Panel Says Abramoff Laundered Tribal Funds

"Mr. Abramoff is put into the impossible position of not being able to defend himself in the public arena until the proper authorities have had a chance to review all accusations," said the spokesman, Andrew Blum.

Three former associates of Abramoff and Scanlon who were summoned to testify declined to do so, citing their Fifth Amendment right against self-incrimination. They included former Greenberg lobbyist Kevin Ring, who continues to represent the Choctaw tribe as a lobbyist, and Shawn Vasell, who like Ring was a congressional aide before joining Abramoff's lobbying team.

A third former associate, Brian Mann, was a director of the American International Center, a foundation set up by Scanlon in Rehoboth Beach, Del. Money from tribes and other clients passed through the AIC and was paid to Reed as well as to Abramoff and Greenberg Traurig.

Mann, a yoga instructor, was a director of the AIC, along with former lifeguard Brian Grosh, a longtime beach buddy of Scanlon's. The AIC described itself on its Web site as "a premiere international think tank," that was "determined to influence global paradigms in an increasingly complex world."

Grosh told the panel that Scanlon asked him to serve as a director of the AIC and paid him $2,500. "I'm embarrassed and disgusted to be part of this whole thing," he testified, saying he did not know much about the AIC's financial activities.

Asked about the e-mails released yesterday, Reed reiterated in an interview that the money he received for his anti-gambling activities did not come from gambling proceeds. He said that he has always acknowledged receiving money from the Choctaws but asked the tribe to assure him that the funds sent to him would not come from the casino.

"The assurance I sought was that the money did not come from gambling activity," Reed said. "And that assurance was honored."

In September, however, Reed's office provided a different explanation. "We knew that Greenberg Traurig was recruiting coalition members [for the anti-gambling effort] and raising funds as well, but we had no direct knowledge of their clients or interests," the office said in a statement. "At no time were we retained by nor did we represent any casino or casino company."

E-mails released yesterday indicated that Reed did know the name of the client. OnApril 4, 1999, Abramoff told Reed to put together a cost plan for the campaign, "including a total budget figure with category breakdowns." He added: "Once I get this I will call Nell at Choctaw and get it approved."

In subsequent e-mails, Abramoff and Reed discuss how Reed would be reimbursed by the Choctaws through Abramoff's firm, and Americans for Tax Reform, a group founded by conservative activist Grover Norquist.

Yesterday, Reed's office said his comments yesterday and the September statement were not inconsistent.

The "Nell" referred to in the April 4 e-mail is Nell Rogers, who had been the Choctaws' main contact with Abramoff. Called to testify yesterday, she told the committee the tribe knew that Abramoff and Scanlon were using "intermediaries" such as the American International Center to pay for the anti-gambling campaigns.

"I am sure there probably were concerns -- or public perception concerns -- about some of the recipients, about not being associated with a tribe or with a gaming tribe," she said.

Abramoff, Norquist and Reed have been political allies since their days as leaders of the College Republicans. Reed and Abramoff appear to have set up a business arrangement as Reed wound down from the 1998 election cycle. Responding to a query from Abramoff about how candidates he supported had done, Reed wrote: "Hey, now that I'm done with the electoral politics, I need to start humping in corporate accounts! I'm counting on you to help me with some contacts."

The Choctaws, the richest and most successful gambling tribe in the country, initially defended Abramoff when his activities first drew scrutiny over a year ago. But they began cooperating with government investigators last summer after being told by Greenberg Traurig that its internal investigation had found fraud in the lobbyist's work for the tribe.

Yesterday, McCain said the committee had found that Abramoff and Scanlon had pocketed $6.5 million of the $7.7 million in consulting fees they received from the Choctaws. McCain said that Abramoff had directed the Choctaws to hire Scanlon for consulting work, but never revealed to the tribe that they had a secret partnership, which they called "gimme five," according to the e-mails.

Whenever Scanlon pitched his services to a client, Abramoff would remind him of their extra profits. On Aug. 16, 2001, Abramoff wrote to Scanlon, "Don't forget the gimme five aspects." On Oct. 17, 2001, Abramoff wrote, "So there is more gimme five coming on all these as well, right?"

Said Sen. Byron L. Dorgan (D-N.D.): " 'Gimme five' means 'I'll take a cut of this.' " "I'm past anger and bitterness," Rogers, the Choctaw official who had worked most closely with Abramoff, told the committee. "It is an extraordinary story of betrayal."