Lawmaker's Abramoff Ties Investigated

Ney and Abramoff, whom DeLay once described as "one of my closest and dearest friends," crossed paths as early as 1996. That year Ney took a trip to Montenegro sponsored by a foundation that had links to Abramoff, who was a lobbyist for Montenegro.

A few years later, Ney paid unusual attention to another Abramoff client, the Florida gambling boat company SunCruz, which was headquartered more than 1,000 miles outside of Ney's congressional district. Abramoff and his business partner were trying to buy the cruise ship fleet from Konstantinos "Gus" Boulis, but Boulis was demanding unwelcome additional terms.

In March 2000, Ney used the Congressional Record to assail Boulis.

"On the Ohio River we have gaming interests that run clean operations and provide quality entertainment," Ney wrote. "I don't want to see the actions of one bad apple in Florida, or anywhere else to affect the business aspect of this industry or hurt any innocent casino patron in our country."

Ney's remarks were orchestrated by Michael Scanlon, a former DeLay spokesman who had just been hired to work for Abramoff at Preston Gates & Ellis LLP. Scanlon had approached Ney through his chief of staff, Neil Volz, according to sources who spoke on the condition of anonymity. Volz has repeatedly declined to be interviewed.

A few months later, Boulis agreed in principle to sell SunCruz to Abramoff and Kidan for $147.5 million. The deal closed in the fall. But Abramoff and Kidan failed to make good on a $23 million payment owed to Boulis, court records show.

When Boulis was being difficult in the negotiations, Ney again made an official statement, this time heaping praise on Kidan.

"Since my previous statement, I have come to learn that SunCruz Casino now finds itself under new ownership and, more importantly, that its new owner has a renowned reputation for honesty and integrity," Ney said in the Congressional Record on Oct. 26, 2000. "The new owner, Mr. Adam Kidan, is most well known for his successful enterprise, Dial-a-Mattress, but he is also well known as a solid individual and a respected member of his community.

"While Mr. Kidan certainly has his hands full in his efforts to clean up SunCruz's reputation, his track record as a businessman and as a citizen lead me to believe that he will easily transform SunCruz from a questionable enterprise to an upstanding establishment that the gaming community can be proud of."

But Kidan's "track record" included a string of lawsuits, judgments, liens, bankruptcies and failed businesses. His Dial-a-Mattress franchise in the District was in bankruptcy. He had filed personal bankruptcy, and he had surrendered his law license in New York after being accused of fraud. One of his mentors, Anthony Moscatiello, was alleged by law enforcement to be an accountant for New York's Gambino crime family.

Ney later said he did not know about Kidan's background.

Four months after Ney's remarks in the Congressional Record, Boulis was murdered in Fort Lauderdale. Police did not make any arrests in the case until September, when they charged four men in the slaying, including Moscatiello and a business associate of Moscatiello's whom Kidan had paid $250,000 as catering consultants.