WASHINGTON — A federal investigation of corrupt lobbying practices on Capitol Hill intensified Friday as a former business associate of lobbyist Jack Abramoff signaled that he would plead guilty to a charge that the two conspired to defraud four Indian tribes out of millions of dollars and to improperly influence a member of Congress.
The plea deal, which is expected to be formalized early next week and includes Michael Scanlon's promise to cooperate with federal prosecutors, marks a major development in a widening probe of Abramoff that has shaken Congress.
In an eight-page criminal information filed in U.S. District Court, federal prosecutors charged that Scanlon, 35, worked with Abramoff to extract $52.9 million in fees from the Indian tribes under false pretenses. The two then secretly shared nearly $40 million in profits, prosecutors charged.
The criminal information, a form of criminal charge that is usually a prelude to a plea agreement, also said that Scanlon and Abramoff illegally conspired to influence a member of Congress. The member of Congress is identified in the information only as "Representative #1," but details of the charges described specific actions known to have been taken by U.S. Rep. Bob Ney (R-Ohio).
Ney spokesman Brian J. Walsh said the congressman would "fully cooperate in the investigation of the Abramoff matter. He has not been told that he is the target of any investigation, and there would be no grounds to do so."
Ney has repeatedly denied any wrongdoing.
Scanlon's cooperation could help break open the criminal investigation into Abramoff and his dealings with members of Congress and the administration. His insider's knowledge could be invaluable in developing criminal cases.
Scanlon was a top aide and communications director to Rep. Tom DeLay (R-Texas) when DeLay was House majority whip. Scanlon left the congressional payroll in late 1999, and later teamed up with Abramoff, who was once one of the most influential lobbyists in Washington. Scanlon faces a single charge of conspiracy.
In a statement, Scanlon's attorney, Stephen Braga, said that at a court hearing Monday, "Mr. Scanlon and the Department of Justice will present a proposed plea agreement to the court to resolve the charge contained in the information."
Abramoff, who was not charged in the documents made public Friday, declined to comment through a spokesman.
