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Democracy Dies in Darkness SATURDAY, MARCH 12, 2005 Gambling Interests Funded DeLay Trip Later in 2000, Lawmaker’s Vote Helped Defeat Regulatory Measure

By James V. Grimaldi reviewed by The Washington Post. The and R. Jeffrey Smith Choctaw and eLottery each sent a check Washington Post Staff Writers for $25,000, according to the documents. An Indian tribe and a gambling ser- They now say that they were unaware the vices company made donations to a Wash- money was being used to finance DeLay’s ington public policy group that covered travels. most of the cost of a $70,000 trip to Brit- But Amy Ridenour, president of the ain by House Majority Leader Tom DeLay National Center, said that, when the trip (R-Tex.), his wife, two aides and two lob- was arranged, Abramoff promised he byists in mid-2000, two months before would secure financial backing. She said DeLay helped kill legislation opposed by that even without Abramoff’s efforts, the the tribe and the company. National Center would have borne the cost The sponsor of the week-long trip of the trip, which was intended to allow the listed in DeLay’s financial disclosures was group to network with conservative British the nonprofit National Center for Public politicians and included an outing to the Policy Research, but a person involved in famous St. Andrews golf course in Scot- arranging DeLay’s travel said that lobbyist land. Jack Abramoff suggested the trip and then “We paid for the trip,” Ridenour said. arranged for checks to be sent by two of his “This trip was going to be paid for by the clients, the Mississippi Band of Choctaw National Center, regardless of whether we Indians and eLottery Inc. got the donations from the Choctaw or The dates on the checks coincided eLottery.” with the day DeLay left on the trip, May House ethics rules allow lawmakers 25, 2000, according to grants documents and their staffs to have travel expenses paid SATURDAY, MARCH 12, 2005 KLMNO PAGE 2

Indian Tribe, Gambling Firm congressional office has said included a stop in London and Linked to DeLay Trip in 2000 a visit with Margaret Thatcher, along with the golf outing at St. Andrews, where colleagues say only for officially connected travel and only Abramoff has a membership. by organizations directly connected to the DeLay, an avid golfer, listed the pur- trips. The rules also require that lawmak- pose of the trip on a report filed with the ers accurately report the people or organi- House clerk as “educational.” He was zations that pay for the trips. They prohibit majority whip at the time and brought his payments by registered lobbyists for law- wife, Christine, and two top staff members makers’ travel. — Tony Rudy from the whip’s office and DeLay’s spokesman, Dan Allen, said: chief of staff Susan Hirschmann, as well as “The trip was sponsored, organized and her husband, David Hirschmann, accord- paid for by the National Center for Public ing to filings with the House clerk that Policy Research, as our travel disclosures indicated the total cost of transportation, accurately reflect and what the National lodging and meals was $70,265. Center has publicly said.” Abramoff’s attorney, Abbe David Internet Gambling Bill Killed Lowell, declined to comment. Abramoff, Two months later, in July 2000, DeLay the National Center and the flow of money and 43 other Republicans joined 114 Dem- between them are now being investigated ocrats in killing the Internet Gambling by a federal task force and by the Sen- Prohibition Act, which would have made it ate Committee on Indian Affairs; DeLay a federal crime to place certain bets over was admonished three times last year for the Internet and was opposed by eLottery infringements of House ethics rules. and the Choctaws. The bill was supported To prove an ethics violation, inves- by 165 Republicans and 79 Democrats but tigators would have to show that DeLay fell about 25 votes short of passage; because and his staff knew the gambling interests of a parliamentary maneuver, it required a were funding the trip, said Jan W. Baran, two-thirds majority vote. a Wiley Rein & Fielding LLP ethics law- DeLay spokesman Allen said that yer who often represents Republicans. “If DeLay voted against the bill because it had somebody is doing some backdoor financ- exemptions for jai alai and horse and dog ing, how would the member know?” racing. Rudy later that year went to work Abramoff, a member of the National for Abramoff as a lobbyist. Center’s board, joined the DeLays on the The Choctaw Indians run a highly May 25 to June 3, 2000, trip, which DeLay’s profitable casino near Philadelphia, Miss., SATURDAY, MARCH 12, 2005 KLMNO PAGE 3

An Educational Trip In 2000, an Indian tribe and a gambling services company sent $50,000 in checks to a Washington organization, the National Center for Public Policy Research, covering most of the cost of an educational trip to Britain taken by House Majority Leader Tom DeLay (R-Tex.), according to a person involved in arranging DeLay’s travel. Two months later, DeLay voted against a bill opposed by gambling interests. Lobbyist Jack Abramoff arranged for the donations to the tax-exempt conservative group and went along on the journey, according to the source.

Tribe and eLottery Abramoff, who served on the National paid Abramoff to Center’s board, arranged for his Indian Abramoff joined lobby against the and gambling clients to donate the DeLay during the Internet gambling bill. money, according to the source. trip to Britain.

Abramoff

Tribe wrote a $25,000 In July 2000, DeLay voted check on May 25, 2000, against the gambling bill.* to nonprofit think tank.

CHOCTAW National DeLay Trip Internet Center for to Britain, Gambling Public Policy May 25- Prohibition Research June 3, Act ELOTTERY Group 2000 sponsored Gambling company wrote a DeLay’s $25,000 check on May 25, $70,000 trip 2000, to nonprofit group. to Britain.

ELottery lobbied against * DeLay’s spokesman said he opposed the bill because the gambling legislation. it had exemptions for horse and dog racing and jai alai.

THE WASHINGTON POST that bankrolls their community activities Choctaw story,” she said. On its Web site, and has subsidized an extensive lobbying the center attributes the following state- effort in Washington. The tribe donated ment to DeLay: “The National Center is a total of $65,000 to Ridenour’s group in The Center for conservative communica- 2000 and $1.07 million in 2002. tions.” The Choctaw money was intended to Asked about the DeLay trip to Britain, help the center create a program to build tribal lawyer Bryant Rogers said: “The tribe support for the idea that Indian casinos did not authorize the use of any money for could drive prosperity for poor tribes, this purpose. . . . If it occurred, it occurred Ridenour said. “We were trying to tell the without the tribe’s knowledge.” SATURDAY, MARCH 12, 2005 KLMNO PAGE 4

ELottery is a Connecticut company should not be taxed. that provides Internet services to state lot- Three and a half weeks after DeLay’s teries. One version of the gambling legisla- Jan. 3, 2001, speech saluting Martin “for tion contained a provision that would have all he has done to further the cause of free- severely restricted state lottery sales over dom,” at least one of DeLay’s aides went the Internet. Edwin J. McGuinn, president on a trip via private jet to the Super Bowl of eLot Inc., the parent of eLottery, said the in Tampa arranged and financed by one provision would have killed his company. of Abramoff’s companies. Sources famil- “We wouldn’t have been able to operate,” iar with the trip said the guests were also he said. taken out to an Abramoff-owned gambling McGuinn said he was unaware that ship that was anchored near Tampa. eLottery’s $25,000 check was meant to No one on DeLay’s staff filed a report pay for DeLay’s trip. Of the donation to the disclosing the trip, a task required by House National Center, he said: “It certainly was rules for “the receipt of travel expenses our impression that any and all moneys from private sources” but not for govern- were being positioned to get the attention ment-funded or political travel. and focus of our cause.” DeLay spokesman Allen said: “The DeLay today describes himself as a staffer went down to participate in a longtime opponent of any expansion of National Republican Congressional Com- gambling. But in a House floor speech six mittee party, so it was considered political months after his trip to Britain, he praised travel. The staffer never saw Abramoff dur- the head of the Mississippi Band of Choc- ing the trip.” taw Indians as a “champion of peace and The Internet gambling legislation was prosperity” and placed in the Congressio- the only issue Abramoff and his employer nal Record an editorial praising chief Phil- at the time, Preston Gates Ellis & Rouvelas lip Martin for enriching the tribe through Meeds LLP, mentioned in lobbying disclo- the “construction of a casino.” sure records when they reported earning The editorial, from the magazine $440,000 in fees from eLottery in 2000. Indian Country Today, noted that Mar- The Internet gambling bill was one of sev- tin had also wisely positioned his tribe “to eral legislative issues listed in a separate solidify friendships with Republican pow- lobbying disclosure for the firm’s efforts on erhouses.” It said — in an apparent refer- behalf of the Choctaw, which paid Preston ence to Abramoff — that the tribe and its Gates $880,000 in 2000. chief had hired “quality lobbyists as their new wealth allowed” and successfully per- Expense Voucher Submitted suaded Republican leaders that the tribal The trip to Britain by the DeLays pre- revenue from gambling and other ventures viously attracted notice because Abramoff SATURDAY, MARCH 12, 2005 KLMNO PAGE 5

submitted an expense voucher to Pres- posed to do.” He said that, to his knowledge, ton Gates seeking a reimbursement of the National Center “paid for the trip.” $12,789.73 to cover expenses for meals, DeLay told Cox News Service earlier hotels and transportation incurred by the this month: “I went to London to meet with DeLays, the Hirschmanns and a former conservatives in England and Scotland and DeLay chief of staff — lobbyist Ed Buck- talk about the things we had been doing in ham — who also went on the trip. the Republican, conservative House. They House ethics rules prohibit registered wanted to dialogue to see if they could lobbyists such as Abramoff from paying adopt some the things that we had done.” for a lawmaker’s expenses. But the Pres- A person who went on the trip but ton Gates records state that Abramoff told spoke on the condition of anonymity his firm he paid $4,285.35 for the DeLays’ because of the controversy said that DeLay stay at London’s Four Seasons Hotel, plus talked with Thatcher about her efforts to $5,174.64 for the Hirschmanns’ stay. He help end the Cold War and with others also reported spending $800 on transpor- about trade issues. An aide to Thatcher tation for the group between May 25 and confirmed that the meeting occurred. May 29. Abramoff was a member of the board of The existence of the voucher and the National Center from about 1997 until a portion of its contents were reported last October, when the center accepted his last month in the National Journal. The resignation. voucher’s tally of expenses differs from the Stanley Brand, a former Democratic account given by DeLay in a signed report counsel to the House and an ethics spe- to the House clerk on June 30, 2000, in cialist, said arrangements in which funds which he reported that total lodging for are passed through an intermediary to pay the couple over nine nights cost Ridenour’s for a lawmaker’s travels breach ethics rules group $3,840. Susan Hirschmann’s sepa- if the lawmaker who benefited “knew or rate, signed report also gave a different fig- should have known” the origin of funds. ure from Abramoff; she stated that lodging Brand said the House ethics commit- expenses for her husband and her for this tee, if it opens an investigation, would have period amounted to $3,360. to decide whether the circumstances of the Both the DeLays and the Hirschmanns travel “should have put a reasonable per- reported their meal expenses during the son on notice that it was paid for by some- trip as $2,000 per person, or roughly $200 one else.” a day. Last week, DeLay told reporters that Researchers Alice Crites, Lucy Shackelford and Don Pohlman contributed to this report. he had reported the trip “as we are sup- DAILY 03-12-05 VA M2 A1 CMYK

Weather Today: Partly sunny. NORTHERN High 48. Low 34. Sunday: Partly sunny, VIRGINIA breezy. High 49. Low 28. FINAL Details, B10 ABCDE 35¢ Prices may vary in areas outside metropolitan 128th Year No. 97 M2 VA Saturday, March 12, 2005 M1 M2 M3 M4 V1 V2 V3 V4 Washington. (See box on A2) Sarbanes to Retire From Senate Surprise Decision Sets Off Scramble in Maryland Among Potential Successors

By Spencer S. Hsu January 2007. ing most notably a far-reaching Within hours, a half-dozen poli- and John Wagner “It was just the right time. We 2002 law that brought more over- ticians jockeyed for position while Washington Post Staff Writers think we’ve served well and long sight to the corporate world after straining to defer attention to the and honorably,” Sarbanes said in a the Enron Corp. collapse. senator. They included Kweisi Sen. Paul S. Sarbanes, the studi- surprise news conference overlook- In Maryland, his departure marks Mfume, a former congressman and Duke Outlasts ous liberal who became Maryland’s ing Baltimore’s Inner Harbor. “It the political passing of a generation NAACP president; at least five longest-serving senator and who was not my ambition to stay there and cracks open a logjam of younger House Democrats — Benjamin L. Virginia, 76-64 acted as quiet counsel to Demo- until they carried me out.” Democrats eager to succeed him in Cardin, Elijah E. Cummings, Chris BY MARK GAIL — THE WASHINGTON POST The Cavaliers threaten cratic leaders through times of im- In three decades in the Senate, a state that will hold its first open Sen. Paul S. Sarbanes at a Baltimore upset before the Blue peachment and scandal, announced Sarbanes, 72, earned a reputation Senate race in 20 years. See SARBANES, A5, Col. 1 news conference to announce that Devils pull away. yesterday that he will not run for re- for working behind the scenes on he won’t seek a sixth term. “It was SPORTS, D1 election when his fifth term ends in complex legislative puzzles, produc- K Sarbanes known as cerebral workhorse in Senate. | A4 just the right time,” he said. Hokies Make Quick Exit Virginia Tech couldn’t stay Gambling Interests with Georgia Tech, 73-54. SPORTS, D11 Funded DeLay Trip Today’s Games K North Carolina vs. Later in 2000, Lawmaker’s Vote Georgia Tech, 1:30 p.m. K N.C. State vs. Duke, 4 p.m. Helped Defeat Regulatory Measure By James V. Grimaldi ents, the Mississippi Band of and R. Jeffrey Smith Choctaw Indians and eLottery Washington Post Staff Writers Inc. The dates on the checks coin- An Indian tribe and a gambling cided with the day DeLay left on services company made donations the trip, May 25, 2000, according to a Washington public policy to grants documents reviewed by group that covered most of the The Washington Post. The Choc-

BY ANDREA BRUCE WOODALL— THE WASHINGTON POST cost of a $70,000 trip to Britain by taw and eLottery each sent a House Majority Leader Tom De- check for $25,000, according to Game Tickets Lay (R-Tex.), his wife, two aides the documents. They now say that and two lobbyists in mid-2000, they were unaware the money was Are Hot Items two months before DeLay helped being used to finance DeLay’s kill legislation opposed by the travels. Ticket scalpers play a tribe and the company. But Amy Ridenour, president of cat-and-mouse game with The sponsor of the week-long the National Center, said that, D.C. police outside MCI trip listed in DeLay’s financial dis- when the trip was arranged, Abra- Center, where the closures was the nonprofit Nation- moff promised he would secure fi- basketball tournament is al Center for Public Policy Re- nancial backing. She said that underway. METRO, B1 search, but a person involved in even without Abramoff’s efforts, arranging DeLay’s travel said that the National Center would have lobbyist Jack Abramoff suggested borne the cost of the trip, which Fans Keep the trip and then arranged for Eye on the Ball checks to be sent by two of his cli- See DELAY, A8, Col. 1 Fans arriving for the basketball tournament are focused on just one sight in the capital city: MCI Center. METRO, B2 Steffen E-Mails Imply K G. Washington one win from NCAAs. | D1 Closer Link to Ehrlich New Light Shed on Aide’s Role in Firings DAILY 03-12-05 MD SU A8 CMYK By Matthew Mosk als of scores of state workers. Washington Post Staff Writer The exchange between Steffen Egypt Holds and Kendel Ehrlich was found in A week before Joseph Steffen roughly 14,500 pages of e-mails Candidate was revealed as the author of Inter- and other documents released by net postings about the personal attorneys for the governor yester- A8 Saturday, March 12, 2005 S POLITICS The Washington Post life of Gov. Robert L. Ehrlich Jr.’s day in response to Maryland Pub- Despite Vow BY BEN GRAY — REUTERS top political rival, he wrote to the lic Records Act requests from The Rescue personnel load a wounded deputy into an ambulance outside the Fulton County Courthouse in Atlanta. governor’s wife with an offer to Washington Post and nine other An Educational Trip Of Reform “throw myself on the grenade” to news agencies. Indian Tribe, Gambling Firm head off a scandal. The stacks of documents, quick- In 2000, an Indian tribe and a gambling services company sent $50,000 in checks to a Washington By Daniel Williams 3 Slain in Atlanta Courthouse Rampage First lady Kendel S. Ehrlich re- ly pored over and sorted by report- organization, the National Center for Public Policy Research, covering most of the cost of an Washington Post Foreign Service plied, “Relax. You’ll be fine. We ers from a dozen news agencies educational trip to Britain taken by House Majority Leader Tom DeLay (R-Tex.), according to a need you,” and signed the e-mail working in concert, appear to do Linked to DeLay Trip in 2000 person involved in arranging DeLay’s travel. Two months later, DeLay voted against a bill opposed CAIRO, March 11 — Two Judge, 2 Others Gunned Down; Rape Defendant Escapes “Ken.” nothing to illuminate Steffen’s weeks after President Hosni The next day, Feb. 8, Ehrlich boast on the Internet: that he DELAY, From A1 and chief of staff Susan Hirsch- that eLottery’s $25,000 check was by gambling interests. Lobbyist Jack Abramoff arranged for the donations to the tax-exempt Mubarak announced that Egypt By Manuel Roig-Franzia ple slaying, which shut down a killings, one of the men Nichols is fired Steffen for posting the ru- knew of an orchestrated effort to mann, as well as her husband, David meant to pay for DeLay’s trip. Of conservative group and went along on the journey, according to the source. would hold multi-candidate and Melanie Lasoff Levs chunk of Atlanta’s downtown a accused of murdering — Judge mors, and the longtime aide who “give float” to rumors that Balti- was intended to allow the group to Hirschmann, according to filings the donation to the National Center, presidential elections, the first Washington Post Staff Writers block from the golden dome of the Rowland Barnes, 64 — had asked called himself “the Prince of Dark- more Mayor Martin O’Malley had network with conservative British with the House clerk that indicated he said: “It certainly was our im- Tribe and eLottery Abramoff, who served on the National politician to say he would run state Capitol, gave way to revela- for extra security during Nichols’s ness” has become the focus of two an extramarital affair. O’Malley politicians and included an outing the total cost of transportation, pression that any and all moneys paid Abramoff to Center’s board, arranged for his Indian Abramoff joined was sitting in jail. ATLANTA, March 11 — A huge tions of hints the suspect may have scheduled testimony Friday. investigations — about political has denied that. to the famous St. Andrews golf lodging and meals was $70,265. were being positioned to get the at- lobby against the and gambling clients to donate the DeLay during the Inmate No. 1387 at Tora jail manhunt swung into motion across given about violent intentions. Two The killings, coming just 11 days dirty tricks and his alleged role in course in Scotland. tention and focus of our cause.” Internet gambling bill. money, according to the source. trip to Britain. is Ayman Nour, a lawyer and the Southeast on Friday as officers days before the shootings, deputies after a Chicago federal judge’s hus- the politically motivated dismiss- See STEFFEN, A11, Col. 2 “We paid for the trip,” Ridenour Internet Gambling Bill Killed DeLay today describes himself as member of parliament. His nor- searched for a rape suspect who au- escorting the suspect, Brian Nich- band and mother were slain in their said. “This trip was going to be paid a longtime opponent of any expan- thorities say overpowered a sher- ols, 33, from the courthouse to his home, set off a fresh round of wor- mal residence is a penthouse for by the National Center, regard- Two months later, in July 2000, sion of gambling. But in a House Abramoff apartment decorated with iff’s deputy in an Atlanta court- jail cell noticed something in his ries about the safety of judges, pros- less of whether we got the donations DeLay and 43 other Republicans floor speech six months after his bronze French Empire-style house and then used her gun to kill shoes. They found two sharp ecutors and others involved in the from the Choctaw or eLottery.” joined 114 Democrats in killing the trip to Britain, he praised the head a judge, a court stenographer and a “shanks,” common jailhouse weap- criminal justice system. An average INSIDE Tribe wrote a $25,000 knickknacks, gigantic gilt mir- House ethics rules allow law- Internet Gambling Prohibition Act, of the Mississippi Band of Choctaw In July 2000, DeLay voted second sheriff’s deputy who had ons probably fashioned out of whit- check on May 25, 2000, rors and a plaster image of Mar- makers and their staffs to have trav- which would have made it a federal Indians as a “champion of peace and against the gambling bill.* ilyn Monroe with her skirt chased the alleged assailant into tled doorknobs. The day before the See ATLANTA, A10, Col. 1 el expenses paid only for officially crime to place certain bets over the prosperity” and placed in the Con- to nonprofit think tank. blowing upward. the street. Not-So-Candid Talk connected travel and only by organi- Internet and was opposed by eLot- gressional Record an editorial prais- The paralyzing shock of the tri- K D.C. area judges reminded of vulnerability. | A10 Nour, whose small Tomor- On Social Security zations directly connected to the tery and the Choctaws. The bill was ing chief Phillip Martin for enrich- CHOCTAW National DeLay Trip Internet row Party was legalized in Oc- trips. The rules also require that supported by 165 Republicans and ing the tribe through the to Britain, Gambling President Bush’s “roadshow” Center for tober and holds six seats in lawmakers accurately report the 79 Democrats but fell about 25 “construction of a casino.” May 25- Prohibition to promote his Social Security Public Policy Egypt’s 454-member parlia- people or organizations that pay for votes short of passage; because of a The editorial, from the magazine June 3, Act proposal features well- Research ment, is only one of thousands the trips. They prohibit payments parliamentary maneuver, it required Indian Country Today, noted that ELOTTERY Group 2000 of Egyptian political figures Washington Would Have Slept Here orchestrated conversations by registered lobbyists for lawmak- a two-thirds majority vote. Martin had also wisely positioned sponsored jailed during decades of author- with handpicked supporters of ers’ travel. DeLay spokesman Allen said that his tribe “to solidify friendships Gambling company wrote a DeLay’s itarian rule. Yet since his arrest the individual accounts. DeLay’s spokesman, Dan Allen, DeLay voted against the bill be- with Republican powerhouses.” It $25,000 check on May 25, $70,000 trip Jan. 29 on suspicion of forging Ex-Presidents Getting a B&B NATION, A3 said: “The trip was sponsored, orga- cause it had exemptions for jai alai said — in an apparent reference to 2000, to nonprofit group. to Britain. official documents, his fate has BY JESSIE COHEN — SMITHSONIAN INSTITUTION nized and paid for by the National and horse and dog racing. Rudy lat- Abramoff — that the tribe and its become intertwined with the By Jura Koncius Alleged Libyan Plot Center for Public Policy Research, er that year went to work for Abra- chief had hired “quality lobbyists as destiny of political change in Washington Post Staff Writer Hoping for a Cub, Zoo as our travel disclosures accurately moff as a lobbyist. their new wealth allowed” and suc- Egypt. Detailed by Saudis Inseminates Panda reflect and what the National Cen- The Choctaw Indians run a high- cessfully persuaded Republican Opening soon in a 19th-century brick townhouse on ELottery lobbied against * DeLay’s spokesman said he opposed the bill because State Department and Euro- Saudi officials say a plot to ter has publicly said.” ly profitable casino near Philadel- leaders that the tribal revenue from it had exemptions for horse and dog racing and jai alai. pean Union officials, all press- Lafayette Square: An elegant guesthouse with six fire- assassinate the kingdom’s Giant panda Mei Xiang was Abramoff’s attorney, Abbe David phia, Miss., that bankrolls their gambling and other ventures should the gambling legislation. places, classic American furniture and decorative arts, a artificially inseminated ing for democratic reform, have ruler was disguised to look like Lowell, declined to comment. Abra- community activities and has sub- not be taxed. THE WASHINGTON POST complained about his deten- 14-member staff and one small condition for staying an al Qaeda-inspired attack. yesterday, and scientists said moff, the National Center and the sidized an extensive lobbying effort Three and a half weeks after De- tion. Pro-government reform- there: WORLD, A16 they feel good about prospects flow of money between them are in Washington. The tribe donated a Lay’s Jan. 3, 2001, speech saluting ists who dispute Nour on the You have to be a former president. of success. METRO, B1 now being investigated by a federal total of $65,000 to Ridenour’s group Martin “for all he has done to fur- listed in a separate lobbying dis- Journal. The voucher’s tally of ex- but spoke on the condition of ano- details and pace of change With an expected $6 million in private funds now be- task force and by the Senate Com- in 2000 and $1.07 million in 2002. ther the cause of freedom,” at least closure for the firm’s efforts on be- penses differs from the account giv- nymity because of the controversy nonetheless express concern ing raised by a bipartisan committee of Washington pow- Row of Riches D.C. Lead Levels Down mittee on Indian Affairs; DeLay was The Choctaw money was intend- one of DeLay’s aides went on a trip half of the Choctaw, which paid en by DeLay in a signed report to said that DeLay talked with Thatch- er brokers, Trowbridge House — named for William Pe- that his internment will dis- Townhouses have crossed the Recent tests of drinking water admonished three times last year ed to help the center create a pro- via private jet to the Super Bowl in Preston Gates $880,000 in 2000. the House clerk on June 30, 2000, in er about her efforts to help end the tit Trowbridge, the mathematics professor who built it in credit their own efforts. Gov- million-dollar threshold as in several dozen District for infringements of House ethics gram to build support for the idea Tampa arranged and financed by which he reported that total lodging Cold War and with others about 1859 — will be transformed from dreary federal office ernment officials reject com- buyers snap up ever-bigger, homes show declines in lead rules. that Indian casinos could drive pros- one of Abramoff’s companies. Expense Voucher Submitted for the couple over nine nights cost trade issues. An aide to Thatcher space into an official guesthouse for former presidents plaints that Nour is being more luxurious units. levels, a sign that a new To prove an ethics violation, in- perity for poor tribes, Ridenour Sources familiar with the trip said Ridenour’s group $3,840. Susan confirmed that the meeting oc- when they visit Washington. Prospective donors are be- persecuted and insist that his chemical is having an impact, vestigators would have to show that said. “We were trying to tell the the guests were also taken out to an The trip to Britain by the DeLays Hirschmann’s separate, signed re- curred. ing offered “naming opportunities”: a marble fireplace REAL ESTATE, F1 an official says. METRO, B1 DeLay and his staff knew the gam- Choctaw story,” she said. On its Abramoff-owned gambling ship that previously attracted notice because port also gave a different figure Abramoff was a member of the See NOUR, A16, Col. 1 mantelpiece for $250,000, a staircase for $500,000 or a bling interests were funding the Web site, the center attributes the was anchored near Tampa. Abramoff submitted an expense from Abramoff; she stated that lodg- board of the National Center from major room for $1 million. K British anti-terror law K CompUSA must pay trip, said Jan W. Baran, a Wiley Rein following statement to DeLay: “The No one on DeLay’s staff filed a re- voucher to Preston Gates seeking a ing expenses for her husband and about 1997 until last October, when The renovation is expected to begin this year. When it passes; 8 suspects & Fielding LLP ethics lawyer who National Center is The Center for port disclosing the trip, a task re- reimbursement of $12,789.73 to her for this period amounted to the center accepted his resignation. Contents is complete, the property at 708 Jackson Pl. NW will be rebates.  2005 | Business, E1 often represents Republicans. “If conservative communications.” quired by House rules for “the re- cover expenses for meals, hotels and $3,360. Stanley Brand, a former Demo- The linked with Blair House, where visiting heads of state of- freed from prison. somebody is doing some backdoor Asked about the DeLay trip to ceipt of travel expenses from private transportation incurred by the De- Both the DeLays and the Hirsch- cratic counsel to the House and an Washington BY JAMES A. PARCELL — THE WASHINGTON POST Post ten stay. A complex of four houses, two on Pennsylvania World, A12 Today’s Contents are on A2 financing, how would the member Britain, tribal lawyer Bryant Rogers sources” but not for government- Lays, the Hirschmanns and a former manns reported their meal expens- ethics specialist, said arrangements 1 Company Trowbridge House on Lafayette Square will be renovated know?” said: “The tribe did not authorize funded or political travel. DeLay chief of staff — lobbyist Ed es during the trip as $2,000 per per- in which funds are passed through See TROWBRIDGE, A11, Col. 1 and designated as the guesthouse for former presidents. Abramoff, a member of the Na- the use of any money for this pur- DeLay spokesman Allen said: Buckham — who also went on the son, or roughly $200 a day. an intermediary to pay for a law- tional Center’s board, joined the De- pose. . . . If it occurred, it occurred “The staffer went down to partici- trip. Last week, DeLay told reporters maker’s travels breach ethics rules if Lays on the May 25 to June 3, 2000, without the tribe’s knowledge.” pate in a National Republican Con- House ethics rules prohibit regis- that he had reported the trip “as we the lawmaker who benefited “knew trip, which DeLay’s congressional ELottery is a Connecticut compa- gressional Committee party, so it tered lobbyists such as Abramoff are supposed to do.” He said that, to or should have known” the origin of office has said included a stop in ny that provides Internet services to was considered political travel. The from paying for a lawmaker’s ex- his knowledge, the National Center funds. London and a visit with Margaret state lotteries. One version of the staffer never saw Abramoff during penses. But the Preston Gates rec- “paid for the trip.” Brand said the House ethics com- Thatcher, along with the golf outing gambling legislation contained a the trip.” ords state that Abramoff told his DeLay told Cox News Service mittee, if it opens an investigation, at St. Andrews, where colleagues provision that would have severely The Internet gambling legislation firm he paid $4,285.35 for the De- earlier this month: “I went to Lon- would have to decide whether the say Abramoff has a membership. restricted state lottery sales over was the only issue Abramoff and his Lays’ stay at London’s Four Seasons don to meet with conservatives in circumstances of the travel “should DeLay, an avid golfer, listed the the Internet. Edwin J. McGuinn, employer at the time, Preston Gates Hotel, plus $5,174.64 for the Hirsch- England and Scotland and talk have put a reasonable person on no- purpose of the trip on a report filed president of eLot Inc., the parent of Ellis & Rouvelas Meeds LLP, men- manns’ stay. He also reported spend- about the things we had been doing tice that it was paid for by someone with the House clerk as “educa- eLottery, said the provision would tioned in lobbying disclosure rec- ing $800 on transportation for the in the Republican, conservative else.” tional.” He was majority whip at the have killed his company. “We ords when they reported earning group between May 25 and May 29. House. They wanted to dialogue to time and brought his wife, Chris- wouldn’t have been able to operate,” $440,000 in fees from eLottery in The existence of the voucher and see if they could adopt some the Researchers Alice Crites, Lucy tine, and two top staff members — he said. 2000. The Internet gambling bill a portion of its contents were re- things that we had done.” Shackelford and Don Pohlman Tony Rudy from the whip’s office McGuinn said he was unaware was one of several legislative issues ported last month in the National A person who went on the trip contributed to this report. ATTENTION We Deliver, MATTRESS They Don’t CUSTOMERS Tempur-Pedic WE’LL BEAT ALL All mattresses in Swedish Mattress COMPETITOR’S PRICES stock are available for “This is the mattress that set GUARANTEED! immediate delivery. the industry abuzz!” –Consumers Digest LARGEST TEMPUR-PEDIC DEALER IN THE WASHINGTON AREA 2003 Every Size Tempur-Pedic Mattress and Adjustable Bed in Stock for Free Immediate Delivery!! You’ve We Sell A Better got to feel it ™ Mattress For Less! to believe it We are the Largest Stock Dealer of Latex Mattresses by Sealy Reflexions in the Washington, DC Area As Seen on

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Democracy Dies in Darkness SUNDAY, MARCH 13, 2005 Casino Bid Prompted High-Stakes Lobbying

Probe Scrutinizes Efforts Against Tribe

By Susan Schmidt and e-mails obtained by The Washington Washington Post Staff Writer Post. Abramoff arranged for Dobson and When a ragtag band of Louisiana Reed to pressure federal officials to reject Indians won their governor’s support for the Jenas’ bid on anti-gambling grounds. a casino three years ago, they never could He and his partners drafted anti-Jena let- have fathomed the powerful cast of charac- ters that were then signed by congressional ters who would collaborate to flatten them. leaders, some of whom have received thou- Jack Abramoff, one of Washington’s sands of dollars in donations from tribes most prominent Republican lobbyists, represented by Abramoff. One ally inserted tapped into the gambling riches of a rival language opposing the casino into a bill tribe to orchestrate a far-reaching cam- late in the legislative process. paign against the Jena Band of Choctaws And in an attempt to influence the — calling on senior U.S. senators and con- Interior Department — which has the gressmen, the deputy secretary of the inte- final say on a tribe’s gambling ambitions — rior and evangelical leaders James Dobson Abramoff directed his tribal clients to give and Ralph Reed. at least $225,000 to the Council of Repub- The story of what Abramoff did for licans for Environmental Advocacy, a con- the Louisiana Coushatta tribe provides the servative group that was founded by Gale most complete picture yet of the role of the A. Norton before President Bush chose her lobbyist at the center of a widening federal to be his interior secretary. Federal officials corruption investigation in Washington. It are investigating the nature of the relation- was reconstructed through interviews with ship between the group’s president, Italia tribal leaders, government officials and for- Federici, and Norton’s then-deputy, J. Ste- mer business associates, as well as through ven Griles. Interior Department and other documents The Jenas lost their first round. They SUNDAY, MARCH 13, 2005 KLMNO PAGE 2

Tribe’s Casino Bid Prompted High-Stakes Opposition

came back to win approval for a second as much as $4 million to whip up public casino plan. Meantime, the spoils of the sentiment against expansion of gambling lobbying war have been bountiful. in Louisiana and Texas. Reed’s efforts, in Tribal money bolstered the cam- turn, boosted support for a congressman paign coffers of many members of Con- from Louisiana who was elected last year gress. Dobson had the opportunity to flex to the U.S. Senate. grass-roots muscle that he would later use Abramoff profited, as well. He and to mobilize evangelicals for Bush’s reelec- Michael Scanlon, the public affairs execu- tion. Reed, former executive director of tive he recommended to the tribe, were the Christian Coalition, quietly received paid $32 million over three years by the

The Players

Interior Secretary Gale J. Steven Griles, Jack Abramoff, David Vitter, then a Michael Scanlon and Ralph Reed was paid Opponents of the Jenas’ A. Norton ultimately Norton’s deputy at lobbying for a congressman from Abramoff were paid up to $4 million by bid invoked the name of ruled in favor of the Interior, allegedly competing Indian tribe, Louisiana, urged Norton $32 million by the Abramoff and Scanlon evangelical leader Jenas Band of mounted a late but mobilized anti-Jenas in February 2002 to Louisiana Coushatta to organize anti- James Dobson in order Choctaws’ casino unsuccessful challenge efforts outside and turn down the Jenas’ tribe, which operated a gambling campaigns in to pressure federal application. to the Jenas’ plan. inside Washington. application. casino in the state. Texas and Louisiana. officials. The Players

Interior Secretary Gale J. Steven Griles, Jack Abramoff, David Vitter, then a Michael Scanlon and Ralph Reed was paid Opponents of the Jenas’ A. Norton ultimately Norton’s deputy at lobbying for a congressman from Abramoff were paid up to $4 million by bid invoked the name of ruled in favor of the Interior, allegedly competing Indian tribe, Louisiana, urged Norton $32 million by the Abramoff and Scanlon evangelical leader Jenas Band of mounted a late but mobilized anti-Jenas in February 2002 to Louisiana Coushatta to organize anti- James Dobson in order Choctaws’ casino unsuccessful challenge efforts outside and turn down the Jenas’ tribe, which operated a gambling campaigns in to pressure federal application. to the Jenas’ plan. inside Washington. application. casino in the state. Texas and Louisiana. officials. SUNDAY, MARCH 13, 2005 KLMNO PAGE 3

Coushattas. to questions because the matter is under A Justice Department task force is investigation. examining the Jena episode as part of A spokesman for Abramoff, Abbe Low- its investigation into the $82 million ell, called it “highly ironic” that Abramoff is Abramoff and Scanlon were paid by tribes. being questioned for using “every legal and Among the areas under scrutiny, according proper method” to protect his client’s inter- to sources with knowledge of the probe, ests. “The effort to stop the illegal placing are Abramoff’s contacts with the Interior of a Jena casino in a position to destroy the Department and with members of Con- economy of Abramoff’s tribal client, the gress; the payments to the Republican Louisiana Coushattas, was extensive and environmental group; the Griles-Federici successful,” he said. relationship; and Griles’s possible attempt to intervene in the casino decision. 45 Days A spokeswoman for Griles said he was When the Jena casino plan was unavailable for questions, but said Griles unveiled in January 2002, Abramoff had “didn’t participate in any decision-making 45 days to act before the Interior Depart- process regarding the Jena Band and gam- ment completed the legal review called for ing.” Federici declined to discuss the nature by the Indian Gaming Regulatory Act. of her relationship with Griles or the tribe’s The Coushattas were already one of contributions to her group, but said all of Abramoff’s wealthiest tribal clients. As her group’s activities involve environmen- a lobbyist for the Washington law firm tal issues. A spokesman for Norton said Greenberg Traurig, he had been winning that the department’s decisions were prop- over tribes around the country, preach- erly made, but that she could not respond ing that they needed to cultivate the new GOP majority in Washington as well as the Democrats they traditionally supported. Proposed casino locations

M Abramoff was among the first to recog-

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ARKANSAS s MISSISSIPPI i s nize the potential power and largess of the s

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20 Jackson growing, $18.5 billion-a-year Indian gam- R Logansport . bling business. Jena Location of Jena 49 Band of Choctaws Abramoff asked the Coushattas, along LOUISIANA TEXAS 59 Kinder Baton Rouge with his other tribal clients, to contribute 10 to politicians and conservative groups. On Vinton New Orleans March 22, 2001, according to tribal lawyer Grand Casino Coushatta David Pore, the Coushattas sent $50,000 0 100 Gulf of Mexico MILES to Federici’s group, the Council of Republi-

BY LARIS KARKLIS—THE WASHINGTON POST cans for Environmental Advocacy. SUNDAY, MARCH 13, 2005 KLMNO PAGE 4

CREA describes its mission as pro- retary and Griles, records show. moting “community-based” environmen- In January 2002, the Coushattas were tal solutions and “highlighting Republican stunned to learn that after secret talks, environmental accomplishments.” Some then-Louisiana Gov. Mike Foster (R) had environmental groups contend its purpose agreed that the Jena Band of Choctaws is to put a pro-environment gloss on min- could build a casino in Vinton, close to the ing and petroleum interests. Texas state line and an hour from the $300 Within weeks of the Coushattas’ con- million-a-year Coushatta Casino Resort in tribution, Federici — who had worked on Kinder, La. The state was to get 15.5 per- Norton’s political campaigns in Colorado cent of the profits. The Coushattas already before she became interior secretary — sent vied for customers with nearby non-Indian a note to Norton’s scheduler requesting a riverboat casinos and did not want any meeting for the tribe’s chairman, Lovelin more competition. Poncho. The meeting did not take place. The Jenas were an impoverished In July, Abramoff e-mailed a tribal group of about 200 people spread through lawyer that he had a call in to “our guy rural north-central Louisiana. They had Steve Griles” and, if need be, would try to won federal recognition as a tribe only in get Norton to send some “positive signals” 1995 and had no reservation. Foster said to Louisiana’s Republican governor about the deal was good for the state. renewing the Coushattas’ own gambling The prospect of a Jena casino upset contract with the state. not only the Coushattas but also the Missis- Abramoff said he would proceed care- sippi Choctaws, who had their own casino. fully, the e-mails obtained by The Post They, too, were Abramoff clients. show. His first step would be “a quiet Days after the Jena plan was meeting” with Griles. “What we don’t want announced, Abramoff faxed Griles a is to have this new administration (which request for a meeting among Griles, Nor- combines a complete lack of order — since ton and Choctaw Chief Philip Martin. some of their appointees are only now get- Griles appeared eager to accommodate ting into place — with hostility to gaming him. He jotted a note on the fax and sent it in general) to do something which could to Norton’s secretaries: “I would like 5/10 hurt us. We have our friends inside in pow- minute quick drop by photo with Sec. since erful positions, and need to make sure they [the Choctaw chief] missed her at the are guiding us.” [September CREA] dinner! . . . Need let In September, tribal chairman Pon- Jack know if this can happen!” cho finally got his meeting with Norton. The meetings — one with Norton and Abramoff arranged for him to attend a a longer one with Griles — did take place on CREA dinner in Georgetown with the sec- Feb. 5, 2002, according to Interior records. SUNDAY, MARCH 13, 2005 KLMNO PAGE 5

A Lobbying Machine Prominent Republican lobbyist Jack Abramoff mounted a far-reaching campaign in 2002-03 on behalf of his client, the Louisiana Coushatta tribe, to prevent the Jena Band of Choctaws from winning federal approval for a rival casino. As part of his efforts, Abramoff sent the Coushattas a list of politicians and organizations, titled “Coushatta Requests,” for whom he wanted the tribe to write checks. Abramoff also worked with former Christian Coalition executive director Ralph Reed to stir up anti-gambling sentiment in Louisiana. In the e-mail at right, Abramoff tells associate Michael Scanlon of a plan by Reed to recruit evangelical leader James Dobson to provide radio ads opposing any more casinos, and also that Abramoff wanted to send Reed money to pay for the ads.

THE WASHINGTON POST SUNDAY, MARCH 13, 2005 KLMNO PAGE 6

Christian Coalition “already has an alarming number of gam- Meanwhile, Abramoff opened a sec- ing establishments” — a letter he copied ond front to bring outside pressure on to White House Chief of Staff Andrew H. Interior against the Jenas. Card Jr. The Interior Department’s White He looked to Reed, the former Chris- House liaison, Doug Domenech, sounded tian Coalition leader who operated several the alarm. consulting companies. Reed has acknowl- “Doug came to me and said, ‘Dobson’s edged receiving as much as $4 million going to shut down our phone system. He’s from Abramoff and his associate, Scan- going to go on the air and tell everyone lon, to organize grass-roots anti-gam- who listens to Focus on the Family to call bling campaigns in Louisiana and Texas. Interior to oppose the Jena compact,’ ” said The money came from casino-rich Indian a former senior Interior official, who spoke tribes, including the Coushattas, but Reed on the condition that he not be identified. said that although he knew of Abramoff’s Federici, of CREA, stoked the ner- connection to the tribes, he did not know vousness at Interior. “From what I have until media accounts surfaced last summer been told,” she wrote Norton spokesman that his fees came from gambling proceeds. Eric Ruff in a Feb. 21 memo, Reed “has Reed then turned to Dobson to mar- been bending the ear of Karl Rove and shal his vast network of evangelicals, possibly even the President about land-in- Abramoff’s e-mails show. trust and gaming issues. I am also hearing Abramoff wrote to Scanlon in a Feb. that Ralph has involved James Dobson and 20, 2002, e-mail that Dobson would make Phyllis Schlafly with this. Supposedly Dob- radio ads against gambling. Reed “may son is planning to run ads and they men- finally have scored for us! Dobson goes up tion Gale by name.” on the radio on this next week!” He sug- Federici said she had also heard that gested giving Reed $60,000 for the ads conservatives in the House “have been to run in Louisiana and Texas. “We’ll then asked to sign a letter to Gale and the Presi- play it in the WH [White House] and Inte- dent slamming DOI [Department of Inte- rior,” he told Scanlon. rior].” The prospect that Dobson would Federici declined to comment on why become involved had an immediate impact she had any involvement with the tribes or at Interior. His regular radio show had a the gambling issue. Along with her memo huge audience, and his Colorado-based to Ruff, she enclosed without explanation Focus on the Family actively campaigned copies of e-mails on the issue that Reed against gambling as a social evil. had sent to Abramoff. One of Dobson’s top aides, Tom Min- There is no evidence that Dobson’s nery, wrote to Norton saying Louisiana group knew of Abramoff’s connection to SUNDAY, MARCH 13, 2005 KLMNO PAGE 7

Reed. But Dobson’s involvement was dis- said he later got the group’s permission to cussed at a senior Interior staff meeting use its name in his own phone-banking and “had its intended effect, which was to effort. The gambling furor raised Vitter’s get everyone worried,” the former senior political profile, and he went on to win the official said. “Norton didn’t want a spec- Senate seat vacated by Democrat John B. tacle involving the department, especially Breaux last year. involving gambling.” At the time of the Jena fight, Vit- Norton’s predecessor, Bruce Babbitt, ter said, he had no idea that Reed and had endured a two-year probe by an inde- Abramoff were behind the group or that it pendent counsel before being cleared of was funded with Coushatta casino money. allegations involving an Indian tribe and When newspaper stories last summer campaign contributions. reported the link, he said, he was “surprised Norton’s aides contacted Dobson’s and quite frankly disappointed.” Vitter said group to calm things down, the former offi- he never dealt with Abramoff and had met cial said, and told it that whatever the deci- him only once, in passing. sion, the Jenas would need to clear more With the March 7 deadline for Inte- hurdles before opening a casino. rior’s decision approaching, Vitter fired off another strong letter to Norton, this one Help on the Hill co-signed by 26 House conservatives, as In addition to the grass-roots pressure Federici had predicted. on Interior, Abramoff and his lobbying Over the next two weeks, senior mem- team sought allies on Capitol Hill. bers of Congress also weighed in with let- David Vitter, a Republican congress- ters, among them Sens. Thad Cochran man from Louisiana and longtime gam- and Trent Lott, Mississippi Republicans bling foe, wrote a three-page letter in Feb- and longtime supporters of the Missis- ruary 2002 to Norton, urging her to reject sippi Choctaws who received $68,500 and the Jena compact. $27,000, respectively, from Abramoff’s Reed was delighted. He forwarded lobbying team and tribal clients. Breaux, to Abramoff the details of four telephone whose legislative aide, Stephanie Leger calls made by top Vitter supporters to the Short, had just gone to work for Abramoff congressman’s staff, lauding his efforts to as a Coushatta lobbyist, sent Norton a block the Jenas. “He’s feeling the love,” stack of anti-Jena constituent mail. Breaux Reed wrote in an e-mail to Abramoff. received $14,250 from the lobbyists and Reed’s Committee Against Gambling their tribal clients. Expansion followed up by mailing thou- On March 6, Poncho, the Coush- sands of postcards to voters praising Vitter. atta chief, approved cutting 61 checks to Vitter, who was mulling a run for governor, members of Congress and their political SUNDAY, MARCH 13, 2005 KLMNO PAGE 8

action committees, some for as much as and Vitter (the other R’s in the delegation) $25,000, according to tribal and federal are furious beyond belief. This is going to election records. The list labeled “Coush- get really ugly. Please let Steve know about atta requests” was prepared by Abramoff, this. Thanks so much Italia!” according to tribal representatives. One Former Abramoff associates said the list provided to The Post by tribal council “Steve” referred to by Abramoff was Steven member David Sickey includes a request Griles. for $100,000 for CREA and the notation: Federici, citing the ongoing federal “Council for Republican Advocacy (Nor- investigation, declined to comment on why ton).” Abramoff would ask her to communicate One day later, Interior announced its with Griles on his behalf. Interior spokes- decision on the Jena casino. Assistant Sec- man Dan DuBray said the department’s retary Neal A. McCaleb said that Louisi- inspector general is reviewing contacts ana’s revenue-sharing proposal amounted between Griles and Federici as part of the to an impermissible tax on the tribe. The government’s Abramoff investigation. casino plan was scuttled. D.C. Superior Court records show that Federici listed Griles as a witness in her Second Chance lawsuit against the owner of a Watergate But the Jenas were not finished. They apartment where she lived. Federici con- and their casino development company tended that Griles had a conversation with hired new lobbyists at Patton Boggs LLP. the owner about her rental arrangements. Soon they had a new proposal for a casino Federici and her lawyer declined to in Logansport, La., in a district represented comment on the e-mail or her relation- by Rep. Jim McCrery (R). ship with Griles. “You have the documents. The Jenas also hired lobbyist Wallace They say what they say. I don’t want her Henderson, former chief of staff to Breaux responding to this,” lawyer Michael G. and then-Rep. W.J. “Billy” Tauzin (R). In Scheininger said. early 2003, the two lawmakers shocked the The Coushattas and the Saginaw Abramoff lobbying team when they offered Chippewa in Michigan, also an Abramoff the Jenas tacit support. client, say they paid Federici’s group a total “We just found out that Billy Tauzin is of $225,000 during the Jena fight. Federici now supporting the Jena effort to put the said she could not confirm the amount casino in McCrery’s district!” Abramoff said because environmental groups guard the in an e-mail to Federici on Feb. 18, 2003. privacy of their donors. “We live and die by “. . . This will be a PR disaster as you can that rule, just as the Sierra Club does,” she imagine, especially if for some reason Inte- said. rior agrees to approve this deal. McCrery Federici said she would be disturbed SUNDAY, MARCH 13, 2005 KLMNO PAGE 9

“if any tribe is intimating they were solic- Griles, who was rarely involved in Indian ited by CREA for anything other than envi- issues, sought to intervene, according to ronmental work. CREA’s money is spent on two former senior department officials. environmental work, period.” “He demanded to be involved, and McCrery, in whose district the Jena said he did not want to see the Jena casino now planned to build, wanted to introduce shoved down the throat of Louisianans,” “a bill to address the Jena issue,” accord- one of the former officials said. ing to an e-mail Leger Short sent in May to Both former officials said Griles Abramoff. She wrote that “Bob” sent her a turned up with a thick binder containing draft bill, which she circulated for reaction, letters and legal arguments opposing the and said she was to meet with him the fol- Jena plan. Griles said it came from a con- lowing day. gressional staffer, but when challenged by “Bob,” Leger Short said in an interview Michael G. Rossetti, who was then Inte- last week, was Bob Brooks, McCrery’s chief rior’s general counsel, he acknowledged of staff, who went on a golfing trip to St. that it had probably been put together by Andrews in Scotland later that summer Abramoff, one of the former officials said. with Abramoff. Brooks did not return tele- In front of several senior staff mem- phone calls seeking comment. bers, Rossetti clashed with Griles, telling Meanwhile, Abramoff lobbyist Todd him he did not want Norton’s decision pro- Boulanger drafted a stiff letter to Norton cess on the Jenas influenced by “outside warning, “we hold you accountable” to people,” according to a person who was shoot down “reservation shopping” by the present. Jenas. Boulanger’s proposed signatories FBI and Interior investigators are were House Majority Leader Tom DeLay examining Griles’s binder as part of their (R-Tex.), House Speaker J. Dennis Hast- probe, according to two people familiar ert (R-Ill.) and Majority Whip Roy Blunt with the matter. Griles, who previously (R-Mo.). The draft was circulated by e-mail came under scrutiny from the department’s to Abramoff and others on the team. inspector general for maintaining close ties In June, Norton received a slightly to his former lobbying firm and energy cli- toned-down version of the letter, this one ents, left his Interior post last December to bearing the House leaders’ signatures. return to consulting. As Norton’s decision on the Jenas Last-Ditch Efforts neared, Vitter, the Louisiana congress- But the prospects for the Jenas at man, made one more try. Working with Interior were growing stronger in Round Abramoff’s legal team, he said, his staff Two, because career officials found their drafted language that he placed in an new plan more palatable. That was when Appropriations conference report that SUNDAY, MARCH 13, 2005 KLMNO PAGE 10

urged the Interior Department to prevent siana. Foster, who had originally backed the the Jenas from establishing a casino on tribe’s bid, unexpectedly decided to leave lands outside their historic tribal area. the issue to his successor, Kathleen Babi- Despite the extraordinary lobbying neaux Blanco. The new governor opposes efforts, Norton in late December approved the Logansport plan on the grounds that the Jena plan to acquire land for a casino in any expansion of gambling is undesirable. Logansport. Interior spokesman DuBray The Jenas are back to seeking a site for said that the department’s decision mak- their casino. ing on the Jenas’ application was properly “based on the facts of the case and applica- Researchers Alice Crites and Julie Tate and research database editor Derek Willis tion of the law.” contributed to this report. But the tribe got stalled again in Loui- DAILY 03-13-05 MD M2 A1 CMYK

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By Robin Wright remaining military and intelligence assets to provide a final pullout date. The United Washington Post Staff Writer into Lebanon’s eastern Bekaa Valley by the States will insist that the second stage end of the month. In addition, he vowed to brings “a complete and prompt withdraw- In talks with a top U.N. envoy, Syria shut down Syria’s intelligence headquar- al,” a senior administration official said promised yesterday to withdraw one-third ters in the capital, Beirut, by April 1. Syri- yesterday, speaking on condition of ano- of its 15,000 troops and 5,000 intelligence an intelligence services have played a crit- nymity because of the sensitivity of the ne- agents in Lebanon by the end of March, as ical role in manipulating Lebanese political gotiations. the first stage of an operation that would life. U.S. intelligence noted significant move- end its 29-year military presence in that A joint Lebanese-Syrian military com- ments by Syrian troops Friday out of Leba- country, according to U.S. and U.N. sourc- mission will then meet on April 7 to deter- non’s coastal areas, particularly in the es. mine the date of the final withdrawal of all north, U.S. officials said. The Associated Under strong pressure from the United forces, according to Western sources famil- Press reported that an initial convoy of States, Europe, Arab governments and an- iar with the negotiations. eight buses carrying hundreds of Syrian ti-Syrian street protests in Lebanon, Presi- U.S. officials welcomed the move but ex- dent Bashar Assad also pledged to move all pressed deep concern about Syria’s failure See SYRIA, A20, Col. 3 BY AMR NABIL — ASSOCIATED PRESS Ayman Nour, who says he will run in Egypt’s multi-party elections in September, flashes a K A Mideast in bloom: New calls for democracy, and praise for Bush. Will change take root? | Outlook, B1 victory sign amid jubilant supporters after being released on bail in Cairo. WORLD, A16. Casino Bid Atlanta Shooting Suspect Caught Europeans Prompted Investigate High-Stakes Lobbying CIA Role in Probe Scrutinizes Abductions Efforts Against Tribe By Susan Schmidt Suspects Possibly Taken Washington Post Staff Writer To Nations That Torture When a ragtag band of Louisiana Indians won their governor’s sup- By Craig Whitlock port for a casino three years ago, Washington Post Foreign Service they never could have fathomed the powerful cast of characters who MILAN — A radical Egyptian cleric would collaborate to flatten them. known as Abu Omar was walking to a Milan Jack Abramoff, one of Washing- mosque for noon prayers in February 2003 ton’s most prominent Republican when he was grabbed on the sidewalk by two lobbyists, tapped into the gambling men, sprayed in the face with chemicals and riches of a rival tribe to orchestrate stuffed into a van. He hasn’t been seen since. a far-reaching campaign against the Milan investigators, however, now appear Jena Band of Choctaws — calling to be close to identifying his kidnappers. Last on senior U.S. senators and con- month, officials showed up at Aviano Air gressmen, the deputy secretary of Base in northern Italy and demanded records the interior and evangelical leaders of any American planes that had flown into or James Dobson and Ralph Reed. out of the joint U.S.-Italian military in- The story of what Abramoff did stallation around the time of the abduction. for the Louisiana Coushatta tribe They also asked for logs of vehicles that had provides the most complete picture entered the base. yet of the role of the lobbyist at the BY JOHN BAZEMORE — ASSOCIATED PRESS Italian authorities suspect the Egyptian DAILY 03-13-05 MD SU A6 CMYK center of a widening federal corrup- Brian Nichols, accused of killing four people, is led to a vehicle by an unidentified officer at Atlanta’s FBI office after surrendering Saturday. was the target of a CIA-sponsored operation tion investigation in Washington. It known as rendition, in which terrorism sus- was reconstructed through inter- pects are forcibly taken for interrogation to views with tribal leaders, govern- countries where torture is practiced. ment officials and former business Police Circle Apartments After Hostage Calls 911 The Italian probe is one of three official in- associates, as well as through Interi- By Manuel Roig-Franzia toms Enforcement agent. past, carrying a man suspected of terror- vestigations that have surfaced in the past A6 Sunday, March 13, 2005 S x The Washington Post or Department and other docu- Washington Post Staff Writer The capture of Brian Nichols, 33, in izing the Atlanta metropolitan area for 27 year into renditions believed to have taken ments and e-mails obtained by The this suburb north of Atlanta played out in hours. Another crowd waited for him out- place in Western Europe. Although the CIA Washington Post. DULUTH, Ga., March 12 — A T-shirt, almost surreal fashion, unfolding on a side an FBI office where he was taken, usually carries out the operations with the Abramoff arranged for Dobson doubling as a white flag of surrender, beautiful, sunny Saturday morning be- straining for a glimpse of Nichols in a T- help or blessing of friendly local intelligence The Players and Reed to pressure federal offi- ended it. There were no blazing guns. No fore a live audience of gawkers. Drivers, shirt and shackles, shuffling into a low- agencies, law enforcement authorities in Ita- cials to reject the Jenas’ bid on anti- dramatic last stand. Just a man in an tuned to the minute-by-minute play-by- slung concrete building. ly, Germany and Sweden are examining gambling grounds. He and his part- apartment, meekly submitting to a small play on radio or television, exited in- “They got you, buddy,” a woman in a whether U.S. agents may have broken local ners drafted anti-Jena letters that army of police officers determined to terstate highways and clogged streets bright red hat taunted, pumping a laws by detaining terrorist suspects on Euro- were then signed by congressional charge him in a crime spree that started leading to the apartment complex where clenched fist. pean soil and subjecting them to abuse or leaders, some of whom have re- in an Atlanta courtroom and left four peo- police had Nichols surrounded. After he A sense of relief, and of disbelief, was maltreatment. ceived thousands of dollars in dona- ple dead, including a Superior Court gave up, the crowd cheered when a blue everywhere. Only hours before, Nichols The CIA has kept details of rendition cases tions from tribes represented by judge and a U.S. Immigration and Cus- Chevy Tahoe with tinted windows sped was being portrayed as a ruthlessly effi- a closely guarded secret, but has defended

See JENA, A6, Col. 1 K Gunman kills 7, then himself, in a Wisconsin hotel. | Nation, A7 See NICHOLS, A8, Col. 1 See RENDITIONS, A18, Col. 1 Interior Secretary Gale J. Steven Griles, Jack Abramoff, David Vitter, then a Michael Scanlon and Ralph Reed was paid Opponents of the Jenas’ A. Norton ultimately Norton’s deputy at lobbying for a congressman from Abramoff were paid up to $4 million by bid invoked the name of ruled in favor of the Interior, allegedly competing Indian tribe, Louisiana, urged Norton $32 million by the Abramoff and Scanlon evangelical leader Jenas Band of mounted a late but mobilized anti-Jenas in February 2002 to Louisiana Coushatta to organize anti- James Dobson in order The Life Recovery Room Rail Deal Could Double Choctaws’ casino unsuccessful challenge efforts outside and turn down the Jenas’ tribe, which operated a gambling campaigns in to pressure federal application. to the Jenas’ plan. inside Washington. application. casino in the state. Texas and Louisiana. officials. Mock Home Helps Iraq Amputees Adjust Development Near Tysons By Susan Levine “Why didn’t you break the meat Washington Post Staff Writer up before you put it in the pan?” By Peter Whoriskey in mind, scores of Tysons Corner “I was under the impression I Washington Post Staff Writer landowners agreed last year to tax Tribe’s Casino Bid Prompted High-Stakes Opposition The wheelchairs, crutches and was only supposed to boil water.” themselves to help pay for con- still-healing bodies show up for “What? Am I the only one here The plan to build a Metrorail struction of the $1.5 billion rail line lunch every Wednesday, crowding with a functional pair of hands?” line from West Falls Church out to their properties. JENA, From A1 into a diminutive kitchen where The kitchen is a regular stop for through Tysons Corner is ad- It is proving a substantial in- A Lobbying Machine the washer and dryer sit cheek by injured soldiers and Marines who vanced as a means of easing North- vestment. The owners of Tysons Abramoff. One ally inserted language op- jowl with the electric range, and come to Walter Reed Army Medical ern Virginia’s traffic woes. But the Corner Center, who are planning a posing the casino into a bill late in the legis- Prominent Republican lobbyist Jack Abramoff mounted a far-reaching campaign in 2002-03 on behalf of his client, the Louisiana Coushatta tribe, to prevent the sink is wedged between the Center during their long recovery rail project is in many ways a mon- mammoth hotel and office center lative process. the Jena Band of Choctaws from winning federal approval for a rival casino. As part of his efforts, Abramoff sent the Coushattas a list of politicians and fridge and a short bend of counter. back from Iraq. It’s part of a mock umental real estate deal that some around the mall, will pay $1.3 mil- And in an attempt to influence the Interi- organizations, titled “Coushatta Requests,” for whom he wanted the tribe to write checks. Abramoff also worked with former Christian No one seems to mind the con- apartment created two years ago critics say will further develop an lion in the rail tax this year alone, or Department — which has the final say on Coalition executive director Ralph Reed to stir up anti-gambling gestion. Most grumble good-natur- and dubbed Fort Independence — already crowded crossroads. new assessments show. West a tribe’s gambling ambitions — Abramoff sentiment in Louisiana. In the e-mail at right, Abramoff tells edly as they brown hamburger a safer place than home to start The mere presence of a rail stop Group Properties, one of the area’s directed his tribal clients to give at least associate Michael Scanlon of a plan by Reed to recruit evangelical meat and pull cupcakes out of the practicing what they soon must do can, under Fairfax County’s land- largest developers, will put up at $225,000 to the Council of Republicans for leader James Dobson to provide radio ads opposing any more Environmental Advocacy, a conservative oven, sometimes bending or stir- on their own. use plan, roughly double the least $825,000. casinos, and also that Abramoff wanted to send Reed money to group that was founded by Gale A. Norton ring awkwardly if a missing limb Inside the ersatz front door are a amount of building permitted on pay for the ads. has yet to be supplanted or an arti- sofa, TV, desk and computer, a re- BY ANDREA BRUCE WOODALL — THE WASHINGTON POST surrounding parcels. And with that See TAX, A12, Col. 1 before President Bush chose her to be his in- ficial limb is too new for real dex- Pfc. Chase Savage, left, and 1st Lt. Erasmo Valles practice their terior secretary. Federal officials are in- terity. See AMPUTEES, A10, Col. 1 cooking in a mock apartment at Walter Reed Army Medical Center. K Organized effort won Loudoun growth fight. | Metro, C7 vestigating the nature of the relationship be- tween the group’s president, Italia Federici, and Norton’s then-deputy, J. Steven Griles. The Jenas lost their first round. They INSIDE came back to win approval for a second casi- no plan. Meantime, the spoils of the lobby- ing war have been bountiful. Postage With Today’s Contents are on A2 Tribal money bolstered the campaign cof- Lined Up High School Gridiron’s House Issue fers of many members of Congress. Dobson For Nationals Title Time Political Ribs An Anne Arundel Personality had the opportunity to flex grass-roots mus- County family sells The Post on the Internet: cle that he would later use to mobilize evan- If you want your Marvin Jones, first in Three area high The annual dinner its homeplace after gelicals for Bush’s reelection. Reed, former stamps to match the washingtonpost.com line at 7:15 yesterday school basketball featured some of the 200 years; a man executive director of the Christian Coali- mood of your mail, morning, gets tickets teams claim state top names in politics struggles to save his tion, quietly received as much as $4 million the post office may to an exhibition championships: the and the news media, boyhood home; and to whip up public sentiment against expan- Potomac (Md.) boys with plenty of have what you want Contents THE WASHINGTON POST game as sales of an artist honors a  2005 sion of gambling in Louisiana and Texas. single-game and girls and Eleanor skewers to go —although you The fading Northeast Washington Reed’s efforts, in turn, boosted support for a place — with hostility to gaming in general) The Interior Department’s White House li- decision approaching, Vitter fired off anoth- mental work. CREA’s money is spent on en- Nationals tickets Roosevelt’s girls. around. might have to order Post neighborhood. Company congressman from Louisiana who was elect- to do something which could hurt us. We aison, Doug Domenech, sounded the alarm. er strong letter to Norton, this one co- vironmental work, period.” begin. METRO, C1 SPORTS, E9 STYLE, D1 by mail. BUSINESS, F5 7 BY PRESTON KERES — THE WASHINGTON POST THE MAGAZINE ed last year to the U.S. Senate. have our friends inside in powerful posi- “Doug came to me and said, ‘Dobson’s signed by 26 House conservatives, as Feder- McCrery, in whose district the Jena now Abramoff profited, as well. He and Mi- tions, and need to make sure they are guid- going to shut down our phone system. He’s ici had predicted. planned to build, wanted to introduce “a bill chael Scanlon, the public affairs executive ing us.” going to go on the air and tell everyone who Over the next two weeks, senior mem- to address the Jena issue,” according to an he recommended to the tribe, were paid $32 In September, tribal chairman Poncho fi- listens to Focus on the Family to call Interior bers of Congress also weighed in with let- e-mail Leger Short sent in May to Abramoff. million over three years by the Coushattas. nally got his meeting with Norton. Abra- to oppose the Jena compact,’ ” said a former ters, among them Sens. Thad Cochran and She wrote that “Bob” sent her a draft bill, A Justice Department task force is exam- moff arranged for him to attend a CREA din- senior Interior official, who spoke on the Trent Lott, Mississippi Republicans and which she circulated for reaction, and said ining the Jena episode as part of its in- ner in Georgetown with the secretary and condition that he not be identified. longtime supporters of the Mississippi she was to meet with him the following day. vestigation into the $82 million Abramoff Griles, records show. Federici, of CREA, stoked the nervous- Choctaws who received $68,500 and “Bob,” Leger Short said in an interview and Scanlon were paid by tribes. Among the In January 2002, the Coushattas were ness at Interior. “From what I have been $27,000, respectively, from Abramoff’s lob- last week, was Bob Brooks, McCrery’s chief areas under scrutiny, according to sources stunned to learn that after secret talks, then- told,” she wrote Norton spokesman Eric bying team and tribal clients. Breaux, whose of staff, who went on a golfing trip to St. An- with knowledge of the probe, are Abra- Louisiana Gov. Mike Foster (R) had agreed Ruff in a Feb. 21 memo, Reed “has been legislative aide, Stephanie Leger Short, had drews in Scotland later that summer with moff’s contacts with the Interior Depart- that the Jena Band of Choctaws could build bending the ear of Karl Rove and possibly just gone to work for Abramoff as a Coushat- Abramoff. Brooks did not return telephone ment and with members of Congress; the a casino in Vinton, close to the Texas state even the President about land-in-trust and ta lobbyist, sent Norton a stack of anti-Jena calls seeking comment. payments to the Republican environmental line and an hour from the $300 million-a- gaming issues. I am also hearing that Ralph constituent mail. Breaux received $14,250 Meanwhile, Abramoff lobbyist Todd Bou- group; the Griles-Federici relationship; and year Coushatta Casino has involved James Dob- from the lobbyists and their tribal clients. langer drafted a stiff letter to Norton warn- Griles’s possible attempt to intervene in the Resort in Kinder, La. The son and Phyllis Schlafly On March 6, Poncho, the Coushatta ing, “we hold you accountable” to shoot

casino decision. state was to get 15.5 per- Proposed casino locations with this. Supposedly chief, approved cutting 61 checks to mem- down “reservation shopping” by the Jenas.

