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Published on Wednesday, December 21, 2005 by the New York Times
Lobbyist Is Said to Discuss Plea and Testimony
by Anne E. Kornblut
WASHINGTON - Jack Abramoff, the Republican lobbyist under criminal
investigation, has been discussing with prosecutors a deal that would grant
him a reduced sentence in exchange for testimony against former political
and business associates, people with detailed knowledge of the case say.
Mr. Abramoff is believed to have extensive knowledge of what
prosecutors suspect is a wider pattern of corruption among lawmakers and
Congressional staff members. One participant in the case who insisted on
anonymity because of the sensitivity of the negotiations described him as a
"unique resource."
Other people involved in the case or who have been officially briefed
on it said the talks had reached a tense phase, with each side mindful of
the date Jan. 9, when Mr. Abramoff is scheduled to stand trial in Miami in a
separate prosecution.
What began as a limited inquiry into $82 million of Indian casino
lobbying by Mr. Abramoff and his closest partner, Michael Scanlon, has
broadened into a far-reaching corruption investigation of mainly Republican
lawmakers and aides suspected of accepting favors in exchange for
legislative work.
Prominent party officials, including the former House majority leader,
Representative Tom DeLay of Texas, are under scrutiny involving trips and
other gifts from Mr. Abramoff and his clients. The case has shaken the
Republican establishment, with the threat of testimony from Mr. Abramoff,
once a ubiquitous and well-connected Republican star, sowing anxiety
throughout the party ranks.
At issue is the complicated structure of the case against Mr.
Abramoff. In August, he was indicted by federal prosecutors in Miami on
charges of fraud stemming from his purchase of a fleet of casino boats in
2000. He pleaded not guilty in that case, and his lawyers say they are
preparing him to stand trial. Mr. Abramoff has also been under investigation
here in connection with his lobbying. No charges have been brought against
him in that inquiry. The existence of what amounts to two separate but
overlapping investigations partly explains why the plea negotiations for Mr.
Abramoff have been so protracted and tough, said people with inside
knowledge of the case.
With the trial in Miami fast approaching, and coming on the heels of
plea agreements from Mr. Scanlon and another close associate of Mr.
Abramoff, pressure has mounted to reach his own agreement. Mr. Abramoff has
also told associates that he is broke, making the prospect of an extended
jury trial even less appealing.
Mr. Abramoff's lead defense lawyer, Abbe D. Lowell, said he would not
comment.
Several people involved in various aspects of the case agreed to be
interviewed as long as their names and affiliations were not made public.
Justice Department officials are prohibited from discussing continuing cases
as a matter of course. A spokesman for the department, Bryan Sierra,
declined to comment.
Although the Miami case is ostensibly separate from the Washington
inquiry, the overlapping elements include occasions when Mr. Abramoff flexed
his political muscle to enhance his business deal in Florida.
While he and a partner, Adam Kidan, were angling to buy the SunCruz
boat fleet in 2000, Mr. Abramoff had Mr. Scanlon persuade Representative Bob
Ney, Republican of Ohio, to insert negative comments about a business rival
of Mr. Abramoff into The Congressional Record, under a scheme outlined in
documents filed in Mr. Scanlon's criminal case.
The rival, Konstantinos Boulis, was murdered a short time later in
Fort Lauderdale, Fla., a twist that heightened the profile of the Miami
case.
Florida prosecutors are also investigating corruption in that case,
focusing on Mr. Ney and his chief of staff at the time, Neil Volz, according
to people involved in the case. Mr. Volz reportedly agreed to put negative
remarks about Mr. Boulis in The Congressional Record, even though Mr. Ney
had no obvious reason to comment on Mr. Boulis.
Mr. Volz went on to work for Mr. Abramoff as a lobbyist.
Mr. Ney has said he was tricked by Mr. Scanlon and Mr. Abramoff into
participating, and no charges have been brought against him.
In his financial paperwork in the Miami deal, Mr. Abramoff listed Tony
C. Rudy, a deputy chief of staff to Mr. DeLay at the time, as a reference.
He also listed Representative Dana Rohrabacher, Republican of
California, who has since defended the decision to support the lobbyist.
Lawyers for Mr. Volz, Mr. Ney and Mr. Rudy did not return calls for
comment. A lawyer for Mr. DeLay declined to comment, but spokesmen for Mr.
DeLay have repeatedly said he had done nothing improper.
Such ties are only at the periphery of the investigations, according
to people briefed on the case. Mr. Scanlon, who worked on public affairs for
the SunCruz casinos and is familiar with the inner workings of many of Mr.
Abramoff's deals, is cooperating in the Miami case as well as in Washington,
his lawyer has said.
Prosecutors are also looking at how some former Congressional staff
members landed their lucrative lobbying positions and at the role the wives
of several lobbyists and lawmakers may have had in any influence scheme, a
piece of the puzzle that investigators have begun referring to privately as
the "wives' club."
© Copyright 2005 The New York Times Company
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