Washington lobbyist Abramoff to fight charges-lawyer

Reuters
Thursday, August 18, 2005; 6:44 PM

MIAMI (Reuters) - A Washington lobbyist who is a central figure in investigations involving House Majority Leader Tom DeLay plans to fight charges he defrauded two lenders of $60 million to buy a casino cruise line, his lawyer said on Thursday.

Jack Abramoff, a well-connected Republican lobbyist, and Adam Kidan, his partner in the $147.5 million buyout of SunCruz Casino five years ago, were indicted by a federal grand jury in Fort Lauderdale, Florida, on August 11.


His Miami attorney, Neal Sonnett, said Abramoff would plead not guilty. He also said his client knew nothing about the gangland-style murder in a Fort Lauderdale street of Konstantinos "Gus" Boulis, a Greek-immigrant entrepreneur from whom they bought the casino cruise line empire.

"He looks forward to defending himself," Sonnett told reporters after Abramoff made a brief appearance before a U.S. magistrate in Miami.

"Absolutely nothing," Sonnett added when asked what his client might be able to tell police about the 2001 killing of Boulis. Fort Lauderdale police have said they would like to interview Abramoff and Kidan about the murder.

Abramoff was not asked to enter a plea on Thursday before U.S. Magistrate Stephen Brown and his formal arraignment on the fraud charges was postponed until Friday because he had not yet obtained a full-time attorney.

Abramoff and Kidan face one count of conspiracy to commit wire fraud and five counts of wire fraud. Each count carries a maximum punishment of five years in prison and a $250,000 fine. Prosecutors are also seeking restitution of the $60 million.

The indictment alleges they duped specialty lenders Foothill Capital and Citadel Equity Fund Ltd by pledging to invest $23 million in SunCruz in return for the $60 million loan. The indictment alleges the two men offered a fake wire transfer document as proof they had invested the money.

Abramoff is also under investigation over millions of dollars he was paid by an Indian tribe for lobbying efforts.

His case has attracted attention because of his links to DeLay, a Texas Republican, who has faced questions about his ties to lobbyists, foreign trips funded by outside groups and the use of campaign funds.

Opponents claim DeLay has engaged in unethical behavior. He has denied the allegations.

The Washington Post reported in April that a plane trip to London and Scotland by DeLay was charged to a credit card issued to Abramoff. Under House ethics rules, lawmakers are prohibited from accepting payment of trips and related expenses from registered lobbyists.