner when Abramoff and Kidan were in difficult
purchase negotiations and then, in October, praising Kidan's new management.
Abramoff and Kidan are facing trial in January on charges of defrauding lenders
in their purchase of the casino boats.
The statute of limitations may also soon run out on a 2001 Super Bowl trip
sponsored by SunCruz that sources said investigators have reviewed. The
Washington Post reported earlier this year that aides to Burns and DeLay were
ferried to Tampa on a SunCruz corporate jet arranged by Abramoff. Ney and his
sons were invited to the 2001 Super Bowl outing, former Abramoff associates
said, but did not go.
The Hill aides were treated to the game and a night of gambling on a Sun
Cruz ship. They were offered $500 in gambling chips, sources knowledgeable
about the trip said.
The Post has reported that Burns, who received $137,000 in contributions
from Abramoff lobbyists and their tribal clients, obtained a controversial $3
million school construction grant for one of Abramoff's wealthy tribal clients
after pressuring the Bureau of Indian Affairs.
Investigators are also gathering information about Abramoff's hiring of
several congressional wives, sources said, as well as his referral of clients
to Alexander Strategy Group, a lobbying and consulting firm run by former
senior aides to DeLay. Financial disclosure forms show that the firm employed
DeLay's wife, Christine, from 1998 to 2002.
Former Abramoff lobbying associates have said that Abramoff shared some of
his high-paying clients with the group, including Malaysian interests, the
Mississippi Choctaw Indian tribe and online gambling firms. Federal
investigators have questioned some former Abramoff associates about whether
those referrals were related to Christine DeLay's employment there, sources
said.
Alexander Strategy Group is run by former DeLay senior staffers Edwin A.
Buckham and Tony C. Rudy. Rudy served as DeLay's deputy chief of staff until
2001, when he took a job with Abramoff, and later moved on to join Buckham.
Investigators are looking into whether Rudy aided Abramoff's lobbying
clients while he was working on the Hill, the sources said, and are reviewing
payments from Abramoff clients and associates to Liberty Consulting, a
political firm founded by Rudy's wife, Lisa. The Washington Post reported last
month that Rudy, while on DeLay's staff, helped scuttle a bill opposed by
eLottery Inc., an Abramoff client, and that Abramoff had eLottery pay a
foundation to hire Liberty Consulting.
Richard Cullen, an attorney for the DeLays, said Christine DeLay was hired
by Buckham, an old family friend, to determine the favorite charity of every
member of Congress. She was paid $3,200 to $3,400 a month for three years, or
about $115,000 total, he said.
"It wasn't like she did this 9 to 5, but it was an ongoing project," Cullen
said. He said Christine DeLay's work was commensurate with the project and had
nothing to do with her husband or any official congressional business. "This
was something that she found to be very interesting, very challenging and very
worthwhile," Cullen said.
Rudy and Buckham and their attorneys did not return calls seeking
comment.
Abramoff's connections to Doolittle are also of interest to investigators,
sources said. Doolittle's former chief of staff, Kevin A. Ring, went to work
with Abramoff. Doolittle's wife, Julie, owned a consulting firm that was hired
by Abramoff and his firm, Greenberg Traurig, to do fundraising for a charity he
founded. Two sources close to the investigation said that Ring, while working
for Abramoff, was an intermediary in the hiring of Julie Doolittle's firm,
Sierra Dominion Financial Solutions Inc., which last year received a subpoena
from the grand jury investigating Abramoff.
Julie Doolittle's attorney, William L. Stauffer Jr., said Sierra Dominion
Financial was hired by Greenberg Traurig to provide "event planning, marketing
and related services, as requested by Mr. Abramoff" for Abramoff's Capital
Athletic Foundation and his Signatures restaurant. Sierra Dominion received a
monthly retainer from Greenberg Traurig from January 2003 until February 2004,
at a rate similar to that paid by other Sierra Dominion clients, Stauffer
said.
Abramoff frequently used the athletic foundation as a pass-through
organization to run lobbying efforts and to pay for expenses, records show.
Julie Doolittle was hired to put on a fundraiser for the foundation at the
International Spy Museum, but the event was canceled because it had been
scheduled to take place just at the Iraq war was commencing, Stauffer said.
"Sierra Dominion primarily performed public relations and other event
planning services for the Spy Museum event," Stauffer said in an e-mail reply
to questions. "This included responding to all individuals calling the Capital
Athletic Foundation concerning the Spy Museum event, identifying (and
contacting) possible attendees for the event, and assisting in fund raising
strategy and letters."
Doolittle's office denied any connection between the firm's work and
official acts.
"In no way did Sierra Dominion's business services work for Greenberg
Traurig have any relationship to Congressman Doolittle's official duties as a
member of the House of Representatives," said Doolittle spokeswoman Laura
Blackmann.
"Congressman Doolittle has never received a subpoena regarding this matter,
nor has he ever been contacted by the Justice Department to provide information
or be questioned," she said.
The Justice Department investigation is also looking into Abramoff's
influence among executive branch officials. Sources said prosecutors are
continuing to seek information about Abramoff's dealings with then-Deputy
Interior Secretary J. Steven Griles, including a job offer from the lobbyist at
a time when he was seeking department actions on behalf of his tribal
clients.
The former top procurement official in the Bush administration, David H.
Safavian, has already been charged with lying and obstruction of justice in
connection with the Abramoff investigation. Safavian, who traveled to Scotland
with Ney on a golf outing arranged by Abramoff, is accused of concealing from
federal investigators that Abramoff was seeking to do business with the General
Services Administration at the time of the golf trip. Safavian was then GSA
chief of staff.
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