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Epitome22 · 09-21-2004, 08:27 PM

http://www.statesman.com/metrostate/content/metro/09/22indictments.html?Found_Session=false&UrAuth=`NXN UOaNUUbTTUWUXUUUZTZU`UWU]U_UZU]U^UcTYWYWZV

Republican Majority officials indicted in fund-raising investigation
Attorney says seven companies, three individuals named

By Laylan Copelin

AMERICAN-STATESMAN STAFF

Tuesday, September 21, 2004

A Travis County grand jury on Tuesday indicted three top lieutenants of U.S. House Majority Leader Tom DeLay in connection with corporate money raised during the 2002 elections.

Indicted on one count of money laundering were John Colyandro, the executive director of Texans for a Republican Majority Political Action Committee, and Jim Ellis, a former DeLay staff member now head of Americans for a Republican Majority, DeLay's national fund-raising political action committee.

Colyandro also was indicted on 14 counts of unlawful acceptance of a corporate political contribution.

Warren Robold, DeLay's corporate fund-raiser, based in Washington, D.C., was indicted on 18 counts; nine of unlawful political contribution by a corporation and nine of accepting those contributions.

The money-laundering counts are first-degree felonies, punishable by up to life in prison; the rest are third-degree felonies, with a maximum sentence of 10 years.

Seven corporate donors and an alliance of nursing-home companies also were indicted.

The indictments came after almost two years of an investigation into Texans for a Republican Majority, a political action committee that DeLay created to elect a Republican majority in the Texas House of Representatives.

The scope and number of indictments stunned defense lawyers, who had expected only a handful of charges.

Travis County District Attorney Ronnie Earle has scheduled a press conference for 2 p.m.

The first announcement of the indictments didn't come from Earle. Instead, Austin lawyer Steve Brittain, an attorney for DeLay, broke the news.

Brittain said he was surprised by the extent of the indictments, but defended what the political action committee did.

"All these people felt comfortable they were not violating the laws," he said. "We don't believe anyone intentionally violated the law."

Tuesday's indictments do not mark the end of the investigation. Another grand jury is expected to take up the inquiry into several other groups who allegedly used corporate money in the 2002 elections.

Texas for Public Justice, Common Cause and Public Citizen called on House Speaker Tom Craddick to step aside pending conclusion of the investigation.

Craig McDonald with Texans for Public Justice said Craddick raised money for the political action committee and distributed it.

"Craddick is at the center of all of this," he said. "If TRMPAC operatives broke the law, Craddick needs to step aside until we figure it out. If TRMPAC operatives are convicted, the House needs to elect a new speaker."

Craddick has denied any wrongdoing.

The money-laundering charges stem from an incident in which Colyandro sent Ellis, who is based in Washington, D.C., a blank check for the Republican National Committee. On Sept. 13, 2002, Ellis delivered a check for $190,000 in corporate money from the political action committee to the Republican National Committee. He also gave the committee a list of seven Texas candidates with suggested donation amounts. The candidates, including Austin's Todd Baxter and Jack Stick, received a total of $190,000 in noncorporate money. Neither Baxter nor Stick is accused of wrongdoing.

The alliance and companies indicted are: The Alliance for Quality Nursing Home Care (a group of 14 nursing home companies), The Williams Companies, Sears and Roebuck, Westar Energy, Bacardi USA, Cracker Barrel Old Country Store, Diversified Collection Services and Questerra Corp.

The nursing home alliance gave $50,000; Diversified Collection donated $50,000; Bacardi gave $20,000; the rest donated $25,000 each.

Following the Republican sweep of the 2002 elections, Earle began investigating allegations that Republicans and their business allies used unprecedented amounts of corporate cash to affect the elections.

State law generally prohibits using corporate or labor union money for political purposes except to pay for the administrative expenses of a political action committee.

Texans for a Republican Majority spent $1.5 million during the election, including $600,000 of corporate money that was spent on consultants, pollsters and phone banks. But lawyers for the political action committee argued that the money was spent for the benefit of the committee and not directly on behalf of candidates.