M

i A spokeswoman for Griles said he was un- cent of the profits. The s Dobson is planning to bers of Congress and their political action Boulanger’s proposed signatories were

ARKANSAS s MISSISSIPPI i available for questions, but said Griles Coushattas already vied s run ads and they men- committees, some for as much as $25,000, House Majority Leader Tom DeLay (R- s

i p 55 “didn’t participate in any decision-making for customers with near- Shreveport p tion Gale by name.” according to tribal and federal election rec- Tex.), House Speaker J. Dennis Hastert (R- i

process regarding the Jena Band and gam- by non-Indian riverboat 20 Jackson Federici said she had ords. The list labeled “Coushatta requests” Ill.) and Majority Whip Roy Blunt (R-Mo.). R

ing.” Federici declined to discuss the nature casinos and did not want Logansport . also heard that conserva- was prepared by Abramoff, according to The draft was circulated by e-mail to Abra- Jena Location of Jena of her relationship with Griles or the tribe’s any more competition. 49 tives in the House “have tribal representatives. One list provided to moff and others on the team. contributions to her group, but said all of The Jenas were an im- Band of Choctaws been asked to sign a let- The Post by tribal council member David In June, Norton received a slightly toned- LOUISIANA her group’s activities involve environmental poverished group of TEXAS 59 ter to Gale and the Presi- Sickey includes a request for $100,000 for down version of the letter, this one bearing issues. A spokesman for Norton said that about 200 people spread Kinder Baton Rouge dent slamming DOI [De- CREA and the notation: “Council for Repub- the House leaders’ signatures. the department’s decisions were properly through rural north-cen- 10 partment of Interior].” lican Advocacy (Norton).” Vinton made, but that she could not respond to tral Louisiana. They had New Orleans Federici declined to One day later, Interior announced its de- Last-Ditch Efforts questions because the matter is under in- won federal recognition comment on why she cision on the Jena casino. Assistant Secre- vestigation. as a tribe only in 1995 Grand Casino had any involvement tary Neal A. McCaleb said that Louisiana’s But the prospects for the Jenas at Interior Coushatta A spokesman for Abramoff, Abbe Lowell, and had no reservation. 0 100 with the tribes or the revenue-sharing proposal amounted to an were growing stronger in Round Two, be- called it “highly ironic” that Abramoff is be- Foster said the deal was Gulf of Mexico MILES gambling issue. Along impermissible tax on the tribe. The casino cause career officials found their new plan ing questioned for using “every legal and good for the state. with her memo to Ruff, plan was scuttled. more palatable. That was when Griles, who proper method” to protect his client’s in- The prospect of a Jena BY LARIS KARKLIS—THE WASHINGTON POST she enclosed without ex- was rarely involved in Indian issues, sought terests. “The effort to stop the illegal plac- casino upset not only the planation copies of e- Second Chance to intervene, according to two former senior ing of a Jena casino in a position to destroy Coushattas but also the Mississippi Choc- mails on the issue that Reed had sent to department officials. the economy of Abramoff’s tribal client, the taws, who had their own casino. They, too, Abramoff. But the Jenas were not finished. They “He demanded to be involved, and said he Louisiana Coushattas, was extensive and were Abramoff clients. There is no evidence that Dobson’s group and their casino development company did not want to see the Jena casino shoved successful,” he said. Days after the Jena plan was announced, knew of Abramoff’s connection to Reed. But hired new lobbyists at Patton Boggs LLP. down the throat of Louisianans,” one of the Abramoff faxed Griles a request for a meet- Dobson’s involvement was discussed at a se- Soon they had a new proposal for a casino in former officials said. 45 Days ing among Griles, Norton and Choctaw nior Interior staff meeting and “had its in- Logansport, La., in a district represented by Both former officials said Griles turned Chief Philip Martin. Griles appeared eager tended effect, which was to get everyone Rep. Jim McCrery (R). up with a thick binder containing letters and When the Jena casino plan was unveiled to accommodate him. He jotted a note on worried,” the former senior official said. The Jenas also hired lobbyist Wallace legal arguments opposing the Jena plan. in January 2002, Abramoff had 45 days to the fax and sent it to Norton’s secretaries: “I “Norton didn’t want a spectacle involving Henderson, former chief of staff to Breaux Griles said it came from a congressional act before the Interior Department complet- would like 5/10 minute quick drop by photo the department, especially involving gam- and then-Rep. W.J. “Billy” Tauzin (R). In staffer, but when challenged by Michael G. ed the legal review called for by the Indian with Sec. since [the Choctaw chief] missed bling.” early 2003, the two lawmakers shocked the Rossetti, who was then Interior’s general Gaming Regulatory Act. her at the [September CREA] dinner! . . . Norton’s predecessor, Bruce Babbitt, had Abramoff lobbying team when they offered counsel, he acknowledged that it had prob- The Coushattas were already one of Need let Jack know if this can happen!” endured a two-year probe by an indepen- the Jenas tacit support. ably been put together by Abramoff, one of Abramoff’s wealthiest tribal clients. As a The meetings — one with Norton and a dent counsel before being cleared of allega- “We just found out that Billy Tauzin is the former officials said. lobbyist for the Washington law firm Green- longer one with Griles — did take place on tions involving an Indian tribe and cam- now supporting the Jena effort to put the ca- In front of several senior staff members, berg Traurig, he had been winning over Feb. 5, 2002, according to Interior records. paign contributions. sino in McCrery’s district!” Abramoff said in Rossetti clashed with Griles, telling him he tribes around the country, preaching that Norton’s aides contacted Dobson’s group an e-mail to Federici on Feb. 18, 2003. “. . . did not want Norton’s decision process on they needed to cultivate the new GOP ma- Christian Coalition to calm things down, the former official This will be a PR disaster as you can imag- the Jenas influenced by “outside people,” ac- jority in Washington as well as the Demo- said, and told it that whatever the decision, ine, especially if for some reason Interior cording to a person who was present. crats they traditionally supported. Abramoff Meanwhile, Abramoff opened a second the Jenas would need to clear more hurdles agrees to approve this deal. McCrery and FBI and Interior investigators are exam- was among the first to recognize the poten- front to bring outside pressure on Interior before opening a casino. Vitter (the other R’s in the delegation) are ining Griles’s binder as part of their probe, tial power and largess of the growing, $18.5 against the Jenas. furious beyond belief. This is going to get according to two people familiar with the billion-a-year Indian gambling business. He looked to Reed, the former Christian Help on the Hill really ugly. Please let Steve know about this. matter. Griles, who previously came under Abramoff asked the Coushattas, along Coalition leader who operated several con- Thanks so much Italia!” scrutiny from the department’s inspector with his other tribal clients, to contribute to sulting companies. Reed has acknowledged In addition to the grass-roots pressure on Former Abramoff associates said the general for maintaining close ties to his for- politicians and conservative groups. On receiving as much as $4 million from Abra- Interior, Abramoff and his lobbying team “Steve” referred to by Abramoff was Steven mer lobbying firm and energy clients, left March 22, 2001, according to tribal lawyer moff and his associate, Scanlon, to organize sought allies on Capitol Hill. Griles. his Interior post last December to return to David Pore, the Coushattas sent $50,000 to grass-roots anti-gambling campaigns in David Vitter, a Republican congressman Federici, citing the ongoing federal in- consulting. Federici’s group, the Council of Republicans Louisiana and Texas. The money came from from Louisiana and longtime gambling foe, vestigation, declined to comment on why As Norton’s decision on the Jenas neared, for Environmental Advocacy. casino-rich Indian tribes, including the wrote a three-page letter in February 2002 Abramoff would ask her to communicate Vitter, the Louisiana congressman, made CREA describes its mission as promoting Coushattas, but Reed said that although he to Norton, urging her to reject the Jena with Griles on his behalf. Interior spokes- one more try. Working with Abramoff’s le- “community-based” environmental solu- knew of Abramoff’s connection to the tribes, compact. man Dan DuBray said the department’s in- gal team, he said, his staff drafted language tions and “highlighting Republican environ- he did not know until media accounts sur- Reed was delighted. He forwarded to spector general is reviewing contacts be- that he placed in an Appropriations confer- mental accomplishments.” Some environ- faced last summer that his fees came from Abramoff the details of four telephone calls tween Griles and Federici as part of the ence report that urged the Interior Depart- mental groups contend its purpose is to put gambling proceeds. made by top Vitter supporters to the con- government’s Abramoff investigation. ment to prevent the Jenas from establishing a pro-environment gloss on mining and pe- Reed then turned to Dobson to marshal gressman’s staff, lauding his efforts to block D.C. Superior Court records show that a casino on lands outside their historic tribal troleum interests. his vast network of evangelicals, Abramoff’s the Jenas. “He’s feeling the love,” Reed Federici listed Griles as a witness in her law- area. Within weeks of the Coushattas’ contri- e-mails show. wrote in an e-mail to Abramoff. suit against the owner of a Watergate apart- Despite the extraordinary lobbying ef- bution, Federici — who had worked on Nor- Abramoff wrote to Scanlon in a Feb. 20, Reed’s Committee Against Gambling Ex- ment where she lived. Federici contended forts, Norton in late December approved ton’s political campaigns in Colorado before 2002, e-mail that Dobson would make radio pansion followed up by mailing thousands of that Griles had a conversation with the own- the Jena plan to acquire land for a casino in she became interior secretary — sent a note ads against gambling. Reed “may finally postcards to voters praising Vitter. Vitter, er about her rental arrangements. Logansport. Interior spokesman DuBray to Norton’s scheduler requesting a meeting have scored for us! Dobson goes up on the who was mulling a run for governor, said he Federici and her lawyer declined to com- said that the department’s decision making for the tribe’s chairman, Lovelin Poncho. radio on this next week!” He suggested giv- later got the group’s permission to use its ment on the e-mail or her relationship with on the Jenas’ application was properly The meeting did not take place. ing Reed $60,000 for the ads to run in Loui- name in his own phone-banking effort. The Griles. “You have the documents. They say “based on the facts of the case and applica- In July, Abramoff e-mailed a tribal lawyer siana and Texas. “We’ll then play it in the gambling furor raised Vitter’s political pro- what they say. I don’t want her responding tion of the law.” that he had a call in to “our guy Steve Griles” WH [White House] and Interior,” he told file, and he went on to win the Senate seat to this,” lawyer Michael G. Scheininger But the tribe got stalled again in Louisi- and, if need be, would try to get Norton to Scanlon. vacated by Democrat John B. Breaux last said. ana. Foster, who had originally backed the send some “positive signals” to Louisiana’s The prospect that Dobson would become year. The Coushattas and the Saginaw Chippe- tribe’s bid, unexpectedly decided to leave Republican governor about renewing the involved had an immediate impact at Interi- At the time of the Jena fight, Vitter said, wa in Michigan, also an Abramoff client, say the issue to his successor, Kathleen Babi- Coushattas’ own gambling contract with or. His regular radio show had a huge audi- he had no idea that Reed and Abramoff were they paid Federici’s group a total of neaux Blanco. The new governor opposes the state. ence, and his Colorado-based Focus on the behind the group or that it was funded with $225,000 during the Jena fight. Federici the Logansport plan on the grounds that Abramoff said he would proceed careful- Family actively campaigned against gam- Coushatta casino money. When newspaper said she could not confirm the amount be- any expansion of gambling is undesirable. ly, the e-mails obtained by The Post show. bling as a social evil. stories last summer reported the link, he cause environmental groups guard the pri- The Jenas are back to seeking a site for their His first step would be “a quiet meeting” One of Dobson’s top aides, Tom Minnery, said, he was “surprised and quite frankly vacy of their donors. “We live and die by that casino. with Griles. “What we don’t want is to have wrote to Norton saying Louisiana “already disappointed.” Vitter said he never dealt rule, just as the Sierra Club does,” she said. this new administration (which combines a has an alarming number of gaming estab- with Abramoff and had met him only once, Federici said she would be disturbed “if Researchers Alice Crites and Julie Tate complete lack of order — since some of lishments” — a letter he copied to White in passing. any tribe is intimating they were solicited by and research database editor Derek Willis their appointees are only now getting into House Chief of Staff Andrew H. Card Jr. With the March 7 deadline for Interior’s CREA for anything other than environ- contributed to this report. ABCDE

Democracy Dies in Darkness WEDNESDAY, APRIL 6, 2005 A 3rd DeLay Trip Under Scrutiny 1997 Russia Visit Reportedly Backed by Business Interests

By R. Jeffrey Smith and James V. Grimaldi Washington Post Staff Writers

A six-day trip to Moscow in 1997 by then-House Majority Whip Tom DeLay (R-Tex.) was underwritten by business interests lobbying in support of the Rus- The six-day trip Rep. Tom DeLay sian government, according to four peo- took with his staff cost $57,238. ple with firsthand knowledge of the trip arrangements. DeLay reported that the trip was myrdin, a friend of Russian oil and gas sponsored by a Washington-based non- executives associated with the lobbying profit organization. But interviews with effort. those involved in planning DeLay’s trip say DeLay also dined with the Russian the expenses were covered by a mysterious executives and two Washington-based reg- company registered in the Bahamas that istered lobbyists for the Bahamian-regis- also paid for an intensive $440,000 lobby- tered company, sources say. One of those ing campaign. lobbyists was Jack Abramoff, who is now at It is unclear precisely how the money the center of a federal influence-peddling was transferred from the Bahamian-regis- and corruption probe related to his repre- tered company to the nonprofit. sentation of Indian tribes. The expense-paid trip by DeLay and House members bear some responsi- four of his staff members cost $57,238, bility to ensure that the sponsors for their according to records filed by his office. travel are not masquerading for registered During his six days in Moscow, he played lobbyists or foreign government interests, golf, met with Russian church leaders and legal experts say. House ethics rules bar the talked to Prime Minister Viktor Cherno- acceptance of travel reimbursement from WEDNESDAY, APRIL 6, 2005 KLMNO PAGE 2

The Financing of DeLay’s 1997 Visit to Russia Is Murky

in the past few weeks, an aide said. “The trip was initiated by the National Center,” spokes- man Dan Allen said, “and they were the ones who organized it, planned it and paid for it.” Sources connected to the trip say, however, that Abramoff, acting at the behest of his Rus- sian-connected client, Chelsea, brought the idea to the center.

BY GREGG HILTON — AMERICAN FOREIGN POLICY COUNCIL Lobbyist Julius “Jay” Kaplan, left, shown with Naftasib’s Marina Nevskaya Questions on Three Trips and Alexander Koulakovsky, reportedly met with Rep. Tom DeLay in Moscow. The 1997 Moscow trip is the third foreign trip by DeLay registered lobbyists and foreign agents. to be scrutinized in recent weeks because of In this case, travel funds did not come new statements by those involved that his directly from lobbyists; the money came travel was directly or indirectly financed by from a firm, Chelsea Commercial Enter- registered lobbyists or a foreign agent. prises Ltd., that funded the lobbying cam- Media attention focused on DeLay’s paign, according to the sources. Chelsea travel last month after The Washington was coordinating the effort with a Russian Post reported on DeLay’s participation in a oil and gas company — Naftasib — that has $70,000 expense-paid trip to London and business ties with Russian security institu- Scotland in 2000 that sources said was tions, the sources said. indirectly financed in part by an Indian Aides to DeLay, who is now the House tribe and a gambling services company. majority leader, said that despite the pres- A few days earlier, media attention had ence during the trip of the two registered focused on a $106,921 trip DeLay took to lobbyists, DeLay thought the nonprofit South Korea in 2001 that was financed by a organization — the National Center for tax-exempt group created by a lobbyist on Public Policy Research — was funding the behalf of a Korean businessman. trip on its own. Suggestions to the contrary DeLay on March 18 portrayed criti- have come to light in media reports only cism of his trips and close ties to lobbyists WEDNESDAY, APRIL 6, 2005 KLMNO PAGE 3

as the product of a conspiracy to “destroy of Chelsea, the obscure Bahamian-regis- the conservative movement” by attacking tered company that financed the lobbying its leaders, such as himself. “This is a huge, effort in favor of the Russian government nationwide, concerted effort to destroy that targeted Republicans in Washington everything we believe in,” DeLay told sup- in 1997 and 1998. Those involved in this porters at the Family Research Council, a effort also prepared and coordinated the conservative Christian group. DeLay visit, individuals with direct knowl- The three foreign trips at issue share edge about it said. common elements. The sponsor of the Mos- In that period, prominent Russian cow trip, the Capitol Hill-based National businessmen, as well as the Russian gov- Center for Public Policy Research, also ernment, depended heavily on a flow of bil- sponsored the later London trip. The cen- lions of dollars in annual Western aid and ter is a conservative group that solicits cor- so had good reason to build bridges to Con- porate, foundation and individual dona- gress. House Republicans were becoming tions. increasingly critical of U.S. and interna- Also, Abramoff not only joined DeLay tional lending institutions, such as the in Moscow but also helped organize DeLay’s Overseas Private Investment Corporation subsequent London trip. Abramoff also (OPIC) and the International Monetary filed expense reports indicating he paid Fund, which were then investing heavily in for some of DeLay’s hotel bill in London, Russia’s fragile economy. according to a copy obtained by The Post. Unlike some House conservatives who Edwin A. Buckham, who was DeLay’s scorn such support as “corporate welfare,” chief of staff in 1997 and then became a DeLay proved to be a “yes” vote for insti- Washington lobbyist for major corpora- tutions bolstering Russia in this period. tions, participated in two of the three trips. For example, DeLay voted for a bill that In 1997, he visited Moscow twice — once included the replenishment of billions of with DeLay — and on one of these trips he dollars in IMF funds used to bail out the returned via Paris aboard a Concorde jet Russian economy in 1998. with a ticket he told the Associated Press A DeLay aide said he tried to reform in 1998 had been financed by the National these institutions through the legislative Center. process. DeLay voted to fund these agen- Buckham also joined DeLay on the cies because their financing was usually Korea trip. Buckham did not respond to included in appropriation bills that he gen- messages left by The Post. erally supported, the aide said. They also Untangling the origin of the Moscow noted that OPIC had the strong backing of trip’s financing is complicated by ques- the energy industry, including companies tions about the ownership and origins from Texas that received OPIC financing. WEDNESDAY, APRIL 6, 2005 KLMNO PAGE 4

Meetings in Moscow does not comment on its work for clients. The Russian campaign is detailed in In a Cadwalader memo dated May disclosures filed with the House by lobby- 6, 1997, and obtained by The Post from ists. Those records state that Chelsea, with another source, Levinson depicted the an address listed variously as a post office DeLay trip as one of six organized that box on the British island of Jersey — a tax year as part of the lobbying effort. Others haven off the French coast — or a law firm included an “advance team” that visited in the Bahamas, paid at least $440,000 to Moscow later that month and a visit by fund lobbying aimed at building “support “think tank” experts in June. A copy of the for policies of the Russian government for memo was sent to Abramoff. progressive market reforms and trade with A total of six members of the two lob- the United States,” according to lobbying bying firms participated in these trips, registration documents. according to those involved. Levinson and The Washington offices of two lobby- two Preston Gates lobbyists were members ing and law firms collected the fees. Pres- of the “advance team.” ton Gates Ellis and Rouvelas Meeds LLP — During the third visit, Cadwalader where Abramoff then worked — received lobbyist Julius “Jay” Kaplan joined DeLay $260,000 in 1997 and less than $10,000 and Abramoff at a “fancy dinner” in Mos- in 1998; Cadwalader Wickersham and Taft cow, according to one of those present — a LLP was paid $180,000 in 1997 and less circumstance first reported last month in than $10,000 annually for the next three an article about the trip in National Jour- years, according to the registrations. Their nal’s Congress Daily. listed lobbying targets included members Breaking with traditional practice for of the House and Senate and officials of congressmen traveling overseas, DeLay the State Department and the Agency for did not contact the State Department in International Development. advance or meet with officials at the U.S. “One of the functions of the lobbying Embassy in Moscow regarding his meeting effort was to encourage U.S. policymak- with Chernomyrdin, according to a depart- ers to visit Russia and to learn more about ment spokeswoman who said she checked Russia,” Ellen S. Levinson, a lobbyist then with 10 people at the embassy then or working on the Chelsea account at Cad- responsible for facilitating congressional walader, said in an e-mailed response to trips. questions. Allen, DeLay’s spokesman, said the She said Preston Gates used its “con- State Department was not contacted tacts with policy institutes and congressio- because “the National Center was respon- nal offices” to arrange these trips. Preston sible for the arrangements on the trip, Gates said in a written statement that it including setting up the meetings. Beyond WEDNESDAY, APRIL 6, 2005 KLMNO PAGE 5

that, members of Congress Anatomy of a Trip aren’t required to have the In August 1997, Rep. Tom DeLay (R-Tex.) and several staff members traveled to Russia, where the lawmaker met with two lobbyists, Jack State Department present at Abramoff and Julius “Jay” Kaplan. Abramoff and Kaplan had meetings with leaders from registered to lobby for a Bahamian corporation, which listed building other countries.” support for Russian government policies as its goal. While DeLay’s trip was sponsored by the National Center for Public Policy Research, Last month, Amy Rid- Russian business interests covered the costs, according to people enour, director of the National familiar with details of the trip. The precise mechanism for the transfer of funds is a mystery. The Russian oil company Naftasib Center, posted a statement on denies funding the trip. her organization’s Web site in response to questions about Naftasib Russian oil company, based in Moscow DeLay’s trip to Russia stat- Helps prepare and ing that the center itself had coordinate DeLay trip “sponsored and paid” for all to Russia with the expenses associated with it. Ridenour and her husband Chelsea Commercial Enterprise Corporation in the Bahamas also took part in the visit. But a person familiar $180,000 Hires lobbyists to build $260,000 with planning for the trip said support for “Russian $ governmental policies” $ Abramoff — who has long been close to DeLay — approached Julius Kaplan Jack Abramoff the National Center with the Cadwalader, Wicker- Preston, Gates and sham and Taft LLP Kaplan asks Abramoff Ellis LLP idea for the trip on behalf of for help in finding a non- Kaplan and his client, Chelsea. profit organization to sponsor Suggests trips. Abramoff suggests trip Joins the That person said the expenses “study trips” to the president of the center’s to Russia National Center for Public board in by the center were in turn Policy Research Oct. 1997 replenished by “an American trust account affiliated with National Center for Public Policy Research a law firm” that the person Nonprofit organization declined to name. Sponsors trips Kaplan declined to be to Russia and receives funds to pay for them quoted for this article, citing from an account affiliated with a U.S. law firm, what he called “lawyer-client according to a source. privilege.” But another person with direct knowledge about Tom DeLay Julius AO NaftaSib’s attends trip Kaplan Alexander Koula- the trip arrangements said that with his aides and Jack kovsky and Marina it was Chelsea — which had in August Abramoff Nevskaya escort 1997. meet DeLay DeLay group and host the registered Washington lob- on trip. dinner in DeLay’s honor in Moscow. SOURCES: House lobby and trip disclosure reports, Lobbyists.info, corporation and tax records, and interviews THE WASHINGTON POST WEDNESDAY, APRIL 6, 2005 KLMNO PAGE 6

This note depicts the visit to Moscow by Rep. Tom DeLay as one of six visits coordinated between Marina Nevskaya of Naftasib, a Russian oil and gas company, and the lobbying firms of Preston Gates and Ellis, and Cadwalader, Wickersham and Taft. WEDNESDAY, APRIL 6, 2005 KLMNO PAGE 7

byists in its employ — that “gave the money the lobbying. to NCPPR to pay for the trip.” Naftasib, which oversees interests in This person, who spoke on the condi- mining, oil and gas, construction and other tion of anonymity to protect his business enterprises from a four-story unmarked interests, added: “I didn’t see anything building in downtown Moscow, says it wrong there. All these foundations get is a separate company from Chelsea but money from somewhere, and they give it acknowledges seeking to cultivate friends out.” Moreover, the source said, “this was in Washington in 1997. the Russians’ way of doing business then — In a written statement issued Friday moving money from one firm to another.” in response to questions from The Post, Marina Nevskaya, Naftasib’s deputy gen- Who Financed Travel? eral manager, explained that her firm The question is: Who stood behind “wanted to foster better understanding Chelsea, and thus ultimately financed the between our country and the United States, trip? A regular office for the firm could not and felt that if these trips were successful be located by The Post, in Moscow or at its they would foster a better overall climate two listed addresses; its Bahamian regis- that could ultimately benefit Naftasib as tration ended in 2000, officials there said. well as other Russian enterprises.” Efforts by The Post to find the three men Nevskaya said her company “did not — one Belgian, one British, one Russian — finance in any manner” the DeLay trip or named in lobbying registrations as Chelsea the others described in Levinson’s memo. investors or owners in lobbying disclosures But she said Naftasib “did host and pay were unsuccessful. for some dinners for participants in some A spokeswoman for Cadwalader, of the trips, organized a few other special Paula Zirinsky, said the firm had no con- events . . . and may have provided minor tact information for anyone from Chelsea, courtesies, such as some auto pickups and because “persons that worked on that mat- dropoffs for some visitors during one or ter have not been with the firm since 1997.” more of the trips.” Jonathan Blank, managing partner of the She also acknowledged providing Washington office for Preston Gates, simi- “advice about trip logistics” before they larly said his firm had no current contact occurred and meeting trip participants. information for Chelsea. Nevskaya did not offer details, but those In interviews, however, five individu- involved in organizing DeLay’s trip said als with direct knowledge of the lobbying he met with Nevskaya and was escorted effort separately described executives of a around Moscow by the general manager of diversified Russian energy firm known as Naftasib, Alexander Koulakovsky. DeLay Naftasib as being intimately involved in has also met with Nevskaya and Koula- WEDNESDAY, APRIL 6, 2005 KLMNO PAGE 8

kovsky in Washington since then, accord- among conservatives. A journal published ing to several sources with direct knowl- by a Washington think tank, the American edge of the contact. Foreign Policy Council, claimed within a During the June 1997 trip to Moscow few days after DeLay’s trip ended that it by “think tank” experts — one of the sched- was actually “sponsored” by Naftasib. The uled visits listed in Levinson’s memo — sev- journal — the Russian Reform Monitor — eral participants said they got the impres- also highlighted what it characterized as sion that Preston Gates was the organizer, Naftasib’s tight connections to the Russian Naftasib was the ultimate financier and security establishment. that the trip was a dry run for DeLay’s visit. The journal quoted promotional liter- “It was done through or under the ature for Naftasib that described the firm auspices of NCPPR,” said Bart Adams, a as a major shareholder in Gazprom, the North Carolina journalist who joined the state-controlled oil and gas giant. The lit- expense-paid trip. But he said he recalls erature also said Natfasib’s largest clients hearing that “the money was coming from were the ministries of defense and inter- a Russian oil company.” nal affairs. The literature also states that David Lowe, an official at the National Nevskaya was an instructor at a school Endowment for Democracy, said he was for Russian military intelligence officers. recruited to join the trip by the Preston She declined to address those claims in Gates firm; former Senate aide James P. response to questions from The Post. Lucier, who also was on the trip, said Naf- Steve Biegun, who was then a senior tasib’s executives played such a large role Russia expert for the Senate Foreign that they “seemed to be the clients of Pres- Relations Committee and later served as ton Gates,” a claim the firm denies. “Some executive secretary to the National Secu- American investment or tie was the end rity Council during President Bush’s first goal,” said a third participant, “and the plan term, said he deliberately blocked a meet- was to bring over some congressmen” later. ing that Nevskaya sought with Jesse Helms A publicist who works for Abramoff (R-N.C.), then the committee chairman. attorney Abbe David Lowell said Abramoff “They were a client of the lobbying firm did lobby for Chelsea but not for Naf- Preston Gates,” said Biegun, who is now a tasib. The publicist said Abramoff thought Ford Motor Co. vice president for interna- “bringing a greater understanding of Rus- tional governmental affairs. “I made some sia to American decision makers was and is calls . . . and got enough warning signs” to good for America.” ensure that Helms avoided dealing with The efforts by Naftasib’s executives to the firm. Biegun said the information he curry favor among Republicans — includ- obtained from his sources was “nothing ing DeLay — sowed controversy at the time that would stand up in court” but he wor- WEDNESDAY, APRIL 6, 2005 KLMNO PAGE 9

ried that in this period, “a lot of unsavory We did work with Naftasib representatives figures from Russia were buying their way when their interests coincided with our cli- into meetings and getting their pictures ent’s.” Blank added that “we are confident taken, to put on the wall back in Moscow.” that the individuals still with the firm who “I just had my doubts, and nobody did were involved at the time acted ethically, anything to allay them,” Biegun said. “I did appropriately, and in service of the client.” not know who either of them really were.” Abramoff left Preston Gates at the end Asked to comment, Blank, Preston of 2000. Gates’s Washington managing partner, said in a written statement: “Chelsea was Staff writer Susan Schmidt, research editor Lucy Shackelford, and researchers Alice Crites and our only client. Naftasib was not our client. Madonna Lebling contributed to this report. DAILY 04-06-05 DC M2 A1 CMYK

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Md. Passes Opening Up to Spring U.S. Will Rules on Tighten Wal-Mart Passport Insurance Rules Bill Obligates Firms On Health Spending Canada, Mexico Borders to Be By John Wagner and Michael Barbaro Affected by 2008 Washington Post Staff Writers By John Mintz Maryland lawmakers yesterday Washington Post Staff Writer approved legislation that would ef- fectively require Wal-Mart to boost Millions of Americans will be re- spending on health care, a direct leg- quired to show passports when they islative thrust against a corporate gi- reenter the United States from Can- ant that is already on the defensive ada, Mexico and the Caribbean by on many fronts nationwide. 2008 under new rules announced “We’re looking for responsible yesterday by the State and Home- businesses to ante up . . . and pro- land Security departments. vide adequate health care,” said Sen. The new policy, designed to Thomas M. Middleton (D-Charles), thwart terrorists from exploiting the the Finance Committee chairman, relative ease of travel in North as the Senate approved the measure America, means that Americans with a majority wide enough to sur- who lack U.S. passports will have to vive an anticipated veto. A similar obtain them to travel between the bill has cleared the House of Dele- United States and neighboring na- gates, and legislators expect to rec- BY SARAH L. VOISIN — THE WASHINGTON POST tions. It also will require Mexicans oncile their differences easily. A warm spring day brings out residents, tourists and some of the Yoshino cherry blossoms alongside the Tidal Basin. Higher temperatures and more and Canadians to present either Lawmakers said they did not set blooms are forecast for today, with peak bloom expected Friday and Saturday, the day of the National Cherry Blossom Festival parade. Story, B1. passports or another official docu- out to single out Wal-Mart when ment to enter this country, with de- they drafted a bill requiring organi- tails to be determined. zations with more than 10,000 em- Currently, U.S. citizens in most ployees to spend at least 8 percent of cases need to show only driver’s li- their payroll on health benefits — or censes to reenter this country from put the money directly into the A 3rd DeLay Trip Under Scrutiny Mexico and Canada, though officials state’s health program for the poor. said that since the Sept. 11, 2001, at- But as debate raged in the Senate tacks, some officials at border cross- yesterday, it was clear that the giant 1997 Russia Visit Reportedly Backed by Business Interests ings at times have asked for addi- retailer, which has 15,000 workers tional documents. in Maryland, was the only company By R. Jeffrey Smith DeLay reported that the trip the nonprofit. “We’re asking people to think of that would be affected. and James V. Grimaldi was sponsored by a Washington- The expense-paid trip by De- travel in and out of the U.S. [in this “This is crossing a bridge,” said Washington Post Staff Writers based nonprofit organization. Lay and four of his staff members hemisphere] in the same way they Sen. E.J. Pipkin (Queen Anne’s), But interviews with those in- cost $57,238, according to rec- would travel to and from Europe,” who joined the Senate’s other Re- A six-day trip to Moscow in volved in planning DeLay’s trip ords filed by his office. During his said Elaine K. Dezenski, deputy as- publicans in voting against the bill. 1997 by then-House Majority say the expenses were covered by six days in Moscow, he played The six-day trip Rep. Tom DeLay sistant secretary for border and “Annapolis is telling private busi- Whip Tom DeLay (R-Tex.) was a mysterious company registered golf, met with Russian church took with his staff cost $57,238. transportation security at the De- ness in the private marketplace what underwritten by business inter- in the Bahamas that also paid for leaders and talked to Prime Min- partment of Homeland Security. ests lobbying in support of the an intensive $440,000 lobbying ister Viktor Chernomyrdin, a sian executives and two Washing- Some travel industry executives See WAL-MART, A10, Col. 1 Russian government, according campaign. friend of Russian oil and gas exec- ton-based registered lobbyists for predicted that the initiative could to four people with firsthand It is unclear precisely how the utives associated with the lobby- the Bahamian-registered compa- lead to long lines for foreigners en- knowledge of the trip arrange- money was transferred from the ing effort. ments. Bahamian-registered company to DeLay also dined with the Rus- See DELAY, A6, Col. 1 See PASSPORT, A10, Col. 1 ABC News DAILY 04-06-05 MD SU A6 CMYK Anchor Has No Path to Rome Too Steep Lung Cancer For These Polish Pilgrims A6 Wednesday, April 6, 2005 S NATIONAL NEWS The Washington Post Peter Jennings Plans Bus Caravan Struggles Over Alps to Pope’s Funeral To Stay on the Air The Financing of DeLay’s 1997 Visit to Russia Is Murky By Craig Whitlock though I could have gotten on a plane,” said By Howard Kurtz Washington Post Foreign Service Ewa Kucharska, 46, a doctor from Krakow, DELAY, From A1 included members of the House Washington Post Staff Writer Poland, who came with five colleagues from and Senate and officials of the State KLAGENFURT, Austria, April 5 — Thir- her medical practice. “I decided to cope ny, sources say. One of those lobby- Department and the Agency for In- Anatomy of a Trip Peter Jennings, the last of the teen hours into the ride, the bus’s engine with all the inconveniences so I could dem- ists was Jack Abramoff, who is now ternational Development. In August 1997, Rep. Tom DeLay (R-Tex.) and several staff members three long-dominant network an- gave out, strained by the long nighttime onstrate my love and admiration for the Ho- at the center of a federal influence- “One of the functions of the lob- chors still on the job, said yester- haul up a winding Alpine road. The lights ly Father.” peddling and corruption probe re- bying effort was to encourage U.S. traveled to Russia, where the lawmaker met with two lobbyists, Jack day he has been diagnosed with went out. Spirits dimmed among the 45 Pol- “There will be a lot of uncertainty,” she lated to his representation of Indi- policymakers to visit Russia and to Abramoff and Julius “Jay” Kaplan. Abramoff and Kaplan had lung cancer. ish pilgrims aboard, but they knew what to said, from her seat. “At the same time, this an tribes. learn more about Russia,” Ellen S. registered to lobby for a Bahamian corporation, which listed building Jennings, 66, plans to begin che- do. As the driver tinkered with the engine in is a moment that unites people from all over House members bear some re- Levinson, a lobbyist then working support for Russian government policies as its goal. While DeLay’s motherapy and to continue to an- the darkness, they helped him along with si- the world, and I wish to be a part of it.” sponsibility to ensure that the on the Chelsea account at Cad- trip was sponsored by the National Center for Public Policy Research, chor ABC’s “World News Tonight” lent prayers. By bus, by car, by air and train, Poles are sponsors for their travel are not walader, said in an e-mailed re- when he can, but specialists said BY LUCIAN PERKINS — THE WASHINGTON POST In five minutes, success — the engine re- headed en masse to Rome — travel agents Russian business interests covered the costs, according to people masquerading for registered lobby- sponse to questions. familiar with details of the trip. The precise mechanism for the the decision to forgo surgery sug- sumed its comforting rumble. Lights suggest the number may be 200,000; offi- ists or foreign government inter- She said Preston Gates used its gests a more ad- Thousands Still Streaming A Complex Time burned bright again and there was elation in cials in Rome are concerned that as many as ests, legal experts say. House ethics “contacts with policy institutes and transfer of funds is a mystery. The Russian oil company Naftasib vanced form of Through St. Peter’s Square For Catholics in America the cabin, then a communal prayer of 2 million could arrive from Poland. Airlines rules bar the acceptance of travel congressional offices” to arrange denies funding the trip. cancer for which thanks. Bus A-2, two large portraits of Pope are overbooked, even with the addition of reimbursement from registered these trips. Preston Gates said in a long-term surviv- Kumorek Dominque, 6, above, whose family Some U.S. cardinals acknowledge that the John Paul II affixed to its windshield, began dozens of charter flights. The Web site of a traveled from Poland, waves the national next pope will not be American, and many lobbyists and foreign agents. written statement that it does not Naftasib al rates are rela- its labored climb again, headed across the business that specializes in organizing spe- In this case, travel funds did not comment on its work for clients. tively low. flag amid the thousands who waited hours Catholics here hope for a successor more Alps to Rome, for the funeral of Poland’s cial pilgrim rail packages crashed after too Russian oil company, based in Moscow to pay last respects to the pope. progressive than John Paul II. come directly from lobbyists; the In a Cadwalader memo dated Jennings had most famous son. money came from a firm, Chelsea May 6, 1997, and obtained by The Helps prepare and WORLD, planned to an- A12 WORLD, A11 “It was my choice to get on a bus, even See POLES, A13, Col. 1 Commercial Enterprises Ltd., that BY GREGG HILTON — AMERICAN FOREIGN POLICY COUNCIL Post from another source, Lev- coordinate DeLay trip chor last night’s funded the lobbying campaign, ac- Lobbyist Julius “Jay” Kaplan, left, shown with Naftasib’s Marina Nevskaya inson depicted the DeLay trip as to Russia with newscast, but de- cording to the sources. Chelsea was and Alexander Koulakovsky, reportedly met with Rep. Tom DeLay in Moscow. one of six organized that year as Peter Jennings cided an hour be- coordinating the effort with a Rus- part of the lobbying effort. Others plans to remain fore airtime that INSIDE sian oil and gas company — Nafta- in,” DeLay told supporters at the Private Investment Corporation included an “advance team” that at anchor desk. his voice was too Saul Bellow, 1915-2005 Chelsea Commercial Enterprise sib — that has business ties with Family Research Council, a conser- (OPIC) and the International Mon- visited Moscow later that month weak. In a vid- Corporation in the Bahamas Russian security institutions, the vative Christian group. etary Fund, which were then in- and a visit by “think tank” experts eotaped message, he disclosed the Judge Urges Delay Jackson’s Ex-Maid sources said. The three foreign trips at issue vesting heavily in Russia’s fragile in June. A copy of the memo was diagnosis in a raspy voice, saying, Aides to DeLay, who is now the share common elements. The spon- economy. sent to Abramoff. $180,000 $260,000 “Yes, I was a smoker until about 20 Nobel Winner Penned Flawed Heroes In D.C. Hazmat Ban Details Boys’ Visits Hires lobbyists to build House majority leader, said that de- sor of the Moscow trip, the Capitol A total of six members of the two years ago, and I was weak and Bart Barnes A judge proposes a timeout Michael Jackson showered Unlike some House conserva- support for “Russian By spite the presence during the trip of Hill-based National Center for Pub- tives who scorn such support as lobbying firms participated in these $ $ smoked over 9/11. But whatever Special to The Washington Post while the District and CSX with one boy at his Neverland governmental policies” the reason, the news does slow you seek an accord over hazmat ranch, a former employee of the two registered lobbyists, De- lic Policy Research, also sponsored “corporate welfare,” DeLay proved trips, according to those involved. down a bit. . . . The National Can- Saul Bellow, a master storyteller, literary artisan rail shipments in the city. the entertainer testifies. Lay thought the nonprofit organi- the later London trip. The center is to be a “yes” vote for institutions Levinson and two Preston Gates zation — the National Center for a conservative group that solicits bolstering Russia in this period. lobbyists were members of the “ad- Julius Kaplan cer Institute says that we are survi- and Nobel Prize-winning author whose work re- METRO, B1 STYLE, C1 Jack Abramoff vors from the moment of diagno- flected the comic, the tragic, the absurd and the Public Policy Research — was corporate, foundation and individ- For example, DeLay voted for a bill vance team.” Cadwalader, Wicker- Preston, Gates and funding the trip on its own. Sugges- ual donations. that included the replenishment of During the third visit, Cadwalad- sis. I will continue to do the mundane in the personal odysseys of the 20th- sham and Taft LLP Kaplan asks Abramoff Ellis LLP broadcast; on good days my voice century Everyman, died yesterday at his home in Lawmakers Avoid Winter All-Met tions to the contrary have come to Also, Abramoff not only joined billions of dollars in IMF funds er lobbyist Julius “Jay” Kaplan for help in finding a non- will not always be like this.” Brookline, Mass. He was 89. light in media reports only in the DeLay in Moscow but also helped used to bail out the Russian econo- joined DeLay and Abramoff at a profit organization to sponsor Social Security Fray Teams Announced past few weeks, an aide said. organize DeLay’s subsequent Lon- my in 1998. “fancy dinner” in Moscow, accord- Suggests trips. Abramoff suggests trip Joins the After a four-month period in No cause of death was given, although his long- “study trips” center’s which Tom Brokaw retired at time friend and attorney, Walter Pozen, said he had Congress shuns the spotlight The area’s top high school “The trip was initiated by the don trip. Abramoff also filed ex- A DeLay aide said he tried to re- ing to one of those present — a cir- to the president of the National Center,” spokesman Dan pense reports indicating he paid for form these institutions through the cumstance first reported last to Russia National Center for Public board in NBC, Dan Rather relinquished the been in declining health but was “wonderfully sharp in the campaign for retirement- athletes in basketball, hockey, Oct. 1997 anchor chair at CBS and Ted Kop- to the end.” He said Bellow had been working reg- system restructuring largely swimming, track and wrestling Allen said, “and they were the ones some of DeLay’s hotel bill in Lon- legislative process. DeLay voted to month in an article about the trip in Policy Research ularly until the last year or so. driven by the White House. are honored. who organized it, planned it and don, according to a copy obtained fund these agencies because their National Journal’s Congress Daily. paid for it.” Sources connected to by The Post. financing was usually included in Breaking with traditional prac- See JENNINGS, A9, Col. 1 Bellow was among the most acclaimed and cele- NATION, A4 Section H brated writers of his generation. His honors also in- the trip say, however, that Abra- Edwin A. Buckham, who was De- appropriation bills that he gener- tice for congressmen traveling National Center for Public Policy Research cluded three National Book Awards and a Pulitzer 1997 PHOTO BY ELISE AMENDOLA — ASSOCIATED PRESS moff, acting at the behest of his Lay’s chief of staff in 1997 and then ally supported, the aide said. They overseas, DeLay did not contact Nonprofit organization The Post on the Internet: Something to Nibble On Russian-connected client, Chelsea, became a Washington lobbyist for also noted that OPIC had the the State Department in advance or washingtonpost.com Prize for his 1975 novel “Humboldt’s Gift.” His Saul Bellow’s comic and tragic work won three most ardent admirers said he was the greatest Eng- National Book Awards and a Pulitzer Prize. Demand has made the Nibby Bar — brought the idea to the center. major corporations, participated in strong backing of the energy in- meet with officials at the U.S. Em- Sponsors trips lish-language novelist of his time. chocolate with cocoa nibs — scarce. two of the three trips. In 1997, he dustry, including companies from bassy in Moscow regarding his to Russia and receives Questions on Three Trips visited Moscow twice — once with Texas that received OPIC financ- meeting with Chernomyrdin, ac- Contents He wrote stories that reflected “human un- tragic episodes in quick succession . . . exuberant This cookie recipe will tide you over. funds to pay for them  2005 derstanding and subtle analysis of contemporary ideas, flashing irony, hilarious comedy and burning DeLay — and on one of these trips ing. cording to a department spokes- from an account affiliated The FOOD, F1 The 1997 Moscow trip is the he returned via Paris aboard a Con- woman who said she checked with Washington culture . . . entertaining adventure, drastic and compassion,” the Nobel committee said in award- with a U.S. law firm, Post Today’s contents are on A2 third foreign trip by DeLay to be corde jet with a ticket he told the Meetings in Moscow 10 people at the embassy then or according to a source. 1 Company scrutinized in recent weeks be- Associated Press in 1998 had been responsible for facilitating congres- K Our last literary giant. | Style, C1 See BELLOW, A8, Col. 1 cause of new statements by those financed by the National Center. The Russian campaign is de- sional trips. involved that his travel was directly Buckham also joined DeLay on tailed in disclosures filed with the Allen, DeLay’s spokesman, said Tom DeLay Julius AO NaftaSib’s or indirectly financed by registered the Korea trip. Buckham did not re- House by lobbyists. Those records the State Department was not con- attends trip Kaplan Alexander Koula- lobbyists or a foreign agent. spond to messages left by The Post. state that Chelsea, with an address tacted because “the National Cen- with his aides and Jack kovsky and Marina Media attention focused on De- Untangling the origin of the listed variously as a post office box ter was responsible for the arrange- in August Abramoff Nevskaya escort Lay’s travel last month after The Moscow trip’s financing is compli- on the British island of Jersey — a ments on the trip, including setting 1997. meet DeLay DeLay group and host Washington Post reported on De- cated by questions about the own- tax haven off the French coast — or up the meetings. Beyond that, on trip. dinner in DeLay’s Lay’s participation in a $70,000 ex- ership and origins of Chelsea, the a law firm in the Bahamas, paid at members of Congress aren’t re- honor in Moscow. pense-paid trip to London and obscure Bahamian-registered com- least $440,000 to fund lobbying quired to have the State Depart- SOURCES: House lobby and trip disclosure reports, Scotland in 2000 that sources said pany that financed the lobbying ef- aimed at building “support for pol- ment present at meetings with Lobbyists.info, corporation and tax records, and interviews was indirectly financed in part by fort in favor of the Russian govern- icies of the Russian government for leaders from other countries.” THE WASHINGTON POST an Indian tribe and a gambling ser- ment that targeted Republicans in progressive market reforms and Last month, Amy Ridenour, di- vices company. A few days earlier, Washington in 1997 and 1998. trade with the United States,” ac- rector of the National Center, post- media attention had focused on a Those involved in this effort also cording to lobbying registration ed a statement on her organiza- but acknowledges seeking to culti- utives to curry favor among Repub- $106,921 trip DeLay took to South prepared and coordinated the De- documents. tion’s Web site in response to vate friends in Washington in 1997. licans — including DeLay — Korea in 2001 that was financed by Lay visit, individuals with direct The Washington offices of two questions about DeLay’s trip to In a written statement issued Fri- sowed controversy at the time a tax-exempt group created by a knowledge about it said. lobbying and law firms collected Russia stating that the center itself day in response to questions from among conservatives. A journal lobbyist on behalf of a Korean busi- In that period, prominent Rus- the fees. Preston Gates Ellis and had “sponsored and paid” for all the The Post, Marina Nevskaya, Nafta- published by a Washington think nessman. sian businessmen, as well as the Rouvelas Meeds LLP — where expenses associated with it. Ride- sib’s deputy general manager, ex- tank, the American Foreign Policy DeLay on March 18 portrayed Russian government, depended Abramoff then worked — received nour and her husband also took plained that her firm “wanted to Council, claimed within a few days criticism of his trips and close ties heavily on a flow of billions of dol- $260,000 in 1997 and less than part in the visit. foster better understanding be- after DeLay’s trip ended that it was to lobbyists as the product of a con- lars in annual Western aid and so $10,000 in 1998; Cadwalader Wick- But a person familiar with plan- tween our country and the United actually “sponsored” by Naftasib. spiracy to “destroy the conserva- had good reason to build bridges to ersham and Taft LLP was paid ning for the trip said Abramoff — States, and felt that if these trips The journal — the Russian Reform tive movement” by attacking its Congress. House Republicans were $180,000 in 1997 and less than who has long been close to DeLay were successful they would foster a Monitor — also highlighted what it leaders, such as himself. “This is a becoming increasingly critical of $10,000 annually for the next three — approached the National Center better overall climate that could ul- characterized as Naftasib’s tight huge, nationwide, concerted effort U.S. and international lending in- years, according to the registra- with the idea for the trip on behalf timately benefit Naftasib as well as connections to the Russian security to destroy everything we believe stitutions, such as the Overseas tions. Their listed lobbying targets of Kaplan and his client, Chelsea. other Russian enterprises.” establishment. That person said the expenses by Nevskaya said her company “did The journal quoted promotional the center were in turn replenished not finance in any manner” the De- literature for Naftasib that de- by “an American trust account affil- Lay trip or the others described in scribed the firm as a major share- iated with a law firm” that the per- Levinson’s memo. But she said Naf- holder in Gazprom, the state-con- son declined to name. tasib “did host and pay for some trolled oil and gas giant. The Kaplan declined to be quoted for dinners for participants in some of literature also said Natfasib’s larg- this article, citing what he called the trips, organized a few other est clients were the ministries of “lawyer-client privilege.” But an- special events . . . and may have defense and internal affairs. The lit- other person with direct knowl- provided minor courtesies, such as erature also states that Nevskaya edge about the trip arrangements some auto pickups and dropoffs for was an instructor at a school for said that it was Chelsea — which some visitors during one or more of Russian military intelligence offi- had the registered Washington lob- the trips.” cers. She declined to address those byists in its employ — that “gave She also acknowledged provid- claims in response to questions the money to NCPPR to pay for the ing “advice about trip logistics” be- from The Post. trip.” fore they occurred and meeting trip Steve Biegun, who was then a se- This person, who spoke on the participants. Nevskaya did not of- nior Russia expert for the Senate condition of anonymity to protect fer details, but those involved in or- Foreign Relations Committee and his business interests, added: “I ganizing DeLay’s trip said he met later served as executive secretary didn’t see anything wrong there. with Nevskaya and was escorted to the National Security Council All these foundations get money around Moscow by the general during President Bush’s first term, from somewhere, and they give it manager of Naftasib, Alexander said he deliberately blocked a meet- out.” Moreover, the source said, Koulakovsky. DeLay has also met ing that Nevskaya sought with Jes- “this was the Russians’ way of do- with Nevskaya and Koulakovsky in se Helms (R-N.C.), then the com- ing business then — moving mon- Washington since then, according mittee chairman. ey from one firm to another.” to several sources with direct “They were a client of the lobby- knowledge of the contact. ing firm Preston Gates,” said Bie- Who Financed Travel? During the June 1997 trip to gun, who is now a Ford Motor Co. Moscow by “think tank” experts — vice president for international The question is: Who stood be- one of the scheduled visits listed in governmental affairs. “I made some hind Chelsea, and thus ultimately Levinson’s memo — several partic- calls . . . and got enough warning financed the trip? A regular office ipants said they got the impression signs” to ensure that Helms avoid- for the firm could not be located by that Preston Gates was the organiz- ed dealing with the firm. Biegun The Post, in Moscow or at its two er, Naftasib was the ultimate fi- said the information he obtained listed addresses; its Bahamian reg- nancier and that the trip was a dry from his sources was “nothing that istration ended in 2000, officials run for DeLay’s visit. would stand up in court” but he there said. Efforts by The Post to “It was done through or under worried that in this period, “a lot of find the three men — one Belgian, the auspices of NCPPR,” said Bart unsavory figures from Russia were one British, one Russian — named Adams, a North Carolina journalist buying their way into meetings and in lobbying registrations as Chel- who joined the expense-paid trip. getting their pictures taken, to put sea investors or owners in lobbying But he said he recalls hearing that on the wall back in Moscow.” disclosures were unsuccessful. “the money was coming from a “I just had my doubts, and no- A spokeswoman for Cadwalader, Russian oil company.” body did anything to allay them,” Paula Zirinsky, said the firm had no David Lowe, an official at the Na- Biegun said. “I did not know who contact information for anyone tional Endowment for Democracy, either of them really were.” from Chelsea, because “persons said he was recruited to join the Asked to comment, Blank, Pres- that worked on that matter have trip by the Preston Gates firm; for- ton Gates’s Washington managing not been with the firm since 1997.” mer Senate aide James P. Lucier, partner, said in a written state- Jonathan Blank, managing partner who also was on the trip, said Naf- ment: “Chelsea was our only client. of the Washington office for Pres- tasib’s executives played such a Naftasib was not our client. We did ton Gates, similarly said his firm large role that they “seemed to be work with Naftasib representatives had no current contact information the clients of Preston Gates,” a when their interests coincided with for Chelsea. claim the firm denies. “Some Amer- our client’s.” Blank added that “we In interviews, however, five indi- ican investment or tie was the end are confident that the individuals viduals with direct knowledge of goal,” said a third participant, “and still with the firm who were in- the lobbying effort separately de- the plan was to bring over some volved at the time acted ethically, scribed executives of a diversified congressmen” later. appropriately, and in service of the Russian energy firm known as Naf- A publicist who works for Abra- client.” tasib as being intimately involved moff attorney Abbe David Lowell Abramoff left Preston Gates at in the lobbying. said Abramoff did lobby for Chel- the end of 2000. Naftasib, which oversees inter- sea but not for Naftasib. The pub- ests in mining, oil and gas, con- licist said Abramoff thought “bring- Staff writer Susan Schmidt, This note depicts the visit to Moscow by struction and other enterprises ing a greater understanding of research editor Lucy Shackelford, Rep. Tom DeLay as one of six visits coordinated between from a four-story unmarked build- Russia to American decision mak- and researchers Alice Crites and Marina Nevskaya of Naftasib, a Russian oil and gas company, and the ing in downtown Moscow, says it is ers was and is good for America.” Madonna Lebling contributed to lobbying firms of Preston Gates and Ellis, and Cadwalader, Wickersham and Taft. a separate company from Chelsea The efforts by Naftasib’s exec- this report. ABCDE

Democracy Dies in Darkness SUNDAY, APRIL 24, 2005 DeLay Airfare Was Charged To Lobbyist’s Credit Card

By R. Jeffrey Smith that his expenses on this trip were paid Washington Post Staff Writer by a nonprofit organization and that the financial arrangements for it were proper. The airfare to London and Scotland in He has also said he had no way of know- 2000 for then-House Majority Whip Tom ing that any lobbyist might have finan- DeLay (R-Tex.) was charged to an Ameri- cially supported the trip, either directly or can Express card issued to Jack Abramoff, through reimbursements to the nonprofit a Washington lobbyist at the center of a organization. federal criminal and tax probe, according The documents obtained by The to two sources who know Abramoff’s credit Washington Post, including receipts for his card account number and to a copy of a hotel stays in Scotland and London and travel invoice displaying that number. billings for his golfing during the trip at DeLay’s expenses during the same trip for food, phone calls DeLay’s Itinerary and other items at a golf course Travelers for whom Law firm that employed lobbyist Jack hotel in Scotland were billed to schedule was prepared. Abramoff made trip arrangements. a different credit card also used on the trip by a second registered Washington lobbyist, Edwin A. Buckham, according to receipts documenting that portion of the trip. House ethics rules bar law- makers from accepting travel and THE WASHINGTON POST related expenses from registered lobbyists. DeLay, who is now Flight for first leg of Rep. Credit card number (redacted by The House majority leader, has said Tom DeLay’s trip to London Washington Post) that paid for DeLay’s plane and Scotland. ticket. Sources say card belonged to Abramoff.

