USA: Key U.S. lawmakers likely on edge as a top influence peddler on Capitol Hill pleas guilty in corruption probe.

Record ID: 645158

  • Title: USA: Key U.S. lawmakers likely on edge as a top influence peddler on Capitol Hill pleas guilty in corruption probe.
  • Date: 4th January 2006
  • Summary: (AM) WASHINGTON, D.C., UNITED STATES (FILE) (REUTERS) REPRESENTATIVE BOB NEY, WHO IS ALSO LIKELY TO BE A FOCUS OF THE CONTINUING INVESTIGATION INTO ABRAMOFF'S AFFAIRS
  • Embargoed: 19th January 2006 12:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: Crime / Law Enforcement,Domestic Politics
  • Reuters ID: LVAF1SG4G01RKFY1S3KEQL5NKOE6
  • Story Text: Former lobbyist Jack Abramoff pleaded guilty to fraud charges on Tuesday (January, 3) and agreed to help U.S. prosecutors in a corruption probe that could involve several top Republican lawmakers, including former House Majority Leader Tom DeLay.
    Abramoff pleaded guilty to conspiracy, mail fraud and tax evasion before a federal judge in Washington. He also will plead plead guilty to conspiracy and wire fraud in a separate case in Miami on Wednesday, his lawyer there said.
    The long-expected plea will give prosecutors valuable ammunition as they seek to link the activities of DeLay of Texas, Republican Rep. Bob Ney of Ohio, and other top lawmakers to favours paid for by Abramoff's lobbying clients.
    Many Republicans and Democrats have benefited from campaign contributions from Abramoff or his clients. Lawmakers seeking to distance themselves from him have returned more than $200,000 (USD) in recent weeks.
    Abramoff faces a maximum sentence of 30 years in prison, but under the terms of the plea deal it will be reduced to between 9 1/2 and 11 years. The sentence could be reduced even further if Abramoff cooperates fully, a Justice Department official said.
    As part of the plea deal, Abramoff agreed to pay at least $25 million (USD) in restitution, as well as $1.7 million (USD) to the Internal Revenue Service for tax evasion.
    Wearing a double-breasted, charcoal-colored suit, Abramoff answered Judge Ellen Segal Huvelle's questions in a hushed voice and did not answer reporters' questions after the hearing.
    "I have profound regret and sorrow for the multitude of mistakes and harm I have caused. All of my remaining days, I will feel tremendous sadness and regret for my conduct and for what I have done," Abramoff said in a prepared statement.
    According to the charges, Abramoff and former DeLay aide Michael Scanlon overbilled several Indian tribes by millions of dollars and used that money to shower golf trips, sports tickets, lavish dinners and other favours on lawmakers. They also kept much of that money for themselves.
    "It was a purpose of the conspiracy for defendant Abramoff, Scanlon and others to enrich themselves by obtaining substantial funds from their clients through fraud and concealment," the charges said.
    Scanlon pleaded guilty to conspiracy in November and has been cooperating with investigators.
    One unidentified lawmaker agreed to support legislation sought by Abramoff, place statements supporting him in the Congressional Record -- the official daily report on congressional proceedings -- and give one of his clients a contract to provide wireless telephone service to the House of Representatives, the charges said.
    That description matches actions taken by Ney, who inserted comments supporting Abramoff into the Congressional Record and who oversees routine matters like wireless service in congressional buildings as chairman of the House Administration Committee.
    Ney's attorney Mark Tuohey was not available for comment.
    The charges are separate from those pending against Abramoff in Florida, where he has been charged in connection with falsifying a loan in the purchase of a Florida casino cruise line.
    In an e-mail, Abramoff attorney Neal Sonnett said that Abramoff would plead guilty in Miami on Wednesday to wire fraud and conspiracy to commit wire fraud, while other charges would be dropped as part of the plea deal.
    He will serve both prison terms at the same time, according to the plea deal.
    Abramoff first contacted the Justice Department to discuss a plea a year and a half ago, his attorney Abbe Lowell said.
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