Lou Dubose

The collapse of Karl Rove

The Pygmalion strategist from Texas built up the Republican Party by exploiting the religious right -- and now his handiwork is crumbling.

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The collapse of Karl Rove

A month ago, a friend who has spent his entire career working for the Republican House leadership pulled up beside me at the intersection of Seventh and Pennsylvania in Washington. A House institutionalist, and a fiercely partisan secular Republican, he was oddly cheerful. “Call me next time you’re in town,” he said. “We’ll talk about how George Bush destroyed the Republican Party.”

It will be a long conversation.

But the president doesn’t get all the credit. If Karl Rove was responsible for the remarkable ascent of the Republican Party since 2000, he is equally responsible for what is beginning to look like its vertical collapse. With the Christian right deeply disappointed at Bush and in search of a candidate for the 2008 election, economic conservatives alienated by the White House’s failure to impose fiscal discipline on the Congress when the Republicans were in charge of both houses, and congressional Republicans caught in the undertow of a failing president’s failed war, the party Rove predicted would become a permanent majority is no more. Rove could put the party together, but in the end he proved incapable of holding it together.

In Texas, we saw this modern iteration of the Republican Party come together in the summer or 1994, as Bush kicked off his first successful run for public office. (He had lost a congressional race in West Texas in 1978, in which Rove was only marginally involved.) Social conservatives had already joined together with economic conservatives when Ronald Reagan got into bed with the Rev. Jerry Falwell. But it was Rove who consecrated the union. A nominal Christian and Episcopalian, Rove had little regard for the evangelical extremists who have become essential to the success of the modern Republican Party, even cracking the occasional joke about his own lack of faith.

Then the Christian right showed up at the Republicans’ state convention in Fort Worth, in 1994, with enough delegates to seize control of the party. The dominant Christian faction tossed George H.W. Bush’s handpicked state chairman and longtime friend, Fred Meyer, out of office and replaced him with a charismatic Catholic lawyer from Dallas. It banned liquor from convention hotels and replaced hospitality-room bars with “ice cream sundae bars,” where chefs prepared designer confections. It summoned delegates to Grand Old Prayer Sessions, required Christian fealty oaths of candidates for party leadership, and made opposition to abortion the brand by which Texas Republicans would be defined.

This political great awakening was not unique to Texas. But it occurred in a context in which a brilliant, Pygmalion political consultant saw in George W. Bush a malleable idol who could be fashioned into a governor and ultimately a president. And Bush was a candidate whose genuine evangelical faith was an asset rather than a liability. After initially fighting the dominant evangelical delegation at the state convention — proposing Texas Rep. Joe Barton as a compromise candidate for state party chairman — Rove joined them.

He found religion, even if he didn’t find Jesus. And it was a foxhole conversion at best. Rove had been brought to Texas by the elder Bush in the early ’80s and devoted his energies to building a Republican Party where there was none — using direct mail, money and databases in ways that Texas Democrats never imagined. There was one statewide Republican elected official when Rove began his work, U.S. Sen. John Tower. Today, Republicans hold all 22 statewide offices. But the party Karl Rove built was based on the economic conservatism of Barry Goldwater, not the social conservatism of Jerry Falwell. Once Bush was elected governor, Rove marginalized the Christian right’s party chairman, Tom Pauken, denying him access to party money, and when Pauken ran for state attorney general, Rove quietly assisted the campaign of his primary opponent, John Cornyn, who now represents Texas in the United States Senate. Yet despite the low regard in which he held evangelicals, Rove recognized the importance of keeping them in harness with economic conservatives.

The “guns, God, and gays” campaigns that defined Texas politics and the politics of the South became the model for Republican Party campaigns across the country. It was Rove who was responsible for the whispering campaign that characterized Democratic Gov. Ann Richards, Bush’s opponent in the 1994 governor’s race, as a closet lesbian, in a successful attempt to peel away conservative Christian votes in East Texas.

Perhaps the most recent example of a successful social-issues campaign was in Ohio during the 2004 election, which provided critical electoral votes to secure George Bush’s second term. With Bush in peril of losing to John Kerry, the Republican National Committee looked to David Barton to go into Ohio and turn out the base. Barton is a former vice chairman of the Texas Republican Party and one of the founders of the WallBuilders, a Christian advocacy group working to restore God to His central position in American history, and in the history and social studies curricula of the nation’s public schools.

Barton comes straight out of the social conservative wing of the Republican Party Rove put together and then left behind in Texas when he followed Bush to Washington in 2001. And Barton represents both the success and what now might be the failure of the Republican Party Rove cobbled together. U.S. District Judge John E. Jones III mentioned Barton by name, in his 2005 opinion that declared “intelligent design” (biblical creationism dressed up as science) unconstitutional to teach in the nation’s public schools. Jones, a George W. Bush appointee to the federal bench, was particularly offended by the Dover, Penn., school board president’s stated intention to move from Christian intelligent design in biology classes to Christian social studies in history classes. The judge cited both Barton and his book, “The Myth of Separation,” as examples of a school board that was in open violation of the Constitution. (WallBuilders do not recognize the separation of church and state as defined by the First Amendment.)

In Pennsylvania, Judge Jones’ angry repudiation of the Christian majority on the school board was both a portent and part of the dissolution of the union over which Rove presided in 1994 in Fort Worth. Jones, a Tom Ridge protégé, was unequivocal in asserting the primacy of the Separation Clause over the religious interests of local governing bodies. Like this moderate judge, the larger public — and even the Republican Party, if the candidacy of Rudy Giuliani means anything — has grown weary of the Christian right. It was a marriage as unlikely as the union between an evangelical George W. Bush and Episcopalian Karl Rove.

