Plea deal in growing scandal

Glen Cove man admits to scheme, saying he and his then-partner, a Washington lobbyist, tricked lenders to finance purchase of casinos

BY ROBERT E. KESSLER | STAFF WRITER

December 16, 2005

A man from Glen Cove agreed yesterday with federal prosecutors that he and his then-partner, a prominent Washington lobbyist, had defrauded lenders of $60 million in the latest act in the growing scandal that threatens to engulf members of Congress on Capitol Hill.

The man, Adam Kidan, a disbarred lawyer, did so in pleading guilty to charges of conspiracy and wire fraud in the takeover in 2000 of SunCruz, a Florida-based fleet of floating casinos, according to federal prosecutors.

The lobbyist, Jack Abramoff, was indicted in the SunCruz case and is also being investigated for allegedly buying influence from congressmen to support his various ventures, from SunCruz to aiding Indian tribes in obtaining gambling licenses or blocking rival tribes from doing so.

Abramoff's lawyers have denied that he has done anything wrong and is he scheduled to go to trial in January on the charges that Kidan pleaded guilty to yesterday.

As part of his plea agreement, Kidan said he would cooperate with the prosecutors in the ongoing investigations.

Kidan also agreed with a statement prepared by prosecutors that he and Abramoff, his partner in the failed venture, had engaged in a scheme to make it appear they had the $23 million required by the lenders to finance the purchase of the $147.5 million fleet, according to officials.

Kidan also admitted that as part of the scheme he and Abramoff had been instrumental in sending lenders a counterfeit wire transfer that said $23 million had been passed from their account to that of the late owner of SunCruz, Gus Boulis.

While Kidan faces up to 10 years in prison, he might get as little as a year if he cooperates, sentencing guidelines say.