Campaign finance charges Following official admonishments by the
United States House Committee on Ethics, DeLay was charged in 2005 with
money laundering and
conspiracy charges related to illegal
campaign finance activities aimed at helping Republican candidates for Texas state office in the
2002 elections. The
indictment was sought by
Ronnie Earle, the Democratic former
District Attorney of
Travis County (which includes the state capital of
Austin). A first grand jury rejected Earle's indictment attempt, but a second grand jury issued an indictment for one count of criminal conspiracy on September 28, 2005. On October 3, a third grand jury indicted DeLay for the more serious offense of money laundering. An arrest warrant was issued on October 19, 2005, and DeLay turned himself in the next day to the
Harris County Sheriff's Office in
Houston. In accordance with
House Republican Conference rules, DeLay temporarily resigned from his position as House majority leader. On January 7, 2006, after pressure from fellow Republicans, he announced that he would not seek to return to the post. On June 9, 2006, he resigned from Congress. After two judges
recused themselves, the Chief Justice of the
Texas Supreme Court assigned Senior District Judge
Pat Priest to preside over the trial. DeLay
moved to dismiss all charges. Judge Priest dismissed one count of the indictment alleging conspiracy to violate election law but allowed the other, more serious charges of money laundering and conspiracy to engage in money laundering to proceed. He also refused to allow a change of venue from
Travis County, which the defense argued could not be the site of an impartial trial, to
Fort Bend County, in which DeLay resided. The trial began on October 26, 2010, in Austin.
Conviction On November 24, 2010, DeLay was found guilty by a Travis County jury on both counts. The range of possible sentences was
probation to between 5 and 99 years in prison and up to $20,000 in fines, though the judge could have chosen
probation. On January 10, 2011, after a
sentencing hearing, the judge sentenced DeLay to three years in prison on the charge of conspiring to launder corporate money into political donations. On the charge of money laundering, he was sentenced to five years in prison, but that was probated for 10 years, meaning DeLay would serve 10 years' probation.
Dick DeGuerin was DeLay's
defense attorney.
Appeal and acquittal DeLay appealed his conviction to the
Texas Court of Appeals for the Third District at Austin, which heard oral arguments on October 10, 2012. On September 19, 2013, a ruling by the Court of Appeals overturned his convictions and entered an acquittal. Justice Melissa Goodwin wrote in the majority opinion thatRather than supporting an agreement to violate the election code, the evidence shows that the defendants were attempting to comply with the Election Code limitations on corporate contributions. She was joined in the opinion by visiting Justice David Galtney. Chief Justice J. Woodfin Jones dissented, writing, "I disagree with the majority's conclusion that there was legally insufficient evidence to support a jury finding that the corporate contributions at issue here were the proceeds of criminal activity." The
Texas Court of Criminal Appeals granted the prosecution's petition for discretionary review on March 19, 2013, agreeing to review the decision of the Texas Court of Appeals Third District. The Texas Court of Criminal Appeals ruled, 8-1, to affirm the lower courts' dismissal on October 1, 2014.
Contributions from Russian oil executives In December 2005, the
Washington Post reported that, in 1998, a group of Russian oil executives had given money to a nonprofit advocacy group run by a former DeLay staffer and funded by clients of
lobbyist Jack Abramoff, in an attempt to influence DeLay's vote on an
International Monetary Fund bailout of the Russian economy. Associates of DeLay adviser
Ed Buckham, the founder of the
U.S. Family Network, said that executives from the oil firm Naftasib had offered a donation of $1,000,000 to be delivered to a
Washington, D.C.-area airport to secure DeLay's support. On June 25, 1998, the U.S. Family Network received a $1 million check via money transferred through the London law firm James & Sarch Co. This payment was the largest single entry on U.S. Family Network's donor list. The original source of the donation was not recorded. DeLay denied the payment had influenced his vote. Naftasib denied it had made the payment and that it had ever been represented by James & Sarch Co. The now-dissolved law firm's former partners declined to comment due to "confidentiality requirements".