THE WASHINGTON POST SUNDAY, APRIL 24, 2005 KLMNO PAGE 2

DeLay Airfare Was Charged to Lobbyist’s Credit Card

BY CARLOS JAVIER SANCHEZ — HOUSTON CHRONICLE VIA ASSOCIATED PRESS Protesters greet House Majority Leader Tom DeLay (R-Tex.) on his arrival in Houston yesterday for the dedication of the International Space Station Monument. the famed St. Andrews course in Scotland, his travel. These contacts raise questions substantiate for the first time that some of about DeLay’s statement that he had no DeLay’s expenses on the trip were billed way of knowing about the financial and to charge cards used by the two lobbyists. logistical support provided by Abramoff The invoice for DeLay’s plane fare lists the and his firm. name of what was then Abramoff’s lobby- Yesterday, DeLay’s lawyer, Bobby R. ing firm, Preston Gates & Ellis. Burchfield, said that DeLay’s staff was Multiple sources, including DeLay’s aware that Preston Gates was trying to then-chief of staff Susan Hirschmann, arrange meetings and hotels for the trip have confirmed that DeLay’s congressio- but that DeLay was unaware of the “logis- nal office was in direct contact with Pres- tics” of bill payments, and that DeLay “con- ton Gates about the trip itinerary before tinues to understand his expenses” were DeLay’s departure, to work out details of properly paid by the nonprofit organiza- SUNDAY, APRIL 24, 2005 KLMNO PAGE 3

tion, the National Center for Public Policy Research. In 2000, Abramoff was a board member of the group. In a telephone interview yesterday, Hirschmann said the contacts between DeLay’s office and per- sons at Preston Gates occurred because Abramoff “was a board member of the sponsoring orga- nization.” Hirschmann added: “We were assured that the BY THOMAS BUTLER — THE HILL National Center paid for the DeLay’s flights for a trip to Britain were charged to a credit card in the name trip.” of lobbyist Jack Abramoff, who also went on the trip. House rules do not exempt such nonprofit organization board mem- reimbursement, and that numerous court bers from the prohibition on lobbyist pay- decisions recognize that different rules ments for travel. They also state that this may be applicable to the same person act- prohibition “applies even where the lob- ing in different capacities. byist . . . will later be reimbursed for those Andrew Blum, a publicist for expenses by a non-lobbyist client.” Abramoff’s lawyer and spokesman for Burchfield did not dispute that Abramoff, did not respond to questions Abramoff used his credit card to pay for relating to the use of Abramoff’s credit DeLay’s plane fare, but said in a state- card for DeLay’s plane fare. But he said ment that “the majority leader has always in a statement yesterday that it was the believed and continues to believe that all National Center that “sponsored” the trip, appropriate expenses for the U.K. trip were “not Jack Abramoff.” paid by the National Center for Public Pol- Blum said that DeLay was “one of the icy Research.” He said that “to the extent center’s honored guests on this trip” and that Mr. Abramoff put the charges on his that Abramoff “is being singled out for personal credit card, Mr. DeLay has no doing what is commonly done by lobby- knowledge of this. But that would be con- ists — taking trips with members of Con- sistent with Mr. Abramoff obtaining full gress and their staff so that they can learn reimbursement from the National Center.” about issues that impact the Congress and He said further that, in his view, government policy.” The center’s ability Abramoff’s participation on this trip as a to sponsor “this type of educational trip, board member meant he was permitted using contributor funds, is both legal and to pay for some of the expenses, subject to proper,” Blum said. SUNDAY, APRIL 24, 2005 KLMNO PAGE 4

DeLay was admonished three times May 25 with a flight to London from Dulles last year by the House ethics committee airport and ended on June 3 with a return for infringing rules governing lawmakers’ trip from Europe via Newark and ending in activities and their contacts with regis- Houston. In between, his itinerary called tered lobbyists. House ethics rules bar the for stops in Edinburgh, Glasgow, and St. payment by lobbyists for any lawmaker’s Andrews, in Scotland. DeLay said the travel-connected entertainment and rec- purpose of the trip was to hold meetings reational activities costing more than $50; with “Conservative leaders” in Britain and they also require that lawmakers accu- Scotland, including Margaret Thatcher. rately report the sponsor of their trips and The former prime minister’s office has con- the full cost. firmed that such a meeting occurred. In an article last month about the DeLay’s two aides, Tony Rudy and same trip by DeLay, The Post reported that Susan Hirschmann, had an overlapping an Indian tribe and a gambling services itinerary; Rudy participated from May 29 company made donations to the National to June 3, and Hirschmann participated Center for Public Policy Research that cov- from May 22 to June 2. The spouses of ered most of the expenses declared by par- Rudy and Buckham also were present. ticipants at that time. The article also said The travel receipts do not make clear these payments were made two months how the expenses for the entire trip — before DeLay voted against legislation which involved at least 10 people and opposed by the tribe and the company. which two sources said exceeded $120,000 DeLay has said the vote was unrelated to — were paid. One source familiar with the the payments. billings said yesterday that the National The article also reported that Center reimbursed Abramoff for the Abramoff submitted an expense voucher charges incurred by DeLay and his staff to Preston Gates seeking a reimbursement that were billed to Abramoff’s credit card; of $12,789.73 to cover expenses for meals, but the receipts themselves do not indicate hotels and transportation during the Lon- whether some of the charges incurred by don and Scotland trip incurred by DeLay; Abramoff were ultimately reimbursed and, his wife, Christine; and his two aides. if so, by whom. The new receipts add more detail The receipts make clear that flights about these expenses, make clear that the for DeLay and his wife were initially billed total expenses for all of the participants to Abramoff. The plane ticket for the hus- were at least $50,000 more than was pre- band of one of DeLay’s aides — David viously known, and connect Abramoff Hirschmann — was billed to the same directly to the payment of some charges. American Express card used for the DeLay For DeLay, the 10-day trip began on tickets, according to a copy of the invoice. SUNDAY, APRIL 24, 2005 KLMNO PAGE 5

Although Amy Ridenour, director rounds of golf he played were included in of the National Center for Public Policy his hotel package” and reimbursed by the Research, has said she organized the trip, National Center. two other sources said that DeLay’s round- A copy of the $184 bill for the DeLays’ trip business-class tickets on Continental expenses during the trip at a separate hotel Airlines and British Airways were booked in St. Andrews — the Old Course Hotel Golf by Preston Gates employees. Resort & Spa — states that those charges The itinerary and invoice for DeLay’s were paid by the same American Express trip, prepared by a travel service in Seattle, credit card used on the trip by Buckham, was sent by the service to Preston Gates on the lobbyist, to pay for his own hotel room May 23, 2000, according to a copy of the at the Glasgow Hilton. Buckham could not invoice. That was two days before DeLay’s be reached by phone at home or his office departure. The invoice states that DeLay’s and did not respond to an e-mailed request business-class tickets on Continental Air- for comment. Burchfield said he cannot lines and British Airways cost $6,938.70. explain how this happened and did not The records also indicate that the know who owned this credit card; he also expenses associated with DeLay exceeded said DeLay was unaware of this fact. those that he declared in a signed state- Buckham, a former chief of staff to ment to the House clerk on June 30, 2000. DeLay, was at the time a registered lob- That form listed the purpose of the trip as byist for AT&T, Enron Corp., and the “educational” and gave a tally of $28,106 Nuclear Energy Institute. DeLay’s wife was in expenses for DeLay and his wife, or an employed, at the time of the trip, by Buck- average of $2,800 a day; it stated that all ham’s lobbying firm, the Alexander Strat- of these charges were paid by the National egy Group, and was receiving a salary from Center for Public Policy Research, which it, according to DeLay’s personal financial provided the data to DeLay. disclosure statement for that year, on file Receipts from the golfing portion of with the House clerk. the trip show that DeLay accumulated Abramoff, at the time of the trip, rep- additional charges, which, according to resented eLottery Inc. , a gambling services fees set by the tour arranger, amounted to company that opposed the Internet gam- nearly $5,000 for each golfer and totaled bling bill pending before the House. Pres- in the tens of thousands of dollars for the ton Gates registered as a lobbyist for eLot- entire group. Fees associated with playing tery on June 2, 2000, one day before the golf are not listed on DeLay’s travel disclo- trip ended; later in the year, Abramoff reg- sure form. Burchfield, DeLay’s lawyer, said istered as a lobbyist for other clients who DeLay “personally paid for two rounds of opposed the bill, including several Indian golf and understands that the other two tribes. The federal probe is looking into his SUNDAY, APRIL 24, 2005 KLMNO PAGE 6

handling of his tribal clients and the large for room service, $13 for a valet pressing fees he was paid. and $302 for a private car from Heathrow Hirschmann and her husband ulti- airport, the bill states. Their room bill also mately accumulated charges of 2,073 Brit- lists a charge of $434 for six theater tick- ish pounds, or about $3,109 at the prevail- ets, but Burchfield said the DeLays do not ing exchange rate for four nights in their recall attending any plays in London. He “superior” room at the London Four Sea- said if the hotel charges were being “picked sons Hotel. Those charges included $129 up” by a representative of the National at the hotel lounge, $75 from the room bar, Center, “they would not necessarily have $34 from the gift shop, and $422 for chauf- seen the hotel bill.” feured cars, according to a copy of their DeLay, Burchfield said, “does not hotel bill. Hirschmann said one car was know how the logistics . . . [of the bill pay- used to reach the meeting with Thatcher. ments for the trip] were being effectuated.” At least one of the Hirschmanns House ethics rules contain detailed also played golf at St. Andrews. Susan provisions barring the acceptance of any Hirschmann is now a lobbyist at the Wash- travel funds from private sources if doing ington firm of Williams & Jensen; the so would “create the appearance of using firm’s Web site contains a published claim public office for private gain.” They also that DeLay and other House Republican obligate lawmakers to “make inquiry on the leaders are in frequent contact with her. source of the funds that will be used to pay” As a staff member at the time of the trip, for any travel ostensibly financed by a non- she would have been covered by the same profit organization — to rule out the accep- ethics rules that apply to DeLay and other tance of reimbursements that come from House members. Rudy, her staff colleague one organization when a trip is “in fact at the time, now works for Buckham’s lob- organized and conducted by someone else.” bying firm. Trips outside the United States are DeLay and his wife, for their part, also not supposed to exceed a week in stayed for four nights in a “conserva- length out of concern, the rules state, for tory” room at the same hotel in London “the public perception that such trips often as Hirschmann, accumulating charges may amount to paid vacations for the of roughly $790 a night for rooms that Member and his family at the expense of included a glass-enclosed porch overlook- special interest groups.” ing London’s Park Lane, according to a copy of the bill for their stay and the Web Research editor Lucy Shackelford and researchers Alice Crites and Madonna Lebling site of the hotel. contributed to this report. They also ran up hotel charges of $145 DAILY 04-24-05 MD M2 A1 CMYK

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DeLay Airfare Was Charged DeLay’s Itinerary Insurgent Travelers for whom Law firm that employed lobbyist Jack To Lobbyist’s Credit Card schedule was prepared. Abramoff made trip arrangements. Violence By R. Jeffrey Smith House ethics rules bar lawmakers from accept- Washington Post Staff Writer ing travel and related expenses from registered lob- byists. DeLay, who is now House majority leader, The airfare to London and Scotland in 2000 for has said that his expenses on this trip were paid by Escalates then-House Majority Whip Tom DeLay (R-Tex.) a nonprofit organization and that the financial ar- was charged to an American Express card issued to rangements for it were proper. He has also said he Jack Abramoff, a Washington lobbyist at the center had no way of knowing that any lobbyist might of a federal criminal and tax probe, according to have financially supported the trip, either directly two sources who know Abramoff’s credit card ac- or through reimbursements to the nonprofit orga- In Iraq count number and to a copy of a travel invoice dis- nization. THE WASHINGTON POST playing that number. The documents obtained by The Washington DeLay’s expenses during the same trip for food, Post, including receipts for his hotel stays in Scot- Over 100 Killed phone calls and other items at a golf course hotel in land and London and billings for his golfing during Flight for first leg of Rep. Credit card number (redacted by The Scotland were billed to a different credit card also the trip at the famed St. Andrews course in Scot- Tom DeLay’s trip to London Washington Post) that paid for DeLay’s plane As Post-Election used on the trip by a second registered Washington land, substantiate for the first time that some of De- and Scotland. ticket. Sources say card belonged to Abramoff. lobbyist, Edwin A. Buckham, according to receipts Calm Dissipates documenting that portion of the trip. See DELAY, A8, Col. 1 THE WASHINGTON POST By Ellen Knickmeyer Washington Post Foreign Service

BAGHDAD, April 23 — Violence is es- calating sharply in Iraq after a period of rel- Hospital ative calm that followed the January elec- tions. Bombings, ambushes and kidnappings targeting Iraqis and foreign- ers, both troops and civilians, have surged Services this month while the new Iraqi govern- ment is caught up in power struggles over cabinet positions. Performed Many attacks have gone unchallenged by Iraqi forces in large areas of the country dominated by insurgents, according to the Overseas U.S. military, Iraqi officials and civilians and visits by Washington Post correspon- dents. Hundreds of Iraqis and foreigners Training, Licensing have either been killed or wounded in the last week. Questions Raised “Definitely, violence is getting worse,” said a U.S. official in Baghdad, who spoke By Rob Stein on condition of anonymity. “My strong Washington Post Staff Writer sense is that a lot of the political mo- mentum that was generated out of the suc- When patients needed urgent CT cessful election, which was sort of like a scans, MRIs and ultrasounds late at punch in the gut to the insurgents, has night at St. Mary’s Hospital in Wa- worn off.” The political stalemate “has giv- terbury, Conn., emergency room en the insurgents new hope,” the official workers used to rouse a bleary-eyed added, repeating a message Americans say staff radiologist from his bed to read they are increasingly giving Iraqi leaders. the images. Not anymore. This week, at a checkpoint bunker in The work now goes to Arjun Ka- Tarmiya where insurgents downed a heli- lyanpur — 8,000 miles away in Ban- copter, a teenager in sunglasses clutching galore, India. When it is the middle an AK-47 marked the limits of the Iraqi ar- of the night in Connecticut, Kalyan- my’s authority. “I wouldn’t advise going pur is in the middle of his day, han- BY NIKKI KAHN — THE WASHINGTON POST there,” the young Shiite Muslim recruit dling calls from St. Mary’s and doz- Sandy Hoa Dang, second from left, cheers during her Asian American community group’s said, referring to Tarmiya, a Tigris River ens of other American hospitals that spring celebration. From left, Jessica Valencia, Debbie Huynh and Miriam Cabieses look on. transmit pictures to him electron- See IRAQ, A21, Col. 1 ically so he can quickly assess them and advise their doctors. K Islamic activists sweep Saudi DAILY 04-24-05 MD M1 A8 CMYK Kalyanpur runs one of an in- 30 Years Later, Immigrants municipal elections. | World, A17 creasing number of “nighthawk” companies operating in the United States and overseas to take advan- Shed Vietnam War’s Burdens tage of time-zone differences and the latest technology by having radiolo- By Phuong Ly orphans to the United States. Her new par- A8 Sunday, April 24, 2005 M1 NATIONAL NEWS The Washington Post gists read images from such far- Washington Post Staff Writer ents discovered that their child reacted flung places as Hawaii, India, Aus- strangely in their arms. She stiffened. She Hu Tightens tralia, Switzerland, Israel and Brazil. On humid Washington days, after thunder- was not used to being held. The companies, and the doctors storms churn up the smell of fresh earth, Thirty years have passed since Saigon fell and hospitals using them, say the Sandy Hoa Dang remembers the war. When April 30, 1975, time enough for these three Party’s Grip DeLay Airfare Was Charged to Lobbyist’s Credit Card trend is improving care by guaran- the bombs fell on Hanoi, she was a little girl, women and a generation of Vietnamese teeing that well-rested radiologists cowering with her family in a hole in the Americans to come of age. Thirty is now the DELAY, From A1 was used to reach the meeting with are always available, even in the mid- ground. median age of the 1.2 million people of Viet- On Power Thatcher. dle of the night, even for the smallest Hundreds of miles away, as victorious namese heritage living in the United States. Lay’s expenses on the trip were At least one of the Hirschmanns hospitals and in the most rural areas. North Vietnamese soldiers stormed a beach Thirty is young enough to be haunted by billed to charge cards used by the also played golf at St. Andrews. Su- Skeptics, however, say the prac- town near Saigon, 5-year-old Phuong Vietnam, old enough to have created new Chinese Leader Seen two lobbyists. The invoice for De- san Hirschmann is now a lobbyist tice raises a host of concerns. Are Nguyen’s mother stashed her in a concrete lives. Lay’s plane fare lists the name of at the Washington firm of Williams the radiologists qualified? Is commu- cistern. Her fair, freckled face and uplifted The war brought the three women to the what was then Abramoff’s lobbying & Jensen; the firm’s Web site con- nication as good when the radiolo- nose were evidence: Her father was an Amer- United States under starkly different circum- As Limiting Freedoms FAMILY PHOTO firm, Preston Gates & Ellis. tains a published claim that DeLay gists are so far away? Can an over- ican. stances: one as a baby adopted into a Mas- Multiple sources, including De- and other House Republican lead- seas doctor be held accountable Kara Mai Delahunt, an infant then, was sachusetts home; another as a teenager es- Dang, in pigtails, and her family in the By Philip P. Pan Lay’s then-chief of staff Susan ers are in frequent contact with her. buckled into a seat of a 747 on one of the 1970s in front of their home in Hanoi. Washington Post Foreign Service Hirschmann, have confirmed that As a staff member at the time of the See NIGHTHAWKS, A9, Col. 1 rushed flights that brought more than 2,000 See VIETNAM, A12, Col.1 DeLay’s congressional office was in trip, she would have been covered BEIJING — More than two years after direct contact with Preston Gates by the same ethics rules that apply taking office amid uncertainty about his po- about the trip itinerary before De- to DeLay and other House mem- litical views, Chinese President Hu Jintao Lay’s departure, to work out details bers. Rudy, her staff colleague at is emerging as an unyielding leader deter- of his travel. These contacts raise the time, now works for Buckham’s mined to preserve the Communist Party’s questions about DeLay’s statement lobbying firm. Wizards Learn to Love ‘Gilbertology’ monopoly on power and willing to impose that he had no way of knowing DeLay and his wife, for their new limits on speech and other civil liber- about the financial and logistical part, stayed for four nights in a ties to do it, according to party officials, support provided by Abramoff and “conservatory” room at the same Guard’s Offbeat Ways Have Led Washington Into the NBA Playoffs journalists and analysts. his firm. hotel in London as Hirschmann, ac- Some say Hu has cast himself as a hard- Yesterday, DeLay’s lawyer, Bob- cumulating charges of roughly By Michael Lee No. 0 jersey into the stands. He gazed up- National Basketball Association career — a liner to consolidate his position after a deli- by R. Burchfield, said that DeLay’s $790 a night for rooms that in- Washington Post Staff Writer ward, a huge smile on his face. natural talent too immature, too erratic and cate leadership transition and could still staff was aware that Preston Gates cluded a glass-enclosed porch over- The fiercely competitive and often come- too selfish to lead a team anywhere. lead the party in a more open direction. was trying to arrange meetings and looking London’s Park Lane, ac- s confetti rained down from the dic Arenas had done what most thought “You can just see how much he’s ma- There is a growing consensus inside and hotels for the trip but that DeLay cording to a copy of the bill for their rafters at MCI Center 11 days ago, was impossible: Through his leadership tured,” said forward Antawn Jamison, who outside the government, however, that the was unaware of the “logistics” of stay and the Web site of the hotel. when the Washington Wizards and work ethic, he helped bring the post- along with Arenas and Larry Hughes has 62-year-old former engineer believes the bill payments, and that DeLay “con- They also ran up hotel charges of clinched the franchise’s first play- season to a moribund organization that given the Wizards the highest-scoring party should strengthen its rule by improv- tinues to understand his expenses” $145 for room service, $13 for a va- offA berth in eight years, Gilbert Arenas even Michael Jordan — considered by threesome in the NBA, averaging 67.1 ing its traditional mechanisms of gover- were properly paid by the nonprofit let pressing and $302 for a private stood shirtless near center court after per- many to be the greatest to play the game of points per game. “He’s really amazed me.” nance, not by introducing democratic re- organization, the National Center car from Heathrow airport, the bill BY JONATHAN NEWTON — THE WASHINGTON POST forming his postgame ritual of tossing his basketball — couldn’t rescue. And, at the Arenas seemed an unlikely candidate to forms. for Public Policy Research. states. Their room bill also lists a After every game, Gilbert Arenas takes off ripe old age of 23, Arenas also shed the la- Hu has placed particular emphasis on In 2000, Abramoff was a board charge of $434 for six theater tick- his Wizards jersey to throw to the crowd. K Pistons win opener | Sports, E15 bels that have followed him throughout his See ARENAS, A6, Col. 1 tightening the party’s control over public member of the group. In a tele- ets, but Burchfield said the DeLays opinion, presiding over a crackdown to re- phone interview yesterday, Hirsch- do not recall attending any plays in store discipline to state media and intimi- mann said the contacts between London. He said if the hotel charg- date dissident intellectuals. He has also DeLay’s office and persons at Pres- es were being “picked up” by a rep- gone further than his predecessor, Jiang ton Gates occurred because Abra- resentative of the National Center, INSIDE Zemin, by adopting new measures to reg- moff “was a board member of the “they would not necessarily have ulate discussions on university Internet sponsoring organization.” Hirsch- BY CARLOS JAVIER SANCHEZ — HOUSTON CHRONICLE VIA ASSOCIATED PRESS seen the hotel bill.” sites and the activities of nongovernmental mann added: “We were assured Protesters greet House Majority Leader Tom DeLay (R-Tex.) on his arrival in Houston yesterday for the dedication of the International Space Station Monument. DeLay, Burchfield said, “does MCI Embraces Big Plans, Annan Under Fire Comedy’s that the National Center paid for not know how the logistics . . . [of See CHINA, A18, Col. 4 New Qwest Bid Small Space Scandals raise questions Changing Face the trip.” June 3 with a return trip from Eu- receiving a salary from it, accord- the bill payments for the trip] were about the U.N. secretary House rules do not exempt such rope via Newark and ending in ing to DeLay’s personal financial being effectuated.” In the Spring Home K Chinese and Japanese leaders A $9.74 billion deal, general’s leadership. As movies, plays and nonprofit organization board mem- Houston. In between, his itinerary disclosure statement for that year, House ethics rules contain de- if finalized, could & Design Issue, even the Internet discuss tensions. | World, A14 bers from the prohibition on lobby- called for stops in Edinburgh, Glas- on file with the House clerk. tailed provisions barring the accep- result in as many as gardening tips from WORLD, A14 redefine what’s so ist payments for travel. They also gow, and St. Andrews, in Scotland. Abramoff, at the time of the trip, tance of any travel funds from pri- 15,000 lost jobs. expert Adrian funny, The Post’s state that this prohibition “applies DeLay said the purpose of the trip represented eLottery Inc. , a gam- vate sources if doing so would Verizon has until Higgins and K A premium price critics and writers even where the lobbyist . . . will lat- was to hold meetings with “Conser- bling services company that op- “create the appearance of using Friday to respond to cartoonist Tom examine the changes er be reimbursed for those expens- vative leaders” in Britain and Scot- posed the Internet gambling bill public office for private gain.” They for SUV comforts. | Contents the offer. Toles. in how people get us to  2005 es by a non-lobbyist client.” land, including Margaret Thatcher. pending before the House. Preston also obligate lawmakers to “make METRO, C1 laugh. ARTS, N1 The BUSINESS, A10 THE MAGAZINE Washington Burchfield did not dispute that The former prime minister’s office Gates registered as a lobbyist for inquiry on the source of the funds Post Abramoff used his credit card to has confirmed that such a meeting eLottery on June 2, 2000, one day that will be used to pay” for any Company 7 pay for DeLay’s plane fare, but said occurred. before the trip ended; later in the travel ostensibly financed by a non- in a statement that “the majority DeLay’s two aides, Tony Rudy year, Abramoff registered as a lob- profit organization — to rule out leader has always believed and con- and Susan Hirschmann, had an byist for other clients who opposed the acceptance of reimbursements tinues to believe that all appropri- overlapping itinerary; Rudy partici- the bill, including several Indian that come from one organization ate expenses for the U.K. trip were pated from May 29 to June 3, and tribes. The federal probe is looking when a trip is “in fact organized paid by the National Center for Hirschmann participated from May into his handling of his tribal cli- and conducted by someone else.” Public Policy Research.” He said 22 to June 2. The spouses of Rudy ents and the large fees he was paid. Trips outside the United States that “to the extent that Mr. Abra- and Buckham also were present. Hirschmann and her husband ul- are also not supposed to exceed a moff put the charges on his person- The travel receipts do not make BY THOMAS BUTLER — THE HILL timately accumulated charges of week in length out of concern, the al credit card, Mr. DeLay has no clear how the expenses for the en- DeLay’s flights for a trip to Britain were charged to a credit card in the name 2,073 British pounds, or about rules state, for “the public percep- knowledge of this. But that would tire trip — which involved at least of lobbyist Jack Abramoff, who also went on the trip. $3,109 at the prevailing exchange tion that such trips often may be consistent with Mr. Abramoff 10 people and which two sources rate for four nights in their “superi- amount to paid vacations for the obtaining full reimbursement from said exceeded $120,000 — were form listed the purpose of the trip to DeLay, was at the time a regis- or” room at the London Four Sea- Member and his family at the ex- the National Center.” paid. One source familiar with the as “educational” and gave a tally of tered lobbyist for AT&T, Enron sons Hotel. Those charges included pense of special interest groups.” He said further that, in his view, billings said yesterday that the Na- $28,106 in expenses for DeLay and Corp., and the Nuclear Energy In- $129 at the hotel lounge, $75 from Abramoff’s participation on this tional Center reimbursed Abramoff his wife, or an average of $2,800 a stitute. DeLay’s wife was em- the room bar, $34 from the gift Research editor Lucy Shackelford trip as a board member meant he for the charges incurred by DeLay day; it stated that all of these charg- ployed, at the time of the trip, by shop, and $422 for chauffeured and researchers Alice Crites and was permitted to pay for some of and his staff that were billed to es were paid by the National Center Buckham’s lobbying firm, the Al- cars, according to a copy of their Madonna Lebling contributed to the expenses, subject to reimburse- Abramoff’s credit card; but the re- for Public Policy Research, which exander Strategy Group, and was hotel bill. Hirschmann said one car this report. ment, and that numerous court de- ceipts themselves do not indicate provided the data to DeLay. cisions recognize that different whether some of the charges in- Receipts from the golfing por- rules may be applicable to the same curred by Abramoff were ultimate- tion of the trip show that DeLay ac- person acting in different capac- ly reimbursed and, if so, by whom. cumulated additional charges, ities. The receipts make clear that which, according to fees set by the SUBARU LEGACY Andrew Blum, a publicist for flights for DeLay and his wife were tour arranger, amounted to nearly A PREMIUM BLEND OF ALL-WHEEL DRIVE PERFORMANCE & LUXURY! Abramoff’s lawyer and spokesman initially billed to Abramoff. The $5,000 for each golfer and totaled for Abramoff, did not respond to plane ticket for the husband of one in the tens of thousands of dollars questions relating to the use of of DeLay’s aides — David Hirsch- for the entire group. Fees associat- Abramoff’s credit card for DeLay’s mann — was billed to the same ed with playing golf are not listed plane fare. But he said in a state- American Express card used for the on DeLay’s travel disclosure form. ment yesterday that it was the Na- DeLay tickets, according to a copy Burchfield, DeLay’s lawyer, said tional Center that “sponsored” the of the invoice. DeLay “personally paid for two trip, “not Jack Abramoff.” Although Amy Ridenour, direc- rounds of golf and understands that Blum said that DeLay was “one tor of the National Center for Pub- the other two rounds of golf he of the center’s honored guests on lic Policy Research, has said she or- played were included in his hotel this trip” and that Abramoff “is be- ganized the trip, two other sources package” and reimbursed by the ing singled out for doing what is said that DeLay’s round-trip busi- National Center. commonly done by lobbyists — ness-class tickets on Continental A copy of the $184 bill for the De- taking trips with members of Con- Airlines and British Airways were Lays’ expenses during the trip at a gress and their staff so that they booked by Preston Gates employ- separate hotel in St. Andrews — can learn about issues that impact ees. the Old Course Hotel Golf Resort Lease a 2.5i the Congress and government pol- The itinerary and invoice for De- & Spa — states that those charges icy.” The center’s ability to sponsor Lay’s trip, prepared by a travel ser- were paid by the same American Sedan starting “this type of educational trip, using vice in Seattle, was sent by the ser- Express credit card used on the trip at $239 per mo.* contributor funds, is both legal and vice to Preston Gates on May 23, by Buckham, the lobbyist, to pay or Buy with proper,” Blum said. 2000, according to a copy of the in- for his own hotel room at the Glas- 1.90 APR % DeLay was admonished three voice. That was two days before gow Hilton. Buckham could not be times last year by the House ethics DeLay’s departure. The invoice reached by phone at home or his of- financing** committee for infringing rules gov- states that DeLay’s business-class fice and did not respond to an e- erning lawmakers’ activities and tickets on Continental Airlines and mailed request for comment. their contacts with registered lob- British Airways cost $6,938.70. Burchfield said he cannot explain byists. House ethics rules bar the The records also indicate that how this happened and did not payment by lobbyists for any law- the expenses associated with De- know who owned this credit card; maker’s travel-connected entertain- Lay exceeded those that he de- he also said DeLay was unaware of ment and recreational activities clared in a signed statement to the this fact. costing more than $50; they also re- House clerk on June 30, 2000. That Buckham, a former chief of staff quire that lawmakers accurately re- port the sponsor of their trips and the full cost. In an article last month about the same trip by DeLay, The Post re- PIANO PLACE ported that an Indian tribe and a gambling services company made Grands • Verticals • Digitals • Used donations to the National Center for Public Policy Research that cov- Spring Clearance ered most of the expenses declared nd st by participants at that time. The ar- April 22 - May 1 ticle also said these payments were All pianos are on sale for this event with made two months before DeLay additional savings on floor models voted against legislation opposed by the tribe and the company. De- Lay has said the vote was unrelated to the payments. The article also reported that Digitals from Verticals from Abramoff submitted an expense $999 $3088 Best Pick in IIHS Crash Test. voucher to Preston Gates seeking a Crash test conducted by Insurance Institute for Highway Safety. reimbursement of $12,789.73 to Used Consoles Used Grands cover expenses for meals, hotels * To qualified buyers through 5.2.05. $239 first payment, and transportation during the Lon- from $795 from $1495 $2,739 due at signing. Tax, title & license extra. 48 month don and Scotland trip incurred by lease. MSRP $22,070. Net Cap Cost $18,880 includes acq. fee. Mileage is 12,000 per year. DeLay; his wife, Christine; and his ** 1.90 APR financing for up to 24 mos. to qualified buyers two aides. Huge Selection of Pre-Owned Pianos through 5.2.05. Ask salesperson for complete details. The new receipts add more de- www.pianoplaceinc.com tail about these expenses, make Home of the Beyer Best Price, clear that the total expenses for all NO HASSLE, NO HAGGLE, EVER! of the participants were at least $50,000 more than was previously PIANO PLACE 703.768.5800 known, and connect Abramoff di- 10927 Main St. 11132-A Rockville Pike 7416 Richmond Highway (Rt. 1) rectly to the payment of some Fairfax, VA Rockville, MD 3 miles south of Old Town charges. Alexandria For DeLay, the 10-day trip began 703-218-1072 301-816-9555 on May 25 with a flight to London 1 Block East of Rte. 50 Across from White Flint Mall A member of the Beyer Automotive Group www.beyersubaru.com from Dulles airport and ended on ABCDE

Democracy Dies in Darkness SUNDAY, MAY 1, 2005 Untangling a Lobbyist’s Stake in a Casino Fleet

With Millions of Dollars Unaccounted for, Another Federal Investigation Targets Abramoff

By Susan Schmidt and James V. Grimaldi Washington Post Staff Writers

It was a gangland-style hit straight out of “Goodfellas.” A man in a BMW was driving down a quiet side street after an evening meet- ing at his Fort Lauderdale office when a car BY URSULA E. SEEMANN — SOUTH FLORIDA SUN-SENTINEL Jack Abramoff once owned 40 percent of SunCruz Casinos. slowed to a stop in front of him. A second The founding partner was slain in Fort Lauderdale. car boxed the BMW in from behind, then a dark Mustang appeared from the oppo- site direction. The Mustang’s driver pulled casino ships to a partnership that included alongside and pumped three hollow-point Republican superlobbyist Jack Abramoff. bullets into the BMW driver’s chest. Abramoff is best known as a target of The dead man was Konstantinos a federal investigation in Washington into “Gus” Boulis, a volatile 51-year-old self- the tens of millions in fees he and a part- made millionaire, a Greek immigrant who ner collected from casino-owning Indian had started as a dishwasher in Canada and tribes. But the wreckage from his brief and ended up in Florida, where he built an tumultuous time as owner of the gambling empire of restaurants, hotels and cruise fleet threatens to overtake his Washington ships used for offshore casino gambling. legal troubles. Boulis’s slaying, still unsolved four years Not long after Abramoff and his part- later, reverberated all the way to Washing- ners bought SunCruz Casinos in Septem- ton. Months earlier he had sold his fleet of ber 2000, the venture ran aground after a SUNDAY, MAY 1, 2005 KLMNO PAGE 2

Deal Was Based on Fraudulent Money Transfer fistfight between two of the owners, alle- SunCruz. He bought his first cruise boat gations of mob influence, dueling law- in 1994 and swiftly added 10 more, build- suits and, finally, Boulis’s death on Feb. 6, ing an enormously profitable business that 2001. Now, Abramoff is the target of a fed- took in as much as $30 million in yearly eral investigation into whether the casino profits. ship deal involved bank fraud. According Boulis, a larger-than-life character, to court records, the SunCruz purchase had always been a scrapper and some- hinged on a fake wire transfer for $23 mil- thing of a business genius. As a teenager, lion intended to persuade lenders to pro- he jumped ship from a Greek freighter in vide financing to Abramoff’s group. Canada, where he made his first fortune Although the outlines of the tale have with Mr. Submarine sandwich shops. After become part of South Florida lore, what retiring to the Florida Keys, at the age of has not been disclosed are the full details of 30, he built another fortune with the pop- the alleged fraud at the heart of the trans- ular Miami Subs chain. Then he launched action and the extent of Abramoff’s role — SunCruz, known as a “cruise to nowhere” including his use of contacts with Republi- casino business. His midsize cruise ships can Reps. Tom DeLay (Tex.) and Robert W. left on day trips from nine ports around Ney (Ohio) and members of their staffs as Florida, taking tourists, high-rollers and he worked to land the deal. elderly players into international waters, The SunCruz story combines the beyond the reach of the state’s anti-gam- South Florida of novelist Carl Hiaasen with bling laws. the Washington of influence-peddling K Based outside Fort Lauderdale, the Street: Thousands of pages of bankruptcy business was the bane of Florida officials, and other court records, along with dozens who thought Boulis flouted the law, and of interviews in Florida and Washington, SunCruz’s port city neighbors, who com- reveal secret deals; a forged document; plained that drunken gamblers were uri- double-crossing partners; and socializing nating on their lawns. For years, Boulis with government officials on a private jet, beat back efforts by federal and state law- at the U.S. Open golf tournament at Pebble yers determined to shut him down. Beach, at a Monday night football game In 1999, federal prosecutors charged in a private box at FedEx Field, and at an Boulis with violating the Shipping Act by exclusive party on Inauguration Day in purchasing his vessels without being a U.S. Washington. citizen. Boulis agreed to pay a $1 million Gus Boulis never really wanted to sell fine and sell his cruise line. The government SUNDAY, MAY 1, 2005 KLMNO PAGE 3

The Missing $23 Million To qualify for a $60 million loan to buy SunCruz Casinos, lobbyist Jack Abramoff signed a document (1) certifying that he and his partner, Adam Kidan, put $23 million in cash into the deal. Asked to prove the money was deposited, Kidan and another partner, Ben Waldman, faxed the lender, Foothill Capital, what appeared to be a confirmation (2) of a wire transfer of the money from Kidan’s account at Chevy Chase Bank to the seller’s bank. But Chevy Chase later said (3) in answer to a subpoena that Kidan’s account had already been closed at the time of the purported wire transfer. Foothill now contends that the faxed document was a forgery. 1

Chevy Chase Savings Bank Funds transfer notification 09-22-2000 2

$23,000,000

3

SOURCE: Court documents THE WASHINGTON POST The Missing $23 Million To qualify for a $60 million loan to buy SunCruz Casinos, lobbyist Jack Abramoff signed a document (1) certifying that he and his partner, Adam Kidan, put $23 million in cash into the deal. Asked to prove the money was deposited, Kidan and another partner, Ben Waldman, faxed the lender, Foothill Capital, what appeared to be a confirmation (2) of a wire transfer of the money from Kidan’s account at Chevy Chase Bank to the seller’s bank. But Chevy Chase later said (3) in answer to a subpoena that Kidan’s account had already been closed at the time of the purported wire transfer. Foothill now contends that the faxed document was a forgery. 1

Chevy Chase Savings Bank Funds transfer notification 09-22-2000 2

SUNDAY, MAY 1, 2005 KLMNO PAGE 4 $23,000,000

3

SOURCE: Court documents THE WASHINGTON POST gave him 36 months to do it and agreed to friends in the new Republican Congress. keep the settlement secret so Boulis would He was especially close to Tom DeLay, then not lose money in a fire sale. House majority whip. Abramoff had also To sell his business, Boulis turned to convinced casino-rich Indian tribes that his lawyers in the D.C. office of Preston they should begin switching their copious Gates Ellis & Rouvelas Meeds LLP. Art campaign contributions to the GOP. Dimopoulos, a maritime lawyer, looked The buyer Abramoff found for Bou- for buyers. Jack Abramoff, one of Dimo- lis was Adam Kidan, a 36-year-old New poulos’s partners at Preston Gates, said he York City businessman who had owned could find one. the Dial-a-Mattress franchise in Washing- Abramoff, 40, was a study in contra- ton. Abramoff had known Kidan since the dictions. A smooth-talking political power 1980s when Abramoff was at Georgetown player who was an Orthodox Jew, the for- Law Center and Kidan was an undergradu- mer high school weightlifter produced ate at George Washington University. Both movies in Hollywood before becoming one were active in the national office of the Col- of the top lobbyists in town. lege Republicans. He had built a lucrative practice by Abramoff and Kidan were already in showing then-Democrat-dominated K business with a third partner, former Rea- Street and its corporate clients how to make gan White House aide Ben Waldman, who SUNDAY, MAY 1, 2005 KLMNO PAGE 5

also had been a College Republican. The Boulis demanded a host of unwelcome three men had gotten together in a fledg- additional terms, including a consulting ling venture that sought to sell advertis- deal. ing on water taxis that would travel the Suddenly, Boulis was being denounced Potomac River. in Congress. Dimopoulos took Kidan to Florida to Michael Scanlon, a former DeLay meet Boulis. What was not disclosed to spokesman Abramoff had just hired at Preston Gates for at least eight months, Preston Gates, asked Ohio congressman according to a statement by the firm on Fri- Bob Ney to insert remarks into the Con- day, was that Abramoff then joined Kidan gressional Record that would put pressure in the SunCruz venture as a 50-50 partner. on Boulis. Such an arrangement would constitute a “Mr. Speaker, how SunCruz Casinos potential conflict of interest, because part- and Gus Boulis conduct themselves with ners in the Preston Gates firm would be on regard to Florida laws is very unnerving,” both sides of the deal. The Preston Gates Ney said in the March 30 Congressional statement said that when the firm learned Record. “I don’t want to see the actions of of the situation, it notified Boulis, who was one bad apple in Florida, or anywhere else . already aware of it and did not object. . . affect the business aspect of this industry Abramoff’s plan was to have Kidan put or hurt any innocent casino patron in our up most of the money and Abramoff “would country.” use his lobbying expertise and network to Ney said later he was “furious” at help expand the new company’s markets Scanlon for not fully informing him about both in the U.S. and abroad,” Abramoff’s SunCruz. Scanlon, for his part, said he had lawyers later asserted. Abramoff would say been given bad information about SunCruz later that Kidan told him he was looking to and regretted his request to Ney. invest an “eight-figure” payoff he had made As the SunCruz negotiations warmed from the sale of his Dial-a-Mattress fran- up again that spring, Boulis found out that chise. Abramoff and Kidan had another friend on But even a cursory background check Capitol Hill. would have raised serious questions about On June 9, DeLay’s office sent Boulis whether Kidan had that kind of money. a flag that had flown over the U.S. Capi- Kidan’s business was in bankruptcy pro- tol, according to records kept by the archi- ceedings, and Kidan had declared personal tect of the Capitol’s office. The gift from bankruptcy in 1996. DeLay’s office was issued six days after Nonetheless, in January 2000, Boulis DeLay and his deputy chief of staff, Tony agreed in a letter of intent to sell SunCruz Rudy, returned from a golf trip to Scotland for $145 million. A few weeks later, though, with Abramoff. SUNDAY, MAY 1, 2005 KLMNO PAGE 6

DeLay spokesman Dan Allen said the on SunCruz’s jet out to the U.S. Open in congressman did not remember Boulis. A Pebble Beach, Calif., along with Joan Wag- DeLay aide said the office handles many ner, Boulis’s chief financial officer, and her requests for flags. husband, said a former SunCruz insider who spoke on the condition of anonymity A Trip to Pebble Beach because of the ongoing investigation. Rudy, a George Mason Law School Rudy did not report the trip in his graduate who had spent five years on House travel records. When contacted DeLay’s staff in a variety of jobs, joined by The Washington Post recently, Rudy Abramoff and Kidan at another sumptuous declined to be interviewed for this article. sporting event on June 15. The three flew Wagner and her lawyers did not respond to

The SunCruz Players The Timeline Politicians Businessmen Consultant 2000 Rep. Tom DeLay (R-Tex., below) Rep. Robert W. Konstantinos Jack Abramoff February On the eve of the SunCruz sale, Ney (R-Ohio) “Gus” Boulis The contro- Boulis enters serious negotiations to sell lobbyist Jack Abramoff brought Twice in 2000, The millionaire Greek versial lobbyist’s SunCruz Casinos to Abramoff and Kidan. his partner and his lead banker to Ney entered immigrant built an lawyers say they SunCruz has 11 boats that run daily offshore a DeLay event at a Redskins game. comments 11-ship gambling have been told gambling cruises. DeLay’s office also arranged for a about SunCruz fleet and sold it under their client is a May U.S. flag that had flown over the into the duress to Abramoff target of the Capitol to be given to Gus Boulis, Congressional and his partners. He criminal bank Abramoff, DeLay and Rudy are among those seller of Florida casino ship Record, aiding died in a gangland- fraud investi- on 10-day trip to Britain and Scotland, which company SunCruz. Abramoff’s bid style slaying in 2001. gation into the includes golf at renowned St. Andrews course. to buy and WALTER MICHOT — MIAMI HERALD MELINA MARA — THE WASHINGTON POST Florida deal. KEN SAWCHUK — NEWSDAY June 9 Tony Rudy (not shown) operate the DeLay’s office gives a U.S. flag that has flown As deputy chief of staff for DeLay, business. Ben Waldman (not shown) Michael Scanlon Anthony Moscatiello Rudy took a ride on a SunCruz jet The third partner in the SunCruz deal was A former spokesman (above, in 1991) over the Capitol to Boulis. to the U.S. Open golf tournament. a onetime Reagan White House aide and for DeLay, he was Kidan arranged for June 15 Rudy was listed as a reference for West Virginia congressional candidate who hired by Abramoff Moscatiello — a long- SunCruz jet flies a group from D.C. to U.S. Abramoff in documents submitted had known Abramoff and Kidan since the and eventually began time acquaintance — Open at Pebble Beach in California. They to lenders financing the sale of 1980s. working on the and Moscatiello’s include Abramoff, Kidan, Rudy and SunCruz SunCruz. Later Rudy went to work Adam Kidan SunCruz matter. daughter to be paid DENNIS COOK — executive Joan Wagner and her husband. A for Abramoff. ASSOCIATED Abramoff’s partner He served as $145,000 for food PRESS week later, Boulis agrees to sell SunCruz to in the SunCruz middleman and beverage Abramoff and Kidan for $145 million. purchase had a between consulting. Kidan later Sept. 18 string of lawsuits, Abramoff said he did not know liens and judgments and Ney. Moscatiello had once SunCruz principals meet in New York to begin against him. His been indicted in New closing the deal. That same night, Kidan and GERALD HERBERT — Dial-a-Mattress ASSOCIATED PRESS York in a case his lead financier, Greg Walker of Foothill RAY LUSTIG — involving Capital Corp., travel to D.C. to join DeLay and THE WASHINGTON franchise in D.C. POST also was in members of Abramoff for a DeLay event in the lobbyist’s bankruptcy court at the Gambino box during a Redskins-Cowboys game. the time. crime family. TOM ALLEN — THE WASHINGTON POST SUNDAY, MAY 1, 2005 KLMNO PAGE 7

The SunCruz Players The Timeline Politicians Businessmen Consultant described2000 the millions he was bring- ing in to his lobbying firm. The article, Rep. Tom DeLay (R-Tex., below) Rep. Robert W. Konstantinos Jack Abramoff February On the eve of the SunCruz sale, Ney (R-Ohio) “Gus” Boulis The contro- Bouliswhich enters Kidan serious faxed negotiations to lenders, to sell called lobbyist Jack Abramoff brought Twice in 2000, The millionaire Greek versial lobbyist’s SunCruzAbramoff Casinos toWashington’s Abramoff and Kidan. “GOP stal- his partner and his lead banker to Ney entered immigrant built an lawyers say they SunCruz has 11 boats that run daily offshore a DeLay event at a Redskins game. comments 11-ship gambling have been told gamblingwart” because cruises. of his pull with Repub- DeLay’s office also arranged for a about SunCruz fleet and sold it under their client is a May U.S. flag that had flown over the into the duress to Abramoff target of the lican leaders such as DeLay, who Capitol to be given to Gus Boulis, Congressional and his partners. He criminal bank Abramoff,praised DeLay Abramoff and Rudy forare amonggetting those Indians seller of Florida casino ship Record, aiding died in a gangland- fraud investi- on 10-day trip to Britain and Scotland, which company SunCruz. Abramoff’s bid style slaying in 2001. gation into the includesto donate golf at to renowned Republicans. St. Andrews course. to buy and WALTER MICHOT — MIAMI HERALD MELINA MARA — THE WASHINGTON POST Florida deal. KEN SAWCHUK — NEWSDAY June 9 Tony Rudy (not shown) Abramoff provided Foothill Cap- operate the DeLay’s office gives a U.S. flag that has flown As deputy chief of staff for DeLay, business. Ben Waldman (not shown) Michael Scanlon Anthony Moscatiello Rudy took a ride on a SunCruz jet The third partner in the SunCruz deal was A former spokesman (above, in 1991) overital the a Capitolfinancial to Boulis. statement stating his to the U.S. Open golf tournament. a onetime Reagan White House aide and for DeLay, he was Kidan arranged for Junenet 15 worth as $13 million. He valued Rudy was listed as a reference for West Virginia congressional candidate who hired by Abramoff Moscatiello — a long- SunCruzhis lobbying jet flies a grouppractice from D.C.at $7.5to U.S. million Abramoff in documents submitted had known Abramoff and Kidan since the and eventually began time acquaintance — Open at Pebble Beach in California. They to lenders financing the sale of 1980s. working on the and Moscatiello’s includeand family Abramoff, business Kidan, Rudy interests and SunCruz at nearly SunCruz. Later Rudy went to work Adam Kidan SunCruz matter. daughter to be paid DENNIS COOK — executive Joan Wagner and her husband. A for Abramoff. ASSOCIATED Abramoff’s partner He served as $145,000 for food $3 million, including a $1.4 million PRESS week later, Boulis agrees to sell SunCruz to in the SunCruz middleman and beverage Abramoffinvestment and Kidan with for $145his father million. in a com- purchase had a between consulting. Kidan later Sept. 18 string of lawsuits, Abramoff said he did not know pany that owns parking lots in Atlan- liens and judgments and Ney. Moscatiello had once SunCruz principals meet in New York to begin against him. His been indicted in New closingtic City. the deal.The Thatlobbyist same night,also sentKidan Foothilland GERALD HERBERT — York in a case his lead financier, Greg Walker of Foothill Dial-a-Mattress ASSOCIATED PRESS Capital a list of loan references that RAY LUSTIG — involving Capital Corp., travel to D.C. to join DeLay and THE WASHINGTON franchise in D.C. POST also was in members of Abramoffincluded for aRudy DeLay and event Rep. in the Danalobbyist’s Rohra- bankruptcy court at the Gambino boxbacher during (R-Calif.).a Redskins-Cowboys game. the time. crime family. TOM ALLEN — “I don’t remember it, but I would THE WASHINGTON POST certainly have been happy to give him a good recommendation,” Rohra- bacher said. “He’s a very honest man.” calls for comment. Kidan also provided Foothill Capital a A week after the Pebble Beach trip, on one-page financial statement in which he June 22, 2000, Boulis entered into a for- claimed to be worth $26 million, all but mal agreement to sell SunCruz to Kidan $874,000 of it in unspecified “closely held and Abramoff. corporations.” But a background report on Now the partners had to find financ- Kidan done for Foothill Capital revealed a ing for the deal. They turned to a specialty string of lawsuits, judgments, liens, bank- lender, Foothill Capital, a unit of Wells ruptcies and failed businesses. Fargo & Co. Kidan grew up in New York and grad- On the plus side for the would-be uated in 1989 from Brooklyn Law School. borrowers were Abramoff’s glowing press He ran two bagel businesses and had a law clippings, including a July 3 story on the practice. In 1993, his mother was killed front page of the Wall Street Journal that during a botched robbery at her Staten SUNDAY, MAY 1, 2005 KLMNO PAGE 8

Island home. The slaying was linked to things over during a Monday night foot- organized crime figures trying to steal ball game, between the Redskins and the several hundred thousand dollars they Dallas Cowboys. Kidan and Walker trav- thought Kidan’s stepfather kept in a safe. eled to Washington from New York to The stepfather had also sued him, join Abramoff in the lobbyist’s leased sky- alleging that Kidan misappropriated box at FedEx Field. Abramoff was spend- $250,000 being held in escrow, a dispute ing about $1 million a year on skyboxes at that would eventually lead Kidan to relin- FedEx Field, MCI Center and Oriole Park quish his license to practice law. Among the at Camden Yards, and often allowed politi- funds at issue: $15,000 posted as a reward cians and their staffers to use them for fun- in his mother’s slaying. draising. A copy of a roster maintained by Nevertheless, Foothill Capital and Abramoff and obtained by The Post shows a second specialty lender, Citadel Equity he provided the box for DeLay’s use that Fund, agreed to lend Abramoff and Kidan night. $60 million to buy Boulis’s business, Walker said he was introduced to requiring the two men to personally guar- DeLay in the skybox and was later told that antee the loans and to put $23 million of DeLay was the majority whip. Walker said their own money into the deal. he was unfamiliar with the position, which Foothill Capital’s representative in the is the third in rank in the House. deal was Greg C. Walker, then a vice presi- “It sounds to me like it is a powerful dent at the firm. Asked last week why Foot- position,” Walker said in a recent inter- hill Capital would take a chance on some- view. Asked whether the introduction with one such as Kidan, Walker said, “You’d DeLay helped establish Abramoff’s bona have to be there at the time.” fides, Walker said, “The credit has to stand He declined to elaborate. on its own.” DeLay spokesman Allen said last week A Sealed Envelope that DeLay does not recall meeting Walker. The lenders, buyers and sellers gath- Nine days after the Redskins game, the ered to begin closing the deal on the morn- last of the closing documents were signed ing of Sept. 18, 2000, in the midtown in New York: Under the final terms, Kidan Manhattan offices of Foothill Capital’s law- and Abramoff were to put in $23 million yers. Tensions were running high; Kidan in cash, Foothill Capital and Citadel would and Abramoff were annoyed that Walker lend the partners $60 million, and Boulis was requiring them to pay hundreds of would agree to accept IOUs from Kidan thousands of dollars more than they had and Abramoff totaling $67.5 million. expected in closing fees. Boulis would stay as a consultant with That night, though, they smoothed a 10 percent stake in the company. As one SUNDAY, MAY 1, 2005 KLMNO PAGE 9

Sept. 26 Dec. 13 Jan. 20 others, on chartered flight to Scotland, 2004 where some golf on the St. Andrews The SunCruz Players The Timeline Terms of SunCruz sale finalized at $147.5 Payments totaling $145,000 begin from George W. Bush sworn in as president. Feb. 20 million. Boulis retains 10 percent stake. SunCruz to Kidan’s associate, Anthony Kidan and Scanlon, a former DeLay aide course. SunCruz assets are auctioned by Abramoff and Kidan agree to put in $23 Moscatiello, and his daughter, for food and Abramoff associate who now is doing November Politicians Businessmen Consultant 2000 bankruptcy court for $35 million to a million cash; obtain a $60 million loan and beverage consulting and other work for SunCruz, attend an Inauguration U.S. attorney in Florida begins criminal Rep. Tom DeLay (R-Tex., below) Rep. Robert W. Konstantinos February group that includes Boulis’s nephew, Jack Abramoff from Foothill Capital and another lender, services. Moscatiello has been identified Day reception in DeLay’s office. inquiry of SunCruz sale, focusing on the On the eve of the SunCruz sale, Ney (R-Ohio) “Gus” Boulis Spiros Naos. The contro- Boulis enters serious negotiations to sell Citadel Equity Fund; and to owe balance by law enforcement as an associate of Jan. 28 missing $23 million. lobbyist Jack Abramoff brought Twice in 2000, The millionaire Greek versial lobbyist’s SunCruz Casinos to Abramoff and Kidan. to Boulis. the Gambino crime family. Feb. 22 SunCruz leases corporate jet to take his partner and his lead banker to Ney entered immigrant built an lawyers say they SunCruz has 11 boats that run daily offshore The Washington Post reports that Sept. 27 Capitol Hill staffers, including current a DeLay event at a Redskins game. comments 11-ship gambling have been told gambling cruises. Abramoff and Scanlon have received at Kidan and partner Waldman each fax to and former aides to DeLay and Sen. 2003 DeLay’s office also arranged for a about SunCruz fleet and sold it under their client is a least $45 million from Indian tribes that May lender a document showing that Kidan 2001 Conrad Burns (R-Mont.), to Super Bowl April 2 U.S. flag that had flown over the into the duress to Abramoff target of the operate casinos. Days later, U.S. Sen. Abramoff, DeLay and Rudy are among those wired the $23 million to Boulis’s bank. Tony Rudy goes to work with Abramoff in Tampa and for a night of gambling Capitol to be given to Gus Boulis, Congressional and his partners. He criminal bank U.S. Court of Appeals throws out 2001 John McCain (R-Ariz.) launches an on 10-day trip to Britain and Scotland, which The wire transfer later will be at the at Washington law firm Greenberg aboard SunCruz ship. seller of Florida casino ship Record, aiding died in a gangland- fraud investi- bankruptcy settlement between the investigation. In coming months, the FBI includes golf at renowned St. Andrews course. center of a criminal inquiry, when lenders Traurig. company SunCruz. Abramoff’s bid style slaying in 2001. gation into the Feb. 6 Boulis estate, Kidan and Abramoff, saying and other federal investigators form a allege that the document was forged and to buy and WALTER MICHOT — MIAMI HERALD MELINA MARA — THE WASHINGTON POST Florida deal. KEN SAWCHUK — NEWSDAY June 9 Jan. 19 it was full of conflicts of interest. task force and convene a grand jury to Tony Rudy (not shown) the deal fraudulent because no money Boulis shot and killed in a gangland-style operate the DeLay’s office gives a U.S. flag that has flown Boulis seeks injunction against Kidan that attack while driving from his office in May 30 examine the payments, as well as As deputy chief of staff for DeLay, business. Ben Waldman (not shown) Michael Scanlon Anthony Moscatiello changed hands. Rudy took a ride on a SunCruz jet A former spokesman over the Capitol to Boulis. would require him to pay what he owes Fort Lauderdale. Abramoff’s and Scanlon’s contacts with The third partner in the SunCruz deal was (above, in 1991) Oct. 26 SunCruz lenders Foothill Capital and to the U.S. Open golf tournament. a onetime Reagan White House aide and for DeLay, he was Kidan arranged for June 15 Boulis and prevent him from operating March 15 Citadel Equity Fund sue to recover $60 lawmakers. Rudy was listed as a reference for West Virginia congressional candidate who hired by Abramoff Moscatiello — a long- Ney praises Kidan in the Congressional the boats. million in loans to Kidan and Abramoff, March 2 SunCruz jet flies a group from D.C. to U.S. Record, saying “he will easily transform At fundraiser for Ney at MCI Center, Abramoff in documents submitted had known Abramoff and Kidan since the and eventually began time acquaintance — alleging that the buyers never put up the Abramoff leaves Greenberg Traurig. In Open at Pebble Beach in California. They SunCruz from a questionable enterprise Abramoff, Kidan and three other SunCruz to lenders financing the sale of 1980s. working on the and Moscatiello’s cash they had promised to inject into the statement, firm says Abramoff “disclosed include Abramoff, Kidan, Rudy and SunCruz to an upstanding establishment.” executives each contribute $1,000. SunCruz. Later Rudy went to work Adam Kidan SunCruz matter. daughter to be paid executive Joan Wagner and her husband. A deal. to the firm for the first time personal for Abramoff. DENNIS COOK — June 22 ASSOCIATED Abramoff’s partner He served as $145,000 for food week later, Boulis agrees to sell SunCruz to Dec. 5 Sept. 21 transactions and related conduct which PRESS middleman and beverage SunCruz files for bankruptcy protection. in the SunCruz Abramoff and Kidan for $145 million. Boulis and Kidan come to blows at a The Daily Town Talk newspaper in are unacceptable to the firm.” purchase had a between consulting. Kidan later Within two weeks, Kidan, Abramoff and Sept. 18 business meeting. Kidan reneges on debt Alexandria, La., reports that an internal Aug. 16 string of lawsuits, Abramoff said he did not know to Boulis, saying that Boulis hid problems Boulis estate reach settlement. Lenders audit by the Louisiana Coushatta tribe Abramoff lawyer Neal Sonnett confirms liens and judgments and Ney. Moscatiello had once SunCruz principals meet in New York to begin at SunCruz. Kidan says Boulis attacked later allege settlement aimed to conceal showed that the tribe had spent $18 in a Florida court pleading that his client against him. His been indicted in New closing the deal. That same night, Kidan and and threatened to kill him; he obtains the fraud in the sale of the company. GERALD HERBERT — his lead financier, Greg Walker of Foothill million in one year on lobbyists and “is a target” of the criminal inquiry into Dial-a-Mattress ASSOCIATED PRESS York in a case restraining order against Boulis. Abramoff RAY LUSTIG — involving Capital Corp., travel to D.C. to join DeLay and lawyers, mostly to Scanlon and Abramoff. the SunCruz sale. THE WASHINGTON franchise in D.C. agrees with Kidan in subsequent e-mail 2002 POST members of Abramoff for a DeLay event in the lobbyist’s also was in messages that Boulis should be removed August bankruptcy court at the Gambino box during a Redskins-Cowboys game. from SunCruz. WTVJ-TV Abramoff takes Ney and former Christian the time. crime family. Gus Boulis was shot while driving his BMW Coalition leader Ralph Reed, among TOM ALLEN — along a Fort Lauderdale street in 2001. THE WASHINGTON POST

THE WASHINGTON POST SUNDAY, MAY 1, 2005 KLMNO PAGE 10

Sept. 26 Dec. 13 Jan. 20 others, on chartered flight to Scotland, 2004 where some golf on the St. Andrews Terms of SunCruz sale finalized at $147.5 Payments totaling $145,000 begin from George W. Bush sworn in as president. Feb. 20 million. Boulis retains 10 percent stake. SunCruz to Kidan’s associate, Anthony Kidan and Scanlon, a former DeLay aide course. SunCruz assets are auctioned by Abramoff and Kidan agree to put in $23 Moscatiello, and his daughter, for food and Abramoff associate who now is doing November bankruptcy court for $35 million to a million cash; obtain a $60 million loan and beverage consulting and other work for SunCruz, attend an Inauguration U.S. attorney in Florida begins criminal group that includes Boulis’s nephew, from Foothill Capital and another lender, services. Moscatiello has been identified Day reception in DeLay’s office. inquiry of SunCruz sale, focusing on the Spiros Naos. Citadel Equity Fund; and to owe balance by law enforcement as an associate of Jan. 28 missing $23 million. to Boulis. the Gambino crime family. Feb. 22 SunCruz leases corporate jet to take The Washington Post reports that Sept. 27 Capitol Hill staffers, including current Abramoff and Scanlon have received at Kidan and partner Waldman each fax to and former aides to DeLay and Sen. 2003 least $45 million from Indian tribes that lender a document showing that Kidan 2001 Conrad Burns (R-Mont.), to Super Bowl April 2 operate casinos. Days later, U.S. Sen. wired the $23 million to Boulis’s bank. Tony Rudy goes to work with Abramoff in Tampa and for a night of gambling U.S. Court of Appeals throws out 2001 John McCain (R-Ariz.) launches an The wire transfer later will be at the at Washington law firm Greenberg aboard SunCruz ship. bankruptcy settlement between the investigation. In coming months, the FBI center of a criminal inquiry, when lenders Traurig. Feb. 6 Boulis estate, Kidan and Abramoff, saying and other federal investigators form a allege that the document was forged and Jan. 19 it was full of conflicts of interest. task force and convene a grand jury to the deal fraudulent because no money Boulis shot and killed in a gangland-style examine the payments, as well as changed hands. Boulis seeks injunction against Kidan that attack while driving from his office in May 30 would require him to pay what he owes Fort Lauderdale. Abramoff’s and Scanlon’s contacts with Oct. 26 SunCruz lenders Foothill Capital and Boulis and prevent him from operating March 15 Citadel Equity Fund sue to recover $60 lawmakers. Ney praises Kidan in the Congressional the boats. million in loans to Kidan and Abramoff, March 2 Record, saying “he will easily transform At fundraiser for Ney at MCI Center, alleging that the buyers never put up the Abramoff leaves Greenberg Traurig. In SunCruz from a questionable enterprise Abramoff, Kidan and three other SunCruz executives each contribute $1,000. cash they had promised to inject into the statement, firm says Abramoff “disclosed to an upstanding establishment.” deal. June 22 to the firm for the first time personal Dec. 5 Sept. 21 transactions and related conduct which Boulis and Kidan come to blows at a SunCruz files for bankruptcy protection. are unacceptable to the firm.” Within two weeks, Kidan, Abramoff and The Daily Town Talk newspaper in business meeting. Kidan reneges on debt Alexandria, La., reports that an internal Aug. 16 to Boulis, saying that Boulis hid problems Boulis estate reach settlement. Lenders audit by the Louisiana Coushatta tribe Abramoff lawyer Neal Sonnett confirms at SunCruz. Kidan says Boulis attacked later allege settlement aimed to conceal showed that the tribe had spent $18 in a Florida court pleading that his client and threatened to kill him; he obtains the fraud in the sale of the company. million in one year on lobbyists and “is a target” of the criminal inquiry into restraining order against Boulis. Abramoff lawyers, mostly to Scanlon and Abramoff. the SunCruz sale. agrees with Kidan in subsequent e-mail 2002 messages that Boulis should be removed August from SunCruz. WTVJ-TV Abramoff takes Ney and former Christian Gus Boulis was shot while driving his BMW Coalition leader Ralph Reed, among along a Fort Lauderdale street in 2001.

THE WASHINGTON POST SUNDAY, MAY 1, 2005 KLMNO PAGE 11

A Troubled Partnership, an Unsolved Slaying

One of the confidential side agreements that were part of the SunCruz closing involved the lender, Foothill Capital, and Jack Abramoff’s partner, Adam Kidan. Kidan agreed to resolve the liabilities in his personal bankruptcy within 45 days. The letter puzzled a lawyer for the other lender, Citadel Equity Fund, who wrote on his copy, “who are we hiding these items from & why?”

