Observer Staff

1/11/2006 12:00:00 AM

WASHINGTON (AP)-Embattled lobbyist Jack Abramoff pleaded guilty recently to federal charges of conspiracy, tax evasion and mail fraud, agreeing to cooperate in an influence-peddling investigation that threatens powerful members of Congress.

In a heavily scripted court appearance, Abramoff agreed with U.S. District Court Judge Ellen Huvelle when she said he had engaged in a conspiracy involving "corruption of public officials." The lobbyist also agreed when she said he and others had engaged in a scheme to provide campaign contributions, trips and other items "in exchange for certain official acts."

"Words will not ever be able to express my sorrow and my profound regret for all my actions and mistakes," Abramoff said, addressing the judge. "I hope I can merit forgiveness from the Almighty and those I've wronged or caused to suffer."

To each of the three charges, Abramoff said, "I plead guilty, your honor." Huvelle and lawyers in the case said Abramoff had agreed to make an estimated $25 million in restitution to his victims and pay $1.7 million to the Internal Revenue Service for taxes he evaded. As is typically the case in such pleadings, what happened in the courtroom on Jan. 3 was arranged in advance between lawyers for the defendant and the prosecutors.

According to the plea agreement, prosecutors will recommend a sentence of 9 1/2 to 11 years, providing he cooperates with federal prosecutors in a wide-ranging corruption investigation that is believed to be focusing on as many as 20 members of Congress and aides.

Assistant Attorney General Alice S. Fisher said the Justice Department will pursue the investigation "wherever it goes."

"We're going to expend the resources to make sure people know that government is not for sale," she said at a news conference.

Abramoff's activities went "far beyond lawful lobbying to the illegal practice of paying for official acts," she said. "The Justice Department will aggressively investigate and prosecute these types of cases which have a devastating impact on the public's trust of government."

Abramoff's travels with former House Majority Leader Tom DeLay are already under criminal investigation. The lobbyist's interactions with the Texas Republican's congressional office frequently came around the time of campaign donations, golf outings or other trips provided or arranged by Abramoff for DeLay and other lawmakers. In all, DeLay received at least $57,000 in political contributions from Abramoff, his lobbying associates or his Tribal clients between 2001 and 2004.

Court papers released Jan. 3 also detailed lavish gifts and contributions that Abramoff gave an unnamed House member, identified elsewhere as Rep. Bob Ney, R-Ohio, chairman of the House Administration Committee, in return for Ney's agreement to use his office to aid Abramoff clients.

Abramoff also pleaded guilty in Florida on Jan. 4 to two of the six charges in a federal indictment, according to his lawyer there, Neal Sonnett.

Abramoff attorney Abbe Lowell said that 18 months ago Abramoff made contact with prosecutors "to admit his wrongdoing and to seek forgiveness from those he has wronged. He intends to continue to work with the Justice Department and others to fully resolve all matters of interest, to provide restitution to anyone he has harmed, and to seek absolution from all."

Prosecutors say Abramoff and Scanlon conspired to defraud Indian Tribes in Louisiana, Michigan, Mississippi, New Mexico and Texas of millions of dollars. Abramoff reaped roughly $20 million in hidden profits from the scheme, according to the information. Lobbying partner Michael Scanlon pleaded guilty in November.

Pressure had been intensifying on Abramoff to strike a deal with prosecutors since another former partner, Adam Kidan, pleaded guilt to fraud and conspiracy in connection with the 2000 SunCruz boat deal in Florida.

The continuing saga of Abramoff's legal problems has caused anxiety at high levels in Washington, in both the Republican and Democratic parties.

For months, prosecutors in Washington have focused on whether Abramoff defrauded his Indian Tribal clients of millions of dollars and used improper influence on members of Congress.

In a five-year span ending in early 2004, Tribes represented by the lobbyist contributed millions of dollars in casino income to congressional campaigns, often routing the money through political action committees for conservative lawmakers who opposed gambling.

In Florida, Abramoff and Kidan were indicted in August on charges of conspiracy, wire fraud and mail fraud in connection with their purchase of the SunCruz fleet for $147.5 million from Miami businessman Konstantinos "Gus" Boulis.

Prosecutors said the pair faked a $23 million wire transfer to make it appear that they were making a significant contribution of their own money into the deal. Based on that transfer, lenders Foothill Capital Corp. and Citadel Equity Fund Ltd. agreed to provide $60 million in financing for the purchase.

Kidan pleaded guilty Dec. 15 to one count of conspiracy and one count of wire fraud. He faces a maximum of 10 years in prison and up to $500,000 in fines at sentencing scheduled for March 1.

The 46-year-old Abramoff admitted his guilt to the charges of conspiracy and wire fraud connected to his purchase of a gambling boat fleet.

"Guilty, your honor," Abramoff somberly told U.S. District Judge Paul C. Huck, dressed in a dark double-breasted suit and tan baseball cap. When the hearing was over, he swiftly and silently ducked out a side courthouse door, into a waiting car.

The plea agreement calls for a maximum sentence of just more than seven years, but the sentence could be reduced if he cooperates fully. It would also run simultaneously with whatever sentence is imposed in the Washington corruption case.

Abramoff "will face the consequences of his actions," said U.S. Attorney R. Alexander Acosta after the plea hearing. "Frauds like that committed here are not victimless. They affect real people and impact the integrity of our financial institutions."

Although both defendants in the SunCruz fraud have pleaded guilty, Acosta said the investigation remains open. He said there are links between the SunCruz purchase and some of the congressional corruption allegations, but would not elaborate.

The Miami businessman who had sold SunCruz to Abramoff and Kidan, Konstantinos "Gus" Boulis, was later murdered in a mob-style hit. Three men were charged last fall and have pleaded not guilty. Both Abramoff and Kidan have denied involvement in the slaying.

Abramoff won't be going to jail right away, though a tentative sentencing date was set for March 16. He probably won't be sentenced for several months because he has to cooperate with the government corruption investigation. And even then, he'll probably be permitted to surrender.

A copy of the eight-page plea agreement, obtained by The Associated Press before the hearing, requires that Abramoff testify before any grand jury or court proceeding that prosecutors request and provide any documents they might want.

In return, the agreement says, the government will not further prosecute the defendant for anything he discloses "in debriefing sessions with attorneys and agents of the United States."