GOP Still Hammering Away
June 8, 2006
Tomorrow, disgraced former Republican House Majority Leader Tom DeLay will finally leave Congress, but his legacy of corruption remains intact. In his wake, DeLay leaves a swirl of investigations into his role in a political money laundering scheme, the questionable lobbying and consulting activities of his wife, and the convictions and indictments of a number of his former aides.
"Despite Tom DeLay's departure, his legacy is alive and well in the Republican culture of corruption in Washington," said Democratic National Committee Press Secretary Stacie Paxton. "From the numerous investigations into his corrupt practices on Capitol Hill, to his closest advisers and lobbyist friends like Jack Abramoff and others being convicted, history will remember Tom DeLay more for lawbreaking than for lawmaking. Unlike the sham ethics package proposed by DeLay's successor, John Boehner, Democrats remain committed to honest and open government and reform measures that clean up Washington. Together, America can do better."
DeLay, Inc.
Lobbyist With Connections to Abramoff Opened Retirement Account For Tom DeLay's Wife. Edwin A. Buckham, formally DeLay's chief of staff, opened a retirement account in the late 1990s for Christine DeLay, the wife of Tom DeLay, and contributed thousands of dollars to it while also paying her a salary to work for him from her home in Texas. Buckham became a lobbyist at the end of 1998, shortly before the account was opened and the flow of funds began. Buckham's lobbying firm received hundreds of thousands of dollars in revenue from clients of indicted lobbyist Jack Abramoff. [Washington Post, 6/7/06]
- DeLay's ARMPAC Made Payments to Buckman, Christine DeLay. An arm of Delay's PAC, Americans for a Republican Majority (ARMPAC), paid Buckham a monthly consulting fee, and Buckham in turn employed its executive director as a consultant to his lobbying firm. From 2001 to Jan. 31, 2006, ARMPAC paid Christine DeLay, DeLay's daughter, Dani DeLay Ferro, and Ferro's Texas firm a total of $350,304 in political consulting fees and expenses. The Washington Post previously disclosed that, from 1998 to 2002, Buckham's lobbying firm, Alexander Strategy Group, paid Christine DeLay a monthly salary averaging between $3,200 and $3,400. Together with the retirement account worth about $25,000, the family's total financial benefits from entities at least partly controlled by Buckham exceeded $490,300. [Washington Post, 6/7/06]
Abramoff Pled Guilty To Corruption Charges, Agreed To Cooperate With Prosecutors. On January 3, 2006 former Republican mega-lobbyist Jack Abramoff pled guilty to conspiracy, mail fraud, and tax evasion. In his plea agreement Abramoff agreed to testify and cooperate with the ongoing federal corruption investigation centered around his lobbying activity. [United States of America v. Jack Abramoff; Plea Agreement, 3/1/06]
Abramoff Is DeLay's Right-Hand Man. Abramoff figured into DeLay's aspirations of making K Street lobbyists fit into the Republican Party political scheme. "Mr. Abramoff described the bond this way: 'We are the same politically and philosophically. Tom's goal is specific -- to keep Republicans in power and advance the conservative movement. I have Tom's goal precisely.' DeLay once called Abramoff "one of my closest and dearest friends, . . . your most able representative in Washington." [New York Times, 4/3/02; Washington Post, 5/5/05]
Abramoff Gave Nearly $40,000 To DeLay; DeLay-Abramoff Ties Go Back Over a Decade. According to the National Journal, "the ties between the powerful Texan and the former superlobbyist stretch back a decade and were forged and sustained by Abramoff's fundraising prowess and other lobbying stratagems. From 1997 through early 2004, Abramoff and his wife personally contributed $40,000 to DeLay's campaigns and his political action committee, ARMPAC, according to the Center for Responsive Politics. Further, at least two of Abramoff's American Indian tribe clients, the Louisiana Coushattas and the Saginaw Chippewas, donated $38,000 to ARMPAC." [National Journal, 2/26/05]