SOURCE: Court documents THE WASHINGTON POST of the four owners — Kidan and Abramoff it? And I told him I would do it if the price each had 40 percent, and Waldman had 10 was adjusted accordingly.” percent — Boulis thought he would also Kidan later testified in a deposition still have a say in how business was done. there was nothing in writing about the The closing documents did not tell change, but he said that he, Abramoff and the whole story, however. What really hap- Boulis orally agreed to do it. “There was a pened that week is the subject of the fed- discussion between myself and Mr. Bou- eral bank fraud investigation. lis and Mr. Abramoff, and then Mr. Boulis Kidan later acknowledged that he and went off to Greece” to attend his father’s Abramoff never made the $23 million cash funeral, Kidan testified. Boulis left his sub- payment to Boulis. Kidan testified in a ordinates to handle the closing. court deposition that Boulis secretly agreed In effect, Kidan and Abramoff were instead to accept two promissory notes allowed to buy Gus Boulis’s gambling com- totaling $20 million just before the closing pany without putting in a cent of equity. when Kidan had threatened to walk away When Foothill Capital eventually sued from the deal because he thought the price to recover its loans, one of its lawyers said was too high. it would never have lent the $60 million if “I told Mr. Boulis we would not be clos- it had known about the secret promissory ing the deal,” Kidan later said in a deposi- notes. The loan agreements with the banks tion. “He said under what terms would I do required that Abramoff and Kidan have a SUNDAY, MAY 1, 2005 KLMNO PAGE 12

BY JOE RIMKUS JR. — MIAMI HERALD Gus Boulis, left, was a Greek immigrant who made his own fortune and founded SunCruz Casinos in 1994. cash stake in SunCruz, just as a bank usu- existence of the substituted notes from the ally requires a cash down payment before lenders.” issuing a home mortgage. Foothill Capital Foothill Capital also said it has even has said it relied on the financial state- stronger evidence of fraud. ments provided by Abramoff and Kidan in The lender had asked for proof that which they represented that they had the the Kidan group had paid the $23 million necessary means to put up $23 million in to Boulis. In response, Kidan and Wald- cash. man each faxed copies of a purported wire- Foothill Capital also said that the buy- transfer document to Greg Walker on Sept. ers and sellers knew that the secret arrange- 27, the final day of closing. The document ment was fraudulent and tried to conceal was a Sept. 22 notice of a wire transfer of it. Foothill Capital cited a fax to Kidan at $23 million “by order of Adam Kidan” from his hotel from Joan Wagner, Boulis’s chief Chevy Chase Bank to Boulis’s account at financial officer and his representative Ocean Bank. However, Kidan’s account at at the closing. The fax included copies of Chevy Chase had been closed weeks earlier, the two promissory notes and the hand- according to court documents. Even when scrawled instruction: “Please review and the account was active, there was never a if ‘ok’ sign and give to Jimmy in a sealed transaction larger than $107,000, Chevy envelope.” Chase told Foothill Capital. “Jimmy” was another Boulis lawyer, Waldman did not respond to repeated according to Foothill Capital. The lender requests seeking comment. said in a court filing “the clear implica- Kidan’s lawyer has argued that Foot- tion of this directive was to hide the very hill Capital may not be an innocent victim. SUNDAY, MAY 1, 2005 KLMNO PAGE 13

“Everyone needs to look at what knowledge “We fired his friends, we fired his fam- the lender had,” said Martin Jaffe of Holly- ily and he wasn’t happy with it,” Kidan later wood, Fla., adding that he could not com- told the Sun-Sentinel in Fort Lauderdale. ment on the details of the case. “You can’t Kidan said that he found the ships be defrauded if you know what’s going on were in disrepair and that there were over- and are a party to it.” due bills. He refused to make his loan pay- Court records show that Foothill Capi- ments to Boulis. tal did have a confidential side agreement Boulis was incensed. In October 2000, with Kidan. Under the agreement, pre- he wrote letters to Kidan demanding pay- pared just before the closing, Kidan prom- ment, threatening to tell the lenders and ised to resolve the liabilities in his personal Abramoff that Kidan was reneging. bankruptcy within 45 days. Two former SunCruz insiders say that At the top of a draft of the letter is a Boulis’s truculence sent Abramoff and puzzled note from Citadel’s lawyer: “Looks Kidan back to their friends on Capitol Hill. fine, but who are we hiding these items Scanlon, at the time a public relations con- from & why?” sultant employed by SunCruz, once again Lawyers for Foothill Capital did not asked Ney to place comments in the Con- respond to repeated requests for comment. gressional Record. Two days after Boulis’s last letter, Ney did so. “I have come to learn Boulis Was Incensed that SunCruz Casino now finds itself under When the deal was done, Kidan moved new ownership,” Ney stated in the record. to Florida to run SunCruz. Abramoff stayed Kidan’s “track record as a businessman in D.C. and a citizen lead me to believe that he will Abramoff and Kidan started pay- easily transform SunCruz from a question- ing themselves $500,000-a-year salaries. able enterprise to an upstanding establish- Among the first checks Kidan wrote were ment.” payments totaling $310,000 that he sent In the midst of the infighting with to Abramoff to help pay for the sports Boulis, Kidan decided to hire an old New skyboxes at FedEx Field, MCI Center and York friend, Anthony Moscatiello, who was Camden Yards. running a catering hall. Kidan made him Operating out of SunCruz’s offices a food-and-beverage consultant. Moscati- near Fort Lauderdale, Kidan moved into a ello has been described by law enforcement $4,300-a-month luxury condo paid for by as an unofficial bookkeeper for New York SunCruz and bought a 34-foot powerboat. City’s Gambino crime family. He quickly put his mark on the business, He and Kidan first met about 1990 firing SunCruz employees including sev- when Kidan was running a bagel busi- eral of Boulis’s friends and relatives. ness in the Hamptons. Moscatiello had SUNDAY, MAY 1, 2005 KLMNO PAGE 14

been indicted on federal heroin-trafficking ner, Abramoff continued to support Kidan. charges in 1983 along with Gene Gotti, By late November, threats were flying. brother of John Gotti, the boss of the Gam- Boulis’s allies began to stir trouble, includ- binos. Moscatiello was accused of trying to ing a business associate who accused Kidan dissuade witnesses from testifying in the of having mafia connections at a commu- case. After Gotti and several others were nity meeting in Mayport, Fla., where Sun- convicted and sentenced to prison, charges Cruz docked one of its gambling boats. against Moscatiello were dropped. Kidan threatened to sue. In Florida, Moscatiello began visit- The conflict exploded on Dec. 5. Joan ing Kidan’s condominium and golfing with Wagner, Boulis’s chief financial officer, had Kidan and Waldman, according to deposi- called a meeting of the SunCruz principals tions of Kidan and Waldman. Kidan later except for Abramoff, who was traveling testified he was unaware of Moscatiello’s abroad. They met at the company’s offices legal troubles or the alleged Gambino affil- in Dania Beach, Fla., to try to resolve the iations. increasing acrimony. What happened there is in dispute. ‘This Guy Is Violent’ Kidan later filed a police report stat- In early November 2000, Abramoff ing that Boulis assaulted him with a pen, flew to Miami to meet with Boulis and drawing blood. He claimed in court papers Kidan “to try to mediate their differences that Boulis “attacked [Kidan] in the face for the good of the business,” Abramoff’s and neck and kicked his body,” before being attorney said later. “Abramoff met alone pulled off by a SunCruz employee. with Boulis and his representatives. Bou- Police said that at least one other wit- lis recounted Kidan’s bad acts and at one ness stated that Kidan provoked Boulis by point stated ‘Kidan stole my company.’ “ calling Wagner names and making threats. Abramoff said later in court documents According to this account, Boulis told he learned for the first time at this meet- Kidan to stop, but Kidan instead repeated ing with Boulis that Kidan had not given an insult. Boulis then punched Kidan. Boulis the $23 million. “Abramoff was flab- The day of the fight, Wagner e-mailed bergasted by this news,” his attorney wrote. Abramoff pleading with him to come to “He could not believe that it could be true, Florida to mediate. given Kidan’s representations to Abramoff.” “The crisis at suncruz took on new But Abramoff, along with Kidan, had meaning today with gb [Gus Boulis] and signed sworn documents faxed to the clos- ak [Adam Kidan] getting physical,” Wag- ing in which he and Kidan attested that ner wrote. “Money is being wasted and lost they had paid Boulis the $23 million. And and it shouldn’t continue. . . . I’m telling in e-mails exchanged with Kidan and Wag- you that you must address the issue asap. SUNDAY, MAY 1, 2005 KLMNO PAGE 15

Your delay is only emboldening Adam and By painting the picture we box him. The he is really on the edge.” negative is that his profile shows that he Wagner wrote, “I liked Adam and will retaliate against me.” thought I would be working with all of Abramoff replied, “I agree with this you to build an empire to be proud of and completely.” make us all alot of money too.” But now she He e-mailed Boulis attorney Anthone said, “the only recourse” was for Abramoff Damianakis: “It is my belief that Gus and to join with Boulis and Waldman to vote Adam need to resolve the issue of what Gus Kidan out of SunCruz. is owed and Gus needs to move on out of A day later, Wagner pointedly noted the company.” that Boulis, as a lender to the Kidan group, Kidan hired a security firm to assess could “veto certain activities and transac- what kind of threat was posed by Boulis, tions,” thus canceling the takeover of Sun- who once had been arrested for harassing Cruz. a girlfriend who had obtained a restrain- Abramoff forwarded Wagner’s last ing order after she accused him of beat- e-mail to Kidan and Waldman. In response, ing her. Kidan paid for three bodyguards Kidan told Abramoff, “We need to shut her and ordered an armor-plated Mercedes, down.” according to court records. He also Kidan also urged, “Jack, you need to requested a restraining order, which was act above all of this.” granted. He alleged that Boulis vowed to In his e-mails to Abramoff, Kidan have him killed. made a cryptic reference to an ally who had A week later, SunCruz made the first sent protection to Kidan in Florida. of $145,000 in payments to Moscati- “My friend in NY is acting out of ello. Three checks for $10,000 each were concern for my safety,” Kidan wrote to made to Jennifer Moscatiello, daughter Abramoff. “By sending security I am afraid of Anthony, and $115,000 to Gran-Sons, it will make things worse and I will ask a company the Moscatiellos ran. The pay- him today to remove them. I appreciate ments were for catering, consulting and his efforts, but the situation is at a critical “site inspections,” Kidan said later. point.” However, there is no evidence that any Kidan proposed “a concerted press food or drink was provided or consulting effort” against Boulis. documents prepared. The checks to Jen- “I was the victim of family violence nifer were made at Anthony’s instruction, before,” Kidan wrote. “Lets use that in our Kidan said, even though she performed favor (my mother wouldn’t mind) to show no services. A lawyer for the Moscatiellos how we can’t tolerate violence and the like declined to comment. of criminals. Lets get the protective order. On Jan. 19, 2001, Boulis went to court, SUNDAY, MAY 1, 2005 KLMNO PAGE 16

seeking an injunction to prevent Kidan Abramoff made Tony Rudy his first hire from operating the boats and to force him from Capitol Hill. to make his payments to Boulis. Abramoff’s departure had been com- The next day, Kidan and Scanlon were ing for months. His style had clashed with guests at a reception in DeLay’s Capitol others at Preston Gates, who believed he Hill office celebrating the inauguration of was moving too fast and being careless. George W. Bush, according to two people Earlier in the year, Manuel Rouvelas, the who were at the reception. firm’s founding partner in Washington, A week later, Abramoff and his part- had warned Abramoff, according to people ners leased a corporate jet to ferry con- familiar with the exchange. gressional staffers down to Tampa for the “If you’re not careful,” Rouvelas told Super Bowl game and a night of gambling Abramoff, “you will end up dead, disgraced aboard a SunCruz ship. Among those or in jail.” aboard were DeLay aide Tim Berry, who is In February 2001, less than two now DeLay’s chief of staff, and two staffers months after Abramoff had settled in at to Sen. Conrad Burns (R-Mont.). DeLay’s Greenberg Traurig, Abramoff and Kidan former deputy chief of staff, Tony Rudy, by were abroad prospecting for new business. then a newly minted lobbyist working for They were in England preparing to fly to Abramoff, was there, too. Hong Kong, when Kidan’s bodyguard got a Berry failed to report the trip on his call. Boulis was dead. disclosure forms. A DeLay spokesman said Kidan rushed home. He told police he Berry had no idea SunCruz paid for the knew nothing about the slaying. trip. He thought it was a Republican fun- Fort Lauderdale police detectives say draising trip allowable under House rules. they know who committed the crime. All On Jan. 31, the Kidan-Boulis brawl hit they need, they say, is one cooperating wit- the front page of the Sun-Sentinel. Kidan ness. told the newspaper that Boulis said: “I’m After Boulis’s slaying, Kidan and not going to sue you, I’m going to kill you. . Abramoff conducted business as usual at . . This guy is violent — he’s sleazy.” SunCruz. They asked Foothill Capital for another loan to clear up their debts. They A Federal Target stepped up plans to expand casino opera- Back in Washington, Abramoff was tions to the Northern Mariana Islands, moving his lobby business and many of his where the government had been a client clients, including his tribal accounts, from of Abramoff’s. They also hired Greenberg Preston Gates to Greenberg Traurig LLP. Traurig as their lobbyists in Washington. He also took at least 10 employees with In March 2001, SunCruz executives, him from Preston Gates. At Greenberg, including Abramoff and Kidan, attended a SUNDAY, MAY 1, 2005 KLMNO PAGE 17

fundraiser in Abramoff’s box at MCI Cen- up the fraud at the closing. ter for Ney. The next month Kidan hosted In April 2003, the Court of Appeals for a fundraiser in his apartment in Fort Lau- the 11th Circuit threw out the settlement, derdale for his local congressman, Rep. saying it was marred by conflicts of interest Peter Deutsch (D-Fla.). and should not have been approved by the But the relationship between DeLay bankruptcy judge. The court said the Kidan and Abramoff changed. DeLay told a management was “riddled with fraudulent group of conservatives last month “that he and dishonest transactions,” including the had no idea that Abramoff was involved charges the Boulis side made about Kidan’s in this and was absolutely shocked when misuse of funds. he found out about it,” said Paul M. Wey- Today, the SunCruz casino boats rich, a conservative activist and longtime are sailing under new ownership after a friend of DeLay’s. “Immediately he had bankruptcy auction. Abramoff and Kidan Abramoff called in and told him, ‘I want no remain embroiled in litigation with Foot- more dealings with you,’ and I think he felt hill over the $60 million they were lent. blind-sided by Abramoff, that Abramoff Neal Sonnett, a prominent Miami was aware of Tom’s views on the subject criminal defense lawyer hired by Abramoff, and never bothered to tell him” about his said in a court pleading last August that stake in SunCruz. federal prosecutors have told him Abramoff DeLay, whose campaign committee is a “target” of a federal grand jury investi- had been one of the largest recipients of gation. gambling money, has since stopped accept- Sonnett told The Post he is confident ing contributions from Indian tribes that Abramoff will be cleared, calling him a operate casinos. “victim” in the SunCruz case. Sonnett said In late spring, stories began appearing he could not discuss specifics, including in the Florida media about Kidan’s links to the wire transfer, because of the ongoing the Moscatiellos. In June, Abramoff, Kidan investigation. and the Boulis estate abruptly settled their Abramoff has had little to say publicly differences by placing the company into about SunCruz. In 2002, he did talk to the bankruptcy. As part of the settlement, Washington Business Forward. Abramoff and Kidan relinquished most of “I was fortunate to get out of that their interest in the company to the Bou- financially better off than when I entered lis estate, in exchange for an agreement it,” he said. “I was lucky it did not damage releasing Abramoff and Kidan from their me. But it’s not something I would repeat.” debts and liabilities. By then, Abramoff had already Foothill Capital would later contend embarked on another enterprise — one that the settlement was intended to cover that Sen. John McCain (R-Ariz.) would SUNDAY, MAY 1, 2005 KLMNO PAGE 18

later brand a “truly extraordinary” exam- “We need that moolah,” Abramoff ple of “exploitation and deceit.” During a e-mailed Scanlon on Jan. 16, 2002. “We three-year period, Abramoff and Scanlon have to hit $50M this year (our cut!).” took in $82 million in lobbying and public relations fees from six Indian tribes. Researcher Alice Crites and database editor Derek Willis contributed to this report. DAILY 05-01-05 MD M2 A1 CMYK

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Untangling a Lobbyist’s Stake in a Casino Fleet U.S. Sees With Millions of Dollars Unaccounted for, Another Federal Investigation Targets Abramoff Drop in By Susan Schmidt and James V. Grimaldi on Feb. 6, 2001. Now, Abramoff is the target of a federal in- Washington Post Staff Writers vestigation into whether the casino ship deal involved bank fraud. According to court records, the SunCruz purchase Terrorist It was a gangland-style hit straight out of “Goodfellas.” hinged on a fake wire transfer for $23 million intended to A man in a BMW was driving down a quiet side street af- persuade lenders to provide financing to Abramoff’s group. ter an evening meeting at his Fort Lauderdale office when a Although the outlines of the tale have become part of car slowed to a stop in front of him. A second car boxed the South Florida lore, what has not been disclosed are the full BMW in from behind, then a dark Mustang appeared from details of the alleged fraud at the heart of the transaction Threats the opposite direction. The Mustang’s driver pulled along- and the extent of Abramoff’s role — including his use of side and pumped three hollow-point bullets into the BMW contacts with Republican Reps. Tom DeLay (Tex.) and driver’s chest. Robert W. Ney (Ohio) and members of their staffs as he Al Qaeda Focusing The dead man was Konstantinos “Gus” Boulis, a volatile worked to land the deal. 51-year-old self-made millionaire, a Greek immigrant who The SunCruz story combines the South Florida of novel- Attacks in Iraq and had started as a dishwasher in Canada and ended up in BY URSULA E. SEEMANN — SOUTH FLORIDA SUN-SENTINEL ist Carl Hiaasen with the Washington of influence-peddling Florida, where he built an empire of restaurants, hotels and Jack Abramoff once owned 40 percent of SunCruz Casinos. K Street: Thousands of pages of bankruptcy and other Europe, Officials Say cruise ships used for offshore casino gambling. Boulis’s The founding partner was slain in Fort Lauderdale. court records, along with dozens of interviews in Florida slaying, still unsolved four years later, reverberated all the and Washington, reveal secret deals; a forged document; By Dana Priest and Spencer Hsu way to Washington. Months earlier he had sold his fleet of he and a partner collected from casino-owning Indian double-crossing partners; and socializing with government Washington Post Staff Writers casino ships to a partnership that included Republican su- tribes. But the wreckage from his brief and tumultuous officials on a private jet, at the U.S. Open golf tournament at perlobbyist Jack Abramoff. time as owner of the gambling fleet threatens to overtake Pebble Beach, at a Monday night football game in a private Reports of credible terrorist threats Abramoff is best known as a target of a federal in- his Washington legal troubles. box at FedEx Field, and at an exclusive party on Inaugura- against the United States are at their vestigation in Washington into the tens of millions in fees Not long after Abramoff and his partners bought Sun- tion Day in Washington. lowest level since the attacks of Sept. 11, Cruz Casinos in September 2000, the venture ran aground Gus Boulis never really wanted to sell SunCruz. He 2001, according to U.S. intelligence offi- after a fistfight between two of the owners, allegations of cials and federal and state law enforce- K Abramoff speaks out about probes. | A7 mob influence, dueling lawsuits and, finally, Boulis’s death See SUNCRUZ, A8, Col. 1 ment authorities. The intelligence community’s daily threat assessment, developed after the terrorist attacks to keep policymakers informed, currently lists, on average, 25 to 50 percent fewer threats against do- Power Grid mestic targets than it typically did over For the First Time in a Long, Long While, Wizards Win a Playoff Game the past two years, said one senior coun- terterrorism official. In Iraq Far A broad cross section of counterter- rorism officials believes al Qaeda and like-minded groups, in part frustrated by increased U.S. security measures, are fo- From Fixed cusing instead on Americans deployed in Iraq, where the groups operate with rela- tive impunity, and on Europe. New Government Though some are expressing caution and even skepticism, interviews last Inherits Huge Task week with 25 current or recently retired officials also cited progress in counter- By Caryle Murphy terrorism operations abroad and a more and Bassam Sebti experienced homeland security appara- Washington Post Foreign Service See THREAT, A23, Col. 1 BAGHDAD — When his lights and television go dark, as they regularly do, Khalid Qasim Ali flips a switch in his living room to bring back the power. This electricity is not state-supplied. In- stead, it comes from a generator three blocks away that is connected to Ali’s Blair Takes home by a wire strung in the air. All told, 107 families in Baghdad’s working-class neighborhood of Topchi His Lumps are hooked up to the generator. The ar- rangement gives them power during the long blackouts that are routine in Iraq. It also darkens the skies over Top- Before Vote chi with a tangled skein of unsightly, dangerous cables. Like everyone else, Campaign Has Been Ali is billed by the ampere. He pays the generator’s owner around $10 a month. “We should enjoy electricity without Intensely Personal using a generator because Iraq is a wealthy country,” said Ali, a 65-year-old By Glenn Frankel retired truck driver. “Regretfully, the Washington Post Foreign Service Americans did nothing since they LONDON, April 30 — After a punish- came.” ing day on the campaign trail, Tony Blair Thousands of roaring generators in faced one last challenge Thursday night: Iraqi back yards, driveways and street a live BBC television studio audience ea- corners demonstrate that after two BY JONATHAN NEWTON — THE WASHINGTON POST ger for combat. The British prime minister, his fore- See A20, Col. 1 Gilbert Arenas splits the Chicago defense on his way to two of his game-high 32 points during the second half of the Wizards’ first playoff win IRAQ, since 1988. It was the first NBA playoff game in the District and the MCI Center. Stories in Metro, Style and Sports. head bathed in perspiration, launched into his usual defense for joining the United States in invading Iraq, insisting he had taken a hard decision to rid the world of an evil dictator and a potential threat. But the audience was having Subdivisions Impose Social Divide none of it. “It was a political decision to support your best mate, George Bush,” one wom- Some Neighbors of Self-Contained Clusters in N.Va. Feel Isolated an said. Another added, “If you weren’t DAILY 05-01-05 MD M1 A8 CMYK fraudulent, you were grossly negligent DAILY 05-01-05 MD M1 A9 CMYK By Stephanie McCrummen It was not simply that thousands of houses came; it was and for that you should be resigning any- Washington Post Staff Writer how they came — in such self-contained communities as way.” And a man chimed in: “You lied to Brambleton and Forest Manor, Forest Run and Belle Terra, the country and that’s why we can’t sup- Lately, Ivan Barry, who is 12, feels like a stranger in a all with their backs turned to the rambler. And Ivan, once port you.” strange land, which is odd, since he and his family moved the insider in a sense, became an outsider — a resident of Once, he was the toast of Britain, a to their red brick rambler on Ryan Road in Loudoun Coun- nowhere.The Washington Post young political leader with a mission and M1 Sunday, May 1, 2005 A9 A8 Sunday, May 1, 2005 M1 K NATIONAL NEWS The Washington Post NATIONAL NEWS ty seven years ago, before most of their neighbors arrived. “At school, they’re like, ‘What development do you live a message. Now, in what he says is the They were part of a rural community then, their street in?’ ” Ivan said recently. “And I’m like, ‘I don’t live in a de- last campaign of his political career, Blair mostly fields and woods where Ivan could romp with aban- velopment!’ And they’re like, ‘Do you live in the woods?’ is the target. As a May 5 election ap- don, discovering creeks and paths to such hidden spots as And I’m like, ‘I’ve been living here for seven years!’ And proaches, his enemies are trying to make BY JAHI CHIKWENDIU — THE WASHINGTON POST an old mill, where he’d go sometimes to think, hunt for red- they’re like, ‘This didn’t exist seven years ago!’ ” he said, the vote a referendum on his character Deal Was Based on FraudulentKaira Barry’s Ashburn neighborhoodMoney has been transformed Transfertailed skinks or just pretend that he was lost in the wilder- greatly in the five years since the photo she holds was taken. ness. Then, things changed. See CLUSTERS, A16, Col. 1 See BLAIR, A19, Col. 1 SUNCRUZ, From A1 lots in Atlantic City. The lobbyist also sent Foothill Cap- ital a list of loan references that included Rudy and Rep. bought his first cruise boat in 1994 and swiftly added 10 The Missing $23 Million Dana Rohrabacher (R-Calif.). INSIDE more, building an enormously profitable business that Repair Teams Try to “ICalm don’t remember ‘Computer it, but I would certainly have Rage’ been took in as much as $30 million in yearly profits. To qualify for a $60 million loan to buy SunCruz Casinos, lobbyist Jack Abramoff signed a happy to give him a good recommendation,” Rohrabach- Boulis, a larger-than-life character, had always been a document (1) certifying that he and his partner, Adam Kidan, put $23 million in cash into the er said. “He’s a very honest man.” Runaway Slights May Hurt The End of the Earth scrapper and something of a business genius. As a teen- deal. Asked to prove the money was deposited, Kidan andBy another Ariana partner,Eunjung BenCha Waldman, faxed Kidan ventionalso provided hotline, Foothill now works Capital in customer a one-page service fi- for Dri- Bride Blacks’ Health Pick a remote island off Alaska. ager, he jumped ship from a Greek freighter in Canada, the lender, Foothill Capital, what appeared to be a confirmationWashington (2) Postof a Staff wire Writer transfer of the money nancial statementveSavers inData which Recovery he claimed Inc. to“This be worth is a lot $26 like my old Send Gene Weingarten, and tell job,” she said. “Oftentimes the most helpful thing we can A new study links where he made his first fortune with Mr. Submarine from Kidan’s account at Chevy Chase Bank to the seller’s bank. But Chevy Chase later said (3) million, all but $874,000 of it in unspecified “closely held Is BackOne of the confidential side agreements that were part of the SunCruzhim closing not to involved come back the lender,until he Foothill Capital, sandwich shops. After retiring to the Florida Keys, at the NOVATO, Calif.—The young woman at the othercorporations.” end do is Butjust ato background listen and toreport let people on Kidan get donewhatever they discrimination to early has a story. Hilarious, right? in answer to a subpoena that Kidan’s account had already been closed at the time of the purported Homeand Jack Abramoff’s partner, Adam Kidan.stages Kidan of heart agreed disease to resolve the liabilities in his personal bankruptcy within 45 age of 30, he built another fortune with the popular Mi- of the phone wept to Kelly Chessen that the worldfor was Foothillare Capital feeling revealedoff their chests.”a string of lawsuits, judg- days. The letter puzzled a lawyer for the other lender, Citadel Equity Fund,THE MAGAZINE who wrote on his copy, “who are we hiding wire transfer. Foothill now contends that the faxed documentagainst was her. a She forgery. had been in a minor car accident. A thief Technology has become a bane of modern life. People Jennifer in women. NATION, A17 ami Subs chain. Then he launched SunCruz, known as a ments, liens, bankruptcies and failed businesses. these items from & why?” BY JOE RIMKUS JR. — MIAMI HERALD had stolen some things from her house. And now this: juggle a mountain of electronic equipment to store their Wilbanks was “cruise to nowhere” casino business. His midsize cruise Kidan grew up in New York and graduated in 1989 Today’s contents are on A2 ships left on day trips from nine ports around Florida, The family’s computer, which contained her husband’sfrom Brooklynmost Lawimportant School. records He ran twoand bagelintimate businesses secrets. But the found inSOURCE: New Court documents THE WASHINGTON POST Gus Boulis, left, was a Greek immigrant who made his own fortune and founded SunCruz Casinos in 1994. 1 business files, was dead. complicated nature of their machines, with their manu- Buffett Won’t taking tourists, high-rollers and elderly players into in- and had a law practice. In 1993, his mother was killed Mexico after The Post on the Internet: ternational waters, beyond the reach of the state’s anti- Chessen, a crisis counselor who answered theduring hot- a botchedals full robberywith unintelligible at her Staten acronyms, Island home. tangles The of cords making up a Talk About AIG gambling laws. line, soothingly assured the caller that such thingsslaying hap- wasand linked invisible to organized wireless signals, crime figures means tryinga breakdown to is al- story about washingtonpost.com Based outside Fort Lauderdale, the business was the pen to everyone, that it was no one’s fault, that hersteal luck severalmost hundred inevitable. thousand The lossdollars of athey computer, thought cellKi- phone or being kidnapped, police said, then At Berkshire bane of Florida officials, who thought Boulis flouted the would turn around. It wasn’t until 20 minutes intodan’s the stepfatherother gadget kept in can a safe. be so jolting that it is fueling the rise of copped to the truth — she fled on a Hathaway’s shareholder conversation that Chessen began to address the cause of what some psychologists call “computer rage.” cross-country bus trip to avoid the meeting, discussion of Contents law, and SunCruz’s port city neighbors, who complained The stepfather had also sued him, alleging that Kidan A Troubled Partnership, 2005 an Unsolved Slaying the young woman’s agony. The phenomenon is transforming the nature of tech- pressure of a looming wedding. regulatory probes was The that drunken gamblers were urinating on their lawns. misappropriated $250,000 being held in escrow, a dis- Washington For years, Boulis beat back efforts by federal and state Send us the machine, Chessen said, and we’ll dopute ev- that nologywould eventually service, an lead industry Kidan tolong relinquish infamous his for li- being im- NATION, A13 off-limits. NATION, A6 Post lawyers determined to shut him down. erything we can to help. cense to practice law. Among the funds at issue: $15,000 notes. The loan agreements with the banks required that businessmanCompany and7 a citizen lead me to believe that he will shut her down.” will end up dead, disgraced or in jail.” In 1999, federal prosecutors charged Boulis with vio- Chessen, who once was a manager for a suicideposted pre- as Seea rewardTECH, in A6,his mother’sCol. 1 slaying. Abramoff and Kidan have a cash stake in SunCruz, just as easily transform SunCruz from a questionable enterprise Kidan also urged, “Jack, you need to act above all of In February 2001, less than two months after Abra- lating the Shipping Act by purchasing his vessels without Nevertheless, Foothill Capital and a second specialty a bank usually requires a cash down payment before issu- to an upstanding establishment.” this.” moff had settled in at Greenberg Traurig, Abramoff and being a U.S. citizen. Boulis agreed to pay a $1 million fine lender, Citadel Equity Fund, agreed to lend Abramoff and ing a home mortgage. Foothill Capital has said it relied In the midst of the infighting with Boulis, Kidan decid- In his e-mails to Abramoff, Kidan made a cryptic refer- Kidan were abroad prospecting for new business. They and sell his cruise line. The government gave him 36 Kidan $60 million to buy Boulis’s business, requiring the on the financial statements provided by Abramoff and Ki- ed to hire an old New York friend, Anthony Moscatiello, ence to an ally who had sent protection to Kidan in Flori- were in England preparing to fly to Hong Kong, when Ki- months to do it and agreed to keep the settlement secret two men to personally guarantee the loans and to put $23 dan in which they represented that they had the neces- who was running a catering hall. Kidan made him a food- da. dan’s bodyguard got a call. Boulis was dead. so Boulis would not lose money in a fire sale. million of their own money into the deal. sary means to put up $23 million in cash. and-beverage consultant. Moscatiello has been described “My friend in NY is acting out of concern for my safe- Kidan rushed home. He told police he knew nothing To sell his business, Boulis turned to his lawyers in the Foothill Capital’s representative in the deal was Greg Foothill Capital also said that the buyers and sellers by law enforcement as an unofficial bookkeeper for New ty,” Kidan wrote to Abramoff. “By sending security I am about the slaying. knew that the secret arrangement was fraudulent and York City’s Gambino crime family. afraid it will make things worse and I will ask him today Fort Lauderdale police detectives say they know who D.C. office of Preston Gates Ellis & Rouvelas Meeds Chevy Chase Savings Bank Funds transfer notification 09-22-2000 C. Walker, then a vice president at the firm. Asked last LLP. Art Dimopoulos, a maritime lawyer, looked for buy- 2 week why Foothill Capital would take a chance on some- tried to conceal it. Foothill Capital cited a fax to Kidan at He and Kidan first met about 1990 when Kidan was to remove them. I appreciate his efforts, but the situation committed the crime. All they need, they say, is one coop- ers. Jack Abramoff, one of Dimopoulos’s partners at one such as Kidan, Walker said, “You’d have to be there at his hotel from Joan Wagner, Boulis’s chief financial offi- running a bagel business in the Hamptons. Moscatiello is at a critical point.” erating witness. Preston Gates, said he could find one. the time.” cer and his representative at the closing. The fax in- had been indicted on federal heroin-trafficking charges in Kidan proposed “a concerted press effort” against After Boulis’s slaying, Kidan and Abramoff conducted Abramoff, 40, was a study in contradictions. A He declined to elaborate. cluded copies of the two promissory notes and the hand- 1983 along with Gene Gotti, brother of John Gotti, the Boulis. business as usual at SunCruz. They asked Foothill Cap- smooth-talking political power player who was an Ortho- scrawled instruction: “Please review and if ‘ok’ sign and boss of the Gambinos. Moscatiello was accused of trying “I was the victim of family violence before,” Kidan ital for another loan to clear up their debts. They stepped dox Jew, the former high school weightlifter produced A Sealed Envelope give to Jimmy in a sealed envelope.” to dissuade witnesses from testifying in the case. After wrote. “Lets use that in our favor (my mother wouldn’t up plans to expand casino operations to the Northern movies in Hollywood before becoming one of the top lob- “Jimmy” was another Boulis lawyer, according to Gotti and several others were convicted and sentenced to mind) to show how we can’t tolerate violence and the like Mariana Islands, where the government had been a client byists in town. The lenders, buyers and sellers gathered to begin clos- Foothill Capital. The lender said in a court filing “the prison, charges against Moscatiello were dropped. of criminals. Lets get the protective order. By painting of Abramoff’s. They also hired Greenberg Traurig as He had built a lucrative practice by showing then- ing the deal on the morning of Sept. 18, 2000, in the mid- clear implication of this directive was to hide the very ex- In Florida, Moscatiello began visiting Kidan’s condo- the picture we box him. The negative is that his profile their lobbyists in Washington. Democrat-dominated K Street and its corporate clients town Manhattan offices of Foothill Capital’s lawyers. istence of the substituted notes from the lenders.” minium and golfing with Kidan and Waldman, according shows that he will retaliate against me.” In March 2001, SunCruz executives, including Abra- how to make friends in the new Republican Congress. He Tensions were running high; Kidan and Abramoff were Foothill Capital also said it has even stronger evidence to depositions of Kidan and Waldman. Kidan later testi- Abramoff replied, “I agree with this completely.” moff and Kidan, attended a fundraiser in Abramoff’s box was especially close to Tom DeLay, then House majority annoyed that Walker was requiring them to pay hun- of fraud. fied he was unaware of Moscatiello’s legal troubles or the He e-mailed Boulis attorney Anthone Damianakis: “It at MCI Center for Ney. The next month Kidan hosted a whip. Abramoff had also convinced casino-rich Indian dreds of thousands of dollars more than they had expec- The lender had asked for proof that the Kidan group alleged Gambino affiliations. is my belief that Gus and Adam need to resolve the issue fundraiser in his apartment in Fort Lauderdale for his lo- tribes that they should begin switching their copious ted in closing fees. had paid the $23 million to Boulis. In response, Kidan and of what Gus is owed and Gus needs to move on out of the cal congressman, Rep. Peter Deutsch (D-Fla.). campaign contributions to the GOP. That night, though, they smoothed things over during Waldman each faxed copies of a purported wire-transfer ‘This Guy Is Violent’ company.” But the relationship between DeLay and Abramoff The buyer Abramoff found for Boulis was Adam Ki- a Monday night football game, between the Redskins and document to Greg Walker on Sept. 27, the final day of clos- Kidan hired a security firm to assess what kind of changed. DeLay told a group of conservatives last month dan, a 36-year-old New York City businessman who had the Dallas Cowboys. Kidan and Walker traveled to Wash- ing. The document was a Sept. 22 notice of a wire transfer In early November 2000, Abramoff flew to Miami to threat was posed by Boulis, who once had been arrested “that he had no idea that Abramoff was involved in this owned the Dial-a-Mattress franchise in Washington. ington from New York to join Abramoff in the lobbyist’s of $23 million “by order of Adam Kidan” from Chevy meet with Boulis and Kidan “to try to mediate their dif- for harassing a girlfriend who had obtained a restraining and was absolutely shocked when he found out about it,” Abramoff had known Kidan since the 1980s when Abra- leased skybox at FedEx Field. Abramoff was spending Chase Bank to Boulis’s account at Ocean Bank. However, ferences for the good of the business,” Abramoff’s at- order after she accused him of beating her. Kidan paid for said Paul M. Weyrich, a conservative activist and long- moff was at Georgetown Law Center and Kidan was an about $1 million a year on skyboxes at FedEx Field, MCI Kidan’s account at Chevy Chase had been closed weeks torney said later. “Abramoff met alone with Boulis and three bodyguards and ordered an armor-plated Mer- time friend of DeLay’s. “Immediately he had Abramoff earlier, according to court documents. Even when the ac- his representatives. Boulis recounted Kidan’s bad acts cedes, according to court records. He also requested a re- called in and told him, ‘I want no more dealings with you,’ undergraduate at George Washington University. Both $23,000,000 Center and Oriole Park at Camden Yards, and often al- were active in the national office of the College Repub- lowed politicians and their staffers to use them for fund- count was active, there was never a transaction larger and at one point stated ‘Kidan stole my company.’ ” Abra- straining order, which was granted. He alleged that Bou- and I think he felt blind-sided by Abramoff, that Abramoff licans. raising. A copy of a roster maintained by Abramoff and than $107,000, Chevy Chase told Foothill Capital. moff said later in court documents he learned for the first lis vowed to have him killed. was aware of Tom’s views on the subject and never both- Abramoff and Kidan were already in business with a obtained by The Post shows he provided the box for De- Waldman did not respond to repeated requests seek- time at this meeting with Boulis that Kidan had not given A week later, SunCruz made the first of $145,000 in ered to tell him” about his stake in SunCruz. third partner, former Reagan White House aide Ben Lay’s use that night. ing comment. Boulis the $23 million. “Abramoff was flabbergasted by payments to Moscatiello. Three checks for $10,000 each DeLay, whose campaign committee had been one of Waldman, who also had been a College Republican. The 3 Walker said he was introduced to DeLay in the skybox Kidan’s lawyer has argued that Foothill Capital may this news,” his attorney wrote. “He could not believe that were made to Jennifer Moscatiello, daughter of Anthony, the largest recipients of gambling money, has since three men had gotten together in a fledgling venture that and was later told that DeLay was the majority whip. not be an innocent victim. “Everyone needs to look at it could be true, given Kidan’s representations to Abra- and $115,000 to Gran-Sons, a company the Moscatiellos stopped accepting contributions from Indian tribes that sought to sell advertising on water taxis that would travel Walker said he was unfamiliar with the position, which is what knowledge the lender had,” said Martin Jaffe of moff.” ran. The payments were for catering, consulting and operate casinos. the Potomac River. the third in rank in the House. Hollywood, Fla., adding that he could not comment on But Abramoff, along with Kidan, had signed sworn “site inspections,” Kidan said later. In late spring, stories began appearing in the Florida Dimopoulos took Kidan to Florida to meet Boulis. “It sounds to me like it is a powerful position,” Walker the details of the case. “You can’t be defrauded if you documents faxed to the closing in which he and Kidan at- However, there is no evidence that any food or drink media about Kidan’s links to the Moscatiellos. In June, What was not disclosed to Preston Gates for at least said in a recent interview. Asked whether the in- know what’s going on and are a party to it.” tested that they had paid Boulis the $23 million. And in e- was provided or consulting documents prepared. The Abramoff, Kidan and the Boulis estate abruptly settled eight months, according to a statement by the firm on troduction with DeLay helped establish Abramoff’s bona Court records show that Foothill Capital did have a mails exchanged with Kidan and Wagner, Abramoff con- checks to Jennifer were made at Anthony’s instruction, their differences by placing the company into bankrupt- Friday, was that Abramoff then joined Kidan in the Sun- fides, Walker said, “The credit has to stand on its own.” confidential side agreement with Kidan. Under the tinued to support Kidan. Kidan said, even though she performed no services. A cy. As part of the settlement, Abramoff and Kidan relin- Cruz venture as a 50-50 partner. Such an arrangement DeLay spokesman Allen said last week that DeLay agreement, prepared just before the closing, Kidan prom- By late November, threats were flying. Boulis’s allies lawyer for the Moscatiellos declined to comment. quished most of their interest in the company to the Bou- would constitute a potential conflict of interest, because does not recall meeting Walker. ised to resolve the liabilities in his personal bankruptcy began to stir trouble, including a business associate who On Jan. 19, 2001, Boulis went to court, seeking an in- lis estate, in exchange for an agreement releasing partners in the Preston Gates firm would be on both Nine days after the Redskins game, the last of the clos- within 45 days. accused Kidan of having mafia connections at a commu- junction to prevent Kidan from operating the boats and Abramoff and Kidan from their debts and liabilities. sides of the deal. The Preston Gates statement said that ing documents were signed in New York: Under the final At the top of a draft of the letter is a puzzled note from nity meeting in Mayport, Fla., where SunCruz docked to force him to make his payments to Boulis. Foothill Capital would later contend that the settle- when the firm learned of the situation, it notified Boulis, terms, Kidan and Abramoff were to put in $23 million in Citadel’s lawyer: “Looks fine, but who are we hiding one of its gambling boats. Kidan threatened to sue. The next day, Kidan and Scanlon were guests at a re- ment was intended to cover up the fraud at the closing. who was already aware of it and did not object. cash, Foothill Capital and Citadel would lend the part- these items from & why?” The conflict exploded on Dec. 5. Joan Wagner, Bou- ception in DeLay’s Capitol Hill office celebrating the in- In April 2003, the Court of Appeals for the 11th Circuit Abramoff’s plan was to have Kidan put up most of the ners $60 million, and Boulis would agree to accept IOUs Lawyers for Foothill Capital did not respond to repeat- lis’s chief financial officer, had called a meeting of the auguration of George W. Bush, according to two people threw out the settlement, saying it was marred by con- money and Abramoff “would use his lobbying expertise from Kidan and Abramoff totaling $67.5 million. ed requests for comment. SunCruz principals except for Abramoff, who was trav- who were at the reception. flicts of interest and should not have been approved by and network to help expand the new company’s markets Boulis would stay as a consultant with a 10 percent eling abroad. They met at the company’s offices in Dania A week later, Abramoff and his partners leased a cor- the bankruptcy judge. The court said the Kidan manage- both in the U.S. and abroad,” Abramoff’s lawyers later as- stake in the company. As one of the four owners — Kidan Boulis Was Incensed Beach, Fla., to try to resolve the increasing acrimony. porate jet to ferry congressional staffers down to Tampa ment was “riddled with fraudulent and dishonest trans- serted. Abramoff would say later that Kidan told him he and Abramoff each had 40 percent, and Waldman had 10 What happened there is in dispute. for the Super Bowl game and a night of gambling aboard actions,” including the charges the Boulis side made was looking to invest an “eight-figure” payoff he had percent — Boulis thought he would also still have a say in When the deal was done, Kidan moved to Florida to Kidan later filed a police report stating that Boulis as- a SunCruz ship. Among those aboard were DeLay aide about Kidan’s misuse of funds. made from the sale of his Dial-a-Mattress franchise. how business was done. run SunCruz. Abramoff stayed in D.C. saulted him with a pen, drawing blood. He claimed in Tim Berry, who is now DeLay’s chief of staff, and two Today, the SunCruz casino boats are sailing under new But even a cursory background check would have The closing documents did not tell the whole story, Abramoff and Kidan started paying themselves court papers that Boulis “attacked [Kidan] in the face staffers to Sen. Conrad Burns (R-Mont.). DeLay’s former ownership after a bankruptcy auction. Abramoff and Ki- raised serious questions about whether Kidan had that however. What really happened that week is the subject $500,000-a-year salaries. Among the first checks Kidan and neck and kicked his body,” before being pulled off by deputy chief of staff, Tony Rudy, by then a newly minted dan remain embroiled in litigation with Foothill over the wrote were payments totaling $310,000 that he sent to a SunCruz employee. lobbyist working for Abramoff, was there, too. $60 million they were lent. kind of money. Kidan’s business was in bankruptcy pro- SOURCE: Court documents of the federal bank fraud investigation. ceedings, and Kidan had declared personal bankruptcy in Kidan later acknowledged that he and Abramoff never Abramoff to help pay for the sports skyboxes at FedEx Police said that at least one other witness stated that Berry failed to report the trip on his disclosure forms. Neal Sonnett, a prominent Miami criminal defense THE WASHINGTON POST 1996. made the $23 million cash payment to Boulis. Kidan tes- Field, MCI Center and Camden Yards. Kidan provoked Boulis by calling Wagner names and A DeLay spokesman said Berry had no idea SunCruz lawyer hired by Abramoff, said in a court pleading last Nonetheless, in January 2000, Boulis agreed in a letter other friend on Capitol Hill. ords. When contacted by The Washington Post recently, tified in a court deposition that Boulis secretly agreed in- Operating out of SunCruz’s offices near Fort Lau- making threats. According to this account, Boulis told paid for the trip. He thought it was a Republican fund- August that federal prosecutors have told him Abramoff of intent to sell SunCruz for $145 million. A few weeks On June 9, DeLay’s office sent Boulis a flag that had Rudy declined to be interviewed for this article. Wagner stead to accept two promissory notes totaling $20 mil- derdale, Kidan moved into a $4,300-a-month luxury condo Kidan to stop, but Kidan instead repeated an insult. Bou- raising trip allowable under House rules. is a “target” of a federal grand jury investigation. later, though, Boulis demanded a host of unwelcome ad- flown over the U.S. Capitol, according to records kept by and her lawyers did not respond to calls for comment. lion just before the closing when Kidan had threatened to paid for by SunCruz and bought a 34-foot powerboat. He lis then punched Kidan. On Jan. 31, the Kidan-Boulis brawl hit the front page Sonnett told The Post he is confident Abramoff will be ditional terms, including a consulting deal. the architect of the Capitol’s office. The gift from De- A week after the Pebble Beach trip, on June 22, 2000, walk away from the deal because he thought the price quickly put his mark on the business, firing SunCruz em- The day of the fight, Wagner e-mailed Abramoff plead- of the Sun-Sentinel. Kidan told the newspaper that Boulis cleared, calling him a “victim” in the SunCruz case. Son- Suddenly, Boulis was being denounced in Congress. Lay’s office was issued six days after DeLay and his depu- Boulis entered into a formal agreement to sell SunCruz was too high. ployees including several of Boulis’s friends and relatives. ing with him to come to Florida to mediate. said: “I’m not going to sue you, I’m going to kill you. . . . nett said he could not discuss specifics, including the Michael Scanlon, a former DeLay spokesman Abra- ty chief of staff, Tony Rudy, returned from a golf trip to to Kidan and Abramoff. “I told Mr. Boulis we would not be closing the deal,” “We fired his friends, we fired his family and he wasn’t “The crisis at suncruz took on new meaning today This guy is violent — he’s sleazy.” wire transfer, because of the ongoing investigation. moff had just hired at Preston Gates, asked Ohio con- Scotland with Abramoff. Now the partners had to find financing for the deal. Kidan later said in a deposition. “He said under what happy with it,” Kidan later told the Sun-Sentinel in Fort with gb [Gus Boulis] and ak [Adam Kidan] getting phys- Abramoff has had little to say publicly about SunCruz. gressman Bob Ney to insert remarks into the Congres- DeLay spokesman Dan Allen said the congressman They turned to a specialty lender, Foothill Capital, a unit terms would I do it? And I told him I would do it if the Lauderdale. ical,” Wagner wrote. “Money is being wasted and lost A Federal Target In 2002, he did talk to the Washington Business Forward. sional Record that would put pressure on Boulis. did not remember Boulis. A DeLay aide said the office of Wells Fargo & Co. price was adjusted accordingly.” Kidan said that he found the ships were in disrepair and it shouldn’t continue. . . . I’m telling you that you “I was fortunate to get out of that financially better off “Mr. Speaker, how SunCruz Casinos and Gus Boulis handles many requests for flags. On the plus side for the would-be borrowers were Kidan later testified in a deposition there was nothing and that there were overdue bills. He refused to make his must address the issue asap. Your delay is only embold- Back in Washington, Abramoff was moving his lobby than when I entered it,” he said. “I was lucky it did not conduct themselves with regard to Florida laws is very Abramoff’s glowing press clippings, including a July 3 in writing about the change, but he said that he, Abra- loan payments to Boulis. ening Adam and he is really on the edge.” business and many of his clients, including his tribal ac- damage me. But it’s not something I would repeat.” unnerving,” Ney said in the March 30 Congressional A Trip to Pebble Beach story on the front page of the Wall Street Journal that de- moff and Boulis orally agreed to do it. “There was a dis- Boulis was incensed. In October 2000, he wrote letters Wagner wrote, “I liked Adam and thought I would be counts, from Preston Gates to Greenberg Traurig LLP. By then, Abramoff had already embarked on another Record. “I don’t want to see the actions of one bad apple scribed the millions he was bringing in to his lobbying cussion between myself and Mr. Boulis and Mr. Abra- to Kidan demanding payment, threatening to tell the working with all of you to build an empire to be proud of He also took at least 10 employees with him from Pres- enterprise — one that Sen. John McCain (R-Ariz.) would in Florida, or anywhere else . . . affect the business aspect Rudy, a George Mason Law School graduate who had firm. The article, which Kidan faxed to lenders, called moff, and then Mr. Boulis went off to Greece” to attend lenders and Abramoff that Kidan was reneging. and make us all alot of money too.” But now she said, “the ton Gates. At Greenberg, Abramoff made Tony Rudy his later brand a “truly extraordinary” example of “exploita- of this industry or hurt any innocent casino patron in our spent five years on DeLay’s staff in a variety of jobs, Abramoff Washington’s “GOP stalwart” because of his his father’s funeral, Kidan testified. Boulis left his sub- Two former SunCruz insiders say that Boulis’s trucu- only recourse” was for Abramoff to join with Boulis and first hire from Capitol Hill. tion and deceit.” During a three-year period, Abramoff country.” joined Abramoff and Kidan at another sumptuous sport- pull with Republican leaders such as DeLay, who praised ordinates to handle the closing. lence sent Abramoff and Kidan back to their friends on Waldman to vote Kidan out of SunCruz. Abramoff’s departure had been coming for months. and Scanlon took in $82 million in lobbying and public re- Ney said later he was “furious” at Scanlon for not fully ing event on June 15. The three flew on SunCruz’s jet out Abramoff for getting Indians to donate to Republicans. In effect, Kidan and Abramoff were allowed to buy Gus Capitol Hill. Scanlon, at the time a public relations con- A day later, Wagner pointedly noted that Boulis, as a His style had clashed with others at Preston Gates, who lations fees from six Indian tribes. informing him about SunCruz. Scanlon, for his part, said to the U.S. Open in Pebble Beach, Calif., along with Joan Abramoff provided Foothill Capital a financial state- Boulis’s gambling company without putting in a cent of sultant employed by SunCruz, once again asked Ney to lender to the Kidan group, could “veto certain activities believed he was moving too fast and being careless. Earli- “We need that moolah,” Abramoff e-mailed Scanlon on he had been given bad information about SunCruz and Wagner, Boulis’s chief financial officer, and her husband, ment stating his net worth as $13 million. He valued his equity. place comments in the Congressional Record. Two days and transactions,” thus canceling the takeover of Sun- er in the year, Manuel Rouvelas, the firm’s founding part- Jan. 16, 2002. “We have to hit $50M this year (our cut!).” regretted his request to Ney. said a former SunCruz insider who spoke on the condi- lobbying practice at $7.5 million and family business in- When Foothill Capital eventually sued to recover its after Boulis’s last letter, Ney did so. “I have come to learn Cruz. ner in Washington, had warned Abramoff, according to As the SunCruz negotiations warmed up again that tion of anonymity because of the ongoing investigation. terests at nearly $3 million, including a $1.4 million in- loans, one of its lawyers said it would never have lent the that SunCruz Casino now finds itself under new owner- Abramoff forwarded Wagner’s last e-mail to Kidan and people familiar with the exchange. Researcher Alice Crites and database editor Derek spring, Boulis found out that Abramoff and Kidan had an- Rudy did not report the trip in his House travel rec- vestment with his father in a company that owns parking $60 million if it had known about the secret promissory ship,” Ney stated in the record. Kidan’s “track record as a Waldman. In response, Kidan told Abramoff, “We need to “If you’re not careful,” Rouvelas told Abramoff, “you Willis contributed to this report.

Sept. 26 Dec. 13 Jan. 20 others, on chartered flight to Scotland, 2004 where some golf on the St. Andrews The SunCruz Players The Timeline Terms of SunCruz sale finalized at $147.5 Payments totaling $145,000 begin from George W. Bush sworn in as president. Feb. 20 million. Boulis retains 10 percent stake. SunCruz to Kidan’s associate, Anthony Kidan and Scanlon, a former DeLay aide course. SunCruz assets are auctioned by Abramoff and Kidan agree to put in $23 Moscatiello, and his daughter, for food and Abramoff associate who now is doing November Politicians Businessmen Consultant 2000 bankruptcy court for $35 million to a million cash; obtain a $60 million loan and beverage consulting and other work for SunCruz, attend an Inauguration U.S. attorney in Florida begins criminal group that includes Boulis’s nephew, February from Foothill Capital and another lender, services. Moscatiello has been identified Day reception in DeLay’s office. Rep. Tom DeLay (R-Tex., below) Rep. Robert W. Konstantinos Jack Abramoff inquiry of SunCruz sale, focusing on the Spiros Naos. On the eve of the SunCruz sale, Ney (R-Ohio) “Gus” Boulis The contro- Boulis enters serious negotiations to sell Citadel Equity Fund; and to owe balance by law enforcement as an associate of Jan. 28 missing $23 million. lobbyist Jack Abramoff brought Twice in 2000, The millionaire Greek to Boulis. the Gambino crime family. Feb. 22 versial lobbyist’s SunCruz Casinos to Abramoff and Kidan. SunCruz leases corporate jet to take his partner and his lead banker to Ney entered immigrant built an The Washington Post reports that lawyers say they SunCruz has 11 boats that run daily offshore Sept. 27 Capitol Hill staffers, including current a DeLay event at a Redskins game. comments 11-ship gambling Abramoff and Scanlon have received at have been told gambling cruises. Kidan and partner Waldman each fax to and former aides to DeLay and Sen. 2003 DeLay’s office also arranged for a about SunCruz fleet and sold it under their client is a least $45 million from Indian tribes that May lender a document showing that Kidan 2001 Conrad Burns (R-Mont.), to Super Bowl April 2 U.S. flag that had flown over the into the duress to Abramoff operate casinos. Days later, U.S. Sen. target of the wired the $23 million to Boulis’s bank. Tony Rudy goes to work with Abramoff in Tampa and for a night of gambling Capitol to be given to Gus Boulis, Congressional and his partners. He Abramoff, DeLay and Rudy are among those U.S. Court of Appeals throws out 2001 John McCain (R-Ariz.) launches an criminal bank The wire transfer later will be at the at Washington law firm Greenberg aboard SunCruz ship. seller of Florida casino ship Record, aiding died in a gangland- on 10-day trip to Britain and Scotland, which bankruptcy settlement between the investigation. In coming months, the FBI fraud investi- center of a criminal inquiry, when lenders Traurig. company SunCruz. Abramoff’s bid style slaying in 2001. includes golf at renowned St. Andrews course. Feb. 6 Boulis estate, Kidan and Abramoff, saying and other federal investigators form a gation into the allege that the document was forged and to buy and WALTER MICHOT — MIAMI HERALD MELINA MARA — THE WASHINGTON POST Florida deal. KEN SAWCHUK — NEWSDAY June 9 Jan. 19 Boulis shot and killed in a gangland-style it was full of conflicts of interest. task force and convene a grand jury to Tony Rudy (not shown) the deal fraudulent because no money operate the Boulis seeks injunction against Kidan that attack while driving from his office in May 30 examine the payments, as well as As deputy chief of staff for DeLay, DeLay’s office gives a U.S. flag that has flown changed hands. business. Ben Waldman (not shown) Michael Scanlon Anthony Moscatiello would require him to pay what he owes Fort Lauderdale. Abramoff’s and Scanlon’s contacts with Rudy took a ride on a SunCruz jet over the Capitol to Boulis. SunCruz lenders Foothill Capital and The third partner in the SunCruz deal was A former spokesman (above, in 1991) Oct. 26 Boulis and prevent him from operating lawmakers. to the U.S. Open golf tournament. March 15 Citadel Equity Fund sue to recover $60 a onetime Reagan White House aide and for DeLay, he was Kidan arranged for June 15 Ney praises Kidan in the Congressional the boats. Rudy was listed as a reference for million in loans to Kidan and Abramoff, March 2 West Virginia congressional candidate who hired by Abramoff Moscatiello — a long- SunCruz jet flies a group from D.C. to U.S. Record, saying “he will easily transform At fundraiser for Ney at MCI Center, Abramoff in documents submitted alleging that the buyers never put up the Abramoff leaves Greenberg Traurig. In had known Abramoff and Kidan since the and eventually began time acquaintance — Open at Pebble Beach in California. They SunCruz from a questionable enterprise Abramoff, Kidan and three other SunCruz to lenders financing the sale of 1980s. working on the and Moscatiello’s executives each contribute $1,000. cash they had promised to inject into the statement, firm says Abramoff “disclosed include Abramoff, Kidan, Rudy and SunCruz to an upstanding establishment.” deal. SunCruz. Later Rudy went to work Adam Kidan SunCruz matter. daughter to be paid executive Joan Wagner and her husband. A June 22 to the firm for the first time personal for Abramoff. DENNIS COOK — Dec. 5 ASSOCIATED Abramoff’s partner He served as $145,000 for food week later, Boulis agrees to sell SunCruz to Sept. 21 transactions and related conduct which PRESS middleman and beverage Boulis and Kidan come to blows at a SunCruz files for bankruptcy protection. are unacceptable to the firm.” in the SunCruz Abramoff and Kidan for $145 million. Within two weeks, Kidan, Abramoff and The Daily Town Talk newspaper in purchase had a between consulting. Kidan later business meeting. Kidan reneges on debt Alexandria, La., reports that an internal Aug. 16 Abramoff said he did not know Sept. 18 to Boulis, saying that Boulis hid problems Boulis estate reach settlement. Lenders string of lawsuits, audit by the Louisiana Coushatta tribe Abramoff lawyer Neal Sonnett confirms and Ney. Moscatiello had once SunCruz principals meet in New York to begin at SunCruz. Kidan says Boulis attacked later allege settlement aimed to conceal liens and judgments showed that the tribe had spent $18 in a Florida court pleading that his client been indicted in New closing the deal. That same night, Kidan and and threatened to kill him; he obtains the fraud in the sale of the company. against him. His million in one year on lobbyists and “is a target” of the criminal inquiry into GERALD HERBERT — York in a case his lead financier, Greg Walker of Foothill restraining order against Boulis. Abramoff Dial-a-Mattress ASSOCIATED PRESS lawyers, mostly to Scanlon and Abramoff. the SunCruz sale. RAY LUSTIG — involving Capital Corp., travel to D.C. to join DeLay and agrees with Kidan in subsequent e-mail 2002 THE WASHINGTON franchise in D.C. POST also was in members of Abramoff for a DeLay event in the lobbyist’s messages that Boulis should be removed August the Gambino box during a Redskins-Cowboys game. from SunCruz. WTVJ-TV bankruptcy court at Abramoff takes Ney and former Christian crime family. Gus Boulis was shot while driving his BMW the time. Coalition leader Ralph Reed, among TOM ALLEN — along a Fort Lauderdale street in 2001. THE WASHINGTON POST THE WASHINGTON POST ABCDE

Democracy Dies in Darkness SUNDAY, AUGUST 28, 2005 Abramoff Cited Aid Of Interior Official Conflict-of-Interest Probe Is Underway

By Susan Schmidt his firm, Greenberg Traurig LLP, to hire J. Washington Post Staff Writer Steven Griles, then deputy interior secre- tary. Federal investigators are interested in Indicted lobbyist Jack Abramoff those discussions and in job negotiations claimed in e-mails sent in 2002 that the Abramoff may have had with a second deputy secretary of the interior had pledged department official, according to sources. to block an Indian casino that would com- Abramoff told associates that he pete with one of the lobbyist’s tribal clients. believed Griles was “committed” to block- Abramoff later told two associates that he ing an effort by the Gun Lake Indian tribe was trying to hire the official. to build a casino near Grand Rapids, Mich., A federal task force investigating according to the content of e-mail mes- Abramoff’s activities has conducted inter- sages reviewed by The Washington Post. views and obtained documents from Inte- Abramoff said the blocking would involve rior Department officials and Abramoff an environmental challenge to the project, associates to determine whether conflict- a tactic also proposed by Michigan business of-interest laws were violated, according leaders opposed to the casino. Abramoff to people with knowledge of the probe. fought the project because it would draw It can be a federal crime for government business from a casino operated by his cli- officials to negotiate for a job while being ents, the Saginaw Chippewas. involved in decisions affecting the poten- Environmental concerns ended up tial employer. delaying action on the Gun Lake casino. The two former Abramoff associates, The project was cleared last May by the who spoke on the condition of anonym- Interior Department. ity because they are under scrutiny in the Gun Lake was not the only casino that investigation, said Abramoff told them in Abramoff tried to derail through his depart- late 2003 that he was trying to arrange for mental contacts. The Post has reported on SUNDAY, AUGUST 28, 2005 KLMNO PAGE 2

Abramoff Tried to Arrange Hiring Of Interior Aide, Ex-Associates Say e-mails indicating the lobbyist relations executive Michael Scan- enlisted Griles to stop a Louisi- lon were paid $82 million. Scan- ana tribe’s proposed casino, which lon, one of about a dozen congres- threatened another Abramoff cli- sional staffers who went to work ent. with Abramoff, had served as press Griles, who left the Interior spokesman for House Majority Department earlier this year to Then-Interior Leader Tom DeLay (R-Tex.). official J. Steven form a consulting firm, “said he Griles was cited The Justice Department task never had anything to do with the by Abramoff. force, which includes the FBI and Gun Lake casino issues,” a spokes- the IRS, is looking into Abramoff’s woman at his company said. He dealings with lawmakers and did not comment on any job discussions their staffs. Investigators from the Interior with Abramoff. A spokesman for Abramoff Department’s inspector general’s office, also declined to comment. Greenberg part of the task force, have been asking wit- Traurig, citing the ongoing investigation, nesses about the Gun Lake casino project, had no comment on possible job talks with according to people who have had contact department officials. with the investigators. In a separate case, Abramoff and a The task force also is examining business partner were indicted this month Abramoff’s relationships and influence on federal wire fraud and conspiracy with officials of the Bush administration, as charges in Florida. They are accused of pro- highlighted by the previously undisclosed viding lenders with a counterfeit financial Gun Lake e-mails. The e-mails show how document to consummate their purchase Abramoff relied on the president of a con- of a casino cruise line in 2000. Allegations servative group, Italia Federici, to inter- of fraud emerged after the seller was later cede with Griles, who was her friend. killed in a gangland-style hit. Copies of Abramoff’s e-mails referenc- The Washington probe, being con- ing Griles and Federici were obtained from ducted by the Justice Department’s fraud a variety of sources, including the Interior and public corruption unit, focuses on Department. Some e-mails involving Gun Abramoff’s lobbying work on Capitol Hill Lake were read to The Post by a person for Indian tribes for which he and public who declined to release them because of SUNDAY, AUGUST 28, 2005 KLMNO PAGE 3

BY CARLOS BARRIA — REUTERS Lobbyist Jack Abramoff was indicted Aug. 11 in Fort Lauderdale on wire fraud counts involving gambling boats. the federal probe. EIS, a much more detailed study. Department officials said the Gun On Dec. 4, 2002, Abramoff received Lake process was proper, adding that they an e-mail from Saginaw Chippewas tribal could not comment further because of the representative Chris Petras, who said that ongoing investigation into Abramoff’s con- Gun Lake’s proposal was moving for- tacts with Interior. ward rapidly. A public comment period on the tribe’s environmental assessment ‘The Way to Stop It’ was expected to be the last step before the The Gun Lake tribe, formally known Bureau of Indian Affairs — a part of the as the Match-E-Be-Nash-She-Wish Band Interior Department — cleared the way. of Pottawatomi Indians, in 2001 began That same day, Abramoff sent an seeking approval for a casino on 147 acres urgent e-mail to Federici, president of the near Grand Rapids. Council of Republicans for Environmental As part of its application, the tribe Advocacy. prepared an environmental assessment “This is a disaster in the making,” and was close to approval by the end of Abramoff wrote. “This is the casino we dis- 2002. The tribe was not asked to produce cussed with Steve and he said that it would an environmental impact statement, or not happen. It seems to be happening! The SUNDAY, AUGUST 28, 2005 KLMNO PAGE 4

way to stop it is for Interior to say they word from Griles on this?” are not satisfied with the environmental Abramoff wrote back: “I thought the impact report. Can you get him to stop this way to do this is to have them reject the one asap? They are moving fast. Thanks EIS, which I believe Griles has committed Italia. This is a direct assault on our guys, to do.” Saginaw Chippewa.” In the first half of 2003, the Gun Lake Federici posted a quick reply: “I will tribe remained under the impression that call him asap.” She met with Griles in his its application was about to be approved. office two days later, according to a copy of But in July of that year, the Department Griles’s schedule released under the Free- of Justice’s Indian law section raised con- dom of Information Act. Federici did not cerns about the project and sought to have respond to interview requests for this arti- the tribe prepare an environment impact cle. statement. Federici’s group, CREA, was founded Federal investigators are examining in the 1990s by conservative anti-tax activ- the circumstances that led the section to ist Grover Norquist and Gale Norton, now raise its objections, according to people secretary of the interior. It has received who have been interviewed in the probe. financial backing from chemical and min- Thomas L. Sansonetti, then the associ- ing interests, leading some environmen- ate attorney general overseeing the Indian talists to brand it a front for industrial law section, told Interior Department offi- polluters. Abramoff directed tribes he cials that his office did not want to take on represented to donate $225,000 to CREA the burden of defending the department if from 2001 to 2003. it was sued by Michigan opponents of Gun Days after he appealed to Federici for Lake on environmental grounds. help with Griles, Abramoff reassured the In an interview this month, Sanson- Saginaw Chippewas tribal representative. etti said that he wanted to have a strong “The meeting with Griles went well. We defense in the event of a lawsuit. He said have a lot to do but we’ll get there,” he told he was not moved by the Gun Lake tribe’s Petras in a Dec. 12, 2002, e-mail. offer to provide legal assistance for any Scanlon weighed in the following court case. week, suggesting technical roadblocks to Sansonetti said he first heard about stop the casino. “Hey, I think a real quick Gun Lake from the Interior Department’s way to blow this Gun Lake thing out of solicitor’s office. “I think there was a con- the water is to have BIA reject the land cern with the [environmental assessment] into trust, or lay some stipulation on their being sufficient all along,” he said. application that would buy us some time,” Sansonetti said he has attended events Scanlon wrote Abramoff on Dec. 16. “Any sponsored by Federici’s group. He said he SUNDAY, AUGUST 28, 2005 KLMNO PAGE 5

had no communication with Griles or that he “didn’t participate in any decision- Abramoff about Gun Lake and said he is making process regarding the Jena Band unaware of any investigation of the matter. and gaming.” He left the Justice Department this year to In April, the Interior Department join a Wyoming law firm. solicitor’s office dropped opposition to the Asked to comment on how his tribe’s Gun Lake tribe’s casino application. The application was handled, Gun Lake leader tribe subsequently received approval for its D.K. Sprague issued a statement complain- casino. ing of the cost of the delay in the casino A group of Grand Rapids business application and urging “a thorough inves- leaders, who had long argued that the tigation” by the Justice Department task casino would harm the city’s renewal plans force. “We have been denied our federal and should undergo a more extensive envi- rights, economic self-sufficiency, and jobs ronmental review, immediately sued the that will benefit our community,” he said. Interior Department. One of those involved in the legal Opponents Sue Interior action was Peter F. Secchia, a major GOP In addition to Gun Lake, in 2003 fundraiser who served as an ambassa- Abramoff and Griles were active in an dor for President George H.W. Bush. In effort to stop a casino proposed by the Jena December 2002, he told the Kalamazoo Band of Choctaws in Louisiana, rivals of Gazette that he was going all-out to block another Abramoff client. the casino, so much so that he spoke to Late in that year, Griles, who was presidential political adviser Karl Rove generally not involved in Indian issues, about it at a White House Christmas party presented Interior officials with a binder for donors. containing legal arguments and congres- “I talked to Rove, and he put me in sional letters opposing the Jena plan. touch with his guy in charge of this kind of Griles acknowledged to colleagues that the operation. I’m going to do my damnedest binder had probably been put together by on this one. This is really important to us,” Abramoff, according to one former senior Secchia told the Gazette that December. department official, who spoke on the con- In a recent interview, Secchia said dition of anonymity. he has spoken not only to Rove but also In March, The Post reported that to President George W. Bush and Vice Griles’s involvement in the Jena case led President Cheney about what he sees as to a clash with other Interior Department the negative impact of the proliferation of officials, including former legal counsel tribal casinos. Both men, he said, told him Michael G. Rossetti. A spokeswoman for it was a legislative issue. “Karl told me to Griles commented for that article, saying talk to [congressional] committee people,” SUNDAY, AUGUST 28, 2005 KLMNO PAGE 6

he said, and put him in touch with the He said he has never had contact with White House office of intergovernmental Abramoff, who is out on $2.25 million relations. bond and is to be arraigned next week in Secchia said he has not talked to offi- Miami in the casino fleet case. cials at Interior or Justice about Gun Lake. DAILY 08-28-05 VA M2 A1 CMYK

Nats Lose to Cardinals, but Keep Pace in Wild-Card Race SPORTS, E1

Weather Today: Mostly cloudy, showers. High 84. Low 72. VIRGINIA Monday: Mostly cloudy, EDITION showers. High 86. Low 72. Details, C12 ABCDE $1.50 Prices may vary in areas outside metropolitan 128th Year No. 266 M2 VA Sunday, August 28, 2005 M1 M2 M3 M4 V1 V2 V3 V4 Washington. (See box on A4) Abramoff Shiites Cited Aid Cut Off Of Interior Official Talks on Conflict-of-Interest Charter Probe Is Underway Iraqi Draft Fails By Susan Schmidt Washington Post Staff Writer To Win Support of

