Friday, November 04, 2005

The Hammering Continues

“The wackos get their information through the Christian right, Christian radio, mail, the internet and telephone trees." - Michael Scanlon, former superstar of the Delay money machine and current indictee, in a memo to lobbyist Jack Abramoff.

"Simply put, we want to bring out the wackos to vote against something and make sure the rest of the public lets the whole thing slip past them." The brilliance of this strategy was twofold: Not only would most voters not know about an initiative to protect Coushatta gambling revenues, but religious "wackos" could be tricked into supporting gambling at the Coushatta casino even as they thought they were opposing it.

Fortunately, we have Mr. Delay's word that he was in the dark about the whole sordid mess...

3 Comments:

Blogger Management said...

The Hammer falls
It isn't just Tom DeLay. The vast corrupt money machine that funded the Republican Revolution is exploding before our eyes.

Rep. Tom DeLay, R-Texas, talks to reporters on Capitol Hill Wednesday after resigning as House majority leader.

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By Michael Scherer

printe-mail

Sept. 29, 2005 | At its height, the first great political machine of the 21st century worked like this: In Congress, Texas Rep. Tom DeLay controlled the votes like a modern-day Boss Tweed. He called himself "the Hammer." His domain included a vast network of former aides and foot soldiers he installed in key positions at law firms and trade groups, a network that came to be called the "K Street Project." He gathered tithes in the form of campaign cash, hard and soft, and spread it out among the loyal. He legislated for favored donors. He punished those who disobeyed, and bought off those who could be paid.

Conservative activists, who had grown up in the heady days of Reagan's America, patrolled the badlands of American politics for new opportunities. None did it better than Jack Abramoff, a former president of the College Republicans, who had a taste for expensive suits. Abramoff opened a restaurant, Signatures, where the powerful came to be seen and, in many cases, treated to free meals from a menu that included $74 steaks. He pulled in tens of millions of dollars from Indian tribes and the Northern Marianas Islands to help fund other operations -- skyboxes at the MCI Center where DeLay could hold his fundraisers and all-expense trips to Scotland where DeLay and friends could play golf.

Others were drawn into the web as well. Abramoff kicked down money to his old college buddy Grover Norquist, an anti-tax crusader whose role was to keep the right-wing ideologues in line. He hired Ralph Reed, a former advisor to the Christian Coalition, who helped keep the religious right on good terms with the Republican leadership. He hired Michael Scanlon, a former aide to DeLay, as his assistant. He leaned on former lobbying colleagues, like David Safavian, who was working in the Bush administration and could do favors for his clients. Susan Ralston, Abramoff's former gatekeeper and executive assistant, went to work for Karl Rove in the White House.

For a while, the whole operation seemed unstoppable. DeLay, Abramoff, Norquist, Reed and Rove vanquished their Democratic opponents, winning election after election. The loyalty that ensued allowed for a historic cohesion in Congress. Tax breaks passed like clockwork, as did subsidies for favored industries and cuts to long-standing Democratic initiatives. The Democratic Party, which had ruled Capitol Hill for half a century, imploded in confusion.

But the machine may now be coming to an end. The prosecutors have arrived, and they are handing out indictments at a blistering rate. "It's a house of cards," says Norman Ornstein, a congressional scholar at the American Enterprise Institute. "Jack Abramoff has been the ace of spades, but Tom DeLay has been linked arm in arm with him." Now the house is on the brink of collapse, he added. "Everything that surrounded the K Street Project and what flowed from it ... all of that is under intense pressure."

On Wednesday, DeLay was indicted with two aides by a Texas grand jury, accused of flouting campaign finance laws by illegally sending corporate funds to GOP candidates in the state. Two months ago, Abramoff was arrested and charged with fraud in connection with a casino deal in Florida. On Tuesday, two employees of a company owned by Abramoff were charged with murdering the casino's former owner. Last week, the feds arrested David Safavian, who has been working in the White House, on charges of lying to investigators about a trip to Scotland with DeLay and Abramoff. Scanlon, the former DeLay aide who worked with Abramoff, is said to be cooperating with investigators, who are likely to file even more charges.

