« Sympathies to Londoners (and all Brits) | Main | RIP, Andy »

July 07, 2005

House Committee Requests Wider Investigation of Abramoff

The New York Times published two articles on Wednesday about the ever widening scandal surrounding Jack Abramoff that of course has connections to Tom DeLay. Perhaps one of the most significant moves is that the US House Committee on Resources has requested the Justice Department widening the corruption investigation of former lobbyist Jack Abramoff.

Chairman Richard Pombo (R-CA) and the ranking Democrat Nick Rahall (D-WV) on the Resources Committee submitted a written request to Attorney General Alberto Gonzales. It specifically cited the numerous accusations of wrongdoing concerning Abramoff's multimillion-dollar lobbying for the Northern Mariana Islands, an American commonwealth in the Pacific.

The Resource Committee's action marks "the first known request by a Congressional committee for prosecutors to review accusations of criminal conduct in the lobbying activities of Mr. Abramoff, who was one of the most powerful and best-paid Republican lobbyists in Washington."

Of course we all know that the Democrats have been pushing such investigations, it's just that they have been relegated to non-descript basment rooms. Representative George Miller (D-CA), a member of the Resources Committee, has been particularly vocal on the need to more thoroughly investigate Abramoff's lobbying regarding the islands.

Now for how Abramoff and his Mariana Islands dealings can come back to haunt DeLay:

It all happened on a trip to the Mariana Islands back in 1997...

While attending a meeting of local officials, DeLay proclaimed to the audience that Abramoff was among his "closest and dearest friends." DeLay's constituents will be glad to know that DeLay also promised to defend the islands' interests in Congress, particularly thwarting Congressional efforts to end labor abuses on the islands.

Abramoff's financial records show that he met frequently with DeLay and his aides about the Northern Mariana Islands.

In a 2001 e-mail message to the islands' general counsel, Mr. Abramoff described Mr. DeLay as "our biggest supporter on Capitol Hill."

Of course Abbramoff's business with the Northern Mariana Islands is only part of the matter. He has also mixed business with lobbying at Signatures, his Washington, DC restaurant, events that are increasingly receiving the attention of investigators. As long as you were a lobbying interest of Abbramoff, it was unnecessary to sign any bill. Conspicuously, DeLay is the front runner among those who benefited from Abramoff's special treatment.

On the menu at Signatures was a $74 steak and a $140 tasting menu. The restaurant used to be very popular among Hill staffers and prominent politicians. Abramoff of course would patronize his own business, and he even sometimes had his meals specially prepared in a seperate kosher kitchen. He oftened enetertained DeLay and several other members of Congress at his restaurant.

For example, Mr. Abramoff wrote an e-mail message to three restaurant managers in May 2002, instructing them not to charge Mr. DeLay, his wife, Christine, and four others when they came in a week later.

"Table of 6," Mr. Abramoff wrote, "put it where I sit and remove that other table. Their meal is to be comped."

Apparently, Abramoff even had a list of who was eligible to dine for free. The list included 18 names of lawyers, lobbyists as well as eight current or former lawmakers. In the margins were handwritten notes designating the person as "FOO Comp" -- friend of the owner -- or "A-Comp" -- associate of owner.

Mr. Abramoff was in the restaurant almost daily, often treating a table full of guests to hundreds of dollars worth of food, wine and liquor, financial records show. Over a 17-month period in 2002 and 2003, the restaurant gave away about $180,000 in food and drink, with Mr. Abramoff's tab roughly $65,000 for himself and his guests, the records say. About a dozen former employees and managers, including three who provided records, described Mr. Abramoff's activities at Signatures. Most would speak only on condition of anonymity because of the investigations. Several acknowledged that they had left on poor terms, while most said they simply moved on.

Abramoff's entertataining at Signatures is gaining attention because he clearly used the restaurant to promote his lobbying efforts, such as entertaining lawmakers who could provide assistance to his clients.

Not to be left out are the Indian tribes, which apparently got slapped with some hefty bills for dining at the restaurant. The Mississippi Band of Choctaw Indians got charged over $5,600 for meals with public officials and lobbyists in 2002.

Back in the heyday of Signatures, many prominent people dined at the restaurant, including Karl Rove, House Speaker Dennis Hastert, and Governor Arnold Schwarzenegger. As Abramoff increasingly became radioactive material, several patrons decided it was time to pay up and make sure their names were cleared. For example, Dennis Hastert and Senator David Vitter (R-LA) made a point to pay the restaurant early this year for fundraisers held in 2003.

