[Mb-civic] Abramoff Partner Pleads Guilty - Washington Post

[William Swiggard]

Abramoff Partner Pleads Guilty
Scanlon Admits He Conspired to Bribe Lawmaker

By James V. Grimaldi and Susan Schmidt
Washington Post Staff Writers
Tuesday, November 22, 2005; Page A01

A onetime congressional staffer who became a top partner to lobbyist 
Jack Abramoff pleaded guilty yesterday to conspiring to bribe a 
congressman and other public officials and agreed to pay back more than 
$19 million he fraudulently charged Indian tribal clients.

The plea agreement between prosecutors and Michael Scanlon, a former 
press secretary to then-House Majority Whip Tom DeLay (R-Tex.), provided 
fresh detail about the alleged bribes. The document also indicated the 
nature of testimony Scanlon is prepared to offer against a congressman 
it calls "Representative #1" -- who has been identified by attorneys in 
the case as Rep. Robert W. Ney (R-Ohio).

Scanlon, a 35-year-old former public relations executive, faces a 
maximum five years in prison and a $250,000 fine, but the penalty could 
be reduced depending on the level of his cooperation with prosecutors. 
His help is expected to be crucial to the Justice Department's 
wide-ranging Abramoff investigation, which began early last year after 
the revelation that Scanlon and the lobbyist took in tens of millions of 
dollars from Indian tribes unaware of their secret partnership to jack 
up fees and split profits.

Investigators are looking at half a dozen members of Congress, current 
and former senior Hill aides, a former deputy secretary of the interior, 
and Abramoff's former lobbying colleagues, according to sources familiar 
with the probe who spoke on the condition of anonymity. Because of his 
central role in much of Abramoff's business, Scanlon could be a key 
witness in any trials that arise from the case.

Scanlon had been in discussions with prosecutors for six months before 
Friday's announcement that he was being charged with one count of 
conspiracy as part of a plea agreement. He entered his guilty plea 
before U.S. District Judge Ellen Segal Huvelle yesterday and agreed to 
pay restitution of $19.7 million, Scanlon's share of fees from four 
tribes named in the charging documents.

He admitted that he or Abramoff offered bribes on behalf of clients over 
a period of four years, and at one point during the proceedings he 
corrected court filings that mistakenly noted that the illegal acts 
began in 2001. "My client informs me that some of the overt acts are 
actually in 2000," said Scanlon attorney Stephen L. Braga.

Ney spokesman Brian Walsh said the congressman was defrauded by Scanlon 
and Abramoff and his official actions had nothing to do with improper 
influence. "Any allegation that Representative Ney did anything illegal 
or improper is false. This plea agreement mentions a number of 
unsubstantiated allegations, but in fact, many of the things suggested 
to have occurred did not actually take place," Walsh said.

The plea agreement lists gifts Ney was offered or received, including a 
golf trip to Scotland in 2002, $4,000 to his campaign committee, $10,000 
to the National Republican Campaign Committee made with credit to Ney, 
regular meals and drinks at Abramoff's Signatures restaurant, sports 
tickets, and frequent golf and related expenses at courses in the 
Washington area.

The document states that the gifts were "in exchange for a series of 
official acts." These included providing legislation, agreeing to put 
statements into the Congressional Record, contacting federal officials 
to influence decisions, meeting with Abramoff's clients and endorsing a 
wireless telecommunications company that wanted to install antennas in 
House office buildings.

According to the plea agreement, Ney made the Congressional Record 
statements in support of Abramoff's efforts to buy a fleet of Florida 
casino ships "calculated to pressure the then-owner to sell on terms 
favorable to Lobbyist A [Abramoff] and his partners."

The filing also refers to a trip that Ney was offered to attend the 
Super Bowl in Tampa in 2001 that sources have told The Washington Post 
the Ohio congressman backed out of at the last minute. That trip was 
paid for by SunCruz Casinos Inc., which Abramoff acquired in 2001. 
Abramoff is facing fraud charges in Florida in connection with the 
acquisition of that company.

Ney also provided help to two Texas tribal clients of Abramoff that 
wanted permission to open casinos, the plea agreement said. In one case 
in December 2002, Ney sought help from another unidentified House member 
for one of the tribes, the prosecutors said. Ney also met with a member 
of a California tribe doing business with Abramoff and agreed to help 
pass tax legislation affecting the tribe, the documents said.

Another all-expenses-paid trip mentioned in the documents was a 2000 
visit to the Commonwealth of the Northern Mariana Islands, an Abramoff 
client. A source with knowledge of the trip said that senior members of 
Ney's and DeLay's staff went along.

At yesterday's hearing, Scanlon folded his hands and answered the judge 
respectfully and even, at times, enthusiastically. Asked if he was 
satisfied with his attorneys, he said, "I am indeed!" He also appeared 
relaxed afterward, joking with Mary Butler, the top prosecutor on the 
case, that she was letting him leave the courtroom first to "face the 
gauntlet" of reporters outside.

Scanlon was released after promising to post a $5 million unsecured bond 
-- essentially a personal guarantee. Scanlon, who purchased a home in 
St. Bart's with lobbying proceeds, gave his passport to his attorney 
Plato Cacheris under an agreement with prosecutors. He agreed not to 
leave the country without giving authorities two weeks' notice.

Standing in the rain next to his attorneys, Braga and Cacheris, Scanlon 
declined to comment. Cacheris said, "He's obviously regretful for the 
circumstances that brought him here." At the end of the briefing, 
Scanlon, who remembers many of the reporters from days handling press 
for DeLay, said: "Thanks, guys. I'll be in touch."

http://www.washingtonpost.com/wp-dyn/content/article/2005/11/21/AR2005112100719.html?referrer=email
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