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Give Tom Delay More Air Time, Please!


I get a big kick out of seeing Tom DeLay represent conservatives on television! Based on my own informal research conducted more than a year ago, most people think Tom DeLay is the face of GOP corruption.  

I asked four perfect strangers in the public library and a clerk at the One Stop in Huntington NY if they knew who Tom DeLay was and they all said yes. Then I told them that I was investigating Tom DeLay and they all thought that was a swell idea.

IMO, Howard Dean should conduct some independent research to confirm that  everyone thinks Tom DeLay is a crook who got away with highway robbery.  The Dems should then try to have DeLay represent the right wing in the media as often as possible for the next eighteen months. I'm sure Tom DeLay would be happy to oblige.

Today, my investigation of Tom DeLay will focus on TomDeLay.com which obviously was set up in part to help the Bug Man promote his new book, "No Retreat, No Surrender", which I fully intend to read after I post my review of James A. Baker's bio, "Work Hard, Study...and Keep Out of Politics!."  (Baker's book forced me to conclude that Baker is still hooked on Halcion and why Baker's publisher didn't take a red pencil to his condescending crap about his pickaninny relatives is beyond me.)

I already have written extensively here in the TPM Cafe about Tom DeLay's three "charities": the DeLay Foundation For Kids, the Oaks at Rio Bend and Celebrations For Children. I reviewed and analyzed the 990s filed by the DeLay "charities" and I raised a lot of questions, most of which are still unanswered.

For one, I think Ronnie Earle might want to look into DeLay's financial relationship with the very wealthy George Foundation. The George Foundation has assets worth more than $200 million and owns something like 20,000 acres of property in Fort Bend County, TX. In the same year the George Foundation committed to donating property to the DeLay Foundation, it made a mysterious sale of valuable real estate at cost. Someone got a very good deal, indeed.  

Neither Tom DeLay or his daughter, Danni Ferro, is under any legal obligation, as far as I know, to disclose how the $353,900 contributed to Celebrations For Children betweeen 9/1/03 and 8/31/05 was spent other than what is disclosed in the Celebrations For Children 2004 and 2005 990s, available at the Foundation Center's 990 Finder.  

Nor are DeLay and Ferro obligated to explain why not one single dime of the $354k contributed to Celebrations For Children went to help children. But Tom and Christine Delay have made quite a splash in the media about their concern for children and the Delays have received lots of favorable publicity for their Rio Bend project. In fact, I think it was George Will who wrote about the Rio Bend project not that long ago.  

Why isn't Tom DeLay tripping over himself to explain what happened to the $354K contributed to Celebrations For Children? Maybe DeLay isn't on the Celebrations For Children board of directors but Celebrations For Children was his daughter's baby. Danni DeLay Ferro obviously had her father's permission to use his name and position to raise that $354k for Celebrations For Children.

While he is at it, maybe the former Republican Majority Whip can explain why Celebrations For Children was created and why Celebrations For Children suddenly became inactive  after a spate of news stories about the "charity".

Me, I am the suspicious type and if I could, I'd advise Ronnie Earle to investigate how Celebrations For Children incurred more than $40k in legal and accounting fees between 9/1/04 and 8/31/05 when it was inactive. Then again, I'd advise Ronnie Earle if I could to look into why the Oaks at Rio Bend changed its EIN# in the same year the George Foundation contributed $400k of land to the Oaks at Rio Bend.

I haven't spent any time analyzing the latest 990s filed by the Delay Foundation For Kids and the Oaks at Rio Bend but I took a glance at them and I already have questions. I'm pretty curious as to where the $5.8 million contributed to the Oaks at Rio Bend came from for starters. It certainly didn't all come from the DeLay Foundation For Kids.

More to come.


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From WHOIS at Network Solutions:

Domain Name: TOMDELAY.COM

Registrant:
First Principles 
1606 Brookstone Lane
Sugarland, TX 77479
US

Administrative Contact , Technical Contact :
First Principles
dani@tomdelay.com 
1606 Brookstone Lane
Sugarland, TX 77479 
US
Phone: 713-446-3695 
Fax: 999 999 9999

Record expires on 10-Jan-2010
Record created on 10-Jan-2000
Database last updated on 10-Jan-2007

Domain servers in listed order:

NS1.UpstreamCommunications.Com
NS2.UpstreamCommunications.Com
 

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As noted above, TomDeLay.com was registered by First Principles at 1606 Brookstone Lane in Sugarland, TX.

Here are the only businesses I found registered at 1606 Brookstone Lane in Sugarland:

#1
TEXAS SECRETARY OF STATE

Company Name: COASTAL CONSULTING, INC.

Business Address:
1606 BROOKSTONE LANE
SUGAR LAND, TX 77479

Type: DOMESTIC FOR-PROFIT CORPORATION

Standing: IN GOOD STANDING, NOT FOR DISSOLUTION OR WITHDRAWAL

Filing Date: 12/1/1999

Registered Agent: DANIELLE K FERRO

Registered Office:
5907 BAYBERRY WAY
SUGAR LAND, TX 77479

State Taxpayer Number: 17606247900

Officers, Directors:
DANILELLE FERRO
DIRECTOR, PRESIDENT
1606 BROOKSTONE LANE
SUGAR LAND, TX 77479

STEPHEN FERRO
DIRECTOR, SECRETARY
1606 BROOKSTONE LANE
SUGAR LAND, TX 77479

#2
TEXAS SECRETARY OF STATE

Company Name: FERRO CONSULTING, LLC

Business Address:
1606 BROOKSTONE LANE
SUGAR LAND, TX 77479

Type: DOMESTIC LIMITED LIABILITY COMPANY (LLC)

Status: FORFEITED EXISTENCE

Filing Date: 3/25/2004

Inactive Date: 2/17/2006

Registered Agent: DANIELLE K. FERRO

Registered Office:
1606 BROOKSTONE LANE
SUGAR LAND, TX 77479

Members, Managers, Partners:
DANIELLE K. FERRO
MEMBER
1606 BROOKSTONE LANE
SUGAR LAND, TX 77479

STEVEN J. FERRO
MEMBER
1606 BROOKSTONE LANE
SUGAR LAND, TX 77479

State Taxpayer Number: 32014721412

History:
File Date: 2/17/2006
Transaction: TAX FORFEITURE
Microfilm Number: 118089060332
 
File Date: 3/25/2004
Transaction: ARTICLES OF ORGANIZATION
Microfilm Number: 056815520002

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The same people who bought Karl Rove's consulting and B&B businesses are handling TomDeLay.com. The two main players are Todd T. Olsen and Kevin Shuvalov.