09-21-2004, 08:27 PM	#1
Epitome22 Golden Member Join Date: Feb 2002 Posts: 1,827	Texas Republican Officials Indicted: Delay untouched http://www.statesman.com/metrostate/content/metro/09/22indictments.html?Found_Session=false&UrAuth=`NXN UOaNUUbTTUWUXUUUZTZU`UWU]U_UZU]U^UcTYWYWZV Republican Majority officials indicted in fund-raising investigation Attorney says seven companies, three individuals named By Laylan Copelin AMERICAN-STATESMAN STAFF Tuesday, September 21, 2004 A Travis County grand jury on Tuesday indicted three top lieutenants of U.S. House Majority Leader Tom DeLay in connection with corporate money raised during the 2002 elections. Indicted on one count of money laundering were John Colyandro, the executive director of Texans for a Republican Majority Political Action Committee, and Jim Ellis, a former DeLay staff member now head of Americans for a Republican Majority, DeLay's national fund-raising political action committee. Colyandro also was indicted on 14 counts of unlawful acceptance of a corporate political contribution. Warren Robold, DeLay's corporate fund-raiser, based in Washington, D.C., was indicted on 18 counts; nine of unlawful political contribution by a corporation and nine of accepting those contributions. The money-laundering counts are first-degree felonies, punishable by up to life in prison; the rest are third-degree felonies, with a maximum sentence of 10 years. Seven corporate donors and an alliance of nursing-home companies also were indicted. The indictments came after almost two years of an investigation into Texans for a Republican Majority, a political action committee that DeLay created to elect a Republican majority in the Texas House of Representatives. The scope and number of indictments stunned defense lawyers, who had expected only a handful of charges. Travis County District Attorney Ronnie Earle has scheduled a press conference for 2 p.m. The first announcement of the indictments didn't come from Earle. Instead, Austin lawyer Steve Brittain, an attorney for DeLay, broke the news. Brittain said he was surprised by the extent of the indictments, but defended what the political action committee did. "All these people felt comfortable they were not violating the laws," he said. "We don't believe anyone intentionally violated the law." Tuesday's indictments do not mark the end of the investigation. Another grand jury is expected to take up the inquiry into several other groups who allegedly used corporate money in the 2002 elections. Texas for Public Justice, Common Cause and Public Citizen called on House Speaker Tom Craddick to step aside pending conclusion of the investigation. Craig McDonald with Texans for Public Justice said Craddick raised money for the political action committee and distributed it. "Craddick is at the center of all of this," he said. "If TRMPAC operatives broke the law, Craddick needs to step aside until we figure it out. If TRMPAC operatives are convicted, the House needs to elect a new speaker." Craddick has denied any wrongdoing. The money-laundering charges stem from an incident in which Colyandro sent Ellis, who is based in Washington, D.C., a blank check for the Republican National Committee. On Sept. 13, 2002, Ellis delivered a check for $190,000 in corporate money from the political action committee to the Republican National Committee. He also gave the committee a list of seven Texas candidates with suggested donation amounts. The candidates, including Austin's Todd Baxter and Jack Stick, received a total of $190,000 in noncorporate money. Neither Baxter nor Stick is accused of wrongdoing. The alliance and companies indicted are: The Alliance for Quality Nursing Home Care (a group of 14 nursing home companies), The Williams Companies, Sears and Roebuck, Westar Energy, Bacardi USA, Cracker Barrel Old Country Store, Diversified Collection Services and Questerra Corp. The nursing home alliance gave $50,000; Diversified Collection donated $50,000; Bacardi gave $20,000; the rest donated $25,000 each. Following the Republican sweep of the 2002 elections, Earle began investigating allegations that Republicans and their business allies used unprecedented amounts of corporate cash to affect the elections. State law generally prohibits using corporate or labor union money for political purposes except to pay for the administrative expenses of a political action committee. Texans for a Republican Majority spent $1.5 million during the election, including $600,000 of corporate money that was spent on consultants, pollsters and phone banks. But lawyers for the political action committee argued that the money was spent for the benefit of the committee and not directly on behalf of candidates.