Former Aide to DeLay Pleads Guilty in
Conspiracy Case
NY Times
November 21, 2005
WASHINGTON, Nov. 21 - Michael Scanlon, former aide to a powerful congressman
and onetime partner of a wealthy lobbyist, pleaded guilty today to a federal
conspiracy charge as part of a deal in which he agreed to cooperate with an
investigation into possible wrongdoing by some lawmakers.
Michael Scanlon agreed to pay restitution totaling more than $19 million to
the tribes and faces up to five years in prison.
Mr. Scanlon's comedown from a young and wealthy Washington power-player to
disgraced felon, formalized before Judge Ellen Segal Huvelle of Federal
District Court here, had been expected. But it still may have sent shivers down
Capitol corridors.
Mr. Scanlon agreed to pay restitution totaling more than $19 million to the
tribes and faces up to five years in prison. He was allowed to remain free on
$5 million bond. After pleading guilty, the well-tanned Mr. Scanlon appeared
incongruously cheerful. Asked by reporters why he was smiling, he replied, "I'm
always smiling."
Mr. Scanlon, 35, was accused of conspiring to defraud Indian tribes out of
millions of dollars as part of a lobbying and corruption scheme that involved
wining and dining of some lawmakers, treating them to lavish trips and
contributing to their campaigns.
Representative Bob Ney, an Ohio Republican, who heads the House
Appropriations Committee, was alluded to in the indictment (although not by
name) as a main beneficiary of largess, in return for helping Mr. Abramoff and
Mr. Scanlon with their clients.
Lawyers involved in the case have confirmed that Mr. Ney is the
"Representative #1" cited in the indictment. The congressman - who has not been
charged - has asserted that he was duped by the two and is cooperating with
prosecutors, a spokesman for Mr. Ney says.
Mr. Scanlon's lawyer, Plato Cacheris, was asked whether any other members of
Congress had anything to fear. "I have no comment on that," he replied.
Until recently, Mr. Scanlon occupied a powerful - and lucrative - position
at the intersection of political power and lobbying influence. For several
years, he worked as a top aide to Representative Tom DeLay of Texas, the
Republican majority leader. He left Mr. DeLay's office in 2000 to become an
associate of Jack Abramoff, a Republican lobbyist.
Mr. Abramoff and Mr. Scanlon earned more than $80 million representing a few
wealthy Indian tribes on gambling issues. Those transactions have been under
investigation by the Senate Indian Affairs Committee as well as federal
prosecutors.
In an e-mail message made public by the committee, Mr. Scanlon seemed to
lust for wealth, and seemed to see the Indian tribes as easy targets. "I want
all their money!!!" he wrote of one tribe in 2002. Referring to the money
available from another tribe, he exclaimed, "Weeez gonna be rich!!!"
Mr. DeLay has been indicted in Texas on charges involving political
fund-raising that are not related to the inquiry in which Mr. Scanlon pleaded
guilty today. And Mr. Abramoff has been indicted in Florida on unrelated
fraud-and-conspiracy charges involving an attempt to buy a fleet of casino
boats.
Like Mr. Ney, Mr. DeLay has been named as a beneficiary of Mr. Abramoff's
and Mr. Scanlon's generosity. He, too, has denied wrongdoing. Mr. Cacheris,
when asked whether Mr. DeLay had reason to worry over Mr. Scanlon's cooperating
with prosecutors, said, "You'll have to ask his lawyers."
|