S. CONGRESS 109?68 2d Session COMMITTEE PRINT MINORITY STAFF REPORT INVESTIGATION OF JACK USE OF TAX-EXEMPT ORGANIZATIONS PREPARED BY THE MINORITY STAFF OF THE COMMITTEE ON FINANCE UNITED STATES SENATE CHARLES E. GRASSLEY, Chairman MAX BAUCUS, Ranking Member OCTOBER 2006 Printed for the use of the Committee on Finance U.S. GOVERNMENT PRINTING OFFICE WASHINGTON 2006 For sale by the Superintendent of Documents, US. Government Printing O??lce Internet: bookstoregpogov Phone: toll free (866) 512-1800; DC area (202) 512?1800 Fax: (202) 512?2250 Maii: Stop SSOP, Washingzon, DC 20402?0001 NATIONAL CENTER FOR PUBLIC POLICY RESEARCH The National Center for Public Policy Research which represents itself as a ?conservative think tank,? is organized under IRC section The organization, founded in 1981, describes its primary exempt purpose as educating Americans about the free market solutions to today?s public policy problems. On its website, is described as a research organization dedicated to a strong national defense and to providing free-market solutions to today?s public policy problems. The website states: ?We believe that the principles of a free market, individual liberty and personal responsibility provide the greatest hope for meeting the challenges facing America in the let century.? Amy Ridenour, president and a founder of the organi- zation, ?rst met Mr. Abramoff when they were members of the Col- lege Republicans. In testimony before the Committee on Indian Af? fairs and in an interview with Finance Committee staff, Ms. Ridenour said that her organization accepted donations from Mr. Abramoff?s clients and routed money as Mr. Abramoff directed. Mr. Abramoff served on board of directors. E-mail exchanges among Ms. Ridenour, Mr. Abramoif, and Mr. Abramo??s colleagues and clients indicate that Ridenour: 0 accepted payments from Mr. Abramoff?s clients and then acted as the front organization to pay for trips by members of Con- gress, their staff members and others, 0 accepted payments from Mr. Abramofi?s clients and then wrote checks as Mr. Abramoff directed, and 0 accepted contributions from Mr. Abramoff?s clients and then performed services such as writing favorable newspaper col- umns and speaking in favor of clients? causes. A. ACTING AS A FRONT ORGANIZATION FOR TRAVEL Mr. Abramoff arranged for Members of Congress and others to travel extensively at the expense of clients, while funneling the money through which would then be named as sponsor of the trips on of?cial disclosure forms. Nell Rogers with the Choctaw tribe told the Committee on Indian Affairs that the tribe paid $65,000 in 2000, which apparently was used to help nance a golf trip to Scotland for members of Congress and others. Ms. Rogers told staff of the Committee on Indian Affairs that the money was intended for anti-tax and other work and not for a Scot~ land trip.30 29 National Center for Public Policy Research website, . 3? ?Gimme Five" report, p. 36. (23) 24 US. Commonwealth of the Northern Mariana Islands Ms. Ridenour said Mr. Abramoff believed that the ?full story? on the U.S. Commonwealth of the Northern Mariana Islands was not getting out, so he arranged ?fact??nding? trips for employ- ees of think tanks, Members of Congress, congressional staff, and others. She said Mr. Abramoff asked that become a spon- sor so that Members of Congress and their staffs could attend and abide by the rules. She said she had no objections because she had gone on such a trip and it had been truly educational. ?As far as I knew for years, he, they went, sat in a room like I did, talked about OSHA violations, I don?t know,? Ms. Ridenour told Coma mittee staff. Patrick Pizzella, a colleague of Mr. Abramo??s at Preston Gates, wrote to Mr. Abramoff on July 1, 1996, to explain how they planned to funnel money to to pay expenses related to a trip to the CNMI. Mr. Pizzella is referring to Doug Bandow, who went on the trip: Jack, the airplane tickets were paid by PG [Preston Gates]; the hotel bills were paid by CNMI (each traveler just signed bill?wno credit requested); that leaves basically the fees for Bandow?s services and report; and the reim- bursement for the bills he accumulated (mostly hotel and food) in Guam and Samoa. That should come to about $10,000. That is the amount CNMI should provide as a grant to Then they can cut check to Bandow. I do not see need for us to send airplane bills to and then CNMI sending money ($30,000) to cover you? Let me check further with Doug to nail down amount of bills he accumulated. I would like to ?nish up the $35 as- pect of this as soon as possible?it will impress Doug and Amy?both of who we will want to call on again in the fu- ture. Thanks. On December 17, 1999, Mr. Abramoff wrote to Willie Tan, a Saipan garment manufacturer who was a client. Mr. Abramofl? said that Mr. Tan needed to wire $25,577 to to pay for a trip to Saipan and Tinian. As I indicated, this should be wired to the National Center for Public Policy Research so they can pay it. Here is their wiring information. Please con?rm to me when this has been sent so I can coordinate it on this side, which will be a bit tricky. The same day, Ms. Ridenour wrote to Mr. Abramo?": OK regarding the reimbursables. I?ll do what you want, of course. On December 29, 1999, Mr. Abramoff told Ms. Ridenour that a wire for $25,577 was coming her way: . . . When you receive it, please let me know. Once it is received, please draw two checks: One payable to me in the amount of $17 ,488 (for airfare) and one in the amount of $8,129 to Alexander Strategy Group (for hotel and other