Abramoff pleads guilty to fraud

WASHINGTON (Reuters) - Lobbyist Jack Abramoff pleaded guilty to fraud charges on Tuesday and agreed to help U.S. prosecutors in a corruption probe that could involve several top Republican lawmakers, including former House Majority Leader Tom DeLay.

Abramoff pleaded guilty to conspiracy, mail fraud and tax evasion before a federal judge in Washington. He also will plead guilty to conspiracy and wire fraud in a separate case in Miami on Wednesday, his lawyer there said.

The long-expected plea will give prosecutors valuable ammunition as they seek to prove that DeLay of Texas, Republican Rep. Bob Ney of Ohio and other top lawmakers gave Abramoff and his lobbying clients favorable treatment in return for campaign contributions, Super Bowl tickets and other gifts.

"Abramoff provided these things of value with the intent and often with the understanding that his clients would receive the official action they wanted," Assistant Attorney General Alice Fisher said at a press conference. "As admitted by Abramoff, his actions often produced the official influence that he sought."

Republican and Democratic lawmakers seeking to distance themselves from Abramoff and his clients have returned more than $200,000 in campaign contributions in recent weeks.

Abramoff, 47, faces a maximum sentence of 30 years, but under the terms of the plea deal it will be reduced to between 9 1/2 and 11 years. The sentence could be reduced even further if Abramoff cooperates fully, a Justice Department official said.

As part of the plea deal, Abramoff together with former partner Michael Scanlon will pay at least $25 million in restitution, and Abramoff will pay $1.7 million to the Internal Revenue Service for tax evasion.

REGRET, SORROW

Wearing a double-breasted, charcoal-colored suit, Abramoff answered Judge Ellen Segal Huvelle's questions in a hushed voice.

"I have profound regret and sorrow for the multitude of mistakes and harm I have caused. All of my remaining days, I will feel tremendous sadness and regret for my conduct and for what I have done," Abramoff said in a prepared statement.

According to the charges, Abramoff directed his Indian-tribe clients to hire Scanlon's public-relations firm at steep costs. Scanlon, a former DeLay aide, then secretly kicked back 50 percent of the $53 million he earned to Abramoff.

The two used the money to shower golf trips, lavish dinners and other favors on lawmakers. They also kept much of it for themselves.

Scanlon pleaded guilty to conspiracy in November and has been cooperating with investigators.

According to the charges, one unidentified lawmaker agreed to support legislation sought by Abramoff, place statements supporting him in the Congressional Record -- the official daily report on congressional proceedings -- and give one of his clients a contract to provide wireless telephone service to the House of Representatives.

That description matches actions taken by Ney, who inserted comments supporting Abramoff into the Congressional Record and who oversees routine matters like wireless service in congressional buildings as chairman of the House Administration Committee.

Ney's attorney Mark Tuohey was not available for comment.

The Justice Department's Fisher would not say how many officials are implicated in the probe.

"We are going to follow this wherever it goes. We are going to expend the resources that are necessary to make sure that people know that government is not for sale," she said.

DeLay attorney Dick DeGuerin said the Abramoff investigation would not uncover any wrongdoing by his client.

"Everything that Tom DeLay has done is above board," he told MSNBC, adding that early on, DeLay had offered the Justice Department cooperation in the investigation.

The charges are separate from those pending against Abramoff in Florida, where he has been charged in connection with falsifying a loan in the purchase of a Florida casino cruise line.

In an e-mail, Abramoff attorney Neal Sonnett said that Abramoff would plead guilty in Miami on Wednesday to wire fraud and conspiracy to commit wire fraud, while other charges would be dropped as part of the plea deal.

The FBI launched its investigation of Abramoff and Scanlon in March 2004, said Chris Swecker, head of the FBI's criminal investigative division.

Abramoff first contacted the Justice Department to discuss a plea a year and a half ago, Abramoff's Washington attorney Abbe Lowell said.

(Additional reporting by Jim Vicini and Deborah Charles)