Lobbyist blames woes on friend - OrlandoSentinel.com: State News

Jack Abramoff claims a former partner lied to him about a deal to buy gambling boats.
The Associated Press

September 26, 2005

MIAMI -- Prominent Republican lobbyist Jack Abramoff and New York businessman Adam Kidan were once good friends who had known each other since their college days in the Washington area. They stayed in touch though the years and became business partners in a 2000 deal to buy a lucrative Florida fleet of gambling boats.

Now, both are charged with fraud in a federal grand-jury indictment in connection with their purchase of SunCruz Casinos.

And Abramoff says in court documents that he was hoodwinked by Kidan, who Abramoff contends kept secret his past business failures and disbarment as an attorney.

"Had I known these facts about Kidan, I would never have signed" the SunCruz loan papers central to the federal indictment, Abramoff said in one of thousands of pages of court documents filed in response to a lawsuit brought against Abramoff, Kidan, SunCruz and others by two lenders after the ill-fated purchase.

Kidan never responded to Abramoff's allegations, nor did he answer the lawsuit filed by SunCruz financiers Foothill Capital Corp. and Citadel Equity Fund Ltd.

A default judgment was entered against Kidan in the case. But the lawsuit was dismissed Sept. 1 without damages being awarded, shortly after Abramoff and Kidan were indicted.

Kidan's lawyer in the Florida criminal case, Martin Jaffe, said he would not comment on Abramoff's claims. A telephone message left at Kidan's home in New York was not returned.

Abramoff, long a close associate of House Majority Leader Tom DeLay, R-Texas, and Kidan are charged in the six-count indictment with wire fraud, mail fraud and conspiracy in their September 2000 purchase of SunCruz for $147.5 million.

Both have pleaded not guilty, with a status hearing set for Tuesday before U.S. District Judge Paul Huck. Trial is tentatively set to begin Dec. 12. Kidan and Abramoff are both free on bail.