http://news.yahoo.com/s/ap/20060103/ap_on_go_ot/lobbyist_fraud
Abramoff Pleads Guilty, Will Cooperate
By MARK SHERMAN and CURT ANDERSON, Associated Press Writers 3 minutes ago
WASHINGTON - Embattled lobbyist Jack Abramoff pleaded guilty Tuesday to
federal charges of conspiracy, tax evasion and mail fraud, agreeing to
cooperate in an influence-peddling investigation that threatens powerful
members of Congress.
In a heavily scripted court appearance, Abramoff agreed with U.S.
District Court Judge Ellen Huvelle when she said he had engaged in a
conspiracy involving "corruption of public officials." The lobbyist also
agreed when she said he and others had engaged in a scheme to provide
campaign contributions, trips and other items "in exchange for certain
official acts."
"Words will not ever be able to express my sorrow and my profound regret
for all my actions and mistakes," Abramoff said, addressing the judge.
"I hope I can merit forgiveness from the Almighty and those I've wronged
or caused to suffer."
To each of the three charges, Abramoff said, "I plead guilty, your
honor." Huvelle and lawyers in the case said Abramoff had agreed to make
an estimated $25 million in restitution to his victims and pay $1.7
million to the Internal Revenue Service for taxes he evaded. As is
typically the case in such pleadings, what happened in the courtroom
Tuesday was arranged in advance between lawyers for the defendant and
the prosecutors.
According to the plea agreement, prosecutors will recommend a sentence
of 9 1/2 to 11 years, providing he cooperates with federal prosecutors
in a wide-ranging corruption investigation that is believed to be
focusing on as many as 20 members of Congress and aides.
Assistant Attorney General Alice S. Fisher said the Justice Department
will pursue the investigation "wherever it goes."
"We're going to expend the resources to make sure people know that
government is not for sale," she said at a news conference.
Abramoff's activities went "far beyond lawful lobbying to the illegal
practice of paying for official acts," she said. "The Justice Department
will aggressively investigate and prosecute these types of cases which
have a devastating impact on the public's trust of government."
Abramoff's travels with former House Majority Leader
Tom DeLay are already under criminal investigation. The lobbyist's
interactions with the Texas Republican's congressional office frequently
came around the time of campaign donations, golf outings or other trips
provided or arranged by Abramoff for DeLay and other lawmakers. In all,
DeLay received at least $57,000 in political contributions from
Abramoff, his lobbying associates or his tribal clients between 2001 and
2004.
Court papers released Tuesday also detailed lavish gifts and
contributions that Abramoff gave an unnamed House member, identified
elsewhere as Rep. Bob Ney (news, bio, voting record), R-Ohio, chairman
of the House Administration Committee, in return for Ney's agreement to
use his office to aid Abramoff clients.
Ney said Tuesday, "At the time I dealt with Jack Abramoff, I obviously
did not know, and had no way of knowing, the self-serving and fraudulent
nature of Abramoff's activities."
Abramoff also was expected to plead guilty in Florida to two of the six
charges in a federal indictment, according to his lawyer there, Neal
Sonnett. A change of plea hearing has been scheduled in Miami for
Wednesday afternoon, Justice officials said.
Abramoff attorney Abbe Lowell said that 18 months ago Abramoff made
contact with prosecutors "to admit his wrongdoing and to seek
forgiveness from those he has wronged. He intends to continue to work
with the Justice Department and others to fully resolve all matters of
interest, to provide restitution to anyone he has harmed, and to seek
absolution from all."
Prosecutors say Abramoff and Scanlon conspired to defraud Indian tribes
in Louisiana, Michigan, Mississippi, New Mexico and Texas of millions of
dollars. Abramoff reaped roughly $20 million in hidden profits from the
scheme, according to the information. Lobbying partner Michael Scanlon
pleaded guilty in November.
Abramoff and Scanlon also lavished a golf trip to Scotland and other
things of value on Ney, the court document said. Ney has denied doing
anything wrong.
The Bush administration's former chief procurement official, David H.
Safavian, was charged this fall with making false statements and
obstructing investigations into the 2002 golf outing. Safavian, former
chief of staff of the General Services Administration, the government's
procurement arm, has pleaded innocent to those charges.
Court documents also said Abramoff solicited $50,000 from a wireless
telephone company and got Ney's agreement to push the company's
application to install a wireless telephone infrastructure in the House
of Representatives, a job Ney's committee would have overseen.
Pressure had been intensifying on Abramoff to strike a deal with
prosecutors since another former partner, Adam Kidan, pleaded guilty
earlier this month to fraud and conspiracy in connection with the 2000
SunCruz boat deal in Florida.
The continuing saga of Abramoff's legal problems has caused anxiety at
high levels in Washington, in both the Republican and Democratic parties.
Abramoff raised at least $100,000 for President Bush's 2004 re-election
effort, earning the honorary title "pioneer" from the campaign.
In Bush's first 10 months in office in 2001, Abramoff and other members
of his lobbying team logged at least 200 contacts with the
administration on behalf of at least one client, the Northern Mariana
Islands. The meetings included some with high-ranking officials such as
then-Attorney General John Ashcroft and policy advisers in Vice
President Dick Cheney's office. The Marianas' agenda included seeking
friendly hires at federal agencies and preservation of its exemption
from the U.S. minimum wage.
White House spokesman Scott McClellan could not say Tuesday whether
Abramoff ever met President Bush. But when asked at the White House
about this, the spokesman said that "what he is reportedly acknowledging
doing is unacceptable and outrageous."
"If laws were broken, he must be held to account for what he did,"
McClellan said.
For months, prosecutors in Washington have focused on whether Abramoff
defrauded his Indian tribal clients of millions of dollars and used
improper influence on members of Congress.
In a five-year span ending in early 2004, tribes represented by the
lobbyist contributed millions of dollars in casino income to
congressional campaigns, often routing the money through political
action committees for conservative lawmakers who opposed gambling.
Abramoff also provided trips, sports skybox fundraisers, golf fees,
frequent meals, entertainment and jobs for lawmakers' relatives and aides.
In Florida, Abramoff and Kidan were indicted in August on charges of
conspiracy, wire fraud and mail fraud in connection with their purchase
of the SunCruz fleet for $147.5 million from Miami businessman
Konstantinos "Gus" Boulis.
Prosecutors said the pair faked a $23 million wire transfer to make it
appear that they were making a significant contribution of their own
money into the deal. Based on that transfer, lenders Foothill Capital
Corp. and Citadel Equity Fund Ltd. agreed to provide $60 million in
financing for the purchase.
Kidan pleaded guilty Dec. 15 to one count of conspiracy and one count of
wire fraud. He faces a maximum of 10 years in prison and up to $500,000
in fines at sentencing scheduled for March 1.
___
Associated Press reporters Michael J. Sniffen, Pete Yost and David
Hammer in Washington and Curt Anderson in Miami contributed to this story.
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