It appears that it’s over. As Rove returns to the Hill Country home in Texas he and his wife, Darby, bought and refurbished, the party in which he invested his energy, if not his soul, is divided among social and economic conservatives. Even Texas Sen. John Cornyn, a one-time moderate who drank the Kool-Aid with the Christians in the Texas Republican Party, is in trouble with the state’s voters. Cornyn, like Bush, was a creation of Karl Rove. Maybe Rove can save a Senate seat, if not his soul, by quietly throwing in with Cornyn’s campaign, after he settles back down in the state where it all began.

The Texan who actually governed

Karl Rove's cutthroat tactics eventually defeated her, but not before Ann Richards made a huge impact on American politics.

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The Texan who actually governed

“Welcome to the first day of the new Texas!” Ann Richards growled into a microphone as she began her 1991 inaugural address.

She had just led a parade of supporters north on Congress Avenue, something of a fifth column moving on the Capitol. She had promised them she would use a pair of bolt cutters to open the gates of the Greek-revival governor’s mansion to “the people” of Texas. “The people” were blacks, Hispanics, gays and lesbians, along with the shrinking Anglo majority, in a state that had and would again be dominated by leaders beholden to oil, gas and banking interests.

Old Texas had been run by a cabal the state’s then-agriculture commissioner, Jim Hightower, referred to as the “bankers, bullies and bastards who run this state.” Richards had defeated a corporate cowboy (and banker) from West Texas and succeeded a Dallas oilman who served as Richard Nixon’s undersecretary of defense. (Her 1990 opponent, Clayton Williams, had offended women with a campfire joke made to reporters at his ranch: “Rape is like the weather, you can’t do anything about it so you might as well lay back and enjoy it.”) Richards’ new Texas would broker a division of power among those bankers, bullies and bastards — and the trial lawyers, environmentalists, consumer activists, feminists, and gay and lesbian political operatives who made Richards governor. If Ann Richards failed to manage that delicate balance of power in the one term she served as governor of this state, she gets some credit for trying.

Texas’ populist constitution created a plural executive, dividing executive power among some 20 statewide elected officials. The governor is a first among equals, actually second in power to the lieutenant governor, who presides over the Senate. “A glorified ribbon cutter,” is how a former Democratic speaker described the job. The governor’s power lies in appointments to the agencies, boards and commissions that do the work of government. Richards used that power to create the new Texas for which she had campaigned. Forty-four percent of her appointees to state boards and commissions were women. Twenty percent were Hispanic. Fourteen percent were African-American. Her two predecessors — one Democratic and one Republican — had a combined average of 77 percent Anglo men.

There was much more to Richards than the large personality that has made her an icon and the stuff of political caricature. In bas relief beneath the woman delivering lacerating one-liners, the silver-haired grandmother riding a Harley on her 60th birthday, and the “homemaker” who became governor, was an elected official who genuinely cared about governing. “She never believed that government was the problem,” said Rebecca Lightsey, a Richards appointee to the Texas Insurance Commission. “She believed that the function of government was to solve people’s problems.”

Richards campaigned on the “pothole” and good government issues she had worked in two terms as Travis County commissioner in Austin and two terms as state treasurer: insurance, ethics and environment. She had also dealt with constituent issues as a legislative aide to state Rep. Sarah Weddington, who as a young lawyer had prevailed in the Roe v. Wade abortion rights case before the U.S. Supreme Court. Once elected, Richards set out to deliver on her campaign promises. “On her first day in office, she started working on a insurance crisis that existed at the time,” Lightsey said. “She took on the redlining that shut minorities out of the insurance market and made it illegal. And by the time she left office, Texas had health insurance reform that was adopted by the federal government.”

Richards created the state’s first ethics commission. She merged the Texas air and water regulation boards into one unified environmental agency — then appointed an African-American who was not sanctioned by the business community to direct it. For more than a year, she traveled the state with a “Capitol for a Day” program, leading an entourage of agency heads and staffers from city to city to meet the constituents they served.

“She followed a generation of all those big Texas figures,” says Mary Sanger, a campaign director Richards appointed to the state’s housing commission. “Sam Rayburn, Lyndon Johnson, Ralph Yarborough, John Connally, Ben Barnes. For all their faults, and all their big egos, they honestly believed in government, that government should do something for the people. Ann belonged to the generation after them. She believed in government.”

But Richards was elected to a state and a region in political transition. When she was elected as state treasurer, an office she held for two terms before she ran for governor in 1990, each of the statewide elected offices was held by a Democrat. By the time George W. Bush won his second term as president in 2004, every one of those offices was held by a Republican — most of them clients of Bush’s lifelong political advisor Karl Rove.

It was Rove who brought defeat to Richards in the 1994 gubernatorial election. Though she outspent Bush and started the campaign far ahead of him, Rove turned her new Texas against her, using a standard “God, guns and gays” campaign to bring her down. Richards had vetoed a statute in support of concealed handguns, aware that it would be used against her in the next race, precisely as Rove and Bush did use it.

She promoted environmental protections for Austin and the Texas Hill Country, which also worked against her. She had also presided over the largest expansion of prisons in Texas and a declining rate in violent crime — but Rove and Republican political consultant Don Sipple designed a “soft on crime” campaign against her anyway. Rove also used a highly regarded Republican East Texas state senator to advance a whisper campaign about gays and lesbians surrounding Richards, some of whom had been appointed to boards and commissions that were to represent Richards’ new Texas.

Richards bore responsibility for her loss in that she vastly underestimated George W. Bush — and more important, Karl Rove and his ability to exploit the Texas old guard. “I think in the end she found herself caught between the liberalism of the 1950s and a new emerging progressive politics,” Sanger said. “And the traditional forces that had controlled the state.”

Surrounded by her family, Richards died of cancer in her downtown Austin condo. She was 73, on medical leave from Public Strategies, a consulting and lobbying firm. At the time of her death she was still working on behalf of the less privileged constituents who had followed her up Congress Avenue 15 years earlier. With her daughter Ellen, she was working on the advisory committee of the Ann Richards School for Young Women Leaders, an Austin public school that will open in September 2007.

