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The Abramoff-Reed Indian Gambling Scandal is a U.S. political scandal involving the work done by political lobbyists Jack Abramoff, Ralph E. Reed, Jr., Grover Norquist and Michael Scanlon on behalf of Indian casino gambling interests. The lobbyists are accused of orchestrating lobbying against their own clients in order to force them to pay for lobbying services.

In the course of the scheme, the lobbyists are accused of illegally giving gifts and making campaign donations in return for political favors to several senior Republican politicians, in particular Tom DeLay, Conrad Burns and Bob Ney.

In addition to his involvement in the Indian Gambling scandal, Abramoff is under investigation by a grand jury in Guam over possibly illegal contract payments and money laundering and was indicted on August 11 2005 by a third grand jury in Fort Lauderdale, Florida, for bank fraud arising out of an unrelated business deal.

Background

Abramoff, Reed and Norquist all served as officers in the College Republican National Committee (CNRC).

In College, Reed would sleep on Abramoff’s couch. According to his book "Active Faith," he also introduced Abramoff to his future wife.

Abramoff was elected Chairman of the CRNC in 1983, and appointed Reed Executive Director of the CRNC in the same year, succeeding Norquist. Norquist had managed Abramoff's campaign for National Chairman and would later found Americans for Tax Reform, an anti-tax group that would serve as a fundraising conduit in the Indian gaming scandal.

At the CRNC, Abramoff, Norquist and Reed formed what was known as the "Abramoff-Norquist-Reed triumvirate." Upon Abramoff's election, the trio purged "dissidents" and re-wrote the CRNC's bylaws to consolidate their control over the organization. Reed was the "hatchet man" and "carried out Abramoff-Norquist orders with ruthless efficiency, not bothering to hide his fingerprints." (Nina J. Easton, Gang of Five, page 142)

Allegations of Corrupt Lobbying Practices

Abramoff and partner Scanlon are alleged to have engaged in a series of corrupt practices in connection to their lobbying work for various Indian Casino gambling tribes. The fees paid to Abramoff and Scanlon for this work are believed to exceed $85 million.

In particular Abramoff and partner Scanlon are alleged to have conspired with Washington power broker Norquist and Christian activist Reed to co-ordinate lobbying against his own clients and prospective clients with the objective of forcing them to engage Abramoff and Sanlon to lobby against their own covert operations.

Allegation of Double Dealing

Reed repeatedly denied knowing the source of the funds used to campaign against the casinos until prosecutors released emails exchanged between Reed and Abramoff. According to emails, Reed and Norquist contacted Abramoff separately in 1999 to say they wanted to do business. Norquist complained about a "$75K hole in my budget from last year." Reed said he was counting on Abramoff "to help me with some contacts."

On February 7, 2000, Abramoff warned Reed that an initial payment for antilottery radio spots and mailings would be less than Reed thought. "I need to give Grover something for helping, so the first transfer will be a bit lighter," Abramoff wrote. The transfer was apparently lighter than even Abramoff expected. In a note to himself on February 22, Abramoff wrote, "Grover kept another $25K!" Norquist claims he had permission.

In 2000, Abramoff forced the Choctaws to give the Alabama Christian Coalition $1.15 million in installments. Norquist agreed to pass the money on to the Coalition and another Alabama antigambling group, both of which Reed was mobilizing for the fight against a proposed Alabama state lottery.

In 2002, after Abramoff worked with Reed to close the casino of the Tigua tribe, he persuaded the tribe to hire him to lobby Congress to reopen the casino.

Of the $7.7 million Abramoff and Scanlon charged the Choctaw for projects in 2001, they spent $1.2 million for their efforts and split the rest in a scheme they called "gimme five."

Alleged Spending Irregularities

In 2004, Abramoff resigned from Greenberg Traurig amid a scandal related to spending irregularities in his work as a lobbyist for Native American tribes involved in gambling, namely The Mississippi Choctaw, the Louisiana Coushatta, the Agua Caliente, Sandia Pueblo, the Saginaw Chippewa and the Tigua of Ysleta del Sur Pueblo.

The Mississippi Band of Choctaw Indians paid $15 million to Abramoff and Scanlon's organizations. The funds were diverted to a number of projects, including the Eshkol Academy, an all-boys Orthodox Jewish school set up by Abramoff in Maryland, and to a friend who ran sniper workshops for the Israel Defence Forces.

