Associate of Lobbyist Charged as Part of Corruption Scheme
By ANNE E. KORNBLUT and MARIA NEWMAN
NYTimes.com November 18, 2005
WASHINGTON, Nov. 18 - Michael P.S. Scanlon, a business associate of the lobbyist Jack Abramoff, was charged today with conspiring to defraud Indian tribes of millions of dollars as part of a corruption scheme that included at least one member of Congress.
Mr. Scanlon, formerly the spokesman for Representative Tom DeLay, sought to "corruptly offer and provide things of value, including money, meals, trips and entertainment to federal public officials" in exchange for help with legislation and other favors, according to legal papers filed today.
The court document singled out one lawmaker, referring to him as "representative #1," as the chief recipient of lavish gifts from Mr. Scanlon and his partner. Representative Bob Ney, Republican of Ohio, has been subpoenaed in the case and the description in the indictment matches public accounts of his work with the lobbyists.
Mr. Ney has proclaimed his innocence, saying he was tricked into doing favors for Mr. Scanlon and Mr. Abramoff.
Brian J. Walsh, a spokesman for Mr. Ney, said the congressman would cooperate fully with investigators.
"He has not been told that he is the target of any investigation and there would be no grounds to do so," Mr. Walsh said in a statement. "Mr. Scanlon's being charged with lying to and cheating his clients does not change that."
Today's action came in what is called a criminal information filing, rather than an indictment, a legal distinction that often means prosecutors have reached a plea agreement with a defendant.
A Justice Department spokesman, Bryan Sierra, told The Associated Press that a hearing has been scheduled for Monday in Mr. Scanlon's case, but he provided no other details.
Investigators from several law enforcement agencies have been pursuing accusations that Mr. Abramoff and Mr. Scanlon defrauded several Indian tribes that paid them about $80 million for four years of work.
The inquiry has had repercussions across Washington because of Mr. Abramoff's and Mr. Scanlon's close ties to Mr. DeLay, who stepped down from his leadership post after being charged with violating campaign finance law in Texas.
One Bush administration official, David Safavian, the head of procurement at the Office of Management and Budget, was forced to resign in September after he was charged with lying to investigators about assistance he gave to Mr. Abramoff and obstructing a federal inquiry involving the lobbyist. The month before, a federal grand jury in Florida indicted Mr. Abramoff on charges of fraud and conspiracy stemming from his purchase of a fleet of gambling boats in 2000.
In the case of Mr. Scanlon, today's filing alleges that "Lobbyist A," who is not identified, solicited an Indian tribe in Mississippi in 1995 to provide lobbying services on taxes and other issues relating to tribal sovereignty.
The lobbyist then recommended that the tribe hire Mr. Scanlon's company, Capital Campaign Strategies, while concealing the fact the Lobbyist A would receive 50 percent of the profits from the tribe's payment to Mr. Scanlon, according to the document.
The Mississippi tribe paid Mr. Scanlon's firm $14.8 million from June 2001 through April 2004, while Mr. Scanlon concealed from the tribe that 50 percent of the profit "was kicked back to Lobbyist A pursuant to their secret arrangement," the court papers said.
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Anne E. Kornblut reported from Washington for this article, and Maria Newman from New York.
By ANNE E. KORNBLUT and MARIA NEWMAN
NYTimes.com November 18, 2005
WASHINGTON, Nov. 18 - Michael P.S. Scanlon, a business associate of the lobbyist Jack Abramoff, was charged today with conspiring to defraud Indian tribes of millions of dollars as part of a corruption scheme that included at least one member of Congress.
Mr. Scanlon, formerly the spokesman for Representative Tom DeLay, sought to "corruptly offer and provide things of value, including money, meals, trips and entertainment to federal public officials" in exchange for help with legislation and other favors, according to legal papers filed today.
The court document singled out one lawmaker, referring to him as "representative #1," as the chief recipient of lavish gifts from Mr. Scanlon and his partner. Representative Bob Ney, Republican of Ohio, has been subpoenaed in the case and the description in the indictment matches public accounts of his work with the lobbyists.
Mr. Ney has proclaimed his innocence, saying he was tricked into doing favors for Mr. Scanlon and Mr. Abramoff.
Brian J. Walsh, a spokesman for Mr. Ney, said the congressman would cooperate fully with investigators.
"He has not been told that he is the target of any investigation and there would be no grounds to do so," Mr. Walsh said in a statement. "Mr. Scanlon's being charged with lying to and cheating his clients does not change that."
Today's action came in what is called a criminal information filing, rather than an indictment, a legal distinction that often means prosecutors have reached a plea agreement with a defendant.
A Justice Department spokesman, Bryan Sierra, told The Associated Press that a hearing has been scheduled for Monday in Mr. Scanlon's case, but he provided no other details.
Investigators from several law enforcement agencies have been pursuing accusations that Mr. Abramoff and Mr. Scanlon defrauded several Indian tribes that paid them about $80 million for four years of work.
The inquiry has had repercussions across Washington because of Mr. Abramoff's and Mr. Scanlon's close ties to Mr. DeLay, who stepped down from his leadership post after being charged with violating campaign finance law in Texas.
One Bush administration official, David Safavian, the head of procurement at the Office of Management and Budget, was forced to resign in September after he was charged with lying to investigators about assistance he gave to Mr. Abramoff and obstructing a federal inquiry involving the lobbyist. The month before, a federal grand jury in Florida indicted Mr. Abramoff on charges of fraud and conspiracy stemming from his purchase of a fleet of gambling boats in 2000.
In the case of Mr. Scanlon, today's filing alleges that "Lobbyist A," who is not identified, solicited an Indian tribe in Mississippi in 1995 to provide lobbying services on taxes and other issues relating to tribal sovereignty.
The lobbyist then recommended that the tribe hire Mr. Scanlon's company, Capital Campaign Strategies, while concealing the fact the Lobbyist A would receive 50 percent of the profits from the tribe's payment to Mr. Scanlon, according to the document.
The Mississippi tribe paid Mr. Scanlon's firm $14.8 million from June 2001 through April 2004, while Mr. Scanlon concealed from the tribe that 50 percent of the profit "was kicked back to Lobbyist A pursuant to their secret arrangement," the court papers said.
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Anne E. Kornblut reported from Washington for this article, and Maria Newman from New York.