House Leader Tom DeLay Indicted

(CBS/AP)  A Texas grand jury on Wednesday charged House Majority Leader Tom DeLay, R-Texas, and two political associates with conspiracy in a scheme to illegally funnel corporate campaign contributions to state candidates.

DeLay, 58, announced after the indictment that he was temporarily relinquishing his leadership post, in accordance with House Republican rules.

"I have notified the Speaker that I will temporarily step aside from my position as majority leader pursuant to rules of the House Republican Conference and the actions of the Travis County District Attorney today," DeLay said in a statement.
DeLay retains his seat representing Texas' 22nd congressional district.

DeLay was accused of a criminal conspiracy along with two associates, John Colyandro, former executive director of a Texas political action committee formed by DeLay, and Jim Ellis, who heads DeLay's national political committee.

Criminal conspiracy is a state felony punishable by six months to two years in a state jail and a fine of up to $10,000.

The White House said President Bush regards DeLay as a good ally and leader, CBS News correspondent Mark Knoller reports.

"I think the president's view is that we need to let the legal process work," said White House press secretary Scott McClellan.

DeLay, arguably the most powerful Republican in Congress, has denied any wrongdoing in the case and accused the Democratic prosecutor of pursuing a political agenda.

"These charges have no basis in the facts or the law. This is just another example of [district attorney] Ronnie Earle misusing his office for partisan vendettas," said DeLay spokesman Kevin Madden.

GOP congressional officials said Speaker Dennis Hastert will recommend that Rep. David Dreier of California temporarily step into DeLay's leadership post.

Some of the duties may go to the GOP whip, Rep. Roy Blunt of Missouri. The Republican rank and file may meet as early as Wednesday night to act on Hastert's recommendation.

The indictment accused DeLay of a conspiracy to "knowingly make a political contribution" in violation of Texas law outlawing corporate contributions. It alleged that DeLay's Texans for a Republican Majority political action committee accepted $155,000 from companies, including Sears Roebuck, and placed the money in an account.

The PAC then wrote a $190,000 check to an arm of the Republican National Committee and provided the committee a document with the names of Texas State House candidates and the amounts they were supposed to received in donations.

The indictment included a copy of the check.

"The defendants entered into an agreement with each other or with TRMPAC (Texans for a Republican Majority Political Action Committee) to make a political contribution in violation of the Texas election code," says the four-page indictment. "The contribution was made directly to the Republican National Committee within 60 days of a general election."

The indictment against the second-ranking, and most assertive Republican leader came on the final day of the grand jury's term. It followed earlier indictments of a state political action committee founded by DeLay and three of his political associates.

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