I wrote about Karl Rove's businesses  here and here in the TPM Cafe. Another member of the TPM Cafe posted about Rove's businesses in the Daily Kos .

Use Robtex's Swiss Army Knife Internet Tool to search for "TomDelay.com" and you will see that TomDelay.com domain shares mailservers with PraxisList.com, Olsen-Shuvalov.com and UpstreamCommunicatons.com and .org.

The PraxisList.com website provides no information about Praxis List other than Lynette is the Praxis List email contact. A casual visitor would have no idea that Praxis List is a Texas-based firm that does a lot of business with the GOP nor would the casual visitor have any idea that Praxis List is linked to Karl Rove.

The admin contact for PraxisList.com domain is:

Prendergast, Katie katiep@ONR.COM
Praxis List Company
1609 Shoal Creek Blvd. Sute 203
Austin, TX 78701
US
(512) 479-6602 fax: (512) 479-8031

ONR.COM is OnRamp Access. OnRamp Access is a private, full-service network provider in Central Texas which has been around since 1994.

TomDeLay.com, as noted above, is hosted on the Upstream Communications servers. Todd Olsen and Kevin Shuvalov are Upstream Communicatons principals.  

Take a look at the sample websites developed by Upstream Communications for an idea of where Upstream Communications' business is coming from. I did a humourous post about George W. Bush Childhood Home, Inc. last  fall after I visited the UC website.

LOL - I'd really like to test Upstream Communications claims about the level of internet security it provides to its customers but I wouldn't have a clue as to how to go about it.  

More to come.

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It's becoming evident to me that they're in it for the dollars -- not for the Republican cause! (Of course those are one and the same!)

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I wrote about Celebrations For Children because the issue is easy to understand and the facts can be verified with a five-minute visit to the Foundation Center's 990 Finder.

Once you know for sure how low Tom Delay will stoop, you have to ask yourself if Tom Delay has any moral or ethical boundaries. Cheating a children's charity? Come on.

As you already know, the business about James A. Baker III trying to cheat the Iraqis for his own financial benefit in the middle of this Iraq War is one of the issues that I am the most angry about.

Again, does James A. Baker III think that Iraqis can't read?

Baker knew the issue was a big deal because he wrote about it in his bio. What he wrote, however, made no sense.

I am going to get the Baker bio out of the library in the next day or two and prove that former Secretary of State James A. Baker III is a world-class liar.

Baker's bio has so many holes in it, you have to wonder who fact-checked it.

As an aside, have you heard anything about Baker III or Baker IV having plans to run for office?

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Glissade: Why the 4? Because I left the fact that Madeline "It was worth killing 500K Iraqis" Albright and her investment company was involved in the nefariouos scheme to cheat the Iraqis?

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After reading all of the foregoing, here is the sum total of what former Secretary of State James A. Baker III had to say about the matter in his biography, "Work Hard, Study...and Keep Out of Politics!":

"Carlyle promised it would never do anything to embarrass me, and it never did, except once. When I was serving as President George W. Bush's special envoy on debt relief for Iraq, a Carlyle representative - unbeknownst to me - was apparently talking to the Kuwaitis about engaging a consortium of Carlyle and other firms to help collect and manage the reparations owed to Kuwait by Iraq. That was improper. When I first heard about it, I called David Rubenstein, and the proposal was dropped almost before the sun went down."

Yeah, right. A single Carlyle representative took it upon himself to offer "such a deal" to the Kuwaitis in the middle of the Iraq War at the same time the senior advisor to the Carlyle Group, James A. Baker III, was engaging in sensitive and secret negotiations with the Kuwaitis.

Did the Carlyle Group rep get fired? What's his name? Will the Carlyle Group rep be called to testify before Rep. Waxman's Oversight Committee and will he swear under oath that Baker knew nothing of the scheme to cheat the Iraqis before it was reported in the press?

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Darn it. This post was supposed to be placed after my next two comments. Hence, the "After reading all of the foregoing..."

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Glissade: Maybe the nation story is too long a read or maybe you consider the Nation to be too liberal to be a universal source of reliable information (but you would be wrong).

FYI - The Baker story was covered in the London Times, the Washington Post and other papers. I first read about it in the UK Guardian which admittedly has a liberal bent but the Guardian's story is an easy read.

Guardian Unlimited
By David Leigh
10/15/04

"Carlyle pulls out of Iraq debt recovery consortium"

The Carlyle Group, a large investment firm linked to US and British politicians, has pulled out of a scheme to recover billions of dollars from Iraq, following the publication in the Guardian this week of documents detailing the secret proposals of a consortium with which it was involved.

Carlyle published a withdrawal letter yesterday sent to other members of its consortium.

The consortium offered a confidential deal to use its political influence to collect a $27bn (£15bn) debt owed by Iraq to Kuwait, despite US pleas for debt forgiveness from other countries.

Carlyle's letter, signed by its general counsel Jeffrey R Ferguson and dated October 13, says: "Carlyle does not want to participate in the consortium's work in any way, shape or form and will not invest any money raised by the consortium's efforts."

The letter also claims that at the time Mr Baker was appointed the president's debt envoy that "Mr Baker understood that Carlyle would have no involvement with the consortium".

Carlyle admits it was involved in the original scheme by a consortium of financiers and lobbyists, who lobbied Kuwait at a London meeting on July 16 2003.

Documents from the consortium describe Carlyle's chairman, former US defence secretary Frank Carlucci, as the man who "played a convening and guiding role on behalf of Carlyle".

