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Abramoff probe spells trouble for Congress


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"This could be the Enron of lobbying," Ring told the colleague.

Rival lobbyists, including some Republicans, were comparing notes about what they considered Abramoff's outrageous conduct.

One of them contacted The Post in fall 2003. In early 2004, The Post published a detailed account of Abramoff's tribal lobbying, showing how four of Greenberg Traurig's Indian clients had paid $45 million, most of it in fees to Scanlon's firm. Within weeks, Greenberg initiated an internal investigation, Abramoff was ousted and the Senate Indian Affairs Committee began its own inquiry, which unearthed hundreds of incriminating e-mails from Abramoff's Greenberg Traurig computer files.

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Abramoff had another problem that few people in Washington knew about.

He and another old friend from College Republican days, Adam Kidan, had purchased in 2000 a fleet of Florida casino boats for $147.5 million. By 2004, SunCruz Casinos was bankrupt, and the two men were being sued by lenders for $60 million in loan guarantees, accused of faking a wire transfer for the $23 million they had promised to put into the deal.

Even more serious, Abramoff and Kidan were targets of a Florida federal grand jury investigating the SunCruz wire transfer. And local authorities were probing the gangland-style slaying of the man who had sold them the cruise line, Konstantinos "Gus" Boulis.

Greenberg Traurig officials have said that they asked Abramoff to resign in March 2004 over unauthorized personal transactions. They have noted that they had no knowledge of his financial arrangement with Scanlon before they received inquiries from The Post.

However, two months before the firm requested Abramoff's resignation, Greenberg lawyers representing Abramoff in the SunCruz bankruptcy summoned Scanlon to the firm's Miami headquarters to ask about the relationship, according to two people close to Scanlon. Scanlon told them he had paid Abramoff $19 million out of the money he had received in public relations fees from tribal clients. Cesar L. Alvarez, president and chief executive officer of Greenberg Traurig, said the firm will not comment on any meeting with Scanlon.

By the spring of 2004, the Justice Department had launched an investigation of Abramoff and Scanlon that quickly developed into a multi-agency task force.

Pressure to plead
Nearly two years later, Abramoff's legal troubles appear to threaten the careers of many of his colleagues and political allies. Sources familiar with the Justice Department investigation say that half a dozen lawmakers are under scrutiny, along with Hill aides, former business associates and government officials.

Two of Abramoff's former business partners -- Scanlon and Kidan -- have pleaded guilty and have agreed to testify about bribery and fraud in Florida and Washington.

Three men have been arrested in the Boulis killing. Two of the three were Kidan's associates; one of them is known to law enforcement as an associate of the Gambino crime family.

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