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Abramoff Ties May Jeopardize Nonprofits' Tax Status

Senate Democrats say conservative groups' work with the lobbyist defrauded taxpayers. One target calls the charges politicking.

October 13, 2006|Tom Hamburger, Times Staff Writer

WASHINGTON — Several well-known conservative organizations may have put their tax-exempt status at risk as a result of helping disgraced lobbyist Jack Abramoff and his clients, according to a new report from congressional Democrats.

The report by the minority staff of the Senate Finance Committee concludes that the organizations "appear to have perpetrated a fraud on other taxpayers" by engaging in "what amounted to profit seeking and private benefit behavior inconsistent with their tax-exempt status."


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The report reveals new details about the relationship between Abramoff and the leaders of the tax-exempt groups who provided Abramoff clients with introductions to key administration officials and public relations help, and in some cases concealed the source of funds used for advertising campaigns and congressional junkets.

Among the groups highlighted in the report is Americans for Tax Reform, led by Grover Norquist, who has been a major player in building and directing the conservative movement that has dominated U.S. politics for more than a decade.

The report shows e-mails from Abramoff to Norquist asking for help arranging introductions for the lobbyist's clients with Karl Rove.

The e-mails also show that Norquist and his staff -- along with the leaders of other groups -- were encouraged to submit newspaper pieces and news releases, which Abramoff offered to draft, advocating for Abramoff clients. Through a spokesman, Norquist denied any wrongdoing and charged that the report was released by Democrats solely for political purposes.

The report focused on the group Norquist heads, Americans for Tax Reform, and four other organizations: Citizens Against Government Waste, Council of Republicans for Environmental Advocacy, the National Center for Public Policy Research, and Toward Tradition, all of which have had ties to Abramoff.

The report describes a range of behavior by each of the organizations and notes that Abramoff offered each contributions from his clients, though several groups said the promised contributions were neither solicited nor received.

A spokesman for Americans for Tax Reform, John Kartch, dismissed the Senate Democrats' report as "political nonsense." He said Norquist had done nothing improper and charged that the report was distributed deliberately just before the midterm election and the day after news stories appeared questioning financial transactions involving Senate Democratic leader Harry Reid.

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