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Willie’s story

Less known but just as telling as Priscilla Owen's abysmal abortion-rights record is her unconscionable handling of a case that may have cost a young man's life.

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Willie's story

Willie Searcy never got to meet Priscilla Owen. And that’s unfortunate. Because as an associate justice on the Texas Supreme Court, Owen once exercised almost complete control over the fate of the working-class kid who always played above his weight on the local rec-league football team — until the car accident that changed his life and crossed his path with Owen’s. The account of Willie Searcy’s experience with the Texas high court provides real insight into what sort of federal appeals court judge Owen will be if the Senate approves her lifetime nomination to the 5th Circuit U.S. Court of Appeals. But Searcy’s story has been largely overlooked.

Next week, Majority Leader Bill Frist may call up Owen’s nomination for Senate consideration, a move expected to spark the long-awaited showdown over the so-called nuclear option. Owen’s Democratic opponents, who have blocked her nomination since 2001, have been focused on her creative attempts to restrict abortion rights for minors in Texas. That also goes for the extreme Christian right, which considers Owen’s “pro-life” record a justification for its campaign to persuade the Republican majority in the U.S. Senate to eliminate the filibuster rule and confirm Owen. Yet the case that pitted the skinny black kid from Dallas against Ford Motor Co. is as important as Owen’s attempt to rewrite the law the Texas Legislature enacted to define a specific process by which minors could get abortions. (Not, as Owen held, to make such abortions almost impossible to obtain.)

Willie Searcy’s trip to the Texas Supreme Court began in the rain on a Dallas freeway. He was 14 years old in April 1993 when a Mercury Cougar driven by a 17-year-old hydroplaned across the median and slammed into the Ford pickup driven by Willie’s stepfather, Ken Miles. Miles’ life was saved by the steering wheel, which absorbed some of the impact of the head-on collision. Willie’s 12-year-old brother, Jermaine, was saved by a snug seatbelt that held him securely in the middle seat. Willie was not so fortunate. Just before the crash, he leaned forward to pick a piece of paper off the floor. The tension eliminator, which allows the seatbelt to spool out when a passenger leans forward, then retracts the slack and holds the belt in place when the passenger is sitting upright, apparently failed.

Willie Searcy had no broken bones. But the posterior ligaments that held his head in alignment with his spinal cord were torn and stretched. He would spend the rest of his life as a “ventilator-dependent quadriplegic.” After being airlifted off the freeway, he spent three months in Methodist Hospital in Dallas and three more months in a private rehab facility. Within six months, Willie’s mother Susan Miles and her husband Ken were looking at $550,000 in medical bills. The rest of their lives, in fact, would be defined by medical bills. Their teenage son would require full-time nursing care. He would have to be “coughed” by an attendant. His trachea tube would have to be regularly suctioned to allow a clear path for the ventilator to breathe for him. Every bodily function would be regulated or performed by a machine, relative, nurse, or attendant. It was far beyond what Ken, a parts clerk at a Ford dealership, or Susan, a medical records clerk, could expect from their healthcare coverage.

Willie’s attorney, Jack Ayres, wanted to get the case to trial as fast as possible. He believed that a defective part with a history of failure had caused Willie’s near-fatal impact with the dashboard, and he set out to sue Ford. Until the tort reform law that Gov. George W. Bush pushed through the Legislature in 1995, plaintiffs in Texas could file suit either where the cause of the lawsuit took place or in any county where the defendant did business. Ford would have preferred to defend itself in Dallas, where conservative judges and juries are friendlier to corporate defendants. Ayres filed in state district court in Henderson, a small East Texas town where there was a Ford dealership. The docket was shorter there, which ensured a faster trial date. The jury pool was probably more favorable to his client. And the state law allowed him a choice of forum.

“We were in a race to save this kid’s life,” Ayres said.

Cases like Willie Searcy’s involve a lot of discovery, hundreds of hours of depositions, hundreds of thousands of pieces of documentary evidence, and countless pretrial motions. They are slow by nature and defendants often try to make them slower, hoping to exhaust the resources of the plaintiff’s lawyers, who bear all costs until there is a judgment or settlement. It was not surprising that Ford moved for more time after the judge set the trial for January 1995. What was surprising was what followed after the judge denied Ford’s request.

From out of nowhere or, more precisely, from out of the Texas prison system, Willie’s estranged biological father intervened and asked for time to allow him to prepare for the case. Willie’s attorneys wondered if Ford’s defense team had contacted him in an attempt to slow the proceedings. But lawyers on Ford’s defense team insisted they had nothing to do with the father’s request. Visitor logs at the prison where the father was incarcerated suggested otherwise. Margaret Keliher, a lawyer on Ford’s defense team who was later elected Dallas County judge, had visited the prison. Four years later, while working on a book, I asked her if she had gone to the prison to bring Willie’s father into the case. She told me that a lot of time had passed and the question — whether, as a corporate defense attorney, she had traveled to East Texas to meet with a convicted criminal — was taxing her memory. When Willie’s lawyers warned his father that intervention in the case would delay his son’s trial, he withdrew.

Ford is always a dogged defendant. One of its in-house lawyers explained the company’s litigation strategy to the National Law Journal. Ford would make only one pretrial offer. “I don’t give a shit if they take it or not,” Ford lawyer James A. Brown told the Journal. “If the plaintiff doesn’t settle, it doesn’t matter to us. We tell them ‘we’re coming after you.’”

At the end of the four-month trial, an East Texas jury took only four hours to award Willie Searcy $30 million. On the following day, it met for 90 minutes and awarded the Searcy family an additional $10 million in punitive damages. Jack Ayres had asked for $26 million.

Predictably, Ford came after Willie Searcy and his lawyers. The company appealed both the jury decision and Ayres’ filing of his pre-appeal motions in what they claimed was the wrong appeals court. Willie Searcy lost another year, getting none of his jury award. What was finally ruled to be the appropriate appeals court overturned the $10 million in punitive damages and raised one legal question about the $30 million award, which it allowed to stand.

