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Abramoff ex-partner pleads guilty in Florida case

Posted on: Thursday, 15 December 2005, 19:42 CST

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.

Source: REUTERS

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