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GOVERNMENT / THE ELITE -
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Abramoff ready to rat on members of Congress

Posted in the database on Saturday, December 31st, 2005 @ 17:04:33 MST (1365 views)
by Toni Locy    Capitol Hill Blue  

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Federal prosecutors and lawyers for lobbyist Jack Abramoff are putting the finishing touches on a plea deal that could be announced early next week, according to people familiar with the negotiations.

The plea agreement would secure the Republican lobbyist's testimony against several members of Congress who received favors from him or his clients.

Abramoff and a former partner were indicted in Miami in August 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.

The people, who requested anonymity because of the sensitive nature of the talks, said the lawyers spoke by phone with U.S. District Judge Paul C. Huck, giving him an update on the plea negotiations.

Huck scheduled another status conference for Tuesday afternoon, but the deal could be completed before then, the people said. Abramoff could sign the plea agreement and exchange it with prosecutors via fax over the weekend, they said.

Details of where Abramoff will enter his plea are still being worked out. Abramoff's lawyers have indicated that they want the plea to be made in U.S. District Court in Washington, one person said.

If that happens, Abramoff would plead guilty to charges contained in a criminal information _ a filing made by a federal prosecutor with a defendant's permission that bypasses action by a grand jury.

The lawyers could then apprise Huck about the plea and its effect on the case in Miami.

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.

Kidan and Abramoff bought SunCruz from Konstantinos "Gus" Boulis, who was slain in 2001 in a gangland-style hit in Fort Lauderdale, Fla. Investigators say Boulis and Kidan were fighting for control of SunCruz; Kidan has denied any involvement in Boulis' death.

Three men were arrested in September on murder charges in Boulis' killing and are awaiting trial.

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 Rep. Bob Ney, R-Ohio, to insert comments into the Congressional Record that were "calculated to pressure the then-owner to sell on terms favorable" to Abramoff and Kidan.



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