DeLay Ex-Aide to Plead Guilty in Lobby Case
By Anne E. Kornblut
The New York Times
Saturday 19 November 2005
http://www.truthout.org/docs_2005/111905X.shtml
Washington - Michael Scanlon, a former top official for
Representative Tom DeLay and one time partner of the lobbyist
Jack Abramoff, has agreed to plead guilty in a deal with federal
prosecutors, according to his lawyer. The deal reveals a
broadening corruption investigation involving top members of
Congress.
Criminal papers filed in federal court outlined a conspiracy
that not only named Mr. Scanlon but also mentioned a
congressman, identified only as Representative No. 1, as part of
the exchange of favors from clients funneled to lobbyists and
officials.
This was the first time that a member of Congress, identified by
lawyers in the case as Representative Bob Ney, Republican of
Ohio, has been implicated in criminal papers as part of the
inquiry, which has sprawled from Indian casinos to the lucrative
lobbying firms of Mr. Abramoff and Mr. Scanlon and then reached
to the Republican leadership.
Federal prosecutors announced a single conspiracy charge against
Mr. Scanlon on Friday, in advance of a Monday court hearing at
which he is expected to plead guilty in exchange for his
cooperation. Investigators accused Mr. Scanlon of conspiring to
defraud Indian tribes of millions of dollars as part of a
lobbying and corruption scheme.
Mr. Scanlon, 35, is a former spokesman for Mr. DeLay. News of
his cooperation with law enforcement officials sent a jolt
through the Republican majority in Congress.
Mr. DeLay has been indicted in Texas on unrelated charges
involving fund-raising practices for state Republicans. His ties
to Mr. Abramoff, along with costly overseas trips, have been
under investigation for more than a year. The indictment forced
Mr. DeLay to step aside as House majority leader this fall.
Court papers filed Friday alleged that Mr. Scanlon and Mr.
Abramoff, who has not been charged in the Indian lobbying case,
had sought to "corruptly offer and provide things of value,
including money, meals, trips and entertainment to federal
public officials in return for agreements to perform official
acts." The wording suggested that more than one lawmaker was
under investigation.
But the document singled out Representative No. 1 as the main
recipient of gifts, tickets and meals - including a now infamous
golfing trip to Scotland - in exchange for helping Mr. Scanlon
and Mr. Abramoff with their clients.
Mr. Ney, chairman of the House Administration Committee, has
offered his cooperation to prosecutors, said Brian Walsh, his
spokesman, who added that Mr. Ney had contended that he was
tricked by Mr. Scanlon and Mr. Abramoff into assisting their
clients.
Federal prosecutors and Congressional officials have been
conducting extensive investigations into the lobbying practices
of Mr. Abramoff and Mr. Scanlon, who earned about $82 million
representing a handful of wealthy Indian tribes on gambling
issues over four years. Investigators believe the two men
funneled millions through charities and front organizations to
skim profits, avoid taxes and mask incomplete work.
Beyond accusations of fraud, investigators have delved into the
politically delicate territory of the relationship between
lobbyists and lawmakers. Until last year, Mr. Abramoff ruled an
industry governed by networking because of his close ties to Mr.
DeLay, trading on his access to the rising Republican leader to
build a lucrative lobbying practice. He and Mr. Scanlon are at
the center of a Senate inquiry that held its final hearing this
week.
In the eight-page criminal filing, prosecutors accused Mr.
Scanlon of taking part in a "corruption scheme" between January
2000 and April 2004, working alongside a "Lobbyist A" who was
identified by lawyers involved in the case as Mr. Abramoff.
The pair "provided a stream of things of value" to
Representative No. 1 and members of his staff, the charge read.
In return, both Mr. Scanlon and Mr. Abramoff received agreements
from Mr. Ney "to perform a series of official acts," including
"agreements to support and pass legislation, agreements to place
statements into the Congressional Record," and meetings with
their clients.
The court filing also states that the congressman helped one of
the businessmen's clients apply for a license to install
wireless telephone infrastructure in the House of
Representatives. Mr. Ney's committee manages such issues.
Mr. Ney has been the focus of scrutiny for months after
revelations that he took a 2002 golfing trip to Scotland that
was sponsored by Mr. Abramoff. Mr. Ney has started a legal
defense fund. His legal troubles have added to the growing
ethics accusations against Congressional Republicans.
Other lawmakers including Mr. DeLay received campaign donations
from Mr. Abramoff's and Mr. Scanlon's Indian clients. But Mr.
Ney performed what prosecutors portrayed as blatant favors for
Mr. Abramoff and Mr. Scanlon, inserting remarks helpful to their
business into the Congressional Record and sponsoring bills at
their behest.
Mark H. Tuohey, the lawyer representing Mr. Ney, said that the
congressman had never offered any legislative help to the
lobbyists in exchange for travel, like the 2002 golfing trip to
Scotland, or gifts.
