Indianz.Com. In Print.
URL: http://www.indianz.com/News/2004/005415.asp

High-priced lobbyist scam linked to lawmakers
Thursday, November 18, 2004

Public relations consultant Michael Scanlon refuses to answer questions at Senate Indian Affairs Committee hearing. Photo © NSM. Sen. Ben Nighthorse Campbell (R-Colorado) talks with Albert Alvidrez and Carlos Hisa (r) of the Tigua Tribe of Texas after hearing. Photo © NSM.

A Senate committee's investigation into two Washington insiders accused of bilking tribes of more than $66 million spread to members of Congress on Wednesday as a Texas tribe told of a costly political campaign aimed at reopening its shuttered casino.

Before a packed hearing room, representatives of the Tigua Tribe said they enlisted lobbyist Jack Abramoff and public relations consultant Michael Scanlon in early 2002. At the time, Republican lawmakers and the state's Republican attorney general were seeking the immediate closure of the tribe's Class III gaming facility in El Paso.

Carlos Hisa, the tribe's lieutenant governor, and Marc Schwartz, the tribe's longtime consultant, told the Senate Indian Affairs Committee that Abramoff and Scanlon hatched a plan to keep the casino going. At a cost of $4.2 million, whittled down from an initial figure of $5.7 million, Operation Open Doors would ensure the tribe could continue gaming without interference from the state, they testified.

Key to the plan were Sen. Chris Dodd (D-Connecticut) and Rep. Bob Ney (R-Ohio), who were in charge of the 2002 Help America Vote Act at the time. Hisa and Schwartz said they were told the two lawmakers would insert language into the bill to benefit the tribe.

Dodd had been "greased," Schwartz told the committee. Ney was just one of many Republicans to whom Abramoff claimed closed ties, boasting of influence that went "all the way to the president of the United States," Hisa testified.

But the costly gamble unraveled as the months dragged on and the tribe was forced to lay off more than 700 employees when the 5th Circuit Court of Appeals ordered the casino closed. Yet Abramoff and Scanlon repeatedly assured the tribe the bill would pass with the pro-tribal language, Hisa and Schwartz said.

It finally became clear nothing was going to happen when President Bush signed the legislation in October 2002, with Dodd and Ney at his side. "You can only imagine the sheer disappointment we felt about these events," Schwartz said.

Abramoff blamed Dodd for the failure of the $4.2 million plan, Schwartz testified. Dodd, he said, "went back on his word" and removed the language from the final bill.

Ney also blamed Dodd, according to Schwarz and Hisa. During a conference call with tribal leaders shortly before the bill's passage, Ney expressed outrage, Schwarz said.

But Dodd denied any knowledge of the proposal yesterday. He issued a statement that was read by Sen. Byron Dorgan (D-North Dakota), the incoming vice-chairman of the committee, during the hearing.

"I don't know Jack Abramoff of Mike Scanlon," the statement said. "So any representations they might have made without my knowledge regarding me and efforts at recognition of the Tigua Tribe are categorically wrong and false."

According to Dodd, Ney's staff and Lottie Shackelford, the vice-chair of the Democratic National Committee, approached his office "during the waning hours of negotiations over the HAVA legislation" about including the Tiguas in the bill. "The suggestion was summarily rejected," the statement said.

But Ney responded that he only agreed to the provision because Abramoff assured him Dodd was behind it. "Jack Abramoff repeatedly lied to advance his own financial interests," Ney said in a statement. "I too was misled."

Hisa and Schwarz further testified that they now believe Abramoff and Scanlon helped generate public support to close the casino by working with Christian conservative activist Ralph Reed, a personal friend of Abramoff. The tribe knew Reed was leading opposition in Texas but didn't know their paid lobbyists were behind it as well.

"A rattlesnake will warn you before it strikes," Hisa said at the hearing. "They did everything behind our backs."

Scanlon appeared before the committee yesterday but did not testify, invoking his Fifth Amendment right against self-incrimination. Abramoff did the same during a late-September hearing.

Retiring Sen. Ben Nighthorse Campbell (R-Colorado) said he was personally offended by Scanlon's actions. "For 400 years, people have been cheating Indian tribes, so you're not the first one," Campbell told him. "You're the problem, buddy, with what is happening to American Indians."

Sen. John McCain (R-Arizona), the incoming chairman of the committee, said the investigation into Abramoff and Scanlon will continue. "I pledge," he said, "that we will not stop until the complete truth is told."

Campbell, who steps down in January, suggested the committee look into the $300,000 in political donations Abramoff urged the Tiguas to make. He wanted to know whether Abramoff and Scanlon are connected in any way to the groups that received the money.

After the hearing, Campbell said the committee was proceeding at a deliberate pace as to not step on the Department of Justice's investigation into the two men. A grand jury has been convened at least once and has subpoenaed information from the Coushatta Tribe of Louisiana, another tribe involved. Campbell did not know the status of that investigation.

Campbell said he understood why Scanlon wouldn't want to answer questions about the scandal but couldn't figure out why Scanlon and Abramoff won't explain why they treated their clients with contempt. "I was amazed at the lack of remorse," he told reporters.