For those who have followed the machine from its inception, these developments are striking. "It represents the beginning of the end of an era," said Vic Fazio, a Democratic lobbyist at the law firm Akin, Gump and a former California congressman. "A powerful group of people who had consolidated their power in the mid- to late 1990s is now vulnerable to legal attack."

Even some conservatives have begun to distance themselves. "The Tom DeLay machine that he built, there were corruptive elements to it," said Stephen Moore, a longtime conservative activist who sat at the head table at a recent dinner celebrating DeLay's career. Moore, who founded the Free Enterprise Fund, still describes himself as a "Tom DeLay fan," who considers the congressman a "conservative hero." But he has misgivings as well. "All of these guys getting rich off this process rubs some conservatives the wrong way," Moore said. "It's going to be difficult for Tom to recover from this no matter what happens."

Though DeLay may not recover, his machine has not yet collapsed entirely. Late Wednesday, House Speaker Dennis Hastert appointed Rep. Roy Blunt, the Republican whip from Missouri and a disciple of DeLay, as the new majority leader. Republicans, meanwhile, began working to portray the torrent of indictments as politically motivated charges against one individual. "Tom DeLay is a tremendous public servant," said Ken Mehlman, the chairman of the Republican National Committee, in a statement. "It is our sincere hope that justice will remain blind to politics." DeLay also lashed out, as is his fashion, saying he was a victim of "one of the most baseless indictments in American history."

Perhaps the best news for Republicans is the relative disorganization of the Democratic Party, which remains weakened after the 2004 elections and lacks a unified message. Democratic politicians, like Rep. William Jefferson, of Louisiana, and Rep. Maxine Waters, of California, also face their own ethical scandals. As one congressional Republican, Arizona's Rep. Jeff Flake, boasted in the Wall Street Journal Wednesday, "endemic Democratic ineptitude makes Republicans more attractive when graded on a curve."

But even if the collapse of Abramoff and the weakening of DeLay does not end the Republican reign, it will at least expose its workings. For years now, Republicans across Washington have been scratching each other's backs as they march in lockstep with a unified message. With each release of a subpoenaed e-mail, and every new indictment, more information about the workings of the machine -- and the money that was its lifeblood -- comes to light.

In recent weeks, for instance, Timothy Flanigan, a former attorney in the Bush White House, has been answering questions from Congress about his relationship to Abramoff. Flanigan, who has been nominated as deputy attorney general, went to work for the Bermuda-based corporation Tyco after he left the White House. Once there, he hired Abramoff as a lobbyist to reach out to Karl Rove on a tax issue. According to a report in the Washington Post, Abramoff boasted to Flanigan that "he had contact with Mr. Karl Rove" and that Rove could help fight a legislative proposal that would penalize U.S. companies that had moved offshore. Flanigan oversaw a $2 million payment to Abramoff for a related letter-writing campaign that never materialized. Flanigan says the money was diverted into other "entities controlled by Mr. Abramoff."

The charges surrounding DeLay also concern the misuse of money. With two associates, the former majority leader is charged with conspiring to raise $155,000 in 2002 from several major corporations, including Sears Roebuck, the Williams Companies and Bacardi USA. The indictment alleges that DeLay conspired to funnel that money through the Republican National Committee into seven Texas state campaign accounts, where he was helping Republican candidates as part of his effort to redraw Texas voting districts. If the charge is proven, DeLay and his associates would have violated a Texas campaign finance law that prohibits corporate donations to local races.

The ability of DeLay and Abramoff to collect and distribute enormous sums of money was always a key to their success. They used the money to buy friends and crush enemies. They used the money to fund the Republican revolution. As Abramoff told the New York Times in March, "Eventually, money wins in politics."

Those words form a perfect epitaph for a political machine gone awry.

5:16 AM  
Blogger Management said...