American International Center

Part of the sums paid by the tribes for lobbying were paid to the American International Center, an organization presenting itself as a think tank headed by David Grosh, a lifeguard on the Delaware shore who operated it from his beach house. Grosh had no qualifications or work experience relevant to policy research and currently works as a construction worker. At a Senate hearing, Grosh admitted that he had abetted the deception and said that he was "embarrassed and disgusted to be a part of this whole thing."

Insulting references to clients

In emails now made public by the Senate Committee on Indian Affairs, who is investigating his activities, Abramoff repeatedly referred to Native Americans as "monkeys", "troglodites" and "idiots."

Abramoff via email once asked his co-conspirator Scanlon to meet a client, saying, "I have to meet with the monkeys from the Choctaw tribal council. You need to close the deal... with the client..."

About one tribal client (date unknown) Abramoff wrote to Scanlon, "These mofos are the stupidest idiots in the land for sure." In another email message he wrote, "we need to get some money from those monkeys!!"

Comment by Politicians

John McCain has said of the Abramoff scheme, "Even in this town, where huge sums are routinely paid as the price of political access, the figures are astonishing."

Alleged Influence peddling

Abramoff has a reputation for largesse considered exceptional even by Washington standards. In addition to offering many Republican members of Congress expensive free meals at his Restaurant Signatures, Abramoff maintained four skyboxes at major sports arenas for political entertaining at a cost of over $1 million a year. Abramoff hosted many fundraisers at these skyboxes including events for politicians publicly opposed to gambling, such as John Doolittle.

Timothy Flanigan

Former White House Deputy Counsel Timothy Flanigan left his job in December 2002 to work as General Counsel for Corporate and International Law at Tyco International. He immediately hired Abramoff to lobby Congress and the White House on matters relating to Tyco's Bermudatax-exempt status.

• Tyco Exec: Abramoff Claimed Ties to Administration, Washington Post, September 23, 2005

Deputy United States Secretary of the Interior J. Steven Griles

Abramoff claims in emails sent in 2002 that Griles had pledged to block an Indian casino that would compete with one of his clients. Abramoff later told two people that he was trying to hire Griles.

http://www.washingtonpost.com/wp-dyn/content/article/2005/08/27/AR2005082701067.html

David Safavian

On September 19, 2005, David Safavian, who served as the head of the federal procurement policy at the Office of Management and Budget, was the first arrest of the scandal and was charged with lying to investigators and obstructing the federal inquiry of Abramoff.

House Majority leader Tom DeLay

Joining Abramoff on a vacation was Tom DeLay, whose airfare to London and Scotland in 2000 was charged to an American Express card issued to Abramoff, according to two sources who know Abramoff's credit card account number and to a copy of a travel invoice displaying that number. DeLay's expenses during the same trip for food, phone calls and other items at a golf course hotel in Scotland were billed to a different credit card also used on the trip by a second registered Washington lobbyist, Edwin A. Buckham, according to receipts documenting that portion of the trip.

Ohio Congressman Bob Ney

In 2002, after Abramoff and Reed closed the casino of the Tigua tribe, Abramoff persuaded the tribe to hire him to lobby Congress to reopen the casino. After Abramoff met with Ney to ask him to push the legislation, the Tigua (by overnight mail) sent three checks to Ney's political committees, totaling $32,000. The apparent exchange of campaign contributions in return for Ney's support of an amendment to reopen the Tigua's casino could constitute bribery.

Emails between Abramoff and the Tigua's political consultant show that Ney solicited the Tigua to pay for part of a 2002 golf trip to Scotland, knowing full well that solicitation of travel is specifically prohibited by House rules. Shortly after Ney returned from Scotland, he was scheduled to meet with members of the Tigua tribal council. Prior to that meeting, Abramoff reminded the Tigua that "for obvious reasons" the golf trip would not be mentioned at the meeting, but that Ney show his appreciation "in other ways," which was, Abramoff pointed out, just what the tribe wanted. Although the tribe never ended up paying for the golf trip, Ney's attempt to tie the gift of the trip to the legislative assistance the tribe was seeking likely violates federal criminal law.

