CNN.com - Lawyer?pleads guilty in Abramoff case - Nov 21, 2005

Scanlon charged with conspiracy to defraud Indian tribes




WASHINGTON (CNN) -- Michael Scanlon, a former aide to Rep. Tom DeLay and a lawyer who worked with high-powered Washington lobbyist Jack Abramoff, pleaded guilty to a federal conspiracy charge Monday.

As part of the deal with the Justice Department, Scanlon is expected to testify against Abramoff, two government sources told CNN last week.

Scanlon was charged Friday with one count of conspiracy as part of an ongoing federal criminal investigation of the lobbying activities of the two men, the sources said.

Scanlon, 35, agreed to pay more than $19 million in restitution for the alleged kickbacks he received as part of the conspiracy to defraud his and Abramoff's clients.

As part of the plea agreement with federal prosecutors, Scanlon admitted plotting to cheat clients and corruptly influence federal officials.

He is free on a $5 million bond and according to The Associated Press faces up to five years in prison.

Among the high-profile clients of Scanlon and Abramoff were Indian tribes, which hired them to gain political access in Washington.

Last week, prosecutors filed "criminal information" in U.S. District Court alleging that Scanlon conspired to "corruptly offer and provide things of value, including money, meals, trips and entertainment, to federal public officials in return for agreements to perform official acts" benefiting Scanlon and his lobbyist partner.

The partner is identified in the court documents only as Lobbyist A and is not facing charges. One government official told CNN that Lobbyist A is Abramoff.

Prosecutors also allege Scanlon was trying to "devise a scheme and artifice to defraud" lobbying clients.

Prosecutors detail a "stream of things of value" given to an unnamed congressman, identified in the court documents as Representative No. 1.

The items listed include "lavish" trip to Scotland to play golf, tickets to sporting events, and campaign contributions to the representative and his political action committee in exchange for a series of actions by that representative.

In the court documents, prosecutors allege Scanlon and Lobbyist A, "together and separately, sought and received Representative No. 1's agreement to perform a series of official acts, including but not limited to agreements to support and pass legislation, agreements to place statements into the Congressional Record, meetings with Lobbyist A and Scanlon's clients, and advancing the application of a client of Lobbyist A for a license to install wireless telephone infrastructure into the House of Representatives."

Officials would not identify Representative No. 1.

"It was a purpose of the conspiracy for Scanlon and Lobbyist A to enrich themselves by obtaining substantial funds from their clients through fraud and concealment and through obtaining benefits for their clients through corrupt means," the complaint states.

The government alleges the conspiracy lasted from January 2000 through at least April 2004.

Prosecutors allege Scanlon and the lobbyist "would falsely represent to their clients that certain of the funds were being used for specific purposes, when in fact, Scanlon and Lobbyist A would use those funds for their own personal benefit and not for the benefit of their clients."

Abramoff's name surfaced earlier this year amid ethics questions about DeLay, a longtime friend. The Washington Post has reported DeLay took two expensive overseas trips that Abramoff and other lobbyists bankrolled -- a violation of House rules, if true.

DeLay has denied any wrongdoing, calling the report "just another seedy attempt by the liberal media to embarrass me."

The Texas Republican was forced by House rules to step down as majority leader after he was indicted October 3 by a Texas grand jury on unrelated felony charges of conspiracy and money laundering. He was replaced by Rep. Roy Blunt of Missouri.

CNN's Terry Frieden, Kelli Arena, Kevin Bohn and Ted Barrett contributed to this report.