Indicted lobbyist Jack Abramoff All Sunni Delegates claimed in e-mails sent in 2002 that the deputy secretary of the interior By Ellen Knickmeyer had pledged to block an Indian casi- and Jonathan Finer no that would compete with one of Washington Post Foreign Service the lobbyist’s tribal clients. Abra- moff later told two associates that BAGHDAD, Aug. 28 — Iraqi Shi- he was trying to hire the official. ite Muslim leaders said early Sun- A federal task force investigating day that they were ending negotia- Abramoff’s activities has conducted tions on the country’s constitution interviews and obtained docu- after months of increasingly divi- ments from Interior Department of- sive talks and planned to put the ficials and Abramoff associates to draft before the National Assembly determine whether conflict-of-in- later in the day, senior officials in- terest laws were violated, accord- volved in the talks said. ing to people with knowledge of the PHOTOS BY MICHAEL ROBINSON-CHAVEZ — THE WASHINGTON POST Despite some compromises probe. It can be a federal crime for Calixto Salgado blows out his 14th-birthday candles. He is on the threshold of leaving childhood and making some tough choices for himself. made by Shiites at the urging of the government officials to negotiate Bush administration, the draft ap- for a job while being involved in de- pears not to have won the support cisions affecting the potential em- of at least some of the negotiators ployer. representing Iraq’s Sunni Arab mi- The two former Abramoff associ- nority. ates, who spoke on the condition of Calixto at a Crossroads “The chances of bringing Sunni anonymity because they are under By Darragh Johnson trusts his brother to tell him Arabs to the political process are al- scrutiny in the investigation, said Washington Post Staff Writer A 14-Year-Old Enters High School, things his parents cannot. most lost,” said Salih Mutlak, the Abramoff told them in late 2003 “The kid who wants to ruin most vocal and most publicly un- that he was trying to arrange for his This altar-boy act has got to go. Pulled Between Gangs and Dreams himself will ruin himself,” his fa- yielding of the Sunnis involved in firm, Greenberg Traurig LLP, to “High school’s the real deal,” ther says, his Spanish rolling. talks on the constitution. “The Sun- hire J. Steven Griles, then deputy the older brother warns. “People “But the kid who wants to be suc- ni Arabs will suffer a lot, unfortu- interior secretary. Federal investi- don’t come up to your face and cessful will be successful.” nately. Everybody in Iraq is going to gators are interested in those dis- ask, ‘You talkin’ about me?’ They Respectfully, Calixto nods, but suffer from this.” cussions and in job negotiations just beat the [expletive] out of later shakes his head. His parents Shiite leaders have said they ex- Abramoff may have had with a sec- you.” “don’t know how it is,” he wor- pect the Shiite- and Kurdish-con- ond department official, according Silently, Calixto Salgado lis- ries. Who is he going to be in high trolled National Assembly to rub- to sources. tens, his oversize South Pole tee school? Who is he going to make ber-stamp the draft. Assembly Abramoff told associates that he making him look even thinner proud — his brother? His par- approval would send it to a national believed Griles was “committed” to than he is. ents? Himself? vote, which must be held by Oct. blocking an effort by the Gun Lake “When you’re at Gaithersburg, Maybe he has a choice. 15. Indian tribe to build a casino near you gotta make people respect No, Ever tells him. The choice If the constitution passes the ref- Grand Rapids, Mich., according to you.” The brother slices his Eng- has already been made. erendum, a new, full-term assembly the content of e-mail messages re- lish tough. “Y’know what I’m say- would be elected by Dec. 15. But if viewed by The Washington Post. ing?” Calixto doesn’t answer. “If voters reject it, the December elec- Abramoff said the blocking would you walk around that school and On Monday, Calixto will enter tion would be for an assembly that you look like a little punk” — like Gaithersburg High — a red-brick, would serve just one year and would See ABRAMOFF, A6, Col. 1 a sweet, weak kid unarmed with 1950s-era school in a town that try again to frame an acceptable DAILY 08-28-05 MD RE A6 BLACK strut and glare — “they’re gonna Money magazine just named constitution — a process that, with come up and start messing with America’s 17th best place to live. Iraq’s already inflamed sectarian you.” But to many Latino parents in and ethnic tensions, would put Ever Salgado doesn’t explain Calixto comforts a resident at the nursing home where he volunteers. this community 10 miles north- great stress on the country’s fragile Analysis who “they” are. Calixto already west of the Beltway, Gaithersburg government-building effort. knows: the gangs. Ever has bat- ready to fight. tucks his fingers between his legs High is better known as the “gang The constitutional talks have A6 Sunday, August 28, 2005 R NATIONAL NEWS The Washington Post tled them at Gaithersburg High. Staring straight ahead, past the and the wooden chair. He hunch- factory.” played out as rifts grow within Iraqi Now it’s Calixto — deeply spiritu- family’s five rosaries and the Sal- es his shoulders toward his ears. It’s a school with 2,200 stu- society. After heavy fighting be- Roberts Is al Calixto, whose friends call him vadoran Virgen de la Paz hang- He does not want to hear this. Defined by “our priest” — who must be ing on the kitchen wall, Calixto But he fears Ever is right. He See CALIXTO, A12, Col. 1 See IRAQ, A19, Col. 1 Abramoff Tried to Arrange Hiring Of Interior Aide, Ex-Associates Say His Calm ABRAMOFF, From A1 according to a copy of Griles’s cerns about the project and sought School Is Symbol of Death for Haunted Children of Beslan schedule released under the Free- to have the tribe prepare an envi- Key to Nominee’s involve an environmental challenge dom of Information Act. Federici ronment impact statement. to the project, a tactic also pro- did not respond to interview re- Federal investigators are exam- Poise Is Preparation A Year After Siege, Russians Still Grapple With Dark Memories posed by Michigan business leaders quests for this article. ining the circumstances that led the opposed to the casino. Abramoff Federici’s group, CREA, was section to raise its objections, ac- By David Von Drehle By Peter Finn resulting in a bloody confrontation. the Russian republics of Chechnya and fought the project because it would founded in the 1990s by conserva- cording to people who have been in- Washington Post Staff Writer Washington Post Foreign Service Shrapnel from a grenade struck Sat- Ingushetia at the elementary school draw business from a casino operat- tive anti-tax activist Grover Nor- terviewed in the probe. sayeva in the head, neck and torso as ended in an inferno of explosions, gun- ed by his clients, the Saginaw Chip- quist and Gale Norton, now secre- Thomas L. Sansonetti, then the Under pressure, some people talk BESLAN, Russia — On Tamerlan she shielded Tamerlan and his two fire and flame, and has left a legacy of pewas. tary of the interior. It has received associate attorney general oversee- a bit faster, some talk a bit louder, Satsayev’s first day of school one year younger sisters. She suffered neurologi- shattered lives. An explosion in the Environmental concerns ended financial backing from chemical ing the Indian law section, told In- some get tongue-tied or sound irri- ago, he wore a new suit and a white cal damage and is now unable to walk; school gymnasium was followed by a se- up delaying action on the Gun Lake and mining interests, leading some terior Department officials that his tated. Supreme Court nominee John shirt and carried a bouquet of flowers. one of her legs shakes involuntarily; her ries of other blasts, triggering a chaotic casino. The project was cleared last environmentalists to brand it a office did not want to take on the G. Roberts Jr.’s voice changes not Two days later, he escaped death, al- left arm rests uselessly on her lap. firefight and a raging fire that left 331 May by the Interior Department. front for industrial polluters. Abra- burden of defending the depart- one whit. most naked, in the arms of an unknown “Look. This is my life,” she said bit- people dead, including 186 children. Gun Lake was not the only casino moff directed tribes he represented ment if it was sued by Michigan op- His genial tone comes through on rescuer, his mother severely wounded terly, recalling the attack. Her 7-year- The Mothers of Beslan, a local ad- that Abramoff tried to derail to donate $225,000 to CREA from ponents of Gun Lake on environ- tapes of his many oral arguments as in the debris behind him. old son, silent and watchful, started, vocacy group that keeps a roll of the through his departmental 2001 to 2003. mental grounds. a lawyer before the high court. Here, Tamerlan’s mother, Natasha Satsaye- and she paused to check her harsh tone. dead, said 22 6- and 7-year-olds, among contacts. The Post has re- Days after he appealed In an interview this month, San- va, 30, a former midwife, survived a She added softy, “I hope he can learn to nearly 90 first-graders, were killed in ported on e-mails indicat- to Federici for help with sonetti said that he wanted to have years of litigation and months of BY CARLOS BARRIA — REUTERS preparation come down to 30 min- month-long coma after terrorists seized live again.” BY PETER FINN — THE WASHINGTON POST ing the lobbyist enlisted Griles, Abramoff reas- a strong defense in the event of a utes of mental jujitsu with a con- Beslan School No. 1 on Sept. 1, 2004, A three-day siege by terrorists from See BESLAN, A22, Col. 1 Georgy Sidakov, 7, with his grandmothers, is afraid of school. Griles to stop a Louisiana sured the Saginaw Chip- lawsuit. He said he was not moved Lobbyist Jack Abramoff was indicted Aug. 11 in Fort Lauderdale on wire fraud counts involving gambling boats. stantly interrupting panel of conten- tribe’s proposed casino, pewas tribal representa- by the Gun Lake tribe’s offer to pro- tious justices. But Roberts greets which threatened another tive. “The meeting with vide legal assistance for any court benefit our community,” he said. Rossetti. A spokeswoman for Griles Christmas party for donors. every snappish interjection, every Abramoff client. Griles went well. We have case. commented for that article, saying “I talked to Rove, and he put me odd hypothetical question, every Griles, who left the In- a lot to do but we’ll get Sansonetti said he first heard Opponents Sue Interior that he “didn’t participate in any de- in touch with his guy in charge of hostile digression with the same un- INSIDE terior Department earlier there,” he told Petras in a about Gun Lake from the Interior cision-making process regarding this kind of operation. I’m going to hurried yet purposeful voice. DVDs and Fries: New Ways this year to form a con- Dec. 12, 2002, e-mail. Department’s solicitor’s office. “I In addition to Gun Lake, in 2003 the Jena Band and gaming.” do my damnedest on this one. This This unflappability will be tested sulting firm, “said he nev- Then-Interior Scanlon weighed in the think there was a concern with the Abramoff and Griles were active in In April, the Interior Department is really important to us,” Secchia again starting Sept. 6, when Roberts CDs, or Confusion er had anything to do official J. Steven following week, suggest- [environmental assessment] being an effort to stop a casino proposed solicitor’s office dropped opposi- told the Gazette that December. goes before the Senate Judiciary Music-buying choices and To Consume Technology with the Gun Lake casino Griles was cited ing technical roadblocks sufficient all along,” he said. by the Jena Band of Choctaws in tion to the Gun Lake tribe’s casino In a recent interview, Secchia Committee for a multiday confirma- technologies bring to mind issues,” a spokeswoman by Abramoff. to stop the casino. “Hey, I Sansonetti said he has attended Louisiana, rivals of another Abra- application. The tribe subsequently said he has spoken not only to Rove tion hearing. The session is sure to the old saying about By Ariana Eunjung Cha “The overall strategy is to build at his company said. He think a real quick way to events sponsored by Federici’s moff client. received approval for its casino. but also to President George W. feature hostile questions from Dem- computers: As soon as you Washington Post Staff Writer Starbucks into a destination,” said did not comment on any job dis- blow this Gun Lake thing out of the group. He said he had no communi- Late in that year, Griles, who was A group of Grand Rapids busi- Bush and Vice President Cheney ocratic senators worried about the take one out of the box, it’s Kenneth T. Lombard, president of cussions with Abramoff. A spokes- water is to have BIA reject the land cation with Griles or Abramoff generally not involved in Indian is- ness leaders, who had long argued about what he sees as the negative nominee’s views on civil rights, obsolete. BUSINESS, F1 SANTA MONICA, Calif. —Tech- Starbucks Entertainment, a division man for Abramoff also declined to into trust, or lay some stipulation about Gun Lake and said he is un- sues, presented Interior officials that the casino would harm the impact of the proliferation of tribal abortion, judicial ethics and the role nically, it’s still a coffeehouse. But on of Seattle-based Starbucks Corp. comment. Greenberg Traurig, cit- on their application that would buy aware of any investigation of the with a binder containing legal argu- city’s renewal plans and should un- casinos. Both men, he said, told of courts. His testimony before the KPMG in Court certain evenings, when the place fills Starbucks is among a growing ing the ongoing investigation, had us some time,” Scanlon wrote Abra- matter. He left the Justice Depart- ments and congressional letters op- dergo a more extensive environ- him it was a legislative issue. “Karl same committee two years ago, up with young adults gathered number of non-technology companies no comment on possible job talks moff on Dec. 16. “Any word from ment this year to join a Wyoming posing the Jena plan. Griles ac- mental review, immediately sued told me to talk to [congressional] when he was appointed to the feder- The accounting firm will around computer screens, this Star- that are out to transform the way with department officials. Griles on this?” law firm. knowledged to colleagues that the the Interior Department. committee people,” he said, and put al bench — and his years as one of admit to participating in a bucks outlet becomes more like a fu- Americans consume technology. In a separate case, Abramoff and Abramoff wrote back: “I thought Asked to comment on how his binder had probably been put to- One of those involved in the legal him in touch with the White House America’s most effective appellate broad criminal conspiracy turistic bar from a science fiction Customers of McDonald’s restau- a business partner were indicted the way to do this is to have them tribe’s application was handled, gether by Abramoff, according to action was Peter F. Secchia, a major office of intergovernmental rela- over tax shelters peddled movie. rants can now pick up a DVD rental this month on federal wire fraud reject the EIS, which I believe Gun Lake leader D.K. Sprague is- one former senior department offi- GOP fundraiser who served as an tions. See ANALYSIS, A10, Col. 1 to clients, sources say. Gaggles of girls sip lattes as they along with their Big Macs and fries at and conspiracy charges in Florida. Griles has committed to do.” sued a statement complaining of cial, who spoke on the condition of ambassador for President George Secchia said he has not talked to NATION, A8 pass around headphones at listening a growing number of locations. The They are accused of providing lend- In the first half of 2003, the Gun the cost of the delay in the casino anonymity. H.W. Bush. In December 2002, he officials at Interior or Justice about ers with a counterfeit financial doc- Lake tribe remained under the im- application and urging “a thorough In March, The Post reported that told the Kalamazoo Gazette that he Gun Lake. He said he has never had BY FRANCO BICIOCCHI stations stocked with 150,000 digital fast food chain also is testing a kiosk Memoirs of Music songs. Sweethearts sit knee-to-knee at its flagship store in Oak Brook, Ill., ument to consummate their pur- pression that its application was investigation” by the Justice De- Griles’s involvement in the Jena was going all-out to block the casi- contact with Abramoff, who is out chase of a casino cruise line in 2000. about to be approved. But in July of partment task force. “We have been case led to a clash with other Interi- no, so much so that he spoke to on $2.25 million bond and is to be Ancient Rome Comes Alive He got to see all the biggest on stools picking out their favorite that allows customers to download Contents tunes to burn on a CD. “Waiters” and ring tones for their cell phones and Allegations of fraud emerged after that year, the Department of Jus- denied our federal rights, economic or Department officials, including presidential political adviser Karl arraigned next week in Miami in  2005 In HBO’s new 12-part series, Caesar and Pompey may be the pop stars, but he was really the seller was later killed in a gang- tice’s Indian law section raised con- self-sufficiency, and jobs that will former legal counsel Michael G. Rove about it at a White House the casino fleet case. The “waitresses” on the other side of the print high-quality digital photos from Washington main characters, but its main strength is the realization of looking for the spirit of land-style hit. Post the city’s life. ARTS, N1 rock-and-roll. THE MAGAZINE counter stand ready to mix another their cameras. Grocery chains such as Company 7 caffeinated drink as well as to offer The Washington probe, being advice on the newest new band. See TECHNOLOGY, A14, Col. 1 conducted by the Justice Depart- ment’s fraud and public corruption unit, focuses on Abramoff’s lobby- ing work on Capitol Hill for Indian tribes for which he and public rela- tions executive Michael Scanlon were paid $82 million. Scanlon, one of about a dozen congressional staffers who went to work with Abramoff, had served as press spokesman for House Majority Leader Tom DeLay (R-Tex.). The Justice Department task force, which includes the FBI and the IRS, is looking into Abramoff’s dealings with lawmakers and their staffs. Investigators from the Interi- - Memorandum from John Roberts to The Attorney General (Dec. 11, 1981) or Department’s inspector gener- al’s office, part of the task force, have been asking witnesses about the Gun Lake casino project, ac- cording to people who have had contact with the investigators. The task force also is examining Abramoff’s relationships and influ- ence with officials of the Bush ad- ministration, as highlighted by the previously undisclosed Gun Lake e- mails. The e-mails show how Abra- moff relied on the president of a conservative group, Italia Federici, to intercede with Griles, who was her friend. Copies of Abramoff’s e-mails ref- erencing Griles and Federici were JOHN ROBERTS’ WORDS. obtained from a variety of sources, including the Interior Department. Some e-mails involving Gun Lake “So-called” is a troubling way for a Supreme were read to The Post by a person Court nominee to describe a fundamental who declined to release them be- cause of the federal probe. freedom Americans cherish. USA Today says Department officials said the Roberts’ “legal record raises questions on whether Gun Lake process was proper, add- ing that they could not comment he accepts [the] right to privacy” (Aug. 15, 2005). further because of the ongoing in- vestigation into Abramoff’s con- He also co-wrote a brief arguing that Roe v. Wade tacts with Interior. “should be overruled” (Brief for the Respondent at 13, ‘The Way to Stop It’ Rust v. Sullivan, 500 U.S. 173 (1991)).

The Gun Lake tribe, formally known as the Match-E-Be-Nash- Now the Bush administration is withholding important She-Wish Band of Pottawatomi In- dians, in 2001 began seeking ap- documents about Roberts’ legal argument against using a proval for a casino on 147 acres civil-rights law to protect women from blockades at clinics. near Grand Rapids. As part of its application, the tribe prepared an environmental as- We believe the Supreme Court Justice who will replace sessment and was close to approval by the end of 2002. The tribe was Sandra Day O’Connor must share her commitment to protecting not asked to produce an environ- mental impact statement, or EIS, a basic rights of privacy, equality, and choice. John Roberts’ record much more detailed study. falls short of this standard. On Dec. 4, 2002, Abramoff re- ceived an e-mail from Saginaw Chippewas tribal representative Chris Petras, who said that Gun Lake’s proposal was moving for- THERE’S JUST TOO MUCH AT STAKE TO LET JOHN ROBERTS ward rapidly. A public comment pe- riod on the tribe’s environmental BECOME A DECISIVE VOTE ON THE SUPREME COURT. assessment was expected to be the last step before the Bureau of Indi- an Affairs — a part of the Interior Department — cleared the way. That same day, Abramoff sent an urgent e-mail to Federici, president of the Council of Republicans for Environmental Advocacy. “This is a disaster in the mak- ing,” Abramoff wrote. “This is the casino we discussed with Steve and he said that it would not happen. It www.ProChoiceAmerica.org seems to be happening! The way to stop it is for Interior to say they are not satisfied with the environmen- tal impact report. Can you get him to stop this one asap? They are moving fast. Thanks Italia. This is a direct assault on our guys, Saginaw Chippewa.” Federici posted a quick reply: “I will call him asap.” She met with Griles in his office two days later, ABCDE

Democracy Dies in Darkness SUNDAY, OCTOBER 16, 2005 How a Lobbyist Stacked the Deck Abramoff Used DeLay Aide, Attacks On Allies to Defeat Anti-Gambling Bill

By Susan Schmidt Abramoff internal congressional commu- and James V. Grimaldi nications and advice, according to docu- Washington Post Staff Writers ments and the lobbyist’s former associates. Rudy received favors from Abramoff. Lobbyist Jack Abramoff and his team He went on two luxury trips with the lob- were beginning to panic. byist that summer, including one partly An anti-gambling bill had cleared the paid for by Abramoff’s client, eLottery Inc. Senate and appeared on its way to passage by an overwhelming margin Funding Attacks on Republicans in the House of Representatives. If A client of Jack Abramoff sent $150,000 to a firm associated with Ralph Reed as part of its effort to kill an anti-gambling bill. that happened, Abramoff’s client, a The money was used to attack GOP House members who backed company that wanted to sell state the bill. An e-mail exchange confirmed the check’s arrival. lottery tickets online, would be out From: Abramoff, Jack (DC) From: Ralph Reed Sent: Tuesday, August 29, Sent: Wednesday, August 30, of business. 2000 10:57 AM 2000 12:57 AM To: Ralph Reed To: ‘Abramoff, Jack (DC)’ But on July 17, 2000, the Inter- Subject: FW: Internet Gambling: Subject: RE: Internet Gambling: And so it continues And so it continues net Gambling Prohibition Act went Where are we? You got the 1. Yes, they got it. down to defeat, to the astonishment check, no? Are things moving? 2. Yes, all systems go. of supporters who included many anti-gambling groups and Christian conservatives. A senior aide to then-Majority Whip Tom DeLay (R-Tex.) helped scuttle the bill in the House. The aide, Tony C. Rudy, 39, e-mailed SUNDAY, OCTOBER 16, 2005 KLMNO PAGE 2

Abramoff also arranged for eLottery to pay Reed, former head of the Christian Coali- $25,000 to a Jewish foundation that hired tion, and the Rev. Louis P. Sheldon of the Rudy’s wife as a consultant, according to Traditional Values Coalition. Both kept documents and interviews. Months later, in close contact with Abramoff about the Rudy himself was hired as a lobbyist by arrangement, e-mails show. Abramoff Abramoff. also turned to prominent anti-tax con- The vote that day in July was just one servative Grover Norquist, arranging to part of an extraordinary yearlong effort by route some of eLottery’s money for Reed Abramoff on behalf of eLottery, a small through Norquist’s group, Americans for gambling services company based in Con- Tax Reform. necticut. Details of that campaign, recon- At one point, eLottery’s backers even structed from dozens of interviews as circulated a forged letter of support from well as from e-mails and financial records Florida Gov. Jeb Bush (R). obtained by The Washington Post, provide Rudy declined to comment for this the most complete account yet of how one report. A spokesman for Reed — now a of Washington’s most powerful lobbyists candidate for lieutenant governor of Geor- leveraged his client’s money to influence gia — said that he and his associates are Congress. unaware that any money they received The work Abramoff did for eLottery came from gambling activities. Sheldon is one focus of a wide-ranging federal cor- said that he could not remember receiving ruption investigation into his dealings with eLottery money and that he was unaware members of Congress and government that Abramoff was involved in the cam- agencies. Abramoff is under indictment in paign to defeat the bill. Norquist’s group another case in connection with an alleg- would say only that it had opposed the edly fraudulent Florida business deal. gambling ban on libertarian grounds. Abramoff had deep roots in the con- Abramoff’s lawyer declined requests servative movement and rose to promi- for a comment. nence by helping Republicans tap tradi- DeLay, an outspoken opponent of tionally Democratic K Street lobbyists for gambling, was an instrument, witting or campaign dollars. But in the eLottery fight, unwitting, in eLottery’s campaign, docu- he employed a win-at-any-cost strategy ments and interviews show. Along with that went so far as to launch direct-mail Rudy, he was a guest on a golfing trip to attacks on vulnerable House conservatives. Scotland. As majority whip, he cast a rare Abramoff quietly arranged for eLot- vote against his party on the Internet gam- tery to pay conservative, anti-gambling bling bill and for the rest of the year helped activists to help in the firm’s $2 million keep the measure off the floor. He told lead- pro-gambling campaign, including Ralph ership colleagues that another vote could SUNDAY, OCTOBER 16, 2005 KLMNO PAGE 3

cost Republican seats in the hard-fought spring of 2000, eLottery was desperate to 2000 elections. ramp up its Washington lobbying. It had to A statement from DeLay’s lawyer said sell off assets to stay afloat and raise cash. his votes “are based on sound public policy In May, eLottery hired Abramoff’s and principle.” firm, Preston Gates & Ellis LLP, for The Scotland trip is one aspect of the $100,000 a month, according to lobbying gambling matter being investigated by the reports. In the following months, Abramoff corruption task force. The trip took place directed the company to pay hundreds of more than five years ago, which ordinar- thousands of dollars to various organi- ily would be beyond the five-year statute of zations, faxes, e-mails and court records limitations on certain possible corruption show. The groups included Norquist’s charges. But legal sources say prosecutors Americans for Tax Reform; Sheldon’s Tra- have obtained a waiver of the time limit ditional Values Coalition; companies affili- because of the need to gather information ated with Reed; and a Seattle Orthodox abroad. Jewish foundation, Toward Tradition. Robert Daum, a former eLottery offi- Desperate Company cial, said he could not recall the names of Like many Internet companies emerg- the groups that received the payments but ing from the overheated 1990s, eLottery’s noted that all the money spent by the com- money was drying up in the spring of 2000. pany at Abramoff’s direction was for the The company was founded in 1993 on purpose of defeating the Internet bill. the gamble that even a small fraction of “We were willing to pursue all legiti- the market for helping states and others mate means to ensure that outcome, as put lotteries online could be worth a bil- people do all the time in Washington,” lion dollars a year. But the company faced Daum said. “Nothing more, nothing less.” many obstacles. Arrayed against eLottery were many In 1998, the Justice Department had leading groups on the religious right used existing gambling laws to force eLot- who were pushing to ban Internet gam- tery to shut down its first online lottery bling, including the Moral Majority and venture, with an Idaho Indian tribe. ELot- the Christian Coalition. James Dobson, tery had not earned a dime since. influential leader of Focus on the Family, The Senate had passed the Internet praised the bill in an opinion piece for the Gambling Prohibition Act in late 1999, New York Times. aiming to make it easier for authorities to Still, according to his strategy e-mails, stop online gambling sites. With a com- Abramoff thought he could turn conser- panion bill by Rep. Robert W. Goodlatte vatives in the House against the bill. He (R-Va.) advancing in the House in the seized on some compromise language in SUNDAY, OCTOBER 16, 2005 KLMNO PAGE 4

How Anti-Gambling Bill Was Defeated

Lobbyist Jack Abramoff had a big problem. His client, eLottery, eLottery to launch a campaign, including attacks on fellow KEY Kill Bill needed to kill legislation that would ban gambling on the conservatives. The effort persuaded GOP leaders to scuttle Internet. The bill had overwhelming support. With the help the bill for fear it could cost precious seats in the House. Money of a key House staffer, Abramoff used $2 million from client Here is how the money was used to make it happen: Money Influence ELOTTERY MONEY PHASE 1: KEEP BILL FROM PASSING HOUSE PHASE 2: KEEP BILL FROM SECOND HOUSE VOTE

See next page See next page for copy of this for e-mail about check these donations

$750,000 $25,000 $720,000 $25,000 $160,000 $25,000 $150,000 $55,000

Parry & Michael Scanlon National Center SunCruz Toward Tradition Americans for Traditional Donations to Romani Associate of for Public Policy Casinos Orthodox Jewish Tax Reform Values National Abramoff Research Gambling cruise group run by Conservative group run by Coalition Republican Symms & and former Conservative line acquired by Jack Abramoff Rabbi Daniel Lapin, Grover Norquist Conservative Congressional Haddow spokesman advocacy group. Abramoff Preston Gates & Ellis LLP friend of Abramoff. (Friend of advocacy group Committee of DeLay Abramoff is on the board in 2000 Lobbying and law firm Abramoff is on the board Abramoff) run by the Rev. Louis Cassidy & Sheldon Associates Hires Sponsors Sponsors Hires $150,000 (Teamed up with Information Sent to Abramoff to help kill the bill on prior issues) Scotland golf trip U.S. Open trip Shandwick May 25, 2000 June 15, 2000 Liberty Consulting Faith and Family Alliance Helps Worldwide Political consulting Virginia Beach conservative DeLay Abramoff Abramoff Owned by Cassidy Rudy Rudy firm registered to advocacy group Sponsors retain & Associates. DeLay Lisa Rudy, mailers that majority Hired to get a letter Tony Rudy’s wife $150,000 attack from Gov. Jeb Bush Super Bowl trip Sent conservative opposing the bill. January 2001, to House members after Abramoff Bush refused. hired Rudy as soft Matthew Blair Century Strategies on gambling American forged a letter. Rudy Tony Rudy Political consulting firm run Marketing DeLay’s deputy chief of staff by former Christian Direct mail Letter to rally Coalition head Ralph Reed firm associated opposition with Works for . . . Influences Ralph Reed

Tell leadership Vulnerable Mails attack Members Rallies enough GOP votes against bill SOURCE: Interviews, Lobbying GOP members e-mails, checks, of House about attacks fliers congressional votes, lobbying reports, trip reports, hearing transcripts, court REPORTING BY JAMES GRIMALDI, SUSAN SCHMIDT, DEREK WILLIS, GRAPHICS BY LAURA STANTON records and tax returns —THE WASHINGTON POST; TONY RUDY PHOTO BY INFLUENCE/LEGAL TIMES

Votes Tom DeLay No House Majority Whip

PHASE 1 Lacking a two-thirds The majority, Vote the bill JULY 17, 2000 fails.

= Dem. Yes= GOP No 245= Indep. 159

Advises to table legislation

+ 30 abstained

DeLay casts rare vote against his party. He has voted against Republicans only 6 percent of the time, according to an analysis of 7,138 votes since 1993. Most DeLay votes against the GOP tide have been for amendments, not for passage of bills. In that same period, the House passed 94 percent of all 1,410 bills on the suspension calendar.

PHASE 2 Attacks on GOP conservatives Bill persuade party leaders to table Dies legislation. SUNDAY, OCTOBER 16, 2005 KLMNO PAGE 5

the bill making exceptions for jai alai and “I have 3 checks from elot: (1) 2 checks horse racing. for $80K payable to ATR and (2) 1 check to Abramoff’s plan: argue that the legis- TVC for $25K,” Abramoff’s assistant Susan lation and its exemptions would actually Ralston e-mailed him on June 22, 2000. expand legalized gambling. “Let me know exactly what to do next. Send to Grover? Send to Rev. Lou?” Check in the Mail Minutes later Abramoff responded, To reach the House conservatives, saying that the check for Sheldon’s group Abramoff turned to Sheldon, leader of the should be sent directly to Sheldon, but that Orange County, Calif.-based Traditional the checks for Norquist required special Values Coalition, a politically potent group instructions: “Call Grover, tell him I am in that publicly opposed gambling and said Michigan and that I have two checks for it represented 43,000 churches. Abramoff him totaling 160 and need a check back for had teamed up with Sheldon before on Faith and Family for $150K.” issues affecting his clients. Because of their According to the e-mails, Reed pro- previous success, Abramoff called Sheldon vided the name and address where Norquist “Lucky Louie,” former associates said. was supposed to send the money: to Robin Checks and e-mails obtained by The Vanderwall at a location in Virginia Beach. Post show that Abramoff recruited Reed to Vanderwall was director of the Faith join Sheldon in the effort to pressure mem- and Family Alliance, a political advocacy bers of Congress. Reed had left the Chris- group that was founded by two of Reed’s tian Coalition in 1997 and started a politi- colleagues and then turned over to Vander- cal consulting firm in Georgia. wall, Vanderwall said and records show. Abramoff asked eLottery to write a Vanderwall, a former Regent Univer- check in June 2000 to Sheldon’s Tradi- sity Law School student and Republican tional Values Coalition (TVC). He also operative, was later convicted of solicit- routed eLottery money to a Reed company, ing sex with minors via the Internet and is using two intermediaries, which had the serving a seven-year term in Virginia state effect of obscuring the source. prison. The eLottery money went first to In a telephone interview, Vanderwall Norquist’s foundation, Americans for Tax said that in July 2000 he was called by Reform (ATR), and then through a second Reed’s firm, Century Strategies, alerting group in Virginia Beach called the Faith and him that he would be receiving a package. Family Alliance, before it reached Reed’s When it came, it contained a check pay- company, Century Strategies. Norquist’s able to Vanderwall’s group for $150,000 group retained a share of the money as it from Americans for Tax Reform, signed by passed through. Norquist. Vanderwall said he followed the SUNDAY, OCTOBER 16, 2005 KLMNO PAGE 6

instructions from Reed’s firm — deposit- DeLay has said that he thought the ing the money and then writing a check to National Center sponsored and paid for Reed’s firm for an identical amount. the trip. “I was operating as a shell,” Vanderwall A few weeks after the golfing trip, said, adding that he was never told how the Abramoff took Rudy to the U.S. Open in money was spent. He said: “I regret having Pebble Beach, Calif. They traveled aboard had anything to do with it.” a corporate jet belonging to SunCruz Casi- Abramoff had previously paid Reed’s nos, a Florida cruise line Abramoff was consulting firms to whip up Christian negotiating to buy, according to a partici- opposition to Indian casinos and a pro- pant who spoke on the condition of ano- posed Alabama state lottery that would nymity because of the ongoing investiga- compete with the gambling business of tion. Rudy did not report this trip in his Abramoff’s tribal clients, sometimes using House travel records. Norquist’s foundation as a pass-through, a Abramoff listed Rudy as a financial Senate investigation has found. reference that summer in the SunCruz A spokeswoman for Reed said Century purchase. That transaction ultimately Strategies had no business relationship led to the indictment two months ago with eLottery. She said Reed did anti-gam- of Abramoff and a business partner on bling work for Abramoff but was assured charges that they had forged a $23 million by Abramoff’s firm “that our activities wire transfer. would not be funded by revenues derived from gambling activities.” Working the Bill Norquist declined to be interviewed. In early June 2000, DeLay had not yet His spokesman did not answer questions taken a position on the Internet gambling about the movement of funds. ban. But his aide, Rudy, was already pro- Another check issued in 2000 by viding advice to Abramoff about how to kill eLottery at Abramoff’s direction wound it. up helping to fund the Scotland golfing Five days after Rudy and DeLay got trip attended by Rudy and DeLay. On May back from the Scotland trip, Rudy sent an 25, 2000, as the trip got underway, the emergency message to Abramoff from a company sent $25,000 to the National wireless device. Center for Public Policy Research, where “911 gaming,” Rudy typed on June 8. Abramoff was a board member at the time. He followed up with a suggestion that Along with money from another Abramoff Abramoff’s team get a conservative House client, that payment covered most of the caucus to seek a meeting with the cham- Scotland travel costs, according to records ber’s top leaders, Speaker J. Dennis Hast- and interviews. ert (R-Ill.) and Majority Leader Richard K. SUNDAY, OCTOBER 16, 2005 KLMNO PAGE 7

Abramoff’s Jack Abramoff directed eLottery money to charities and political friends. These e-mails between lobbyist Paper Trail Abramoff and his assistant, Susan Ralston, discuss some of those transactions.

From: Ralston, Susan (DC) From: Abramoff, Jack (DC) From: Ralston, Susan (DC) From: Abramoff, Jack (DC) From: Ralston, Susan (DC) From: Abramoff, Jack (DC) From: Ralston, Susan (DC) From: Abramoff, Jack (DC) Sent: Wednesday, June 07, 2000 Sent: Wednesday, June 07, 2000 Sent: Wed Jun 21 17:27:49 Sent: Wednesday, June 21, 2000 Sent: Thursday, June 22, 2000 Sent: Thursday, June 22, 2000 Sent: Thursday, June 22, Sent: Thursday, June 22, 7:49 PM 7:54 PM 2000 5:30 PM 10:45 AM 11:13 AM 2000 2:16 PM 2000 1:21 PM [CDT] To: Abramoff, Jack (DC) To: Ralston, Susan (DC) To: Abramoff, Jack (DC) To: Ralston, Susan (DC) To: Abramoff, Jack (DC) To: Ralston, Susan (DC) To: Abramoff, Jack (DC) To: Ralston, Susan (DC) Subject: Faith & Family Alliance Subject: Faith & Family Alliance Subject: RE: Faith & Family Subject: RE: Faith & Family Alliance Subject: RE: Faith & Family Alliance Subject: RE: Faith & Family Alliance Subject: RE: Faith & Family Subject: RE: Faith & Family Alliance Alliance Alliance Ralph [Reed] gave me this Thanks. We are going to get Prob receive 2morro fed ex I have 3 checks from elot: Copy all. Send TVC check to Lou. Call address: a check from elot to ATR What’s the status 2 checks for atr for $80k (1) 2 checks for $80K Grover, tell him I am in Michigan and Do you know if elot They do not want [Americans for Tax Reform] of this? Ralph was each. If no let me know. If payable to ATR and (2) 1 that I have two checks for him totaling wants credit for credit. Faith & Family Alliance and then a check from ATR checking. yes, I have to call grover check to TVC for $25K. Let 160 and need a check back for Faith and making a [Address redacted] to Faith and Family. We’ll [Norquist] first be4 u send me know exactly what to Family for $150K. If that is OK, send over contribution to ATR? Virginia Beach, VA 23464 get it from ATR and fed ex over to get atr checks for do next. Send to Grover? to him via courier. If you don’t get him Attn: Robin Vanderwall it from our office. Keep this faith and family Send to Rev. Lou [Sheldon]? or there are problems, try to get me on [Phone number redacted] address handy. Thanks. the cell constantly.

NOTE: All e-mail entries appear as typed, including abbreviations and capitalizations. THE WASHINGTON POST

Americans for Tax Reform Conservative group $160,000 run by Grover Norquist

Traditional Values Coalition Conservative advocacy $25,000 group run by the Rev. Louis Sheldon

COURTESY C-SPAN C-SPAN television captured the final moments of the defeat of legislation to ban Internet gambling. The vote, 245 yes to 159 no, required a two-thirds majority. Rep. Tom DeLay (R-Tex.) voted no in a rare vote against his party, which overwhelmingly backed the bill. Americans for Tax Reform Conservative group $160,000 run by Grover Norquist

Traditional Values Coalition Conservative advocacy $25,000 SUNDAY, OCTOBER 16, 2005 group run by the PAGE 8 Rev. LouisKLMNO Sheldon

COURTESY C-SPAN C-SPAN television captured the final moments of the defeat of legislation to ban Internet gambling. The vote, 245 yes to 159 no, required a two-thirds majority. Rep. Tom DeLay (R-Tex.) voted no in a rare vote against his party, which overwhelmingly backed the bill.

Armey (R-Tex.) — a key supporter of the Abramoff weighed in minutes later, bill. Abramoff forwarded the idea to his saying he would get Reed to ramp up team members. “Message from Tony Rudy. efforts. “I just chatted with Ralph. We are Don’t share it please. However we should going to have to go on the air nationally on take his advice.” radio. We must get the conservatives back Sheldon was also hard at work, hold- on this or we are doomed,” he told the team. ing news conferences and buttonholing Abramoff got another strategy e-mail House conservatives to argue against the the next morning from Rudy. Rudy was on bill. On July 10, he called Abramoff’s group DeLay’s staff but wrote “we” as though he saying he had run into resistance from the belonged to Abramoff’s team. “I think we staff of an influential member who still should get weyrich to get like 10 groups to favored the bill. sign a letter to denny and armey on gam- “Lou just called,” team member Shawn ing bill,” Rudy wrote, referring to Free Con- Vasell told colleagues in an e-mail. “We gress Foundation Chairman Paul M. Wey- need to get together and draft a response rich and the House leaders. for Lou.” Kevin Ring, Vasell’s associate, Sheldon got a private meeting with responded: “This is a disaster.” DeLay on July 13. “I told him I strongly SUNDAY, OCTOBER 16, 2005 KLMNO PAGE 9

The Check to the Charity This is the $25,000 check issued by eLottery, Abramoff's client, to Toward Tradition, which is run by a longtime friend. At the time, Abramoff was chairman of the board of Toward Tradition. The charity hired an Alexandria consulting firm registered to Lisa Rudy, wife of Tony Rudy, deputy chief of staff for Rep. Tom DeLay (R-Tex.). The charity denies there is a connection.

Toward Tradition Orthodox Jewish foundation run by Rabbi Daniel Lapin $25,000

opposed the bill,” Sheldon told Congressio- “While I am no fan of gambling, I see nal Quarterly at the time. this bill as a violation of states’ rights and I A former DeLay staff member who am looking to prevent this encroachment,” spoke on the condition of anonymity said, the letter said. “Lou was a credible face” because Sheldon’s A surprised Hill staffer called the religious credentials carried some weight Florida governor’s office, and the letter was with conservative voters. exposed as a forgery. DeLay then told House Republican Months later, a little-noted investiga- leaders that he was prepared to go against tion by Florida authorities resulted in a the anti-gambling bill. confession from a Tampa man hired by a division of Shandwick Worldwide, a public The Bush Forgery affairs company. Shandwick was working Still, the Abramoff team was wor- on the eLottery account with Abramoff’s ried about the vote. So the eLottery forces team. The Florida man, Matthew Blair, pressed the argument that the Internet bill told authorities in a plea bargain agree- was an unfair infringement of the right ment that he was hired to get letters oppos- of individual states to sell lottery tick- ing the bill from the governor and others. ets online. Amid the frenzied lobbying, a He said he created the forged letter on his potentially influential letter making that own after he was unable to obtain one from case began circulating on Capitol Hill. It Bush’s office. was purportedly signed by Jeb Bush. Brian Berger, then a Shandwick offi- SUNDAY, OCTOBER 16, 2005 KLMNO PAGE 10

cial, said his firm had been hired to produce tents. About 30 did not vote. “There was the letters by Abramoff associate Michael a lot of misinformation,” said a congressio- Scanlon, a former DeLay press aide. Berger nal staff member who worked on the bill. said in a recent interview that although he Still, Goodlatte had reason to be opti- and Scanlon knew Blair, they did not sanc- mistic because nine out of 10 bills on the tion the forgery. “Essentially, we had a bad suspension calendar pass. operative,” Berger said. But Abramoff’s efforts had eroded just But the letter still had an impact. enough votes. The roll call — 245 in favor, It fed the confusion about the bill in the 159 against — left Goodlatte 25 members days before the floor vote. Goodlatte, the short. The bill failed. sponsor, had more than enough votes for his carefully crafted compromise. Yet he ‘All Systems Go’ became worried that amendments might The eLottery team was euphoric. be introduced during the debate that could Abramoff lobbyist Patrick Pizzella, who kill the bill. was in the Capitol to watch the vote, wrote One way to avoid a floor fight is to in an e-mail to colleagues the next day that place a bill on the suspension calendar, he saw Sheldon celebrating the victory, too. which is supposed to be for non-controver- “There was lucky Louie out front hi-fiving sial legislation; it suspends the usual rules, with some lobbyists,” said Pizzella, who the banning amendments and limiting debate. following year was named an assistant sec- But doing so would require a two-thirds retary of labor. Others partied across from majority for passage. the Capitol at the restaurant Tortilla Coast. Goodlatte agreed to the suspension Supporters of the Internet gambling calendar approach because he thought he ban, though, were outraged. They vowed could get the two-thirds. “We were told [by to resurrect it, perhaps as part of an appro- House leaders] to bring it up on the sus- priations bill. pension calendar so you won’t have to deal The Christian Coalition issued an with all these amendments,” said a mem- “action alert.” Dobson took to the air- ber of Goodlatte’s staff who spoke on the waves, saying, “I’m just sick about what the condition of anonymity. Republican leadership is doing with regard That opening was exploited by the to gambling.” He urged listeners to contact Abramoff team with Rudy’s help — fewer DeLay and other House leaders to revive votes would be needed to stop the bill. the measure. On July 17, the House debated for Abramoff’s team realized there was about 40 minutes. Rumors continued to no way to win enough support for a sim- fly about the Bush letter. Some members ple majority because they were down more remained confused about the bill’s con- than two dozen votes. Instead, they had to SUNDAY, OCTOBER 16, 2005 KLMNO PAGE 11

persuade the leadership to keep the bill off moving?” the House floor, despite intense pressure Reed answered the next day: “1. Yes, from Goodlatte and another backer, Rep. they got it. 2. Yes, all systems go.” W.J. “Billy” Tauzin (R-La.). On July 21, DeLay’s legislative direc- Targeting ‘Our Guys’ tor, Kathryn Lehman, e-mailed Rudy: Weeks later, a political mailer from “Goodlatte and Tauzin asked Tom [DeLay] Sheldon’s group landed like a small bomb what they needed to do to get his vote, and in the North Alabama district of Rep. Rob- Tom said to talk to you!” ert Aderholt. Rudy immediately forwarded the The Republican was a member of the e-mail to Abramoff asking for help. religious right’s Values Action Team in Documents show that Abramoff’s Congress, a champion of public displays strategy was to dispatch Sheldon to pres- of the Ten Commandments and a vigorous sure about 10 social conservatives in their gambling opponent. But now, in the midst home districts, accusing them of being soft of a tough reelection race, Aderholt was on gambling for supporting Goodlatte’s accused of being soft on gambling. bill. Abramoff’s group hoped those mem- “Congressman Robert Aderholt voted bers would stir fears among House lead- with them in support of HR #3125 with ers that another vote on the gambling bill the law the gamblers want on horse and could threaten those members and thus dog racing,” said Sheldon’s mailer. Sheldon the GOP’s thin 13-seat majority. urged voters to call Aderholt’s Washington On Aug. 18, Abramoff faxed a message office “and ask him to vote NO this time.” to eLottery’s Daum ordering more money Aderholt’s opponent quickly incorporated for Reed’s activities. “I have chatted with Sheldon’s attack in an ad of his own. Ralph and we need to get the funding mov- The bulk rate stamp on the mailing ing on the effort in the 10 congressional said it was paid for by American Market- districts,” Abramoff wrote. “Please get me ing. Records show that the company is a check as soon as possible for $150,000 run by Robert Randolph, the president made payable to American Marketing Inc. of Reed’s direct-marketing subsidiary. A This is the company Ralph is using.” spokeswoman for Reed said that American ELottery issued the requested check Marketing is “a different company” and to American Marketing on Aug. 24 and that she could not respond to questions delivered it to Abramoff at Preston Gates. about it. Five days later, Abramoff e-mailed Reed. Sheldon’s fliers also targeted Rep. J.C. The subject, “Internet Gambling: And so Watts of Oklahoma, then the House GOP it continues.” The message asked, “Where deputy whip, and vulnerable incumbents, are we? You got the check, no? Are things including Rep. James E. Rogan of Califor- SUNDAY, OCTOBER 16, 2005 KLMNO PAGE 12

ELottery’s The Internet Gambling Prohibition Act threatened eLottery Inc.’s business plan, for about one-fifth of the company’s general and operating expenses in 2000, according and, as the bill advanced through Congress, the stock reacted to various legislative to a review of documents filed with the Securities and Exchange Commission, the Fall turns. The firm’s successful lobbying campaign cost about $2 million, which accounts Secretary of the Senate and U.S. Bankruptcy Court in New York.

Company Wins Expensive Campaign APRIL MAY JUNE JULY AUG. SEPT. OCT. . . . But Loses in the End To Defeat Internet Gambling Bill . . . April 5-6 May 17 June 2 July 11 Fall 2000 Supporters of bill work to get it House Judiciary Social conservatives Abramoff registers to Rudy e-mails Abramoff resurrected by adding it to spending bills What happened to the company: Committee amends including James lobby for eLottery. with advice. or bringing it up for a usual House vote. The company filed for bankruptcy $11 Stock price, daily closes act to also ban state Dobson, the Rev. Pat in October 2001. June 8 July 10 lottery ticket sales Robertson and the Aug. 24 Sept. 7 ELottery reported in the bankruptcy 10 Peak: $10.12 Rudy sends urgent Letter from Florida Gov. over the Web. Rev. Jerry Falwell ELottery writes ELottery gives owing money to many firms in the Jan. 21,2000 e-mail to Abramoff: Jeb Bush opposing the write lawmakers in $150,000 check to $25,000 in soft campaign, including Preston Gates 9 April 5: support of bill. “911 gaming.” bill circulates on Capitol American Marketing money to the $4.31 Hill. It is later exposed & Ellis, Americans for Tax Reform, June 15 Inc., a company National Republican Oct. 24: 8 May 25 to June 3 as forged. Toward Tradition, Traditional Values Abramoff takes Rudy goes to U.S. associated with Congressional Off the table Ralph Reed. Committee. Coalition and Shandwick public affairs. April 6: Majority Whip Tom Open in Pebble Beach July 17: The Vote GOP leadership 7 ELottery also sends ELottery emerged from bankruptcy $3.93 DeLay, DeLay’s as guest of Abramoff. Internet bill fails Mid-September tables the $25,000 to Seattle- as a private company in 2003. deputy chief of staff in House, falling The Rev. Louis legislation. 6 based Toward Tony Rudy and July 18: 25 votes short Sheldon launches $2.46 Tradition, which several aides on of the two-thirds direct mail By year end, eLottery nears bankruptcy 5 hires Liberty Jan. 4 golfing trip to majority needed campaign to Oct. 25: with only $5.7 million in the bank. Consulting, a firm $1.00 Executone Information Systems Inc., Scotland, paid for for passage under a pressure vulnerable Company officials continue to sell off 4 registered to Lisa parent of eLottery Inc., changes name partially by eLottery. July 17: parlimentary conservative assets, including executive life $1.87 Rudy, Tony Rudy’s Oct. 24: 3 to eLOT Inc., to change company focus maneuver. Republicans insurance policies, to stay afloat. wife. $0.96 to selling services to state lotteries. on the bill. 2 The stock price jumps. End of year: $0.50 Dec. 29, 2000 1

0 2000 JAN. FEB. MARCH APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. THE WASHINGTON POST SUNDAY, OCTOBER 16, 2005 KLMNO PAGE 13

nia, one of the managers of the impeach- that he recalled little about his efforts ment of President Bill Clinton, and Rep. against the bill in 2000. He said he did not Robin Hayes of North Carolina. remember receiving a $25,000 check from Angry House members targeted by eLottery, but added that it is possible that Sheldon complained to the leadership. his organization did receive it. He said he “Certainly our displeasure was relayed on remembered some money coming in to pay up the chain, so to speak,” said Andrew for fliers he had printed and mailed to con- Duke, the chief of staff for Hayes. gressional districts to persuade members Abramoff’s willingness to jeopardize to oppose the bill. Republican House seats startled his lob- “I wasn’t aware the money was com- bying team, some of whom had come from ing from them [eLottery],” Sheldon said. “I DeLay’s office. “Once we started talking don’t think I ever saw the check. It came in, about taking out our guys, I got worried,” and we paid the bill for some of the print- said a former associate of Abramoff’s who ing.” spoke on the condition of anonymity. Sheldon also said he had no idea that The same former Preston Gates lobby- Abramoff was lobbying against the bill or ist said Rudy played a key role in getting that he was working for eLottery. House leaders to pay attention to the plight “This is all tied to Jack?” Sheldon said. of members under attack. “I’m shocked out of my socks.” “Tony would say to members, ‘Oh, you’re getting phone calls on this? I bet- Chilling Effect ter go tell the whip.’ Lou Sheldon sending Rudy, who had known Abramoff for a letter is not going to do anything unless years, went to work for Abramoff when the you have somebody on the inside. Tony lobbyist switched law firms, to Greenberg exaggerated to leadership how backing the Traurig LLP, in January 2001. bill could hurt those members,” the former Rudy’s wife, Lisa, was also drawn Abramoff associate said. into Abramoff’s orbit. She was paid fees The outrage prompted Sheldon to by Toward Tradition, the Seattle-based back off in some of the races. In Aderholt’s Orthodox Jewish foundation that often district, he issued a letter praising the con- allies with the Christian right on social gressman and claiming that his previous issues. The foundation is headed by long- mailer had been mistakenly distributed. In time Abramoff friend Rabbi Daniel Lapin Rogan’s district, he stopped pressuring the and the lobbyist served as chairman of the incumbent and, instead, attacked his chal- board. lenger as “a champion of the homosexual Toward Tradition was issued a agenda.” $25,000 check dated Aug. 24, 2000, by Sheldon said in an interview this week eLottery. A copy of the check was obtained SUNDAY, OCTOBER 16, 2005 KLMNO PAGE 14

by The Post. Daum, the former eLottery 24, when House Republicans met to dis- official, said he could not remember the cuss their year-end strategy. check but said all funds Abramoff directed What happened at the meeting was him to spend were intended to defeat the relayed to Abramoff by a former associate, Internet gambling bill. David H. Safavian, who was then a lobbyist Lapin said in an interview that he for a coalition of online gambling compa- could not remember a check from eLot- nies and who this month was indicted for tery but that the company could have made allegedly lying to federal investigators in donations to his foundation. He said that the Abramoff probe. any such donation would have been sepa- DeLay, Safavian wrote in an e-mail, rate from his foundation’s hiring of Liberty “spoke up and noted that the bill could cost Consulting, a political firm founded and as many as four House seats. At that point, operated by Lisa Rudy. there was silence. Not even Rep. Dick “Lisa Rudy worked for us for six Armey (R-Texas) — our previous opponent months — six to nine months — to organize — said a word.” groundwork for a conference,” Lapin said. When Congress prepared to adjourn He said she was paid more than $25,000 in 2000 without revisiting the gambling but was unsure exactly how and when Lisa bill, Safavian was ecstatic. He sent his cli- Rudy was hired. Lapin said her work could ents an e-mail, which was posted on the have been for an interfaith conference held Web site of the Fantasy Sports Trade Asso- in Washington in mid-September 2000. ciation. That conference, which opened a few “Relax a bit,” Safavian wrote. “Policy weeks after the eLottery check was sent to beat politics once again. (Maybe the Amer- Toward Tradition, featured such speakers ican system isn’t really that bad.) The good as DeLay, Sheldon and Norquist. guys won.” Rudy declined to comment on the Toward Tradition contract and said that Researchers Alice Crites and Julie Tate contributed to this report. his wife was not available for a comment. A month after the interfaith confer- Thursday, October 20, 2005 ence, the gambling bill’s sponsors agitated CORRECTION: A front-page article Oct. 16 to get House leaders to let them attach the incorrectly identified a former Shandwick measure to an end-of-the-year spending public affairs official; his name is George bill. Burger. A chart with the article incorrectly But Sheldon’s campaign in conserva- stated that Shandwick was owned by Cas- tive districts had the desired chilling effect sidy & Associates in 2000. It should have on GOP leaders. That became clear on Oct. said Shandwick owned Cassidy. DAILY 10-16-05 VA M2 A1 CMYK

No. 1 USC Beats Notre Dame; U-Va. Upsets No. 4 FSU SPORTS, E1

Weather Today: Mostly sunny. High 70. Low 50. VIRGINIA Monday: Mostly sunny. EDITION High 72. Low 52. Details, C12 ABCDE $1.50 Prices may vary in areas outside metropolitan 128th Year No. 315 M2 VA Sunday, October 16, 2005 M1 M2 M3 M4 V1 V2 V3 V4 Washington. (See box on A4) In a Sunni Quarter, Sunni Turnout Is High A Day of Emotion In Vote on Iraqi Charter By Anthony Shadid scaled these walls,” he said, smiling. Washington Post Foreign Service On Saturday, the 73-year-old Mehdi fought what may be his last Attacks by Insurgents Largely Halt During Referendum BAGHDAD, Oct. 15 — Bald, his battle, in a time that he called the once-barreled chest now shriveled, most difficult in Iraq’s history. He By Ellen Knickmeyer and Omar Fekeiki country’s Shiite majority and ethnic Kurds, whose Hassan Mehdi Mohammed hobbled came to cast his ballot against a con- Washington Post Foreign Service political leaders drafted the proposed constitution, Saturday into the polling station, stitution he believes will divide his was described by officials as low. housed in a worn-out school in the country forever. BAGHDAD, Oct. 15 — Sunni Arab voters Turnout reached 93 percent in the heavily Sunni often-restive Sunni Arab neighbor- “I had to vote,” he said, “to prove turned out in force for Iraq’s constitutional refer- western city of Fallujah after clerics and others hood of Adhamiyah. His steel cane that we’re still one nation — Sunni endum Saturday as insurgents largely suspended went door-to-door telling residents it was safe to told his story: A veteran Arab na- and Shiite.” attacks, granting Sunnis a chance to try to defeat venture out of their homes, election officials said. tionalist and activist, his left leg was Saturday was a day of anger and the U.S.-backed charter and giving much of the But in some other western cities, fear crushed shattered by gunfire more than 40 desperation, regret and occasionally country a rare day of peace that belied the deep the potential that had been suggested by heavy years ago in a protest against one in hope in Adhamiyah, a quarter of fractures exposed by the vote. Sunni voter registration. In Ramadi, election day a long line of Iraqi dictators. For a Baghdad whose very name has be- BY MOHANNED FAISAL — REUTERS Voting en masse for the first time since the over- opened with automatic-weapons fire around at moment, he cast his glance at the come synonymous with Sunni Mus- An Iraqi raises his inked finger after casting throw of Saddam Hussein, Sunni Arabs cast ballots least one polling site. There were sporadic explo- two-story building around him. his ballot in the constitutional referendum in in large numbers, according to electoral officials “When I was young, I could have See ADHAMIYAH, A21, Col. 1 the Sunni-dominated town of Fallujah. and witnesses. Turnout in areas populated by the See IRAQ, A20, Col. 3 How a Lobbyist Stacked the Deck Abramoff Used DeLay Aide, Attacks On Allies to Defeat Anti-Gambling Bill

By Susan Schmidt associates. and James V. Grimaldi Rudy received favors from Washington Post Staff Writers Abramoff. He went on two luxu- ry trips with the lobbyist that Lobbyist Jack Abramoff and summer, including one partly his team were beginning to pan- paid for by Abramoff’s client, ic. eLottery Inc. Abramoff also ar- An anti-gambling bill had ranged for eLottery to pay cleared the Senate and appeared $25,000 to a Jewish foundation on its way to passage by an over- that hired Rudy’s wife as a con- whelming margin in the House sultant, according to documents of Representatives. If that hap- and interviews. Months later, pened, Abramoff’s client, a com- Rudy himself was hired as a lob- pany that wanted to sell state lot- byist by Abramoff. tery tickets online, would be out The vote that day in July was of business. just one part of an extraordinary But on July 17, 2000, the yearlong effort by Abramoff on Internet Gambling Prohibition behalf of eLottery, a small gam- Act went down to defeat, to the bling services company based in astonishment of supporters who Connecticut. Details of that included many anti-gambling campaign, reconstructed from groups and Christian conserva- dozens of interviews as well as tives. from e-mails and financial rec- A senior aide to then-Majority ords obtained by The Washing- Whip Tom DeLay (R-Tex.) ton Post, provide the most com- helped scuttle the bill in the plete account yet of how one of House. The aide, Tony C. Rudy, Washington’s most powerful lob- BY RICKY CARIOTI — THE WASHINGTON POST 39, e-mailed Abramoff internal byists leveraged his client’s Brother Amari of Greensboro, N.C., waves a Black Liberation flag as he and friends, including Orrin Bynes, left, celebrate at the Millions More Movement event. congressional communications money to influence Congress. and advice, according to docu- ments and the lobbyist’s former See ELOTTERY, A10, Col. 1 A Decade Later, Marchers Look for More Funding Attacks on Republicans A client of Jack Abramoff sent $150,000 to a firm associated Thousands of Blacks Gather on the Mall to Show Unity — and Seek New Inspiration with Ralph Reed as part of its effort to kill an anti-gambling bill. The money was used to attack GOP House members who backed By Robert E. Pierre that landed him in prison for robbery and mur- borhood before he began knocking on the win- the bill. An e-mail exchange confirmed the check’s arrival. and Hamil R. Harris der. “I came here to see what other groups are dows of their clients, catching them in the act. Washington Post Staff Writers doing,” said Malik, a car salesman who fin- He got the inspiration to do so from the Mil- From: Abramoff, Jack (DC) From: Ralph Reed ished serving his term right after the Million lion Man March, becoming “an army of one,” Sent: Tuesday, August 29, Sent: Wednesday, August 30, This time, a decade later, the people came Man March in 1995. “I need to take something he said. Now, “It’s time for things to come to- 2000 10:57 AM 2000 12:57 AM not just to make a statement, but to look for a back home.” gether,” said Allen, saying he wanted less talk To: Ralph Reed To: ‘Abramoff, Jack (DC)’ Subject: FW: Internet Gambling: Subject: RE: Internet Gambling: little inspiration and guidance. The Rev. George Allen Jr. of Charlotte came and more action. And so it continues And so it continues Aquil Malik brought a handful of teenagers to yesterday’s event, known as the Millions On the Mall for the anniversary of the Mil- Where are we? You got the 1. Yes, they got it. from Newark, N.J., where he is trying to keep More Movement, looking for a recharge. He check, no? Are things moving? 2. Yes, all systems go. them from descending into the life of violence said prostitutes nearly took over his neigh- See MILLIONS, A16, Col. 1 K Gay groups accuse march leaders of exclusion. | A16 K Commemoration blends political, festival elements. | A17