Ford’s legal team then took the $30 million in actual damages to the Texas Supreme Court. But the attorneys were decent enough to request an expedited hearing of the case. They recognized that Willie Searcy was kept alive by a patched-together system involving state caretakers, friends, and family working with him at home. There was no backup ventilator or generator to cover a temporary power failure. On paper, Willie was a millionaire, with a jury award that would have provided first-class healthcare. At home in a Dallas suburb, he lived in healthcare limbo.

On the Texas Supreme Court, cases are assigned by a blind draw. Justices pick up cards with case names on them and take charge of those cases. One of the cards Priscilla Owen picked up as the court began its 1996 session had “Miles v. Ford” written on it. “That kid’s fate was decided when Justice Owen picked that card,” said a lawyer who worked at the Supreme Court at the time.

Priscilla Owen was a Karl Rove candidate for the Supreme Court. An oil and gas lawyer from Houston, she had never been a judge when Bush’s lifetime political advisor made her the candidate for an open seat in 1994 and helped direct her successful campaign. Republicans were methodically taking state government away from the Democrats, and Rove was the architect of the takeover, recruiting candidates for statewide office and directing their campaigns. Rove had advised the campaigns of every candidate on the Supreme Court (and the governor and both U.S. senators). On the bench, Owen positioned herself to the right of the court’s most conservative justice, Nathan Hecht, whom she occasionally dated. They were kept in check (in the courtroom) by a centrist bloc led by Deborah Hankinson, a 1997 Bush appointee whom the Wall Street Journal described as “the rising star on the Texas Supreme Court.”

Two years after the lawyers representing Willie Searcy and the lawyers representing Ford had requested an expedited hearing, Owen wrote the majority opinion. A process that could have been completed within months of the oral argument in November 1996 dragged on until Owen completed her opinion in March 1998.

Her opinion was stunning. Not because it ruled against Willie Searcy and his mother, Susan Miles, but because of how it ruled against them. Owens ruled the case would have to be retried in Dallas because it was initially filed in the wrong venue. Yet venue was not among the issues, or “points of error,” the court said it would consider two years earlier when it took up the case. “We felt like we got ambushed,” said Ayres. A lawyer who had worked at the court at the time agreed: “If venue wasn’t in the points of error, it is unusual that the court addressed it. If the justices decide they want the court to address something not in the points of error, they would ask for additional briefing. They send letters to the parties and ask for briefing.” There had been no letters and no requests.

Willie Searcy’s case was a textbook example of “results oriented” justice that is common in Texas. Often, judges first determine the desired outcome of a case. Then they adapt the facts and the law to make it happen. It was also a glaring example of judicial activism, or making law from the bench, which is anathema to conservative Republicans — unless it serves their purposes, as it did in the Terri Schiavo case.

These rulings are not entirely informed by the justices’ love for certain principles of law. If the Texas Supreme Court is the most business-friendly bench in the nation — and it is — it’s because corporate interests pay for the justices’ election campaigns. Of the $175,328 Owen took in from the Texas defense bar while Willie Searcy’s case moved through the courts, she got $20,450 from Baker Botts, the mega-firm run by Bush family consigliere James A. Baker III. Baker Botts was part of Ford’s defense team. It was business as usual in Texas, where the defense bar now pours so much money into Supreme Court races that justices would be left sitting in their chambers if they recused themselves from cases in which their big donors are involved.

So Priscilla Owen is the perfect Bush appointee to the appellate bench. If she’s not particularly distinguished as a jurist — and she’s not — she has demonstrated her willingness to creatively interpret the law in service to both the business community and the extreme Christian right.

Owen was creative to the point of deviousness in the Searcy case. Her delay could be explained (at least in part) by the long, detailed opinion she decided to write. Yet the content of that opinion was as stunning as her ruling on a venue issue that hadn’t been briefed before the court. While Willie Searcy waited for the money that would provide him adequate healthcare, Owen and her clerks spent months laboring over a precedent-setting opinion for a statute that no longer existed. It had been replaced by the 1995 tort-reform bill Bush pushed through the Legislature.

Why would a justice write a precedent-setting opinion to clear up contradictions in a law that was no longer on the books? “Priscilla Owen poured [Willie Searcy] out,” the former court clerk said in the argot of civil litigation. Even Owen’s colleagues were remorseful. The day after the court’s decision, the entire court issued a rare addendum to the opinion: “[T]hese appeals should have been concluded months ago, we unanimously agree that the parties’ request [for an expedited decision] should have been granted.” The court had voted 5-4 against Willie Searcy. But it unanimously agreed to apologize for the unconscionable delay.

Ayres began the case again, this time in Dallas. Ruling on a point of law that wasn’t raised in the appeals and writing about a statute that no longer existed, Owen had put him there. Ford’s second round of procedural appeals finally ran out on June 29, 2001, when the Dallas Court of Appeals handed down a ruling that seemed to guarantee Susan Miles the money she needed to care for her son. The boy — who had (heroically) graduated from high school, wheeled from class to class by an attendant who monitored the ventilator that kept him breathing and held a transducer to his throat to allow him to “talk” — was now 21 and living by a system his parents had patched together.

Four days later, on July 3, the patchwork system of care unraveled. Willie’s night attendant left at 4 a.m. At 5 a.m. Susan Miles walked into her son’s bedroom and immediately realized that something was wrong. The ventilator was not working. “Aged out” of Medicaid at 21, Willie’s weekly nursing allotment had been reduced from 104 to 34 hours. His working-class parents didn’t have the resources to hire round-the-clock attendants or place him in a facility where he would have round-the-clock monitoring and care. What Jack Ayres had described nine years earlier as “a race to save this kid’s life” had become a marathon. But it was over.

At a Senate Judiciary Committee hearing — before Owen’s appointment was blocked by Democrats the first time around — Sen. Dianne Feinstein, D-Calif., asked Owen why the decision took so long while Willie Searcy’s life was in peril. Owen’s answer was straightforward and, for the record, honest.

