CORRUPTION

The Biggest Scandal In Congress In Over A Century

Disgraced lobbyist Jack Abramoff's "house of cards" has taken a big hit. Michael Scanlon, former spokesman for Rep. Tom DeLay (R-TX) and lobbying colleague of Abramoff, was right in the middle of Abramoff's deck. Yesterday, Scanlon pleaded guilty to one count of federal "conspiracy with others to commit bribery, mail and wire fraud, and honest services fraud" to cheat Abramoff's Indian tribal clients out of millions of dollars. He now faces "a maximum of five years in prison, a $250,000 fine and repayment of $19.7 million to clients." But this case isn't going to end with Scanlon. Part of the plea deal is that he agrees to fully cooperate with Justice Department prosecutors. "What you're building is a ladder. You have Abramoff at the intermediate step, elected officials above him, and Scanlon...underneath," explained Stan Brand, former counsel to Congress. "He knows where all the bodies are buried," said a congressional aide who worked with Scanlon. Expect what Sen. Byron Dorgan (D-ND) called "a disgusting story of greed unlike any [other]" to further unfold in Scanlon's testimony.

'YOU IZ DA MAN': Abramoff has already been indicted in Florida on unrelated fraud and conspiracy charges and "his day in court...[may] only [be] a matter of time." He and Scanlon worked very closely -- Abramoff at one point gushed to his colleague, "How can I say this strongly enough: YOU IZ DA MAN" -- and collected about $82 million from his tribal clients from 2000-2004. In a scheme the duo termed "gimme-five," Abramoff "would direct tribes to hire Scanlon's public relations firm without telling them Scanlon had agreed to kick back half of the profits to Abramoff." At one point, the two men bilked the Coushatta tribe out of $1 million for a "public affairs" strategy, but then rerouted the money to a charity Abramoff had founded, "which was paying to build a school for his children and give 'sniper training' courses in Israel." Throughout their swindles, Abramoff and Scanlon showed a wild arrogance and contempt for their clients. In e-mail exchanges between the two men, "it is the junior partner who often displays his thirst for wealth. 'I want all their money!!!' [and] 'Weeez gonna be rich!!!'" wrote Scanlon. At another point, he referred to the clients as "monkeys" and "troglodytes."

SCANLON'S PLEA MAKES CONGRESS NERVOUS: "I think this has the potential to be the biggest scandal in Congress in over a century," said Thomas E. Mann of the Brookings Institution. Already in hot water is Rep. Bob Ney (R-OH), who has received a subpoena from the grand jury investigating Abramoff and was named as "Representative #1" in Scanlon's indictment. Abramoff and Scanlon provided Ney and his staff with a "lavish" Scotland golf trip, tickets to sporting events, expensive dinners, and political contributions. In return, Ney "agreed to 'support and pass legislation'" benefiting their clients. Sen. Conrad Burns (R-MT) also helped the Saginaw Chippewa Tribe of Michigan, one of Abramoff's clients, "win a $3 million government award." DeLay, who has been charged on money laundering and conspiracy in an unrelated Texas case, may soon face more trouble. "It's likely that Abramoff has lots of dirt on Tom DeLay," said Craig McDonald, director of Texans for Public Justice. DeLay traveled to Scotland on a trip paid for by Abramoff, an arrangement illegal by congressional rules, as well as on a trip in 1997 to Russia, "underwritten by business interests lobbying in support of the Russian government" and arranged by Abramoff.

RIGHT-WING HIDING IN THE WINGS: David Safavian, former head of the powerful White House Office of Management and Budget, has already gone down as a result of the Abramoff scandals, arrested in September on charges of "lying and obstructing a criminal investigation" into Abramoff. Last week, the Senate Indian Affairs Committee heard testimony from Italia Federici, president of the Council of Republicans for Environmental Advocacy (CREA), about her "unspoken deal" with Abramoff. The lobbyist funneled nearly $500,000 in client money to CREA, and in return, Federici offered him access "to at least two of her close friends, [Secretary of the Interior Gale] Norton and Deputy Secretary J. Steven Griles." Former Christian Coalition director, Ralph Reed, received $10,000 for his campaign to be chair of the Georgia Republican party, paid for Abramoff's tribal clients, unbeknownst to those clients. Additionally, Abramoff actively sought out Reed's guidance "in disguising Indian tribal money sent to anti-gambling campaigns whose leaders were wary of accepting casino cash."