Relevant Links:
Speaking Rock Casino, Tigua Tribe - http://www.speakingrockcasino.com

From the Indianz.Com Archive:
Supreme Court won't review Texas casino case (October 8, 2002) | Texas battles against tribes questioned (June 19, 2002) | Supreme Court lets Tigua Tribe be sued (June 5, 2001) | Tigua Tribe loses gaming appeal (November 2, 2000)

Related Stories:
Coushatta Tribe sues ex-lobbyists for $32M (11/17)
Tigua Tribe to testify at Senate lobbying hearing (11/16)
Abramoff's assets frozen in employee case (11/15)
Vitter 'conned' by group opposing tribe (11/12)
GOP critic of McCain received tribal donations (11/08)
Author: Abramoff, Scanlon likely to be indicted (10/28)
Senate panel asks Coushatta Tribe for tapes (10/27)
Ralph Reed paid $4.1M to oppose tribes (10/26)
Two more lawyers linked to lobbyist scandal (10/21)
Online Chat: Abramoff 'close friend' of DeLay (10/20)
Christian Coalition still after Poarch Creeks (10/19)
Congressman denies knowing of tribe's backing (10/18)
Opinion: Lobbyist scandal goes all the way to Bush (10/15)
Congressman's anti-gaming push backed by tribe (10/15)
Tigua Tribe mum on Washington lobbyists (10/12)
House Resources asked to investigate lobbyists (10/8)
Another tribe considers lawsuit against lobbyists (10/7)
DeLay rebuked yet again for flaunting influence (10/7)
Coushatta Tribe to sue lobbyists for $32M (10/4)
Lobbyist scandal reaches to top levels of GOP (10/4)
Choctaw Tribe's lobbying documents kept secret (10/4)
Documents detail lobbyists' role in tribal elections (10/4)
Salon: Tom DeLay allowed tribes to be 'slickered' (10/4)
Pueblo leader says lobbyists' high fees not worth it (10/1)
Texas AG asked to investigate Abramoff, Scanlon (10/1)
DeLay rebuked for trading influence on House floor (10/1)
DeLay rebuked for trading influence on House floor (10/1)
Ex-tribal lobbyists slammed in Senate hearing (9/30)
Abramoff mum at hearing while Scanlon a no-show (9/30)
Column: Lobbyists lurked in 'cesspool of greed' (9/30)
Washington lobbyists called before Senate panel (9/29)
Editorial: Send lobbyist hogs to the slaughterhouse (9/29)
Tigua Tribe outraged over being played as 'moronic' (9/28)
Tribes told to donate to lobbyists' foundation (9/28)
Editorial: Actions of tribal lobbyists 'loathsome' (9/28)
Lobbyists worked for, against 'moronic' Tiguas (9/27)
Group opposing Poarch Creeks tied to tribal lobbyists (09/16)
Coushattas used lobbyists to spy on tribes, critics (09/13)
Bush strategist now knows source of tribal funds (09/01)
Bush strategist claims no knowledge of funds (8/31)
Bush-GOP strategist admits taking tribal money (8/30)
Senate hearing on tribal lobbying probe set (8/26)
Coushatta member threatened over recall effort (08/09)
Coushatta Tribe's lobbying records subpoenaed (07/23)
Hearing on high lobbying fees expected in September (07/16)
GOP strategist denies secretly taking tribal money (7/15)
Tribal money secretly funneled to GOP strategist (06/25)
Busy Indian Affairs Committee hits snag on big issues (06/17)
Indian Affairs Committee activity this week (6/15)
Saginaw Chippewa leader who paid lobbyists ousted (06/04)
Indian Country awaits outcome of lobbying probe (05/18)
Tribal chairman says $120K fee to Abramoff worth it (05/18)
Republican governors report biggest donor in 2002 (05/04)
Saginaw Chippewa Tribe wonders where $14M went (04/20)
McCain demands documents from lobbyist, PR exec (04/12)
Coushatta treasurer accuses NIGC of lax oversight (04/12)
Choctaw chief Martin defends embattled GOP lobbyist (04/09)
McCain pushing Choctaw tribe to cooperate with probe (4/8)
Coushatta leaders used tribal money to pay lobbyists (4/8)
Coushatta Tribe paid $32M to lobbyist Jack Abramoff (4/6)
McCain aggressive in pursuing lobbyist records (4/5)
McCain demands documents for tribal lobbyist's work (3/30)
Embattled lobbyist signs deal with another firm (03/25)
Embattled tribal lobbyist gave to Conn. Congressman (03/10)
Saginaw Chippewa Tribe hires new lobbying firm (3/9)
McCain begins investigation into high tribal fees (3/4)
Pueblo governor says $1M fee to PR firm not worth it (3/3)
McCain calls for investigation into tribal spending (2/27)
Four tribes spent $45M on lobbying and PR firms (2/23)
GOP lobbyist scores big with tribes (04/03)
Embattled tribe gets has new lobbyist (12/13)

Copyright © 2000-2004 Indianz.Com