Scanlon Pled Guilty In Abramoff Investigation, Former Prosecutor Said Scanlon's Cooperation "Crucial" To Investigation. "Scanlon's cooperation is crucial to helping prosecutors prove that any favor to a lawmaker was in explicit exchange for an official act, said Leonard Garment, an attorney for President Nixon during Watergate. 'It is important because you have direct evidence from someone who was involved who can testify with respect to the payment of money or some other thing of value to the legislator,' Garment said. 'Scanlon presumably is in a position to say that it wasn't just ordinary assistance of a neutral or innocent character, that it was a quid pro quo, that if you vote a certain way or introduce a certain bill, I will pay you money or give you a brace of tickets to a Washington Redskins game. That is the way a case is proved.'" [Washington Post, 11/20/05]
Tony Rudy Pled Guilty in Abramoff Investigation; DeLay Named As Representative #2 In Plea. On March 31, 2006 former DeLay staffer and Abramoff associate, Tony Rudy pled guilty in connection with the continuing federal corruption investigation into Abramoff's lobbying practices. Rudy agreed to cooperate with the investigation, and his plea agreement contained numerous references to DeLay and the actions of his staff. [Factual Basis for the Plea of Tony C. Rudy, 3/31/06]
DeLay's Corrupt PACs
TRMPAC Indicted On Illegal Campaign Donations. "A grand jury has indicted a political action committee formed by U.S. House Majority Leader Tom DeLay and a Texas business group in connection with 2002 legislative campaign contributions. The five felony indictments against the two groups were made public Thursday...The charge against Texans for a Republican Majority alleged the committee illegally accepted a political contribution of $100,000 from the Alliance for Quality Nursing Home Care." On September 13, Jim Ellis and John Colyandro were personally indicted on charges of conspiracy to violate Texas campaign finance laws. [AP, 9/8/05; AP,9/13/05]
- TRMPAC Laundered $190,000 of Corporate Money Through the RNC. TRMPAC contributed $190,000 to the Republican National State Elections Committee on September 20, 2002 that included corporate money. Within two weeks, the RNSEC contributed the same amount back to TRMPAC targeted candidates. [CQ Weekly, 3/20/2004; San Antonio Express-News, 3/15/2004; Austin American-Statesman, 2/26/2004; FEC, 4/8/2004; Texas Ethics Commission, 4/8/2004]
DeLay Used Slush Fund To Stage Extravagant Parties for Republicans at 2000 Convention. During the convention DeLay's political action committee, Americans for a Republican Majority (ARMPAC), threw extravagant parties attended by convention delegates and corporate lobbyists. Federal law requires that these "leadership PACs" adhere to strict rules, requiring reporting of contributions and limiting contributions to a maximum of $5,000. DeLay used a legal loophole to establish a separate account that allowed him to raise and spend unlimited amounts of money. DeLay then used this ARMPAC convention account to fund the extravagancies that brought him favor with lobbyists and his fellow lawmakers. [Atlanta Journal Constitution, 8/4/00; Washington Post, 7/9/00]
- Republican House Majority Whip Roy Blunt's PAC received $150,000 Donation From DeLay's Slush Fund in 2000. According to Missouri Ethics Committee filings, Roy Blunt's Rely on Your Beliefs Committee (ROYB) received donations totaling $150,000 from Tom DeLay's campaign slush fund ARMPAC-Convention during the spring of 2000. While DeLay and Blunt were required to report how much the federal arms of their PAC's raised, these amorphous convention arms were free of any contribution limits or reporting requirements. [Missouri Ethics Committee Filings, 4/00; 7/00]
DeLay Established PAC In Alabama, Skirted Campaign Finance Laws. In 1998 DeLay registered a state committee of his PAC, Americans for a Republican Majority (ARMPAC), in Alabama. While the committee remained mostly inactive until 2002, DeLay used the committee four years after it was established to collect large amounts of corporate contributions, and then transferred the funds to various Texas groups. On October 15, 2002 ARMPAC transferred $25,000 to Texans for A Republican Majority (TRMPAC). DeLay and two of his former employees were indicted in 2005 for their actions in connection with TRMPAC. [AP, 1/18/06; Alabama Ethics Filings]
DeLay's Frequent Flier Program
