Tom Delay
Republican mischief in Texas
In a continuing investigation, a grand jury indicts three of Tom DeLay's top fundraising associates and a handful of companies for money laundering and other felonies.
Tom DeLay’s name did not appear anywhere in the 32 indictments returned by a Travis County, Texas, grand jury on Tuesday. But the reach of the U.S. House majority leader from Sugar Land seemed to be everywhere. Among the indicted were two of DeLay’s top associates and a handful of his closest corporate allies.
The charges relate to a coordinated Republican campaign to influence state races in Texas in 2002. The effort, led in part by a DeLay-founded political action committee called Texans for a Republican Majority, funneled corporate money into key races that year. It has been illegal to use corporate money to influence the outcome of an election in Texas since 1907. Nonetheless, TRM raised about $600,000 from corporate donors to help 20 handpicked Republican candidates. Sixteen won their elections, transforming the Texas Legislature and ensuring the passage of DeLay’s desired mid-decade congressional redistricting in 2003.
Two of those indicted, James Ellis and Warren Robold, are longtime DeLay associates. Ellis is charged with one count of money laundering. The Virginia-based consultant serves as executive director of DeLay’s national PAC, Americans for a Republican Majority. When the redistricting battle brought chaos to the state Legislature in 2003, Ellis actively worked with Republican leaders to ensure that DeLay obtained his congressional map. Yet it is a six-figure check that is at the root of the grand jury’s first-degree felony charge against Ellis.
According to the indictment, in September 2002 Ellis took a total of $190,000 in corporate contributions received by Texans for a Republican Majority that could not legally be used to help elect candidates and gave it as a lump-sum check to the Republican National State Elections Committee. The indictment charges that at about the same time, Ellis provided the elections committee with a list containing the names of Texas Republican House candidates as well as how much each should receive. Two weeks after receiving the check, the elections committee turned around and sent $190,000 in seven contributions to the specified candidates. The first-degree felony charge is punishable by five years to life in prison and a fine of up to $10,000.
Robold, DeLay’s corporate fundraiser, is charged in nine indictments with third-degree felony offenses related to making and accepting corporate contributions prohibited by the Texas Election Code. Each count is punishable by two to 10 years in prison and a fine of up to $10,000. According to information revealed in a civil lawsuit against Texans for a Republican Majority, Robold worked to gather large donations from corporations for DeLay’s group. He sent a brochure to potential donors that promised, “Unlike other organizations, your corporate contribution to TRMPAC will be put to productive use.” Robold is alleged to have solicited a total of $250,000 in illegal political contributions from companies such as Burlington Northern Santa Fe Railway and AT&T.
The grand jury also handed down 13 indictments against TRM executive director John Colyandro. Among the charges is one first-degree felony for money laundering (sending the $190,000 as a signed check to Ellis) and 12 misdemeanors for accepting illegal corporate contributions. At press time, none of the men were available for comment.
Steve Brittain, a lawyer for DeLay, broke the news of the indictments to the assembled press corps at the Travis County Criminal Justice Center. He insisted that none of the men intentionally broke the law. “I think people were all doing their jobs,” he said. “I think they were operating in a political season in a way they thought appropriate — now we are going to find out if they were right or not.”
The grand jury also indicted eight companies for donating money to TRM. The corporations allegedly were aware that the cash was earmarked for political work. That’s a third-degree felony. Seven of the eight indicted companies have direct political ties to DeLay. Bacardi USA, for instance (indicted for a $20,000 contribution to TRM on July 3, 2002), has been a spirited contributor to Americans for a Republican Majority and one of DeLay’s biggest backers for years. DeLay is reportedly working diligently in Congress to pass what’s known as the “Bacardi bill.” The legislation would grant the Miami-based liquor company U.S. trade rights to the Havana Club rum label owned partially by the Cuban government. Critics have lambasted the legislation as a corporate handout and charged that Bacardi bought DeLay’s support.
Similarly, Kansas-based Westar Energy, also indicted on Tuesday, gave $25,000 to Texans for a Republican Majority. The company apparently believed its cash would win DeLay’s approval of a House energy bill amendment favorable to Westar. A company official wrote that the contribution would earn Westar “a seat at the table,” according to internal e-mails uncovered last year in a federal investigation and first reported by the Washington Post. In another instance, a contributor seemed to think DeLay and TRM were intertwined. On July 14, 2002, the Williams Companies, a Tulsa, Okla., natural gas outfit, sent its $25,000 corporate contribution to TRM with a note that reads, “Dear Congressman DeLay … I’m pleased to forward our contribution for $25,000.” Williams was also indicted on Tuesday for its involvement with TRM.
Three other indicted benefactors of Texans for a Republican Majority — Sears, Roebuck & Co.; the Cracker Barrel Old Country Store restaurant chain; and the debt-collection agency Diversified Collection Services — were also generous contributors to DeLay’s Americans for a Republican Majority. Ellis has said previously that TRM was essentially a spinoff of ARM. Indeed, nearly half of TRM’s corporate checks came courtesy of ARM contributors or ARM itself, according to federal campaign filings.
The week had started out as a good one for DeLay. On Monday, a panel of the House ethics committee punted whether to investigate Houston Democrat Chris Bell’s ethics complaint against DeLay. The complaint, which touches on many of the same issues the grand jury is investigating, now goes before the entire committee, where it will almost certainly die.
