Abramoff pleads guilty in corruption case

The Bush administration’s former chief procurement official, David H. Safavian, was charged this fall with making false statements and obstructing investigations into the 2002 golf outing. Safavian, former chief of staff of the General Services Administration, the government’s procurement arm, has pleaded innocent to those charges.

Court documents also said Abramoff solicited $50,000 from a wireless telephone company and got Ney’s agreement to push the company’s application to install a wireless telephone infrastructure in the House of Representatives, a job Ney’s committee would have overseen.

Guilty plea from partner
Pressure had been intensifying on Abramoff to strike a deal with prosecutors since another former partner, Adam Kidan, pleaded guilty earlier this month to fraud and conspiracy in connection with the 2000 SunCruz boat deal in Florida.

The continuing saga of Abramoff’s legal problems has caused anxiety at high levels in Washington, in both the Republican and Democratic parties.

Abramoff raised at least $100,000 for President Bush’s 2004 re-election effort, earning the honorary title “pioneer” from the campaign.

In Bush’s first 10 months in office in 2001, Abramoff and other members of his lobbying team logged at least 200 contacts with the administration on behalf of at least one client, the Northern Mariana Islands. The meetings included some with high-ranking officials such as then-Attorney General John Ashcroft and policy advisers in Vice President Dick Cheney’s office. The Marianas’ agenda included seeking friendly hires at federal agencies and preservation of its exemption from the U.S. minimum wage.

White House scorn
White House spokesman Scott McClellan could not say Tuesday whether Abramoff ever met President Bush. But when asked at the White House about this, the spokesman said that “what he is reportedly acknowledging doing is unacceptable and outrageous.”

“If laws were broken, he must be held to account for what he did,” McClellan said.

For months, prosecutors in Washington have focused on whether Abramoff defrauded his Indian tribal clients of millions of dollars and used improper influence on members of Congress.

In a five-year span ending in early 2004, tribes represented by the lobbyist contributed millions of dollars in casino income to congressional campaigns, often routing the money through political action committees for conservative lawmakers who opposed gambling.

Abramoff also provided trips, sports skybox fund-raisers, golf fees, frequent meals, entertainment and jobs for lawmakers’ relatives and aides.

In Florida, Abramoff and Kidan were indicted in August on charges of conspiracy, wire fraud and mail fraud in connection with their purchase of the SunCruz fleet for $147.5 million from Miami businessman Konstantinos “Gus” Boulis.

Prosecutors said the pair faked a $23 million wire transfer to make it appear that they were making a significant contribution of their own money into the deal. Based on that transfer, lenders Foothill Capital Corp. and Citadel Equity Fund Ltd. agreed to provide $60 million in financing for the purchase.

Kidan pleaded guilty Dec. 15 to one count of conspiracy and one count of wire fraud. He faces a maximum of 10 years in prison and up to $500,000 in fines at sentencing scheduled for March 1.

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