They also specifically mention Mr Baker's name as one of the "leading individuals associated with Carlyle" who they claim will be free to play a "decisive role" once Mr Baker's retires from his "temporary position" as debt forgiveness envoy.

The scheme had two parts. The first was to turn over Kuwait's $27bn war reparations debt to a foundation set up by the consortium, which would then use its political influence to ensure Iraq was made to pay up.

The second part of the plan was to benefit Carlyle specifically, by handing over to them $1bn from Kuwait to manage in their investment funds.

The documents suggest that Carlyle scaled back its stated involvement in the scheme while Mr Baker was in his official post, but Kuwait was informed by the consortium that this was only temporary.

The cover letter to Kuwait with the detailed proposal confirming Carlyle's continuation as a participant was signed by another former secretary of state turned lobbyist, Madeleine Albright, by a Washington law firm, Coudert Bros, and by the consortium's leader, Shahameen Sheikh of the "International Strategy Group".

In its second change of position in as many days, Carlyle claimed yesterday in its letter that "Carlyle was never a member of the consortium". The previous day, its spokesman claimed Carlyle "withdrew" from the consortium after Mr Baker became debt envoy last December.

The day before that, its spokesman Chris Ullman told the Guardian, Carlyle had merely "restricted" its consortium role while Mr Baker was in office, but was still looking to receive a $1bn investment as part of the deal.

Jamie Smith, spokeswoman for the Albright Group LLC, said the consortium had, as of yesterday, stopped pursuing business with Kuwait. "The proposal is clearly dead," she said.  

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I was right. Baker's scheme to cheat the Iraqis in the middle of the Iraq War did get their attention. You can be sure you and I could never pull this kind of crap and get away with it.

ARABIA 2000

Copyright 2004 by Iran News Agency. Distributed By UPI.

DATELINE: Tehran, October 15

"Iraqi economists condemn Baker's "double-dealing" on Saddam's [sic]"

Jubilee Iraq, a campaign group against payment of Saddam Hussein's debts, have condemned the "double-dealing" by former US secretary of state James Baker following revelations of his "serious conflict of interests."

Jubilee Iraq's coordinator, Justin Alexander, said the US Carlyle Group, in which Baker was a partner, was "acting against the interests of the Iraqi people and justice by seeking to enforce reparation payments to Kuwait."

"To profit from the Iraqi people's suffering is bad enough; for this to be done by a company in which a leading partner and shareholder is supposedly tasked with the job of canceling that debt adds a grave conflict of interest to this crime," he told IRNA.

The Guardian newspaper Friday reported that the Carlyle Group had withdrawn from a consortium after it was revealed that it was secretly proposing to use its political influence to collect dlr 27 billion of debt on behalf of Kuwait.

Alexander said that Jubilee Iraq, a network of economists and aid agencies, had been critical of Baker's involvement since his appointment as US President George W.

Bush's envoy, who was supposed to be appealing for debt forgiveness from other countries.

"The original loans financed the horrific Iran-Iraq war and the al-Anfal genocide of the Kurds," he said.

He also referred to Baker's promise to Iraq of additional US loans when he visited the country in 1989 despite Saddam's chemical weapons atrocities.

Carlyle admitted its involvement in the consortium of financiers and lobbyists, but claimed that "Baker understood that Carlyle would have no involvement" after Baker was appointed Bush's debt envoy last December.

Alexander said that many Iraqis go further than wanting Saddam's debts written off and "demand that the countries that financed Saddam pay them reparations."

"If justice and not power prevailed in international affairs then Saddam's creditors would be paying reparations to Kuwait as well as far greater reparations to the Iraqi people," he said.

It is estimated that excluding the billions owed to Iran in war reparations, Iraq's debts total between dlr 85 and 137 billion.

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Dollars for Dough-Nuts!

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This is too much! I read Tom DeLay's post about Rosie O'Donnell and fifteen minutes later, the beau runs in to tell me that Delay made the television news because he wants to get Rosie fired from  "The View."

Quick! Somebody, please, send a link to my comment about Celebrations For Children to Rosie!

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I visted Rosie's website and submitted a comment to the effect that she should ask Delay about his daughter's so-called charity, Celebrations For Children and I pasted a link to this thread.

Stick that in your pipe and smoke it, Tom Delay!

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Even better. I submitted an email at TomDeLay.com and asked if my facts in this thread are correct and I pasted a link.

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I think some people forget how close Tom DeLay was to Jack Abramoff.

New York Times

By Philip Shenon

11/4/05

"DeLay Asked Lobbyist to Raise Money Through Charity"

WASHINGTON, Nov. 3 - Representative Tom DeLay asked the lobbyist Jack Abramoff to raise money for him through a private charity controlled by Mr. Abramoff, an unusual request that led the lobbyist to try to gather at least $150,000 from his Indian tribe clients and their gambling operations, according to newly disclosed e-mail from the lobbyist's files.

The electronic messages from 2002, which refer to "Tom" and "Tom's requests," appear to be the clearest evidence to date of an effort by Mr. DeLay, a Texas Republican, to pressure Mr. Abramoff and his lobbying partners to raise money for him. The e-mail messages do not specify why Mr. DeLay wanted the money, how it was to be used or why he would want money raised through the auspices of a private charity.

"Did you get the message from the guys that Tom wants us to raise some bucks from Capital Athletic Foundation?" Mr. Abramoff asked a colleague in a message on June 6, 2002, referring to the charity. "I have six clients in for $25K. I recommend we hit everyone who cares about Tom's requests. I have another few to hit still."

The e-mail was addressed to Tony Rudy, who had been Mr. DeLay's chief of staff in the House before joining Mr. Abramoff's lobbying firm. Mr. Abramoff said it would be good "if we can do $200K" for Mr. DeLay.

The e-mail traffic was released this week by the Senate Indian Affairs Committee, which has conducted a yearlong investigation into whether Mr. Abramoff and a business partner, Michael Scanlon, Mr. DeLay's former House press secretary, defrauded Indian tribe clients and their gambling operations out of tens of millions of dollars. There was no immediate comment on the e-mail from spokesmen for Mr. Abramoff or Mr. DeLay, who has stepped down as House majority leader because of an unrelated criminal indictment in his home state.

