MIAMI (Aug. 11) -- Federal prosecutors are seeking bank fraud charges against lobbyist Jack Abramoff, a key figure in investigations involving House Majority Leader Tom DeLay, The Associated Press learned Thursday.
The charges stem from the 2000 purchase by Abramoff and his partners of SunCruz Casinos and the alleged use of a fake wire transfer of $23 million aimed at influencing lenders to provide millions of dollars for the deal. Exact details of the charges were not immediately available.
A grand jury, meeting in Miami, could hand up indictments against Abramoff as early as Thursday, federal law enforcement sources said. They spoke on condition of anonymity because the grand jury indictment had not been finalized.
Abramoff's Miami attorney, Neal Sonnett, said he had not been informed of any charges but said that Abramoff was not involved in any fraud. Abramoff had previously been notified that he was a target of the investigation.
The partners bought SunCruz, which runs a fleet of gambling boats, from entrepreneur Konstantinos "Gus" Boulis for $147 million in September 2000, but the deal soon fell apart. Amid bitter legal fighting over the sale, Boulis was shot to death in February 2001 what police called a hit. The Fort Lauderdale killing has never been solved.
Abramoff is also under federal investigation in Washington by a grand jury investigating whether he and a lobbying partner overcharged Indian tribes by millions of dollars for their work.
DeLay, R-Texas, was not mentioned in any lawsuits involved in the SunCruz deal.
DeLay has asked the House Ethics Committee to review allegations that Abramoff or his clients paid some of DeLay's overseas travel expenses. DeLay has denied knowing that the expenses were paid by Abramoff, whom he once described as "one of my closest and dearest friends."
The SunCruz fleet of 11 ships had 2,300 slot machines and 175 gaming tables and sailed from nine Florida ports and Myrtle Beach, S.C., to international waters. The company continues to operate gambling cruises under new ownership after emerging from bankruptcy.
Boulis also founded the Miami Subs restaurant chain.
So Abramoff and his partners wanted to purchase this SunCruz Casinos for $147 million from this entrepreneur Boulis in September of 2000. But Abramoff needed cash and financing for the purchase of SunCruz Casinos. In order to get the financing, Abramoff used this fake wire transfer of $23 million to defraud the lenders into providing money for this deal. But the deal fell apart over the legal wranglings of the terms of the sale, and Boulis was murdered in a hit. SunCruz Casinos went bankrupt and has emerged under a new ownership. One question I do have about this story is who were the lenders that Abramoff tried to push this wire fraud on? Boulis created this business of gambling casino cruise ships, but was then killed in a hit after the sale of SunCruz fell apart? This hit on Boulis has organized crime behind it--either Boulis had financed building SunCruz with mob money, or Abramoff was selling the financing of SunCruz to someone, or some company with mob connections Someone was angry because they lost money on this deal, and Boulis was blamed for it. Of course, this brings up the legal fighting over the terms of the sale--what was that fight over? What was that dispute? Was Boulis stalling for more money? What did Abramoff and his partners want regarding the terms of the sale?
Of course this fight over the sale of SunCruz Casinos brings up even bigger questions regarding Abramoff. Who were Abramoff's partners in this purchase of SunCruz? What did they know about this fraudulent wire transfer? Since Abramoff worked as a lobbyist for Indian gaming casinos, you have to wonder what links there are between Abramoff, his SunCruz partners, and possible members of Congress. Abramoff and DeLay have already been linked to House ethics investigations. This SunCruz indictments certainly doesn't help Abramoff regarding his relationship with Tom DeLay.
So many questions here.
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