Regular Visitors to Signatures:

Representative Dana Rohrabacher (R-CA) had the designation of FOO Comp, and dined at Abramff's expense once or twice a month. He claims his meals fall under friendship exemption in House rules, and that "it was a dinner with a friend and I didn't think it was a gift."

Represenative Bob Ney (R-OH), the Chairman of the House Committee on Administration. PoliticalMoneyLine shows that his campaign and political action committee paid about $1,900 for meals between 2002 and 2004. However, former employees say that Ney often ate and drank without paying during evenings with lobbyists and Congressional staffers.

Perhaps more incriminating is a meal for 18 that Neil Volz organized in April 2002, Ney's former chief of staff who also was working with Abramoff at Greenberg and Taurig. The cost of the event was $70 per person with a $1,500 minimum. Yet, according to PoliticalMoneyLine, there are no campaign records that prove Ney's campaign or political action committee actually paid for the event.

Representative John Doolittle (R-CA) another Foo-Comp had several free meals. His spokeswoman says he didn't do anything wrong.

Other representatives that were designated FOO-Comps included Roy Blunt (R-MO), and Frank LoBiondo (R-NJ). Former Senators John Breaux (D-LA), Don Nickles (R-OK), and Tim Hutchinson (R-AR) were also regulars, but the list notations stated they did not regularly dine with Abramoff or as receiving free meals.

House Majority Leader Tom DeLay had a FOO-Comp designation. Restaurant employees say that he would often come for drinks but not stay for meals. However, a DeLay event was scheduled by DeLay's political action committee in April 2002 for 16. It was held in a private room, and the cost was $75 per person with a $1,500 minimum. Tony Rudy, who was working with Abramoff at Greenberg and Taurig, and Tom Hammond, a fundraising consultant planned the event. There are no campaign finance records showing payment for the event.

Here's what Richard Cullen, DeLay's lawyer has to say about the matter:

"Mr. DeLay has stated repeatedly that he believes he has at all times conformed with House rules and that he will cooperate fully at the appropriate time with those whose responsibility it is to review these matters," Mr. Cullen said. "But he will not engage the press each time a political opponent feeds reporters often incomplete, irresponsible or inconsistent information. To do so would legitimize these political attacks and would be inappropriate."

Not surprisingly with all the entertaining that Abramoff was doing, even though his restaurant was popular, it was not a big money maker.

Mr. Abramoff and his companies invested more than $3 million in Signatures from January 2002 to May 2003, records show. At the same time, he and his employees gave away tens of thousands of dollars in food, wine and liquor, the records show. That includes menu prices for Mr. Abramoff's own food and drink, as well as employee discounts and free meals given by restaurant managers and staff, according to the records. Nationwide, the median expense for marketing, including free meals and drinks, was about 3.5 percent of sales for expensive restaurants like Signatures that spend the most on such promotions, according to the National Restaurant Association. One national restaurant consultant, Clark Wolf, said the figure can go as high as 5 percent.

At Signatures, free meals and drinks for managers and guests alone were about 7 percent of revenues for the restaurant's first 17 months, according to former employees and financial records. Mr. Blum, the spokesman for Mr. Abramoff, disputed that percentage.

Signatures is no longer the in place to be, and is often deserted while many diners can be found eating outside at other restaurants nearby. Abramoff is apparently attempting to sell his interest in Signatures now (maybe to pay for his legal fees).

At least it proves that what goes up must come down, and that by connecting Abramoff to other powerful Republicans, who participated in under-the-rules dealings they will come down too. Nevertheless, the days of the Grand Old Parties at Signatures have come to an end.

Articles from the New York Times:

Justice Department Is Asked to Widen Inquiry of Lobbyist

For Lobbyist, a Seat of Power Came With a Plate

Posted by at July 7, 2005 02:04 PM | Permalink

Trackback Pings

TrackBack URL for this entry:
http://www.houstondemocrats.com/cgi-bin/mt-tb.cgi/382

Comments

Post a comment




Remember Me?

(you may use HTML tags for style)

Clicking the Post button signifies that you agree to adhere to the Comment Policy
« Sympathies to Londoners (and all Brits) | Main | RIP, Andy »