Chillicothe Gazette - Abramoff plea deal could happen soon

Lobbyist expected to testify against Congressmen

The Gazette Staff

WASHINGTON — Indicted lobbyist Jack Abramoff, whose ties to Rep. Bob Ney are the subject of a Justice Department investigation, is set to take a plea bargain in his case, a source told CNN and NBC News this morning.

Abramoff, a close associate of former House Majority Leader Tom DeLay, to plead guilty to corruption, other charges. The agreement is expected to secure the lobbyist's testimony against several members of Congress who received favors from him or his clients.

U.S. Rep. Bob Ney, R-Heath, has been among those named with suspected links to Abramoff, although Ney's office has maintained the Congressman has committed no wrongful acts.

Abramoff and a former partner were indicted in August in Miami on charges of conspiracy and fraud for allegedly lying about their assets to help secure financing to purchase a fleet of gambling boats.

Pressure has been intensifying on Abramoff to strike a deal with prosecutors since former partner Adam Kidan pleaded guilty earlier this month to fraud and conspiracy in connection with the 2000 SunCruz boat deal.

Abramoff's cooperation would be a boon to an ongoing Justice Department investigation of congressional corruption, possibly helping prosecutors build criminal cases against up to 20 lawmakers of both parties and their staff members.

Abramoff and Kidan were charged with concocting a fake $23 million wire transfer to make it appear they were putting their own money into the SunCruz deal. Two lenders agreed to provide $60 million in financing for the purchase based on that false wire transfer, according to prosecutors.

For months, prosecutors in Washington have focused on whether Abramoff defrauded his Indian tribal clients of millions of dollars and used improper influence on members of Congress.

In a five-year span ending in early 2004, tribes represented by the lobbyist contributed millions of dollars in casino income to congressional campaigns, often routing the money through political action committees for conservative lawmakers who opposed gambling.

Abramoff also provided trips, sports skybox fundraisers, golf fees, frequent meals, entertainment and jobs for lawmakers' relatives and aides.

Michael Scanlon, another former Abramoff associate, pleaded guilty in November in a separate case in Washington.

Scanlon said he helped Abramoff and Kidan buy SunCruz by persuading Ney to insert comments into the Congressional Record that were "calculated to pressure the then-owner to sell on terms favorable" to Abramoff and Kidan.


(For more on this story, see Wednesday's Gazette and check back to www.ChillicotheGazette.com for breaking news as it happens.)


Originally published January 3, 2006