1. DeLay Now Indicted For Money Laundering

2. Grand Jury Indicts DeLay On New Charge

3. Indictment Not Only Cloud Hovering Over DeLay

1. DeLay Now Indicted for Money Laundering

By April Castro

From: http://www.truthout.org/docs_2005/100305P.shtml

The Associated Press

Monday 03 October 2005

Grand Jury indicts former House leader for money laundering.

Austin, Texas - A Texas grand jury indicted Rep. Tom DeLay on a new charge of money laundering Monday, less than a week after another grand jury leveled a conspiracy charge that forced DeLay to temporarily step down as House majority leader.

Both indictments accuse DeLay and two political associates of conspiring to get around a state ban on corporate campaign contributions by funneling the money through a political action committee to the Republican National Committee in Washington.

The RNC then sent back like amounts to distribute to Texas candidates in 2002, the indictment alleges.

The new indictment came hours after DeLay's attorneys filed a request to dismiss the case. That request argued that the conspiracy charge was based on a law that was not effective until 2003, the year after the alleged money transfers.

The judge who will preside in DeLay's case was out of the country on vacation and could not rule on the request. Other state district judges declined to rule on the request in his place, said Colleen Davis, a law clerk to Austin attorney Bill White, also represents DeLay.

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2. Grand Jury Indicts DeLay on New Charge

In this photo provided by FOX News, Rep. Tom DeLay, R-Texas, appears during the taping of 'FOX News Sunday' at the FOX studios in Washington, Sunday, Oct. 2, 2005. DeLay pledged on Sunday to take an active role in the Republican leadership despite being forced out as majority leader because of criminal conspiracy charges in Texas (AP Photo/FOX News Sunday, Freddie Lee) MANDATORY CREDIT: FREDDIE LEE, FOX NEWS SUNDAY

AP - 18 minutes ago

AUSTIN, Texas - A Texas grand jury indicted Rep. Tom DeLay on a new charge of money laundering Monday, less than a week after another grand jury leveled a conspiracy charge that forced DeLay to temporarily step down as House majority leader. Both indictments accuse DeLay and two political associates of conspiring to get around a state ban on corporate campaign contributions by funneling the money through a political action committee to the Republican National Committee in Washington.

DeLay defends actions * 'Brass-Knuckled Conservative' CNN via Y! News * 'The Hammer' at NPR | DeLay Profile at Wikipedia * Discuss

Off the Wires

DeLay indicted on new charge Reuters - 1 hour, 5 minutes ago

Grand Jury Indicts DeLay on New Charge AP - 1 hour, 31 minutes ago

House GOP Drops Offshore Drilling Plans AP - 1 hour, 50 minutes ago

US senators prepare in case of asbestos vote Reuters - 2 hours, 25 minutes ago

DeLay Vows Return to House Leadership Role AP - Mon Oct 3, 2:20 PM ET

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3. Indictment Not Only Cloud Hovering Over DeLay

An investigation into his dealings with a lobbyist has big implications

By Michael Hedges

From: http://www.chron.com/cs/CDA/ssistory.mpl/front/3378292

Copyright 2005 Houston Chronicle Washington Bureau

Biography source: Associated Press. Video courtesy Associated Press and KHOU-TV; free Real Player or Windows Media Player required.

WASHINGTON - The prospects of Tom DeLay ever returning to a leadership position in Congress may be jeopardized more by scandals rooted in Washington than this week's indictment in Texas.

Particularly worrisome for DeLay are a federal investigation into the dealings of Jack Abramoff, a lobbyist who had close ties to the Sugar Land Republican, and a House ethics committee examination of DeLay's trips and any other activities with Abramoff.

"Either being linked to Abramoff in a federal criminal indictment (of Abramoff) or a finding against him by the ethics committee would be hugely damaging," said Thomas Mann, a senior political analyst with the liberal-leaning Brookings Institution.

Larry Noble, a former Federal Elections Commission lawyer, said the accumulation of ethics concerns surrounding DeLay could put him at a "tipping point" where even Republican loyalists feel the party is better served with him relegated to the sidelines.

Rallying point

The grand jury indictment of DeLay was announced last week by Travis County District Attorney Ronnie Earle. DeLay was charged with criminal conspiracy in connection with the funneling of corporate campaign contributions to candidates for the Texas Legislature.

Noble said that if the Earle prosecution falls through, it could provide a rallying point for DeLay, who was forced to step down as House majority leader.

"The Earle indictment is a wild card," Noble said. "DeLay was already facing lots of ethical questions. But if this collapses, he can claim all his critics are politically motivated."

DeLay has called Earle a political zealot. The Travis County district attorney is an elected Democrat who has prosecuted officials from both parties.

As for the lingering questions about trips DeLay took with Abramoff, spokesman Kevin Madden said Friday, "Mr. DeLay continues to urge the ethics committee to look into this because when that happens he will be exonerated."

Abramoff was indicted in August in a case involving the takeover of a casino cruise ship company called SunCruz from a South Floridian named Konstantinos "Gus" Boulis, who later became the victim of a mob-style murder.

The Florida case has no apparent connection to DeLay. But the Florida fraud and conspiracy charges against Abramoff, brought by a federal grand jury, could ratchet up the pressure on Abramoff and others to testify in another federal probe that is examining Abramoff's lobbying efforts on behalf of Indian gambling interests.

Questions about trips

If Abramoff offers his unqualified cooperation, he could have plenty to say about a series of extravagant trips he took with DeLay that have raised questions about whether the lawmaker violated rules covering gifts from lobbyists.

One of the people who reportedly has been talking with federal investigators probing Abramoff is Michael Scanlon, a former DeLay aide who later became a business associate of Abramoff in deals that led to the alleged bilking of $82 million from the Indian clients.

Scanlon could be a bridge between the SunCruz case and the Abramoff investigation in Washington, because he did public relations work for the Florida company and for Abramoff's Indian clients. He also could be a source of information on whether DeLay was improperly influenced by trips, gifts or campaign contributions.

DeLay has denied wrongdoing.

Scanlon and his attorney of record could not be reached for comment.

The Washington-based federal probe appears to be reaching a critical phase.

Last month, David Safavian, former head of procurement policy at the Office of Management and Budget, was charged in connection with lying about helping Abramoff get government contracts and about a golf trip he took with Abramoff to Scotland in 2002 — two years after Abramoff's similar trip to Scotland with DeLay.

"There is clearly a wide ranging, aggressive investigation of Abramoff at the Justice Department, and anyone in his shoes would have to be concerned," said Joseph diGenova, a former U.S. attorney in Washington.

Abramoff had no comment on the federal probe, a spokesman said.

Preliminary investigation

Abramoff's legal problems might give DeLay a temporary reprieve from appearing as a witness before the House ethics committee. Congress typically defers to federal prosecutors if calling a witness could taint a criminal investigation, experts said.

The leaders of the ethics committee, Reps. Doc Hastings, R-Wash., and Alan Mollohan, D-W.Va., hope to finish hiring a staff by early this month.

After that, the staff would have to conduct a preliminary investigation expected to run at least through December. That would likely mean DeLay would enter the election year of 2006 with the ethics committee poised to probe whether he acted improperly in his dealings with Abramoff.

michael.hedges@chron.com

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