AP Wire | 12/15/2005 | Former Abramoff partner pleads guilty in Suncruz fraud case

CURT ANDERSONAssociated PressMIAMI - The former business partner of Washington lobbyist Jack Abramoff in the ill-fated purchase of the SunCruz Casinos fleet of gambling boats pleaded guilty Thursday to federal fraud and conspiracy charges involving the 2000 deal.
Adam Kidan, 41, said "Guilty, your honor," when asked for a plea by U.S. District Judge Paul C. Huck. A plea agreement with the government requires that Kidan cooperate in the SunCruz case - including possible testimony against Abramoff - in order to get a reduced prison sentence.
"With today's plea, Mr. Kidan has acknowledged his wrongdoing and taken responsibility for his actions," said Kidan attorney Joseph Conway.
Kidan pleaded guilty to one count of conspiracy and one count of wire fraud and faces a maximum of 10 years in prison and up to $500,000 in fines at sentencing scheduled for March 1. Four other counts contained in a grand jury indictment were dismissed.
Kidan, whose left arm was in a sling as the result of a fall on ice near his New York home, spoke only in response to Huck's questions. Kidan declined to speak with reporters after the hearing, though Conway described him as "happy" with the outcome.
Abramoff and Kidan were indicted in August on charges of conspiracy, mail fraud and wire fraud for allegedly concocting a fake $23 million wire transfer to make it appear they were putting a significant portion of their own money into the $147.5 million SunCruz deal.
Lenders Foothill Capital Corp. and Citadel Equity Fund Ltd. agreed to provide $60 million in financing for the SunCruz purchase based on that false wire transfer, according to court documents.
Abramoff has claimed in court papers that Kidan was to blame for any irregularities in the deal and that he only found out about it later. For now, Abramoff remains scheduled to go to trial on Jan. 9 in Miami federal court.
"We'll have to see what impact it has, if any," said Abramoff's attorney, Neal Sonnett, regarding Kidan's plea. He declined further comment.
Kidan's guilty plea comes after another of Abramoff's former associates, Michael Scanlon, agreed to cooperate in the SunCruz case as part of a plea agreement in a separate federal case in Washington. Abramoff is being investigated in Washington for allegedly defrauding his Indian tribe clients of millions of dollars and possibly using improper influence on members of Congress.
Abramoff was a prominent Republican fundraiser and lobbyist who had close ties to former House Majority Leader Tom Delay, R-Texas, who himself faces money laundering charges in Texas. DeLay has denied any wrongdoing and is not named in the Florida case.
Kidan also is involved in the investigation of the 2001 murder of SunCruz founder Konstantinos "Gus" Boulis, who was slain in a gangland-style hit while driving his luxury car in Fort Lauderdale. The killing, about five months after Boulis sold SunCruz to Kidan and Abramoff, came during a bitter dispute over control of the company.
Police in September arrested Anthony "Big Tony" Moscatiello, 67; Anthony "Little Tony" Ferrari, 48; and James "Pudgy" Fiorillo, 28; on murder charges in Boulis' killing. Moscatiello, who worked for Kidan and allegedly has ties to New York's Gambino crime family, told police in an interview after his arrest that Kidan may have been involved, something Kidan has denied. Kidan has not been charged.
Conway said that part of the federal plea agreement requires Kidan to cooperate in any ongoing state or federal investigation. But Conway repeated that Kidan "has no knowledge of the murder of Mr. Boulis."
SunCruz, which operates gambling "cruises to nowhere" off Florida, fell into bankruptcy after Boulis was killed and has since emerged under new management.