Monday, January 09, 2006

Awww, That's So Sad...

From the Washington Post
One of Washington's top lobbying operations will shut down at the end of the month because of its ties to disgraced lobbyist Jack Abramoff and former House majority leader Tom DeLay.

Alexander Strategy Group, which had thrived since its founding in 1998 thanks largely to its close connections to DeLay (R-Tex.), will cease to operate except for a relatively small business-development division, Edwin A. Buckham, the former top DeLay aide who owns the company, said yesterday.
Of course, it's all the media's fault:
"Reports in the press have made it difficult to continue as a lobbying/political entity," Buckham said.
That would be reports saying things like this:
Buckham's firm employed DeLay's wife, Christine, for four years. It also benefited by working closely with Abramoff. Abramoff's plea agreement mentioned his close ties to Tony C. Rudy, one of Buckham's colleagues at ASG, identified in the court papers as "Staffer A."

Rudy, a former DeLay aide, worked for Abramoff before joining ASG. According to the plea document, a political consulting firm run by Rudy's wife allegedly received $50,000 in exchange for official actions Rudy took while working for DeLay.
Mr. Buckham may also be concerned about his involvement with the US Family Network, which, according to news reports, seemed to be nothing more than a clearing house for big donations to the DeLay Machine Slush Fund.
Records and interviews also illuminate the mixture of influence and illusion that surrounded the U.S. Family Network. Despite the group's avowed purpose, records show it did little to promote conservative ideas through grass-roots advocacy. The money it raised came from businesses with no demonstrated interest in the conservative "moral fitness" agenda that was the group's professed aim.

In addition to the million-dollar payment involving the London law firm, for example, half a million dollars was donated to the U.S. Family Network by the owners of textile companies in the Mariana Islands in the Pacific, according to the tax records. The textile owners -- with Abramoff's help -- solicited and received DeLay's public commitment to block legislation that would boost their labor costs, according to Abramoff associates, one of the owners and a DeLay speech in 1997.

A quarter of a million dollars was donated over two years by the Mississippi Band of Choctaw Indians, Abramoff's largest lobbying client, which counted DeLay as an ally in fighting legislation allowing the taxation of its gambling revenue.

The records, other documents and interviews call into question the very purpose of the U.S. Family Network, which functioned mostly by collecting funds from domestic and foreign businesses whose interests coincided with DeLay's activities while he was serving as House majority whip from 1995 to 2002, and as majority leader from 2002 until the end of September.

After the group was formed in 1996, its director told the Internal Revenue Service that its goal was to advocate policies favorable for "economic growth and prosperity, social improvement, moral fitness, and the general well-being of the United States." DeLay, in a 1999 fundraising letter, called the group "a powerful nationwide organization dedicated to restoring our government to citizen control" by mobilizing grass-roots citizen support.

But the records show that the tiny U.S. Family Network, which never had more than one full-time staff member, spent comparatively little money on public advocacy or education projects. Although established as a nonprofit organization, it paid hundreds of thousands of dollars in fees to Buckham and his lobbying firm, Alexander Strategy Group.

There is no evidence DeLay received a direct financial benefit, but Buckham's firm employed DeLay's wife, Christine, and paid her a salary of at least $3,200 each month for three of the years the group existed. Richard Cullen, DeLay's attorney, has said that the pay was compensation for lists Christine DeLay supplied to Buckham of lawmakers' favorite charities, and that it was appropriate under House rules and election law.

Some of the U.S. Family Network's revenue was used to pay for radio ads attacking vulnerable Democratic lawmakers in 1999; other funds were used to finance the cash purchase of a townhouse three blocks from DeLay's congressional office. DeLay's associates at the time called it "the Safe House."

DeLay made his own fundraising telephone pitches from the townhouse's second-floor master suite every few weeks, according to two former associates. Other rooms in the townhouse were used by Alexander Strategy Group, Buckham's newly formed lobbying firm, and Americans for a Republican Majority (ARMPAC), DeLay's leadership committee.

They paid modest rent to the U.S. Family Network, which occupied a single small room in the back.
You can appreciate how hard it might be for the Alexander Strategy Group to get much work done, now that Abramoff has flipped and there are a few dozen Justice Department investigators on the case. Poor Mr. Buckham, losing a thriving business because of excessive government regulations.