Tom Delay

The GOP’s spreading plague

Voters are notoriously slow in voting out politicians accused of corruption, but they may reach the tipping point with the latest revelations.

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To be an honest Republican these days must be to wonder what awful revelation is coming next — and how the Grand Old Party, which once claimed to represent political reform, became a front for sleaze, corruption and cynical criminality. Across the country, from the Capitol to statehouses, Republican officials are under indictment, under investigation or under suspicion.

This week’s headlines featured the indictment of Rep. Tom DeLay and the probe of Senate Majority Leader Bill Frist, but the infection of venality among their fellow partisans is now reaching epidemic proportions. So widespread is the plague that keeping track of all the individual cases, and their increasingly baroque variations, has become a distinct challenge.

Consider Jack Abramoff, once the prince of K Street lobbyists and a dedicated right-wing ideologue who boasted of his powerful connections to DeLay, Karl Rove, Grover Norquist and the entire Republican apparatus in Washington. Already under investigation by the Justice Department for his influence peddling among House members, including DeLay, and his swindling of Indian tribes, Abramoff was indicted last month for bank fraud in a separate South Florida case involving a casino boat company that he partly owned.

The fraud allegedly committed by Abramoff and his business partner Adam Kidan involved a phony wire transfer they used to purchase a controlling interest in SunCruz from the company’s founder, Konstantinos “Gus” Boulis, in 2001.

Abramoff and Kidan later fell out with Boulis in a bitter business dispute that turned violent. In February 2001, gunmen ambushed Boulis on a Fort Lauderdale, Fla., highway and shot him repeatedly. On Tuesday, Florida authorities arrested three New York men with mob connections for the Boulis killing. Two of the men — Anthony Moscatiello and Tony Ferrari — had received payments totaling more than $240,000 from Kidan and Abramoff. Moscatiello, a longtime associate of the Gambino Mafia family, and Ferrari were supposedly providing food and consulting services to SunCruz — or so Kidan claimed when questioned by prosecutors. There is no evidence, however, that Moscatiello and Ferrari provided any services to the company.

Connecting the dots isn’t difficult here: Kidan and Abramoff want to get rid of Boulis, who won’t go away. Kidan and Abramoff hire Moscatiello and Ferrari with SunCruz money. Moscatiello and Ferrari allegedly whack Boulis, without any motive of their own. If the Broward County state’s attorney has sufficient evidence to win convictions for a capital crime, some people will probably be talking soon in hope of avoiding the hot shot.

The stunning fall of Abramoff, who has yet to hit bottom, is certainly the most colorful tale of Republican depravity. The corporate money laundering to Texas politicians that led to DeLay’s conspiracy indictment, and the suspicious insider stock transaction that spurred investigations of Frist by the Justice Department and the Securities and Exchange Commission, seem mundane by comparison. Outrage will be warranted if their misconduct is proved, but everyone sadly knows that these felonies are now common practice in our political and corporate culture.

Corporate misbehavior has also brought down right-wing publisher Conrad Black, neoconservative strategist and former Bush advisor Richard Perle and the entire corporate board of Hollinger Inc., the Republican-friendly media conglomerate formerly controlled by Lord Black — and that he and others are plausibly accused of illicitly looting for their own benefit. Furious shareholders forced Black to relinquish control of the company and are suing him, as well as Perle and former Black deputy David Radler, for $500 million. The SEC is also suing Black and Radler, and the Justice Department is investigating the former Hollinger directors.

Last month, U.S. Attorney Patrick Fitzgerald, who also happens to be the special prosecutor in the Valerie Plame case, accepted Radler’s guilty plea to mail fraud and wire fraud. Radler is now believed to be cooperating in the prosecution of what former SEC chairman Richard Breeden, a Republican who investigated Hollinger on behalf of shareholders, termed a “corporate kleptocracy.”

Kleptocratic morality evidently ruled at least two Republican statehouses in the Midwest as well. Currently under indictment are former Gov. George Ryan of Illinois, whose trial on bribery charges began last week, and Gov. Robert Taft of Ohio, who pleaded no contest last month to charges of accepting illegal gifts from a state contractor.

That contractor is Thomas Noe, a coin dealer who received lucrative investment deals with the state’s Workers Compensation Fund and is now at the center of a gigantic scandal known as “Coingate.” More than $12 million has disappeared from the fund, and former GOP official Noe stands accused of laundering money to various Republican politicians, including the Bush-Cheney campaign. Like Abramoff, Noe is a Bush “Pioneer,” responsible for raising at least $100,000 for the president last year.