Ney (R-OH) lied when he said he was "duped" by Abramoff and lied again on financial disclosure forms when he said that a nonprofit had paid for the trip.

However, Safavian, in an email to his government employer seeking permission to go on the trip, states that Abramoff personally extended invitations to all the guests.

Ney also said he made the trip to speak to Scottish parliamentarians. But the Scottish parliament wasn't in session at the time he was in Scotland.

Ney is also implicated in the separate Abramoff SunCruz scandal.

Some have also accused him of being involved with election fraud in 2004.

Senator Conrad Burns

Conrad Burns (R-Montana) is an alleged recipient of illegal favors and $136,000 in campaign contributions from Abramoff. As the chair of the Interior Subcommittee on Appropriations, Burns received over $136,000 in campaign contributions through Abramoff and then directed $3 million to the Saginaw Chippewa Tribe of Michigan, an Abramoff client and one of the wealthiest tribes in the country from a program intended to help the neediest tribes fix dilapidated schools.

After initially claiming credit for the appropriation, Burns subsequently denied knowledge of it. "A lot of things happened that I didn't know about. It shouldn't have happened, but it did."

Senator John Cornyn

(R-Texas) On November 12, 2001, Reed sent Abramoff an e-mail stating, "get me details so I can alert cornyn and let him know what we are doing to help him" . Similarly, on November 13, Reed wrote "I strongly suggest we start doing patch-throughs to perry and cornyn . We're getting killed on the phone." Also, on January 7, 2002, Reed sent Abramoff an e-mail stating "I think we should budget for an ataboy for cornyn" .

When Cornyn ran for Senate, Abramoff contributed $1,000, the maximum amount legally allowed. Cornyn, who has spoken out against gambling, also received $6,250 in contributions from Las Vegas casino interests who oppose Indian gaming, some of which were made at the same time Cornyn was pushing to close the Tigua's casino.

Senator David Vitter

The Louisiana Jena Band of Choctaws offered testimony accusing Louisiana Senator David Vitter of being in cahoots with Abramoff and his attempts to stymie the tribe's casino plans.

Tom Feeney III

Congressman Feeney (R-FL) joined other Republicans on the now infamous golf trip to Scotland with Abramoff in 2003, making him part of the Abramoff-Reed Indian Gambling Scandal

Questions also have arisen about two other privately funded trips and the possibility of his involvement with election fraud in 2000.

Richard Pombo

In 2003, Abramoff gave Richard Pombo's (R-CA) PAC $5,000. Abramoff also gave $2,000, the maximum allowed, to Pombo's congressional campaign committee that same year.

Mike Ferguson

New Jersey Republican Rep. Mike Ferguson is not going to give back the $1,000 he received in 2001, according to his spokeswoman Abby Bird.

William Gormley

New Jersey State Sen. William Gormley, R-Atlantic, got $1,000 from Abramoff when Gormley was running for the U.S. Senate in 2000.

Abramoff also gave $5,000 to the New Jersey Republican State Committee, which state Democratic Party Chairwoman Bonnie Watson Coleman hopes will be returned to Abramoff.

According to an analysis by the nonpartisan Center for Responsive Politics, Abramoff has contributed in New Jersey alone more than $220,000 since 1995, almost exclusively to Republican candidates and committees and only a "smattering" of those who received donations from Abramoff have returned them.

Documents showed that Abramoff or his firm not only paid travel bills for Republicans like DeLay, but also for Southern Democrats like James Clyburn of South Carolina and Bennie Thompson of Mississippi.

Robert L. Ehrlich Jr./Edward Miller

Robert L. Ehrlich

A federal grand jury issued a subpoena in 2005 to Edward Miller, Governer Ehrlich's (R-MD) deputy chief of staff, because of Miller's connection to Grassroots Interactive.

http://www.washingtonpost.com/wp-dyn/content/article/2005/09/23/AR2005092302050.html

Returned Donations

Rep. Frank LoBiondo, R-N.J., as of August 18, 2005, plans to give back the $1,000 contribution he received in 2001 from Abramoff. In response to a question from Gannett News Service, LoBiondo's spokesman said "The congressman didn't feel it was appropriate to accept his donation."

As of August 18, 2005, Rep. Jim Saxton, R-N.J., has given back a $1,000 contribution Abramoff made in 2001.

No other donatees have returned his money.

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