“He didn’t pass away while his case was before my court,” she said.

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Broken Hammer?

Recent revelations of huge sums paid to family members have stung the GOP majority leader. But Tom DeLay was damaged goods long before that.

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Broken Hammer?

The laws of political gravity don’t seem to apply to Tom DeLay. If they did, the burden of scandal he bears would have sunk him long ago — and recently things have gotten even worse for the Republican majority leader from Texas. In the week before congressional Republicans made their rash intervention in the Terri Schiavo case, the Washington Post ran no fewer than seven Page One stories about DeLay. The only story that didn’t directly connect DeLay to scandal ran under the headline “DeLay Treated for Irregular Heartbeat.” More critical reporting followed after Schiavo’s death, while DeLay and Sen. John Cornyn, R-Texas, implied that judges had killed her.

The most recent stories about DeLay include accounts of:

  • A $106,921 educational and golfing trip that DeLay, his wife and staff took to Korea on the tab of a registered foreign agent — a violation of House rules. (The money was funneled through a Washington tax-exempt group and the trip arranged by longtime DeLay associate Jack Abramoff.)
  • A $70,000 golfing trip DeLay took to England and Scotland, paid for by lobbyists and $50,000 solicited from two Indian tribes. (The Indian money was solicited by Abramoff and moved through a Washington think tank he worked with.)
  • A $57,238 golfing trip to Moscow, underwritten by a Russian lobbying firm hired by a Russian oil and gas company trying to cultivate support in the U.S. Congress. (The money was funneled through the same Washington think tank connected to Abramoff, who traveled to Moscow with DeLay. The trip was arranged by the Rev. Ed Buckham, a lobbyist and former DeLay staffer and spiritual advisor, who also traveled with DeLay to Russia and Korea.)
  • Approximately $500,000 in political money paid as salaries to DeLay’s wife, Christine, and his daughter, Danni Ferro.

    It was not a good news week for “the Hammer.” But DeLay was damaged goods six months before any of these stories were reported. He had been admonished by the House Ethics Committee three times in the course of one month last year — a record for unincarcerated members of the House. Three political operatives (one a close associate) who run a Texas political action committee DeLay set up in 2001 are under indictment in Texas — one of them facing a 99-year sentence. Eight corporations have also been indicted for alleged illegal contributions to DeLay’s Texans for a Republican Majority PAC (TRMPAC).

    As was first reported here, DeLay himself accepted a $25,000 TRMPAC contribution from a Reliant Energy Corp. lobbyist. (The lobbyist, Drew Maloney, had served on DeLay’s House staff before moving on to K Street.) Previously I reported that the Williams Cos., one of the eight corporations under indictment in Texas, had addressed to “Congressman Tom DeLay” a letter conveying “$25,000 for the TRMPAC that we pledged at the June 2, 2002 fundraiser.” (Contributing or accepting corporate money for use in a political campaign is against Texas law.)

    This month a state district judge in Austin will hand down his decision in a civil case filed by five Democratic state house candidates targeted by DeLay’s PAC in the 2002 election. (For an account of that trial and a look at documents that will ultimately be introduced in the TRMPAC criminal trial, see Jake Bernstein’s article,“TRMPAC in Its Own Words,” in the April 1 issue of the Texas Observer. Bernstein and his colleague Dave Mann previously broke a pay-to-play story in which TRMPAC fundraisers offered donors specific legislation in return for their contributions.)

    While DeLay’s lawyers and political advisors in Washington nervously await a decision in the civil case involving TRMPAC, they also wonder if the other boot will drop in Texas. That is, will Travis District Attorney Ronnie Earle indict DeLay? The jury (or at least the grand jury) is still out on that one.

    But DeLay also has big problems in Washington, where Abramoff and DeLay’s former press aide Mike Scanlon, face not one but three separate investigations for an $82 million fraudulent billing scheme that involves six casino-rich Indian tribes.

    How, then, does Tom DeLay hang on to power?

    The answer to that question involves the two constituencies most indebted to Tom DeLay: The Republican members of the House who selected him to lead them in 2003 and (for the moment) continue to support him; and the Republican campaign and advocacy groups enriched by huge contributions from the same corporate lobbyists and clients who pick up the tab for DeLay, his family and staff to play golf in American Saipan, Scotland, England and Russia.

    The loyalty of House Republicans can be traced to 1994. Though he is routinely linked to Newt Gingrich, whose reform movement that same year promised to sweep corrupt Democrats from power, DeLay was never one of Newt’s revolutionaries. He had worked on the campaign of Ed Madigan, whom Gingrich defeated in a race for minority whip when Dick Cheney left the House to take a position in the administration of the first President Bush in 1989. Cheney had made DeLay a deputy whip. After DeLay backed Gingrich’s opponent in the whip race, Gingrich shut him out of the House leadership.

    By 1994, DeLay was back in the game. He formed a political action committee, Americans for a Republican Majority (ARMPAC), and raised $780,000 to invest in Republican House races. Gingrich surpassed him, raising $1.5 million, but DeLay had a second funding source — lobbyists. By his own admission, in that election he directed more than $2 million in lobby money to Republican candidates. The $2,780,000 bought him the loyalty of the most conservative congressional class elected in modern times.

    Since then, he has raised more political money than any other member of Congress and shrewdly spent it on House campaigns to build what he openly calls “a permanent Republican majority.” By 2003, when he was at the top of his game and didn’t have to compete with his own legal defense fund, DeLay was raising $12,785 a day, according to a report released by the campaign-finance reform group Democracy 21. Today, in a city where size matters, DeLay has a bigger PAC than House Speaker Dennis Hastert and Majority Whip Roy Blunt, both of whom came into House leadership as lieutenants on DeLay’s whip team.