The Justice Department signaled last month that it was investigating the propriety of Mr. DeLay's ties to Mr. Abramoff, including trips that the lobbyist organized for Mr. DeLay and his wife. Mr. Abramoff is under indictment in a separate federal fraud investigation in Florida.

The case against Mr. DeLay in Texas, which centers on charges that he violated the state's century-old ban on use of corporate money in its political races, has been thrown into confusion this week because of accusations - first by Mr. DeLay's defense lawyers, then by prosecutors - that judges assigned to the case cannot be impartial because of their political ties, a concern in Texas because judges there are elected.

On Tuesday, Mr. DeLay's lawyers managed to have the trial judge, Bob Perkins, a Democrat, removed because he had made contributions to the Democratic Party and its candidates. On Thursday, the Republican administrative judge who was supposed to pick Judge Perkins's replacement, B. B. Schraub, removed himself from the case because of contributions he had made to Republican candidates.

Judge Schraub immediately forwarded the case to the state's chief justice, Wallace B. Jefferson, another Republican. But Justice Jefferson's involvement was also challenged by the prosecutors. They suggested in a separate court filing that the chief justice could not be impartial because of his use of a political consultant and campaign treasurer who had also worked for Texans for a Republican Majority, Mr. DeLay's state political action committee, and because he had received thousands of dollars in donations from the Republican Party.

Late Thursday, Justice Jefferson announced that he had named a new trial judge, Pat Priest, a retired Democratic judge from San Antonio. It was not immediately clear if Judge Priest would be acceptable to lawyers on both sides.

The focus on Mr. DeLay back in Washington has been over his ties to Mr. Abramoff, once one of the city's most powerful lobbyists and Republican fund-raisers, and Mr. Scanlon, who was among Mr. DeLay's closest aides on his House staff.

The hearings by the Senate Indian Affairs Committee have shown that through a network of outside companies and charities, Mr. Abramoff and Mr. Scanlon funneled tens of millions of dollars in lobbying fees from Indian tribes into activities that often had little connection to the interests of the tribes and their lucrative gambling operations.

Mr. Abramoff's private charity, the Capital Athletic Foundation, has come under scrutiny by Senate investigators since the foundation was used to underwrite overseas travel by members of Congress and senior government officials, as well as a Jewish day school that Mr. Abramoff had established and paramilitary training for kibbutz residents in Israel. Mr. Abramoff's e-mail messages describe the training program as a "sniper school."

In a chain of often cryptic e-mail messages that began on June 6, 2002, Mr. Abramoff communicated with members of his lobbying firm and his clients about Mr. DeLay's request that large amounts of money be raised through the foundation.

"Hi Tony," Mr. Abramoff wrote to Mr. Rudy, asking that he help in the fund-raising effort and describing the Capital Athletic Foundation as "a tax deductible foundation" that does "NO lobbying at all."

Later that day, Mr. Abramoff wrote to Mr. Rudy again, asking him to pass on the request for a donation to one of the firm's major Indian tribe clients, the Saginaw Chippewas of Michigan. He wrote that the request would "look better coming from you as a former DeLay COS - we're gonna make a bundle here."

On June 20, Mr. Rudy wrote to Todd Boulanger, a different colleague at the lobbying firm Greenberg Traurig, asking about the status of a $25,000 contribution to the Capital Athletic Foundation.

"Jack wants this," Mr. Rudy wrote, referring to Mr. Abramoff. "It is something our friends are raising money for." The e-mail did not identify the friends.

Mr. Boulanger replied the same day: "I'm sensing shadiness. I'll stop asking. I'll break it up over the various request to a total of $25K."

Mr. Rudy replied: "Your senses are good. If you have to say Leadership is asking, please do. I already have." Mr. Rudy did not return phone calls Thursday, so it was not possible to determine if "Leadership" referred to Mr. DeLay.

In e-mail on July 8, 2002, to the lobbyist for a Texas Indian tribe, Mr. Abramoff asked about the status of the tribe's contribution to the foundation for Mr. DeLay: "I am getting daily calls on this. When they return tomorrow, I have no doubt, Tom himself is going to call." Mr. Abramoff appeared to be referring to Mr. DeLay's return to Washington after the Fourth of July holiday."

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"Did you get the message from the guys that Tom wants us to raise some bucks from Capital Athletic Foundation?" Mr. Abramoff asked a colleague in a message on June 6, 2002, referring to the charity. "I have six clients in for $25K. I recommend we hit everyone who cares about Tom's requests. I have another few to hit still."

There you have it. In 2002,  Republican House Majority Whip Tom DeLay knew about Jack Abramoff's phony Capital Athletic Foundation and apparently Rep. Tom DeLay was okay using it for his own financial benefit. Nice guy, huh?

Visit the Capital Athletic Foundation website circa September 2002 in the internet archives.

Note the Capital Athletic Foundation's mission:

"The mission of the Capital Athletic Foundation is to foster character development by promoting the American ideals of sportsmanship in all endeavors. These ideals include integrity, honor, brotherhood, morality, leadership and good citizenship. Sportsmanship is ethical behavior both on and off the playing field; both in athletics and in business; both as a youth and as an adult."

You have to laugh. Jack Abramoff's Capital Athletic Foundation took in more than $1 million that year from Indian tribes and $450k from Amy Ridenour's National Center For Public Policy Research (I'd like to see the Capital Athletic Foundation's grant proposal!).

Based on the 990s filed with the IRS by the Capital Athletic Foundation (available online at the Foundation Center's 990 Finder),  the Capital Athletic Foundation did not contribute directly to the DeLay Foundation for Kids or the Oaks at Rio Bend in 2002.

But the Capital Athletic Foundation did contribute $25k to the DeLay Foundation For Kids in 2003.

I  posted a series of comments about the Capital Athletic Foundation here in the TPM Cafe in November 2005.

