Saturday, April 01, 2006

Former DeLay aide pleads guilty in lobbyist fraud probe

USA TODAY
Former DeLay aide pleads guilty in lobbyist fraud probe

WASHINGTON (AP) — A former top aide to Rep. Tom DeLay pleaded guilty Friday to conspiracy and promised to help with an investigation of bribery and lobbying fraud that has already netted three convictions and sparked calls for ethics reform in Congress.

Tony Rudy, DeLay's former deputy chief of staff, admitted conspiring with convicted lobbyist Jack Abramoff — both while Rudy worked for DeLay and after he left the lawmaker's staff to become a lobbyist himself.

He is the second former DeLay staffer to plead guilty to federal charges in connection with the lobbying probe. The plea agreement makes no allegation that the Texas lawmaker did anything wrong.

Rudy faces up to five years in prison, but could receive much less based on the extent of his help with the investigation.

Court papers for the first time also referred to a third former DeLay aide, Ed Buckham. Buckham, a onetime DeLay chief of staff, is described only as Lobbyist B, but is easily identifiable because the documents say Rudy worked with him after a brief stint at Abramoff's lobbying firm.

Beginning in 1997, Abramoff, his clients and Buckham's clients plied Rudy with expensive meals, trips, sports tickets, golf games and clubs, according to the plea agreement filed in U.S. District Court in Washington.

The gifts included a trip to Hilton Head, S.C., in 1999 with Rudy's wife and a trip to Pebble Beach, Calif., for the 2000 U.S. Open. Rudy was given use of a suite and seven more seats to host a bachelor party at a Washington Redskins game in August 2000. He received tickets to the Daytona 500 stock car race.

Rudy also arranged payments through Abramoff and Buckham to a consulting firm that he created and his wife, Lisa, ran. Liberty Consulting received $86,000 in payments from or at the direction of Abramoff and others while Rudy worked for DeLay.

At the same time, according to the court document, Rudy agreed to "perform a series of official acts."

These included:

•Working to get federal money for the Northern Mariana Islands, which both Abramoff and Buckham wanted.

•Getting DeLay to oppose a postal rate increase that was opposed by magazine publishers who were represented by Abramoff.

•Persuading DeLay and other leading Republicans to defeat legislation that would have restricted Internet gambling.

Later, while working as a lobbyist, Rudy also was involved in arranging a golf trip to Scotland for Rep. Bob Ney, an Ohio Republican described as Representative 1, and congressional staffers, the court papers said. He also helped attract $50,000 from two Abramoff clients to Abramoff's Capital Athletic Foundation that eventually was used to pay for the Scotland trip.

Richard Cullen, DeLay's lawyer, called Rudy's plea good news for his client because there is nothing in it that suggested DeLay was aware of Rudy's actions. "DeLay has said repeatedly for many months that he took official actions and cast votes based only on his principles and his beliefs, and clearly nothing in the filing today indicates anything to the contrary," Cullen said.

Cullen said he has turned over to prosecutors e-mails from DeLay's congressional office that involve Abramoff, Rudy and Buckham.

Other ethics lawyers and experts, however, said the Rudy plea could be ominous for DeLay, who already is under indictment in Texas.

Prosecutors "are not going to lay out a case against him in this indictment," said Stanley Brand, a Washington lawyer and former counsel to House Democrats. "There is a kind of well-worn method at the Justice Department to trade up by indicting the lower-downs."

After leaving DeLay's staff at the end of 2000, Rudy first joined Abramoff's lobbying team at the Greenberg Traurig law firm. Soon after, he signed on with Buckham at the Alexander Strategy Group. DeLay's wife, Christine, also worked there.

Rudy is the first person to plead guilty in the case since Abramoff pleaded guilty to fraud charges in January. Michael Scanlon, a former DeLay press secretary who later became a lobbying partner with Abramoff, pleaded guilty in November to conspiring to bribe public officials.

As part of the deal, Rudy pleaded guilty to the single conspiracy count and prosecutors agreed not to pursue other possible charges against him or his wife.

"The American public loses when officials and lobbyists conspire to buy and sell influence in such a corrupt and brazen manner. By his admission in open court today, Mr. Rudy paints a picture of Washington which the American public and law enforcement will simply not tolerate," said Alice Fisher, assistant attorney general in charge of the Justice Department's Criminal Division.

Rudy, a 39-year-old lawyer, answered U.S. District Judge Ellen Segal Huvelle's questions in a strong voice but seemed more subdued when she asked if he understood that he was pleading guilty to a felony and would lose some rights.

"Yes your honor," he said quietly.

His lawyer, Laura Ariane Miller, objected when Huvelle described the allegation that he took things "in exchange" for official acts. Instead, Miller said that her client sought and received gifts.

Rudy was allowed to remain free pending the sentencing. He and his lawyer left the courthouse without commenting to reporters.

While the court papers said nothing damaging about DeLay, prosecutors again alleged that Ney took action in exchange for trips, meals and tickets provided by Abramoff, Rudy and others.

Ney's lawyer, Mark Tuohey, said a guilty plea by Rudy doesn't change Ney's situation. The congressman continues to maintain his innocence. Tuohey said he hadn't seen the court papers filed Friday and couldn't comment in detail on them.


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