    Hastert is particularly indebted to DeLay. He ran DeLay’s 1995 whip campaign and served as chief deputy whip while DeLay held that office. In 1998 DeLay used his 67-member whip organization to make Hastert speaker, after DeLay’s first choice to replace a disgraced Gingrich, Bob Livingston, quit the race when details about his marital infidelity were reported. DeLay has bought and paid for the loyalty of the House.

    DeLay’s lobby operation is more complicated but equally important to Republican Party hegemony. As described by American Enterprise Institute scholar Norman Ornstein, the K Street Project by which DeLay domesticated the corporate lobby is a “Tammany Hall operation” that ensures only Republicans are hired for big lobbying jobs that pay as much as $1 million a year. Once hired, “everyone is expected to contribute some of that money back into Republican campaigns,” Ornstein told me when I was working on a book on DeLay last year. According to Ornstein, DeLay and the K Street project have even locked up the entry-level lobby positions that pay from $150,000 to $250,000 a year — with the understanding that anyone who gets a job “maxes out” in contributions to Republican candidates and campaigns.

    DeLay laid the groundwork for the K Street project by calling corporate lobbyists into his office after he was elected whip in 1995. He sat them down and pointed to their names in a ledger that included contributions they had made to Democrats and Republicans. Then he reminded them that Republicans were in charge and their political giving had better reflect that — or else. The “or else” was a threat to cut off access to the Republican House leadership.

    By 1998, DeLay was telling K Street lobbying firms and trade associations they could hire no more Democrats. To underscore his point, he pulled an important intellectual-property rights bill off the House floor when the Electronics Industries Alliance hired former Rep. Dave McCurdy of Oklahoma. For this act DeLay was privately reprimanded by the House Ethics Committee. But he made his point. The fat lobby positions were henceforth reserved for Republicans. (The EIA refused to back down but negotiated a deal by which it would hire a Republican to work with McCurdy.)

    DeLay and the House leadership would later summon lobbyists it had put in positions of power on K Street and order them to work on behalf of the Republican agenda — including the G.W. Bush tax cuts. So corporate lobbyists became an extension of the Republican whip operation in the House. And, significantly, a profit center for the Republican Party and its ancillary advocacy groups.

    The junkets involving Tom DeLay, his wife, his staff and former staffers, are the perks the majority leader has earned for putting this huge funding operation in the field. DeLay has been traveling on the lobby tab for a decade now. But a year ago, two DeLay loyalists created a problem that might be more than even he can manage. The recent scandal involving DeLay’s longtime associate and fundraiser Jack Abramoff, and DeLay’s former press aide Mike Scanlon, provide a small glimpse into a huge and potentially scandalous Republican operation used to funnel lobby money, and money squeezed out of lobbyists’ clients, into accounts controlled by the party.

    In the recent Indian gaming scandal, Abramoff and Scanlon sold Tom DeLay’s operation to American Indian tribes desperate to protect their gambling operations, according to sources I talked to on three reservations. As proof of DeLay’s clout, Abramoff and Scanlon pointed to his role in killing a bill that threatened Indian gaming in 2001. In total, they billed the Indians an astonishing $82 million, more than twice what corporate clients such as General Electric paid for contract lobbying in the same three-year period. Once the two lobbyists established a revenue stream that provided for personal enrichment unlike anything they had ever imagined, they began paying what Sicilians call tributo to the people and organizations who made it all possible.

    For example, Abramoff raised $200,000 for George Bush’s presidential campaign and donated hundreds of thousands to other Republican candidates. Scanlon, who was paying off college loans when he left DeLay’s press office in 1999, contributed $500,000 to the Republican national governors’ organization in 2002 — the largest individual contribution the group received that year.

    Abramoff directed the Coushatta Tribe of southwestern Louisiana to contribute $100,000 to an environmental group set up by Gale Norton while she was secretary of the interior. He had the Coushattas donate $20,000 to DeLay’s Washington PAC. And $25,000 to Republican anti-tax activist Grover Norquist’s Americans for Tax Reform. (In return, the Coushattas got an invitation to a Norquist fundraiser held at the White House.) Suddenly, American Indian tribes that had traditionally made modest political contributions to Democrats were making huge contributions to Republicans. (The two lobbyists had no interest in dirt-poor Plains Indian tribes that operated no casinos.)

    So one lobbying organization that got too greedy threatens to sink DeLay’s K Street operation — and DeLay with it. When the remarkable reporting of Shawn Martin of the American Press in Lake Charles, La., made its way to the front page of the Washington Post, the majority leader was confronted with a crisis he couldn’t manage.

    To keep things under control for the moment, Hastert has replaced errant Republican members of the Ethics Committee who voted to admonish DeLay with one of his loyalists and two members who had contributed to DeLay’s legal defense fund. To further protect DeLay (and perhaps Rep. Bob Ney of Ohio, who took a $50,000 Scottish golf trip paid for Indians while he promised to carry a bill for a Texas tribe), Hastert changed the rule that required investigations to automatically begin 45 days after any member of the House files a complaint. An Ethics Committee investigation now requires a majority vote, and the committee is evenly divided between Democrats and Republicans.

    A year ago, Sen. John McCain began an aggressive Senate Indian Affairs investigation of Abramoff and Scanlon, which included the release of 100 pages of their internal documents, several of which indicated DeLay’s involvement. Recently, when it was reported that one Indian tribe had written $25,000 checks to Republican Sens. Sam Brownback and Conrad Burns, McCain reassured his colleagues that his investigation would be limited to the lobbyists — not members of Congress.

    DeLay can control the Congress. But he has problems with the courts and the press. Abramoff and Scanlon are also under investigation by two federal grand juries and a FBI task force that includes three other federal agencies. The Indian tribes are pursuing their own lawsuits. Criminal trials of DeLay’s Texas operatives will probably begin in the summer. DeLay’s two TRMPAC operatives also face a civil suit, as soon as they get their criminal proceeding behind them. Litigation provides journalists documents they can never otherwise obtain because, unlike lawyers, they have no subpoena power. The nation’s big news organizations are following paper trails to various DeLay scandals. The majority leader is beginning to look like a bad story about to break every week.