The K Street Project DeLay's involvement with the lobbying industry included a pointed effort on the part of the Republican Party to parlay the Congressional majority into dominance of
K Street, the lobbying district of Washington, D.C. DeLay, Senator
Rick Santorum, and
Grover Norquist launched a campaign in 1995 encouraging lobbying firms to retain only Republican officials in top positions. Firms that had Democrats in positions of authority, DeLay suggested, would not be granted the ear of majority party members. In 1999, DeLay was privately reprimanded by the House Ethics Committee after he pulled an intellectual property rights bill off the House floor when the
Electronic Industries Alliance (EIA) hired a former Democratic Congressman,
Dave McCurdy. Firms initially responded to the campaign, but it waned during 2004, when the possibility of Senator
John Kerry's winning the presidency gave lobbying firms some incentive to hire Democrats.
Cuban cigar photo DeLay has long been a strong critic of
Cuban leader
Fidel Castro's regime, which DeLay has called a "thugocracy", and a supporter of the U.S.
trade embargo against Cuba. However, in April 2005,
Time Magazine published a photo from a government-funded July 2003 trip to Israel, in which DeLay is seen
smoking a Cuban cigar. The consumption or purchase of Cuban cigars was illegal in the United States at the time (but was legal for U.S. citizens abroad). In September 2004, the
U.S. Treasury Department's enforcement of the law toughened it to forbid consumption (smoking) or purchase of Cuban cigars by U.S. citizens anywhere in the world, but this ban was partially lifted by
President Obama in October 2016.
Ethics admonishment for misuse of federal agency resources During the controversial
mid-decade redistricting plan in Texas, several Democratic members of the
Texas House of Representatives went to
Oklahoma to prevent the House from establishing a
quorum of members, thereby preventing the House from acting on any legislation, including a proposed redistricting plan. Although not a member of the Texas legislature, DeLay became involved, by contacting several federal agencies in order to determine the location of the missing legislators. DeLay's staff contacted the
Federal Aviation Administration (FAA) for assistance in tracking down a plane that one of the legislators was flying to Oklahoma, an action that the FAA believed to be a result of safety concerns about the aircraft. A review by the
U.S. Department of Transportation found that a total of thirteen FAA employees spent more than eight hours searching for the airplane. Members of DeLay's staff asked the
FBI to arrest the missing Democrats but a Justice Department official dismissed DeLay's and his staff's request as "wacko". U.S. senator
Joseph Lieberman (I-
Connecticut) requested an investigation into DeLay's involvement in the requests, and asked that any
White House involvement be reported. The House Ethics Committee admonished DeLay for improper use of FAA resources, and for involving federal agencies in a matter that should have been resolved by Texas authorities.
Civil lawsuit In early 1999,
The New Republic picked up a story, first reported by Houston-area alternative weeklies, alleging that DeLay had committed
perjury during a civil lawsuit brought against him by a former business partner in 1994. The plaintiff in that suit, Robert Blankenship, charged that DeLay and a third partner in Albo Pest Control had breached the partnership agreement by trying to force him out of the business without buying him out. Blankenship filed suit, charging DeLay and the other partner with breach of
fiduciary duty,
fraud,
wrongful termination, and loss of corporate expectancy. While being
deposed in that suit, DeLay claimed that he did not think that he was an officer or
director of Albo and that he believed that he had resigned two or three years previously. However, his congressional disclosure forms, including one filed subsequent to the deposition, stated that he was either president or chairman of the company between 1985 and 1994. Blankenship also alleged that Albo money had been spent on DeLay's congressional campaigns, in violation of federal and state law. DeLay and Blankenship
settled for an undisclosed sum. Blankenship's attorney said that had he known about the congressional disclosure forms, he would have referred the case to the
Harris County district attorney's office for a perjury prosecution. Two of DeLay's former political aides,
Tony Rudy and
Michael Scanlon, as well as Abramoff himself, pleaded guilty in 2006 to charges relating to the investigation. Political columnist
Robert Novak reported that Abramoff "has no derogatory information about former House majority leader Tom DeLay and is not implicating him as part of his
plea bargain with federal prosecutors." According to
ABC's
20/20 television program and
NPR, Abramoff lobbied DeLay to stop legislation banning
sex shops and
sweatshops that forced employees to have abortions in the
Northern Mariana Islands when Abramoff accompanied DeLay on a 1997 trip to the U.S.
