US DoJ: Kidan & Abramoff Indicted on Charges of Conspiracy and Wire Fraud

[paineinthearse]

It can't get any better than when the news source is the Justice Department itself! See DNC response at http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=2002866&mesg_id=2002866

http://releases.usnewswire.com/GetRelease.asp?id=51625

Adam R. Kidan and Jack A. Abramoff Indicted on Charges of Conspiracy and Wire Fraud

8/11/2005 5:36:00 PM


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To: National Desk

Contact: U.S. Department of Justice Office of Public Affairs, 305-961-9000

WASHINGTON, Aug. 11 /U.S. Newswire/ -- R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Michael S. Clemens, special agent in Charge of the Miami Division of the Federal Bureau of Investigation, announced today the return of an Indictment by a federal grand jury sitting in Ft. Lauderdale charging defendants, Adam R. Kidan and Jack A. Abramoff, with Conspiracy to Commit Wire Fraud and Mail Fraud, in violation of Title 18, United States Code, Section 371, and five (5) counts of Wire Fraud, in violation of Title 18, United States Code, Section 1343. The Indictment also seeks criminal forfeiture in the approximate amount of $60 million. The statutory maximum penalty for each of the six (6) counts contained in the Indictment is five (5) years' imprisonment and a $250,000 fine.

As alleged in the Indictment, in February 2000, Konstantinos (Gus) Boulis agreed to divest himself of his ownership interest in SunCruz Casinos ("SunCruz"). That June, the defendants sought financing for the purchase of SunCruz from Foothill Capital Corporation, in conjunction with Citadel Equity Fund, Ltd. As a condition for providing financing, Foothill and Citadel required that the defendants make a cash $23 million equity contribution toward the purchase of SunCruz.

According to the Indictment, on Sept. 21, 2000, the defendants executed an agreement to purchase SunCruz for $147.5 million. This Purchase Agreement provides that "Buyer shall pay to Seller the amount of Buyer's financing plus Buyer's equity contribution in the sum of Twenty Three Million Dollars ($23,000,000) . . . by means of a cashier's check or wire transfer ..." To provide financing, the defendants executed with Foothill and Citadel a $60 million loan agreement that likewise required "evidence satisfactory to (the lenders) that Adam Kidan and Jack Abramoff have made an equity contribution to (SunCruz) in cash in an amount no less than $23,000,000."

The Indictment further alleges that, as evidence that they made the cash equity contribution, the defendants sent the lenders a copy of a wire funds transfer notification reflecting that $23 million had been transferred to the account of Gus Boulis in Miami, Florida. That document was counterfeit; the defendants never transferred these funds and never made a cash equity contribution toward the purchase of SunCruz. In addition, as part of the loan application, both defendants provided personal financial statements that contained false information concerning their respective assets and liabilities.

On Sept. 27, 2000, Foothill and Citadel funded approximately $60 million in loans toward the $147.5 million purchase of SunCruz, according to the allegations in the Indictment. These lenders relied upon the false financial statements and the counterfeit copy of the wire funds transfer to approve and fund the loan.

U.S. Attorney Acosta stated, "Preserving the integrity of our financial system is a top priority of the Department of Justice. Today's announcement highlights our efforts in the Southern District of Florida to vigorously prosecute corporate fraud and related criminal activities."

FBI Special Agent in Charge Clemens stated, "This Indictment is the culmination of a complex financial investigation and demonstrates that regardless of position, status, wealth, or associations, fraudulent activity will not be tolerated."

Acosta commended the investigative efforts of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Lawrence D. LaVecchio and Paul F. Schwartz.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ or on http://pacer.flsd.uscourts.gov/.

http://www.usnewswire.com/

[joemurphy]

1. Hooray!!!! n/t

[Gabi Hayes]

2. when's * going to fire THEM? you heard about the Guam prosecutor?

Abramoff is either going to split, get pardoned, or get dead

he knows WAY too much

[paineinthearse]

4. Guam prosecutor?

Haven't heard that term.