    Will DeLay survive? He brings in millions of dollars and is an indefatigable party builder who last year added six Texas seats to the Republican House majority by redrawing congressional district lines in Texas. So it’s hard for House Republicans to say goodbye. But as DeLay’s name becomes synonymous with political corruption, they might have no choice. If the party decides DeLay is too much a liability to carry into the off-year elections, a delegation of his colleagues will pay him a visit at his Capitol office just off Statuary Hall and thank him for all he’s done for the party.

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    All about DeLay

    The House majority leader's handprints figure prominently in a trial in Austin alleging the illegal use of soft money in Texas' 2002 election.

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    “It might surprise and even disappoint a few people to learn that this case is not about Tom DeLay.” So began Terry Scarborough’s opening argument for the defense in a civil suit against the treasurer of the political action committee Tom DeLay set up in Texas in 2001. The House majority leader won’t be in court in Austin, where a former Texas legislator who roomed with him 25 years ago, in the party house called “Macho Manor,” is defending himself in a suit filed by five Democrats who lost statehouse races in 2002. But no one looking for a DeLay connection to the proceedings could have been surprised or disappointed. In fact, after the first day in court, it’s surprising that no DeLay DNA sample was introduced into evidence and testimony that included an account of DeLay himself accepting an illegal $25,000 contribution.

    The five plaintiffs claim that DeLay’s Texans for a Republican Majority Political Action Committee raised and spent illegal corporate, or “soft,” money in the 2002 election in Texas. Specifically, they allege that of the $1.5 million TRMPAC spent in a campaign against 23 Democratic candidates for the Texas House, $723,737 was unreported soft money — which, with a few exceptions, cannot be spent in political campaigns in Texas. TRMPAC treasurer Bill Ceverha is the last defendant standing in the prelude to one more civil suit and a criminal case not yet on the docket in the state district court in Austin. (DeLay’s Washington political aide Jim Ellis and his Austin fundraiser John Colyandro have been dropped as defendants until the criminal case in which they have been indicted is resolved.)

    Another DeLay housemate from Macho Manor, Bill Hammond, is not a defendant in this lawsuit. But he will be defending himself and the Texas Association of Business in a separate suit involving similar allegations about illegal corporate money spent in the 2002 elections. (His attorney sat in the courtroom taking notes.) And while no one from the Texas Association of Business has been indicted, they are not home free yet. Travis County District Attorney Ronnie Earle is expected to hand down additional indictments before the criminal trial, which is expected to begin sometime this summer. The D.A. is also looking into the TAB’s use of corporate money to fund mailings and issue ads that targeted Democratic candidates, while not overtly advocating the election or defeat of any specific candidate.

    If the first day of this first trial provided any indication of what’s to come, the next six months will seem like an eternity for DeLay, even if he avoids indictment in Texas. Defense attorney Scarborough had it wrong. This is about DeLay. The Sugar Land, Texas, congressman who was known as “Hot Tub Tom” when he lived at Macho Manor, may not be in court in Austin, but the case — in fact the entire season of litigation — is all about him. “Tom DeLay was up to his eyeballs in it,” plaintiffs’ attorney Cris Feldman told National Public Radio reporter Wade Goodwyn a few days before the trial began. “It was Tom DeLay’s people, all the way down to his daughter, helping to run TRMPAC.”

    In court Feldman was more specific, revealing for the first time that some of the corporate money, $25,000 to be precise, was handed directly to DeLay. In his opening statement, Feldman referred to a Reliant Resources lobbyist giving the House majority leader $25,000. In the plaintiffs’ exhibits is a letter (I found it in those exhibits six months ago) from Oklahoma-based Williams Companies conveying an additional $25,000 contribution — addressed to “Congressman Tom DeLay.” Williams is one of eight corporations indicted by the Austin D.A. Reliant was not indicted but is accused by Earle of giving an illegal contribution to TRMPAC fundraiser Colyandro.

    The first TRMPAC document in the plaintiffs’ PowerPoint presentation included DeLay’s name at the top of a list describing the TRMPAC team. DeLay was placed at fundraising events in San Antonio and Houston. Warren Robold, one of the three individuals indicted by the Austin D.A., was identified as part of “DeLay’s network in Washington, D.C.” A Union Pacific lobbyist “needed a DeLay person to accompany him when he handed out checks.” And Danni Ferro’s role as event coordinator for TRMPAC was described by counsel for both the plaintiffs and the defendant. Ferro is DeLay’s daughter.

    Without Tom DeLay, Bill Ceverha and Bill Hammond wouldn’t be defending themselves in two separate lawsuits. And DeLay’s fundraisers in Austin wouldn’t be facing the prospect of prison sentences — one as long as 99 years. “DeLay is wrapped up in the fact pattern of the case,” Feldman said during an afternoon break. “You can’t explain what happened without including him.” It is still possible that the Travis County D.A. and grand jury will include DeLay in a second round of indictments expected to come down later this spring.

    This civil suit and the criminal case to come are all tied to DeLay’s calculated and successful attempt to win a GOP majority in the Texas House, where a Republican speaker would follow DeLay’s lead and redraw the state’s congressional lines. (Texas sent six new Republicans to Congress in the last election, expanding the party’s narrow majority there.)

    DeLay’s problems have been easier to manage in Washington. After he was admonished three times by the House Ethics Committee, DeLay and Speaker Dennis Hastert replaced the Republican committee chairman, Colorado’s Joel Hefley, and added two new members to the committee, both of whom had made contributions to DeLay’s legal defense fund. While stacking the deck, the House leadership also rewrote the committee’s rules, ending the practice of automatically beginning an investigation 45 days after a complaint is filed. Investigations now require a majority vote, and the Ethics Committee is the only committee in the House that is evenly divided between Democrats and Republicans.