Tom DeLay wants you to believe he was completely in the dark about TRMPAC’s activities. Here’s what DeLay said tonight on Hardball:

That’s TRMPAC. That’s not me…I was simply, along with four other elected officials, on an advisory board. They used my name as headliners for fundraisers and I had no idea what they were doing.

The facts suggest otherwise:

DELAY SAID TRMPAC WAS HIS IDEA: “U.S. House Majority Leader Tom DeLay, R-Sugar Land, said Wednesday that it was his idea to create Texans for a Republican Majority.” [Austin American Statesman, 3/10/05]

DELAY ADMITTED HE WAS A “CREATOR, ADVISOR AND FUNDRAISER” FOR TRMPAC: “House Majority Leader Tom DeLay said Wednesday he served as a creator, adviser and fund-raiser to a Texas-based political action committee now under state criminal investigation.” [Houston Chronicle, 3/10/04]

TRMPAC LITERATURE NAMES DELAY AS ORGANZATION “LEADER”: “Q: Who is Leading Texas for a Republican Majority? A: The leadership of the PAC includes Rep. Tom DeLay…” [TRMPAC, Q&A For Potential Media Inquires]

EVIDENCE SUGGESTS DELAY WAS INVOLVED IN COLLECTING CORPORATE CONTRIBUTIONS: “Documents, which were entered into evidence last week in a related civil trial in Austin, the state capital, suggest that Mr. DeLay personally forwarded at least one large corporate check to the committee, Texans for a Republican Majority, and that he was in direct contact with lobbyists for some of the nation’s largest companies on the committee’s behalf.” [New York Times, 3/9/05]

DELAY PARTICIPATED IN TRMPAC FINANCE COMMITTEE CONFERENCE CALLS [TRMPAC, 10/5/02]

5:19 AM  
Blogger Management said...

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Abramoff-Scanlon School of Sleaze
Wednesday's Senate hearings yielded more scandalous revelations about how the dynamic lobbying duo bilked American Indian tribes out of millions and used the money to win elections for their Republican clients.

By Michael Scherer

Nov. 03, 2005 | Up-and-coming Republican hacks would do well to watch closely the ongoing Senate investigations of superstar lobbyist Jack Abramoff and his former business partner Michael Scanlon. The power duo stand accused of exploiting Native American tribes to the tune of roughly $66 million, laundering that money into bank accounts they controlled and then using it to buy favors for powerful members of Congress and the executive branch.

But they sure did know how to play the game.

Consider one memo highlighted in a Capitol Hill hearing Wednesday that Scanlon, a former aide to Rep. Tom DeLay, R-Texas, sent the Coushatta Tribe of Louisiana to describe his strategy for protecting the tribe's gambling business. In plain terms, Scanlon confessed the source code of recent Republican electoral victories: target religious conservatives, distract everyone else, and then railroad through complex initiatives.

"The wackos get their information through the Christian right, Christian radio, mail, the internet and telephone trees," Scanlon wrote in the memo, which was read into the public record at a hearing of the Senate Indian Affairs Committee. "Simply put, we want to bring out the wackos to vote against something and make sure the rest of the public lets the whole thing slip past them." The brilliance of this strategy was twofold: Not only would most voters not know about an initiative to protect Coushatta gambling revenues, but religious "wackos" could be tricked into supporting gambling at the Coushatta casino even as they thought they were opposing it.

Another lesson from the Abramoff-Scanlon school: Pad your public numbers. In October 2001, the lobbying team decided to inflate the amount they were billing Indian tribes so Abramoff could make it into a "top ten" ranking of Native American lobbyists. They planned to tell the Coushatta tribe that $1 million was needed for a "public affairs" strategy. Then, by apparently falsifying an invoice from Abramoff's law firm, Greenberg Traurig, they would reroute the money to a charity Abramoff had founded, which was paying to build a school for his children and give "sniper training" courses in Israel.

It worked like a dream, mainly because nobody knew what was happening -- not the tribe, not the law firm, and certainly not the readers of the "top ten" ranking. Oversight was so lacking that it did not even matter that someone misspelled the name of Greenberg Traurig on the fraudulent invoice. "I doubt we would be issuing an invoice with our name misspelled," said Fred Baggett, the head of Greenberg Traurig's governmental affairs shop, who once worked closely with Abramoff. Asked to describe his former colleague, Baggett offered this faint praise: "He is an amazingly gifted person at having two sides to him."

