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This Week in Corruption

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This week in corruption: Tom DeLay can't get a fair trial in Austin, Jack Abramoff goes to Africa, and one of Ernie Fletcher's pardonees comes back to haunt him...

After successfully having a Democratic judge removed from overseeing Tom DeLay's case, DeLay's defense team is now lobbying to have his trial removed from "liberal" Travis County.  As irony would have it, Travis County was split into three congressional districts in 2002 with much help from DeLay, who now faces charges related to that year's elections.  The former majority leader's attorneys continued to go on the offensive against District Attorney Ronnie Earle, when on Thursday they requested documents from the prosecutor in the hope of proving Earle attempted to "browbeat and coerce" a second grand jury into indicting DeLay on criminal charges.  


As some readers may remember, there was quite a bit of speculation over what person (or persons) might have given Earle the information needed to indict DeLay.  Well, according to the Washington Post, that person may very well have been DeLay himself.  Citing "four sources familiar to the events," the Post claims DeLay considered pleading guilty to misdemeanor charges in late September so that DeLay could maintain his leadership position in the House.  Apparently at an August 17th meeting with Earle, "DeLay acknowledged that in 2002 he was informed about and expressed his support for transfers of $190,000 in mostly corporate funds from his Texas political action committee to an arm of the Republican National Committee in Washington and then back to Texas..."  While DeLay may not have been able to reach a bargain with prosecutors to avoid a trial, he shouldn't have much trouble raising money for his defense fund: last Thursday, prominent GOP lobbyists hosted a fundraiser for DeLay, which was "expected to be the largest fundraiser for a single member of Congress this year.  Host committee members are expected to give the maximum $2,100 personal contribution or to raise $5,000 for DeLay's re-election."  


Jack Abramoff's business ventures have sometimes gone outside America's borders--taking him to Israel, Russia, and the UK--and this week Abramoff added another nation to his CV: Gabon.  According to recently released emails, Abramoff offered his services to the President of Gabon, and drew up a contract for $9 million to secure a visit for the President with George Bush.  The $9 million was to be paid by three $3 million wire transfers sent to Grassroots Interactive, the small Maryland lobbying firm that Abramoff controlled and is being investigated for the role it played in helping Abramoff to skirt lobbying and tax regulations.  


Finally, Kentucky Governor Ernie Fletcher, who is at the center of an investigation into improper hiring procedures, is offering a new argument against these charges: the Democrat before him did it too, and much worse so. During hearings on whether to extend the Grand Jury investigating Fletcher, the presiding judge indicated that the pardons given by the governor in late August (before any indictments were officially handed out) will "probably" stand in the face of opposing indictments.  One of those originally pardoned by Fletcher, former aide Basil Turbyfill, thinks the governor should resign.  In an email to another former aide, he wrote "The GOP will be set back decades and all of us who have worked so hard for 20 years have worked for naught...  if we could get out of this by the Gov. resigning he should do it."  The governor's spokesman called the suggestion "ridiculous," and tantamount to "taking a sledge hammer to get rid of a gnat."


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Any word on whether Earle successfully flipped the already-indicted co-conspirators on this case?  This has been relatively quiet recently, and even the 5-page Salon article makes the case look like no sure thing.

How can you talk about corruption and leave out Siegelman's racketeerer indictment???

http://www.washingtonpost.com/wp-dyn/content/article/2005/10/26/A
R2005102602235.html

I am posting information about Tom DeLay's "charitable" activities on the TPM Cafe website in another Auction House post.

DeLay has been involved in three charities that I know of: DeLay Foundation For Kids, Celebration For Kids and the Oaks At Rio Bend.

I already posted information from the Oaks At Rio Bend IRS Form 990s for 2003, 2002 and 2001. I am about to post information from Celebrations For Children's 2004 990.

Celebrations For Children was set up in anticipation of the 2004 Republican Convention. "Fundraising" events were to be held at various sites in New York. Negative publicity and a complaint lodged with the House Ethics Committee seemingly put a stop to DeLay's plans.

However, Celebrations For Children had $96,820 in cash as of June 30, 2004. The return on Form 990 is not marked "Final return". So, is Celebrations For Kids still in business? 

My time has been limited in the last couple of days but I have questions about the DeLay Foundation For Kids and the Oaks At Rio Bend that I intend to raise shortly.  

Re Jack Abramoff and Grassroots Interactive

Sam Hook was a former partner of Jack Abramoff's at Greenberg Taurig. In September 2003, Hook took over Grassroots Interactive, a small lobbying firm, from Edward B. Miller for a small amount of cash.

Edward B. Miller is now the deputy chief of staff to the governor of Maryland, Robert L. Ehrlich.

In January 2003, Sam Hook registered a company named Federal Program Services Corporation in Maryland. The stated purpose of the company is to assist tribes and local governments participating in federal programs.

In July 2003, Sam Hook registered Federal Program Services LLC. Tova Jaffe was listed as the president. The company's registration was cancelled in August 2003.

According to the Hill, Sam Hook and his wife, Shana Tesler, moved to Israel in July 2005.

I haven't read anything about Federal Program Services Corporation, Federal Program Services LLC or Tova Jaffe but I think it is safe to assume there is cause for investigation.  





But how can you talk about corruption and leave out the Illinois governor's pension fund scandal?

http://www.stateline.org/live/ViewPage.action?siteNodeId=136&
languageId=1&contentId=56540

Also, I remember first reading about Grassroots Interactive when Tyco's Timothy Flanigan's nomination was being debated in the Senate.  Abramoff had some sort of contract with Tyco, which he ran out of Grassroots in Maryland, and Flanigan ended up more or less accusing Abramoff of running up the bill on them.  