INSIDE In Anne Arundel, a Backyard Circus DAILY 10-16-05 MD M2 A10 AnnualCMYK Dining Guide DAILY 10-16-05 MD M2 A11 CMYK Whether you’re in the mood for Davidsonville’s Pastrana romance, a bargain, a party, dinner and a show, or quality Brings the X Games Home time out with the kids, food critic Tom Sietsema has a restaurant By Eli Saslow A10 Sunday, October 16, 2005 M2 NATIONAL NEWSReporter Says Libby Told Thefor Washington you. THE MAGAZINE Post WashingtonThe WashingtonPost Staff Writer Post NATIONAL NEWS M2 Sunday, October 16, 2005 A11 White Sox, Astros Win ravis Pastrana had driven the car only once or Her About CIA Operative twice before, and now the extreme sports legend Chicago beats Los Angeles, 8-2, Abramoff’swanted to take his brand new Subaru WRX Im- for 3-1 AL series lead. Houston preza for a quick test drive. He pulled the car from Times’ Miller Cites More Than One Instance defeats St. Louis, 4-3, for 2-1 NL theT driveway of his Davidsonville mansion and steered it How Anti-Gambling Bill Was Defeated Jack Abramoff directed eLottery money to charities and political friends. These e-mails between lobbyist By Howard Kurtz naling her that she should not co- series lead. SPORTS, E1 down a Papersteep hill leading Trail to his 20-acre property.Abramoff and his assistant, Susan Ralston, discuss some of those transactions. Washington Post Staff Writer operate in the CIA leak investiga- He pushed the pedal to the floor, and the car revved to Lobbyist Jack Abramoff had a big problem. His client, eLottery, eLottery to launch a campaign, includingtion attacks unless on herfellow accountKEY would Stadium Site Backed 30 mph . . . 40 mph . . . 50 mph, its wheels screeching Vice President Cheney’s chief of clear him. around a tight curve. Pastrana kept his foot on the acceler- Kill Bill needed to kill legislation that would ban gambling on the conservatives. The effort persuaded GOP leaders to scuttle As the D.C. Council prepares to From: Ralston, Susan (DC) From: Abramoff, Jack (DC) From: Ralston, Susan (DC) From: Abramoff, Jack (DC) From: Ralston, Susan (DC) From: Abramoff, Jack (DC) From: Ralston, Susan (DC) From: Abramoff, Jack (DC) staff discussed with New York Miller said her lawyer FloydMoney ator untilSent: the Wednesday, car came June 07, within 2000 50 yardsSent: Wednesday, of a large June shed.07, 2000 Sent: Wed Jun 21 17:27:49 Sent: Wednesday, June 21, 2000 Sent: Thursday, June 22, 2000 Sent: Thursday, June 22, 2000 Sent: Thursday, June 22, Sent: Thursday, June 22, Internet. The bill had overwhelming support. With the help the bill forTimes fear correspondent it could cost Judith precious Mill- seatsAbrams in the toldHouse. her that Libby’s at- debate financing, Chairman Then he7:49 jerked PM up the emergency break,7:54 PM hurling the car 2000 5:30 PM 10:45 AM 11:13 AM 2000 2:16 PM 2000 1:21 PM [CDT] Money of a key House staffer, Abramoff used $2 million from client Here is hower the the fact money that the was wife used of a Whiteto make torney,it happen: Joseph A. Tate, had relat- Linda Cropp says she stands by into a 300-degreeTo: Abramoff, Jacktailspin (DC) and a suddenTo: Ralston,stop. Susan (DC) To: Abramoff, Jack (DC) To: Ralston, Susan (DC) To: Abramoff, Jack (DC) To: Ralston, Susan (DC) To: Abramoff, Jack (DC) To: Ralston, Susan (DC) Influencethe Anacostia site. METRO, C1 Subject: Faith & Family Alliance Subject: Faith & Family Alliance Subject: RE: Faith & Family Subject: RE: Faith & Family Alliance Subject: RE: Faith & Family Alliance Subject: RE: Faith & Family Alliance Subject: RE: Faith & Family Subject: RE: Faith & Family House critic worked for the CIA ed part of Libby’s grand jury testi- “Not bad,” Pastrana said as he climbed out of the car, Alliance Alliance Alliance on as many as three occasions be- mony and was “pressing about “but I shouldRalph [Reed] have been gave goingme this faster.”Thanks. We are going to get Prob receive 2morro fed ex I have 3 checks from elot: Copy all. Send TVC check to Lou. Call ELOTTERY fore theMONEY woman, Valerie Plame, what you would say. When I The Nanny Track Pastranaaddress: has long lived in defiancea check of fear from and elot inhibi- to ATR What’s the status 2 checks for atr for $80k (1) 2 checks for $80K Grover, tell him I am in Michigan and Do you know if elot They do not want was publicly identified, according wouldn’t give him an assurance tion, and that lifestyle has simultaneously[Americans built him for Tax up Reform]and of this? Ralph was each. If no let me know. If that I have two checks for him totaling wants credit for credit. The new cohort of au pairs is payable to ATR and (2) 1 to a Times account published to- that you would exonerate Libby, if broken him down. At 22, he is consideredand then aperhaps check from the ATR checking. yes, I have to call grover 160 and need a check back for Faith and making a arriving fresh from Europe and Faith & Family Alliance check to TVC for $25K. Let PHASE 1: KEEP BILL FROM PASSING HOUSE day. PHASE 2: KEEP BILLyou FROM were to SECOND cooperate, HOUSE he then VOTE im- greatest motorcycle rider ever. Histo fearlessness Faith and Family. has We’llal- [Norquist] first be4 u send Family for $150K. If that is OK, send over contribution to ATR? ready to experience America, if [Address redacted] me know exactly what to During one of the 2003 con- mediately gave me this, ‘Don’t go lowed him to draw a seven-figure salary,get liveit from in a ATR house and fea- fed ex over to get atr checks for to him via courier. If you don’t get him not its children. Virginia Beach, VA 23464 do next. Send to Grover? versations with I. Lewis “Scooter” there, or, we don’t want you tured onAttn: “MTV Robin Cribs” Vanderwall and enjoy moreit from than our office.two dozen Keep this faith and family Send to Rev. Lou [Sheldon]? or there are problems, try to get me on See next page See next page STYLE, D1 Libby, Miller said, she wrote a there.’ ” sponsors[Phone willing number to rewardredacted] him foraddress almost handy. any Thanks.death- the cell constantly. version of Plame’sfor copy ofname this in her Tate stronglyfor denied e-mail about such a con- defying stunt. He helped push extreme sports and their check these donations notebook. versation in an e-mail to the premierNOTE: event, All e-mail the entries X appearGames, as typed, into including the lucrativeabbreviations main- and capitalizations. THE WASHINGTON POST Contents In a disclosure that could figure Times, calling the account “outra-  2005 stream of American popular culture during the last dec- in special prosecutor Patrick J. geous” and insisting that “I never The ade. BY JONATHAN NEWTON — THE WASHINGTON POST Washington Americans Fitzgerald’s investigation, Miller once suggested that she should Post But his audacity also has caused 18 serious concus- “It’s crazy, but the most exciting stuff happens said she initially refused to testify not testify. It was just the oppo- 7 sions, more than 50 broken bones and 11 knee surgeries. when you turn off your brain and forget about for Tax Reform as a forgery. two dozen votes. Instead, they had to per- Conservative group $160,000 don’t think I ever saw the check. It came in, about her discussions with Libby Months later, a little-noted investigation suade thefear,” leadership says Travis to keep Pastrana, the bill 22, off shown the on a and we paid the bill for some of the print- because she believed he was sig- See REPORTER, A12, Col. 1 See PASTRANA, A18, Col. 1 typical day in his back yard. run by by Florida authorities resulted in a confes- House floor, despite intense pressure from Grover Norquist ing.” sion from a Tampa man hired by a division of Goodlatte and another backer, Rep. W.J. Sheldon also said he had no idea that Shandwick Worldwide, a public affairs com- “Billy” Tauzin (R-La.). Abramoff was lobbying against the bill or $750,000 $25,000 $720,000 $25,000 $160,000 $25,000 $150,000 $55,000 pany. Shandwick was working on the eLot- On July 21, DeLay’s legislative director, that he was working for eLottery. tery account with Abramoff’s team. The Kathryn Lehman, e-mailed Rudy: “Good- “This is all tied to Jack?” Sheldon said. Florida man, Matthew Blair, told authorities latte and Tauzin asked Tom [DeLay] what Traditional Values “I’m shocked out of my socks.” in a plea bargain agreement that he was they needed to do to get his vote, and Tom Coalition hired to get letters opposing the bill from the said to talk to you!” Conservative advocacy $25,000 Chilling Effect governor and others. He said he created the Rudy immediately forwarded the e-mail group run by the forged letter on his own after he was unable to Abramoff asking for help. Rev. Louis Sheldon Rudy, who had known Abramoff for years, Parry & Michael Scanlon National Center SunCruz Toward Tradition Americans for Traditional Donations to to obtain one from Bush’s office. Documents show that Abramoff’s strate- went to work for Abramoff when the lobby- Romani Associate of for Public Policy Casinos Orthodox Jewish Tax Reform Values National Brian Berger, then a Shandwick official, gy was to dispatch Sheldon to pressure ist switched law firms, to Greenberg Traurig Abramoff Research Gambling cruise group run by Conservative group run by Coalition Republican said his firm had been hired to produce the about 10 social conservatives in their home LLP, in January 2001. Symms & and former Conservative line acquired by Jack Abramoff Rabbi Daniel Lapin, Grover Norquist Conservative Congressional letters by Abramoff associate Michael Scan- districts, accusing them of being soft on Rudy’s wife, Lisa, was also drawn into Haddow spokesman advocacy group. Abramoff Preston Gates & Ellis LLP friend of Abramoff. (Friend of advocacy group Committee lon, a former DeLay press aide. Berger said gambling for supporting Goodlatte’s bill. Abramoff’s orbit. She was paid fees by of DeLay Abramoff is on the board in 2000 Lobbying and law firm Abramoff is on the board Abramoff) run by the in a recent interview that although he and Abramoff’s group hoped those members Toward Tradition, the Seattle-based Ortho- Rev. Louis Scanlon knew Blair, they did not sanction would stir fears among House leaders that dox Jewish foundation that often allies with Cassidy & Sheldon the forgery. “Essentially, we had a bad opera- another vote on the gambling bill could the Christian right on social issues. The Associates Hires Sponsors Sponsors Hires $150,000 (Teamed up with tive,” Berger said. threaten those members and thus the GOP’s foundation is headed by longtime Abramoff Information Sent to Abramoff But the letter still had an impact. It fed the thin 13-seat majority. friend Rabbi Daniel Lapin and the lobbyist to help kill the bill on prior issues) confusion about the bill in the days before On Aug. 18, Abramoff faxed a message to served as chairman of the board. Scotland golf trip U.S. Open trip the floor vote. Goodlatte, the sponsor, had eLottery’s Daum ordering more money for Toward Tradition was issued a $25,000 Shandwick May 25, 2000 June 15, 2000 Liberty Consulting Faith and Family Alliance Helps Worldwide Political consulting Virginia Beach conservative DeLay more than enough votes for his carefully Reed’s activities. “I have chatted with Ralph check dated Aug. 24, 2000, by eLottery. A Owned by Cassidy Abramoff Abramoff firm registered to advocacy group Sponsors retain crafted compromise. Yet he became worried and we need to get the funding moving on copy of the check was obtained by The Post. Rudy Rudy that amendments might be introduced dur- the effort in the 10 congressional districts,” Daum, the former eLottery official, said he & Associates. DeLay Lisa Rudy, mailers that majority Hired to get a letter Tony Rudy’s wife attack ing the debate that could kill the bill. Abramoff wrote. “Please get me a check as could not remember the check but said all $150,000 One way to avoid a floor fight is to place a soon as possible for $150,000 made payable funds Abramoff directed him to spend were from Gov. Jeb Bush Super Bowl trip Sent conservative opposing the bill. January 2001, to House members bill on the suspension calendar, which is sup- to American Marketing Inc. This is the com- intended to defeat the Internet gambling bill. after Abramoff posed to be for non-controversial legislation; pany Ralph is using.” Lapin said in an interview that he could Bush refused. hired Rudy as soft Matthew Blair Century Strategies on gambling American it suspends the usual rules, banning amend- ELottery issued the requested check to not remember a check from eLottery but Rudy ments and limiting debate. But doing so American Marketing on Aug. 24 and deliv- that the company could have made dona- forged a letter. Tony Rudy Political consulting firm run Marketing by former Christian Direct mail would require a two-thirds majority for pas- ered it to Abramoff at Preston Gates. Five tions to his foundation. He said that any DeLay’s deputy chief of staff sage. days later, Abramoff e-mailed Reed. The sub- such donation would have been separate Letter to rally Coalition head Ralph Reed firm associated with Goodlatte agreed to the suspension calen- ject, “Internet Gambling: And so it contin- from his foundation’s hiring of Liberty Con- opposition dar approach because he thought he could ues.” The message asked, “Where are we? sulting, a political firm founded and operat- Works for . . . Influences Ralph Reed get the two-thirds. “We were told [by House You got the check, no? Are things moving?” ed by Lisa Rudy. leaders] to bring it up on the suspension cal- Reed answered the next day: “1. Yes, they “Lisa Rudy worked for us for six months endar so you won’t have to deal with all got it. 2. Yes, all systems go.” — six to nine months — to organize ground- Tell leadership Vulnerable Mails attack these amendments,” said a member of Good- COURTESY C-SPAN work for a conference,” Lapin said. He said Lobbying Members Rallies enough GOP votes against bill SOURCE: Interviews, about attacks GOP members fliers latte’s staff who spoke on the condition of an- Targeting ‘Our Guys’ she was paid more than $25,000 but was un- e-mails, checks, of House C-SPAN television captured the final moments of the defeat of legislation to ban Internet congressional votes, onymity. gambling. The vote, 245 yes to 159 no, required a two-thirds majority. Rep. Tom DeLay sure exactly how and when Lisa Rudy was lobbying reports, trip reports, That opening was exploited by the Abra- Weeks later, a political mailer from Shel- hired. Lapin said her work could have been hearing transcripts, court REPORTING BY JAMES GRIMALDI, SUSAN SCHMIDT, DEREK WILLIS, GRAPHICS BY LAURA STANTON (R-Tex.) voted no in a rare vote against his party, which overwhelmingly backed the bill. records and tax returns —THE WASHINGTON POST; TONY RUDY PHOTO BY INFLUENCE/LEGAL TIMES moff team with Rudy’s help — fewer votes don’s group landed like a small bomb in the for an interfaith conference held in Washing- would be needed to stop the bill. North Alabama district of Rep. Robert Ader- ton in mid-September 2000. That confer- On July 17, the House debated for about holt. The Check to the Charity ence, which opened a few weeks after the ELOTTERY, From A1 gamble that even a small fraction of the mar- and Family for $150K.” Working the Bill 40 minutes. Rumors continued to fly about The Republican was a member of the reli- eLottery check was sent to Toward Tradi- ket for helping states and others put lotter- According to the e-mails, Reed provided the Bush letter. Some members remained gious right’s Values Action Team in Con- This is the $25,000 check issued by eLottery, Abramoff's client, to Toward Tradition, tion, featured such speakers as DeLay, Shel- Votes Tom DeLay which is run by a longtime friend. At the time, Abramoff was chairman of the board The work Abramoff did for eLottery is ies online could be worth a billion dollars a No House Majority Whip the name and address where Norquist was In early June 2000, DeLay had not yet tak- confused about the bill’s contents. About 30 gress, a champion of public displays of the don and Norquist. one focus of a wide-ranging federal corrup- year. But the company faced many obstacles. supposed to send the money: to Robin Van- en a position on the Internet gambling ban. did not vote. “There was a lot of misin- Ten Commandments and a vigorous gam- of Toward Tradition. The charity hired an Alexandria consulting firm registered Rudy declined to comment on the Toward tion investigation into his dealings with In 1998, the Justice Department had used derwall at a location in Virginia Beach. But his aide, Rudy, was already providing ad- formation,” said a congressional staff mem- bling opponent. But now, in the midst of a to Lisa Rudy, wife of Tony Rudy, deputy chief of staff for Rep. Tom DeLay (R-Tex.). Tradition contract and said that his wife was members of Congress and government existing gambling laws to force eLottery to Vanderwall was director of the Faith and vice to Abramoff about how to kill it. ber who worked on the bill. tough reelection race, Aderholt was accused The charity denies there is a connection. not available for a comment. agencies. Abramoff is under indictment in shut down its first online lottery venture, Family Alliance, a political advocacy group Five days after Rudy and DeLay got back Still, Goodlatte had reason to be optimis- of being soft on gambling. A month after the interfaith conference, another case in connection with an allegedly with an Idaho Indian tribe. ELottery had not that was founded by two of Reed’s col- from the Scotland trip, Rudy sent an emer- tic because nine out of 10 bills on the suspen- “Congressman Robert Aderholt voted the gambling bill’s sponsors agitated to get fraudulent Florida business deal. earned a dime since. PHASE 1 Lacking a leagues and then turned over to Vanderwall, gency message to Abramoff from a wireless sion calendar pass. with them in support of HR #3125 with the House leaders to let them attach the meas- Abramoff had deep roots in the conserva- The Senate had passed the Internet Gam- two-thirds Vanderwall said and records show. device. But Abramoff’s efforts had eroded just law the gamblers want on horse and dog rac- ure to an end-of-the-year spending bill. tive movement and rose to prominence by bling Prohibition Act in late 1999, aiming to The majority, Vanderwall, a former Regent University “911 gaming,” Rudy typed on June 8. enough votes. The roll call — 245 in favor, ing,” said Sheldon’s mailer. Sheldon urged But Sheldon’s campaign in conservative helping Republicans tap traditionally Demo- make it easier for authorities to stop online Law School student and Republican opera- He followed up with a suggestion that 159 against — left Goodlatte 25 members voters to call Aderholt’s Washington office districts had the desired chilling effect on cratic K Street lobbyists for campaign dol- gambling sites. With a companion bill by the bill tive, was later convicted of soliciting sex Abramoff’s team get a conservative House short. The bill failed. “and ask him to vote NO this time.” Ader- GOP leaders. That became clear on Oct. 24, lars. But in the eLottery fight, he employed a Rep. Robert W. Goodlatte (R-Va.) advancing Vote with minors via the Internet and is serving a caucus to seek a meeting with the chamber’s holt’s opponent quickly incorporated Shel- when House Republicans met to discuss JULY 17, 2000 fails. win-at-any-cost strategy that went so far as in the House in the spring of 2000, eLottery seven-year term in Virginia state prison. top leaders, Speaker J. Dennis Hastert (R- ‘All Systems Go’ don’s attack in an ad of his own. their year-end strategy. to launch direct-mail attacks on vulnerable was desperate to ramp up its Washington = Dem. In a telephone interview, Vanderwall said Ill.) and Majority Leader Richard K. Armey The bulk rate stamp on the mailing said it Toward Tradition What happened at the meeting was re- House conservatives. lobbying. It had to sell off assets to stay Yes= GOP No that in July 2000 he was called by Reed’s (R-Tex.) — a key supporter of the bill. Abra- The eLottery team was euphoric. Abra- was paid for by American Marketing. Rec- Orthodox Jewish layed to Abramoff by a former associate, Da- Abramoff quietly arranged for eLottery to afloat and raise cash. 245= Indep. 159 firm, Century Strategies, alerting him that moff forwarded the idea to his team mem- moff lobbyist Patrick Pizzella, who was in ords show that the company is run by Robert foundation run by vid H. Safavian, who was then a lobbyist for pay conservative, anti-gambling activists to In May, eLottery hired Abramoff’s firm, he would be receiving a package. When it bers. “Message from Tony Rudy. Don’t share the Capitol to watch the vote, wrote in an e- Randolph, the president of Reed’s direct- Rabbi Daniel Lapin a coalition of online gambling companies help in the firm’s $2 million pro-gambling Preston Gates & Ellis LLP, for $100,000 a came, it contained a check payable to Van- it please. However we should take his ad- mail to colleagues the next day that he saw marketing subsidiary. A spokeswoman for $25,000 and who this month was indicted for alleged- campaign, including Ralph Reed, former month, according to lobbying reports. In the derwall’s group for $150,000 from Amer- vice.” Sheldon celebrating the victory, too. “There Reed said that American Marketing is “a dif- ly lying to federal investigators in the Abra- head of the Christian Coalition, and the Rev. following months, Abramoff directed the icans for Tax Reform, signed by Norquist. Sheldon was also hard at work, holding was lucky Louie out front hi-fiving with ferent company” and that she could not re- moff probe. Louis P. Sheldon of the Traditional Values company to pay hundreds of thousands of Vanderwall said he followed the instructions news conferences and buttonholing House some lobbyists,” said Pizzella, who the fol- spond to questions about it. DeLay, Safavian wrote in an e-mail, Coalition. Both kept in close contact with dollars to various organizations, faxes, e- from Reed’s firm — depositing the money conservatives to argue against the bill. On lowing year was named an assistant secre- Sheldon’s fliers also targeted Rep. J.C. former associate of Abramoff’s who spoke on man and claiming that his previous mailer “spoke up and noted that the bill could cost Abramoff about the arrangement, e-mails mails and court records show. The groups and then writing a check to Reed’s firm for July 10, he called Abramoff’s group saying tary of labor. Others partied across from the Watts of Oklahoma, then the House GOP the condition of anonymity. had been mistakenly distributed. In Rogan’s as many as four House seats. At that point, show. Abramoff also turned to prominent included Norquist’s Americans for Tax Re- an identical amount. he had run into resistance from the staff of Capitol at the restaurant Tortilla Coast. deputy whip, and vulnerable incumbents, in- The same former Preston Gates lobbyist district, he stopped pressuring the incum- there was silence. Not even Rep. Dick Ar- anti-tax conservative Grover Norquist, ar- form; Sheldon’s Traditional Values Coali- “I was operating as a shell,” Vanderwall an influential member who still favored the Supporters of the Internet gambling ban, cluding Rep. James E. Rogan of California, said Rudy played a key role in getting House bent and, instead, attacked his challenger as mey (R-Texas) — our previous opponent — ranging to route some of eLottery’s money tion; companies affiliated with Reed; and a Advises said, adding that he was never told how the bill. though, were outraged. They vowed to res- one of the managers of the impeachment of leaders to pay attention to the plight of mem- “a champion of the homosexual agenda.” said a word.” for Reed through Norquist’s group, Amer- Seattle Orthodox Jewish foundation, to table money was spent. He said: “I regret having “Lou just called,” team member Shawn urrect it, perhaps as part of an appropria- President Bill Clinton, and Rep. Robin bers under attack. Sheldon said in an interview this week When Congress prepared to adjourn in icans for Tax Reform. Toward Tradition. legislation had anything to do with it.” Vasell told colleagues in an e-mail. “We need tions bill. Hayes of North Carolina. “Tony would say to members, ‘Oh, you’re that he recalled little about his efforts 2000 without revisiting the gambling bill, At one point, eLottery’s backers even cir- Robert Daum, a former eLottery official, Abramoff had previously paid Reed’s con- to get together and draft a response for The Christian Coalition issued an “action Angry House members targeted by Shel- getting phone calls on this? I better go tell against the bill in 2000. He said he did not re- Safavian was ecstatic. He sent his clients an culated a forged letter of support from Flori- said he could not recall the names of the sulting firms to whip up Christian opposi- Lou.” Kevin Ring, Vasell’s associate, re- + 30 abstained alert.” Dobson took to the airwaves, saying, don complained to the leadership. “Certain- the whip.’ Lou Sheldon sending a letter is member receiving a $25,000 check from e-mail, which was posted on the Web site of da Gov. Jeb Bush (R). groups that received the payments but not- tion to Indian casinos and a proposed Ala- sponded: “This is a disaster.” “I’m just sick about what the Republican ly our displeasure was relayed on up the not going to do anything unless you have eLottery, but added that it is possible that the Fantasy Sports Trade Association. Rudy declined to comment for this re- ed that all the money spent by the company bama state lottery that would compete with Abramoff weighed in minutes later, saying leadership is doing with regard to gam- chain, so to speak,” said Andrew Duke, the somebody on the inside. Tony exaggerated his organization did receive it. He said he re- “Relax a bit,” Safavian wrote. “Policy beat port. A spokesman for Reed — now a candi- at Abramoff’s direction was for the purpose DeLay casts rare vote against his party. the gambling business of Abramoff’s tribal he would get Reed to ramp up efforts. “I just bling.” He urged listeners to contact DeLay chief of staff for Hayes. to leadership how backing the bill could hurt membered some money coming in to pay for politics once again. (Maybe the American date for lieutenant governor of Georgia — of defeating the Internet bill. He has voted against Republicans only clients, sometimes using Norquist’s founda- chatted with Ralph. We are going to have to and other House leaders to revive the meas- Abramoff’s willingness to jeopardize Re- those members,” the former Abramoff asso- fliers he had printed and mailed to congres- system isn’t really that bad.) The good guys said that he and his associates are unaware “We were willing to pursue all legitimate 6 percent of the time, according to tion as a pass-through, a Senate investiga- go on the air nationally on radio. We must ure. publican House seats startled his lobbying ciate said. sional districts to persuade members to op- won.” that any money they received came from means to ensure that outcome, as people do an analysis of 7,138 votes since 1993. tion has found. get the conservatives back on this or we are Abramoff’s team realized there was no team, some of whom had come from De- The outrage prompted Sheldon to back pose the bill. gambling activities. Sheldon said that he all the time in Washington,” Daum said. Most DeLay votes against the GOP tide have A spokeswoman for Reed said Century doomed,” he told the team. way to win enough support for a simple ma- Lay’s office. “Once we started talking about off in some of the races. In Aderholt’s dis- “I wasn’t aware the money was coming Researchers Alice Crites and Julie Tate could not remember receiving eLottery “Nothing more, nothing less.” been for amendments, not for passage Strategies had no business relationship with Abramoff got another strategy e-mail the jority because they were down more than taking out our guys, I got worried,” said a trict, he issued a letter praising the congress- from them [eLottery],” Sheldon said. “I contributed to this report. money and that he was unaware that Abra- Arrayed against eLottery were many lead- of bills. In that same period, the House eLottery. She said Reed did anti-gambling next morning from Rudy. Rudy was on De- moff was involved in the campaign to defeat ing groups on the religious right who were passed 94 percent of all 1,410 bills work for Abramoff but was assured by Abra- Lay’s staff but wrote “we” as though he be- the bill. Norquist’s group would say only pushing to ban Internet gambling, including on the suspension calendar. moff’s firm “that our activities would not be longed to Abramoff’s team. “I think we that it had opposed the gambling ban on lib- the Moral Majority and the Christian Coali- funded by revenues derived from gambling should get weyrich to get like 10 groups to ertarian grounds. tion. James Dobson, influential leader of Fo- activities.” sign a letter to denny and armey on gaming ELottery’s The Internet Gambling Prohibition Act threatened eLottery Inc.’s business plan, for about one-fifth of the company’s general and operating expenses in 2000, according Abramoff’s lawyer declined requests for a cus on the Family, praised the bill in an opin- PHASE 2 Attacks on GOP Norquist declined to be interviewed. His bill,” Rudy wrote, referring to Free Congress and, as the bill advanced through Congress, the stock reacted to various legislative to a review of documents filed with the Securities and Exchange Commission, the comment. ion piece for the New York Times. conservatives spokesman did not answer questions about Foundation Chairman Paul M. Weyrich and Fall DeLay, an outspoken opponent of gam- Still, according to his strategy e-mails, the movement of funds. the House leaders. turns. The firm’s successful lobbying campaign cost about $2 million, which accounts Secretary of the Senate and U.S. Bankruptcy Court in New York. bling, was an instrument, witting or un- Abramoff thought he could turn conserva- Bill persuade party Another check issued in 2000 by eLottery Sheldon got a private meeting with DeLay witting, in eLottery’s campaign, documents tives in the House against the bill. He seized leaders to table at Abramoff’s direction wound up helping to on July 13. “I told him I strongly opposed the Company Wins Expensive Campaign APRIL MAY JUNE JULY AUG. SEPT. OCT. . . . But Loses in the End and interviews show. Along with Rudy, he on some compromise language in the bill Dies fund the Scotland golfing trip attended by bill,” Sheldon told Congressional Quarterly was a guest on a golfing trip to Scotland. As making exceptions for jai alai and horse rac- legislation. Rudy and DeLay. On May 25, 2000, as the at the time. To Defeat Internet Gambling Bill . . . April 5-6 May 17 June 2 July 11 Fall 2000 Supporters of bill work to get it majority whip, he cast a rare vote against his ing. trip got underway, the company sent A former DeLay staff member who spoke House Judiciary Social conservatives Abramoff registers to Rudy e-mails Abramoff resurrected by adding it to spending bills What happened to the company: party on the Internet gambling bill and for Abramoff’s plan: argue that the legislation $25,000 to the National Center for Public on the condition of anonymity said, “Lou Committee amends including James lobby for eLottery. with advice. or bringing it up for a usual House vote. The company filed for bankruptcy the rest of the year helped keep the measure and its exemptions would actually expand money to a Reed company, using two in- Policy Research, where Abramoff was a was a credible face” because Sheldon’s reli- $11 Stock price, daily closes act to also ban state Dobson, the Rev. Pat in October 2001. June 8 July 10 off the floor. He told leadership colleagues legalized gambling. termediaries, which had the effect of obscur- board member at the time. Along with mon- gious credentials carried some weight with lottery ticket sales Robertson and the Aug. 24 Sept. 7 Rudy sends urgent Letter from Florida Gov. ELottery reported in the bankruptcy that another vote could cost Republican ing the source. ey from another Abramoff client, that pay- conservative voters. 10 Peak: $10.12 over the Web. Rev. Jerry Falwell ELottery writes ELottery gives e-mail to Abramoff: Jeb Bush opposing the owing money to many firms in the seats in the hard-fought 2000 elections. The eLottery money went first to Nor- ment covered most of the Scotland travel DeLay then told House Republican lead- Jan. 21,2000 write lawmakers in $150,000 check to $25,000 in soft Check in the Mail “911 gaming.” bill circulates on Capitol campaign, including Preston Gates A statement from DeLay’s lawyer said his quist’s foundation, Americans for Tax Re- costs, according to records and interviews. ers that he was prepared to go against the 9 April 5: support of bill. American Marketing money to the $4.31 Hill. It is later exposed & Ellis, Americans for Tax Reform, votes “are based on sound public policy and To reach the House conservatives, Abra- form (ATR), and then through a second DeLay has said that he thought the Na- anti-gambling bill. June 15 Inc., a company National Republican Oct. 24: 8 May 25 to June 3 as forged. Toward Tradition, Traditional Values principle.” moff turned to Sheldon, leader of the Or- group in Virginia Beach called the Faith and tional Center sponsored and paid for the Abramoff takes Rudy goes to U.S. associated with Congressional Off the table Ralph Reed. Committee. Coalition and Shandwick public affairs. The Scotland trip is one aspect of the ange County, Calif.-based Traditional Values Family Alliance, before it reached Reed’s trip. The Bush Forgery April 6: Majority Whip Tom Open in Pebble Beach July 17: The Vote GOP leadership 7 ELottery also sends ELottery emerged from bankruptcy gambling matter being investigated by the Coalition, a politically potent group that company, Century Strategies. Norquist’s A few weeks after the golfing trip, Abra- $3.93 DeLay, DeLay’s as guest of Abramoff. Internet bill fails Mid-September tables the $25,000 to Seattle- as a private company in 2003. corruption task force. The trip took place publicly opposed gambling and said it repre- group retained a share of the money as it moff took Rudy to the U.S. Open in Pebble Still, the Abramoff team was worried deputy chief of staff in House, falling The Rev. Louis legislation. 6 based Toward more than five years ago, which ordinarily sented 43,000 churches. Abramoff had passed through. Beach, Calif. They traveled aboard a corpo- about the vote. So the eLottery forces Tony Rudy and July 18: 25 votes short Sheldon launches $2.46 Tradition, which would be beyond the five-year statute of lim- teamed up with Sheldon before on issues af- “I have 3 checks from elot: (1) 2 checks rate jet belonging to SunCruz Casinos, a pressed the argument that the Internet bill several aides on of the two-thirds direct mail By year end, eLottery nears bankruptcy 5 hires Liberty itations on certain possible corruption fecting his clients. Because of their previous for $80K payable to ATR and (2) 1 check to Florida cruise line Abramoff was negotiat- was an unfair infringement of the right of in- Jan. 4 golfing trip to majority needed campaign to Oct. 25: with only $5.7 million in the bank. Consulting, a firm $1.00 charges. But legal sources say prosecutors success, Abramoff called Sheldon “Lucky TVC for $25K,” Abramoff’s assistant Susan ing to buy, according to a participant who dividual states to sell lottery tickets online. Executone Information Systems Inc., Scotland, paid for for passage under a pressure vulnerable Company officials continue to sell off 4 registered to Lisa have obtained a waiver of the time limit be- Louie,” former associates said. Ralston e-mailed him on June 22, 2000. “Let spoke on the condition of anonymity be- Amid the frenzied lobbying, a potentially in- parent of eLottery Inc., changes name partially by eLottery. July 17: parlimentary conservative assets, including executive life Checks and e-mails obtained by The Post fluential letter making that case began circu- $1.87 Rudy, Tony Rudy’s Oct. 24: cause of the need to gather information me know exactly what to do next. Send to cause of the ongoing investigation. Rudy did 3 to eLOT Inc., to change company focus maneuver. Republicans insurance policies, to stay afloat. wife. $0.96 abroad. show that Abramoff recruited Reed to join Grover? Send to Rev. Lou?” not report this trip in his House travel rec- lating on Capitol Hill. It was purportedly to selling services to state lotteries. on the bill. Sheldon in the effort to pressure members of Minutes later Abramoff responded, say- ords. signed by Jeb Bush. 2 The stock price jumps. End of year: $0.50 Desperate Company Congress. Reed had left the Christian Coali- ing that the check for Sheldon’s group Abramoff listed Rudy as a financial refer- “While I am no fan of gambling, I see this Dec. 29, 2000 tion in 1997 and started a political consult- should be sent directly to Sheldon, but that ence that summer in the SunCruz purchase. bill as a violation of states’ rights and I am 1 Like many Internet companies emerging ing firm in Georgia. the checks for Norquist required special in- That transaction ultimately led to the in- looking to prevent this encroachment,” the from the overheated 1990s, eLottery’s mon- Abramoff asked eLottery to write a check structions: “Call Grover, tell him I am in dictment two months ago of Abramoff and a letter said. 0 ey was drying up in the spring of 2000. in June 2000 to Sheldon’s Traditional Values Michigan and that I have two checks for him business partner on charges that they had A surprised Hill staffer called the Florida 2000 JAN. FEB. MARCH APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. The company was founded in 1993 on the Coalition (TVC). He also routed eLottery totaling 160 and need a check back for Faith forged a $23 million wire transfer. governor’s office, and the letter was exposed THE WASHINGTON POST ABCDE

Democracy Dies in Darkness TUESDAY, OCTOBER 18, 2005 Lawmaker’s Abramoff Ties Investigated Ohio’s Ney Has Disavowed Lobbyist

By James V. Grimaldi many favors from Abramoff, among them and Susan Schmidt campaign contributions, dinners at the lob- Washington Post Staff Writers byist’s downtown restaurant, skybox fund- raisers, including one at his MCI Center As federal officials pursue a wide- box, and a golfing trip to Scotland in August ranging investigation into the activities of 2002. If statements made by Abramoff Washington lobbyist Jack Abramoff, his to tribal officials and in an e-mail are to arrest on fraud charges in the purchase of be believed, Ney sought the Scotland trip a Florida casino boat company has increas- after he agreed to help Abramoff’s Texas ingly focused attention on a little-known Indian clients. Abramoff then arranged for congressman from rural Ohio. his charity to pay for the trip, according to Rep. Robert W. Ney (R-Ohio) placed documents released by a Senate committee comments in the Congressional Record investigating the lobbyist. favorable to Abramoff’s 2000 purchase of Ney is under investigation by Florida the casino boat company, SunCruz Casinos. federal prosecutors looking into Abramoff’s Two years later, Ney sponsored legislation to reopen a casino for a Texas Indian tribe that Abramoff represented. Ney approved a 2002 license for an Israeli telecommunications company to install antennas for the House. The company later paid Abramoff $280,000 for lobbying. It also donated $50,000 to a char- ity that Abramoff sometimes used to secretly pay for some of his lob- BY MELINA MARA — THE WASHINGTON POST bying activities. Rep. Robert W. Ney (R-Ohio) is under investigation by federal prosecutors Meanwhile, Ney accepted about dealings with lobbyist Jack Abramoff, who is charged with fraud. TUESDAY, OCTOBER 18, 2005 KLMNO PAGE 2

Ohio Lawmaker Investigated For Dealings With Lobbyist

ate Indian Affairs Committee. “As the testimony at both com- mittee hearings has revealed, Jack Abramoff repeatedly lied to advance his own financial interests.” Abramoff, whose attorneys declined to comment for this article, has publicly denied that he misled Ney. This spring, Ney hired a prominent Washington crimi- BY RANDY BAZEMORE — ASSOCIATED PRESS Adam Kidan, with a SunCruz Casinos boat in Florida, was Jack Abramoff’s nal defense lawyer, Mark Tuo- business partner and now faces a fraud charge in the casino boat deal. hey, to handle inquiries from the Justice Department and congressional investigators acquisition of SunCruz, according to pursuing the widening scandal. Tuohey has sources familiar with the investigation not returned phone calls in recent weeks to who spoke on the condition of anonymity. discuss his client. Abramoff and his business partner Adam Kidan were indicted in August on fraud Comments for SunCruz charges related to the purchase. A six-term congressman from rural Ney declined to be interviewed. He has eastern Ohio, Ney, 51, does not have a said his actions benefiting Abramoff had national profile. A former teacher and pub- nothing to do with the favors he received. lic safety director for his home town of Bel- He said he was misled by Abramoff and his laire, Ney was an Ohio legislator in 1994 associates. when he defeated the Democratic incum- “I am absolutely outraged by the dis- bent in the congressional district once rep- honest and duplicitous words and actions resented by Wayne Hays (D). of Jack Abramoff,” Ney said last year when But to members of Congress, Ney is Abramoff’s statements about Ney first known as the mayor of Capitol Hill. Ney came up in e-mails released by the Sen- is Administration Committee chairman, a TUESDAY, OCTOBER 18, 2005 KLMNO PAGE 3

powerful position that doles out budgets, Konstantinos “Gus” Boulis, but Boulis was equipment, offices and parking spaces to demanding unwelcome additional terms. House members. These perks are used by In March 2000, Ney used the Con- House Republican leaders to keep their gressional Record to assail Boulis. rank and file in line. “On the Ohio River we have gaming Ney became chairman of the com- interests that run clean operations and mittee thanks to his political patron, provide quality entertainment,” Ney wrote. Rep. Tom DeLay (R-Tex.), who recently “I don’t want to see the actions of one bad stepped down as House majority leader apple in Florida, or anywhere else to affect after he was indicted on a charge of con- the business aspect of this industry or hurt spiracy to violate a Texas campaign law. any innocent casino patron in our country.” Shortly after Ney arrived in the House in Ney’s remarks were orchestrated by 1994, he became a part of DeLay’s Retain Michael Scanlon, a former DeLay spokes- Our Majority Program (ROMP), a fun- man who had just been hired to work for draising effort in which GOP colleagues Abramoff at Preston Gates & Ellis LLP. donated to Republicans such as Ney in dis- Scanlon had approached Ney through tricts without a safe majority. After lines his chief of staff, Neil Volz, according to were redrawn to make Ney’s district more sources who spoke on the condition of ano- Republican, he returned the favor, donat- nymity. Volz has repeatedly declined to be ing to other vulnerable House Republi- interviewed. cans. That helped him earn his chairman- A few months later, Boulis agreed in ship in 2001, leapfrogging over a colleague principle to sell SunCruz to Abramoff and with more seniority. Kidan for $147.5 million. The deal closed Ney and Abramoff, whom DeLay once in the fall. But Abramoff and Kidan failed described as “one of my closest and dear- to make good on a $23 million payment est friends,” crossed paths as early as 1996. owed to Boulis, court records show. That year Ney took a trip to Montenegro When Boulis was being difficult in sponsored by a foundation that had links the negotiations, Ney again made an offi- to Abramoff, who was a lobbyist for Mon- cial statement, this time heaping praise on tenegro. Kidan. A few years later, Ney paid unusual “Since my previous statement, I have attention to another Abramoff client, the come to learn that SunCruz Casino now Florida gambling boat company SunCruz, finds itself under new ownership and, which was headquartered more than 1,000 more importantly, that its new owner has miles outside of Ney’s congressional dis- a renowned reputation for honesty and trict. Abramoff and his business partner integrity,” Ney said in the Congressional were trying to buy the cruise ship fleet from Record on Oct. 26, 2000. “The new owner, TUESDAY, OCTOBER 18, 2005 KLMNO PAGE 4

The Congressman Lobbyist Jack Abramoff and Rep. Robert W. Ney (R-Ohio) have had a long-standing relationship that has intersected at several points, including the sale of a Florida gambling cruise ship line, the effort of the Tigua Indian tribe to reopen its casino in Texas, and a bid by an Israeli telecommunications company to And the Lobbyist install antennas for cellular phone access in House buildings. Below is a timeline of events involving Abramoff and Ney. 2001 2002 2003

March 30, 2000: At the Feb. 6, 2001: SunCruz request of lobbyist Michael SunCruz partner June 22, Scanlon, Ney inserts Boulis is slain in 2001: SunCruz comments into the Fort Lauderdale. files for bankruptcy. Congressional Record. As Abramoff is negotiating to Oct. 26, 2000: buy the company, Ney Ney again inserts remarks into complains about SunCruz Congressional Record, praising Abramoff’s Casinos owner partner, Adam Kidan, as the new owners’ Konstantinos “Gus” Boulis. relations with Boulis turn rocky.

November 2000: House Administration Sometime in 2001: Oct. 4, 2002: House counsel writes LGC Wireless. Nov. 26, 2002: March 3, 2003: Committee awards LGC a license to Foxcom makes “This is not a traditional House procurement and, Ney awards Abramoff registers to Foxcom deploy antennas that would make contribution to Capital thus, House procurement policies do not apply.” license to Foxcom. lobby for Foxcom, wireless telephones work in House office Athletic Foundation, a which pays him buildings, but the contract is not signed. charity run by Abramoff. Oct. 20, 2002: Ballots due from wireless companies about which $280,000 over the Israeli start-up Foxcom complains that provider they prefer. In later interviews, spokesmen for the companies next two years. it deserves a shot at the job. say the vendors’ proposals were essentially equivalent. March 20, 2002: April 29, June 7, 2002: Aug. 2002: Oct. 8, 2002: Ney Tigua Abramoff enlists Ney 2002: Ney reports Abramoff e-mails Ney meets Tigua phones tribal officials in the Tigua cause — that Tiguas donate Tigua consultant, representatives in and tells them of his an attempt to slip in $25,000 to Ney’s Marc Schwartz, about Abramoff’s office. “disbelief that Sen. a casino-reopening 527 (nonfederal) a request from “our JanuaryAbramoff tells Tigua ChrisMarch Dodd (D-Conn.) 15, 2001: Fundraiser Aug. 4-9, 2002: Ney and Abramoff travel to Scotland March 5, 2003: BY MELINA MARA — THE WASHINGTON POST 2001: Ney takes over for Ney at MCI Center, Abramoff, Kidan and play the famed St. Andrews golf course. Ney reports Ney fundraising event in an Abramoff Rep. Robertprovision W. Ney into (R-Ohio) a pending put committee and friend.”Ney The consultant representative “that had gone back on his election reform bill. “Just $5,000 to his said later that “our chairmanshipCongressman of the Ney House word”and to threesupport other the SunCruz executives each that the National Center for Public Policy Research paid skybox (not known whether it was at comments favorable to Abramoff in Administration Committee. contribute $1,000 to Ney. for the trip, but the center said it did not. MCI Center or FedEx Field). the Congressionalmet with Record.Ney!!!! We’re leadership political friend” refers to Ney. didn’t want his trip to Tigua provision, f’ing gold!!!! He’s going action committee. Scotland brought up.” Schwartz later testified. to do Tigua. Call me.” March 20, 2002: April 29, June 7, 2002: Aug. 2002: Oct. 8, 2002: Ney Tigua Abramoff enlists Ney 2002: Ney reports Abramoff e-mails Ney meets Tigua phones tribal officials in the Tigua cause — that Tiguas donate Tigua consultant, representatives in and tells them of his an attempt to slip in $25,000 to Ney’s Marc Schwartz, about Abramoff’s office. “disbelief that Sen. a casino-reopening 527 (nonfederal) a request from “our Abramoff tells Tigua Chris Dodd (D-Conn.) provision into a pending committee and friend.” The consultant representative “that had gone back on his election reform bill. “Just $5,000 to his said later that “our Congressman Ney word” to support the met with Ney!!!! We’re leadership political friend” refers to Ney. didn’t want his trip to Tigua provision, f’ing gold!!!! He’s going action committee. Scotland brought up.” Schwartz later testified. to do Tigua. Call me.”

THE WASHINGTON POST

THE WASHINGTON POST TUESDAY, OCTOBER 18, 2005 KLMNO PAGE 5

Mr. Adam Kidan, is most well known for a $1,000-a-head fundraiser for Ney at his successful enterprise, Dial-a-Mattress, Abramoff’s skybox at the MCI Center, but he is also well known as a solid indi- according to Abramoff’s fundraising log. vidual and a respected member of his com- munity. Language for Tiguas “While Mr. Kidan certainly has his In early 2002, Volz left his post as hands full in his efforts to clean up Sun- Ney’s chief of staff to join Abramoff’s lob- Cruz’s reputation, his track record as a bying team. Soon after, in March 2002, businessman and as a citizen lead me to Ney agreed to sponsor legislation that believe that he will easily transform Sun- would benefit the Tigua tribe of El Paso, an Cruz from a questionable enterprise to an Abramoff and Scanlon client. They wanted upstanding establishment that the gaming Ney’s help to reopen the Tiguas’s casino, community can be proud of.” which the state of Texas had shut down. But Kidan’s “track record” included a “Just met with Ney!!! We’re f’ing string of lawsuits, judgments, liens, bank- gold!!!! He’s going to do Tigua,” Abramoff ruptcies and failed businesses. His Dial-a- told Scanlon in a March 20, 2002, e-mail. Mattress franchise in the District was in Six days later, Abramoff directed tribal bankruptcy. He had filed personal bank- officials to make three contributions total- ruptcy, and he had surrendered his law ing $32,000 to Ney’s campaign and politi- license in New York after being accused of cal action committees. A Ney spokesman fraud. One of his mentors, Anthony Mosca- recently said that money has been donated tiello, was alleged by law enforcement to to Ohio charities. be an accountant for New York’s Gambino On June 7, 2002, Abramoff wrote in an crime family. e-mail to Tigua consultant Marc Schwartz Ney later said he did not know about that “our friend” had “asked if we could Kidan’s background. help (as in cover) a Scotland golf trip for Four months after Ney’s remarks in him and some staff.” the Congressional Record, Boulis was The e-mail does not murdered in Fort Lauderdale. Police did name “our friend,” but not make any arrests in the case until Sep- Schwartz testified in the tember, when they charged four men in Senate last fall that it was the slaying, including Moscatiello and a Ney. business associate of Moscatiello’s whom Abramoff wrote that Kidan had paid $250,000 as catering con- “the trip will be quite sultants. expensive (we did this for Abramoff gave to Ney’s campaign Five weeks after the Boulis killing, another member — you and took him to SunCruz officials, including Kidan, threw know who) 2 years ago.” Scotland. TUESDAY, OCTOBER 18, 2005 KLMNO PAGE 6

He was referring to an earlier Scotland golf Coyne said. trip that Abramoff had arranged in 2000 Ney is not the first public official who for DeLay. Abramoff suggested to Schwartz has come under scrutiny by investiga- that the tribe send $50,000 to a charity he tors for the Scotland trip. David Safavian, directed, the Capital Athletic Foundation, then chief of staff at the General Services which would pay for the trip “as an educa- Administration, also went on the trip with tional mission.” Ney, Abramoff and former Christian Coali- Ney later stated on disclosure forms tion leader Ralph Reed Jr. Safavian, who filed with the House that the August 2002 went on to become the chief White House trip cost $3,200 and was paid for by the procurement officer, was indicted this National Center for Public Policy Research, month on charges that he lied to investiga- a conservative advocacy group on whose tors looking into the Scotland trip when he board Abramoff served. The Washington said that Abramoff had no business before Post reported last year that the trip was the his agency. actually paid for by the Capital Athletic The trip, Ney said in his statement last Foundation, which reported in tax records year, had nothing to do with legislation for that it spent $150,225 on the trip. the tribe. Ney has said he was misled by “I want to be absolutely clear that at Abramoff about who paid for the trip. no point, ever, was I made even remotely “In April, 2002, I was approached aware that any Indian tribe played any role by Mr. Abramoff, who I believed to be a in this trip,” Ney said in his statement. respected member of the community, and Ney said he supported the Tigua legis- asked to go on a trip to Scotland which lation at Abramoff’s request after the lob- Mr. Abramoff said would help support a byist told him the provision was supported charitable organization, that he founded, by Sen. Christopher J. Dodd (D-Conn.), through meetings he organized with Scot- who was sponsoring the election reform tish Parliament officials,” Ney said in a bill that would carry the Tigua provision. statement last November. “I then [in July 2002] personally Ney’s report to Congress listed as a asked Senator Dodd about this provision purpose of the trip: “speech to Scottish and he expressed no knowledge of it,” Ney Parliamentarians.” However, there is no said. “In short, I had been misled by Jack record of Ney’s speech in the Scottish Par- Abramoff. I then asked Jack Abramoff why liament’s register of official visits kept by Senator Dodd was apparently not support- the external liaison office, which is avail- ing it and Mr. Abramoff told me that some- able on the Web. In addition, at the time of one had lied to him. The matter was then Ney’s trip, the Scottish Parliament was out closed from my perspective.” for its August recess, spokeswoman Sally However, the Tiguas say no one told TUESDAY, OCTOBER 18, 2005 KLMNO PAGE 7

them the matter was closed. Tigua con- Senate conference committee without a sultant Schwartz later testified to the Sen- Tigua provision, Ney held a conference call ate Indian Affairs Committee that Ney with tribal officials and told them of his remained a strong supporter of the Tigua “disbelief that Dodd had gone back on his legislation and Abramoff long after his word” to support the provision, Schwartz conversation with Dodd. testified. Ney also expressed his continued Schwartz said that in August 2002 support for the Tiguas, tribal officials said. — a month after Ney’s reported conver- Ney responded to Schwartz’s testi- sation with Dodd and around the time of mony by saying, “I, like these Indian tribes the Scotland trip — Abramoff arranged for and other members of Congress, was duped Ney to meet with Tigua representatives in by Jack Abramoff.” his office. Before the meeting, “in an e-mail Ney later said he was very angry at to me, Abramoff mentioned that Congress- Abramoff and Scanlon, who he said had man Ney didn’t want his trip to Scotland misled him about Dodd. Ney has called brought up, as he would show his apprecia- Abramoff and Scanlon’s activities in the tion to the Tribe later,” Schwartz testified. Tigua episode “nefarious.” The meeting lasted more than 90 Abramoff shot back by referring to minutes, two tribal members testified at the conference call when he spoke to the the Senate hearing. The tribal leaders who New York Times Magazine this spring. attended the meeting were pleased and “It’s crazy” for Ney to say he was duped, impressed with the outcome, Schwartz Abramoff said. “He was on the phone for said. an hour and a half!” “During that meeting, Congress- man Ney was very animated about Mr. Contract for Foxcom Abramoff’s skill and repute as a leader in In the late 1990s, members of Con- the lobbying circles,” Schwartz testified. gress became increasingly frustrated at the “We were told about the impending suc- lack of cell phone coverage inside the Capi- cess of Mr. Abramoff’s tol and its nearby office buildings. legislative plan and how The House decided to let the major much Congressman Ney wireless companies select — and pay for — wanted to help to restore a company to install antennas for cellular the Tribe’s ability to con- phones. In 1999, AT&T Wireless had asked duct gaming on their res- LGC Wireless of San Jose to work with the ervation.” House bureaucracy to put the antennas Michael Scanlon Two months later, on and repeaters into House buildings. The urged Ney to Oct. 8, after the election project was one of the largest of its kind, support SunCruz Casinos. bill came out of a House- worth more than $3 million. TUESDAY, OCTOBER 18, 2005 KLMNO PAGE 8

At the time, LGC was the world’s lead- “highly politicized selection process” that ing provider of such equipment and had favored the Israeli company despite the wired the headquarters of most cellular House’s “Buy American” posture. “Only phone companies, including Nextel and Foxcom was permitted a full and fair hear- AT&T. During the next year, LGC worked ing on the merits of its proposal — essen- with the architect of the Capitol and the tially a ‘back room’ deal based on political House Information Resources office to expediency alone,” Gray wrote. develop a plan. Assistant House Counsel Carolyn Then Foxcom Wireless, an Israeli Betz, replying on behalf of Ney, said in a start-up telecommunications firm, entered letter to LGC that in the fall of 2001 the the picture. Foxcom, which has since major wireless companies were receiving moved headquarters from Jerusalem to ballots to vote on who should get the con- Vienna, Va., and been renamed MobileAc- tract. cess Networks, lobbied for the job. In a letter to Betz, LGC president and In early 2001, Ney took charge of the chief executive Ian Sugarbroad called the House Administration Committee, which election process “deeply flawed and unfair.” was ultimately responsible for the antenna He said each wireless company was sent a job. Sometime that year, exactly when is ballot and allowed to vote for LGC, Foxcom unclear, Foxcom donated $50,000 to the or “no preference.” There were no details Capitol Athletic Foundation, Abramoff’s on the bid proposals, such as cost, security charity. Foxcom officials have declined to features, band capacity or critical perfor- be interviewed about the donation or the mance metrics, Sugarbroad said. wireless project. A spokesman for Foxcom, Brian Walsh, Ney’s spokesman, pro- now MobileAccess, referred all questions vided The Post redacted copies of the bal- Monday to Ney’s committee. lots. Three show checkmarks in a box next Also that same year, a decision was to Foxcom. The other three ballots are delayed on the antennas, which caught marked “no preference.” House staff by surprise. But representatives of all six compa- “We were really surprised, given all nies said they voted no preference, accord- the work we put in with LGC in designing ing to interviews and documents. Five of the system,” said Henry F. “Bud” Collins Jr., them were interviewed by The Post, and the senior network systems engineer for the sixth made its preference known in a the House. “Then, all of a sudden this other letter obtained by The Post. company showed up. We had to go through Spokesmen for the companies — Cin- this whole thing again.” gular, Nextel, Sprint, Verizon Wireless, LGC Chief Operating Officer Alex AT&T Wireless and Voicestream — said Gray wrote to Ney to complain about the they remained neutral because both LGC TUESDAY, OCTOBER 18, 2005 KLMNO PAGE 9

and Foxcom were considered capable of Collins, the House engineer who has doing the job. since retired, said, “It almost seemed like Walsh said those statements are “an the cards were stacked for them.” absolute contradiction to the documenta- After the contract was awarded, Fox- tion.” com listed Abramoff as its lobbyist. Over Ney awarded the license to Foxcom on the next two years, Foxcom paid Abramoff’s Nov. 26, 2002, Walsh said. He declined to team $280,000. make public a copy of documents relating to the agreement, noting that the Freedom Researcher Alice Crites and database editor Derek Willis contributed to this report. of Information Act does not apply to Con- gress. He noted that the work was paid for by the wireless companies and not by Con- Friday, October 21, 2005 gress, and he pointed out that the Senate also chose Foxcom. CORRECTION: An Oct. 18 article incor- LGC had no right to appeal. “This is rectly reported that Rep. Robert W. Ney not a traditional House procurement and, (R-Ohio) defeated an incumbent Democrat thus, House procurement policies do not in 1994. It should have said Ney replaced a apply,” Betz stated in her letter to LGC. retiring Democrat. DAILY 10-18-05 DC M2 A1 CMYK

Weather Today: Partly sunny, breezy. High 78. Low 56. DISTRICT Wednesday: Mostly sunny, FINAL warm. High 78. Low 56. Details, B8 ABCDE 35¢ Prices may vary in areas outside metropolitan 128th Year No. 317 M2 DC Tuesday, October 18, 2005 M1 M2 M3 M4 V1 V2 V3 V4 Washington. (See box on A2)