Mr. Ney has said that Mr. Abramoff deceived him over how the
Scotland trip was paid for in his travel disclosure forms,
saying it was paid for by a conservative educational group, not
by Mr. Abramoff or his lobbying firm - and about the details of
Mr. Abramoff's purchase of a casino boat fleet in Florida in
2001.
"I think the people who are named in this among others, Scanlon
and Abramoff, didn't tell him the truth," Mr. Tuohey said of Mr.
Ney.
Mr. Abramoff was indicted in Florida this year on fraud and
conspiracy charges relating to a separate effort to buy Sun
Cruz, a fleet of casino boats, in 2000. Although Mr. Scanlon did
public affairs work for Sun Cruz, he was not charged in that
case. It now appears that Mr. Scanlon has been cooperating with
the authorities to reach a plea deal in the Indian gambling
inquiry. Mr. Abramoff is not cooperating with law enforcement
officials, people involved with the case said.
The lawyer for Mr. Abramoff, Abbe Lowell, declined to comment.
The lawyer for Mr. Scanlon, Stephen Braga, confirmed that his
client would enter a plea on Monday. "Mr. Scanlon and the
Department of Justice will present a proposed plea agreement to
the court to resolve the charge," Mr. Braga said.
How much Mr. Scanlon knows and has told prosecutors about the
business practices of Mr. Abramoff and members of Congress
remains unclear. "This puts a tremendous amount of pressure on
Abramoff because Scanlon was reportedly his closest associate,"
said Lawrence Barcella, a former federal prosecutor who is now a
prominent defense lawyer in Washington. As for politicians like
Mr. DeLay and Mr. Ney, Mr. Barcella said, "I wouldn't be sitting
as comfortably today as I was yesterday if I were them."
In addition to the corruption scheme, prosecutors say Mr.
Scanlon and Mr. Abramoff carried out a secret kickback deal in
which Mr. Abramoff encouraged his Indian clients to hire Mr.
Scanlon for public affairs work. Mr. Scanlon then funneled half
his profits to Mr. Abramoff. Their aim was "to enrich themselves
by obtaining substantial funds from their clients through fraud
and concealment and through obtaining benefits for their clients
through corrupt means," the charge said.
Tribes in Mississippi, Louisiana, Texas and Michigan fell prey
to the conspiracy, the Scanlon papers said.
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TRUTHOUT HOME:

November 18, 2005 | US Special Counsel Patrick Fitzgerald will
convene a new grand jury to hear testimony in the CIA leak case,
which has already seen the indictment of a top White House
official.
(Photo: Charles Rex Arbogast / AP Photo)
http://www.truthout.org/index.htm
Fitzgerald Going Back to Grand Jury
By Jason Leopold
t r u t h o u t | Investigative Report
Friday 18 November 2005
Special Prosecutor Patrick Fitzgerald will present evidence next
week to a grand jury in his two year-old investigation into the
outing of covert CIA agent Valerie Plame Wilson in the hopes of
securing a criminal indictment against an undetermined number of
senior officials in the Bush administration for playing some
sort of role in the leak, attorneys who have been working on
this case since its inception said.
Adding a new wrinkle in the ongoing drama surrounding a federal
probe into the Plame Wilson leak, Bob Woodward, the assistant
managing editor of the Washington Post, disclosed that he
testified under oath this week before Fitzgerald, stating that
he too was told about Plame Wilson’s CIA status in June 2003 by
an administration official.
Plame Wilson had recommended that her husband, former Ambassador
Joseph Wilson, an outspoken critic of the administration’s
pre-war Iraq intelligence, be sent to Niger to investigate
allegations that Iraq had tried to purchase uranium from the
African country. President Bush had cited the Iraq-uranium
claims in his January 2003 State of the Union address. Wilson
had told reporters privately in May 2003 that he had been the
CIA’s special envoy sent to Niger to look into that rumor,
reporting back to the CIA that the charges were false.
Woodward’s testimony contained information about several
individuals at the White House that led Fitzgerald directly back
to another grand jury, the substance of which sources would not
divulge saying it could taint the case. Sources said the
evidence involved additional aides in the Vice President’s
office as well as senior officials who were part of a
clandestine faction known as the White House Iraq Group, which
was set up by President Bush’s Chief of Staff Andrew Card in
August 2002 to "market" the Iraq war to the public via selective
leaks to major newspapers about Iraq’s alleged weapons of mass
destruction program.
In January 2004, Fitzgerald sent the White House subpoenas
seeking documents from July 6 to July 30, 2003 of the
little-known White House Iraq Group. Now, according to sources,
he’s going to use that evidence in his grand jury proceedings,
which may unintentionally shed some light on how the Niger
claims ended up in Bush’s State of the Union address.
