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Indian tribes ‘hurt’ by Abramoff scandal


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Tribes say overbilled for little
Abramoff and associate Michael Scanlon, who plead guilty to conspiracy on Nov. 11, collected $66 million from six Indian tribes seeking influence in Washington. Those tribes now accuse Abramoff and Scanlon of overbilling and delivering little.

Discussion of what was to become a scandal began in 2004 at a hearing of the Senate Indian Affairs Committee, which first heard about the tangled financial web between six Indian tribes and two prominent Washington insiders. Congressional investigators said then that Abramoff and Scanlon charged the tribes more than $66 million in less than four years for minimal work. Committee investigators said the two sold themselves to the tribes as influential Washington operatives whose experience and relationships would reap great rewards for Native Americans.

But what the hearing found, according to a list of subpoenaed documents presented, suggested that Abramoff and Scanlon manipulated the tribes, even their elections, to win contracts worth tens of millions of dollars.

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In September 2004, Milanovich told the Senate committee that Abramoff and Scanlon played a secret role in helping elect tribal council members for the Agua Caliente in 2002, and that the members later voted, against his wishes, to pay the lobbyists about $10 million for consulting work.

Milanovich testified the tribe agreed to donate to a list of politicians, party fundraising groups and charities suggested by Scanlon and Abramoff, and contribute $300,000 in skyboxes in Washington sports stadiums.

Milanovich said the tribe ended its contract with Abramoff's lobbying firm in April 2004 and was trying to recoup some of the $10 million for the consulting work. He also said the tribe had hired a former Federal Election Commission chairman to determine if tribal laws were broken.

But there have been more problems for the tribe recently. The Agua Caliente are currently involved in a court battle in California, where they face $7.5 million in fines for allegedly failing to report numerous campaign contributions and required information about lobbying activities.

The Fair Political Practices Commission is suing the tribe. The tribe, the only one in California with two casinos, has become one of the state's biggest political contributors, doling out more than $13.6 million over the past five years, according to state officials.

Joel Seidman is an NBC News producer based in Washington.


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