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December 21, 2005
The New York Times

Lobbyist Is Said to Discuss Plea and Testimony
By ANNE E. KORNBLUT

WASHINGTON, Dec. 20 - Jack Abramoff, the Republican lobbyist under
criminal investigation, has been discussing with prosecutors a deal that
would grant him a reduced sentence in exchange for testimony against
former political and business associates, people with detailed knowledge
of the case say.

Mr. Abramoff is believed to have extensive knowledge of what prosecutors
suspect is a wider pattern of corruption among lawmakers and Congressional
staff members. One participant in the case who insisted on anonymity
because of the sensitivity of the negotiations described him as a "unique
resource."

Other people involved in the case or who have been officially briefed on
it said the talks had reached a tense phase, with each side mindful of the
date Jan. 9, when Mr. Abramoff is scheduled to stand trial in Miami in a
separate prosecution.

What began as a limited inquiry into $82 million of Indian casino lobbying
by Mr. Abramoff and his closest partner, Michael Scanlon, has broadened
into a far-reaching corruption investigation of mainly Republican
lawmakers and aides suspected of accepting favors in exchange for
legislative work.

Prominent party officials, including the former House majority leader,
Representative Tom DeLay of Texas, are under scrutiny involving trips and
other gifts from Mr. Abramoff and his clients. The case has shaken the
Republican establishment, with the threat of testimony from Mr. Abramoff,
once a ubiquitous and well-connected Republican star, sowing anxiety
throughout the party ranks.

At issue is the complicated structure of the case against Mr. Abramoff. In
August, he was indicted by federal prosecutors in Miami on charges of
fraud stemming from his purchase of a fleet of casino boats in 2000. He
pleaded not guilty in that case, and his lawyers say they are preparing
him to stand trial. Mr. Abramoff has also been under investigation here in
connection with his lobbying. No charges have been brought against him in
that inquiry. The existence of what amounts to two separate but
overlapping investigations partly explains why the plea negotiations for
Mr. Abramoff have been so protracted and tough, said people with inside
knowledge of the case.

With the trial in Miami fast approaching, and coming on the heels of plea
agreements from Mr. Scanlon and another close associate of Mr. Abramoff,
pressure has mounted to reach his own agreement. Mr. Abramoff has also
told associates that he is broke, making the prospect of an extended jury
trial even less appealing.

Mr. Abramoff's lead defense lawyer, Abbe D. Lowell, said he would not
comment.

Several people involved in various aspects of the case agreed to be
interviewed as long as their names and affiliations were not made public.
Justice Department officials are prohibited from discussing continuing
cases as a matter of course. A spokesman for the department, Bryan Sierra,
declined to comment.

Although the Miami case is ostensibly separate from the Washington
inquiry, the overlapping elements include occasions when Mr. Abramoff
flexed his political muscle to enhance his business deal in Florida.

While he and a partner, Adam Kidan, were angling to buy the SunCruz boat
fleet in 2000, Mr. Abramoff had Mr. Scanlon persuade Representative Bob
Ney, Republican of Ohio, to insert negative comments about a business
rival of Mr. Abramoff into The Congressional Record, under a scheme
outlined in documents filed in Mr. Scanlon's criminal case.

The rival, Konstantinos Boulis, was murdered a short time later in Fort
Lauderdale, Fla., a twist that heightened the profile of the Miami case.

Florida prosecutors are also investigating corruption in that case,
focusing on Mr. Ney and his chief of staff at the time, Neil Volz,
according to people involved in the case. Mr. Volz reportedly agreed to
put negative remarks about Mr. Boulis in The Congressional Record, even
though Mr. Ney had no obvious reason to comment on Mr. Boulis.

Mr. Volz went on to work for Mr. Abramoff as a lobbyist.

Mr. Ney has said he was tricked by Mr. Scanlon and Mr. Abramoff into
participating, and no charges have been brought against him.

In his financial paperwork in the Miami deal, Mr. Abramoff listed Tony C.
Rudy, a deputy chief of staff to Mr. DeLay at the time, as a reference.

He also listed Representative Dana Rohrabacher, Republican of California,
who has since defended the decision to support the lobbyist.

Lawyers for Mr. Volz, Mr. Ney and Mr. Rudy did not return calls for
comment. A lawyer for Mr. DeLay declined to comment, but spokesmen for Mr.
DeLay have repeatedly said he had done nothing improper.

Such ties are only at the periphery of the investigations, according to
people briefed on the case. Mr. Scanlon, who worked on public affairs for
the SunCruz casinos and is familiar with the inner workings of many of Mr.
Abramoff's deals, is cooperating in the Miami case as well as in
Washington, his lawyer has said.

Prosecutors are also looking at how some former Congressional staff
members landed their lucrative lobbying positions and at the role the
wives of several lobbyists and lawmakers may have had in any influence
scheme, a piece of the puzzle that investigators have begun referring to
privately as the "wives' club."

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