Lobbyist Indicted For Bank Fraud

Lobbyist Jack Abramoff, a key figure in investigations involving House Majority Leader Tom DeLay, was indicted Thursday by a federal grand jury on fraud charges arising from a 2000 deal to buy casino boats.

The indictment, returned by a grand jury in Fort Lauderdale, charges that Abramoff and an associate, 36-year-old New York businessman Adam Kidan, used a fake wire transfer to defraud two lenders out of some $60 million to finance the deal for SunCruz Casinos.

Abramoff and Kidan are charged with five counts of wire fraud and one count of conspiracy to commit wire fraud and mail fraud. Each count carries a penalty of up to 5 years in prison and a $250,000 fine.

Abramoff's Miami attorney, Neal Sonnett, said he had not been informed of any charges but said that Abramoff, 40, did not commit fraud. Abramoff had previously been notified that he was a target of the investigation.

Kidan's attorney in Florida, Martin Jaffe, said his client would surrender to authorities in Fort Lauderdale on Friday.

"I did nothing wrong and these allegations are totally unfounded," Kidan said in a statement.

The partners bought SunCruz, which runs a fleet of gambling boats, from entrepreneur Konstantinos "Gus" Boulis for $147 million in September 2000, but the deal soon fell apart. Amid bitter legal fighting over the sale, Boulis was shot to death in February 2001 what police called a hit. The Fort Lauderdale killing has never been solved.

Abramoff is also under federal investigation in Washington by a grand jury investigating whether he and a lobbying partner overcharged Indian tribes by millions of dollars for their work.

DeLay, R-Texas, was not mentioned in any lawsuits involved in the SunCruz deal.

DeLay has asked the House Ethics Committee to review allegations that Abramoff or his clients paid some of DeLay's overseas travel expenses. DeLay has denied knowing that the expenses were paid by Abramoff, whom he once described as "one of my closest and dearest friends."

The SunCruz fleet of 11 ships had 2,300 slot machines and 175 gaming tables and sailed from nine Florida ports and Myrtle Beach, S.C., to international waters. The company continues to operate gambling cruises under new ownership after emerging from bankruptcy.

Boulis also founded the Miami Subs restaurant chain.

In a separate development, a federal audit of a political fundraising committee founded by DeLay found that it failed to report more than $300,000 in debts owed to vendors and incorrectly paid for some committee activities with money from another DeLay-connected political committee.

The Federal Election Commission's report didn't indicate whether it would pursue enforcement action against Americans for a Republican Majority Political Action Committee (ARMPAC).

ARMPAC's executive director, Jim Ellis, was indicted in Texas in connection with a separate DeLay-connected committee, Texans for a Republican Majority. In that case, Ellis is charged with money laundering and accepting illegal political contributions for state legislative campaigns. DeLay has not been accused of any wrongdoing in the case.

The FEC's audit of ARMPAC was posted Thursday on the Web site of PoliticalMoneyLine.com, which tracks political fundraising and spending. The audit's contents were made available earlier to ARMPAC officials, who filed corrected reports on contributions and spending in May and June.

A spokesman for DeLay's office referred calls to ARMPAC. Attorneys for DeLay could not be immediately reached.