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Insiders Worked Both Sides of Gaming Issue

27 September 2004

WASHINGTON, D.C. – As reported by the Washington Post: "Washington lobbyist Jack Abramoff and public relations consultant Michael Scanlon quietly worked with conservative religious activist Ralph Reed to help the state of Texas shut down an Indian tribe's casino in 2002, then the two quickly persuaded the tribe to pay $4.2 million to try to get Congress to reopen it.

"Dozens of e-mails written by the three men and obtained by The Washington Post show how they built public support for then-Texas Attorney General John Cornyn's effort get the courts to close the Tigua tribe's Speaking Rock Casino in El Paso in late 2001 and early 2002. The e-mails also reveal what appears to be an effort on the part of Abramoff and Scanlon to then exploit the financial crisis they were helping to create for the tribe by securing both the multimillion-dollar fee and $300,000 in federal political contributions, which the tribe paid.

"Ten days after the Tigua Indians' $60 million-a-year casino was shuttered in February 2002, Abramoff wrote a tribal representative that he would get Republicans in Congress to rectify the 'gross indignity perpetuated by the Texas state authorities,' assuring him that he had already lined up 'a couple of Senators willing to ram this through,' according to the e-mails.

"What he did not reveal was that he and Scanlon had been paying Reed, an avowed foe of gambling, to encourage public support for Cornyn's effort to close two Indian casinos in Texas. Abramoff, one of Washington's powerhouse Republican lobbyists until his work came under scrutiny by law enforcement agencies this year, has long been close to Reed, former executive director of the Christian Coalition and now southern regional chairman of President Bush's reelection campaign.

"…The large lobbying and public relations fees Abramoff and Scanlon garnered from Indian tribes that operate gambling casinos -- known to total at least $50 million -- are the subject of a grand jury investigation in Washington…"

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