I also posted a series of comments about the DeLay Foundation For Kids, Oaks at Rio Bend and Celebrations For Children here in the TPM Cafe in November 2005.  

I don't know if Jack Abramoff filed legitimate 990s for the Capital Athletic Foundation. Most of the foundation's money went to Abramoff's ill-fated private Jewish school, Eshkol Academy but who is to say the books and records of the Eshkol Academy were in order. Jack Abramoff controlled the school's finances.

In 2001, Jack Abramoff's Capital Athletic Foundation raked in its first million dollars from an Indian tribe, the Coushattas of Louisiana. On top of that, Foxcom Wireless, an Israeli telecom, kicked in $50k. Congress recently cancelled its Foxcom contract because it was obtained through bribery.

In 2002, the Capital Athletic Foundation supposedly contributed $300k to PTACH in Brooklyn. The only PTACH I could find in Brooklyn surely did not receive $300k from Jack Abramoff's Capital Athletic Foundation.

In 2003, the Capital Athletic Foundation made a grant of $251k to Beis Avrohom Chaim in Silver Spring MD. Guess what? Beis Avrohom Chaim was a corporation owned by one Jack Abramoff. I'd like to know where that $251k really went. That was the same year the Capital Athletic Foundation made the $25k grant to the DeLay Foundation For Kids.

Jack Abramoff is a convicted felon who is guilty of public corruption. At the very least, Tom Delay should explain why he wanted Jack Abramoff to raise money for him through Abramoff's phony Capital Athletic Foundation but I won't hold my breath waiting for the answer.

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"...raise some bucks from Capital Athletic Foundation..."

Last I checked, you don't raise funds from charities, you raise funds for charity... This just shows how backwards that whole crime syndicate is/was.

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Washington Post
By Juliet Eilperin
7/26/00

"A 'Petri Dish' in the Pacific; Conservative Network Aligned With DeLay Makes Marianas a Profitable Cause"

Last year, two close associates of one of the most powerful members of the U.S. House spent part of their New Year's holiday 8,000 miles from Washington in the Northern Marianas. Although the islands are known for their balmy weather, golf courses and great snorkeling, the trip could hardly be described as a junket--the advisers to House Majority Whip Tom DeLay (R-Tex.) were there on a political mission.

Ed Buckham and Mike Scanlon wanted to lend support to a conservative politician vying to become speaker of the U.S. territory's House of Representatives. As the two operatives toured airstrips and ports, assessing the islands' infrastructure needs, their message was subtle but clear: Elect Ben Fitial speaker, and congressional largess would follow.

Soon after the visit, several local lawmakers switched sides and threw their support to the DeLay-backed candidate, saying they were convinced the islands would have a better chance of winning federal funds if they elected someone with such close ties to congressional leaders. Fitial became speaker in January.

It was only the latest success in an extraordinary campaign by a powerful network of GOP lawmakers, conservative activists and lobbyists to apply their free-market ideology to this small outpost in the western Pacific, home to a bustling, low-wage garment industry that sends more than $ 1 billion worth of goods every year to the U.S. mainland.

For years, labor unions and human rights activists have tried to improve conditions at what they consider the sweatshops of the Northern Marianas, whose best-known island is Saipan. But they have been blocked at virtually every turn by the coalition of conservatives assembled by Preston Gates Ellis & Rouvelas Meeds, a firm that has used the issue to cement its reputation for lobbying congressional Republicans.

With the aid of powerful GOP allies such as DeLay and House Resources Committee Chairman Don Young (R-Alaska), Preston Gates has turned the Marianas into a cause celebre for conservative activists and a profitable business for itself and its allies. The firm has collected more than $ 6 million in fees from the government and businesses in the islands, and Buckham--DeLay's former chief of staff--has leveraged his ties to both the whip and Marianas officials to secure a multimillion-dollar power plant contract for a major energy company in DeLay's district.

Rep. George Miller (D-Calif.), a strong critic of the lax wage and immigration laws on the islands, said the conservative campaign on the Marianas is a cautionary tale in which the very people at the center of the controversy are the only ones who lose out. "It's a story of a very narrow special interest triumphing over the rights and dignity of the workers," he said.

But Jack Abramoff, who has directed the Preston Gates lobbying campaign, compares the laws Miller and others are seeking to impose with the Nuremberg Laws restricting Jews' activities under the Nazis.

"These are immoral laws designed to destroy the economic lives of a people," Abramoff said. Conservatives "see in this battle a microcosm of an overall battle. . . . What these guys in the CNMI are trying to do is build a life without being wards of the state."

Composed of 14 islands in the Pacific just north of Guam, the area now known as the Commonwealth of the Northern Mariana Islands, or CNMI, was seized by the United States from the Japanese during World War II. But it wasn't until 1986 that a covenant went into effect granting Northern Marianas residents U.S. citizenship and all the benefits that flow from that, except the right to vote in federal elections.

For House Republicans, the territory embodies many of the ideals they promoted when they seized the majority in 1994. It is exempt from federal labor and immigration laws, setting its minimum wage at $ 3.05 an hour; of the roughly 79,000 residents, many are low-wage workers from China or the Philippines. The factories churn out clothes bearing the label "Made in the USA," which can be sent without tariffs or quotas to the mainland. "It is a perfect petri dish of capitalism," DeLay said in an interview. "It's like my Galapagos island."

But Democrats and labor activists say the dearth of regulations has fostered abhorrent conditions for workers. They accuse the garment manufacturers of forcing people to work long hours without overtime, failing at times to pay them at all, and requiring them to live in crowded "barracks." In 1995, when the U.S. Senate adopted a bill to impose U.S. immigration standards on the Northern Marianas, then-Gov. Froilan Tenorio hired Preston Gates to block the measure in the House.

The man Tenorio turned to, Abramoff, had impeccable GOP credentials. A former chair of the nation's College Republicans, Abramoff become so close with his executive director, Ralph Reed, that he let the future Christian Coalition leader sleep on his couch for a time. These days, Abramoff is a top fundraiser for DeLay and other House Republicans and a major fixture on the city's power lunch circuit.