commonwealth. While on the trip, DeLay promised not to put the bill on the legislative calendar. In 2000, the U.S. Senate unanimously passed a worker reform bill to extend the protection of U.S. labor and
minimum-wage laws to the workers in the Northern Mariana Islands. DeLay, the House Republican Whip, stopped the House from considering the bill. DeLay later blocked a fact-finding mission planned by Rep.
Peter Hoekstra (R-MI) by threatening him with the loss of his subcommittee chairmanship. Later that month, the DeLays, Rudy, another aide, and Abramoff took a trip to
London and Scotland. Abramoff paid for the airfare for the trip, and lobbyist Ed Buckham paid for expenses at a hotel at St. Andrews golf course in Scotland. Abramoff was reimbursed by The National Center for Public Policy Research, the nonprofit organization that arranged the trip. On the day that the trip began, The National Center received large donations from two of Abramoff's clients, internet lottery service eLottery, Inc., and the Mississippi Band of Choctaw Indians. Both organizations denied that they had intended to pay for DeLay's trip. House rules forbid members to accept travel expenses from lobbyists, and require that members inquire into the sources of funds that nonprofits use to pay for trips. DeLay denied knowing that lobbyists had paid for travel expenses. In July 2000, DeLay voted against a bill that would have restricted Internet gambling. Both eLottery and the Choctaws opposed the bill. In January 2006,
The Associated Press reported that in 2001, DeLay co-signed a letter to
U.S. Attorney General John Ashcroft calling for the closure of a casino owned by the
Alabama-Coushatta Tribe of Texas. Two weeks earlier, the Choctaws had donated $1,000 to DeLay's
Texans for a Republican Majority PAC (TRMPAC). A DeLay spokesman denied that the donations had influenced DeLay's actions. Currently, and at the time of the letter, casinos or other private gambling establishments are illegal in Texas, even on Indian reservations. Scanlon, who became Abramoff's lobbying partner, pleaded guilty in November 2005 to
conspiracy charges. Abramoff pleaded guilty to
fraud,
tax evasion, and
conspiracy charges on January 3, 2006, and agreed to cooperate with the government's investigation. His cooperation may have forced DeLay to abandon his efforts to return to his position as House majority leader, Abramoff referred clients to Ed Buckham's
Alexander Strategy Group (ASG), a lobbying firm. In addition, Abramoff clients gave more than $1.5 million to Buckham's U.S. Family Network, which then paid ASG more than $1 million. From 1998–2002, ASG paid Christine DeLay (Tom DeLay's wife) a monthly salary averaging between $3,200 and $3,400. DeLay's attorney, Richard Cullen, initially said the payments were for telephone calls she made periodically to the offices of certain members of Congress seeking the names of their favorite charities, and that she then forwarded that information to Buckham, along with some information about those charities. In early June 2006, Cullen said the payments were also for general political consulting she provided to her husband. In all, Christine DeLay was paid about $115,000 directly by ASG, and got another $25,000 via money put into a
retirement account by the firm. Her work with ASG has been the subject of an inquiry by the Department of Justice. In August 2010, the government ended a six-year investigation of his ties to Abramoff, according to DeLay's lead counsel in the matter, Richard Cullen. A state case continued in Texas. ==Political positions==