Bloomberg.com: U.S. | Abramoff Probe May Spur Move by Lawmakers to Rein in Lobbyists

Nov. 4 (Bloomberg) -- Jack Abramoff, the high-powered Republican lobbyist accused of bilking clients out of millions of dollars, may become the symbol that transforms the world of Washington influence-peddling.

Senator John McCain, the Arizona Republican who has led a congressional probe of Abramoff, may introduce legislation to tighten regulations on lobbyists. McCain's old partners on campaign-finance overhaul, Senator Russell Feingold of Wisconsin and Representative Martin Meehan of Massachusetts, both Democrats, are proposing that lawmakers detail payments for travel, and lobbyists disclose whom they contact on behalf of clients.

``A culture of corruption has developed,'' Meehan said. ``As the investigations continue and more wrongdoing is uncovered, I believe momentum will continue to build for real reform.''

Abramoff, 46, charged his clients for services he never delivered, diverting the funds to his own companies, according to e-mails and other documents released by two Senate committees during the last year. The House ethics committee is preparing to investigate whether he improperly funded overseas trips for former House Majority Leader Tom DeLay of Texas and other lawmakers.

Fred Wertheimer, president of Washington-based watchdog group Democracy 21, said new legislation will probably delve into how ``gifts'' to lawmakers are defined and the way lobbyists make contributions and raise funds for lawmakers.

Moving Money

Lawmakers may also look into the methods lobbyists such as Abramoff use to move money around, Wertheimer said. Abramoff, who along with partner Michael Scanlon took $66 million from Indian tribal clients, directed the tribes to contribute to outside groups, which then sent checks to Abramoff's political allies, e-mails released by McCain's Senate Indian Affairs Committee show.

Wertheimer, who's advising lawmakers on legislation, said he expects McCain, Feingold, Meehan and Representative Christopher Shays, a Connecticut Republican, to come up with measures jointly. The group also worked on a 2002 campaign- finance measure that eliminated unlimited donations to political parties known as ``soft money.''

``If you look at the numerous abuses that lobbyist Jack Abramoff engaged in, that will be a guidepost for trying to figure out the remedies necessary,'' Wertheimer said. ``There's a good chance that what they will do is take the Meehan and Feingold bills that have already been introduced and come up with comprehensive legislation before Congress adjourns.''

Loose Regulations

The 26,932 registered lobbyists operating in Washington are only currently required to file twice a year with the Senate and House, detailing the issues they are working on and the money spent to influence Congress and federal agencies. Lobbyists are allowed to engage in practices such as arranging trips for lawmakers and their staffs, and lawmakers can negotiate for lobbying jobs while still in office.

The publicity surrounding the probe of Abramoff -- who's also the subject of a Justice Department-led investigation and was indicted by a federal grand jury in a separate case on conspiracy and fraud charges -- may change the rules of the game.

McCain, speaking at a Nov. 2 hearing by the Indian Affairs Committee, said the lobbyist's activity was ``breathtaking in its reach.''

The Coushatta Tribe of Louisiana alone spent almost $37 million on fees and donations directed by Abramoff and Scanlon, according to the committee. In e-mails released by the panel, the pair discussed the money they would make off their client. ``Coushatta is an absolute cake walk,'' Scanlon, a former aide to DeLay, wrote to Abramoff on Sept. 10, 2001, according to an e-mail released at this week's hearing.

Revolving Door

Abramoff was trying to prevent another tribe from opening a casino in Louisiana that would rival one run by the Coushattas. As he worked to get the U.S. Interior Department to block the move, Abramoff offered former Deputy Interior Secretary J. Steven Griles a job, Griles said during the hearing.

Griles said he rejected the offer and reported it to ethics officials. He also said he never participated in decisions regarding the casino, though his testimony on that point was contradicted by former Interior counsel Michael Rossetti.

Abramoff spokesman Andrew Blum declined to comment.

The connection between public officials and the lobbying world is also a focus of the proposals made by Feingold and Meehan. The lawmakers want to slow down the ``revolving door'' between government and lobbying firms by requiring departing officials to wait two years rather than one before registering to represent clients.

Feingold and Meehan would also eliminate the ability of lawmakers who become lobbyists to mingle with former colleagues in congressional chambers and adjacent cloakrooms. And they are looking at preventing such new lobbyists from using unspent campaign funds to make donations on behalf of their new clients.

`Huge Windfall'

``It's a huge windfall for a lobbyist to suddenly have a half-million bucks to dole out to the people he's trying to influence,'' said Frank Clemente, director of Public Citizen's Congress Watch, a Washington-based group that supports stronger campaign-finance and lobbying laws. ``Former members who become lobbyists ought to turn their money over to charity or return it to donors instead of being able to use it as a slush fund to ingratiate themselves with people who they are now lobbying.''

Fifteen of the 18 lawmakers who joined lobbying firms or trade associations after their congressional terms expired in January kept their campaign accounts open. Ten donated to former colleagues or the political parties. Five converted their campaign accounts to political action committees.

`Helps With Access'

``It helps with access to clients, it keeps me involved in the political process and it keeps the fire alive if I choose to run again,'' said former Representative Jack Quinn, who converted his ``Quinn for Congress'' committee into JackPAC. The New York Republican is now president of Washington-based Cassidy & Associates, which represents such companies as Atlanta-based BellSouth Corp. and Bethesda, Maryland-based Lockheed Martin Corp.

While individuals can give no more than $4,200 to a House candidate every two years, PACs can give a maximum of $10,000.

Former Representatives Jim Turner of Texas and Scott McInnis of Colorado each left the House with more than $1 million in their campaign bank accounts. ``It has enabled me to help some of my former colleagues and friends,'' Turner said.

Wertheimer said new legislation should give the public ``a real sense of the way in which lobbyists are using money to try to influence members of Congress.''



To contact the reporters on this story:
Jonathan D. Salant in Washington at jsalant@bloomberg.net;
Kristin Jensen in Washington kjensen@bloomberg.net.