[paineinthearse]

3. Related news release from Citizens for Responsibility and Ethics in Wash.

http://releases.usnewswire.com/GetRelease.asp?id=51619

CREW: Jack Abramoff Indicted for Bank Fraud in Connection with Purchase of SunCruz Gambling Ships; Rep. Bob Ney Directly Assisted Indicted Lobbyist With Purchase - Received Donations From Abramoff and Kidan Shortly Thereafter

8/11/2005 3:54:00 PM


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To: National Desk

Contact: Naomi Seligman of Citizens for Responsibility and Ethics in Washington, 202-588-5565

WASHINGTON, Aug. 11 /U.S. Newswire/ -- Earlier today, lobbyist Jack Abramoff was indicted for bank fraud in connection with his 2000 purchase of the SunCruz gambling ships from Greek millionaire Gus Boulis. To finance the purchase, Abramoff and his partner Adam Kidan were required by Foothill Capitol to put up $23 million in cash to secure the loan. Abramoff and Kidan signed sworn documents, provided to Foothill Capitol at closing, attesting that they had paid Boulis the $23 million. In fact, Abramoff and Kidan never paid Boulis and by October 2000, Boulis was threatening to sue. In January 2001, Boulis did file suit, but in February 2001, he was murdered in an unsolved gang-land style homicide.

Rep. Bob Ney (R-Ohio) also played a role in the deal. On March 30, 2000, Ney inserted a statement into the Congressional Record, criticizing Boulis and his management of SunCruz. On June 30, 2000, Kidan, Abramoff, Abramoff's wife and Michael Scanlon, a former DeLay aide, each made $1,000 contributions to Ney's re-election campaign. On Oct. 26, 2000, Ney again inserted remarks about SunCruz into the Congressional record. This time he praised the leadership of the new owners claiming that Kidan had a "renown reputation for honesty and integrity." In fact, Kidan had been disbarred in New York after misappropriating money in a business deal and he had ties to organized crime figures.

In addition, shortly after Kidan and Abramoff purchased the ships, Abramoff leased a corporate jet to ferry congressional staffers down to Tampa for the Superbowl and to gamble aboard a SunCruz ship. Among those on the trip were Tim Berry, then Rep. Tom DeLay's chief of staff, DeLay's former deputy chief of staff, Tony Rudy, and two staffers for Senator Conrad Burns.

Melanie Sloan, executive director of Citizens for Responsibility and Ethics in Washington (CREW) stated, "An indictment is just the first step in the ever-evolving scandal involving Abramoff and the GOP Leadership. Now, Rep. Ney has some explaining to do. Given that Rep. Ney knew enough about SunCruz, Adam Kidan and Gus Boulis to insert comments about them in the Congressional Record, the House ethics committee should find out what else Rep. Ney knew about Abramoff's illegal activities."

CREW has details on Members of Congress dealings with Abramoff on http://www.jackinthehouse.org.

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Citizens for Responsibility and Ethics in Washington (CREW) is a non-profit, progressive legal watchdog group dedicated to holding public officials accountable for their actions. CREW drafted the complaint against Tom DeLay, filed by former Rep. Chris Bell, for which DeLay was admonished last year.

For more information, please visit http://www.citizensforethics.org or contact Naomi Seligman at 202-588-5565 or [e-mail].

http://www.usnewswire.com/

[Independent_Liberal]

5. Great news!

I couldn't be any happier!

:)

[paineinthearse]

6. You will be.....

When they are convicted and sentenced!

[paineinthearse]

7. .

:kick:

[napi21]

8. I'M THRILLED! But, have to ask...How can someone be this stupid???

I worked forensic accounting for several years, and it nevver ceases to amaze me how stupid people are when they leave solid paper trails of their activities!

To submit a fradulent copy of a bank wire transfer that was NEVER MADE is really tops in arrogant stupidity!!!!

If Abrramhoff was as dumb as this in his other activities with Reps and Sens, he and his co-conspirators will be bunking buddies for many many years!