Abramoff and his team, which includes DeLay's former deputy chief of staff, Bill Jarrell, and ex-representative David Funderburk (R-N.C.), launched a full-scale push to elevate the Marianas into a major issue for House Republicans, coordinating a series of free visits for lawmakers and their aides. More than 85 people took part in these visits: DeLay celebrated New Year's Day 1998 on the Northern Marianas with his wife, daughter and Buckham, his top aide at the time.

At the suggestion of Preston Gates, the territory also cultivated conservatives outside Congress. Among those who visited the Marianas at the government's expense were officials from conservative groups such as the Heritage Foundation, the Cato Institute, Citizens for a Sound Economy, the Institute for Justice and the Traditional Values Coalition, a major conservative lobbying force.

Andrea Sheldon Lafferty, executive director of the Traditional Values Coalition, had heard from a Senate Democratic staff member that forced abortions were performed on the islands. One Sunday at church she confronted a Preston Gates employee, who offered to pay her way to the Northern Marianas.

"I was loaded for bear," recalled Lafferty, who made the journey in August 1997 and became convinced the allegations were false. She has now become a fierce proponent of the territory, starting a chapter there and even arranging for lawmakers to visit.

Other groups that have traveled to the Marianas at the territory's expense, such as Citizens Against Government Waste and Americans for Tax Reform, have launched blistering attacks on legislation that would strip the garment manufacturers of some of their special privileges, such as being able to use the "Made in the USA" label.

Indeed, Preston Gates has managed to scuttle just about every legislative thrust aimed at the Marianas. Early this year, when Senate Energy and Natural Resources Committee Chairman Frank H. Murkowski (R-Alaska) tried to revive his bill to apply U.S. immigration laws to the islands, the lobbyists persuaded Sen. Robert C. Smith (R-N.H.)--two of whose former aides work at Preston Gates--to put a hold on the measure and delay its consideration for weeks. Though the measure ultimately passed in the Senate, giving the firm its sole legislative defeat of the year, it stalled in the House after Resources Committee Chairman Young declared his opposition.

Young, who will be honored at a Preston Gates reception during the Republican National Convention in Philadelphia, has been helpful to the cause in several other ways. He helped force the resignation of an Interior Department critic of the islands' garment industry after his committee uncovered evidence that the official engaged in partisan activity on government time. He also killed an effort this March by Democrats to impose the federal minimum wage on the islands, saying it would place an "undue burden" on the people there.

But for Preston Gates, there has been no better congressional friend than DeLay, who has repeatedly cranked the legislative gears on the territory's behalf. He and his allies have taken a particular interest in the political fortunes of Fitial, who before he became speaker this year served as second-in-command to Willie Tan, the Marianas' most powerful garment factory owner.

DeLay and his aides made local lawmakers aware of the whip's close ties to Fitial, putting an airport runway wanted by some Marianas lawmakers on a list of projects in this year's transportation spending bill.

Now his aides are hoping to add $ 350,000 to an energy and water bill to promote projects on the islands.

"I just see a very clear interference," Diego T. Benavente, a local politician and supporter of Fitial's rival, said of DeLay's efforts.

Buckham said in an interview that he went to the Marianas as a favor to Fitial. "They always say, 'We hope you can help us,' and we say, 'We hope we can help you too,' " he said. "I'm sure it did show he had powerful friends in Washington. I'm not going to deny that."

Fitial, who boasts that he is the defending putting champion at DeLay's annual charity golf tournament, said he was forced to call upon House Republicans to fend off attacks from liberal Democrats. "He's a friend. Of course I look to my friends for help," he said, adding that the islands' policies have come under fire "because there are stupid people in Washington who do not understand, or pretend not to understand, our issues."

Another beneficiary of DeLay's assistance has been Buckham, who has represented the energy giant Enron Corp. in a power plant permit dispute in the Marianas, making $ 50,000 in fees last year. When Enron felt it was unfairly cut out of the territory's bidding process, Buckham asked DeLay to write local officials.

DeLay sent the letter last summer, emphasizing that the territory "desperately needs a fair hearing in far-off Washington D.C., which at least some of us here have been able to provide," and that the same courtesy should be extended to Enron. The bidding was reopened, and Fitial subsequently pushed through a measure helping ensure that Enron would obtain the $ 120 million contract for an 80-megawatt power plant, prompting outcries from other bidders.

Fitial and his allies plan to keep up the pace regarding Washington. Although Fitial's legislation to provide $ 700,000 for new federal lobbying fees, which the speaker said would go to Preston Gates, was vetoed as part of a larger spending bill, Abramoff and Preston Gates have reason to be optimistic. On Friday the House held a special session to approve a resolution calling on the governor to hire D.C. lobbyists.

Despite the criticism, Abramoff says the Preston Gates lobbying campaign has been a success. "They were one step away from being taken over," Abramoff said. "We had a limited amount of time, so we went and educated the Republicans. It saved them." 

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Hmm...I was under the impression that although the Delays first registered the DeLay Foundation For Kids, Inc. in Texas in 1987, the foundation had been relatively inactive until 2000 or 2001 when the idea for the Oaks at Rio Bend project was conceived.

But, according to Peter Stone in his 5/7/05 National Journal story,"Getting in Good With Tom and Christine," the DeLay Foundation For Kids was cooking with gas in 1998. I wonder what the DeLays did with the money they raised for the foundation before 2001.

National Journal
By Peter Stone
5/7/05

"Getting in Good With Tom and Christine"

In 1998, as the DeLay Foundation for Kids was gaining name recognition in Washington and accelerating its fundraising efforts, lobbyists began lining up for the chance to play in the charity's annual golf tournament.

That spring, an eclectic group of golfers waited to tee off at the posh Woodlands Resort and Conference Center just outside of Houston. Among the group were some 10 politicians and businessmen from the Commonwealth of the Northern Mariana Islands, a representative from the Chitimacha Tribe of Louisiana, and a wealthy businessman from Puerto Rico named Hernan Franco.

