Absolute Power Corrupts Absolutely
Jack Abramoff, the mega-lobbyist at the very heart of a right-wing nexus of money, power, and influence over the last decade, pled guilty yesterday to three felony counts: fraud, tax evasion, and conspiracy to bribe public officials. Today, he is expected to plead guilty to fraud and conspiracy counts in a related case in Florida involving the purchase of a casino cruise line. The Washington Post called the announcement the "biggest corruption scandal to infect Congress in a generation." Admitting his wrongdoing, Abramoff said, "All of my remaining days, I will feel tremendous sadness and regret for my conduct and for what I have done." "The corruption scheme with Mr. Abramoff is very extensive," according to Alice S. Fisher, head of the Justice Department's criminal division. As a requirement of his plea deal, Abramoff has agreed to cooperate with federal prosecutors to "provide information and testimony about half a dozen House and Senate members. ... He also is to provide evidence about congressional staffers, Interior Department workers and other executive branch officials, and other lobbyists." If he fully cooperates, he can "expect to receive a prison sentence of 9 1/2 to 11 years, and he is required to make restitution of $26.7 million to the IRS and to the Indian tribes he defrauded." For a detailed look at all the players potentially involved in Abramoff scandal, see our analysis here.
WHO IS JACK ABRAMOFF?: Abramoff "began his rise in Republican power circles in the 1980's, when he was chairman of the College Republicans National Committee. ... In 1994, when the Republicans reclaimed the House after 40 years, Mr. Abramoff rose to power with them." "Abramoff was perhaps Washington's most aggressive -- and, at $750 an hour, most highly compensated -- deal maker, a flamboyant man who moved fluidly through the nexus of money and power." His primary clients were casino-rich Indian tribes, from whom he collected nearly $82 million in lobbying fees. To secure the assistance of public officials, Abramoff showered them with lavish golfing trips, complimentary meals at his fancy restaurant Signatures, and lucrative skybox tickets to Washington sporting events. Since 1999, he has channeled more than $4.4 million to candidates and campaign committtes. Abramoff "mostly implicates Republicans as a result of his plea agreement," which, in a congressional election-year, is giving rise to concern among many in Congress about how far-reaching the impact of the scandal will be.
THE BUSH CONNECTION: Jack Abramoff enjoyed close relations with the White House and the rest of the Bush administration. He was a "Pioneer" for the 2004 Bush re-election effort for raising more than $100,000 for the campaign (the White House recently announced they are going to donate the contributions to charity). Despite the insistence of White House press secretary Scott McClellan that what Abramoff "is reportedly acknowledging doing is unacceptable and outrageous," several members of the administration are accused of -- and one has already pled guilty to -- having been equal participants in Abramoff's bribery schemes. In late September, David Safavian, former head of the federal procurement office in the White House Office of Management and Budget (OMB), was arrested for "lying and obstructing a criminal investigation" into Abramoff's dealings with the federal government. In January 2001, when President Bush entered office, Abramoff wrote to one of his clients, "Our standing with the new administration promises to be solid as several friends...will soon be taking high-ranking positions in the Administration." In 2003, Abramoff asked for and received $9 million from the president of Gabon to secure a meeting with President Bush. In May 2004, Gabon's president met with Bush.
BUSH BAILED OUT ABRAMOFF IN GUAM: In 2002, Abramoff was the target of a grand jury investigation in Guam. On November 18, 2002, U.S. Atty. Frederick A. Black issued a grand jury subpoena issued seeking records involving a highly unusual contract between Abramoff and the Superior Court in Guam. Apparently, Superior Court officials in Guam paid Abramoff over $324,000 -- funneled through a Laguna Beach attorney Howard Hills -- to lobby against a bill in Congress that gave the Guam Supreme Court authority over the Superior Court. The Los Angeles Times reported this August that the day after Black issued the subpeona, "President Bush removed the supervising federal prosecutor [Black] and the inquiry ended soon after." Black had "served as acting U.S. attorney for Guam and the Northern Mariana islands since 1991." He was replaced by Leonardo Rapadas, the man that the Guam Republican Party recommended to Karl Rove be given the job.
ABRAMOFF HAD CLOSE TIES WITH BUSH'S INTERIOR DEPARTMENT: Steven Griles, a former deputy secretary at the Interior Department, "advised Abramoff how to get members of Congress to pressure the department and provided him information about Interior decision-making. In one instance, Abramoff wrote to his lobbying colleagues that Griles would be providing a draft of an Interior letter to Congress to give them 'a head start.'" Abramoff also gave $50,000 to a group founded by Secretary of Interior Gale Norton.