Others were less kind. Kevin Sickey, the chairman of the Coushatta Tribe, described Abramoff as greedy and corrupt. "He is the golden boy gone bad of the American political system," Sickey said. William Worfel, a former Coushatta Tribal Council member, was even more blunt about the lobbying team. "In my mind, they are educated thieves who must be brought to justice," he said.

Wednesday's hearings provided just the latest in a long line of scandalous revelations about Abramoff's lobbying operation, which is now under investigation by two Senate committees and the Justice Department. Sen. John McCain, R-Ariz., who chaired the meeting, said his committee was preparing "many" legal reforms that could prevent a repeat of the Abramoff debacle. "We'll be coming out with that in about a week," he said. The Indian Affairs committee is scheduled to hold one more hearing on Abramoff before issuing a report; it still needs to gather testimony from Italia Federici, a close associate of Interior Secretary Gale Norton. Federici is accused of setting up a meeting for Abramoff with Interior Department officials after her nonprofit company, Council of Republicans for Environmental Advocacy, received six-figure donations from Abramoff's clients. Environmentalists charge that Federici's company -- which was founded by Norton -- is a front for big industry polluters. Federici was scheduled to testify Wednesday, but has so far ducked a Senate subpoena. "I believe U.S. marshals will do their duty," McCain said. "She has been unable to be located."

Abramoff, meanwhile, is already facing the prospect of significant jail time. He has been charged with fraud in connection with an unrelated casino deal in Florida, which ended in a gangland-style killing of the man Abramoff is alleged to have defrauded. (Several people have been charged with that killing, including two employees of a company controlled by Abramoff's business partner, Adam Kidan.) At the same time, the former top procurement official in the White House, David Safavian, has been arrested on charges of lying about a trip he took to Scotland with Abramoff. Another former White House official, Timothy Flanigan, recently withdrew his nomination to become deputy attorney general, after it became clear that he would have to testify under oath to the Senate about his relationship with Abramoff.

On Wednesday, a third former Bush administration official, J. Steven Griles, was asked to account for his relationship with Abramoff, which is detailed in dozens of e-mails obtained by the Senate. Griles claimed that he had never done Abramoff's bidding, despite Abramoff's own boasts that Griles was working on his behalf, and might even consider a job at Greenberg Traurig after he left government. "I can't reconcile what Mr. Abramoff put in e-mails to anyone," said Griles, a former coal industry lobbyist who recently served as deputy secretary of the interior.

Griles' denials were disputed by Michael Rossetti, a former counsel to Interior Secretary Gale Norton, who said Griles had shown a "very keen interest" on one matter where Abramoff had an interest. "Mr. Rossetti has a different memory on that issue than I do," said Griles, who appeared distraught, at times, during his testimony. "I don't want to dispute a former friend of mine and a former colleague." After the hearing, Sen. John McCain, R-Ariz., said the conflicting testimony created confusion about the facts. "Mr. Rossetti is very credible," McCain said. A reporter asked if Griles was also credible. "He is certainly sincere," said the senator.

There was much less doubt, however, about the skills of Abramoff and Scanlon. They collected huge amounts of money from their unwitting clients. In September of 2001, Abramoff wrote to Scanlon asking how much money he was set to collect from two of their Native American clients. "I need to assess where I am at for the school's sake," he wrote, in an apparent reference to his children's Jewish day school, the Eshkol Academy, which Abramoff was secretly bankrolling with the Indian money. Scanlon wrote back, "Your project on the project as proposed is at least 800k." All in all, Abramoff was set to earn "a total of 2.1" million dollars, Scanlon wrote.

Abramoff responded to his business partner, "How can I say this strongly enough: YOU IZ DA MAN."

If political infamy is the measure of a man, nobody in Washington doubts that now.

5:21 AM  

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