Still another Pioneer is currently under criminal investigation in a celebrated corruption case involving Randy “Duke” Cunningham, a prominent Republican representative from San Diego with a senior position on the House defense appropriations subcommittee. On Aug. 18, FBI and IRS agents raided the offices of defense contractor and Bush fundraiser Brent Wilkes.

Wilkes is reportedly a former business associate of Mitchell J. Wade, the head of a defense contracting firm called MZM Inc. who is under investigation in San Diego for alleged bribery of Cunningham. According to newspaper reports, Wade purchased a home owned by Cunningham at a price inflated by at least $700,000, and also permitted the congressman to use his 42-foot yacht free of charge. Federal agents searched Wade’s offices in July.

Although prosecutors have brought no criminal charges in the case yet, they have filed civil court documents describing the home sale as a violation of federal bribery laws — and Cunningham, who has served in Congress for decades, has already announced that he will not seek another term next year.

The Republican National Committee’s new treasurer, Robert Kjellander, is under investigation too. (Naturally, he is also a Bush Pioneer.) Not long after he assumed his new post at the party’s Washington headquarters, Kjellander received a federal subpoena for records of his dealings with the Illinois Teachers’ Retirement System, a state pension fund, and the Carlyle Group. Federal prosecutors are reportedly looking into alleged corruption at the fund, and have asked Kjellander to provide information about a $4.5 million fee he received from Carlyle for his role in arranging investments by the fund with the huge private equity fund. Carlyle, of course, is closely connected to the Bush administration, including the president’s father, George H.W. Bush, who has worked for the firm as a rainmaker and advisor.

In fairness, it should be said that all these pols and parasites may be innocent (except for those already convicted), or at least not guilty beyond a reasonable doubt. It is also true that voters have historically been slow to evict politicians from office because of corruption charges.

But public opinion of congressional Republicans is hitting new lows, and Americans are growing furious about the war in Iraq, the government response to Hurricane Katrina and rising energy prices. The natural impulse to throw the rascals out can only be encouraged by the Gilded Age spectacles now unfolding in Washington and in cities across the country as the indictments continue to come down between now and November 2006.

Joe Conason blogs in Salon several times a week and writes a weekly column for the New York Observer. His latest book is "It Can Happen Here: Authoritarian Peril in the Age of Bush."

John Edwards’ creepy mug shot

The disgraced senator flashes an unnerving grin -- just like Tom DeLay

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John Edwards' creepy mug shotEdwards 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

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

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Meet Patrick McHenry, the rudest, most shameless College Republican in CongressPatrick 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.

McHenry has been one of the most completely shameless of House Republicans since his arrival in Congress, in 2005, when he immediately and publicly endorsed Tom DeLay’s brilliant plan to exempt himself from ethics rules as his connections to Jack Abramoff began to end his career. But he was born to be cheerfully corrupt: He’s a product of the College Republicans, an organization that trains little Lee Atwaters, Karl Roves and Grover Norquists in the arts of scorched-earth campaigning and wholly irresponsible “governing” on behalf of the monied interests that bought you your job. The ethos is win by any means necessary, legal or quasi-legal (or worse, as long as you never get caught), and McHenry was very good at that, according to Benjamin Wallace-Wells’ memorable profile of the then-freshman in the Washington Monthly.

After the College Republicans, and a failed state legislature race, McHenry moved on to truly insidious conservative astroturfing/push-polling/communications firm DCI, then worked for Rove, then took a political appointment in the Bush administration, then moved to the district he now represents, where he started a real estate company that did not actually buy or sell any real estate, so that he could run for Congress as “a small businessman.”

Once in the United States House of Representatives, McHenry personally intervened in a wild and bloody College Republican National Committee chair election, on behalf of a personal friend of his who’d become slightly toxic after he sent fundraising letters attempting to trick “elderly people with dementia” into donating to the CRNC. And he was successful! The horrible kid won, against all odds:

In other phone calls, McHenry was more blunt: “He told me, and several of my friends that we were done in politics if we didn’t support him,” another College Republican chapter president told me. (McHenry has admitted that he and Deans made the calls but denied that they threatened anyone’s career). Over the course of two weeks, after a couple of a dozen calls, McHenry prevailed upon those in the North Carolina delegation to change their votes, removing three votes from Davidson’s column and putting them in Gourley’s. Gourley ended up winning by six votes; had North Carolina voted the other way, Davidson might have won.