The WHIG had operated under the radar for quite some time. In
August 2003, the Washington Post published the only account of
the group's existence. During its very first meetings, Card's
Iraq group ordered a series of white papers showing Iraq’s arms
violations. The first paper, "A Grave and Gathering Danger:
Saddam Hussein's Quest for Nuclear Weapons," was never
published. However, the paper was drafted with the assistance of
experts from the National Security Council and Cheney's office.
"It met weekly in the Situation Room, The Post said, and its
regular participants included senior political adviser Karl
Rove; communication strategists Karen Hughes, Mary Matalin and
James Wilkinson; legislative liaison Nicholas Calio; policy
advisers led by national security adviser Condoleezza Rice and
her deputy Stephen Hadley; and Lewis "Scooter" Libby, chief of
staff to Vice President Dick Cheney," according to a March 5,
2004 report in Newsday.
According to two intelligence officials at the CIA with
knowledge of the inner workings of the White House Iraq Group,
Vice President Dick Cheney was present at several of those
meetings and personally discussed with those individuals in
attendance at least two interviews Wilson gave to New York Times
columnist Nicholas Kristoff and Washington Post reporter Walter
Pincus, claiming that the administration "twisted" pre-war
intelligence, and what the response from the administration
should be.
When Wilson wrote an op-ed in the New York Times on July 6, 2003
attacking the administration’s assertion that Iraq tried to
purchase uranium, CIA Director George Tenet was forced one day
later to take responsibility for not omitting the Niger claim
from Bush's State of the Union speech, citing pressure from the
National Security Council. Within days of Tenet’s mea culpa, NSC
deputy Stephen Hadley admitted he forgot seeing two memos from
the agency expressing doubts about the intelligence related to
Niger.
Although bulletproof evidence has surfaced during the past few
months that proves Cheney played an active role in obtaining
information from administration officials about the then-unnamed
CIA official, and disseminating the classified material to
senior aides - perfectly legal - there are doubts that the Vice
President himself was the source who leaked the information to
Woodward.
In a statement published in the Washington Post Wednesday,
Woodward, the Pulitzer Prize-winning reporter whose
investigative stories on the Watergate scandal forced the
resignation of President Richard Nixon, said he had first
learned about Plame Wilson’s identity in mid-June 2003, during a
time when Cheney and his senior aides had gone to great lengths
to find out her identity in the hopes of silencing Wilson, who
at the time had been causing a stir behind the scenes by calling
into question the veracity of the administration’s pre-war
intelligence.
Woodward said that he had spoken with two administration
officials on June 20 and June 23, 2003. It is unclear which of
these dates Woodward had spoken with Cheney and Hadley, whether
it was in person or during a phone interview. Cheney was in Boca
Raton, Fla., on June 20, 2003 speaking to the International
Petroleum Association about the war on terror and the ongoing
war in Iraq. On June 23, 2003 Cheney was the headliner at a
fundraiser for the 2004 presidential campaign in Hopkinton,
Mass. The vice president’s office would not return calls seeking
information as to whether Cheney returned to Washington
following the fundraiser and speech.
On Friday, Hadley refused to respond to questions from the
Associated Press denying he was Woodward’s source. A spokeswoman
for the National Security Council said Hadley categorically
denied being Woodward’s source, adding that the two did not meet
in June 2003. However, the spokeswoman refused to go on the
record and asked that her statements be attributed to a "White
House official" because of the sensitivity of the matter. When
asked why her statement could not be attributed to the NSC she
said, "This situation is too sensitive and that is the line we
are telling other reporters."
The New York Times reported Thursday that Cheney and Hadley
hadn’t joined the chorus of top administration officials who
have publicly denied speaking to Woodward about Plame. Those
ruled out or who have issued statements saying they did not
speak to Woodward include President Bush; Bush's Deputy Chief of
Staff Andrew Card; former Secretary of State Colin Powell; John
McLaughlin; Deputy Chief of Staff Karl Rove, who remains in
legal limbo for his role in the leak; and White House
Communications Director Dan Bartlett.
At the time Woodward had spoken with Hadley, he was writing a
book, "Plan of Attack," about the invasion of Iraq. Ironically,
it was during the 30th anniversary of Watergate when Woodward
was told about Plame Wilson. However, the reporter seemed to be
unaware that the disclosure would become, next to Watergate, one
of the biggest scandals in White House history.
In his statement, Woodward said he met with I. Lewis "Scooter"
Libby, Cheney’s former chief of staff, who was indicted on five
counts of obstruction of justice and lying to a grand jury,
about his role in the leak, "at 5:10 p.m. in his office adjacent
to the White House. I took the 18-page list of questions with
the Page-5 reference to 'yellowcake' to this interview and I
believe I also had the other question list from June 20, which
had the 'Joe Wilson's wife' reference."
With Hadley and Libby being named as the administration
officials who shared