The Pimping of the President

By Lou Dubose, Texas Observer. Posted June 9, 2005.

Four months after he took the oath of office in 2001, President George W. Bush was the attraction, and the White House the venue, for a fundraiser organized by the alleged perpetrator of the largest billing fraud in the history of corporate lobbying. In May 2001, Jack Abramoff's lobbying client book was worth $4.1 million in annual billing for the Greenberg Traurig law firm. He was a friend of Bush advisor Karl Rove. He was a Bush "Pioneer," delivering at least $100,000 in bundled contributions to the 2000 campaign.

He had just concluded his work on the Bush Transition Team as an advisor to the Department of the Interior. He had sent his personal assistant Susan Ralston to the White House to work as Rove's personal assistant. He was a close friend, advisor, and high-dollar fundraiser for the most powerful man in Congress, Tom DeLay. Abramoff was so closely tied to the Bush Administration that he could, and did, charge two of his clients $25,000 for a White House lunch date and a meeting with the President. From the same two clients he took to the White House in May 2001, Abramoff also obtained $2.5 million in contributions for a non-profit foundation he and his wife operated.

Abramoff's White House guests were the chiefs of two of the six casino-rich Indian tribes he and his partner Mike Scanlon ultimately billed $82 million for services tribal leaders now claim were never performed or were improperly performed. Together the six tribes would make $10 million in political contributions, at Abramoff's direction, almost all of it to Republican campaigns of his choosing. On May 9, 2001, when he ushered the two tribal chiefs into the White House to meet the President, The Washington Post story that would end his lobbying career and begin two Senate Committee investigations was three years away. (When the Post story broke in February 2004, however, Abramoff and Scanlon, a former Tom DeLay press aide, were already targets of a U.S. Attorney's investigation in Washington.)

Abramoff brought the Coushatta and Choctaw chiefs to Washington at the request of Grover Norquist. Norquist is founder and director of Americans for Tax Reform, the advocacy group committed to slashing taxes until the federal government is so small you "can drown it in the bathtub." Norquist started ATR in 1985. His power increased exponentially in 1994, when Republicans took control of the House of Representatives and he collaborated with then-Majority Whip Tom DeLay to launch the "K Street Project"--a coordinated campaign to compel lobbyists to contribute only to Republican candidates and ultimately to hire only Republicans. Like Abramoff and Rove, Norquist considered George Bush's victory over Al Gore the culmination of a project the three Washington insiders started 30 years ago as national leaders of the College Republicans.

Since the Post's Susan Schmidt broke the Jack Abramoff story, the media has focused on the stunning $82 million Abramoff and Scanlon billed six tribes for lobbying and public relations work. Far less attention has been paid to the political contributions, by Abramoff's account $10 million, made by the six tribes. That piece of the story involves the K Street Project, which moves the money of corporate lobbyists and their clients into the accounts of Republican candidates, PACs, and issue advocacy groups.

Republican Campaign Accounts

Abramoff advised tribal leaders that the contributions were the cost of doing business in Washington, where he could protect them from other tribes trying to open casinos to compete with those that already had them. He sent orders for the checks to be cut, designating each recipient. On March 6, 2002, for example, Coushatta Tribal Council Chair Lovelin Poncho followed Abramoff's orders and disbursed $336,300 in tribal funds, according to tribal accounting ledgers obtained by the Observer.

The Coushattas, a southwest Louisiana tribe of 837 members, operate a casino that does an estimated $300 million in annual business. The $32 million they paid Abramoff and Scanlon makes the tribe the largest victim of the fraud their lawyers now allege in a lawsuit filed by Texas plaintiff's firm Provost Umphrey. The tribe also contributed what tribal council member David Sickey said was probably "many millions" of dollars to political causes and charities designated by Abramoff.

Since we first reported the White House ATR fundraiser and the $1 million contribution to the Capital Athletic Foundation, the Coushattas, speaking through Austin attorneys at Hance, Scarborough, Wright, Ginsburg & Brusilow, and through Louisiana political consultant Roy Fletcher, have vociferously denied that tribal Chairman Poncho visited the White House after contributing $25,000 to ATR. They also denied the $1 million contribution to Abramoff's foundation.

Recently the story has changed. Or at least the version told by the majority that controls the council has begun to change. Two minority members of the five-seat council have pointed to the pay-to-play meeting with President Bush and the $1 million contribution to Abramoff as examples of the council's financial mismanagement. One of the two members of the minority faction, David Sickey, has regularly made himself available to the press. Normally, press inquiries to the council majority are answered by Hance Scarborough, by Roy Fletcher, or occasionally by sources close to the council majority.

Lou Dubose is a former Observer editor and co-author of "The Hammer: Tom DeLay, God, Money and the Rise of the Republican Congress." This story was written with support from the Fund for Constitutional Government.

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