New York Newsday reports what's been steadily gaining steam for about a week, that former SunCruz co-owner Adam Kidan will plead guilty to one count each of conspiracy, wire fraud and mail fraud.
The agreement is part of a plea bargain in which Adam Kidan, 41, will plead guilty to conspiracy and wire fraud in the 2000 takeover, along with his former partner Abramoff, of the $147.5-million SunCruz fleet of offshore gambling cruise ships, said sources familiar with the plea agreement. The agreement is expected to put further pressure on Abramoff, whose knowledge of goings-on on Capitol Hill is far wider than Kidan's, to cooperate.
This now makes two former SunCruz associates who will testify against Abramoff when the trial begins next month:
A third associate in the takeover, Michael Scanlon, former House majority leader Tom DeLay's onetime press secretary, pleaded guilty last month to bribing an unnamed congressman in matters growing out of the SunCruz collapse and agreed to cooperate. After the split with Kidan following the bankruptcy of SunCruz in 2001, Abramoff and Scanlon went on to represent Indian tribes on gambling issues. In his plea, Scanlon agreed to cooperate in future investigations and also agreed with a court statement that "beginning at least as early as January 2000, provided a stream of things of value to public officials in exchange for a series of official acts and influence and agreements to provide official action and influence."
Kidan, along with Scanlon, also look to cooperate with investigators in regards to their influencing legislators:
Among the congressmen Kidan had direct dealings with at SunCruz are Reps. Robert Ney (R-Ohio) and John Doolittle (R-Calif.) and Sen. Conrad Burns (R-Mont.). Ney has acknowledged he worked with Scanlon in helping SunCruz, but he denies he did anything illegal, as have the other elected officials. In 2000 at the behest of Scanlon, Ney helped pressure Boulis to sell by inserting into the Congressional Record a speech attacking Boulis. And after Boulis sold his interest to Kidan and Abramoff, Ney said in the Congressional Record that the new owner of the "questionable enterprise" had a "reputation for honesty and integrity."
Kidan will also cooperate in the Gus Boulis murder trial:
The sources say that prosecutors do not believe Kidan or Abramoff were involved in the murder. The three charged with the murder, including a Howard Beach associate of the Gottis, supposedly felt that with Boulis out of the picture, they could use their organized-crime aura to milk a steady income out of Abramoff and Kidan and SunCruz.
In return for his plea and cooperation, Kidan could get as little as a year in prison, as opposed to the 10 years or more if convicted, the sources said.
However, if Kidan and Abramoff were involved in the murder (as has been reported previously), now would be the perfect time for those charged to divulge what they know and cooperate.
ABC News reports that yet another Abramoff associate is cooperating with investigators, albeit a lesser figure in Texas political consultant Marc Schwartz. Schwartz looks to be a dagger for Ney, though:
"I think that Congressman Ney had better get right with his God," said
Texas political consultant Marc Schwartz. Schwartz, who had extensive dealings with Abramoff and Scanlon, is cooperating in the federal investigation. In his first television interview, Schwartz tells "Nightline's" Chris Bury that Scanlon's testimony could be damaging for Ney.
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"[Ney] agreed to put language into the bill on the House side and would help [the Tigua Indians of El Paso], help the tribe in making sure that the language stayed and that this change would be affected," Schwartz said.
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When "Nightline" asked Schwartz whether he believed it was a quid pro quo arrangement, in which a congressman was getting a certain amount of money in order to achieve a certain piece of legislation, he responded: "As I see it today, certainly yes."
"Nightline" asked him if it was a bribe. "Yes," Schwartz said.
Update [2005-12-15 16:59:10 by jorndorff]: From the South Florida Sun-Sentinel:
Kidan pleaded guilty to conspiracy and wire fraud. The other two felony counts in the indictment were dropped as part of his plea deal. He faces a maximum of 10 years in prison at sentencing set for March 1.
Kidan only spoke to respond to Huck's question on how he would plead. ``Guilty, your honor,'' he said.
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``We'll have to see what impact it has, if any,'' said Abramoff's attorney, Neal Sonnett, regarding Kidan's plea. He declined further comment.
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Moscatiello, who worked for Kidan and allegedly has ties to New York's Gambino crime family, told police in an interview after his arrest that Kidan may have been involved, something Kidan has denied. Kidan has not been charged.