ABRAMOFF'S TIES TO TOP CONGRESSIONAL LEADERSHIP: Abramoff's bribery network incorporated the highest levels of congressional leadership. In 2003, Abramoff worked on behalf of one of his Indian gaming clients to turn back a plan by a different tribe to open a casino in Louisiana. Abramoff was able to orchestrate a congressional letter-writing campaign in support of his clients position -- a campaign that secured the support of Sepaker of the House Dennis Hastert (R-IL), former House Majority Leader Tom DeLay (R-TX), current House Majority Leader Roy Blunt (R-MO), and and House Majority Whip Eric Cantor (R-VA). To buy his support, Abramoff threw Hastert a fundraiser at his fancy Washington, D.C. restaurant that collected more than $20,000 for the Speaker's political action committee. (Hastert recently became the latest in a line of congressmen to return Abramoff's contributions.) DeLay was "Abramoff's closest ally in the Republican leadership." It was through DeLay's K Street Project, "an aggressive program designed to force corporations and trade associations to hire more GOP-connected lobbyists," that Abramoff was able to thrive. In return for DeLay's assistance, Abramoff awarded him skybox seats at the Washington sporting events, luxurious vacation trips to Russia, Saipan, London, and Scotland, and more than $65,000 in campaign contributions. DeLay's public advocacy group, the U.S. Family Network, received $1 million from Abramoff. Members of DeLay's staff, most famously Michael Scanlon, were offered high-paying jobs with Abramoff in return for their assistance in helping his clients while they were still in Congress.
THE NEY CONNECTION: Ohio Republican Representative Bob Ney was the only congressman mentioned in the court papers released yesterday. Identified as "Representative #1" in the papers, Ney, the Chairman of the House Administration Committee, is "accused of meeting with one of Abramoff's clients in Russia in 2003 to 'influence the process for obtaining a [U.S.] visa' for one of the client's relatives and of agreeing to aid a California tribe represented by Abramoff on tax and post office issues. Ney also placed comments in the Congressional Record backing Abramoff's efforts to gain control of the Florida gambling company, SunCruz Casinos, and offered legislative language sought by Abramoff that would have reopened a Texas tribe's shuttered casino." Ney is also accused of having helped an Abramoff client win a federal contract to install cellular telephone antennas in House office buildings.
OTHER CONGRESSIONAL MEMBERS: The Wall Street Journal reports that Abramoff says he has information that could implicate 60 lawmakers. Three that you might not know about yet: Sen. Conrad Burns (R-MT), Rep. J.D. Hayworth (R-AZ), and Rep. John Doolittle (R-CA). Burns collected nearly $150,000 from Abramoff and his clients, had staff shuttle between Abramoff's lobbying shop and his Senate office, and provided favors for tribes and garment manufactures represented by Abramoff. Burns's staff flew to the 2001 Super Bowl on the Abramoff corporate jet. Hayworth and Doolittle each received $64,000 from Abramoff and his clients, failed to report use of Abramoff's luxury skyboxes at sporting events, and provided favors to tribes represented by Abramoff.
A CALL FOR REFORM: "Abramoff has become a symbol of a system out of control." The good news to come from the Abramoff scandal is that lobbyists are "taking a step backward and assessing how they are doing business and how they are operating." "The Abramoff scandal is causing a reexamination of what lobbyists do in town," said R. Bruce Josten, executive vice president of the U.S. Chamber of Commerce. And John Jonas, a lobbyist at Patton Boggs, said he expects "less partying, less gifting, more awareness about compliance" with rules. Congress will also take another look at the rules that govern lobbyists. Rep. David Obey (D-WI) was one of the first members of Congress, along with three other colleagues, to offer a comprehensive proposal for rules changes that would make it more difficult for lawmakers to sneak provisions into legislation on behalf of special interests. "Sens. John McCain (R-Ariz.) and Russell Feingold (D-Wis.), who co-wrote campaign finance changes a few years ago, have introduced separate proposals that would crack down hard on lobbying as now practiced. Their ideas will serve as the starting point for what is expected to be a vigorous debate." Even former Speaker of the House Newt Gingrich, whose leadership over the Republican revolution of 1994 has gone astray from the stated goals of accountability, opportunity, and responsibility, has again called for change in Congress.
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