Jack Abramoff, a lobbyist who is a top Republican fund-raiser and political ally of Houston congressman and House Majority Leader Tom DeLay, was indicted yesterday in Ft. Lauderdale, Florida on charges of defrauding two lenders in his purchase of a casino cruise line five years ago. Mr. DeLay is not mentioned in the indictment and apparently had no involvement in the activities that led to this particular indictment. As noted in these previous posts, the Justice Department is also investigating Mr. Abramoff for allegedly bilking four Indian tribes he represented in connection with his lobbying business.

The grand jury indicted Mr. Abramoff and a business partner for allegedly using a fake $23 million wire transfer in 2000 to help secure loans needed to purchase 11 cruise ships, 2,300 slot machines and 175 gambling tables in a deal for the $147.5 million SunCruz Casinos business operation. The indictment alleges that two lenders agreed to lend Mr. Abramoff and his partner $60 million for the purchase on the condition that the pair ponied up $23 million on their own. Mr. Abramoff and his partner are accused of falsifying wire transfer receipts to make it appear as if they had the $23 million. SunCruz later ended up filing a chapter 11 case.
Mr. DeLay’s relationship with Mr. Abramoff came under media scrutiny and an ethics controversy earlier this year after it was reported that Mr. Abramoff or his clients had paid for Mr. DeLay to take several expensive tours of Scotland, London and Russia. Inasmuch as members of Congress are not allowed to accept trips from lobbyists, the matter has been under investigation by the House Ethics Committee, although the investigation has appeared to bog down over the past several months.