Another of McHenry’s first acts in Congress, Wallace-Wells writes, was to champion a bill that was specifically written to rip off a large portion of his constituents, by making it “much harder for government to regulate or block the conversion of credit unions into banks …” He is a close ally of major consumer financial institutions with a plum assignment to the Committee on Financial Services, which is great for raising money.

It’s only natural that Elizabeth Warren, whose mission is to protect consumers from unethical and predatory practices by these institutions, is Patrick McHenry’s enemy. You can complain on his Facebook wall all you like, but the Republican from North Carolina is incapable of feeling embarrassment.

And his treatment of Warren will only make him a bigger conservative hero and an even more attractive investment opportunity for major banks.

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Alex Pareene

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

The end of Tom DeLay

And why he'll probably never spend a day in prison

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The end of Tom DeLayTom 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. 

The charges arose after DeLay set up a PAC to funnel corporate money, which is barred in Texas elections, to candidates for the state legislature. The group raised $190,000 and funneled it through the national Republican Party, which then distributed the money to several state-level candidates in Texas.

To learn more about the case that brought DeLay down, I spoke with Lou Dubose, who co-authored “The Hammer,” a biography of DeLay. The former editor of the Texas Observer and the current editor of the Washington Spectator newsletter, Dubose covered the trial gavel to gavel in Austin. He was in the courtroom on Monday when DeLay gave a lengthy presentencing speech accusing prosecutors of having political motivations and claiming he had $10 million in legal bills. 

I asked Dubose whether DeLay, who is planning an appeal, will ever see the inside of a jail cell, and whether the former majority leader appears humbled by the ordeal of the trial.  The conversation has been edited for length and clarity.

Did you ever think that you would see this happen?

I really didn’t. This was a working class jury, and I think that made a huge difference.

What was the dynamic with the jury — why did that make a difference?

Gary Cobb, the assistant DA who tried the case, really dragged out the $50,000 checks and the flights on corporate jets with the same persons who had written the checks to DeLay’s PAC. The sort of life that Tom DeLay lived at the expense of the corporate lobby — I think that really made an impact. By their clothes and what we know about them, it was a real working-class jury.

Oddly enough, Tom DeLay spent the entire duration of the three-week trial in a motor home rather than the Four Seasons. He drove his motor coach over here and checked into a motor home park in south Austin, a long way from where he was playing golf at Saint Andrews in Scotland. Then there was also the fact of the way the DeLays dressed, the fact that Reverend Rick Scarborough was sitting behind them. There was a lot of bling there that these people on the jury didn’t have.

Was it possible to tell where the $190,000 ended up? Did it just go to the state GOP?

The money came back, and it went to the candidates in Texas for whom it was designated. The backstory, of course, is that the Republicans controlled everything in Texas but the statehouse. Therefore they could not control redistricting. So DeLay set this organization up in 2001 for the 2002 election and they had to win a majority in the house. They moved this $190,000 up to D.C. because they were specifically raising corporate money, which was easier to raise. They sent it to Washington with specific instructions to send it back to these designated candidates. The candidates got the checks in the exact amount of $190,000.

And DeLay personally raised the money?

Well, that was the question. He stayed in the background but the state proved that he was aware that that transaction had happened. He was probably involved in directing it, although they didn’t have direct testimony on that. They put the three men who did the money-laundering in a room together in Sugar Land, Texas, in DeLay’s district, before the transaction was made.

Remarkably, at one point in the trial, DeLay went out and talked to Laylan Copelin of the Austin American-Statesman, who is a really terrific reporter. And Laylan asked him if he could have stopped the transaction. And DeLay said, “I could have stopped it, but why would I?”

And that was used in the trial?

In the middle of the trial, the state called Laylan Copelin as a witness — really bizarre. He’d been sitting there most of the trial; two weeks into the trial they call him as a witness because of what DeLay had said. His story ran, and two days later he was on the stand testifying as to what he had been told.

So I think DeLay proved to be a terrible client for a storied criminal defense attorney, Dick DeGuerin. That said, the state did an incredible job putting on a case that had to be by nature largely circumstantial.

Do you think he will ever spend a day in jail?

