Ex-Lobbyist Is Assailed at Hearing
Thursday, September 30, 2004
Former lobbyist Jack Abramoff and public relations executive Michael Scanlon formed a secret partnership that corruptly influenced Indian tribal elections in order to bilk tribes that operate gambling casinos out of more than $66 million in fees, lawmakers charged yesterday during an unusual Senate committee hearing.
Abramoff, appearing under subpoena before the Senate Indian Affairs Committee, endured blistering attacks from senator after senator, turning aside all questions by invoking his Fifth Amendment right against self-incrimination. Scanlon dodged U.S. marshals who attempted to serve him with a subpoena compelling him to appear, according to Sen. John McCain (R-Ariz.), who with the panel's chairman, Sen. Ben Nighthorse Campbell (R-Colo.), has been leading the seven-month investigation into Abramoff's and Scanlon's activities.
Nighthorse Campbell said the documentary trail developed by the committee, including the e-mails released yesterday, tell a story of unbounded greed. He said he believes Abramoff privately showed bigotry and contempt for tribal officials who were awarding him and Scanlon multimillion-dollar contracts, referring to them as "idiots" and "troglodytes."
"Do you refer to all your clients as 'morons'?" he demanded of Abramoff. The witness, flanked by lawyer Abbe D. Lowell, looked abashed but did not answer, citing his right against self-incrimination.
Two tribal leaders, one from the Agua Caliente tribe in Palm Springs, Calif., the other from the Saginaw Chippewa tribe in Michigan, testified about their futile efforts to block their tribes from spending millions of dollars to hire Abramoff and Scanlon. Agua Caliente Chairman Richard Milanovich said he has since learned that Abramoff and Scanlon entered into "a secret cabal with certain tribal members" to whom they provided "assistance" that is still being investigated.
Bernie Sprague, sub-chief of the Saginaw Chippewas, said that, in the fall of 2001, Abramoff and Scanlon "smeared the reputations of other candidates running for Tribal Council" and got their hand-picked slate elected.
The Senate committee has assembled hundreds of thousands of pages of documents about Abramoff and Scanlon's work with six tribes in various parts of the country. Records show that Scanlon and Abramoff each collected $21 million of the $66 million in fees paid to Scanlon's companies. On top of that, the tribes paid $16 million in lobbying fees to Greenberg Traurig, Abramoff's former lobbying firm, which typically charged them $150,000 to $175,000 a month.
"The documents show that Jack Abramoff systematically sought out impressionable tribal leaders and representatives, seduced them with promises of power and prestige, and helped them attain positions of power within their tribes," McCain said. "Once in power, their allies on the tribal council steered multimillion-dollar contracts to Mr. Abramoff's lobbying firm and Mr. Scanlon's PR company."
While "every kind of charlatan and every type of crook" has exploited American Indians since the sale of Manhattan island, McCain said, "what sets this tale apart, what makes it truly extraordinary, is the extent and degree of the apparent exploitation and deceit."
The activities of Abramoff, once a powerful lobbyist with extensive ties to Republican leaders, and Scanlon, a former spokesman for House Majority Leader Tom DeLay (R-Tex.), are also being investigated by a federal grand jury in Washington.
In a telephone interview last night, Scanlon said he did not appear before the committee because his attorneys and committee lawyers had not worked out the terms of the subpoena for his testimony. He said the claims about his manipulation of tribal elections were overblown. "What was alleged is that tribal elections were rigged. What the committee produced were talking points [for tribal candidates]," he said.
Lawmakers yesterday cited the pair's e-mail traffic, which the panel subpoenaed from Greenberg Traurig, where Abramoff was head of government relations until March, when he quit under pressure.