Travel Scandal I: DeLay Traveled To Marianas Islands For Free In 1997. In December 1997, DeLay stayed free at a beachfront resort in the Commonwealth of the Northern Marianas Islands (CNMI) during the New Year's holiday. DeLay, who was the guest of honor at a New Year's Eve feast, also played two rounds of golf at the first-class Lao Loa Bay Golf Resort. [ABC News, 4/6/05]
Travel Scandal II: DeLay Participated in Trip to UK With Expenses Paid by Indian Tribe and Gambling Services Company. DeLay participated in a $70,000 expense-paid trip to London and Scotland in 2000 that sources said was indirectly financed in part by an Indian tribe and a gambling services company. While in Scotland DeLay golfed at the famous St. Andrews golf resort. [New York Times, 4/6/05]
Travel Scandal III: DeLay's 1997 Russian Trip Backed by Shady Business Interests. A six-day $57,238 trip to Moscow in 1997 by then-House Majority Whip Tom DeLay was underwritten by business interests lobbying in support of the Russian government. People who knew about the arrangements claim that the trip was arranged by lobbyists and funded by a mysterious company registered in the Bahamas, Chelsea Commercial Enterprises Ltd., that may have served as a front for Russian companies with ties to Russian security forces. Chelsea was coordinating the effort with a Russian oil and gas company -- Naftasib -- that has business ties with Russian security institutions. [Washington Post, 4/6/05; New York Times, 4/6/05]
DeLay's Tactics
Westar Admitted to Donating $250,000 to DeLay To Gain Access. "A Kansas energy company said it donated $25,000 so that it could attend a golf outing with U.S. House Majority Leader Tom DeLay to try to influence pending energy legislation. The admission from Topeka, Kan.-based Westar Energy marks the first time a company has publicly admitted to donating to DeLay's political action committee in exchange for a meeting and possible legislative help." [AP, 7/7/05]
- House Ethics Committee Admonished DeLay Over Westar Scandal. Citing regulations stating that legislators "may not solicit political donations 'that may create even an appearance' that they will lead to 'special treatment or special access to the member,'" DeLay was admonished by the House Ethics Committee. [Washington Post, 10/7/04]
House Ethics Committee Investigated Bribes For Votes. According to the New York Times, the House Ethics Committee conducted an "inquiry into whether lawmakers offered bribes or threats on Nov. 22 as they tried to persuade Rep. Nick Smith (R-Mich.) to vote for a Medicare prescription drug bill, which narrowly passed." Smith, who voted against the bill, said that GOP leaders offered "bribes and special deals," including a large contribution of "$100,000-plus" for his son's congressional campaign. [Washington Post, 2/6/04, New York Times, 2/10/04]
- DeLay Publicly Admonished By House Ethics Committee Over Medicare Bribes. After a six month investigation, "House Majority Leader Tom DeLay, admonished by the House ethics committee for using improper bargaining to try to persuade a fellow Republican to change his vote on a Medicare prescription drug bill, could face another investigation by the panel." [AP, 10/1/04]
DeLay Continued With Gingrich's K Street Project Despite Admonishment. In 2001, DeLay pushed for the Electronics Industry Association to hire former Rep. Bill Paxon (R-N.Y.) instead of former Rep. Dave McCurdy (D-Okla.). The plan was part of DeLay's push to load K Street power lobbying firms with Republicans. This year, DeLay re-launched his K Street Project. "After privately fuming for years, DeLay sat down with a group of his top lieutenants two weeks ago to figure out how to get GOP lobbyists to contribute the maximum $4,000 allowable to vulnerable Republican candidates, as well as giving the $25,000 limit to the National Republican Congressional Committee." [Roll Call, 3/12/01, Roll Call, 2/11/04]
- DeLay Admonished By House Ethics Committee For Involvement In K Street Project. According to Roll Call, "DeLay's endeavor to force the Electronics Industry Association to back off its choice resulted in unwanted publicity and a formal admonishment of the Texas Republican by the House Ethics Committee." DeLay continues to try to frontload K Street with GOP lobbyists even though he was admonished by the House Ethics Committee in 2001 for doing just that. [Roll Call, 3/12/01, Roll Call, 2/11/04]