The Marianas, the Chitimacha tribe, and a group of Puerto Rican businessmen had one thing in common: All were clients then, or shortly afterward, of lobbyist Jack Abramoff, who was a star rainmaker at Preston Gates Ellis & Rouvelas Meeds and a good buddy of House Majority Leader Tom DeLay, R-Texas, who was then majority whip. As DeLay's friend, Abramoff wanted to help boost the foundation, which DeLay and his wife, Christine, created in 1986 to assist abused and neglected children. Some of Abramoff's clients gave as much as $25,000 to attend the event at Woodlands seven years ago.

Moreover, as a lobbyist with multiple interests in Washington, Abramoff wanted to do more. His effort on the charity's behalf was part of a full-court press that over the years resulted in the raising of hundreds of thousands of dollars for DeLay's pet projects, both political and personal. "Jack was trying to stay close and supportive of DeLay," said a former House leadership aide. For Abramoff, getting clients to donate money to the foundation was "a no-brainer," the former aide said.

Another lobbyist close to DeLay said that anyone who wanted to impress Christine would take a strong interest in the foundation. "If you want to have a good relationship with Tom, you need a good relationship with Christine," the lobbyist said.

To be sure, Abramoff's clients in 1998 had every reason to stay on DeLay's good side, because the majority whip had already shown himself to be a key supporter of some of their interests in Washington.

Just a few months before the 1998 Woodlands event, for example, the DeLays and Ed Buckham, who was DeLay's chief of staff, took a junket to the Marianas, a U.S. protectorate in the western Pacific Ocean. After returning to Washington, DeLay indicated he would continue to fight any legislation aimed at ending the Marianas' exemption from U.S. minimum-wage laws. Keeping the exemption was a top priority for the island government -- an Abramoff client -- and its domestic garment industry, which depends on low-wage immigrant workers from Asia.

In March 1998, DeLay had also voted to give Puerto Rico the right to hold a referendum on whether it should seek to become the 51st state, a key goal of Franco, who was one of the Puerto Rican businessmen represented by Abramoff.

Another Abramoff client, the Mississippi Choctaws, who sources say gave the foundation $25,000 a year for several years, benefited greatly in 1995 and 1997 when DeLay helped to block bills that would have taxed Indian gambling revenues.

Two other Abramoff-represented Indian tribes with casinos -- the Louisiana Coushattas and the Agua Caliente of California -- later also helped the DeLay foundation by donating a total of $22,500 in 2001 and '02. Abramoff is the subject of a federal fraud and tax investigation related to tens of millions of dollars in fees that several Indian tribes with casinos paid him over several years.

Critics say that the donations by Abramoff's clients to the DeLay foundation show how special interests can use politician-sponsored charities to make large donations to advance their causes.

Rick Cohen, the executive director of the National Committee for Responsive Philanthropy, said that the practice "underscores the potential, if not actual, abuse of a nonprofit form. In this circumstance, the DeLay foundation becomes a venue for circumventing campaign finance and political lobbying regulations and disclosures." Fred Wertheimer, the president of Democracy 21, said, "DeLay was taking care of Abramoff's lobbying clients, and Abramoff was taking care of DeLay's interests."

DeLay spokesman Dan Allen rejected any suggestion that DeLay's votes were tied to donations from Abramoff's clients. "Everyone knows that Congressman DeLay makes voting decisions based on the merits of each piece of legislation as it comes forward," Allen said.

Criticism aside, the foundation's goals are consistent with values that have long been espoused by Tom and Christine DeLay. The DeLays helped to raise three foster children.

The foundation's current major project is the construction of eight homes, a gymnasium, a chapel, and other facilities on a planned 50-acre community of permanent homes for foster children and their foster parents in the Rio Bend area of Richmond, Texas. The project is being built by construction mogul Bob Perry of Houston, who was a key financier of Swift Boat Veterans or Truth, the group that played a high-profile role last year in attacking Sen. John Kerry, D-Mass., during the presidential campaign. Perry has also contributed to DeLay's political action committee, Americans for a Republican Majority.

For the DeLay Foundation for Kids, the annual golf tournament has been its top source of income. Since fiscal 1999, the foundation has earned about $7 million from the annual event.

(In fiscal 2004, the foundation raised $2.2 million and spent $2.4 million, the lion's share going to the Rio Bend project, and it ended the year with assets of $3.7 million, according to its most recent filing with the Internal Revenue Service.)

Some longtime donors say they give to the foundation for its charitable works. "We thought it was a good cause, and it is a good cause," said Tommy Payne, executive vice president for external affairs for Reynolds American, the parent company of R.J. Reynolds Tobacco, which has been close to DeLay for many years because of his anti-tax, anti-regulation stances.

Yet for lobbyists, the foundation offers a way to build ties with DeLay. Buckham's experience is one example. When he attended the golf outing in 1998, Buckham had just left DeLay's office as chief of staff to launch his own lobbying practice, the Alexander Strategy Group. Abramoff, who was already a rising star on K Street, was throwing some work Buckham's way in the form of grassroots and communications contracts for the Marianas and the Choctaws. During the 1998 tournament, according to one attendee, Buckham shepherded Marianas representatives to events, including an evening reception with the DeLays.

Since that time, the Alexander Strategy Group has built an impressive lobbying clientele that includes R.J. Reynolds, Fannie Mae, Freddie Mac, and United Parcel Service. All of these companies have supported the DeLay foundation. According to the foundation's 2004 filing to the IRS, lobbyists Duane Duncan of Fannie Mae and Marcel Dubois of UPS are members of the foundation's board. A lobbyist familiar with the board when it was established said that generally people were put on the board to "lock them in as donors," typically at $25,000 a year.

One DeLay ally said that Abramoff and Buckham seemed to view the foundation as a vehicle partly to boost their personal ties with the Texan. "Buckham and Abramoff knew that if they kept Christine happy, and, by extension, Tom happy, they could continue to have unfettered access to DeLay's office," said this source. "The charity was a key avenue for their clients to put financial resources into DeLay Inc."

