Ohio lawmaker Ney admits guilt in congressional corruption probe
By Ted Bridis, ASSOCIATED PRESS, September 15, 2006

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WASHINGTON – Ohio Rep. Bob Ney admitted improperly accepting tens of thousands of dollars worth of trips, meals, sports tickets and casino chips while trying to win favors for a disgraced Washington lobbyist and a foreign aviation company run by a gambler known as “the Fat Man.”

Ney, a six-term Republican, had defiantly denied any wrongdoing for months, but he reversed course and agreed to plead guilty in court papers filed Friday. Prosecutors will recommend he serve 27 months in prison. Ney was expected to formally plead guilty in court Oct. 13.

“I have made serious mistakes and am sorry for them,” said Ney, 52, whose lawyer said he had begun treatment for alcohol dependency. “I am very sorry for the pain I have caused to my family, my constituents in Ohio and my colleagues.”

Ney became the first lawmaker to admit wrongdoing in the election-year congressional corruption probe spawned by disgraced lobbyist Jack Abramoff. Ney said he was hopeful “that someday the good I have tried to do will be measured alongside the mistakes I have made.”

He agreed to plead guilty to making false statements and conspiracy to commit fraud, make other false statements and violate U.S. lobbying restrictions. The charges could carry a prison sentence of up to 10 years and fines of up to $500,000 plus repayment of any improper gifts.

Prosecutors said Ney improperly accepted trips to play golf, gamble or vacation in Scotland, New Orleans and New York between August 2002 and August 2003. The total cost of the trips by Ney and others exceeded $170,000, court papers said. Ney also admitted accepting meals and sports and concert tickets for himself and his staff from Abramoff and his lobbyists.

Separately, Ney twice flew to London during 2003 to meet with a foreign businessman who was not identified by name in court papers. The foreign businessman is Fouad al-Zayat, a Syrian-born partner in FN Aviation of Cyprus, according to two people close to the investigation. These people spoke on condition of anonymity because of the sensitivity of the plea agreement. Al-Zayat is known in Britain as a prominent gambler nicknamed “The Fat Man.”

Ney's congressional travel records indicate he and an aide met with al-Zayat's business partner in FN Aviation, Nigel Winfield.

The February 2003 meeting with FN Aviation was arranged to discuss U.S. sanctions against the sale of aviation parts to Iran, but those involved did not discuss specific sales or proposals, according to one of the people familiar with the case.

The Justice Department said Ney on those trips accepted thousands of dollars worth of free casino chips from the foreign businessman and parlayed them into $50,000 in total gambling winnings playing card games. On one occasion, Ney gave $5,000 to a staff member to carry through U.S. Customs so that Ney could report receiving a lesser amount, prosecutors said.

FN Aviation paid the $5,414 cost of the four-day February trip by Ney and an aide, according to Ney's congressional travel records.

Al-Zayat could not be reached immediately for comment by The Associated Press.

The Justice Department said the foreign businessman and his partner sought Ney's help obtaining a travel visa and selling U.S.-made airplanes and parts to a foreign country, and that the businessman's company paid for Ney's trip to London in February 2003.

FN Aviation's former U.S. lobbyists, Roy Coffee and David DiStefano – a former Ney aide – have said they worked with Ney to seek a special government permit to let FN Aviation sell plane parts to Iran despite U.S. trade sanctions. The permit never was awarded.

DiStefano was Ney's chief of staff before becoming a lobbyist and coordinated Ney's first congressional campaign in 1994.

“People must have faith and confidence in their elected officials,” said Alice Fisher, who runs the criminal division of the Justice Department. She said Ney had “acted in his own interests, not in the interests of his constituents.”

House Majority Leader John Boehner, also from Ohio, described Ney as a skilled lawmaker and good friend. “Clearly Bob made mistakes, and he is now feeling the full weight of those mistakes,” Boehner said. “His actions violated the law, and he must be held accountable.”

Ney did not participate in any of the 10 roll call votes in the House on Thursday, an indication he was away from the Capitol.

Republican voters in Ney's district selected a replacement candidate Thursday as word of legal developments surfaced. State Sen. Joy Padgett, backed by party leaders, won easily and will face Democrat Zack Space in the fall.

Ney had a unique power perch in the House when the year dawned, as chairman of the committee with jurisdiction over the internal workings of the 435-member chamber. Speaker Dennis Hastert pressured Ney into surrendering his chairmanship earlier this year as concern rippled through the GOP ranks about the Abramoff scandal.

Still, as recently as early summer, Ney said he intended to seek re-election in the sprawling, rural district in eastern Ohio he has represented since 1994. He changed his mind at the prodding of party leaders who feared the loss of his seat in November if he remained on the ballot.

At Abramoff's request, prosecutors said, Ney proposed four amendments in early 2002 that would have helped Abramoff and his lobbying clients. These included proposals to allow commercial gambling by two Indian tribes, help a Russian drink manufacturer and compel the U.S. government to give property to a religious school founded by Abramoff.

None of the amendments succeeded.

Ney had sought to add them to the “Help America Vote Act,” a law aimed at election reform.

Associated Press Writer David Hammer contributed to this report.