Cheney’s In Pakistan, Relief Effort Still a Fitful Process Iraqis Say Office Is Civilians A Focus in Killed in Leak Case U.S. Raids Sources Cite Role Military Asserts Of Feud With CIA Fatalities in West By Jim VandeHei Were Insurgents and Walter Pincus Washington Post Staff Writers By Ellen Knickmeyer Washington Post Foreign Service As the investigation into the leak of a CIA agent’s name hurtles to an BAGHDAD, Oct. 17 — A U.S. apparent conclusion, special prose- fighter jet bombed a crowd gath- cutor Patrick J. Fitzgerald has ered around a burned Humvee on zeroed in on the role of Vice Presi- the edge of a provincial capital in dent Cheney’s office, according to western Iraq, killing 25 people, in- lawyers familiar with the case and cluding 18 children, hospital offi- government officials. The prosecu- cials and family members said tor has assembled evidence that Monday. The military said the Sun- suggests Cheney’s long-standing day raid targeted insurgents plant- tensions with the CIA contributed ing a bomb for new attacks. to the unmasking of operative Vale- In all, residents and hospital rie Plame. workers said, 39 civilians and at In grand jury sessions, including least 13 armed insurgents were with New York Times reporter killed in a day of U.S. airstrikes in Judith Miller, Fitzgerald has Ramadi, the capital of Anbar prov- pressed witnesses on what Cheney ince, a Sunni Arab region with a may have known about the effort to heavy insurgent presence. push back against ex-diplomat and The U.S. military said it killed a Iraq war critic Joseph C. Wilson IV, BY KIMIMASA MAYAMA — REUTERS total of 70 insurgents in Sunday’s including the leak of his wife’s posi- Children prepare for breakfast at an evacuees’ tent village in Muzaffarabad, the capital of Pakistani-held Kashmir. Because many of the roads leading airstrikes and, in a statement, said tion at the CIA, Miller and others to Pakistan’s remote mountain villages were rendered impassable by the earthquake on Oct. 8, relief supplies sometimes have to be flown in by it knew of no civilian deaths. said. But Fitzgerald has focused helicopter, which can be a risky endeavor. Flights resumed yesterday after bad weather grounded most air operations over the weekend. Story, A19. At Ramadi hospital, distraught more on the role of Cheney’s top and grieving families fought over aides, including Chief of Staff I. body parts severed by the Lewis “Scooter” Libby, lawyers in- airstrikes, staking rival claims to volved in the case said. what they believed to be pieces of One former CIA official told their loved ones. prosecutors early in the probe In Albu Fahad, a community on about efforts by Cheney’s office and Lawmaker’s Abramoff Ties Investigated the east edge of Ramadi, family his allies at the National Security members gathered Monday in a Council to obtain information black funeral tent. A black banner about Wilson’s trip as long as two Ohio’s Ney Has Disavowed Lobbyist listed the names of the 18 children months before Plame was un- and seven adults allegedly killed by masked in July 2003, according to a By James V. Grimaldi an Israeli telecommunications the F-15 strike. person familiar with the account. and Susan Schmidt company to install antennas for Residents and the U.S. military It is not clear whether Fitzgerald Washington Post Staff Writers the House. The company later gave sharply different accounts of plans to charge anyone inside the paid Abramoff $280,000 for lobby- the air raid. Bush administration with a crime. As federal officials pursue a ing. It also donated $50,000 to a Both agreed that the incident oc- But with the case reaching a climax wide-ranging investigation into charity that Abramoff sometimes curred near a crater left in a road by — administration officials are the activities of Washington lobby- used to secretly pay for some of his a bomb that killed five U.S. soldiers braced for possible indictments as ist Jack Abramoff, his arrest on lobbying activities. and two Iraqi soldiers on Saturday. early as this week— it is increasing- fraud charges in the purchase of a Meanwhile, Ney accepted many Residents said that a second ly clear that Cheney and his aides Florida casino boat company has favors from Abramoff, among Humvee was attacked at the site have been deeply enmeshed in increasingly focused attention on a them campaign contributions, din- Sunday and that its burned wreck- little-known congressman from ners at the lobbyist’s downtown age remained at the scene. U.S. See LEAK, A4, Col. 4 rural Ohio. restaurant, skybox fundraisers, in- forces cordoned it off for one or Rep. Robert W. Ney (R-Ohio) cluding one at his MCI Center box, two hours, then departed with the DAILY 10-18-05 MD SU A8 BLACK placed comments in the Congres- and a golfing trip to Scotland in BY MELINA MARA — THE WASHINGTON POST wreckage still there, residents said. sional Record favorable to Abra- August 2002. If statements made Rep. Robert W. Ney (R-Ohio) is under investigation by federal prosecutors Children and other local people moff’s 2000 purchase of the casino by Abramoff to tribal officials and about dealings with lobbyist Jack Abramoff, who is charged with fraud. boat company, SunCruz Casinos. in an e-mail are to be believed, Ney See IRAQ, A20, Col. 1 Numerous Two years later, Ney sponsored sought the Scotland trip after he released by a Senate committee in- SunCruz, according to sources fa- legislation to reopen a casino for a agreed to help Abramoff’s Texas vestigating the lobbyist. miliar with the investigation who K In Slobodan Milosevic’s A8 Tuesday, October 18, 2005 S x The Washington Post Texas Indian tribe that Abramoff Indian clients. Abramoff then Ney is under investigation by spoke on the condition of ano- Violations represented. arranged for his charity to pay for Florida federal prosecutors look- trial, lessons for Saddam Ney approved a 2002 license for the trip, according to documents ing into Abramoff’s acquisition of See NEY, A8, Col. 1 Hussein’s. | World, A19 The Congressman Lobbyist Jack Abramoff and Rep. Robert W. Ney (R-Ohio) have had a long-standing relationship that has intersected at several points, including the sale of a Florida gambling cruise ship line, the effort of the Tigua Indian tribe to reopen its casino in Texas, and a bid by an Israeli telecommunications company to Alleged in And the Lobbyist install antennas for cellular phone access in House buildings. Below is a timeline of events involving Abramoff and Ney. 2001 2002 2003 Bus Fire Evans PAC Helped Pay for Friend’s Trip By Bill Brubaker March 30, 2000: At the Feb. 6, 2001: Washington Post Staff Writer SunCruz request of lobbyist Michael SunCruz partner June 22, Councilman’s Newsletter Diverges From Statement Scanlon, Ney inserts Boulis is slain in 2001: SunCruz The chartered bus that explod- comments into the Fort Lauderdale. files for bankruptcy. ed near Dallas last month, killing Congressional Record. As 23 elderly Hurricane Rita evacuees By Serge F. Kovaleski tober 2004. He said in the interview that Abramoff is negotiating to Oct. 26, 2000: from a long-term-care facility, had Washington Post Staff Writer his friend, Georgetown art gallery owner buy the company, Ney Ney again inserts remarks into a defective brake, an illegal license Marsha Ralls, “paid her own way” on the complains about SunCruz Congressional Record, praising Abramoff’s plate and a driver — charged yes- D.C. Council member Jack Evans now trip. Casinos owner partner, Adam Kidan, as the new owners’ terday with negligent homicide — says that his political action committee And Ralls is not mentioned in the Konstantinos “Gus” Boulis. relations with Boulis turn rocky. whose Mexican license wasn’t paid some of the travel expenses of a spending report the PAC filed with the valid in the United States, accord- close friend when she went on a trade D.C. Office of Campaign Finance, which BY BILL O’LEARY — THE WASHINGTON POST ing to state and federal officials. mission to Asia with him last year. said only that the Dec. 16 reimburse- A sunglasses attachment moves the cell phone The operator of the bus, Global In his weekly newsletter released Fri- ment of $6,772.72 was “for expenses in- off the belt and onto the face. November 2000: House Administration Sometime in 2001: Oct. 4, 2002: House counsel writes LGC Wireless. Nov. 26, 2002: March 3, 2003: Limo Inc., had a low federal driver day, Evans (D-Ward 2) said, “One of the curred during China delegation trip.” Committee awards LGC a license to Foxcom makes “This is not a traditional House procurement and, Ney awards Abramoff registers to safety rating. A government in- expenses that the PAC covered was for When the campaign finance office ear- Foxcom deploy antennas that would make contribution to Capital thus, House procurement policies do not apply.” license to Foxcom. lobby for Foxcom, wireless telephones work in House office Athletic Foundation, a which pays him vestigation after the accident the lodging of a friend, who traveled to ly this year requested more information Oct. 20, 2002: Ballots due from wireless companies about which found 168 alleged violations in- China as part of an official Washington about the reimbursement, the PAC’s Portable Gadgets buildings, but the contract is not signed. charity run by Abramoff. $280,000 over the Israeli start-up Foxcom complains that provider they prefer. In later interviews, spokesmen for the companies next two years. volving the four other buses in delegation.” treasurer at the time reiterated that the say the vendors’ proposals were essentially equivalent. Global Limo’s fleet, and the federal Evans gave a different account in an repayment was for business costs stem- it deserves a shot at the job. Department of Transportation has interview last month, saying a $6,772.72 ming from the Asia mission and did not Adding a Little since ordered the company’s vehi- reimbursement he received from the mention Ralls or any Evans friend, cles off the road. PAC was for his travel expenses on the Chic to Geek January March 15, 2001: Fundraiser Aug. 4-9, 2002: Ney and Abramoff travel to Scotland March 5, 2003: Public safety experts and con- 11-day trip to China and Thailand in Oc- See EVANS, A16, Col. 1 BY MELINA MARA — THE WASHINGTON POST BY PRESTON KERES — THE WASHINGTON POST 2001: Ney takes over for Ney at MCI Center, Abramoff, Kidan and play the famed St. Andrews golf course. Ney reports Ney fundraising event in an Abramoff sumer advocates say the incident By Yuki Noguchi Rep. Robert W. Ney (R-Ohio) put Ney offers a cautionary tale about the Council member Jack Evans has used a Washington Post Staff Writer chairmanship of the House and three other SunCruz executives each that the National Center for Public Policy Research paid skybox (not known whether it was at comments favorable to Abramoff in Administration Committee. contribute $1,000 to Ney. for the trip, but the center said it did not. MCI Center or FedEx Field). charter bus industry, demonstrat- PAC to pay for travel and entertainment. K A D.C. proposal would raise taxes to fund school renewal. | B1 the Congressional Record. ing how a prominent company This summer, chic European women such as Tysons Corner-based Sun- swooned over the fashion-forward look of the rise Senior Living Inc., the largest pink cell phone earpiece. In time for the fall assisted-living corporation in the season, a U.S. designer released a black patent- INSIDE March 20, 2002: Ney United States, can end up relying leather thigh holster that stows a phone. Ooo, April 29, June 7, 2002: Aug. 2002: Oct. 8, 2002: Tigua Abramoff enlists Ney 2002: Ney reports Abramoff e-mails Ney meets Tigua phones tribal officials on a small carrier with a spotty Miers Says Nobody A New Deal at GM la la! And for the men: a new collection in- Ohio Lawmaker Investigated in the Tigua cause — that Tiguas donate Tigua consultant, representatives in and tells them of his safety record. cluding Oakley sunglasses with a Bluetooth The world’s largest automaker an attempt to slip in $25,000 to Ney’s Marc Schwartz, about Abramoff’s office. “disbelief that Sen. With a patchwork of state and Knows ‘Roe’ Stance wireless microphone attachment. a casino-reopening 527 (nonfederal) a request from “our Abramoff tells Tigua Chris Dodd (D-Conn.) will pare workers’ health federal regulations, federal bus Nominee Harriet Miers says no Companies are trying to take the geek out of provision into a pending committee and friend.” The consultant representative “that had gone back on his benefits and sell a stake in its company ratings based on some- one can say how she would gadgetry, rendering the old cell-phone-on-a- election reform bill. “Just $5,000 to his said later that “our Congressman Ney word” to support the finance unit. BUSINESS, D1 For Dealings With Lobbyist times incomplete data and an often vote on an abortion case before belt look permanently passe. The aim is to met with Ney!!!! We’re leadership political friend” refers to Ney. didn’t want his trip to Tigua provision, tangled web of vehicle ownership the Supreme Court, according drive up sales in the phone accessory market, f’ing gold!!!! He’s going action committee. Scotland brought up.” Schwartz later testified. records, those experts say it’s diffi- to two senators who met with Cardinals Come Back which already generates $5 billion annually in NEY, From A1 to do Tigua. Call me.” cult for people or companies using the United States. her. NATION, A17 St. Louis, with a three-run Techno-fashionistas say that it is the culmi- homer by Albert Pujols in nymity. Abramoff and his business nation of years of experimental design and that See BUS, A12, Col. 1 the ninth, beats the Houston partner Adam Kidan were indicted ‘Clerical Error’ companies are finally finding a comfortable Astros, 5-4. SPORTS, E1 in August on fraud charges related The Post on the Internet: In Md. Courtroom BY JESSIE COHEN — ASSOCIATED PRESS middle ground between form and function, to the purchase. mostly by exploiting ways to make devices washingtonpost.com A Prince George’s County Ney declined to be interviewed. The Votes Are In: Meet Tai Shan Risky Insurance smaller and therefore more wearable — much judge’s dismissal of a He has said his actions benefiting As he marks his 100th day, the panda cub at the like Apple Computer Inc.’s iPod Shuffle or protective order, against a man “Consumer-directed” health Abramoff had nothing to do with the Contents National Zoo is given a name that means Nano. Those trends, in turn, are creating a new  2005 who later allegedly set his wife plans, being offered by more favors he received. He said he was The “Peaceful Mountain.” METRO, B1 employers, are a gamble for misled by Abramoff and his associ- Washington on fire, is called a mistake. See A14, Col. 1 Post METRO, B1 Today’s contents are on A2 policy-holders. HEALTH, F1 ACCESSORIES, ates. 1 “I am absolutely outraged by the dishonest and duplicitous words and actions of Jack Abramoff,” Ney said last year when Abramoff’s state- ments about Ney first came up in THE WASHINGTON POST e-mails released by the Senate Indi- an Affairs Committee. “As the testi- able on the Web. In addition, at the conduct gaming on their reserva- “We were really surprised, given mony at both committee hearings BY RANDY BAZEMORE — ASSOCIATED PRESS time of Ney’s trip, the Scottish Par- tion.” all the work we put in with LGC in has revealed, Jack Abramoff repeat- Adam Kidan, with a SunCruz Casinos boat in Florida, was Jack Abramoff’s liament was out for its August Two months later, on Oct. 8, after designing the system,” said Henry F. edly lied to advance his own business partner and now faces a fraud charge in the casino boat deal. recess, spokeswoman Sally Coyne the election bill came out of a House- “Bud” Collins Jr., the senior network financial interests.” said. Senate conference committee with- systems engineer for the House. Abramoff, whose attorneys de- Ney is not the first public official out a Tigua provision, Ney held a “Then, all of a sudden this other com- clined to comment for this article, or hurt any innocent casino patron Language for Tiguas who has come under scrutiny by in- conference call with tribal officials pany showed up. We had to go has publicly denied that he misled in our country.” vestigators for the Scotland trip. and told them of his “disbelief that through this whole thing again.” Ney. Ney’s remarks were orchestrated In early 2002, Volz left his post as David Safavian, then chief of staff at Dodd had gone back on his word” to LGC Chief Operating Officer Alex This spring, Ney hired a promi- by Michael Scanlon, a former DeLay Ney’s chief of staff to join Abramoff’s the General Services Administra- support the provision, Schwartz tes- Gray wrote to Ney to complain about nent Washington criminal defense spokesman who had just been hired lobbying team. Soon after, in March tion, also went on the trip with Ney, tified. Ney also expressed his contin- the “highly politicized selection proc- lawyer, Mark Tuohey, to handle in- to work for Abramoff at Preston 2002, Ney agreed to sponsor legisla- Abramoff and former Christian Co- ued support for the Tiguas, tribal ess” that favored the Israeli company quiries from the Justice Department Gates & Ellis LLP. Scanlon had tion that would benefit the Tigua alition leader Ralph Reed Jr. Safa- officials said. despite the House’s “Buy American” and congressional investigators pur- approached Ney through his chief of tribe of El Paso, an Abramoff and vian, who went on to become the Ney responded to Schwartz’s tes- posture. “Only Foxcom was permit- suing the widening scandal. Tuohey staff, Neil Volz, according to sources Scanlon client. They wanted Ney’s chief White House procurement offi- timony by saying, “I, like these Indi- ted a full and fair hearing on the mer- has not returned phone calls in re- who spoke on the condition of ano- help to reopen the Tiguas’s casino, cer, was indicted this month on an tribes and other members of Con- its of its proposal — essentially a cent weeks to discuss his client. nymity. Volz has repeatedly declined which the state of Texas had shut charges that he lied to investigators gress, was duped by Jack Abramoff.” ‘back room’ deal based on political to be interviewed. down. looking into the Scotland trip when Ney later said he was very angry expediency alone,” Gray wrote. Comments for SunCruz A few months later, Boulis agreed “Just met with Ney!!! We’re f’ing he said that Abramoff had no busi- at Abramoff and Scanlon, who he Assistant House Counsel Carolyn in principle to sell SunCruz to Abra- gold!!!! He’s going to do Tigua,” ness before the his agency. said had misled him about Dodd. Betz, replying on behalf of Ney, said A six-term congressman from moff and Kidan for $147.5 million. Abramoff told Scanlon in a March The trip, Ney said in his state- Ney has called Abramoff and Scan- in a letter to LGC that in the fall of rural eastern Ohio, Ney, 51, does not The deal closed in the fall. But Abra- 20, 2002, e-mail. ment last year, had nothing to do lon’s activities in the Tigua episode 2001 the major wireless companies have a national profile. A former moff and Kidan failed to make good Six days later, Abramoff directed with legislation for the tribe. “nefarious.” were receiving ballots to vote on who teacher and public safety director for on a $23 million payment owed to tribal officials to make three contri- “I want to be absolutely clear that Abramoff shot back by referring should get the contract. his home town of Bellaire, Ney was Boulis, court records show. butions totaling $32,000 to Ney’s at no point, ever, was I made even re- to the conference call when he spoke In a letter to Betz, LGC president an Ohio legislator in 1994 when he When Boulis was being difficult in campaign and political action com- motely aware that any Indian tribe to the New York Times Magazine and chief executive Ian Sugarbroad defeated the Democratic incumbent the negotiations, Ney again made an mittees. A Ney spokesman recently played any role in this trip,” Ney said this spring. “It’s crazy” for Ney to called the election process “deeply in the congressional district once official statement, this time heaping said that money has been donated to in his statement. say he was duped, Abramoff said. flawed and unfair.” He said each represented by Wayne Hays (D). praise on Kidan. Ohio charities. Ney said he supported the Tigua “He was on the phone for an hour wireless company was sent a ballot But to members of Congress, Ney “Since my previous statement, I On June 7, 2002, Abramoff wrote legislation at Abramoff’s request and a half!” and allowed to vote for LGC, Foxcom is known as the mayor of Capitol have come to learn that SunCruz in an e-mail to Tigua consultant after the lobbyist told him the provi- or “no preference.” There were no Hill. Ney is Administration Commit- Casino now finds itself under new Marc Schwartz that “our friend” had sion was supported by Sen. Christo- Contract for Foxcom details on the bid proposals, such as tee chairman, a powerful position ownership and, more importantly, “asked if we could help (as in cover) pher J. Dodd (D-Conn.), who was cost, security features, band capacity that doles out budgets, equipment, that its new owner has a renowned a Scotland golf trip for him and some sponsoring the election reform bill In the late 1990s, members of or critical performance metrics, Sug- offices and parking spaces to House reputation for honesty and integri- staff.” that would carry the Tigua provi- Congress became increasingly frus- arbroad said. members. These perks are used by ty,” Ney said in the Congressional The e-mail does not name “our sion. trated at the lack of cell phone cover- Brian Walsh, Ney’s spokesman, House Republican leaders to keep Record on Oct. 26, 2000. “The new friend,” but Schwartz testified in the “I then [in July 2002] personally age inside the Capitol and its nearby provided The Post redacted copies of their rank and file in line. owner, Mr. Adam Kidan, is most well Senate last fall that it was Ney. asked Senator Dodd about this pro- office buildings. the ballots. Three show checkmarks Ney became chairman of the com- known for his successful enterprise, Abramoff wrote that “the trip will vision and he expressed no knowl- The House decided to let the in a box next to Foxcom. The other mittee thanks to his political patron, Dial-a-Mattress, but he is also well be quite expensive (we did this for edge of it,” Ney said. “In short, I had major wireless companies select — three ballots are marked “no prefer- Rep. Tom DeLay (R-Tex.), who re- known as a solid individual and a re- another member — you know who) been misled by Jack Abramoff. I then and pay for — a company to install ence.” cently stepped down as House ma- spected member of his community. 2 years ago.” He was referring to an asked Jack Abramoff why Senator antennas for cellular phones. In But representatives of all six com- jority leader after he was indicted on “While Mr. Kidan certainly has earlier Scotland golf trip that Abra- Dodd was apparently not supporting 1999, AT&T Wireless had asked panies said they voted no preference, a charge of conspiracy to violate a his hands full in his efforts to clean moff had arranged in 2000 for De- it and Mr. Abramoff told me that LGC Wireless of San Jose to work according to interviews and docu- Texas campaign law. Shortly after up SunCruz’s reputation, Lay. Abramoff suggested someone had lied to him. with the House bureau- ments. Five of them were inter- Ney arrived in the House in 1994, he his track record as a busi- to Schwartz that the tribe The matter was then cracy to put the antennas viewed by The Post, and the sixth became a part of DeLay’s Retain Our nessman and as a citizen send $50,000 to a charity closed from my perspec- and repeaters into House made its preference known in a letter Majority Program (ROMP), a fund- lead me to believe that he he directed, the Capital tive.” buildings. The project obtained by The Post. raising effort in which GOP col- will easily transform Sun- Athletic Foundation, However, the Tiguas say was one of the largest of Spokesmen for the companies — leagues donated to Republicans such Cruz from a questionable which would pay for the no one told them the mat- its kind, worth more than Cingular, Nextel, Sprint, Verizon as Ney in districts without a safe ma- enterprise to an upstand- trip “as an educational ter was closed. Tigua con- $3 million. Wireless, AT&T Wireless and Voice- jority. After lines were redrawn to ing establishment that the mission.” sultant Schwartz later tes- At the time, LGC was stream — said they remained neu- make Ney’s district more Repub- gaming community can be Ney later stated on dis- tified to the Senate Indian the world’s leading pro- tral because both LGC and Foxcom lican, he returned the favor, donat- proud of.” closure forms filed with Affairs Committee that vider of such equipment were considered capable of doing the ing to other vulnerable House Re- But Kidan’s “track rec- the House that the August Ney remained a strong and had wired the head- job. publicans. That helped him earn his ord” included a string of Abramoff gave to 2002 trip cost $3,200 and supporter of the Tigua leg- Michael Scanlon quarters of most cellular Walsh said those statements are chairmanship in 2001, leapfrogging lawsuits, judgments, liens, Ney’s campaign was paid for by the Nation- islation and Abramoff long urged Ney to phone companies, includ- “an absolute contradiction to the over a colleague with more seniority. bankruptcies and failed and took him to al Center for Public Policy after his conversation with support SunCruz ing Nextel and AT&T. documentation.” Ney and Abramoff, whom DeLay businesses. His Dial-a- Scotland. Research, a conservative Dodd. Casinos. During the next year, Ney awarded the license to Fox- once described as “one of my closest Mattress franchise in the advocacy group on whose Schwartz said that in LGC worked with the ar- com on Nov. 26, 2002, Walsh said. and dearest friends,” crossed paths District was in bankruptcy. He had board Abramoff served. The Wash- August 2002 — a month after Ney’s chitect of the Capitol and the House He declined to make public a copy of as early as 1996. That year Ney took filed personal bankruptcy, and he ington Post reported last year that reported conversation with Dodd Information Resources office to de- documents relating to the agree- a trip to Montenegro sponsored by a had surrendered his law license in the trip was actually paid for by the and around the time of the Scotland velop a plan. ment, noting that the Freedom of In- foundation that had links to Abra- New York after being accused of Capital Athletic Foundation, which trip — Abramoff arranged for Ney Then Foxcom Wireless, an Israeli formation Act does not apply to Con- moff, who was a lobbyist for Mon- fraud. One of his mentors, Anthony reported in tax records that it spent to meet with Tigua representatives start-up telecommunications firm, gress. He noted that the work was tenegro. Moscatiello, was alleged by law en- $150,225 on the trip. in his office. Before the meeting, “in entered the picture. Foxcom, which paid for by the wireless companies A few years later, Ney paid unusu- forcement to be an accountant for Ney has said he was misled by an e-mail to me, Abramoff men- has since moved headquarters from and not by Congress, and he pointed al attention to another Abramoff cli- New York’s Gambino crime family. Abramoff about who paid for the tioned that Congressman Ney didn’t Jerusalem to Vienna, Va., and been out that the Senate also chose Fox- ent, the Florida gambling boat com- Ney later said he did not know trip. want his trip to Scotland brought up, renamed MobileAccess Networks, com. pany SunCruz, which was about Kidan’s background. “In April, 2002, I was approached as he would show his appreciation to lobbied for the job. LGC had no right to appeal. “This headquartered more than 1,000 Four months after Ney’s remarks by Mr. Abramoff, who I believed to the Tribe later,” Schwartz testified. In early 2001, Ney took charge of is not a traditional House procure- miles outside of Ney’s congressional in the Congressional Record, Boulis be a respected member of the com- The meeting lasted more than 90 the House Administration Commit- ment and, thus, House procurement district. Abramoff and his business was murdered in Fort Lauderdale. munity, and asked to go on a trip to minutes, two tribal members testi- tee, which was ultimately responsi- policies do not apply,” Betz stated in partner were trying to buy the cruise Police did not make any arrests in Scotland which Mr. Abramoff said fied at the Senate hearing. The tribal ble for the antenna job. Sometime her letter to LGC. ship fleet from Konstantinos “Gus” the case until September, when they would help support a charitable or- leaders who attended the meeting that year, exactly when is unclear, Collins, the House engineer who Boulis, but Boulis was demanding charged four men in the slaying, in- ganization, that he founded, through were pleased and impressed with Foxcom donated $50,000 to the Cap- has since retired, said, “It almost unwelcome additional terms. cluding Moscatiello and a business meetings he organized with Scottish the outcome, Schwartz said. itol Athletic Foundation, Abramoff’s seemed like the cards were stacked In March 2000, Ney used the Con- associate of Moscatiello’s whom Parliament officials,” Ney said in a “During that meeting, Congress- charity. Foxcom officials have de- for them.” gressional Record to assail Boulis. Kidan had paid $250,000 as catering statement last November. man Ney was very animated about clined to be interviewed about the After the contract was awarded, “On the Ohio River we have gam- consultants. Ney’s report to Congress listed as Mr. Abramoff’s skill and repute as a donation or the wireless project. A Foxcom listed Abramoff as its lobby- ing interests that run clean opera- Five weeks after the Boulis killing, a purpose of the trip: “speech to leader in the lobbying circles,” spokesman for Foxcom, now Mobi- ist. Over the next two years, Foxcom tions and provide quality entertain- SunCruz officials, including Kidan, Scottish Parliamentarians.” How- Schwartz testified. “We were told leAccess, referred all questions Mon- paid Abramoff’s team $280,000. ment,” Ney wrote. “I don’t want to threw a $1,000-a-head fundraiser for ever, there is no record of Ney’s about the impending success of Mr. day to Ney’s committee. see the actions of one bad apple in Ney at Abramoff’s skybox at the speech in the Scottish Parliament’s Abramoff’s legislative plan and how Also that same year, a decision Researcher Alice Crites and Florida, or anywhere else to affect MCI Center, according to Abra- register of official visits kept by the much Congressman Ney wanted to was delayed on the antennas, which database editor Derek Willis the business aspect of this industry moff’s fundraising log. external liaison office, which is avail- help to restore the Tribe’s ability to caught House staff by surprise. contributed to this report. ABCDE

Democracy Dies in Darkness THURSDAY, DECEMBER 29, 2005 The Fast Rise and Steep Fall of Jack Abramoff

How a Well-Connected Lobbyist Became the Center of a Far-Reaching Corruption Scandal

By Susan Schmidt empire. and James V. Grimaldi Abramoff is the central figure in what Washington Post Staff Writers could become the biggest congressional corruption scandal in generations. Justice Jack Abramoff liked to slip into dia- Department prosecutors are pressing him logue from “The Godfather” as he led his and his lawyers to settle fraud and bribery lobbying colleagues in planning their next allegations by the end of this week, sources conquest on Capitol Hill. In a favorite bit, knowledgeable about the case said. Unless he would mimic an ice-cold Michael Cor- he reaches a plea deal, he faces a trial Jan. leone facing down a crooked politician’s 9 in Florida in a related fraud case. demand for a cut of Mafia gambling prof- A reconstruction of the lobbyist’s its: “Senator, you can have my answer now rise and fall shows that he was an inge- if you like. My offer is this: nothing.” nious dealmaker who hatched interlock- The playacting provided a clue to how ing schemes that exploited the machin- Abramoff saw himself ery of government and — the power behind the trampled the norms of scenes who directed mil- doing business in Wash- lions of dollars in Indian ington — sometimes for gambling proceeds to clients but more often to favored lawmakers, the serve his desire for wealth puppet master who pulled and influence. This inside the strings of officials in account of Abramoff’s key places, the business- career is drawn from BY MELINA MARA — THE WASHINGTON POST man who was building Jack Abramoff’s brash style often clashed interviews with govern- an international casino with Washington’s conservative culture. ment officials and former THURSDAY, DECEMBER 29, 2005 KLMNO PAGE 2

Lobbyist Had Huge Ambitions for Power, Wealth

BY DENNIS COOK — ASSOCIATED PRESS Jack Abramoff, right, listens to Abbe Lowell, one of his attorneys. The legal troubles of the GOP lobbyist appear to be threatening the careers of many of his colleagues and political allies. Sources familiar with the investigation say that half a dozen lawmakers are under scrutiny.

associates in the lobbying shops of Preston Abramoff, now 47, had mammoth Gates & Ellis LLP and Greenberg Traurig ambitions. He sought to build the biggest LLP; thousands of court and government lobbying portfolio in town. He opened two records; and hundreds of e-mails obtained restaurants close to the Capitol. He bought by The Washington Post, as well as those a fleet of casino boats. He produced two released by Senate investigators. Hollywood movies. He leased four arena THURSDAY, DECEMBER 29, 2005 KLMNO PAGE 3

1994 2000 2002 2004 GOP wins control of House Abramoff arranges more Abramoff and Scanlon The Washington Post for the first time in 40 lawmaker trips. They are collecting tens of reports in February that years. Abramoff joins include a week-long visit millions of dollars in Abramoff and Scanlon lobbying firm Preston to England and Scotland in fees from Indian tribes. have received at least Gates & Ellis. He May with DeLay, Delay’s In one case, they quietly $45 million from tribes begins lobbying for the wife and two aides, and a work with Ralph Reed with casinos. Abramoff Commonwealth of the June trip for DeLay aides to help Texas shut down quits Greenberg a week Northern Mariana Islands to golf’s U.S. Open aboard a tribe’s casino, then later. Shortly thereafter, Abramoff’s and quickly strikes up a a corporate jet belonging persuade the tribe to Sen. John McCain political relationship to SunCruz Casinos. pay $4.2 million to try (R-Ariz.) begins THE WASHINGTON POST with Rep. Tom DeLay Abramoff and partners buy to get Congress to investigating Abramoff’s Sens. John McCain (R-Ariz.) and Byron L. Career (R-Tex.). Abramoff SunCruz in the fall. reopen it. Indian activities. Dorgan (D-N.D.) during Abramoff hearings.

EARLY YEARS ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 THIS YEAR

1958 1995 1997 1999 2001 2003 August: Abramoff and Kidan are indicted on fraud Jack Abramoff is born in Atlantic City. Family moves to Abramoff signs Abramoff arranges Abramoff uses tribal Abramoff switches Internal audit by the and conspiracy charges in Florida in connection with California and he grows up in Beverly Hills. up the for lawmakers and money to hire lobbying firms to Louisiana Coushatta their purchase of SunCruz. 1981 Mississippi aides to take trips Ralph Reed to run Greenberg Traurig tribe finds that tribe September: Three men, including two associates Abramoff graduates from Brandeis University, comes Band of to the Marianas. anti-gambling in January. He leases a spent $18 million in one of Kidan’s, are indicted on murder and conspiracy to Washington and runs for national chairman of the Choctaw On one such trip, campaigns in the corporate jet to ferry year on lobbyists and charges in the killing of former SunCruz owner Boulis. College Republicans, where he forges bonds with Indians as a DeLay calls the South to discourage congressional staffers lawyers, mostly to October: Former Abramoff associate David H. Ralph Reed, Grover Norquist and Adam Kidan. client, the first lobbyist “one of my competition for the to the Super Bowl in Abramoff and Scanlon. casino-rich tribe closest and tribes’ casinos. Tampa. He and Michael Safavian, head of the Office of Federal Procurement 1985 he solicits. dearest friends.” Scanlon form partnership Policy in the White House Office of Management and Abramoff and Norquist take charge of Citizens for they call “Gimme Five” Budget, is indicted on charges of lying to federal America, a conservative advocacy group to share extraordinary investigators in the corruption investigation. created by drugstore magnate Lewis E. fees charged to tribal November: Scanlon pleads guilty to conspiring to Lehrman. They are asked to leave clients. In February, bribe a congressman and other public officials and after a dispute about finances. the seller of SunCruz, agrees to pay back more than $19 million he 1986 Konstantinos “Gus” fraudulently charged Indian tribal clients. Abramoff graduates from Boulis, is shot to December: Kidan pleads guilty in the SunCruz case. Georgetown law school, joins death gangland style in Fort Lauderdale, Fla. Both Scanlon and Kidan are expected to testify against brother in film company and goes to Abramoff and will cooperate in the investigation of Africa to work on “Red Scorpion,” at least half a dozen lawmakers, including a Cold War thriller released in 1989. Reed Norquist Kidan DeLay Scanlon Boulis Rep. Robert W. Ney (R-Ohio).

SOURCE: Staff reports THE WASHINGTON POST THURSDAY, DECEMBER 29, 2005 KLMNO PAGE 4

and stadium skyboxes and dreamed of from which they, too, could help him. owning a pro sports team. He was a gen- He was a man of contradictions. He erous patron in his Orthodox Jewish com- presented himself as deeply religious, yet munity, starting a boys’ religious school in his e-mails show that he blatantly deceived Maryland. Indian tribes and did business with people For a time, all things seemed possible. linked to the underworld. He had genuine Abramoff’s brash style often clashed with inside connections but also puffed himself culturally conservative Washington, but up with phony claims about his access. many people were drawn to his moxie and Abramoff’s lobbying team was made his money. He collected unprecedented up of Republicans and a few Democrats, sums — tens of millions of dollars — from most of whom he had wined and dined casino-rich Indian tribes. Lawmakers and when they were aides to powerful members their aides packed his restaurants and sky- of Congress. They signed on for the cama- boxes and jetted off with him on golf trips raderie, the paycheck, the excitement. to Scotland and the Pacific island of Saipan. “Everybody lost their minds,” recalled Abramoff offered jobs and other favors a former congressional staffer who lobbied to well-placed congressional staffers and with Abramoff at Preston Gates. “Jack was executive branch officials. He pushed his cutting deals all over town. Staffers lost own associates for government positions, their loyalty to members — they were loyal

BY DAVID GRUBBS — BILLINGS GAZETTE VIA ASSOCIATED PRESS BY RAY LUSTIG — THE WASHINGTON POST BY ECKEHARD SCHULZ — ASSOCIATED PRESS J. Steven Griles, then the deputy interior Sen. Conrad Burns (R-Mont.) has returned Benazir Bhutto, shown in a recent photo, secretary, was mentioned by Abramoff in a $150,000 in campaign contributions from came to Washington in 1995 as Pakistan’s 2001 e-mail to a client as “our guy Steve Abramoff, saying, “I hope he goes to jail and prime minister without knowing that her Griles.” His actions are being investigated. we never see him again.” military had enlisted Abramoff’s services. THURSDAY, DECEMBER 29, 2005 KLMNO PAGE 5

to money.” Abramoff while he was an undergraduate A senior Preston Gates partner warned at Brandeis and Norquist at Harvard Busi- him to slow down or he would be “dead, dis- ness School — to help Ronald Reagan pull graced or in jail.” Those within Abramoff’s an upset in the state. circle also saw the danger signs. Their boss They moved to Washington, maneu- had become increasingly frenzied about vered to take over the College Republicans money and flouted the rules. “I’m sensing — at the time a sleepy establishment orga- shadiness. I’ll stop asking,” one associate, nization — and transformed it into a right- Todd Boulanger, e-mailed a colleague. wing activist group. They were joined by Abramoff declined to comment for Ralph Reed, an ambitious Georgian whose this article. “I have advised my client not later Christian conversion would fuel his to speak, except in court,” said Neal Son- rise to national political prominence. nett, one of his attorneys. A friend of Soon they made headlines with such two decades, Rep. Dana Rohrabacher tactics as demolishing a mock Berlin Wall (R-Calif.), defended Abramoff: “I think he’s in Lafayette Park, where they also burned been dealt a bad hand and the worst, raw- a Soviet leader in effigy. “We want to shock est deal I’ve ever seen in my life. Words like them,” Abramoff told The Post at the time. bribery are being used to describe things They forged lifelong ties. At Reagan’s that happened every day in Washington 72nd-birthday party at the White House, and are not bribes.” Reed introduced Abramoff to his future Few of those interviewed would agree wife, Pam Alexander, who was work- to be quoted on the record because of the ing with Reed. She eventually converted ongoing investigation by a Justice Depart- to Judaism and embraced the Orthodox ment task force. But some who spoke on beliefs Abramoff had adopted as a teen- the condition of anonymity said they look ager. back in amazement at the heady days of Even in those early days, there were Abramoff’s rise. hints of the troubles to come. “If anyone “We weren’t outside the box,” the for- is not surprised at the rise and fall of Jack mer Preston Gates colleague said. “We Abramoff, it is me,” said Rich Bond, a for- were outside the universe.” mer chairman of the Republican National Committee. Hints of Trouble Abramoff and his crew busted the A quarter of a century ago, Abramoff College Republicans’ budget with a 1982 and anti-tax crusader Grover Norquist national direct-mail fundraising campaign were fellow Young Turks of the Reagan that ended up “a colossal flop,” said Bond, revolution. They organized Massachusetts then deputy director of the party’s national college campuses in the 1980 election — committee. He said he banished the three THURSDAY, DECEMBER 29, 2005 KLMNO PAGE 6

from GOP headquarters, telling Abramoff: Namibia, which was then ruled by South “You can’t be trusted.” Africa. Actors in the film said they saw Shortly thereafter, Abramoff was run- South African soldiers on the set. When ning Citizens for America, a conservative the film was released in 1989, anti-apart- grass-roots group founded by drugstore heid groups demonstrated at the theaters. magnate Lewis E. Lehrman. Abramoff was The movie ran into financial difficulty dur- in frequent contact with Marine Lt. Col. ing and after production, but Abramoff Oliver L. North, the Reagan White House’s produced a sequel, “Red Scorpion 2.” Iran-contra mastermind, about grass-roots efforts to lobby Congress for the Nicara- Mysterious Entrance guan contras, according to records in the When Republicans wrested control National Security Archive. of the House from the Democrats in 1994, One of Abramoff’s most audacious Abramoff turned his focus back to Wash- adventures involved Jonas Savimbi, the ington politics. With Norquist’s help, he Angolan rebel leader who had U.S. support reinvented himself as a Republican lobbyist but was later found to have ordered the on heavily Democratic K Street. Norquist murders of his movement’s representative was one of the intellectual architects of the to the United States and that man’s rela- Republican Revolution and a muse for its tives. With Savimbi, Abramoff organized a leader, Newt Gingrich (R-Ga.), soon to be “convention” of anticommunist guerrillas speaker of the House. from Laos, Nicaragua and Afghanistan in Abramoff also counted on his father, a remote part of Angola. Afterward, Leh- who had a wealth of connections from rman fired Abramoff amid a dispute about his days as president of the Diners Club the handling of the group’s $3 million bud- credit card company. Frank Abramoff had get. once looked into operating a casino in the Abramoff also worked on behalf of Commonwealth of the Northern Mariana the apartheid South African government, Islands, U.S. territory that includes Saipan. which secretly paid $1.5 million a year to He introduced his son around, and the the International Freedom Foundation, a Marianas became one of the first impor- nonprofit group that Abramoff operated tant clients of the new lobbyist. out of a townhouse in the 1980s, according Soon the younger Abramoff developed to sworn testimony to the South African a key alliance with Rep. Tom DeLay, a con- Truth and Reconciliation Commission. servative Republican from Texas who was At the same time, Abramoff dabbled working his way up in the House leader- as a Hollywood producer, shepherding ship. The two met at a DeLay fundraiser on an anticommunist movie, “Red Scor- Capitol Hill in 1995, according to a former pion,” starring Dolph Lundgren, filmed in senior DeLay aide. The aide recalled that THURSDAY, DECEMBER 29, 2005 KLMNO PAGE 7

Edwin A. Buckham, then DeLay’s chief of learned that Abramoff had traveled to staff, told his boss: “We really need to work Islamabad and had sold his services to the with Abramoff; he is going to be an impor- Pakistani military without the prime min- tant lobbyist and fundraiser.” ister’s knowledge. DeLay, a Christian conservative, did In the Senate, Abramoff befriended not quite know what to make of Abramoff, Republicans and their staffers, along with who wore a beard and a yarmulke. They some Democrats on the appropriations forged political ties, but the two men never committees. In August 1999, he signed became personally close, according to asso- up for the National Republican Senatorial ciates of both men. Committee’s “Tartan Invitational,” in which Almost from the start, Abramoff a half-dozen Republican senators and their struck some rival lobbyists as a strange aides spent a few days with about 50 lob- figure who operated on the margins. He byists golfing at the exclusive St. Andrews even turned up as a representative of the Links in Scotland. Pakistani military when Prime Minister The following year, Abramoff figured Benazir Bhutto went to Washington in out how to use his clients to fund his own 1995 to seek the return of $600 million trips to St. Andrews with lawmakers. The the Islamabad government had paid for 28 first guests were DeLay and his aides. F-16 fighters. The sale had been blocked by the U.S. government over concerns about Team Abramoff Pakistan’s nuclear program. With Norquist’s help, Abramoff Bhutto’s Washington lobbyists were at secured a spot on the transition team for the Pakistani Embassy savoring her suc- the Interior Department after George W. cessful meeting with President Bill Clinton Bush was elected president in 2000. He when a man in a suit made a mysterious tried to place several officials in Interior, entrance. including an unsuccessful attempt to land “Suddenly, this portly guy steps in and a former Marianas official in the top spot sits down. He says nothing,” recalled one of overseeing U.S. territories. the lobbyists. The Americans asked him to He was able to befriend J. Steven Griles, introduce himself. He folded his arms and the deputy interior secretary, e-mails and refused. interviews show. By the summer of 2001, “Finally, he says, ‘I am Jack Abramoff,’ ” Abramoff was referring to him in an e-mail recalled the lobbyist, a well-connected to a client as “our guy Steve Griles.” Federal Democrat. They had never heard of him. investigators are now looking into whether Abramoff explained that he was “close to Griles interceded on behalf of Abramoff Newt.” and improperly discussed a job with the The astonished lobbyists for Bhutto lobbyist while in a position to affect his THURSDAY, DECEMBER 29, 2005 KLMNO PAGE 8

Dealmaker Faces Rising Pressure to Cut Another Deal clients. Griles denied any wrongdoing in Abramoff drove his colleagues hard, recent testimony to the Senate. often e-mailing them late into the night. Abramoff’s team also cultivated Roger Many more than doubled their Hill pay Stillwell, the Marianas desk officer at the when they went to work with him, some Interior Department. In a recent inter- earning salaries of $200,000 to $300,000. view, Stillwell said he accepted dinners “He hired a bunch of white, middle- at Abramoff’s restaurant, Signatures, and class Irish Catholic guys who wanted to tickets to Washington Redskins games. exceed their parents’ expectations,” said But he said that all those actions occurred one of the young lobbyists who himself fit while he was a contract employee at Inte- that description. “He was always pushing, rior, not a federal worker. He also said he demanding. He would say, ‘We are a family, sent Abramoff copies of e-mails he sent to we will work 24 hours a day, we will win.’ ” his boss, but he noted that none of them Team Abramoff included former staff- contained confidential information and ers to DeLay, as well as to Sen. Conrad Burns that “there’s nothing wrong with doing (R-Mont.), head of the Senate Appropria- that.” tions panel’s Interior subcommittee; Rep. Abramoff wallowed in his access, real Robert W. Ney (R-Ohio), chairman of the and imagined. When his crack administra- House Administration Committee; Rep. tive assistant Susan Ralston bolted for a John T. Doolittle (R-Calif.), who has served position with White House political adviser on the key House committee that oversees Karl Rove, Abramoff told colleagues he tribes; and Sen. Harry M. Reid (D-Nev.), had gotten her the job even though it was now minority leader. Ralston’s old boss, Reed, who made it hap- Abramoff gathered his troops for strat- pen, her former colleagues said. egy meetings that were “a great show,” rol- Even glowing profiles in the New York licking forums where ethical niceties were Times and Wall Street Journal noting derided with locker room humor, recalled Abramoff’s extensive influence and impres- a former Preston Gates colleague. “Jack sive income were not enough. Abramoff would say, ‘I gave that guy 10 grand and he quietly paid op-ed columnists thousands voted against me!’ “ the former associate of dollars to write favorably about his cli- recalled. ents, including one writer for Copley News Bill padding was openly discussed, Service who disclosed this month that he according to Abramoff’s Greenberg Trau- had been paid for as many as two dozen rig e-mails that have been released by the columns since the mid-1990s. Senate Indian Affairs Committee. For g The Abramoff Galaxy Jack Abramoff is negotiating a possible deal with federal many interlocking political and business entities to raise prosecutors to plead guilty and cooperate with their money, pay for lawmakers’ trips and other favors, fund his investigation into corruption in Washington. For more pet projects, and gain influence for himself and his clients. than five years, Abramoff was one of the capital’s most The Justice Department has been looking into his relation- prominent Republican lobbyists. E-mails, documents and ships with half a dozen members of Congress, as well as interviews with his former associates show that he set up with Hill aides, government officials and business associates. $ $

Law and lobbying firms Family charities Preston Gates & Ellis, Capital Athletic Foundation, Greenberg Traurig Eshkol religious academy Abramoff worked for both

$ $ $ $ $

Abramo Michael Scanlon ck ff Ja Pleaded guilty to fraud and $ Nonprofits Clients bribery conspiracy. American International Indian tribes, Center for Public corporations, Policy Research Commonwealth of the Northern Mariana $ Allegedly used to mask Islands lobbying activity $

Grover Norquist Ralph Reed (Americans for Funding, policy, Coordinated grass- Tax Reform) tribal recognition, roots lobbying for Used to lobby for Indian gambling gambling interests gambling recognition Adam Kidan Pleaded guilty to SunCruz conspiracy to Casinos defraud. Sports and Trips Abramoff purchased entertainment $ fleet in 2000. Company Abramoff leased seller was killed in 2001. sports arena boxes, Trips, Abramoff indicted on opened restaurants. jobs fraud charges. Statements Lobbying by Ney to support purchase Trips Sports tickets, drinks, dinners $ U.S. government AGENCIES CONGRESS ª David H. Safavian Among those under scrutiny: Former OMB ª Rep. Robert W. Ney contracting official ª Sen. Conrad Burns Indicted on charges of lying ª Rep. Tom DeLay ª J. Steven Griles ª Rep. John T. Doolittle Former No. 2 official at the Interior Department Under investigation

BY JAMES V. GRIMALDI AND LAURA STANTON — THE WASHINGTON POST THURSDAY, DECEMBER 29, 2005 KLMNO PAGE 10

example, in April 2000, Abramoff had lob- An exasperated Vasell e-mailed back: byist Shawn Vasell working on a monthly “You only had 2 hours. We are not even invoice to the Mississippi Band of Choctaw close to this number . . . .” Abramoff’s solu- Indians, telling him to “be sure we hit the tion: “Add 60 hours for me,” and “pump up” $150k minimum. If you need to add time the hours for three or four other lobbyists. for me, let me know.” The Choctaws were one of a half-

CLARION-LEDGER VIA ASSOCIATED PRESS The Golden Moon Hotel and Casino in Philadelphia, Miss., is the Mississippi Band of Choctaw Indians’ second hotel-casino. The Choctaws were among a half-dozen Indian tribes that gave more than $80 million to Jack Abramoff between 2000 and 2003. THURSDAY, DECEMBER 29, 2005 KLMNO PAGE 11

dozen Indian tribes who gave more than founded and where he sent his children to $80 million to Abramoff between 2000 be educated. and 2003. Not only were the tribes paying Another Abramoff financial vehicle Abramoff’s lobbying firm, they were also was the nonprofit American International paying Abramoff’s secret outside partner, Center, a Rehoboth Beach, Del., “think Michael Scanlon, who charged the Indi- tank” set up by Scanlon, who staffed it ans millions of dollars for public relations with beach friends from his summer job work and split the money with Abramoff. as a lifeguard. The center became a means Scanlon’s public relations fees did not have for Abramoff and Scanlon to take money to be disclosed under lobbying rules, thus from foreign clients that they did not want making it possible for the magnitude of to officially represent. Some of the funds their take from the tribes to be kept from came from the government of Malaysia. public view. The two dubbed their scheme Banks and oil companies there were mak- “Gimme Five,” according to e-mails in ing deals in Sudan, where U.S. companies which Abramoff disparaged their clients as were barred on human rights grounds. “morons” and “troglodytes.” Sudan was among several oil-rich nations E-mails show that Abramoff put his in Africa, Asia and the Middle East that money into an array of political and per- Abramoff eyed as venues for lucrative sonal projects. energy deals. Abramoff told associates he The nonprofit Capital Athletic Foun- wanted to become a go-to person for U.S. dation, for example, allowed him to companies seeking to do business with oil- schmooze with Washington’s movers and patch nations. shakers at charity affairs. He put a congres- But by early 2003, Abramoff’s private sional spouse — Julie Doolittle, wife of the dealmaking had spiraled out of control. California lawmaker — on his payroll to His religious academy was draining his plan at least one event. The congressman’s income, and his restaurants were hem- office has said that there was no connection orrhaging money. He told Scanlon in an between his wife’s work and official acts. e-mail that February that he was at “rock The foundation was ostensibly created bottom” and needed funds immediately. to help inner-city children through orga- By the next day, he was frantic. “Mike!!! I nized sports. There is no evidence money need the money TODAY! I AM BOUNC- went to city kids, but the foundation did ING CHECKS!!!” fund some of Abramoff’s pet projects: a sniper school for Israelis in the West Bank, ‘Enron of Lobbying’ a golf trip to Scotland for Ohio congress- To Abramoff’s rivals in the niche world man Ney and others, and a Jewish reli- of tribal lobbying, however, he was still a gious academy in Columbia that Abramoff confounding success. THURSDAY, DECEMBER 29, 2005 KLMNO PAGE 12

Team Abramoff was stealing away that his boss was secretly getting money tribal clients from other lobbyists and from Scanlon, according to a source privy charging fees of $150,000 a month or to the conversation. more — 10 or 20 times what the Indians “This could be the Enron of lobbying,” had been paying to others. Team mem- Ring told the colleague. bers did it by touting their ties to powerful Rival lobbyists, including some Republicans on Capitol Hill and stoking Republicans, were comparing notes about tribal worries that Congress might try to what they considered Abramoff’s outra- tax casino proceeds. Abramoff and Scanlon geous conduct. also quietly got involved in tribal elections. One of them contacted The Post in fall Sen. Byron L. Dorgan (N.D.), the rank- 2003. In early 2004, The Post published a ing Democrat on the Indian Affairs Com- detailed account of Abramoff’s tribal lobby- mittee, remembers first hearing “vague ing, showing how four of Greenberg Trau- complaints” about Abramoff in June 2003 rig’s Indian clients had paid $45 million, from three Democratic lobbyists. The most of it in fees to Scanlon’s firm. Within tribes had traditionally supported Demo- weeks, Greenberg initiated an internal crats, but Abramoff was capturing them investigation, Abramoff was ousted and the for Republicans, getting them to boost Senate Indian Affairs Committee began its their contributions and give two-thirds to own inquiry, which unearthed hundreds his party. of incriminating e-mails from Abramoff’s There was even more buzz on Capi- Greenberg Traurig computer files. tol Hill about Scanlon, the gregarious for- Abramoff had another problem that mer DeLay press aide who had become a few people in Washington knew about. multimillionaire almost overnight. His He and another old friend from Col- old friends were astonished that Scan- lege Republican days, Adam Kidan, had lon, then in his early thirties, was travel- purchased in 2000 a fleet of Florida casino ing to the beach by helicopter and living boats for $147.5 million. By 2004, SunCruz in a waterfront Rehoboth mansion that Casinos was bankrupt, and the two men he bought for nearly $5 million in cash. A were being sued by lenders for $60 mil- Louisiana paper, the Town Talk of Alex- lion in loan guarantees, accused of faking andria, reported in September 2003 that a wire transfer for the $23 million they had the Coushatta tribe paid Scanlon’s public promised to put into the deal. relations firm $13.7 million, a figure that Even more serious, Abramoff and amazed tribal lobbyists as well as some Kidan were targets of a Florida federal of Abramoff’s colleagues. It was around grand jury investigating the SunCruz wire that time that one colleague, Kevin Ring, transfer. And local authorities were prob- learned from one of Abramoff’s assistants ing the gangland-style slaying of the man THURSDAY, DECEMBER 29, 2005 KLMNO PAGE 13

who had sold them the cruise line, Kon- partners — Scanlon and Kidan — have stantinos “Gus” Boulis. pleaded guilty and have agreed to testify Greenberg Traurig officials have said about bribery and fraud in Florida and that they asked Abramoff to resign in Washington. March 2004 over unauthorized personal Three men have been arrested in transactions. They have noted that they the Boulis killing. Two of the three were had no knowledge of his financial arrange- Kidan’s associates; one of them is known ment with Scanlon before they received to law enforcement as an associate of the inquiries from The Post. Gambino crime family. However, two months before the firm Another former Abramoff associate, requested Abramoff’s resignation, Green- David H. Safavian — most recently head berg lawyers representing Abramoff in the of the Office of Federal Procurement Policy SunCruz bankruptcy summoned Scanlon in the Office of Management and Budget to the firm’s Miami headquarters to ask — has been indicted on five felony counts about the relationship, according to two of lying to federal investigators about his people close to Scanlon. Scanlon told them dealings with Abramoff while he was chief he had paid Abramoff $19 million out of the of staff at the General Services Administra- money he had received in public relations tion. fees from tribal clients. Cesar L. Alvarez, Within the past year, Abramoff began president and chief executive of Greenberg selling off assets such as his restaurants and Traurig, said the firm will not comment on has told his lawyers he is broke. He faces any meeting with Scanlon. the possibility of lengthy prison sentences By the spring of 2004, the Justice and stiff financial penalties that could be Department had launched an investiga- reduced if he cooperates. tion of Abramoff and Scanlon that quickly All these developments have added to developed into a multi-agency task force. the pressure on Abramoff to reach his own deal before the SunCruz trial begins on Pressure to Plead Jan. 9. Nearly two years later, Abramoff’s legal Alan K. Simpson (R), the former Wyo- troubles appear to threaten the careers of ming senator who was in Washington dur- many of his colleagues and political allies. ing the last big congressional scandal — Sources familiar with the Justice Depart- the Abscam FBI sting in the late 1970s and ment investigation say that half a dozen early 1980s, in which six House members lawmakers are under scrutiny, along with and one senator were convicted — said Hill aides, former business associates and the Abramoff case looks bigger. Simpson government officials. said he recently rode in a plane with one of Two of Abramoff’s former business Abramoff’s attorneys, who told him: “There THURSDAY, DECEMBER 29, 2005 KLMNO PAGE 14

are going to be guys in your former line of “This is at a scale that is really shock- work who are going to be taken down.” ing,” said Edwards, who teaches public and Dozens of lawmakers — who were international affairs at Princeton. “There showered with trips, sports and concert is a certain kind of arrogance that in the tickets, drinks and dinners — are returning past you might not have had. They were so campaign contributions from Abramoff supremely confident that there didn’t seem and his clients and calling him a fraud and to be any kind of moral compass here.” a crook. Burns, one of half a dozen legislators Researcher Alice Crites contributed to this report. under scrutiny by the federal Abramoff task force, returned $150,000 in campaign contributions this month. Sunday, January 2, 2006 “This Abramoff guy is a bad guy,” CORRECTION: A Dec. 29 article about Burns told a Montana television station. “I former lobbyist Jack Abramoff cited an hope he goes to jail and we never see him incorrect date for an e-mail he sent about again. I wish he’d never been born, to be client bills. The e-mail was sent in April right honest with you.” 2001, not April 2000. Former Republican congressman Mickey Edwards (Okla.), usually a defender of lobbying and Congress, said there have Thursday, January 12, 2006 always been members who get caught CORRECTION: A Dec. 29 article mis- “stuffing money in their pants.” But he said stated the position once held by the father this is different — a “disgusting” and dis- of former lobbyist Jack Abramoff. Frank turbingly broad scandal driven by lobbyists Abramoff was president of the franchises whose attitude seemed to be “government unit of Diners Club, not the parent com- to the highest bidder.” pany. DAILY 12-29-05 MD M2 A1 CMYK

Weather Today: Cloudy, rain and fog. High 55. Low 40. Friday: Partly sunny, breezy. FINAL High 52. Low 36. EDITION Details, B8 ABCDE 35¢ Prices may vary in areas outside metropolitan 129th Year No. 24 M2 DC MD VA Thursday, December 29, 2005 M1 M2 M3 M4 V1 V2 V3 V4 Washington. (See box on A2) The Fast Rise and Steep Fall of Jack Abramoff How a Well-Connected Lobbyist Became the Center of a Far-Reaching Corruption Scandal By Susan Schmidt Abramoff saw himself — the power plea deal, he faces a trial Jan. 9 in Greenberg Traurig LLP; thousands of and James V. Grimaldi behind the scenes who directed millions Florida in a related fraud case. court and government records; and Washington Post Staff Writers of dollars in Indian gambling proceeds A reconstruction of the lobbyist’s rise hundreds of e-mails obtained by The to favored lawmakers, the puppet and fall shows that he was an ingenious Washington Post, as well as those Jack Abramoff liked to slip into master who pulled the strings of officials dealmaker who hatched interlocking released by Senate investigators. dialogue from “The Godfather” as he led in key places, the businessman who was schemes that exploited the machinery of Abramoff, now 47, had mammoth his lobbying colleagues in planning their building an international casino empire. government and trampled the norms of ambitions. He sought to build the next conquest on Capitol Hill. In a Abramoff is the central figure in what doing business in Washington — biggest lobbying portfolio in town. He favorite bit, he would mimic an ice-cold could become the biggest congressional sometimes for clients but more often to opened two restaurants close to the Michael Corleone facing down a corruption scandal in generations. serve his desire for wealth and influence. Capitol. He bought a fleet of casino crooked politician’s demand for a cut of Justice Department prosecutors are This inside account of Abramoff’s career boats. He produced two Hollywood Mafia gambling profits: “Senator, you pressing him and his lawyers to settle is drawn from interviews with movies. He leased four arena and can have my answer now if you like. My fraud and bribery allegations by the end BY MELINA MARA — THE WASHINGTON POST government officials and former stadium skyboxes and dreamed of offer is this: nothing.” of this week, sources knowledgeable Jack Abramoff’s brash style often clashed associates in the lobbying shops of The playacting provided a clue to how about the case said. Unless he reaches a with Washington’s conservative culture. Preston Gates & Ellis LLP and See ABRAMOFF, A6, Col. 1

Destruction From Grass Fires in Texas, Oklahoma Homeland Security Is Faulted in Audit Inspector General Points to FEMA, Cites Mismanagement Among Problems

By Dan Eggen and infrastructure,” the report said. Washington Post Staff Writer In addition, the report found, “the circumstances created by Hur- Nearly three years after it was ricanes Katrina and Rita provide an formed, the immense Department unprecedented opportunity for of Homeland Security remains ham- fraud, waste and abuse,” primarily pered by severe management and fi- because FEMA’s grant and contract nancial problems that contributed programs are still not being man- to the flawed response to Hurricane aged properly. Katrina, according to an independ- “While DHS is taking several ent audit released yesterday. steps to manage and control spend- The report by Homeland Securi- ing under Katrina, the sheer size of ty Inspector General Richard L. the response and recovery efforts Skinner aimed some of its most will create an unprecedented need pointed criticism at one of DHS’s for oversight,” the report con- major entities, the Federal Emer- cludes. gency Management Agency. Katri- The audit is the latest in a series na and a subsequent storm, Rita, in- of tough assessments of the belea- creased the load on FEMA’s “already overburdened resources See DHS, A4, Col. 2 Bush Team Rethinks

BY MATT SLOCUM — ASSOCIATED PRESS A burned-out truck stands in front of damaged buildings while one home still smolders in Cross Plains, Tex. The town was one of several in Its Plan for Recovery drought-stricken Texas and Oklahoma struck by wildfires. Five people were killed, and 100 houses and other buildings were destroyed. Story, A2. New Approach Could Save Second Term By Peter Baker ment of events on the ground in and Jim VandeHei Iraq that included admissions Life and Romance in 160 Characters or Less Washington Post Staff Writers about how some of his expecta- tions had been frustrated. The for- Brevity Gains New Meaning as Popularity of Cell Phone Text Messaging Soars President Bush shifted his rhet- mula helped Bush regain his politi- oric on Iraq in recent weeks after cal footing as record-low poll By Yuki Noguchi saging, “I can put it out there and feel like I’m this short form, language is acquiring an intense debate among advisers numbers began to rebound. Now Washington Post Staff Writer not saying it. I find there’s a little more free- acronyms — “H8” (hate), “iluvu” (I love you) about how to pull out of his politi- his team is rethinking its approach dom to say what you’re feeling.” and “ruok” (are you okay) — that allow text cal free fall, with senior adviser to his second term in hopes of sal- Andrew Weigle can fully express himself in A generation ago, those kinds of missives messages and other instant messages to relay Karl Rove urging a campaign-style vaging it. several dozen characters or less. came in handwritten form, taking days or information about life’s mundane details as attack on critics while younger The Iraq push culminated the That’s the amount of space he gets on his weeks to arrive. Then e-mail made communica- well as its emotional brambles. aides pushed for more candor rockiest political year of this presi- Motorola Razr phone to compose text messag- tion much quicker but still allowed time and About 7.3 billion text messages are sent about setbacks in the war, accord- dency, which included the demise es, which he sends mostly to friends and, on at space for reflection. within the United States every month, up from ing to Republican strategists. of signature domestic priorities, least one occasion, to a girlfriend to break up. Now, text messaging — like its older cousin 2.9 billion a month a year ago, according to The result was a hybrid of the the indictment of the vice presi- “It was easier to say, ‘Look, things just aren’t instant messaging — is giving rise to a new, CTIA, the wireless industry’s trade group. two approaches as Bush lashed dent’s top aide, the collapse of a working out’ ” over the text message, said Wei- electronic written culture that is truncating all After Hurricane Katrina knocked out or over- out at war opponents in Congress, gle, 23, who lives in Falls Church. “I’m not the of that. A text message sent via mobile phone is loaded communications systems, one of the then turned to a humbler assess- See BUSH, A4, Col. 2 most verbal person when it comes to express- usually confined to 160 characters or less and ing emotions,” he admitted, but with text mes- takes several seconds to send. To accommodate See TEXT MESSAGING, A10, Col. 1 K U.N. official endorses Iraqi parliamentary election. | A19 New Report Facing Servitude, Ethiopian Girls Run for a Better Life