Despite DeLay’s connections to those indicted in Texas, whether he personally broke Texas campaign finance laws remains unclear. He appears to have delegated day-to-day operation of his political action committee to his subordinates. If prosecutors have evidence that links DeLay to possible violations, they’re certainly not saying so. DeLay has not been subpoenaed to appear before the grand jury.
Prosecutors did make clear, however, that Tuesday’s indictments are just the first phase of a wide-ranging investigation of multiple Republican-affiliated groups that spent at least $2.5 million in corporate money in 2002. So more charges could be on the way. “Additional allegations continue to arise from the mass of information gathered by the grand juries that have investigated various aspects of this matter,” said Travis County district attorney Ronnie Earle. “What has emerged is the outline of an effort to use corporate contributions to control representative democracy in Texas.”
Jake Bernstein is editor of The Texas Observer. More Jake Bernstein.
Dave Mann is staff writer at The Texas Observer. More Dave Mann.
John Edwards’ creepy mug shot
The disgraced senator flashes an unnerving grin -- just like Tom DeLay
Edwards sports a cold, dead smile in his mugshot If the pictures of Anthony Weiner and (allegedly) a sunbathing Newt Gingrich weren’t too much for you, here’s another unsettling image: CNN’s Ed Hornick has posted John Edwards’ mug shot. Edwards, who faces felony charges for allegedly using over $1 million of campaign cash to hide his extramarital affair and child, went for the unnerving smile with accompanying cold, dead eyes for his photo:
The image is reminiscent of Tom DeLay from the Republican former House majority leader’s mug shot. (DeLay was ultimately convicted on conspiracy and money-laundering charges.)
We wonder whether the smiles here are meant to convey confidence or an image of innocence. If so, neither man succeeded.
Natasha Lennard covers the Occupy movement for Salon. A British-born, Brooklyn-based journalist, she has been covering Occupy Wall Street since before the first sleeping bag was unrolled in Zuccotti Park. One of the first journalists arrested at an Occupy action, she has managed to enrage Andrew Breitbart, Rush Limbaugh and Glenn Beck. You can follow her on Twitter (@natashalennard), and email her any Occupy updates/videos/ideas to natasha.lennard@gmail.com More Natasha Lennard.
Meet Patrick McHenry, the rudest, most shameless College Republican in Congress
Of course he was unfair to Elizabeth Warren: He was trained by the most cutthroat political organization around
Patrick McHenry Rep. Patrick McHenry (R-Countrywide) called Elizabeth Warren a liar at the conclusion of a House Oversight subcommittee hearing that had already consisted mainly of Republican members of Congress getting very basic information about Warren’s Consumer Financial Protection Bureau completely wrong.
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
The end of Tom DeLay
And why he'll probably never spend a day in prison
Tom Delay On Monday, Tom DeLay was sentenced to three years in prison on two felony charges, conspiracy and money laundering, in a campaign finance corruption case that had dragged on for years.
The sentencing of DeLay, once one of the most powerful Republicans in Washington and the majority leader of the House of Representatives, was largely ignored because of the aftermath of the mass shooting in Arizona.
But it’s an extraordinary story — and one that’s not quite over. When he was indicted in Texas in 2005, DeLay’s political career sustained a fatal blow. He was forced to step down from his House leadership position and, in 2006, he resigned from Congress.
Continue Reading CloseJustin Elliott is a reporter for ProPublica. You can follow him on Twitter @ElliottJustin More Justin Elliott.
Tom DeLay sentenced to 3 years in prison
Former U.S. House majority leader was convicted of money laundering and conspiracy
FILE - In this Oct. 26, 2010 file photo, former House Majority Leader Tom DeLay arrives at the Travis County courthouse in Austin, Texas, for jury selection in his corruption trial. Delay will be back in court on Monday, Jan. 10. 2011, for the sentencing phase of his trial after his Nov. 24 conviction on charges of money laundering and conspiracy to commit money laundering in a scheme to illegally funnel corporate money to Texas candidates in 2002. (AP Photo/Jack Plunkett, File)(Credit: AP) A judge has ordered U.S. House Majority Leader Tom DeLay to serve three years in prison for his role in a scheme to illegally funnel corporate money to Texas candidates in 2002.
The sentence comes after a jury in November convicted DeLay on charges of money laundering and conspiracy to commit money laundering. DeLay was once one of the most powerful men in U.S. politics, ascending to the No. 2 job in the House of Representatives.
The former Houston-area congressman had faced up to life in prison. His attorneys asked for probation.
Senior Judge Pat Priest issued his ruling after a brief sentencing hearing on Monday in which former U.S. House Speaker Dennis Hastert testified on DeLay’s behalf.
Priest declined to hear testimony from the state’s only witness.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.
Jury convicts Tom DeLay in money-laundering trial
DeLay maintains his innocence and plans to appeal the verdict it took 19 hours to reach
Former U.S. House Majority Leader Tom DeLay — once one of the most powerful and feared Republicans in Congress — was convicted Wednesday on charges he illegally funneled corporate money to Texas candidates in 2002.
Jurors deliberated for 19 hours before returning guilty verdicts against DeLay on charges of money laundering and conspiracy to commit money laundering. He faces up to life in prison on the money laundering charge.
After the verdicts were read, DeLay hugged his daughter, Danielle, and his wife, Christine. His lead attorney, Dick DeGuerin, said they planned to appeal the verdict.
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