See related post with links to archived information -
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=1878817&mesg_id=1878817http://www.americanprogressaction.org/atf/cf/{65464111-BB20-4C7D-B1C9-0B033DD31B63}/home11.jpg
http://www.americanprogressaction.org/site/pp.asp?c=klLWJcP7H&b=100480#2The Fantastic Four: Abramoff, Scanlon, Reed and DeLay
In his opening statement from yesterday's Senate Indian Affairs committee hearings, Chairman John McCain (R-AZ) stated, "From our first hearing emerged the utter contempt that Mr. Abramoff and Mr. Scanlon held for their tribal clients. In the second, Mr. Abramoff's and Mr. Scanlon's insatiable greed came to the fore. Today's hearing is about more than contempt, even more than greed; it's simply and sadly a tale of betrayal." Sen. McCain's summation encapsulates how Tom DeLay ally and uber-lobbyist Jack Abramoff worked "separately and in concert with
Michael Scanlon" to bilk six Indian tribes out of millions of dollars. Yesterday's hearings -- the third in a series of investigations by the committee -- divulged even more details as to the underhanded scheming perpetrated by the duo. So astounding were the revelations that committee vice-chairman Sen. Byron Dorgan (D-ND), who has served over two decades in the Senate, described it as "a disgusting story of greed unlike any that I have seen in my service in Congress."
THE SCANLON SHAKEDOWN: While working as a lobbyist for the Choctaw Indians, Jack Abramoff directed the tribe "to hire Scanlon for consulting work." According to the committee's investigations, "the two presented Mr. Scanlon as an independent operator. Never did they confess their secret partnership to the tribe. Never did they reveal that, together, they set prices to account for Mr. Abramoff's stake in the profits. Never did they even hint that the two devoted a small fraction of the payments to the uses intended by the tribe -- pocketing the rest." And when the tribes did start to ask questions, the two claimed that "the sums Mr. Scanlon paid Mr. Abramoff were merely referral fees." McCain described the explanation as one that "strains credulity."
THE HIGH FIVE HEIST: In a scheme that the duo termed "gimme-five," Scanlon and Abramoff allegedly " tribal payments while skimming off a share of the proceeds for themselves." A 2001 e-mail exchange obtained by the committee begins with Abramoff writing, "So let me see. That's $700,000 each for us and $100,000 for the effort. Seriously, what do you think we can score?" Scanlon replies, "If you think they're good for it, then I can slide you $350,000 with no sweat...But that's not all. There will be more when the dust settles. And if we get to 4, 4.6, much, much more. I think the $350,000 strategy is the best way to go. It's good on the 'give me five' front." In that same year, the duo charged the tribe over $7 million for projects; "Scanlon spent $1.2 million on lobbying work, and he and Abramoff split the remaining $6.5 million." All told, of the approximately $15 million that the Choctaws paid to Scanlon's companies, "Scanlon gave Abramoff a $5 million cut."
THE PADDED BILLS PLUNDER: Another fraud scheme allegedly employed by the duo was the padding of bills as well as the "fraudulent billing of fees and expenses." Though the Choctaws "never agreed to pay a flat fee per month," evidence from committee hearings make it "now clear that Mr. Abramoff consistently manipulated the bills...in order to have them approach a minimal billing target of fees and expenses of between $135, 000 and $150,000. When the actual hours of work completed were insufficient to approach that target, Mr. Abramoff routinely directed that the bills be padded and pumped up." One e-mail has Abramoff instructing an associate to "'add 60 hours' for him and to 'pump up Scanlon, Todd and you, give Amy some hours if you have to.'" Additionally, Abramoff and his team left the Choctaws footing the bill for such personal expenses as "nonbusiness meals at Mr. Abramoff's restaurant," "club dues and other items hidden from the tribe."
much more.....