Good question.  The only thing on the matter I saw was this, about Perkins not presiding over Ellis and Colyandro's case:


State District Judge Bob Perkins voluntarily stepped aside Wednesday from the cases of two of U.S. Rep. Tom DeLay's co-defendants, a week after another judge removed him from the trial of the former House majority leader.

Since when is corruption is Illinois or Chicago news?  But seriously, we tolerate some amount of petty corruption in most places. It's only when it involves major figures like the Majority leader, the White House, or other high officials whose corruption has such widepspread effects that we have to say "enough". And even more so when these same corrupt officials run for office based on their "integrity" and cleaning up the corruption of the other party that we have to barf. There's not enough jail space to contain all the corrupt officials if we actually had zero tolerance. We try to just pick off the biggest and hope that inhibits some of the others.
Oops!  - In my post about Sam Hook, I wrote that the Maryland registration for Federal Program Services LLC was cancelled in August 2003. It was cancelled in August 2004.

Polk011, In the NYT article that Ryan linked to above, Philip Shenon reported that Flanigan, as general counsel for Tyco, directed Tyco to pay $2 million to Grassroots Interactive as per Jack Abramoff's "suggestion".

Grassroots Interactive wrote a check for $400,000 to Kay Gold LLC, one of the Abramoff-controlled entities.

LOL - Flanigan was "shocked" to learn that Abramoff directed the money to Abramoff-controlled entities. 

Amy Ridneour of the conservative think tank, National Center For Public Policy Research told the Senate that she was "shocked" to learn that the Center laundered money for Jack Abramoff.

Ms. Ridenour must be as dumb as a bag of hammers not to have questioned why the Center gave a total of $700,00 to Jack Abramoff's "charitable" foundation, Capital Athletic Foundation. The Center donated $450,000 in fiscal 2002 and $250,000 in fiscal 2003. 

Jack Abramoff remained on the National Center For Public Policy Research until October 2004. I think for that reason alone, soemone should be investigating the Center's finances.

I posted the names of all of  the donors to Capital Athletic Foundation  in another Auction House post along with other information from Capital's IRS return on Form 990-PF. 

In the same NYT story, Shenon reported that Grassroots Interactive paid $2.3 million to an unnamed consulting firm in California with the same address as Abramoff's brother, Robert who is a lawyer. 

I tried to figure out the name of the company by checking names of companies registered by Robert Abramoff but no luck so far.

I can't wait to hear how Jack Abramoff funneled money to politicians!

Hmm...I just found the website of Sam Hook's company, Federal Program Services Corporation.  The site names Sam Hook as Executive Director and Mourene Tesler as Western Area Director.

Mourene Tesler is probably a relative of Hook's wife, Shana Tesler.

The website is kind of cheesy and interestingly, it provides a link to the website of Richard Male & Associates. The company provides the same services as Federal Program Services and Mourene Tesler is an associate director.
 
I wonder which tribes got socked by Sam Hook and I wonder why he was in such a rush to move to Israel.

After re-reading Amy Ridenour's Senate testimony (see link above),  I checked the National Center for Public Policy Research's 2003 and 2002 990s.

I don't think Amy Ridenour is dumb as a bag of hammers. I think she is a liar. She told the Senate that she thought KayGold LLC was owned by Michael Scanlon. But in the Center's 2003 990, Ridenour listed Kaygold LLC's address as 800 Connecticut Ave. NW, #500, Wash., DC 20006.

That is the address of Greenberg Traurig where Jack Abramoff was working at the time.

Of course, Amy Ridenour could have checked Lexis-Nexis and found out that Kaygold LLC's registered address was 812 Edelbut Dr., Silver Spring, MD, Abramoff's home address.  Jack Abramoff is the only officer listed.

Jack Abramoff was on the board of directors of the National Center for Public Policy Research from 1997 until October 2004.    

Little Miss Sleazebag Ridenour knew exactly what she was doing when she laundered money for Jack Abramoff. In 2002, Capital Athletic Foundation was the recipient of the Center's only grant that year.  The amount of the grant was $450,000. In 2003, Capital Athletic Foundation again was the recipient of the Center's only grant that year. The amount of the grant was $250,000.

I'd like to see the Center's supporting documentation for the Capital Athletic Foundation's "grants". I don't know what kind of information a grantmaker has to obtain from a grantee but I can't imagine how she justified grants of $700,000 to the Capital Athletic Foundation. The mission of the foundation was to "foster character development by promoting the American ideals of sportsmanship in all endeavors".

I don't see why the National Center for Public Policy Research should retain its tax-exempt status after Ridenour's conduct which can, at best, be described as borderline criminal.

Somebody seriously should be investigating Ridenour and the National Center for Public Policy Research for suspicion of money laundering.

I'd start with the $1,307,385 in consulting fees for 2003 and the $583,031 in consulting fees for 2002. Then I'd look at the $4,114,576 in direct mailing expense for 2003 and the $4,651,128 in direct mailing expense for 2002.

Then I'd get the names of any other entities that the Ridenours are associated with.

Amy Ridenour did not launder $2,500,000 for Jack Abramoff for free.


You didn't say anything about Reid getting $66,000 in donations from Abramoff

http://news.yahoo.com/s/ap/20051117/ap_on_go_co/tribes_letters___
dollars


Poor John Breaux and Mary Landrieu only got $11K and $24K.  They are going to have to work harder to keep up with the Culture of Corruption

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