Associate of DeLay's pleads not guilty
Lobbyist is accused of fraud in casino deal
By JAY WEAVER
The Miami Herald
MIAMI - Washington lobbyist Jack Abramoff, a key figure in ethics investigations involving U.S. House Majority Leader Tom DeLay, pleaded not guilty Monday to charges he defrauded lenders in a casino cruise line deal.
Abramoff, charged along with a New York business partner in an alleged scheme to defraud lenders in the $147 million purchase of SunCruz Neal Sonnett, Abramoff's attorney, obtained a waiver so the Baltimore-area resident did not have to make the trip. Abramoff is out on bond.
"Our defense is that he committed no fraud," Sonnett said outside of court.
According to an indictment, Abramoff and business partner Adam Kidan lied to lenders to qualify for a $60 million loan to buy the Broward County, Fla., casino fleet from Konstantinos "Gus" Boulis. He was the former SunCruz owner, gunned down in February 2001 just months after the sale.
Prosecutors allege that the pair were required to invest $23 million to qualify for the financing but made no down payment in the SunCruz deal — although Abramoff's lawyer claims it was Kidan who was supposed to put up all that money.
Kidan, 41, has pleaded not guilty to the mail- and wire-fraud charges. The allegations against the business partners have reverberated nationwide.
Abramoff, 46, is at the center of separate federal investigations involving his GOP fundraising activities and his representation of Indian tribes that own casinos.
According to court records, both men siphoned off some of SunCruz's income to collect $500,000 salaries and pay for private boxes at FedEx Field, MCI Center and Orioles Park at Camden Yards to entertain Republican donors and politicians. Among them: DeLay, R-Sugar Land.
In Fort Lauderdale, Fla., police have sent letters to both Kidan and Abramoff, asking them to talk with investigators about the Boulis killing.
"We will deal with the Fort Lauderdale police in due course," Sonnett said.Casinos, did not appear at his arraignment.