DAILY 12-29-05 MD M2By Emily A6 Wax BLACK Professional running in Ethiopia was DAILY 12-29-05 MD M2 A7 BLACK Puts Blame on Washington Post Foreign Service long dominated by men, and the country has produced some of the world’s best ADDIS ABABA, Ethiopia — Virtually male distance runners. The legendary Local Officials the only way for Tesdale Mesele, 13, to Haile Gebrselassie, 33, has broken 17 avoid soon being married into a life of world records and won two Olympic gold A6 Thursday, December 29, 2005 M2 NATIONAL NEWS housework and childbearingThe was Washington to run. medals. Post But in the last decade,The deter- Washington Post NATIONAL NEWS M2 Thursday, December 29, 2005 A7 In Beslan Siege So that’s what the spunky girl with mined female runners like Meseret Defar, matchstick legs and a ponytail did. She 22, have also begun winning Olympic 1994 2000 2002 2004 ran along the rutted dirt roads of the Ethi- medals, world championship races and GOP wins control of House Abramoff arrangesBy more Peter FinnAbramoff and Scanlon The Washington Post opian highlands, barefoot or in torn marathons. Today, according to an Ethio- Washington Post Foreign Service for the first time in 40 lawmaker trips. They are collecting tens of reports in February that sneakers, trying to improve her endur- pian sports magazine, seven of theDealmaker 10 top- Faces Rising Pressure to Cut Another Deal include a week-long visit millions of dollars in Abramoff and Scanlon ance. She ran up the wide, cracked steps earning athletes in Ethiopia are women. years. Abramoff joins MOSCOW, Dec. 28 — In the month before to England and Scotland in fees from Indian tribes. have received at least to Meskel Square in the capital, while Inspired by these new national hero- lobbying firm Preston the Beslan school siege in which 331 hostages ABRAMOFF, From A6 outrageous conduct. . He May with DeLay, Delay’s In one case, they quietly $45 million from tribes goats wandered by and clouds of pollu- ines, Tesdale and thousands of other girls Gates & Ellis were killed last year, Russian security services The Abramoff Galaxy One of them contacted The Post in fall begins lobbying for the wife and two aides, and a work with Ralph Reed with casinos. Abramoff tion turned the air charcoal gray. have left their villages and come to the received intelligence that terrorists might try to Abramoff’s team also cultivated Roger 2003. In early 2004, The Post published a Commonwealth of the June trip for DeLay aides to help Texas shut down quits Greenberg a week And once she felt she was fast enough, capital, living with relatives in hard- seize a school in the region on the first day of Stillwell, the Marianas desk officer at the Jack Abramoff is negotiating a possible deal with federal many interlocking political and business entities to raise detailed account of Abramoff’s tribal Northern Mariana Islands to golf’s U.S. Open aboard a tribe’s casino, then later. Shortly thereafter, Tesdale ran around the country’s only scrabble neighborhoods, training on their classes, but instructions for tightened security Interior Department. In a recent prosecutors to plead guilty and cooperate with their money, pay for lawmakers’ trips and other favors, fund his lobbying, showing how four of Greenberg Abramoff’s and quickly strikes up a a corporate jet belonging persuade the tribe to Sen. John McCain track, a rough ring of patched and pot- own and dreaming of being ableinterview, to com- Stillwell said he accepted Traurig’s Indian clients had paid $45 were ignored, according to preliminary findings investigation into corruptionBY EMILY WAXin — Washington. THE WASHINGTON POST For more pet projects, and gain influence for himself and his clients. political relationship to SunCruz Casinos. pay $4.2 million to try (R-Ariz.) begins holed rubber inside Addis Ababa Stadi-THE WASHINGTONpete. POST of a parliamentary investigation released dinners at Abramoff’s restaurant, million, most of it in fees to Scanlon’s with Abramoff and partners buy to get Congress to investigating Abramoff’s um, hoping to be spotted by a running But there are other, more practical rea- Meseret Defar, 22, the 2004 Olympicthan gold fivemedalist years, in the Abramoff 5,000 meters, was oneholds of her the capital’s most The Justice Department has been looking into his relation- Rep. Tom DeLay Wednesday. Sens. John McCain (R-Ariz.) and Byron L. Signatures, and tickets to Washington firm. Within weeks, Greenberg initiated (R-Tex.). Abramoff SunCruz in the fall. reopen it. Indian activities. club and win a tiny sponsorship known as adopted 5-year-old, Maunt, left, andprominent a relative, Nardos Republican Mesfin. lobbyists.Defar has become E-mails, an documents and ships with half a dozen members of Congress, as well as Career Although the Russian Interior Ministry sent Dorgan (D-N.D.) during Abramoff hearings. Redskins games. But he said that all those an internal investigation, Abramoff was “calorie money.” icon for many young Ethiopian womeninterviews who have withbegun his running former in hopes associates of competing. show that he set up with Hill aides, government officials and business associates. warning telegrams to regional authorities, the See ETHIOPIA, A20, Col. 1 actions occurred while he was a contract ousted and the Senate Indian Affairs EARLY YEARS ’94 ’95 ’96 ’97 ’98 ’99 ’00investigation ’01 found, ’02 only a ’03single unarmed ’04 THIS YEAR employee at Interior, not a federal worker. Committee began its own inquiry, which policewoman was stationed outside Beslan’s He also said he sent Abramoff copies of $ unearthed hundreds of incriminating 1958 1995 1997 1999 School2001 No. 1 when at least 32 2003terrorists stormed August: Abramoff and Kidan are indicted on fraud e-mails INSIDEhe sent to his boss, but he noted $ e-mails from Abramoff’s Greenberg Jack Abramoff is born in Atlantic City. Family moves to Abramoff signs Abramoff arranges Abramoff uses tribal it on AbramoffSept. 1, 2004.switches She was takenInternal hostage, audit by too.the and conspiracy charges in Florida in connection with that none of them contained confidential Traurig computer files. California and he grows up in Beverly Hills. up the for lawmakers and money to hire Citinglobbying numerous firms to failings byLouisiana local and Coushatta region- their purchase of SunCruz. information and that “there’s nothing Abramoff had another problem that few al officials before the attack, the report found E.U. Launches A Pop Hitmaker Phoenixwrong Suns with doing that.”A Few of Our Today’s contents are on A2 people in Washington knew about. 1981 Mississippi aides to take trips Ralph Reed to run Greenberg Traurig tribe finds that tribe September: Three men, including two associates “negligence and carelessness in facing a real ter- Abramoff wallowed in his access, real Law and He and another old friend from College Abramoff graduates from Brandeis University, comes Band of to the Marianas. anti-gambling in January. He leases a spent $18 million in one GPSof Kidan’s,Satellite are indicted on murderAt and Sweetconspiracy 16 Defeat Wizards Favorite Things Choctaw On one such trip, campaigns in the roristcorporate threat.” jet to ferry year on lobbyists and and imagined. When his crack The Post onlobbying the Internet: firms Family charities Republican days, Adam Kidan, had to Washington and runs for national chairman of the The assault by local police, armed civilians Europecharges launches in the killing the of former SunCruzWith owner his voice, Boulis. his The Washingtonadministrative assistantIf little Susan things Ralston matter purchased in 2000 a fleet of Florida casino College Republicans, where he forges bonds with Indians as a DeLay calls the South to discourage congressional staffers lawyers, mostly to washingtonpost.comPreston Gates & Ellis, Capital Athletic Foundation, client, the first lobbyist “one of my competition for the and federalto the Super troops Bowl inthat ultimatelyAbramoff endedand Scanlon. the first October:satellite inFormer its Abramoff associatelooks, David his hitH. single Wizards fallbolted to the for a positionthe with most, White then House2005 boats for $147.5 million. By 2004, Ralph Reed, Grover Norquist and Adam Kidan. “Run It!” and a gold Greenberg Traurig Eshkol religious academy casino-rich tribe closest and tribes’ casinos. siegeTampa. was marked He and Michael by “a whole number of blun- $4.5Safavian billion Galileo, head of the Office of Federal Procurement Phoenix Suns,political adviser Karlwas Rove, a very Abramoff good year told SunCruz Casinos was bankrupt, and the global positioning album, Chris Brown has 104-99, endingcolleagues a he had gottenfor the her many the joboriginal even Abramoff worked two men were being sued by lenders for 1985 he solicits. dearest friends.” ders Scanlonand shortcomings,” form partnership the commission’s Policy in the White House Office of Management and Contents Abramoff and Norquist take charge of Citizens for chairman,they call Alexander “Gimme Five” Torshin, said in present- system,Budget, a bid is indicted to break on charges of itlying all to— federal except the three-gamethough winning it was Ralston’sand inspiredold boss, decorator Reed, for both  2005 $60 million in loan guarantees, accused of Range Rover. STYLE, C1 touches that make The America, a conservative advocacy group ing theto sharereport extraordinary to parliament Wednesday. the U.S.investigators monopoly in the on corruption investigation. streak. SPORTS,who E1made it happen, her former Washington faking a wire transfer for the $23 million created by drugstore magnate Lewis E. fees charged to tribal space-based networks. colleagues said. lasting memories. Post they had promised to put into the deal. November: Scanlon pleads guilty to conspiring to Even glowing profiles in the New York 1 Even more serious, Abramoff and Lehrman. They are asked to leave See BESLAN,clients. In February,A16, Col. 1 WORLD, A14 Community News: The local news Extra is behind the Home section. HOME, H1 bribe a congressman and other public officials and Times and Wall Street Journal noting Kidan were targets of a Florida federal after a dispute about finances. the seller of SunCruz, agrees to pay back more than $19 million he $ $ Konstantinos “Gus” Abramoff’s extensive influence and $ grand jury investigating the SunCruz wire 1986 fraudulently charged Indian tribal clients. impressive income were not enough. transfer. And local authorities were Abramoff graduates from Boulis, is shot to $ December: Kidan pleads guilty in the SunCruz case. Abramoff quietly paid op-ed columnists $ probing the gangland-style slaying of the Georgetown law school, joins death gangland style Both Scanlon and Kidan are expected to testify against thousands of dollars to write favorably man who had sold them the cruise line, brother in film company and goes to in Fort Lauderdale, Fla. Abramoff and will cooperate in the investigation of about his clients, including one writer for Abram Konstantinos “Gus” Boulis. Africa to work on “Red Scorpion,” Michael Scanlon k of at least half a dozen lawmakers, including Copley News Service who disclosed this ac f Greenberg Traurig officials have said a Cold War thriller released in 1989. Pleaded guilty to fraud and J Reed Norquist Kidan DeLay Scanlon Boulis Rep. Robert W. Ney (R-Ohio). $ Nonprofits month that he had been paid for as many Clients bribery conspiracy. that they asked Abramoff to resign in as two dozen columns since the American International March 2004 over unauthorized personal SOURCE: Staff reports THE WASHINGTON POST Indian tribes, mid-1990s. Center for Public transactions. They have noted that they corporations, Abramoff drove his colleagues hard, Policy Research had no knowledge of his financial often e-mailing them late into the night. Commonwealth of arrangement with Scanlon before they Many more than doubled their Hill pay the Northern Mariana $ Allegedly used to mask received inquiries from The Post. lobbying activity when they went to work with him, some Islands However, two months before the firm Lobbyist Had Huge Ambitions for Power, Wealth earning salaries of $200,000 to $300,000. $ requested Abramoff’s resignation, “He hired a bunch of white, Greenberg lawyers representing ABRAMOFF, From A1 soon to be speaker of the House. middle-class Irish Catholic guys who Abramoff in the SunCruz bankruptcy Abramoff also counted on his father, wanted to exceed their parents’ Grover Norquist summoned Scanlon to the firm’s Miami owning a pro sports team. He was a gener- who had a wealth of connections from his expectations,” said one of the young Ralph Reed (Americans for headquarters to ask about the Coordinated grass- Tax Reform) ous patron in his Orthodox Jewish com- days as president of the Diners Club cred- lobbyists who himself fit that description. Funding, policy, relationship, according to two people roots lobbying for Used to lobby for munity, starting a boys’ religious school in it card company. Frank Abramoff had “He was always pushing, demanding. He tribal recognition, close to Scanlon. Scanlon told them he would say, ‘We are a family, we will work Indian gambling gambling interests gambling had paid Abramoff $19 million out of the Maryland. once looked into operating a casino in the recognition Adam Kidan For a time, all things seemed possible. Commonwealth of the Northern Mariana 24 hours a day, we will win.’ ” Pleaded guilty to money he had received in public relations Abramoff’s brash style often clashed with Islands, U.S. territory that includes Sai- Team Abramoff included former SunCruz conspiracy to fees from tribal clients. Cesar L. Alvarez, culturally conservative Washington, but pan. He introduced his son around, and staffers to DeLay, as well as to Sen. Casinos defraud. Sports and Trips president and chief executive of many people were drawn to his moxie and the Marianas became one of the first im- Conrad Burns (R-Mont.), head of the Greenberg Traurig, said the firm will not Abramoff purchased entertainment portant clients of the new lobbyist. Senate Appropriations panel’s Interior comment on any meeting with Scanlon. his money. He collected unprecedented fleet in 2000. Company Abramoff leased sums — tens of millions of dollars — from Soon the younger Abramoff developed subcommittee; Rep. Robert W. Ney $ By the spring of 2004, the Justice (R-Ohio), chairman of the House seller was killed in 2001. sports arena boxes, Trips, Department had launched an casino-rich Indian tribes. Lawmakers and a key alliance with Rep. Tom DeLay, a Abramoff indicted on opened restaurants. their aides packed his restaurants and conservative Republican from Texas who Administration Committee; Rep. John T. jobs investigation of Abramoff and Scanlon fraud charges. Statements skyboxes and jetted off with him on golf was working his way up in the House lead- Doolittle (R-Calif.), who has served on Lobbying that quickly developed into a the key House committee that oversees by Ney to multi-agency task force. trips to Scotland and the Pacific island of ership. The two met at a DeLay fundraiser support purchase Saipan. on Capitol Hill in 1995, according to a for- tribes; and Sen. Harry M. Reid (D-Nev.), now minority leader. Trips Sports tickets, Pressure to Plead Abramoff offered jobs and other favors mer senior DeLay aide. The aide recalled drinks, dinners to well-placed congressional staffers and that Edwin A. Buckham, then DeLay’s Abramoff gathered his troops for $ executive branch officials. He pushed his chief of staff, told his boss: “We really strategy meetings that were “a great U.S. government Nearly two years later, Abramoff’s legal own associates for government positions, need to work with Abramoff; he is going show,” rollicking forums where ethical troubles appear to threaten the careers of from which they, too, could help him. to be an important lobbyist and fundrais- niceties were derided with locker room AGENCIES CONGRESS many of his colleagues and political allies. Sources familiar with the Justice He was a man of contradictions. He pre- er.” humor, recalled a former Preston Gates ª David H. Safavian Among those under scrutiny: sented himself as deeply religious, yet his DeLay, a Christian conservative, did colleague. “Jack would say, ‘I gave that Department investigation say that half a Former OMB ª Rep. Robert W. Ney e-mails show that he blatantly deceived not quite know what to make of Abramoff, guy 10 grand and he voted against me!’ ” contracting official dozen lawmakers are under scrutiny, ª Sen. Conrad Burns Indian tribes and did business with people who wore a beard and a yarmulke. They the former associate recalled. Indicted on charges of lying along with Hill aides, former business ª Rep. Tom DeLay linked to the underworld. He had genuine forged political ties, but the two men nev- Bill padding was openly discussed, ª J. Steven Griles associates and government officials. according to Abramoff’s Greenberg ª Rep. John T. Doolittle Two of Abramoff’s former business inside connections but also puffed himself er became personally close, according to Former No. 2 official at up with phony claims about his access. associates of both men. Traurig e-mails that have been released by the Interior Department partners — Scanlon and Kidan — have Abramoff’s lobbying team was made up Almost from the start, Abramoff struck the Senate Indian Affairs Committee. For Under investigation pleaded guilty and have agreed to testify of Republicans and a few Democrats, some rival lobbyists as a strange figure example, in April 2000, Abramoff had about bribery and fraud in Florida and most of whom he had wined and dined who operated on the margins. He even lobbyist Shawn Vasell working on a BY JAMES V. GRIMALDI AND LAURA STANTON — THE WASHINGTON POST Washington. when they were aides to powerful mem- turned up as a representative of the Paki- monthly invoice to the Mississippi Band Three men have been arrested in the bers of Congress. They signed on for the stani military when Prime Minister Bena- of Choctaw Indians, telling him to “be Boulis killing. Two of the three were camaraderie, the paycheck, the excite- zir Bhutto went to Washington in 1995 to sure we hit the $150k minimum. If you Kidan’s associates; one of them is known ment. seek the return of $600 million the Islam- need to add time for me, let me know.” to law enforcement as an associate of the “Everybody lost their minds,” recalled abad government had paid for 28 F-16 An exasperated Vasell e-mailed back: Gambino crime family. a former congressional staffer who lob- fighters. The sale had been blocked by the “You only had 2 hours. We are not even Another former Abramoff associate, bied with Abramoff at Preston Gates. U.S. government over concerns about Pa- close to this number . . . .” Abramoff’s David H. Safavian — most recently head “Jack was cutting deals all over town. kistan’s nuclear program. solution: “Add 60 hours for me,” and of the Office of Federal Procurement Staffers lost their loyalty to members — Bhutto’s Washington lobbyists were at “pump up” the hours for three or four Policy in the Office of Management and they were loyal to money.” BY DENNIS COOK — ASSOCIATED PRESS the Pakistani Embassy savoring her suc- other lobbyists. Budget — has been indicted on five felony A senior Preston Gates partner warned Jack Abramoff, right, listens to Abbe Lowell, one of his attorneys. The legal troubles of the GOP lobbyist appear to be threatening the careers cessful meeting with President Bill Clin- The Choctaws were one of a half-dozen counts of lying to federal investigators him to slow down or he would be “dead, of many of his colleagues and political allies. Sources familiar with the investigation say that half a dozen lawmakers are under scrutiny. ton when a man in a suit made a mysteri- Indian tribes who gave more than $80 about his dealings with Abramoff while he disgraced or in jail.” Those within Abra- ous entrance. million to Abramoff between 2000 and was chief of staff at the General Services moff’s circle also saw the danger signs. “Suddenly, this portly guy steps in and 2003. Not only were the tribes paying Administration. Their boss had become increasingly fren- sits down. He says nothing,” recalled one Abramoff’s lobbying firm, they were also Within the past year, Abramoff began zied about money and flouted the rules. of the lobbyists. The Americans asked paying Abramoff’s secret outside partner, selling off assets such as his restaurants “I’m sensing shadiness. I’ll stop asking,” him to introduce himself. He folded his Michael Scanlon, who charged the and has told his lawyers he is broke. He one associate, Todd Boulanger, e-mailed a arms and refused. Indians millions of dollars for public faces the possibility of lengthy prison colleague. “Finally, he says, ‘I am Jack Abra- relations work and split the money with sentences and stiff financial penalties that Abramoff declined to comment for this moff,’ ” recalled the lobbyist, a well- Abramoff. Scanlon’s public relations fees could be reduced if he cooperates. article. “I have advised my client not to connected Democrat. They had never did not have to be disclosed under All these developments have added to speak, except in court,” said Neal Son- heard of him. Abramoff explained that he lobbying rules, thus making it possible for the pressure on Abramoff to reach his nett, one of his attorneys. A friend of two was “close to Newt.” the magnitude of their take from the own deal before the SunCruz trial begins decades, Rep. Dana Rohrabacher (R- The astonished lobbyists for Bhutto tribes to be kept from public view. The on Jan. 9. Calif.), defended Abramoff: “I think he’s learned that Abramoff had traveled to Is- two dubbed their scheme “Gimme Five,” Alan K. Simpson (R), the former been dealt a bad hand and the worst, raw- lamabad and had sold his services to the according to e-mails in which Abramoff Wyoming senator who was in Washington est deal I’ve ever seen in my life. Words Pakistani military without the prime min- disparaged their clients as “morons” and during the last big congressional scandal like bribery are being used to describe ister’s knowledge. “troglodytes.” — the Abscam FBI sting in the late 1970s things that happened every day in Wash- In the Senate, Abramoff befriended Re- E-mails show that Abramoff put his and early 1980s, in which six House ington and are not bribes.” publicans and their staffers, along with money into an array of political and members and one senator were convicted Few of those interviewed would agree some Democrats on the appropriations personal projects. — said the Abramoff case looks bigger. to be quoted on the record because of the committees. In August 1999, he signed up The nonprofit Capital Athletic Simpson said he recently rode in a plane ongoing investigation by a Justice Depart- for the National Republican Senatorial Foundation, for example, allowed him to with one of Abramoff’s attorneys, who ment task force. But some who spoke on Committee’s “Tartan Invitational,” in schmooze with Washington’s movers and told him: “There are going to be guys in the condition of anonymity said they look which a half-dozen Republican senators shakers at charity affairs. He put a your former line of work who are going to back in amazement at the heady days of BY DAVID GRUBBS — BILLINGS GAZETTE VIA ASSOCIATED PRESS BY RAY LUSTIG — THE WASHINGTON POST BY ECKEHARD SCHULZ — ASSOCIATED PRESS and their aides spent a few days with congressional spouse — Julie Doolittle, be taken down.” Abramoff’s rise. J. Steven Griles, then the deputy interior Sen. Conrad Burns (R-Mont.) has returned Benazir Bhutto, shown in a recent photo, about 50 lobbyists golfing at the exclusive wife of the California lawmaker — on his Dozens of lawmakers — who were “We weren’t outside the box,” the for- secretary, was mentioned by Abramoff in a $150,000 in campaign contributions from came to Washington in 1995 as Pakistan’s St. Andrews Links in Scotland. payroll to plan at least one event. The showered with trips, sports and concert mer Preston Gates colleague said. “We 2001 e-mail to a client as “our guy Steve Abramoff, saying, “I hope he goes to jail and prime minister without knowing that her The following year, Abramoff figured congressman’s office has said that there tickets, drinks and dinners — are were outside the universe.” Griles.” His actions are being investigated. we never see him again.” military had enlisted Abramoff’s services. out how to use his clients to fund his own was no connection between his wife’s returning campaign contributions from trips to St. Andrews with lawmakers. The work and official acts. Abramoff and his clients and calling him a Hints of Trouble They forged lifelong ties. At Reagan’s Col. Oliver L. North, the Reagan White sion. first guests were DeLay and his aides. The foundation was ostensibly created fraud and a crook. 72nd-birthday party at the White House, House’s Iran-contra mastermind, about At the same time, Abramoff dabbled as to help inner-city children through Burns, one of half a dozen legislators A quarter of a century ago, Abramoff Reed introduced Abramoff to his future grass-roots efforts to lobby Congress for a Hollywood producer, shepherding an Team Abramoff organized sports. There is no evidence under scrutiny by the federal Abramoff and anti-tax crusader Grover Norquist wife, Pam Alexander, who was working the Nicaraguan contras, according to rec- anticommunist movie, “Red Scorpion,” money went to city kids, but the task force, returned $150,000 in were fellow Young Turks of the Reagan with Reed. She eventually converted to ords in the National Security Archive. starring Dolph Lundgren, filmed in Na- With Norquist’s help, Abramoff se- foundation did fund some of Abramoff’s campaign contributions this month. revolution. They organized Massachu- Judaism and embraced the Orthodox be- One of Abramoff’s most audacious ad- mibia, which was then ruled by South Af- cured a spot on the transition team for the pet projects: a sniper school for Israelis in “This Abramoff guy is a bad guy,” setts college campuses in the 1980 elec- liefs Abramoff had adopted as a teenager. ventures involved Jonas Savimbi, the An- rica. Actors in the film said they saw Interior Department after George W. the West Bank, a golf trip to Scotland for CLARION-LEDGER VIA ASSOCIATED PRESS Burns told a Montana television station. tion — Abramoff while he was an under- Even in those early days, there were golan rebel leader who had U.S. support South African soldiers on the set. When Bush was elected president in 2000. He Ohio congressman Ney and others, and a The Golden Moon Hotel and Casino in Philadelphia, Miss., is the Mississippi Band of Choctaw Indians’ second hotel-casino. The Choctaws were “I hope he goes to jail and we never see graduate at Brandeis and Norquist at hints of the troubles to come. “If anyone is but was later found to have ordered the the film was released in 1989, anti- tried to place several officials in Interior, Jewish religious academy in Columbia among a half-dozen Indian tribes that gave more than $80 million to Jack Abramoff between 2000 and 2003. him again. I wish he’d never been born, to Harvard Business School — to help Ron- not surprised at the rise and fall of Jack murders of his movement’s representa- apartheid groups demonstrated at the including an unsuccessful attempt to land that Abramoff founded and where he sent be right honest with you.” ald Reagan pull an upset in the state. Abramoff, it is me,” said Rich Bond, a for- tive to the United States and that man’s theaters. The movie ran into financial dif- a former Marianas official in the top spot his children to be educated. But by early 2003, Abramoff’s private members did it by touting their ties to then in his early thirties, was traveling to Former Republican congressman They moved to Washington, maneu- mer chairman of the Republican National relatives. With Savimbi, Abramoff orga- ficulty during and after production, but overseeing U.S. territories. Another Abramoff financial vehicle was dealmaking had spiraled out of control. powerful Republicans on Capitol Hill and the beach by helicopter and living in a Mickey Edwards (Okla.), usually a vered to take over the College Repub- Committee. nized a “convention” of anticommunist Abramoff produced a sequel, “Red Scorpi- He was able to befriend J. Steven the nonprofit American International His religious academy was draining his stoking tribal worries that Congress waterfront Rehoboth mansion that he defender of lobbying and Congress, said licans — at the time a sleepy estab- Abramoff and his crew busted the Col- guerrillas from Laos, Nicaragua and Af- on 2.” Griles, the deputy interior secretary, e- Center, a Rehoboth Beach, Del., “think income, and his restaurants were might try to tax casino proceeds. bought for nearly $5 million in cash. A there have always been members who get lishment organization — and lege Republicans’ budget with a 1982 na- ghanistan in a remote part of Angola. Af- mails and interviews show. By the sum- tank” set up by Scanlon, who staffed it hemorrhaging money. He told Scanlon in Abramoff and Scanlon also quietly got Louisiana paper, the Town Talk of caught “stuffing money in their pants.” transformed it into a right-wing activist tional direct-mail fundraising campaign terward, Lehrman fired Abramoff amid a Mysterious Entrance mer of 2001, Abramoff was referring to with beach friends from his summer job as an e-mail that February that he was at involved in tribal elections. Alexandria, reported in September 2003 But he said this is different — a group. They were joined by Ralph Reed, that ended up “a colossal flop,” said Bond, dispute about the handling of the group’s him in an e-mail to a client as “our guy a lifeguard. The center became a means “rock bottom” and needed funds Sen. Byron L. Dorgan (N.D.), the that the Coushatta tribe paid Scanlon’s “disgusting” and disturbingly broad an ambitious Georgian whose later Chris- then deputy director of the party’s nation- $3 million budget. When Republicans wrested control of Steve Griles.” Federal investigators are for Abramoff and Scanlon to take money immediately. By the next day, he was ranking Democrat on the Indian Affairs public relations firm $13.7 million, a scandal driven by lobbyists whose tian conversion would fuel his rise to na- al committee. He said he banished the Abramoff also worked on behalf of the the House from the Democrats in 1994, now looking into whether Griles in- from foreign clients that they did not frantic. “Mike!!! I need the money Committee, remembers first hearing figure that amazed tribal lobbyists as well attitude seemed to be “government to the tional political prominence. three from GOP headquarters, telling apartheid South African government, Abramoff turned his focus back to Wash- terceded on behalf of Abramoff and im- want to officially represent. Some of the TODAY! I AM BOUNCING CHECKS!!!” “vague complaints” about Abramoff in as some of Abramoff’s colleagues. It was highest bidder.” Soon they made headlines with such Abramoff: “You can’t be trusted.” which secretly paid $1.5 million a year to ington politics. With Norquist’s help, he properly discussed a job with the lobbyist funds came from the government of June 2003 from three Democratic around that time that one colleague, “This is at a scale that is really tactics as demolishing a mock Berlin Wall Shortly thereafter, Abramoff was run- the International Freedom Foundation, a reinvented himself as a Republican lobby- while in a position to affect his clients. Malaysia. Banks and oil companies there ‘Enron of Lobbying’ lobbyists. The tribes had traditionally Kevin Ring, learned from one of shocking,” said Edwards, who teaches in Lafayette Park, where they also burned ning Citizens for America, a conservative nonprofit group that Abramoff operated ist on heavily Democratic K Street. Nor- Griles denied any wrongdoing in recent were making deals in Sudan, where U.S. supported Democrats, but Abramoff was Abramoff’s assistants that his boss was public and international affairs at a Soviet leader in effigy. “We want to grass-roots group founded by drugstore out of a townhouse in the 1980s, accord- quist was one of the intellectual architects testimony to the Senate. companies were barred on human rights To Abramoff’s rivals in the niche world capturing them for Republicans, getting secretly getting money from Scanlon, Princeton. “There is a certain kind of shock them,” Abramoff told The Post at magnate Lewis E. Lehrman. Abramoff ing to sworn testimony to the South Afri- of the Republican Revolution and a muse grounds. Sudan was among several of tribal lobbying, however, he was still a them to boost their contributions and according to a source privy to the arrogance that in the past you might not the time. was in frequent contact with Marine Lt. can Truth and Reconciliation Commis- for its leader, Newt Gingrich (R-Ga.), See ABRAMOFF, A7, Col. 1 oil-rich nations in Africa, Asia and the confounding success. give two-thirds to his party. conversation. have had. They were so supremely Middle East that Abramoff eyed as venues Team Abramoff was stealing away There was even more buzz on Capitol “This could be the Enron of lobbying,” confident that there didn’t seem to be any for lucrative energy deals. Abramoff told tribal clients from other lobbyists and Hill about Scanlon, the gregarious former Ring told the colleague. kind of moral compass here.” associates he wanted to become a go-to charging fees of $150,000 a month or DeLay press aide who had become a Rival lobbyists, including some A listing of key Washington Post articles about the Abramoff inquiry and a listing of people involved person for U.S. companies seeking to do more — 10 or 20 times what the Indians multimillionaire almost overnight. His Republicans, were comparing notes about Researcher Alice Crites contributed to can be found at www.washingtonpost.com/politics. business with oil-patch nations. had been paying to others. Team old friends were astonished that Scanlon, what they considered Abramoff’s this report. ABCDE

Democracy Dies in Darkness SATURDAY, DECEMBER 31, 2005 The DeLay-Abramoff Money Trail Nonprofit Group Linked to Lawmaker Was Funded Mostly by Clients of Lobbyist

By R. Jeffrey Smith The former president of the U.S. Fam- Washington Post Staff Writer ily Network said Buckham told him that Russians contributed $1 million to the The U.S. Family Network, a pub- group in 1998 specifically to influence lic advocacy group that operated in the DeLay’s vote on legislation the Interna- 1990s with close ties to Rep. Tom DeLay tional Monetary Fund needed to finance a and claimed to be a nationwide grass-roots bailout of the collapsing Russian economy. organization, was funded almost entirely A spokesman for DeLay, who is fight- by corporations linked to embattled lobby- ing in a Texas state court unrelated charges ist Jack Abramoff, according to tax records of illegal fundraising, denied that the con- and former associates of the group. tributions influenced the former House During its five-year existence, the U.S. majority leader’s political activities. The Family Network raised $2.5 million but Russian energy executives who worked kept its donor list secret. The list, obtained with Abramoff denied yesterday knowing by The Washington Post, shows that $1 anything about the million-dollar London million of its revenue came in a single 1998 transaction described in tax documents. check from a now-defunct London law firm Whatever the real motive for the con- whose former partners would not identify tribution of $1 million — a sum not prohib- the money’s origins. ited by law but extraordinary for a small, Two former associates of Edwin A. nonprofit group — the steady stream of Buckham, the congressman’s former chief corporate payments detailed on the donor of staff and the organizer of the U.S. Fam- list makes it clear that Abramoff’s long- ily Network, said Buckham told them the standing alliance with DeLay was sealed by funds came from Russian oil and gas exec- a much more extensive web of financial ties utives. Abramoff had been working closely than previously known. with two such Russian energy executives Records and interviews also illumi- on their Washington agenda, and the lob- nate the mixture of influence and illusion byist and Buckham had helped organize a that surrounded the U.S. Family Net- 1997 Moscow visit by DeLay (R-Tex.). work. Despite the group’s avowed pur- SATURDAY, DECEMBER 31, 2005 KLMNO PAGE 2

Group’s Funding Highlights DeLay-Abramoff Ties

BY MELINA MARA — THE WASHINGTON POST A spokesman for Rep. Tom DeLay said donations to the U.S. Family Network did not influence the lawmaker’s actions. pose, records show it did little to promote that was the group’s professed aim. conservative ideas through grass-roots In addition to the million-dollar pay- advocacy. The money it raised came from ment involving the London law firm, for businesses with no demonstrated interest example, half a million dollars was donated in the conservative “moral fitness” agenda to the U.S. Family Network by the owners SATURDAY, DECEMBER 31, 2005 KLMNO PAGE 3

of textile companies in the Mariana Islands A quarter of a million dollars was in the Pacific, according to the tax records. donated over two years by the Mississippi The textile owners — with Abramoff’s Band of Choctaw Indians, Abramoff’s larg- help — solicited and received DeLay’s pub- est lobbying client, which counted DeLay lic commitment to block legislation that as an ally in fighting legislation allowing would boost their labor costs, according to the taxation of its gambling revenue. Abramoff associates, one of the owners and The records, other documents and a DeLay speech in 1997. interviews call into question the very pur-

Possible Connections The U.S. Family Network, an advocacy group formed by the chief of staff to then-Majority Whip Tom DeLay in 1996, received large contributions from companies whose interests DeLay promoted in Congress. The group paid huge fees to a lobbying firm that employed DeLay’s wife. It also provided office space to other DeLay-linked organizations.

Two sources say the U.S. Family Network’s organizer told them U.S. Family Purchased townhouse used by Russian energy executives made Network DeLay for fundraising, by DeLay’s a $1 million payment in 1998. leadership committee and a former DeLay aide’s lobbying firm.

Gave $250,000 in 1998 and 1999. Lobbying firm employed DeLay’s wife, Christine, paying her $3,200 a month for Gave a three years while located in the townhouse. half-million dollars in 1998 and 1999.

Mississippi Band of Choctaw Indians

Mariana Russian oil Islands textile businessmen companies Townhouse formerly Tom DeLay owned by U.S. Family Network.

Gave commitment to block legislation that would boost companies’ labor costs.

Saluted Choctaw chief in Congressional Record in 2001. Spoke against Western pressure for a Russian tax SOURCE: Staff reports BY SETH HAMBLIN AND LAURA STANTON — THE WASHINGTON POST hike on oil companies in 1998. SATURDAY, DECEMBER 31, 2005 KLMNO PAGE 4

pose of the U.S. Family Network, which lished as a nonprofit organization, it paid functioned mostly by collecting funds from hundreds of thousands of dollars in fees to domestic and foreign businesses whose Buckham and his lobbying firm, Alexander interests coincided with DeLay’s activities Strategy Group. while he was serving as House majority There is no evidence DeLay received whip from 1995 to 2002, and as majority a direct financial benefit, but Buckham’s leader from 2002 until the end of Septem- firm employed DeLay’s wife, Christine, ber. and paid her a salary of at least $3,200 After the group was formed in 1996, each month for three of the years the group its director told the Internal Revenue Ser- existed. Richard Cullen, DeLay’s attorney, vice that its goal was to advocate policies has said that the pay was compensation for favorable for “economic growth and pros- lists Christine DeLay supplied to Buckham perity, social improvement, moral fitness, of lawmakers’ favorite charities, and that and the general well-being of the United it was appropriate under House rules and States.” DeLay, in a 1999 fundraising letter, election law. called the group “a powerful nationwide Some of the U.S. Family Network’s rev- organization dedicated to restoring our enue was used to pay for radio ads attack- government to citizen control” by mobiliz- ing vulnerable Democratic lawmakers in ing grass-roots citizen support. 1999; other funds were used to finance the But the records show that the tiny U.S. cash purchase of a townhouse three blocks Family Network, which never had more from DeLay’s congressional office. DeLay’s than one full-time staff member, spent associates at the time called it “the Safe comparatively little money on public advo- House.” cacy or education projects. Although estab- DeLay made his own fundraising

BY GREGG HILTON — AMERICAN SECURITY COUNCIL FOUNDATION BY RON HEFLIN — ASSOCIATED PRESS Lawyer Julius Kaplan, left, is shown with Marina The congressman’s wife, Christine DeLay, once worked Nevskaya and Alexander Koulakovsky of the Russian for a lobbying firm that received hundreds of thousands energy firm Naftasib. The Russians reportedly donated of dollars in fees from the U.S. Family Network. She $1 million to a nonprofit group with close ties to DeLay. received a monthly salary of at least $3,200. SATURDAY, DECEMBER 31, 2005 KLMNO PAGE 5

telephone pitches from the townhouse’s lobbying was to promote the policies of the second-floor master suite every few weeks, Russian government. according to two former associates. Other Kaplan and British lawyer David rooms in the townhouse were used by Alex- Sarch had worked together previously. ander Strategy Group, Buckham’s newly (Sarch died a month before the $1 million formed lobbying firm, and Americans for a was paid.) Buckham’s trip with DeLay was Republican Majority (ARMPAC), DeLay’s his second to Moscow that year for meet- leadership committee. ings with Nevskaya and Koulakovsky; on They paid modest rent to the U.S. the earlier one, the DeLay aide attracted Family Network, which occupied a single media attention by returning through Paris small room in the back. aboard the Concorde, a $5,500 flight. Former Abramoff associates and ‘Red Flags’ on Tax Returns documents in the hands of federal pros- Nine months before the June 25, 1998, ecutors state that Nevskaya and Koula- payment of $1 million by the London law kovsky sought Abramoff’s help at the time firm James & Sarch Co., as recorded in the in securing various favors from the U.S. tax forms, Buckham and DeLay were the government, including congressional ear- dinner guests in Moscow of Marina Nevs- marks or federal grants for their modular- kaya and Alexander Koulakovsky of the oil home construction firm near Moscow and firm Naftasib, which in promotional lit- the construction of a fossil-fuel plant in erature counted as its principal clients the Israel. None appears to have been obtained Ministry of Defense and the Ministry of by their firm. Interior. Former DeLay employees say Kou- Buckham, a graduate of the University lakovsky and Nevskaya met with him on of Tennessee, had worked for DeLay since multiple occasions. The Russians also fre- 1995, after serving in other congressional quently used Abramoff’s skyboxes at local offices and then as executive director of the sports stadiums — as did Kaplan, accord- Republican Study Committee, a group of ing to sources and a 2001 e-mail Abramoff fiscally conservative House members. wrote to another client. Their other dining companions were Three sources familiar with Abramoff and Washington lawyer Julius Abramoff’s activities on their behalf say “Jay” Kaplan, whose lobbying firms col- that the two Russians — who knew the lected $440,000 in 1997 and 1998 from head of the Russian energy giant Gazprom an obscure Bahamian firm that helped and had invested heavily in that firm — organize and indirectly pay for the DeLay partly wanted just to be seen with a promi- trip, in conjunction with the Russians. In nent American politician as a way of bol- disclosure forms, the stated purpose of the stering their credibility with the Russian SATURDAY, DECEMBER 31, 2005 KLMNO PAGE 6

government and their safety on Moscow’s DeLay” and clearly had the resources to do streets. The Russian oil and gas business it. At one point, Koulakovsky asked during at the time had a Wild West character, and a dinner in Moscow “what would happen its executives worried about extortion and if the DeLays woke up one morning” and kidnapping threats. The anxieties of Nevs- found a luxury car in their front driveway, kaya and Koulakovsky were not hidden; the former associate said. They were told like many other business people, they trav- the DeLays “would go to jail and you would eled in Moscow with guards armed with go to jail.” machine guns. The tax form states that the $1 mil- During the DeLays’ visit on Aug. 5 to lion came by check on June 25, 1998, from 11, 1997, the congressman met with Nevs- “Nations Corp, James & Sarch co.” The kaya and was escorted around Moscow by Washington Post checked with the listed Koulakovsky, Naftasib’s general manager. executives of Texas and Florida firms that DeLay told the House clerk that the trip’s have names similar to Nations Corp, and sponsor was the National Center for Public they said they had no connection to any Policy Research, but multiple sources told such payment. The Post that his expenses were indirectly James & Sarch Co. was dissolved in reimbursed by the Russian-connected May 2000, but two former partners said Bahamian company. they recalled hearing the names of the DeLay spokesman Kevin Madden said Russians at their office. Asked if the firm the principal reason for his Moscow trip represented them, former partner Philip was “to meet with religious leaders there.” McGuirk at first said “it may ring a bell,” Nevskaya, in a letter this spring, said Naf- but later he faxed a statement that he could tasib’s involvement in such trips was meant say no more because confidentiality prac- “to foster better understanding between tices prevent him “from disclosing any our country and the United States” and information regarding the affairs of a cli- denied that the firm was seeking protec- ent (or former client).” tion through its U.S. contacts. Nevskaya said in the e-mail yesterday, Nevskaya added in an e-mail yester- however, that “neither Naftasib nor the day that Naftasib and its officials were not principals you mentioned have ever been representing the ministries of defense and represented by a London law firm that you interior or any other government agen- name as James & Sarch Co.” She also said cies “in connection with meetings or other that Naftasib and its principals did not pay lobbying activities in Washington D.C. or $1 million to the firm, and denied knowing Moscow.” about the transaction. A former Abramoff associate said the Two former Buckham associates said two executives “wanted to contribute to that he told them years ago not only that SATURDAY, DECEMBER 31, 2005 KLMNO PAGE 7

the $1 million donation was solicited from to other countries. The IMF and its West- Russian oil and gas executives, but also ern funders, meanwhile, were pressing that the initial plan was for the donation to Moscow, as a condition of any loan, to be made via a delivery of cash to be picked increase taxes on major domestic oil com- up at a Washington area airport. panies such as Gazprom, which had earlier One of the former associates, a Fred- defaulted on billions of dollars in tax pay- erick, Md., pastor named Christopher Gee- ments. slin who served as the U.S. Family Net- On Aug. 18, 1998, the Russian govern- work’s director or president from 1998 to ment devalued the ruble and defaulted on 2001, said Buckham further told him in its treasury bills. But DeLay, appearing on 1999 that the payment was meant to influ- “Fox News Sunday” on Aug. 30 of that year, ence DeLay’s vote in 1998 on legislation criticized the IMF financing bill, calling the that helped make it possible for the IMF to replenishment of its funds “unfortunate” bail out the faltering Russian economy and because the IMF was wrongly insisting on the wealthy investors there. a Russian tax increase. “They are trying to “Ed told me, ‘This is the way things force Russia to raise taxes at a time when work in Washington,’ “ Geeslin said. “He they ought to be cutting taxes in order to said the Russians wanted to give the money get a loan from the IMF. That’s just outra- first in cash.” Buckham, he said, orches- geous,” DeLay said. trated all the group’s fundraising and In the end, the Russian legislature spending and rarely informed the board refused to raise taxes, the IMF agreed to about the details. Buckham and his attor- lend the money anyway, and DeLay voted ney, Laura Miller, did not reply to repeated on Sept. 17, 1998, for a foreign aid bill con- requests for comment on this article. taining new funds to replenish the IMF The IMF funding legislation was a account. DeLay’s spokesman said the law- contentious issue in 1998. The Russian maker “makes decisions and sets legislative stock market fell steeply in April and May, priorities based on good policy and what and the government in Moscow announced is best for his constituents and the coun- on June 18 — just a week before the $1 mil- try.” He added: “Mr. DeLay has very firm lion check was sent by the London law firm beliefs, and he fights very hard for them.” — that it needed $10 billion to $15 billion Kaplan did not respond to repeated in new international loans. messages, and through a spokesman for House Republican leaders had lawyer Abbe Lowell, Abramoff declined to expressed opposition through that spring comment. to giving the IMF the money it could No legal bar exists to a $1 million use for new bailouts, decrying what they donation by a foreign entity to a group described as previous destabilizing loans such as the U.S. Family Network, accord- SATURDAY, DECEMBER 31, 2005 KLMNO PAGE 8

ing to Marcus Owens, a Washington lawyer as a possible location for the lawmaker’s who directed the IRS’s office of tax-exempt annual charity tournament, according to organizations from 1990 to 2000 and who a tribal source. Abramoff told the tribe he reviewed, at The Post’s request, the tax could not accompany DeLay because of a returns filed by the U.S. Family Network. prior commitment, the source said. But “a million dollars is a staggering One day after the DeLays departed for amount of money to come from a foreign Washington, the U.S. Family Network reg- source” because such a donor would not be istered an initial $150,000 payment made entitled to claim the tax deduction allowed by the Choctaws, according to its tax return. for U.S. citizens, Owens said. “Giving The tribe made additional payments to large donations to an organization whose the group totaling $100,000 on “various” purposes are as ambiguous as these . . . is dates the following year, the returns state. extraordinary. I haven’t seen that before. It The Choctaws separately paid Abramoff suggests something else is going on. $4.5 million for his lobbying work on their “There are any number of red flags on behalf in 1998 and 1999. Abramoff and his these returns.” wife contributed $22,000 to DeLay’s polit- ical campaigns from 1997 to 2000, accord- Hailing Indian Tribe’s Hiring of Lobbyists ing to public records. Buckham and Tony Rudy were the first A former Abramoff associate who is DeLay staff members to visit the Choctaw aware of the payments, and who spoke on Reservation near Meridian, Miss., where the condition of anonymity to protect his the tribe built a 500-room hotel and a clients, said the tribe made contributions 90,000-square-foot gambling casino. to entities associated with DeLay because Their trip from March 25 to 27, 1997, cost DeLay was crucial to the tribe’s continuing the Choctaws $3,000, according to state- fight against legislation to allow the taxa- ments filed with the House clerk. tion of Indians’ gambling revenue. DeLay, his wife and Susan Hirschman An attorney for the tribe, Bryant Rog- — Buckham’s successor in 1998 as chief of ers, said the funds were meant not only to staff — were the next to go. Their trip from “get the message out” about the adverse tax July 31 to Aug. 2, 1998, was described on law proposals but also to finance a cam- House disclosure forms as a “site review paign by Buckham’s group within “the con- and reservation tour for charitable event,” servative base” against legislation to strip and the forms said it cost the Choctaws tribes of their control over Indian adop- $6,935. tions. “This was a group connected to the Buckham, who was then a lobbyist, right-wing Christian movement,” Rogers arranged DeLay’s trip, which included a said. “This is Ed Buckham’s connection.” visit to the tribe’s golf course to assess it In March 1999, after the tribe had SATURDAY, DECEMBER 31, 2005 KLMNO PAGE 9

paid a substantial sum directly to the U.S. chief Philip Martin in the Congressio- Family Network, Buckham expressed his nal Record on Jan. 3, 2001, citing “all he general gratitude to Abramoff in an e-mail. has done to further the cause of freedom.” “I really appreciate you going to bat for DeLay also attached to his remarks an us. Remember it is the first bit of money editorial that hailed the tribe’s gambling that is always the hardest, but means the income and its “hiring [of] quality lobby- most,” Buckham said, according to a copy. ists.” He added: “Pray for God’s wisdom. I really Throughout this period, the U.S. Fam- believe this is supposed to be what we are ily Network was paying a monthly fee of at doing to save our team.” least $10,000 to Buckham and Alexander During this period, a fundraising letter Strategy Group for general “consulting,” on the U.S. Family Network stationery was according to a former Buckham associate sent to residents of Alabama, announcing a and a copy of the contract. While DeLay’s petition drive to promote a cause of inter- wife drew a monthly salary from the lobby- est to Abramoff’s Indian gambling clients ing firm, she did not work at its offices in in Mississippi and Louisiana, including the the townhouse on Capitol Hill, according Choctaw casino that drew many custom- to former Buckham associates. ers from Alabama: the blocking of a rival Neither the House nor the Federal casino proposed by the Poarch Creek Indi- Election Commission bars the payment of ans on their land in Alabama. corporate funds to spouses through con- “The American family is under attack sulting firms or political action commit- from all sides: crime, drugs, pornogra- tees, but the spouses must perform real phy, and one of the least talked about but work for reasonable wages. equally as destructive — gambling,” said “Anytime you [as a congressman] the group’s letter, which was signed by hire your child or spouse, it raises ques- then-Rep. Bob Riley (R), now the Alabama tions as to whether this is a throwback to governor. “We need your help today . . . to the time when people used campaigns and prevent the Poarch Creek Indians from government jobs to enrich their families,” building casinos in Alabama.” said Larry Noble, executive director of the Asked about the letter, Rogers said Center for Responsive Politics, a nonparti- “none of us have seen” it and “the tribe’s san watchdog group, and a former general contributions have nothing to do with it.” A counsel of the FEC. spokesman for Riley said that he could not recall the circumstances behind the letter, but that he has long opposed any expan- Research editor Lucy Shackelford; researchers Alice Crites, Madonna Lebling, Karl Evanzz and sion of gambling in Alabama. Meg Smith; and research database editor Derek DeLay, meanwhile, saluted Choctaw Willis contributed to this report DAILY 12-31-05 MD M2 A1 CMYK

Weather Today: Rain, fog. High 46. Low 35. FINAL Sunday: Partly sunny. High EDITION 48. Low 35. Details, B8 ABCDE 35¢ Prices may vary in areas outside metropolitan 129th Year No. 26 M2 DC MD VA Saturday, December 31, 2005 M1 M2 M3 M4 V1 V2 V3 V4 Washington. (See box on A4) D.C. Plagued The DeLay-Abramoff Money Trail By Backlog Nonprofit Group Linked to Lawmaker Was Funded Mostly by Clients of Lobbyist By R. Jeffrey Smith by The Washington Post, shows that $1 1997 Moscow visit by DeLay (R-Tex.). Abramoff denied yesterday knowing any- In Autopsy Washington Post Staff Writer million of its revenue came in a single 1998 The former president of the U.S. Family thing about the million-dollar London check from a now-defunct London law Network said Buckham told him that Rus- transaction described in tax documents. The U.S. Family Network, a public ad- firm whose former partners would not sians contributed $1 million to the group Whatever the real motive for the contri- vocacy group that operated in the 1990s identify the money’s origins. in 1998 specifically to influence DeLay’s bution of $1 million — a sum not prohib- Reports with close ties to Rep. Tom DeLay and Two former associates of Edwin A. vote on legislation the International Mone- ited by law but extraordinary for a small, claimed to be a nationwide grass-roots or- Buckham, the congressman’s former chief tary Fund needed to finance a bailout of nonprofit group — the steady stream of ganization, was funded almost entirely by of staff and the organizer of the U.S. Fami- the collapsing Russian economy. corporate payments detailed on the donor Some Cases a Decade Old; corporations linked to embattled lobbyist ly Network, said Buckham told them the A spokesman for DeLay, who is fighting list makes it clear that Abramoff’s long- Jack Abramoff, according to tax records funds came from Russian oil and gas exec- in a Texas state court unrelated charges of standing alliance with DeLay was sealed 84 Homicides Incomplete and former associates of the group. utives. Abramoff had been working closely illegal fundraising, denied that the contri- by a much more extensive web of financial During its five-year existence, the U.S. with two such Russian energy executives butions influenced the former House ma- ties than previously known. By Cheryl W. Thompson Family Network raised $2.5 million but on their Washington agenda, and the lob- jority leader’s political activities. The Rus- Washington Post Staff Writer kept its donor list secret. The list, obtained byist and Buckham had helped organize a sian energy executives who worked with See DELAY, A6, Col. 1

The D.C. medical examiner’s office has a backlog of 1,037 unfinished autopsy reports, including some cases dating back more than a decade, records show. The agency’s slow Many Dead in Raid on Cairo Refugee Camp turnaround has delayed police work and criminal prosecutions, and forced some fami- lies to sue the office to obtain the paperwork about their loved ones. The District’s incomplete autopsies in- clude 765 that are at least a year old. Mary- land and Virginia, by comparison, have no cases a year old. Among the unfinished D.C. cases are 84 homicides. “Years ago, they would complete the report and put it in our mailbox,” said Tony Pat- terson, a veteran homicide detective in the District. “Now, it takes an act of Congress to get an autopsy report from them.” The backlog has occurred in an office that has had four of its six chiefs leave amid con- troversy. Last year, the D.C. Council ap- proved a chief after waiving the minimum qualifications. Several pathologists have left recently. And documents detail several ques- tionable rulings by the chief and deputy med- ical examiners. Chief Medical Examiner Marie-Lydie Y. Pierre-Louis, 55, who was appointed by May- or Anthony A. Williams (D) and confirmed by the council last year, declined several re- quests for an interview. Edward D. Reiskin, the deputy mayor for public safety and justice who oversees Pierre- Louis’s office, said the agency has made prog- ress, citing a reduction in the backlog, which was 100 cases higher last year. “I think there’s been a lot of improvement in that office under her leadership,” he said. The backlog was 1,136 at the end of Sep-

See MORGUE, A10, Col. 1

Justice Dept. BY BEN CURTIS — ASSOCIATED PRESS A Sudanese refugee in Cairo tries to hand over his child as another, left, cries out after being arrested by Egyptian riot police who invaded their squatters camp in an affluent area of DAILY 12-31-05 MD SU A6 BLACK Investigating the capital. Hundreds of migrants from Sudan had lived at the camp for months, seeking asylum or resettlement outside Egypt. As many as 26 were killed in the melee. Story, A14.

Leak of NSA Facing Weaker Home Sales, A6 Saturday, December 31, 2005 S CONGRESS The Washington Post Wiretapping INSIDE Hinckley Allowed to Visit Builders Sweeten Deals Probe Seeks Source His Parents’ Home in Va. Group’s Funding Highlights DeLay-Abramoff Ties The man who shot President Ronald Freebies Include Mortgage Help, Televisions DELAY, From A1 scribed as previous destabilizing loans to other coun- Of Classified Data Reagan can leave the Washington area tries. The IMF and its Western funders, meanwhile, for three stays, with more possible after By Sandra Fleishman and so have contracts. “With all the in- Records and interviews also illuminate the mixture of were pressing Moscow, as a condition of any loan, to in- By Dan Eggen a review, a judge decides. METRO, B1 Washington Post Staff Writer ventory, buyers now have more influence and illusion that surrounded the U.S. Family crease taxes on major domestic oil companies such as Washington Post Staff Writer choices.” Network. Despite the group’s avowed purpose, records Gazprom, which had earlier defaulted on billions of dol- Home builders around the region are This has been good news for D.C. show it did little to promote conservative ideas through lars in tax payments. The Justice Department has opened a crimi- Ex-Official Says Hariri luring would-be buyers with freebies teacher Kathleen Bergin and her room- grass-roots advocacy. The money it raised came from On Aug. 18, 1998, the Russian government devalued nal investigation into recent disclosures about Was Threatened by Assad worth thousands of dollars, in an at- mate, Mary Wilson, who works as a businesses with no demonstrated interest in the conser- the ruble and defaulted on its treasury bills. But DeLay, a controversial domestic eavesdropping pro- tempt to prop up sales in a slowing real nanny. The two long-time friends rent- vative “moral fitness” agenda that was the group’s pro- appearing on “Fox News Sunday” on Aug. 30 of that gram that was secretly authorized by President A former confidant of Syrian President estate market. ed in Glover Park for four years and fessed aim. year, criticized the IMF financing bill, calling the replen- Bush after the Sept. 11, 2001, attacks, officials Assad recalls meeting before the killing BY PETER DEJONG — ASSOCIATED PRESS Pulte Homes Inc. is offering a 42- wanted to buy a place in the neigh- In addition to the million-dollar payment involving ishment of its funds “unfortunate” because the IMF was said yesterday. of Lebanon’s ex-premier. WORLD, A13 Sojourn to War Zone inch television, free heat for six months borhood, but couldn’t afford it, Bergin the London law firm, for example, half a million dollars wrongly insisting on a Russian tax increase. “They are Federal prosecutors will focus their exam- or a $5,000 check for window coverings said. was donated to the U.S. Family Network by the owners trying to force Russia to raise taxes at a time when they ination on who may have unlawfully disclosed Is Over for Florida Teen to some buyers. Ryan Homes will finish They watched as work started in of textile companies in the Mariana Islands in the Pacif- ought to be cutting taxes in order to get a loan from the classified information about the program to the Pregnancy Bias Cases the basement free. NVHomes will spring 2004 on the Archbold, an old ic, according to the tax records. The textile owners — IMF. That’s just outrageous,” DeLay said. New York Times, which reported two weeks Farris Hassan, 16, above, was sent throw in a golf club membership in American University dorm being con- On Rise, EEOC Says home to Fort Lauderdale by U.S. with Abramoff’s help — solicited and received DeLay’s In the end, the Russian legislature refused to raise ago that Bush had authorized the National Se- some developments. verted to condos. “But we just assumed public commitment to block legislation that would taxes, the IMF agreed to lend the money anyway, and curity Agency to monitor the international tele- Pregnancy complaints are among the authorities in Baghdad after presenting “Incentives are definitely on the it would be way out of our range.” fastest-growing classes of charges filed himself at the Associated Press bureau. boost their labor costs, according to Abramoff associ- DeLay voted on Sept. 17, 1998, for a foreign aid bill con- phone calls and e-mails of U.S. citizens and res- rise,” said Kenneth Wenhold of real es- However, after a price cut of $30,000, ates, one of the owners and a DeLay speech in 1997. taining new funds to replenish the IMF account. De- idents without court-approved warrants, with the EEOC, behind religion and Also, Iraq’s government named Ahmed tate research firm MetroStudy. He esti- from about $500,000, plus $10,000 for national origin. BUSINESS, D1 Chalabi oil minister. WORLD, A11 A quarter of a million dollars was donated over two Lay’s spokesman said the lawmaker “makes decisions officials said. mated that since July, when the market using a designated lender, Bergin and years by the Mississippi Band of Choctaw Indians, Abra- and sets legislative priorities based on good policy and The Justice Department’s decision to reveal began to soften, buyer traffic at new- moff’s largest lobbying client, which counted DeLay as what is best for his constituents and the country.” He the opening of a criminal investigation is rare, home projects has fallen off 30 percent See INCENTIVES, A5, Col. 1 an ally in fighting legislation allowing the taxation of its added: “Mr. DeLay has very firm beliefs, and he fights particularly given the highly classified nature gambling revenue. very hard for them.” of the probe. White House deputy press secre- The records, other documents and interviews call Kaplan did not respond to repeated messages, and tary Trent Duffy told reporters in Crawford, into question the very purpose of the U.S. Family Net- through a spokesman for lawyer Abbe Lowell, Abramoff Tex., yesterday that the department “under- work, which functioned mostly by collecting funds from declined to comment. took this action on its own” and that Bush had For Revelers Behind the Wheel, domestic and foreign businesses whose interests coin- No legal bar exists to a $1 million donation by a for- only learned about it from senior staff earlier in cided with DeLay’s activities while he was serving as eign entity to a group such as the U.S. Family Network, the day. House majority whip from 1995 to 2002, and as majority according to Marcus Owens, a Washington lawyer who But Duffy reiterated earlier statements by ‘Only 2 Beers’ Is an Unwise Line leader from 2002 until the end of September. directed the IRS’s office of tax-exempt organizations Bush, who had sharply condemned the dis- After the group was formed in 1996, its director told from 1990 to 2000 and who reviewed, at The Post’s re- closure of the NSA program and argued that it By Paul Duggan All right, sir. Have you been drinking the Internal Revenue Service that its goal was to ad- quest, the tax returns filed by the U.S. Family Network. seriously damaged national security. Washington Post Staff Writer tonight? vocate policies favorable for “economic growth and But “a million dollars is a staggering amount of mon- “The fact is that al Qaeda’s playbook is not At this point, you might as well put the prosperity, social improvement, moral fitness, and the ey to come from a foreign source” because such a donor printed on Page One, and when America’s is, it Tonight’s the night, the big celebra- handcuffs on yourself. You’re busted. You general well-being of the United States.” DeLay, in a would not be entitled to claim the tax deduction allowed has serious ramifications,” Duffy said, reading tion, ringing in the new. Ten! Nine! just don’t know it yet. 1999 fundraising letter, called the group “a powerful na- for U.S. citizens, Owens said. “Giving large donations to from prepared remarks. “You don’t need to be Eight! . . . champagne toasts and kisses. You think maybe you can talk your way tionwide organization dedicated to restoring our gov- an organization whose purposes are as ambiguous as Sun Tzu to understand that,” he added, re- And in the wee hours, after the bars emp- out of this. And here’s what your pan- ernment to citizen control” by mobilizing grass-roots these . . . is extraordinary. I haven’t seen that before. It ferring to the ancient Chinese general who ty, most revelers will make it home fine. icked brain comes up with, five words citizen support. suggests something else is going on. wrote “The Art of War.” For others, though, the party will end guaranteed to do you no good: But the records show that the tiny U.S. Family Net- “There are any number of red flags on these returns.” Leak investigations generally begin with a with the whoop of a siren and a sudden I only had two beers. work, which never had more than one full-time staff referral to the Justice Department by the agen- burst of blue light in the rearview mirror. The “two beers” line has been uttered member, spent comparatively little money on public ad- Hailing Indian Tribe’s Hiring of Lobbyists Good evening, sir. Do you know why I so often that it’s a joke among police offi- vocacy or education projects. Although established as a See LEAK, A4, Col. 1 pulled you over tonight? cers. In 20 years of patrolling highways, nonprofit organization, it paid hundreds of thousands of Buckham and Tony Rudy were the first DeLay staff Of course you know: because you were Virginia State Police Trooper L.L. Parker dollars in fees to Buckham and his lobbying firm, Al- BY MELINA MARA — THE WASHINGTON POST members to visit the Choctaw Reservation near Meridi- driving 30 mph on the interstate, trying, has heard that slurred lie more times than The Post on the Internet: exander Strategy Group. A spokesman for Rep. Tom DeLay said donations to the U.S. Family Network did not influence the lawmaker’s actions. an, Miss., where the tribe built a 500-room hotel and a BY MARK HUMPHREY — ASSOCIATED PRESS with intermittent success, to stay be- she can remember. There is no evidence DeLay received a direct fi- 90,000-square-foot gambling casino. Their trip from washingtonpost.com tween the lines. “I don’t know of any officer out here nancial benefit, but Buckham’s firm employed DeLay’s March 25 to 27, 1997, cost the Choctaws $3,000, ac- At Music City Bowl, a Winning Tune for Cavaliers No, officer . . . who, if you tell them you only had two wife, Christine, and paid her a salary of at least $3,200 Possible Connections cording to statements filed with the House clerk. Contents Senior defensive end Brennan Schmidt, a DeMatha High graduate, embraces an You’re squinting up from the driver’s beers, they’ll tell you, “Okay, then, have a each month for three of the years the group existed. DeLay, his wife and Susan Hirschman — Buckham’s  2005 seat, blinded by the black-metal Maglite The U.S. Family Network, an advocacy group formed by the chief of staff to then-Majority Whip The unidentified teammate following Virginia’s 34-31 victory over Minnesota at the Music Richard Cullen, DeLay’s attorney, has said that the pay successor in 1998 as chief of staff — were the next to go. Washington shining in your eyes. See TWO BEERS, A8, Col. 1 was compensation for lists Christine DeLay supplied to Tom DeLay in 1996, received large contributions from companies whose interests DeLay promoted Their trip from July 31 to Aug. 2, 1998, was described Post City Bowl in Nashville. Connor Hughes kicked the winning field goal. SPORTS, E1 1 Buckham of lawmakers’ favorite charities, and that it in Congress. The group paid huge fees to a lobbying firm that employed DeLay’s wife. It also provided on House disclosure forms as a “site review and reserva- K Ushering in the New Year, in 1905 Washington. | Style, C1 was appropriate under House rules and election law. office space to other DeLay-linked organizations. tion tour for charitable event,” and the forms said it cost Some of the U.S. Family Network’s revenue was used the Choctaws $6,935. to pay for radio ads attacking vulnerable Democratic Buckham, who was then a lobbyist, arranged DeLay’s lawmakers in 1999; other funds were used to finance the trip, which included a visit to the tribe’s golf course to cash purchase of a townhouse three blocks from De- assess it as a possible location for the lawmaker’s annual Lay’s congressional office. DeLay’s associates at the Two sources say the U.S. Family charity tournament, according to a tribal source. Abra- time called it “the Safe House.” Network’s organizer told them U.S. Family Purchased townhouse used by moff told the tribe he could not accompany DeLay be- DeLay made his own fundraising telephone pitches Russian energy executives made Network DeLay for fundraising, by DeLay’s cause of a prior commitment, the source said. from the townhouse’s second-floor master suite every a $1 million payment in 1998. leadership committee and a former One day after the DeLays departed for Washington, few weeks, according to two former associates. Other DeLay aide’s lobbying firm. the U.S. Family Network registered an initial $150,000 rooms in the townhouse were used by Alexander Strate- payment made by the Choctaws, according to its tax re- gy Group, Buckham’s newly formed lobbying firm, and Gave $250,000 in turn. The tribe made additional payments to the group Americans for a Republican Majority (ARMPAC), De- 1998 and 1999. Lobbying firm employed DeLay’s wife, totaling $100,000 on “various” dates the following year, Lay’s leadership committee. Christine, paying her $3,200 a month for the returns state. The Choctaws separately paid Abra- They paid modest rent to the U.S. Family Network, Gave a three years while located in the townhouse. moff $4.5 million for his lobbying work on their behalf in which occupied a single small room in the back. half-million dollars 1998 and 1999. Abramoff and his wife contributed in 1998 and 1999. $22,000 to DeLay’s political campaigns from 1997 to ‘Red Flags’ on Tax Returns 2000, according to public records. Mississippi A former Abramoff associate who is aware of the pay- Nine months before the June 25, 1998, payment of $1 Band of ments, and who spoke on the condition of anonymity to million by the London law firm James & Sarch Co., as Choctaw protect his clients, said the tribe made contributions to recorded in the tax forms, Buckham and DeLay were Indians entities associated with DeLay because DeLay was cru- the dinner guests in Moscow of Marina Nevskaya and cial to the tribe’s continuing fight against legislation to Alexander Koulakovsky of the oil firm Naftasib, which Mariana allow the taxation of Indians’ gambling revenue. in promotional literature counted as its principal clients Russian oil Islands textile An attorney for the tribe, Bryant Rogers, said the the Ministry of Defense and the Ministry of Interior. businessmen companies funds were meant not only to “get the message out” Buckham, a graduate of the University of Tennessee, Townhouse formerly Tom DeLay about the adverse tax law proposals but also to finance a owned by U.S. Family had worked for DeLay since 1995, after serving in other Network. campaign by Buckham’s group within “the conservative congressional offices and then as executive director of base” against legislation to strip tribes of their control the Republican Study Committee, a group of fiscally over Indian adoptions. “This was a group connected to conservative House members. Gave commitment to block the right-wing Christian movement,” Rogers said. “This Their other dining companions were Abramoff and legislation that would boost is Ed Buckham’s connection.” Washington lawyer Julius “Jay” Kaplan, whose lobbying companies’ labor costs. In March 1999, after the tribe had paid a substantial firms collected $440,000 in 1997 and 1998 from an ob- sum directly to the U.S. Family Network, Buckham ex- scure Bahamian firm that helped organize and in- Saluted Choctaw chief pressed his general gratitude to Abramoff in an e-mail. directly pay for the DeLay trip, in conjunction with the in Congressional “I really appreciate you going to bat for us. Remember it Russians. In disclosure forms, the stated purpose of the Record in 2001. is the first bit of money that is always the hardest, but lobbying was to promote the policies of the Russian gov- Spoke against Western means the most,” Buckham said, according to a copy. ernment. pressure for a Russian tax He added: “Pray for God’s wisdom. I really believe this SOURCE: Staff reports BY SETH HAMBLIN AND LAURA STANTON — THE WASHINGTON POST Kaplan and British lawyer David Sarch had worked hike on oil companies in 1998. is supposed to be what we are doing to save our team.” together previously. (Sarch died a month before the $1 During this period, a fundraising letter on the U.S. million was paid.) Buckham’s trip with DeLay was his Family Network stationery was sent to residents of Ala- second to Moscow that year for meetings with Nev- bama, announcing a petition drive to promote a cause of skaya and Koulakovsky; on the earlier one, the DeLay interest to Abramoff’s Indian gambling clients in Mis- aide attracted media attention by returning through sissippi and Louisiana, including the Choctaw casino Paris aboard the Concorde, a $5,500 flight. that drew many customers from Alabama: the blocking Former Abramoff associates and documents in the of a rival casino proposed by the Poarch Creek Indians hands of federal prosecutors state that Nevskaya and on their land in Alabama. Koulakovsky sought Abramoff’s help at the time in se- “The American family is under attack from all sides: curing various favors from the U.S. government, in- crime, drugs, pornography, and one of the least talked cluding congressional earmarks or federal grants for about but equally as destructive — gambling,” said the their modular-home construction firm near Moscow group’s letter, which was signed by then-Rep. Bob Riley and the construction of a fossil-fuel plant in Israel. None (R), now the Alabama governor. “We need your help to- appears to have been obtained by their firm. day . . . to prevent the Poarch Creek Indians from build- Former DeLay employees say Koulakovsky and Nev- ing casinos in Alabama.” skaya met with him on multiple occasions. The Russians Asked about the letter, Rogers said “none of us have also frequently used Abramoff’s skyboxes at local sports seen” it and “the tribe’s contributions have nothing to stadiums — as did Kaplan, according to sources and a BY GREGG HILTON — AMERICAN SECURITY COUNCIL FOUNDATION BY RON HEFLIN — ASSOCIATED PRESS do with it.” A spokesman for Riley said that he could not 2001 e-mail Abramoff wrote to another client. Lawyer Julius Kaplan, left, is shown with Marina The congressman’s wife, Christine DeLay, once worked recall the circumstances behind the letter, but that he Three sources familiar with Abramoff’s activities on Nevskaya and Alexander Koulakovsky of the Russian for a lobbying firm that received hundreds of thousands has long opposed any expansion of gambling in Ala- their behalf say that the two Russians — who knew the energy firm Naftasib. The Russians reportedly donated of dollars in fees from the U.S. Family Network. She bama. head of the Russian energy giant Gazprom and had in- $1 million to a nonprofit group with close ties to DeLay. received a monthly salary of at least $3,200. DeLay, meanwhile, saluted Choctaw chief Philip Mar- vested heavily in that firm — partly wanted just to be tin in the Congressional Record on Jan. 3, 2001, citing seen with a prominent American politician as a way of A former Abramoff associate said the two executives them years ago not only that the $1 million donation “all he has done to further the cause of freedom.” DeLay bolstering their credibility with the Russian govern- “wanted to contribute to DeLay” and clearly had the re- was solicited from Russian oil and gas executives, but also attached to his remarks an editorial that hailed the ment and their safety on Moscow’s streets. The Russian sources to do it. At one point, Koulakovsky asked during also that the initial plan was for the donation to be made tribe’s gambling income and its “hiring [of] quality lob- oil and gas business at the time had a Wild West charac- a dinner in Moscow “what would happen if the DeLays via a delivery of cash to be picked up at a Washington byists.” ter, and its executives worried about extortion and kid- woke up one morning” and found a luxury car in their area airport. Throughout this period, the U.S. Family Network napping threats. The anxieties of Nevskaya and Koula- front driveway, the former associate said. They were One of the former associates, a Frederick, Md., pastor was paying a monthly fee of at least $10,000 to Buckham kovsky were not hidden; like many other business told the DeLays “would go to jail and you would go to named Christopher Geeslin who served as the U.S. Fam- and Alexander Strategy Group for general “consulting,” people, they traveled in Moscow with guards armed jail.” ily Network’s director or president from 1998 to 2001, according to a former Buckham associate and a copy of with machine guns. The tax form states that the $1 million came by check said Buckham further told him in 1999 that the payment the contract. While DeLay’s wife drew a monthly salary During the DeLays’ visit on Aug. 5 to 11, 1997, the on June 25, 1998, from “Nations Corp, James & Sarch was meant to influence DeLay’s vote in 1998 on legisla- from the lobbying firm, she did not work at its offices in congressman met with Nevskaya and was escorted co.” The Washington Post checked with the listed exec- tion that helped make it possible for the IMF to bail out the townhouse on Capitol Hill, according to former around Moscow by Koulakovsky, Naftasib’s general utives of Texas and Florida firms that have names simi- the faltering Russian economy and the wealthy in- Buckham associates. manager. DeLay told the House clerk that the trip’s lar to Nations Corp, and they said they had no connec- vestors there. Neither the House nor the Federal Election Commis- sponsor was the National Center for Public Policy Re- tion to any such payment. “Ed told me, ‘This is the way things work in Washing- sion bars the payment of corporate funds to spouses search, but multiple sources told The Post that his ex- James & Sarch Co. was dissolved in May 2000, but ton,’ ” Geeslin said. “He said the Russians wanted to through consulting firms or political action committees, penses were indirectly reimbursed by the Russian- two former partners said they recalled hearing the give the money first in cash.” Buckham, he said, orches- but the spouses must perform real work for reasonable connected Bahamian company. names of the Russians at their office. Asked if the firm trated all the group’s fundraising and spending and rare- wages. DeLay spokesman Kevin Madden said the principal represented them, former partner Philip McGuirk at ly informed the board about the details. Buckham and “Anytime you [as a congressman] hire your child or reason for his Moscow trip was “to meet with religious first said “it may ring a bell,” but later he faxed a state- his attorney, Laura Miller, did not reply to repeated re- spouse, it raises questions as to whether this is a throw- leaders there.” Nevskaya, in a letter this spring, said ment that he could say no more because confidentiality quests for comment on this article. back to the time when people used campaigns and gov- Naftasib’s involvement in such trips was meant “to fos- practices prevent him “from disclosing any information The IMF funding legislation was a contentious issue ernment jobs to enrich their families,” said Larry Noble, ter better understanding between our country and the regarding the affairs of a client (or former client).” in 1998. The Russian stock market fell steeply in April executive director of the Center for Responsive Politics, United States” and denied that the firm was seeking pro- Nevskaya said in the e-mail yesterday, however, that and May, and the government in Moscow announced on a nonpartisan watchdog group, and a former general tection through its U.S. contacts. “neither Naftasib nor the principals you mentioned have June 18 — just a week before the $1 million check was counsel of the FEC. Nevskaya added in an e-mail yesterday that Naftasib ever been represented by a London law firm that you sent by the London law firm — that it needed $10 billion and its officials were not representing the ministries of name as James & Sarch Co.” She also said that Naftasib to $15 billion in new international loans. Research editor Lucy Shackelford; researchers Alice defense and interior or any other government agencies and its principals did not pay $1 million to the firm, and House Republican leaders had expressed opposition Crites, Madonna Lebling, Karl Evanzz and Meg “in connection with meetings or other lobbying activ- denied knowing about the transaction. through that spring to giving the IMF the money it Smith; and research database editor Derek Willis ities in Washington D.C. or Moscow.” Two former Buckham associates said that he told could use for new bailouts, decrying what they de- contributed to this report.