Abramoff ex-partner pleads guilty in Florida case

By Jim Loney

MIAMI (Reuters) – A former business partner of prominent
Washington lobbyist Jack Abramoff pleaded guilty on Thursday to
fraud and conspiracy in a case involving the purchase of a
Florida casino cruise line.

In addition to his plea, New York businessman Adam Kidan
said through his lawyer that he would testify in Abramoff’s
trial next month, making him the second former associate of the
Republican fund-raiser to make that deal with prosecutors.

The case against Abramoff and Kidan has gained wide
attention in Washington because Abramoff has close ties to
former House Majority Leader Tom DeLay of Texas, a Republican,
and is a central figure in influence-buying investigations.

Kidan, 41, entered the guilty plea in a Miami federal court
to one count of conspiracy and one of wire fraud, each of which
carries a possible sentence of five years in prison. U.S.
District Judge Paul Huck accepted the plea and set sentencing
for March 1.

Outside the courthouse after the hearing, Kidan’s lawyer,
Joseph Conway, said his client conspired with Abramoff in the
fraud and was willing to testify in Abramoff’s trial next
month.

“If the government is prepared to call him as a witness, he
is prepared to testify,” Conway said. He did not allow Kidan to
talk to reporters.

Abramoff spokesman Andrew Blum declined comment.

Kidan and Abramoff were indicted in August on allegations
they duped specialty lenders Foothill Capital and Citadel
Equity Fund Ltd. by pledging to invest $23 million in the
$147.5 million purchase of SunCruz Casino five years ago in
return for a $60 million loan.

COUNTERFEIT DOCUMENT

The indictment said the two offered a counterfeit wire
transfer document as proof they had invested the money.

“Mr. Kidan has acknowledged today that he, together with
his co-defendant, Jack Abramoff, made false representations to
lenders to induce those lenders into making loans,” Conway
said. “Specifically, Mr. Kidan conspired with Mr. Abramoff to
submit documentation showing the payment of $23 million when in
fact they had made no such payment.”

Asked by Huck in court if he had done what the government
alleged, Kidan said, “Yes, your honor.” He acknowledged he was
cooperating with government investigators.

Abramoff and Kidan bought the casino cruise empire from
Konstantinos “Gus” Boulis, a Greek immigrant entrepreneur who
built the cruise line and the Miami Subs restaurant chain. He
was shot to death in his car on a Fort Lauderdale street in
2001.

Conway said his client had no knowledge of Boulis’ murder.
Three men were arrested in September in connection with the
gangland-style killing.

Michael Scanlon, once a partner of Abramoff and a former
top aide of DeLay, has pleaded guilty to conspiracy in
defrauding Indian tribes of millions of dollars and lavishing
gifts on a member of Congress.

Scanlon’s plea, in which he agreed to cooperate with
prosecutors, was seen as a major lift to prosecutors’ efforts
to investigate suspected influence-buying involving Abramoff,
members of Congress and government agencies.