"In 2002, Abramoff was retained by the Superior Court in what was an
unusual arrangement for a public agency. The Times reported in May
that Abramoff was paid with a series of $9,000 checks funneled through
a Laguna Beach lawyer to disguise the lobbyist's role working for the
Guam court. No separate contract was authorized for Abramoff's work."

"The transactions were the target of a grand jury subpoena issued Nov.
18, 2002, according to a copy obtained by The Times. The subpoena
demanded that Anthony Sanchez, administrative director of the Guam
Superior Court, release records involving the lobbying contract,
including bills and payments.

A day later, the chief prosecutor, U.S. Atty. Frederick A. Black, who
had launched the investigation, was demoted. A White House news
release announced that Bush was replacing Black.

The timing caught some by surprise. Despite his officially temporary
status, Black had held the acting U.S. attorney assignment for more
than a decade."

http://www.latimes.com/news/nationworld/nation/la-na-guam7aug07,1,5281180.story?coll=la-headlines-nation

Inquiry Into Lobbyist Sputters After Demotion

The unusual financial deal between Jack Abramoff and officials in Guam
drew scrutiny.

By Walter F. Roche Jr.
Times Staff Writer

August 7, 2005

WASHINGTON â€" A U.S. grand jury in Guam opened an investigation of
controversial lobbyist Jack Abramoff more than two years ago, but
President Bush removed the supervising federal prosecutor and the
inquiry ended soon after.

The previously undisclosed Guam inquiry is separate from a federal
grand jury in Washington that is investigating allegations that
Abramoff bilked Indian tribes out of millions of dollars.

In Guam, an American territory in the Pacific, investigators were
looking into Abramoff's secret arrangement with Superior Court
officials to lobby against a court revision bill then pending in the
U.S. Congress. The legislation, since approved, gave the Guam Supreme
Court authority over the Superior Court.

In 2002, Abramoff was retained by the Superior Court in what was an
unusual arrangement for a public agency. The Times reported in May
that Abramoff was paid with a series of $9,000 checks funneled through
a Laguna Beach lawyer to disguise the lobbyist's role working for the
Guam court. No separate contract was authorized for Abramoff's work.

Guam court officials have not explained the contractual arrangement.
At the time, Abramoff was a well-known lobbyist in the Pacific islands
because of his work for the Commonwealth of the Northern Marianas
garment manufacturers, accused of employing workers in sweatshop
conditions.

Abramoff spokesman Andrew Blum said the lobbyist "has no recollection
of his being investigated in Guam in 2002. If he had been aware of an
investigation, he would have cooperated fully." Blum declined to
respond to detailed questions.

The transactions were the target of a grand jury subpoena issued Nov.
18, 2002, according to a copy obtained by The Times. The subpoena
demanded that Anthony Sanchez, administrative director of the Guam
Superior Court, release records involving the lobbying contract,
including bills and payments.

A day later, the chief prosecutor, U.S. Atty. Frederick A. Black, who
had launched the investigation, was demoted. A White House news
release announced that Bush was replacing Black.

The timing caught some by surprise. Despite his officially temporary
status, Black had held the acting U.S. attorney assignment for more
than a decade.

The acting U.S. attorney was a controversial official in Guam. At the
time he was removed, Black was directing a long-term investigation
into allegations of public corruption in the administration of
then-Gov. Carl Gutierrez. The inquiry produced numerous indictments,
including some of the governor's political associates and top aides.

Black also arranged for a security review in the aftermath of Sept. 11
that was seen as a potential threat to loose immigration rules favored
by local business leaders. In fact, the study ordered by Black
eventually cited substantial security risks in Guam and the Northern
Marianas.

Abramoff, who then represented the Commonwealth of the Northern
Mariana Islands, alerted his clients in a memo about the expected
report and warned: "It will require some major action from the Hill
and a press attack to get this back in the bottle."

The lobbyist also wrote that he and his aides expected to meet in the
near future with Justice Department officials, according to Abramoff
billing documents released this year by the Marianas government.

A Justice Department spokesman previously dismissed Abramoff's
references to meetings with high level department officials as "a lot
of bluster to impress a client."

Abramoff also sought expanded lobbying business with the Pacific
island governments.

A lawyer for Gutierrez discussed hiring Abramoff to represent Guam's
territorial government in 2002 before the grand jury inquiry began.
The discussions were held at Abramoff-owned Signature's Restaurant
here, according to two sources with direct knowledge of the meeting.
They provided details on condition of anonymity.

The federal grand jury in Guam took no further action after the
initial subpoena was issued in the Abramoff case, according to sources
familiar with the inquiry who spoke on condition of anonymity. Three
weeks after the subpoena was issued, about 100 pages of documents
related to the court-revision lobbying effort were turned over to FBI
agents investigating the case, records show.

This year, Public Auditor Doris Flores Brooks initiated a separate
investigation of Abramoff's secret lobbying work for the Guam courts.

The auditor's office is reviewing Abramoff's payments totaling
$324,000 in 36 separate checks for $9,000 paid through lawyer Howard
Hills of Laguna Beach. Hills said he was a middleman.

The new Guam inquiry remains open.

Black, 56, had served as acting U.S. attorney for Guam and the
Northern Mariana islands since 1991.

The career prosecutor, who had held a senior position as first
assistant before accepting the acting U.S. attorney job, was demoted
to a staff post. Black's demotion came after an intensive lobbying
effort by supporters of Gov. Gutierrez, who had been publicly critical
of Black and his investigative efforts.

Black declined to comment for this article.

Black's successor, Leonardo Rapadas, was confirmed in May 2003 without
any debate. Rapadas had been recommended by the Guam Republican Party
for the job. Fred Radewagen, a lobbyist who had been under contract to
the Gutierrez administration, said he carried that recommendation to
top Bush aide Karl Rove in early 2003.

After taking office, Rapadas recused himself from the ongoing public
corruption case involving Gutierrez. The new U.S. attorney was a
cousin of "one of the main targets," according to a confidential memo
to Justice Department officials.

Rapadas declined to comment and referred questions about his recusal
to Justice Department officials, who did not respond to requests for
comment.

Erin Healy, a Bush spokeswoman, would not comment on the recusal but
defended Rapadas' appointment, saying that he was "well known and well
respected" and had served for more than a decade as an assistant
attorney general in the Guam government.

Abramoff is now the subject of Senate and federal grand jury inquiries
related to his dealings with Indian tribes. He also has drawn
controversy for his role in arranging foreign trips for congressional
leaders, including House Majority Leader Tom DeLay (R-Texas).





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