Under federal law, the DeLay foundation is not required to disclose the names of its donors, and it does not do so voluntarily. But according to news reports, ExxonMobil and AT&T have each donated $50,000, and the Corrections Corporation of America, which manages federal prisons, gave $100,000 last year.

Some fundraisers for DeLay's political operations have also raised money for the foundation. For instance, Craig Richardson, a longtime fundraiser for DeLay's campaigns, has helped run the charity golf tournaments for a number of years. "Each entity pays me separately for the specific work I perform on their behalf," Richardson said. Similarly, the online publication Salon reported earlier this month that Warren Robold, a top fundraiser for DeLay's political action committee Texans for a Republican Majority, was also paid $50,000 a few years ago to raise money for the charity. Robold has been indicted in Texas on charges of violating state campaign finance laws.

Moreover, such foundation donors as R.J. Reynolds have poured tens of thousands of dollars into ARMPAC, as well as into a DeLay legal defense fund to support the politically embattled majority leader. "DeLay is anti-tax and anti-regulation, and we support that point of view," said Payne.

Larry Noble, the former general counsel at the Federal Election Commission who runs the Center for Responsive Politics, says that the entire setup troubles him. "When you have campaign people fundraising for the charity, it further reinforces the idea in the minds of donors that this is all about Tom," Noble said. "I think what DeLay has put together is a fundraising machine that involves his political campaign, his PAC, and his charity. As far as contributors are concerned, they're just giving to DeLay."

Indeed, some of Abramoff's clients, who received special attention during the charity golfing events and in Washington, seemed to get this impression.

A top executive in the Marianas garment industry, Ben Fitial, thanked Buckham and DeLay in an April 1997 e-mail to Buckham for the hospitality they extended at the Woodlands tournament and during a visit to DeLay's office in Washington a few days later to talk about legislative issues that Abramoff was pressing for the islands. Fitial wrote to Buckham, who was still DeLay's chief of staff, that DeLay had been generous enough to "allow our group to virtually take over his office," and concluded that the majority whip also "was happy after the golf tournament because he beat me by one stroke."  

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I think a lot of people don't know that Tom DeLay, John Doolittle, Ralph Hall  and many other Republicans want to abolish the minimum wage law. In fact, they would abolish all laws that  protect workers' rights, if they could, and the GOP practiced what it preached in the Northern Marianas, a US territory in the Pacific Ocean that includes Guam.  

The Northern Marianas has been in the news recently in connection with the DOJ scandal because the chief federal prosecutor there, USA Frederick A. Black, was demoted in 2002 under pressure from Jack Abramoff and others. CREW covered the story in August 2005 but the facts are widely available elsewhere.  

Last September, I posted several news stories here in the TPM Cafe about what had been going on in the Northern Mariannas for several years to highlight GOP hypocrisy. At the time, I was surprised about how much information about the GOP in the Northern Mariannas was published before 2005.

I have to hand it to Juliet Eilperin for her first-rate 7/26/00 Washington Post story, "A 'Petri Dish' in the Pacific; Conservative Network Aligned With DeLay Makes Marianas a Profitable Cause." If I had read that story when it was first published, I would have better understood what Tom DeLay and the right wing were all about a lot sooner.  

From the 7/26/00 WaPo story:

"...For House Republicans, the territory embodies many of the ideals they promoted when they seized the majority in 1994. It is exempt from federal labor and immigration laws, setting its minimum wage at $ 3.05 an hour; of the roughly 79,000 residents, many are low-wage workers from China or the Philippines. The factories churn out clothes bearing the label "Made in the USA," which can be sent without tariffs or quotas to the mainland. "It is a perfect petri dish of capitalism," DeLay said in an interview. "It's like my Galapagos island..."

On the other hand, Democrats took a dim view of what was going in the Northern Marianas.



"...Rep. George Miller (D-Calif.), a strong critic of the lax wage and immigration laws on the islands, said the conservative campaign on the Marianas is a cautionary tale in which the very people at the center of the controversy are the only ones who lose out. "It's a story of a very narrow special interest triumphing over the rights and dignity of the workers," he said..."

The GOP has effectively handled the Democrats' attempts to put the spotlight on the GOP and the Northern Marianas by simply not responding to any charges of financial or political improprieties.

But I have been reading about Tom DeLay making noises in the news these last few days about how he is being unfairly persecuted by the liberal media and Rosie O'Donnell who apparently made fun of Delay and his high morals standards on "The View".

Tom DeLay must know that liberals and many other Americans believe the abolishment of the minimum wage law and other laws protecting American workers would be immoral. What DeLay should do is get out the word as to why liberals and other Americans are wrong about the minimum wage law and how it hurts American workers.

Very seriously, I'd like to hear Tom DeLay publicly explain why he opposes any minimum wage law. If DeLay already has spoken about the issue elsewhere, I don't know about it and would welcome any references. I've read various right-wing tracts over the years about how the minimum wage actually hurts American workers but I still don't understand why I would not be better off making $7 an hour than $5 an hour if I am a worker.

I also don't understand how I benefit if a CEO of a company in which I own stock makes $500 million instead of $100 million. But I have not read any studies as to the incremental benefit to the shareholder of every $100 million paid to a CEO. Again I would welcome any references.

As an aside, can anyone explain why American taxpayers including corporations should get investment tax credits for investing in Communist Red China? The Red Chinese government is totalitarian, no matter how you slice it of dice it, and even the benefits of its much touted capitalist economic system are not available to everyone in Red China. I watched a television show about a Red Chinese athlete who returned to Red China from the US because the Red Chinese government promised to give her permission to be an investor.

I think it is hilarious every time the GOP gives credit to Ronald Reagan for ending Communism. Anyone with a half a brain knows that one-third of the people in the world still live under the iron fist of Communism. The reason no one in the US government cares about ending Communism in the world now is that investing in Communist countries is very profitable.

Am I the only one left in the United States of America who wonders if the people of Red China would like to vote and hold free elections? Anyone else think US taxpayers should not get a tax break for investing in Communist countries?

Maybe Tom DeLay could set me straight on why Communism is now a good thing.

More to come.

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