Miami fraud indictment expected for Washington lobbyist Abramoff | theledger.com

By CURT ANDERSON
Associated Press Writer
MIAMI
Washington lobbyist Jack Abramoff, once a close associate of powerful congressional Republicans including House Majority Leader Tom DeLay, was expected to be indicted Thursday by a federal grand jury on bank fraud charges, federal law enforcement officials said.

The charges stem from the purchase by Abramoff and his partners in the 2000 purchase of SunCruz Casinos and the alleged use of a fake wire transfer of $23 million aimed at influencing lenders to provide millions of dollars for the deal. Exact details of the charges were not clear.

Two federal law enforcement officials, speaking on condition of anonymity because the grand jury indictment had not been finalized Thursday morning, confirmed that an indictment was expected later in the day.

Abramoff's Miami attorney, Neal Sonnett, said he had not been informed of any charges but said that Abramoff was not involved in any fraud. Abramoff had previously been notified that he was a target of the investigation.

The partners bought SunCruz, which runs a fleet of gambling boats, from Konstantinos "Gus" Boulis for $147 million in September 2000, and the deal soon fell apart. Amid bitter legal fighting over the sale, Boulis, a Greek-born entrepreneur who also founded the Miami Subs restaurant chain, was shot to death in Fort Lauderdale in February 2001 what police called a planned hit. The killing has never been solved.

Abramoff is also under federal investigation in Washington by a grand jury investigating whether Abramoff and a lobbying partner overcharged Indian tribes by millions of dollars for their work.

DeLay, R-Texas, has asked the House Ethics Committee to review allegations that Abramoff or his clients paid some of DeLay's overseas travel expenses. DeLay has denied knowing that the expenses were paid by Abramoff, whom he once described as "one of my closest and dearest friends."

The SunCruz fleet of 11 ships had 2,300 slot machines and 175 gaming tables and sailed from nine Florida ports and Myrtle Beach, S.C., to international waters. The company continues to operate gambling cruises under new ownership after emerging from bankruptcy.