Jack Abramoff Indian Lobbying Scandal - Continuing Investigations

Continuing Investigations

On Friday, November 25, 2005, the Wall Street Journal reported the expansion of the investigation to four members of Congress: in addition to Ney and DeLay, the report includes Rep. John Doolittle (R., Calif.) and Sen. Conrad Burns (R., Mont.) On December 2, 2005, the New York Times reported that federal prosecutors were considering a plea bargain arrangement that would give Abramoff some consideration if he provided evidence that would implicate members of Congress and their senior staffers in receiving job offers in return for legislative favors.

The guilty pleas signed by Abramoff in early January 2006 state that he bribed public officials. One of the cases of bribery described in detail involves a person identified as "Representative #1," who was reported by the Washington Post to be Representative Bob Ney (R-OH). Ney's spokesman confirmed that Ney was the representative identified, but denied any improper influence. The agreement also details Abramoff's practice of hiring former congressional staffers. Abramoff used these persons' influence to lobby their former Congressional employers, in violation of a one-year federal ban on such lobbying.

After Abramoff's guilty plea, the federal government shifted its investigation in January 2006 to focus on the lobbying firm Alexander Strategy Group, founded by a "close friend of DeLay's and his former chief of staff." The lobbying firm announced its closure at the end of the same month due to "fatal publicity"; it had represented such large firms as Microsoft and PhRMA.

On June 22, 2006 the U.S. Senate Committee on Indian Affairs released its final report on the scandal. The report states that under the guidance of the Mississippi Choctaw tribe's planner, Nell Rogers, the tribe agreed to launder money because "Ralph Reed did not want to be paid directly by a tribe with gaming interests." It also states that Reed used non-profits, including Grover Norquist's Americans for Tax Reform, as pass-throughs to disguise the origin of the funds, and that "the structure was recommended by Jack Abramoff to accommodate Mr. Reed’s political concerns."

ABC News reported on November 15, 2006 that Abramoff told prosecutors that Senator Harry Reid (D) requested contributions of $30,000 from Abramoff's clients. His associate Reid agreed to assist him in matters concerning Indian casinos.

In August 2010, the government ended a six-year investigation of Tom DeLay's ties to the disgraced lobbyist Jack Abramoff, according to DeLay's lead counsel in the matter, Richard Cullen. A state case continues in Texas, with a hearing scheduled for Aug. 24. A trial is expected in spring 2011 and could last several weeks.