Sun Cruz Casinos Sale (2000) - Purchase of SunCruz Casinos and Political Ties

Purchase of SunCruz Casinos and Political Ties

Boulis' lawyer Art Dimopoulos worked at Preston Gates Ellis & Rouvelas Meeds, a large firm in Seattle, Washington. Dimopoulos was tasked with finding a buyer for SunCruz. Jack Abramoff, a lobbyist then employed at the same firm, heard about the situation. Abramoff told Dimopoulos that he knew buyers who would be interested. They included himself, but ethics rules prohibit the same law firm from representing a buyer and a seller, therefore Abramoff hid his interest in the purchase from his firm.

Abramoff enlisted Adam Kidan as a partner in the deal, along with another minor partner, Ben Waldman. Both were acquaintances of Abramoff during his College Republican days. The deal started to come together. The price was approximately $145 million; Abramoff and Kidan would come up with a $23 million downpayment, and then other financiers would release loans.

Press accounts have suggested that Abramoff used his political connections to gain support for the deal in Washington. Tom DeLay, then House minority whip, gave Boulis a flag that had flown over the Capitol building. Abramoff brought his lead financier in the deal to a fund raiser for DeLay in Abramoff's box at FedEx Field.

Ohio Republican Representative Bob Ney aided the purchase in the House on several occasions. In March 2000, before the deal was closed, Ney entered comments in the Congressional Record accusing the SunCruz management of cheating passengers.

Rep. Dana Rohrabacher (R-Calif.) was listed as a financial reference for Abramoff in the purchase. He was also quoted in the Washington Post as saying "I don't remember it, but I would certainly have been happy to give him a good recommendation" and "He's a very honest man."

On September 22, 2000, in secret, Abramoff and Adam Kidan convinced Boulis to accept promissory notes for $20 million in exchange for a secret 10 percent interest in the newly reorganized SunCruz Casinos. The deal was doubly illegal: Abramoff and Kidan were violating the terms of their purchase agreement with their financiers which required that they put up $23 million of their own money, and Boulis was violating the terms of his settlement with the government, which required that he separate himself entirely from his company.

The deal was closed on September 27, using false documents that purported to attest that Abramoff and Kidan had paid the $23 million. On October 26, 2000, Ney entered comments into the Congressional Record praising the change of ownership. Ney has since accused Abramoff of duping him.