    It won’t be so easy to game the system in Austin. In 28 years in office, D.A. Earle, a Democrat, has built a career on prosecuting political corruption — mostly targeting members of his own party. He hasn’t faltered under constant public attacks from Republican legislators in Texas, who have threatened to cut the funds for his Public Integrity Unit. And he has taken his fight to the Op-Ed pages of the New York Times when Republicans in Congress have criticized him.

    On the stand Monday the avuncular Ceverha used the Bernie Ebbers (former WorldCom CEO) defense, pleading ignorance of the day-to-day operations of the organization he directed. Decisions were made by DeLay’s handpicked operatives, Ceverha insisted; he had nothing to do with running the PAC while he served as treasurer. (Much of his defense was a calculated attempt to hold the already indicted Colyandro responsible for most of the PAC’s decisions.) The argument was credible. After all, the most culpable defendants had managed to avoid their day in court by getting themselves indicted on criminal charges. Their day will probably occur sometime this summer.

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    The decay of DeLay

    New and spreading scandals plague House Majority Leader Tom DeLay and his political empire.

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    The decay of DeLay

    September was a bad month for House Majority Leader Tom DeLay of Texas. The year to come will likely be worse.

    On Sept. 30, the House Ethics Committee issued a 62-page report rebuking DeLay for trading support for the congressional candidacy of the son of retiring Rep. Nick Smith, R-Mich., in exchange for Smith’s vote on Bush’s Medicare bill. “It is improper for a member to offer or link support for the personal interests of another member as part of a quid pro quo to achieve a legislative goal,” the committee reported.

    Back in 1996 DeLay got a walk in a fundraising scandal involving a front group known as Triad. That scandal cost a Texas businessman $400,000 in fines and resulted in an FBI investigation. But what the FBI turned up was never revealed because then-House Government Reform chairman Dan Burton, R-Ind., blocked attempts by the ranking Democrat on the Committee, Henry Waxman, D-Calif., to subpoena the FBI notes and files.

    Now the story of the fundraising operation known as DeLay Inc. might not have such a happy ending. While he got a pass in Washington in the Triad affair, DeLay might be doing a perp walk in 2005 in Austin, where three of his fundraisers may be headed for the Big Rodeo and the corporations that wrote checks will be dragged before a jury on charges of making illegal political contributions. And there’s more. Two of the majority leader’s closest associates in Washington could soon be facing federal indictments for an Indian gaming scandal. Both have already been called to appear before a Senate committee, which held its first hearing on the Indian lobby fee scandal earlier this week.

    Ronnie Earle, the district attorney who has held office for a quarter of a century in the Texas capital, indicted the three DeLay associates and eight corporations for soliciting and making illegal campaign contributions in September. DeLay’s recent Texas dealings look like the Peter Cloeren story on a grand scale. More recently, DeLay and his Washington political operative Jim Ellis devised a much larger scheme to move money from corporations into the campaigns of Republican candidates for the Texas state House, which had been in Democratic hands for 130 years. With a Republican majority in the House, they eliminated the only obstacle stopping DeLay from presiding over the redrawing of the state’s congressional district maps to create as many as seven seats likely to be won by Republicans.

    Ellis, his Texas connection Jim Colyrando, and Warren Robold, a Washington fundraiser who worked for DeLay’s political action committee, found corporate funding “vehicles” all over the country. The corporate donors were willing to invest in Texas state House races where they did little or no business in order to cultivate the favor of the majority leader. Donors were even assured that their contributions were “non-disclosable according to relevant state laws.” And the contributions weren’t disclosed in Texas. Texans for a Republican Majority (TRMPAC) listed corporate contributions only with the IRS.

    There was one problem with the scheme. It’s against the law to donate or spend corporate money on political campaigns in Texas. When the Austin district attorney realized what was going on he began an investigation. As the second grand jury that looked at the case concluded its extended term in mid-September, he handed down his indictments. DeLay didn’t make the cut. But Earle seems to be employing what might be called a proctological prosecution strategy, a back-door approach that might yet lead to the majority leader himself.

    One letter from a corporate donor points directly toward DeLay — at least in its salutation, where a vice president of an Oklahoma natural gas company writes: “Dear Congressman DeLay: I am pleased to forward our contribution of $25,000 for the TRMPAC that we pledged at the June 2, 2002 fundraiser.” The letter is an exhibit in a civil suit filed against TRMPAC. It’s likely the D.A. will also have it and others like it. Williams Company Inc., the corporation that made the contribution, was one of the eight indicted in Austin.

    Two weeks after DeLay’s associates were indicted in Texas, the Senate Indian Affairs Committee began an investigation of two DeLay associates who billed six Indian tribes a staggering $66 million in lobbying fees, after promising tribal leaders that their proximity to DeLay equaled unparalleled influence in Washington. The story, broken by Shawn Martin at the quite literally backwater American Press in Lake Charles, La., less than a year ago, quickly found its way to the front page of the Washington Post.

    Jack Abramoff, a member of DeLay’s “kitchen cabinet,” and DeLay’s former press secretary Mike Scanlon billed their Indian clients twice as much as companies such as General Electric paid for outside lobbyists in the same time period. The tribes were paying the two Washington operatives — who in private e-mails referred to the Indians as “troglodytes,” “monkeys” and “moronic” — to defend their casinos. Two U.S. attorneys in Washington and a federal grand jury are also looking into Abramoff and Scanlon, who are not only frequent fliers to gaming reservations around the country but also frequent contributors to Republican candidates and think tanks.

    When the story broke, DeLay denounced his longtime friend Abramoff, telling reporters that Abramoff had never been on his payroll. He also warned anyone using his name to attract lobby clients to “stop it immediately.” The warning came a little too late for tribal leaders slickered by Abramoff and Scanlon.

    Everybody has lawyered up. Nobody’s talking — except when compelled to do so by state and federal prosecutors and the investigator that Sen. John McCain has assigned from the Senate Indian Affairs Committee to the case. And the upcoming 109th Congress is beginning to look like the longest two years in Tom DeLay’s political life.

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