No. Simply because the Court of Criminal Appeals is an elected court, it’s all Republican, it’s highly political. It’s known as a prosecutors’ court, but in this case I would bet that they’re going to rule for the defendant. The Third Court of Appeals, where the appeal will start, is also a Republican court.

What are the issues in the appeal?

These courts are going to have to find a creative way of setting Tom DeLay free. One argument that they once made that they might try to revive is that money-laundering didn’t apply to checks, it applied to cash. This involved checks. The problem with that at the appellate level is that there have been a number of convictions based on money laundering with checks. So are you going to overturn all these prior convictions in order to save Tom DeLay?

What is DeLay doing these days?

You know, nothing. He is struggling to remain relevant. DeLay was always the star at CPAC, the annual conservative conference in Washington. But he hasn’t been allowed to speak there. Two years ago at CPAC, he was trolling for interviews. At the last CPAC convention, he was shunned.

He’s become a pariah to the Republican Party, and I don’t quite understand why. The true believers hold him responsible, rightly, for the Bush Medicare prescription drug bill, which DeLay pushed through. But he’s of no use to them anymore, and he’s not wanted. So most of what he does is struggle to remain relevant, and he’s not. Dick DeGuerin, in his closing argument, said “This prosecution has rendered my client unemployable.” And to my knowledge, he’s not employed.

His media statements have been defiant, but has he changed?

I don’t think so. That’s what’s remarkable. This is the same Tom DeLay that I saw every day for a year and a half when I followed him in Washington. It seemed to me that it never occurred to him that he no longer had the power that he once exercised. He had no regrets — he’s the same guy, except that he’s driving in a motor home instead of sleeping in the Four Seasons.

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Justin Elliott

Justin Elliott is a reporter for ProPublica. You can follow him on Twitter @ElliottJustin

Tom DeLay sentenced to 3 years in prison

Former U.S. House majority leader was convicted of money laundering and conspiracy

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Tom DeLay sentenced to 3 years in prisonFILE - 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

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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.

“This is an abuse of power. It’s a miscarriage of justice, and I still maintain that I am innocent. The criminalization of politics undermines our very system and I’m very disappointed in the outcome,” DeLay told reporters outside the courtroom. He remains free on bond, and his sentencing was tentatively set to begin on Dec. 20.

Prosecutors said DeLay, who once held the No. 2 job in the House of Representatives and whose heavy-handed style earned him the nickname “the Hammer,” used his political action committee to illegally channel $190,000 in corporate donations into 2002 Texas legislative races through a money swap.

DeLay and his attorneys maintained the former Houston-area congressman did nothing wrong as no corporate funds went to Texas candidates and the money swap was legal.

The verdict came after a three-week trial in which prosecutors presented more than 30 witnesses and volumes of e-mails and other documents. DeLay’s attorneys presented five witnesses.

Prosecutors said DeLay conspired with two associates, John Colyandro and Jim Ellis, to use his Texas-based PAC to send $190,000 in corporate money to an arm of the Washington-based Republican National Committee, or RNC. The RNC then sent the same amount to seven Texas House candidates. Under Texas law, corporate money can’t go directly to political campaigns.

Prosecutors claim the money helped Republicans take control of the Texas House. That enabled the GOP majority to push through a Delay-engineered congressional redistricting plan that sent more Texas Republicans to Congress in 2004 — and strengthened DeLay’s political power.

DeLay’s attorneys argued the money swap resulted in the seven candidates getting donations from individuals, which they could legally use in Texas.

They also said DeLay only lent his name to the PAC and had little involvement in how it was run. Prosecutors, who presented mostly circumstantial evidence, didn’t prove he committed a crime, they said.

DeLay has chosen to have Senior Judge Pat Priest sentence him. He faces five years to life in prison on the money laundering charge and two to 20 years on the conspiracy charge. He also would be eligible for probation.

The 2005 criminal charges in Texas, as well as a separate federal investigation of DeLay’s ties to disgraced former lobbyist Jack Abramoff, ended his 22-year political career representing suburban Houston. The Justice Department probe into DeLay’s ties to Abramoff ended without any charges filed against DeLay.

Ellis and Colyandro, who face lesser charges, will be tried later.

Except for a 2009 appearance on ABC’s hit television show “Dancing With the Stars,” DeLay has been out of the spotlight since resigning from Congress in 2006. He now runs a consulting firm based in the Houston suburb of Sugar Land.

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