Nov. 21 (Bloomberg) -- Michael Scanlon, a former associate of lobbyist Jack Abramoff, pleaded guilty to conspiring to corrupt public officials and defraud clients, clearing the way for his cooperation in an investigation of his one-time partner.
U.S. District Judge Ellen Segal Huvelle today accepted a plea agreement proposed by the Justice Department and Scanlon, which may help prosecutors widen the probe to include lawmakers. The Justice Department asked that sentencing be delayed while Scanlon cooperates. He faces a maximum of five years in prison, a $250,000 fine and repayment of $19.7 million to clients.
Scanlon, 35, will help prosecutors make their case against Abramoff and investigate his contacts in and around Capitol Hill. Scanlon, a one-time aide to former House Majority Leader Tom DeLay, had intimate knowledge of Abramoff's dealings.
``They're using Scanlon to get everybody,'' said Melanie Sloan, a former federal prosecutor who now heads Citizens for Responsibility and Ethics in Washington, an advocacy group. ``That's how it works. You keep rolling people. I'm sure Tom DeLay is unhappy today to hear Michael Scanlon has made a deal.''
Abramoff's former role as a leading Republican lobbyist may add to the difficulties already facing his party. President George W. Bush's popularity is at a record low as the death toll mounts in Iraq and scandals shake Congress and the White House. Last month, White House aide I. Lewis Libby was indicted in a probe of the disclosure of a covert CIA agent's identity. DeLay was charged with money laundering in Texas, his home state.
Conspiracy
Scanlon is accused of conspiring with ``Lobbyist A'' -- identified as Abramoff by a person close to the investigation -- to buy off public officials and bilk casino-owning Indian-tribe clients out of millions of dollars. Scanlon's net profit from the four tribes was $39.4 million, and he kicked back the $19.7 million to Abramoff, according to the plea agreement.
Scanlon declined to comment to reporters after the hearing other than to say, ``You guys will be seeing me around.'' His lawyer, Plato Cacheris, said Scanlon is trying to make amends.
In a sign that the investigation may engulf lawmakers as well, the Justice Department complaint mentions ``Representative #1'' who took a trip to Scotland with Scanlon and helped in ``advancing the application'' of an Abramoff client who sought to install a cellular-phone network in the U.S. Capitol.