Jack Abramoff Asks "Can You Smell the Money?" as He Rises To Great Heights in Washington DC's Lobbyist Kingdom

Those convicted so far in the Jack Abramoff lobbying corruption probe:

Abramoff, who pleaded guilty in January to mail fraud, conspiracy and tax evasion charges in connection with his lobbying work. A Texas Indian tribe filed a federal lawsuit in July against Abramoff and several of his colleagues, alleging they engaged in fraud and racketeering.

Rep. Bob Ney, R-Ohio, who on Friday agreed to plead guilty to improperly accepting tens of thousands of dollars worth of trips, meals, sports tickets and casino chips.

Tony Rudy, lobbyist and one-time aide to former House Majority Leader Tom DeLay, who pleaded guilty in March to conspiring with Abramoff.

David Safavian, found guilty in June of covering up his dealings with Abramoff while a General Services Administration official. In August, Safavian asked a judge to overturn the verdict.

Michael Scanlon, a former Abramoff business partner and DeLay aide, who pleaded guilty in November to conspiring to bribe public officials in connection with lobbying work on behalf of Indian tribes and casino issues.

Neil Volz, an Abramoff partner who pleaded guilty in May to conspiring to corrupt his former boss, Ney, and others with trips and other aid.

Roger Stillwell, a former Interior Department official, pleaded guilty in August to a misdemeanor charge for not reporting tickets he received from Abramoff.

Government officials – all of whom have denied any wrongdoing – under scrutiny for their ties to Abramoff:

Former House Majority Leader DeLay, who is under indictment in Texas on charges of campaign finance improprieties. Prosecutors are looking at whether DeLay, R-Texas, who resigned from Congress in June, filed false public reports to disguise the source and size of political donations, travel and other gifts he received from special interests, including some with ties to Abramoff.

Sen. Conrad Burns, R-Mont., who received about $150,000 in donations from Abramoff, his clients and his associates. Burns has since returned the money or given it to charity. Two former Burns aides worked for Abramoff, and two current aides took a trip to the 2001 Super Bowl on the lobbyist's jet.

Rep. John Doolittle, R-Calif., who accepted campaign money from Abramoff and used the lobbyist's luxury sports box for a fundraiser without initially reporting it. Doolittle's wife and one of his former aides also worked for the lobbyist.

Steven Griles, a former deputy interior secretary, whom senators and a former colleague said gave preferential treatment to Abramoff and his Indian tribe clients seeking approval for casinos.

Former Interior Secretary Gale Norton's political fundraiser Italia Federici, who in 1999 founded the nonprofit conservative group, the Council of Republicans for Environmental Advocacy, with Norton. A report said Abramoff apparently had his clients contribute to the group because he believed Federici would help him possibly influence tribal issues.

Congressman’s trip raises ethical flags
Experts say Rep. Bob Ney’s London travel may violate House rules
By Lisa Myers & the NBC Investigative Unit, Updated: 6:39 p.m. ET May 12, 2005

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WASHINGTON - Rep. Bob Ney, R-Ohio, is nicknamed the "mayor of Capitol Hill." He chairs the powerful House Administration Committee, which controls offices and perks.

In February 2003, Ney took a three-day trip to London. Following House rules, he reported the trip cost $2,707 and was paid for by FN Aviation. Nigel Winfield is the group's director.

NBC News has learned that Winfield, who met with Ney in London, is a three-time convicted felon who spent more than six years in prison. He cheated on his taxes and was involved in a deal to swindle Elvis Presley.

In a telephone interview, Winfield told NBC News he wanted Ney's help selling planes in the Middle East.

"My only interest was trying to meet a congressman and see what we could do," says Winfield.

In London, Winfield says Ney attended meetings, one over dinner at a casino with Winfield and Fouad al-Zayat, a Syrian-born businessman who heads FN Aviation. Zayat is one of London's biggest gamblers, betting hundreds of thousands of dollars on roulette in a sitting.

Experts say Ney's trip may violate House rules.

"The ethical problem will be: Did the trip consist of something connected to his official duties, or was it simply a foreign romp to go gambling?" says former House Ethics Committee counsel Stan Brand.

"I, for one, think that the House Ethics Committee needs to examine all of Mr. Ney's travel for the past several years, and examine his conduct and make sure it was all above-board," says Melanie Sloan, executive director of Citizens for Responsibility and Ethics in Washington.

Thursday, NBC asked Ney about the trip.

"I have no comment for you," he said to our camera crew on Capitol Hill.

Did he know Winfield was a felon?

"No, I had no knowledge of that. No," he replied.

In retrospect, was this trip a good idea?

"You have to talk to my office. Thank you."

That same year, Ney reported that he won $34,000 at the very same London casino on an initial bet of $100. In 2002, Ney had reported at least $30,000 in credit card debt. In 2003, he reported he'd paid it off. His lawyer says Ney won that money gambling on a separate trip to London, not the one involving FN Aviation.

NBC News tried to interview Zayat at his offices in Cyprus and London, but he was not available for comment.

Ney's lawyer insists the trip was entirely proper and consistent with House rules. However, he says the congressman can't discuss his activities because of "national security implications."