FOR IMMEDIATE RELEASE CRM

FRIDAY, MARCH 31, 2006 (202) 514-2007

WWW.USDOJ.GOV TDD (202) 514-1888

Former Lobbyist Tony Rudy Pleads

Guilty To
Corruption And Fraud Conspiracy
WASHINGTON – Former lobbyist Tony C. Rudy pleaded guilty to conspiring with
Jack Abramoff, Michael Scanlon and others to commit honest services fraud, mail
and wire fraud, and a violation of conflict of interest post-employment restrictions,
Assistant Attorney General Alice S. Fisher of the Criminal Division announced
today.

Rudy, 39, entered his plea today in U.S. District Court in the District of Columbia
before Judge Ellen Segal Huvelle. Under the terms of a plea agreement, Rudy faces
up to five years in prison, a fine of $250,000, mandatory restitution estimated to be
approximately $100,000 as well as supervised release following his incarceration.
Rudy has agreed to cooperate with law enforcement officials in the ongoing
investigation. Rudy’s named co-conspirators, Jack Abramoff and Michael Scanlon,
previously pled guilty in this investigation, and are also cooperating with law
enforcement officials.

“The American public loses when officials and lobbyists conspire to buy and sell
influence in such a corrupt and brazen manner,” said Assistant Attorney General
Alice S. Fisher of the Criminal Division. “By his admission in open court today, Mr.
Rudy paints a picture of Washington which the American public and law
enforcement will simply not tolerate.”

According to the plea agreement signed by Rudy, from 1995 through December
2000, he was employed in the leadership office of a member of the U.S. House of
Representatives, described as Representative #2. In December 2000, Rudy left the
leadership office. He joined Abramoff in January 2001 in the Washington, D.C.,
office of a law and lobbying firm, where he worked until late July 2002. Beginning
in 1997 and continuing throughout his time as the deputy chief of staff in
Representative #2's leadership office, Rudy corruptly accepted a stream of things of
value from Abramoff and others while he repeatedly took official action on their
behalf. Once Rudy became a lobbyist with Abramoff, Rudy’s role in the conspiracy
changed to providing a stream of things of value to other public officials, including
a member of the U.S. House of Representatives, described as Representative #1.

According to the information filed with the plea agreement, while Rudy was a
public official, he created a company called Liberty Consulting, LLC, and through
the consulting firm, received approximately $86,000, some of which was for
services not rendered. He also received meals, tickets to sporting events and golf
trips. For example, the information states that Rudy received an all-expenses-paid
trip by private jet in March 2000 to the U.S. Open golf tournament at Pebble Beach,
Calif.

Also according to the information, within one year of leaving his official position in
the leadership office of Representative #2, Rudy communicated with employees in
the leadership office of Representative #2 with the intent to influence official action.

According to the information filed with the plea agreement, after leaving
government service and joining Abramoff at Firm B, Rudy, Abramoff and others
offered things of value to Representative #1 and members of his staff, including
tickets to concerts and sporting events in luxury suites at the MCI Center, Camden
Yards Stadium and FedEx Field; use of luxury suites during entertainment events
for campaign fund raisers; and golf outings. For example, Rudy invited
Representative #1 and his chief of staff to travel to Scotland in August 2002, and
said that the trip would involve golf, “drinking and smoking cubans.”

Rudy concealed his receipt of this largesse by failing to disclose many of the
numerous gifts or trips on the disclosure forms required by the rules of the House of
Representatives. As Rudy admitted to in the plea agreement, he repeatedly took
official action for Abramoff or his clients during this same period.

Furthermore, the information alleges that the conspiracy committed by Rudy

included advising members of Congress, while still employed in the leadership
office of Representative #2, to vote against proposed legislation limiting gambling
on the internet, without disclosing that he gave this advice in part because Abramoff
asked him to oppose the legislation and provided him with things of value.

Rudy also admitted that, as a lobbyist working for Abramoff, he violated the
conflict of interest post-employment restrictions by lobbying staff members in the
leadership office of Representative #2 within one year of having left his position as
Deputy Chief of Staff to that office.

This case is being prosecuted by Trial Attorneys Mary K. Butler and M. Kendall
Day of the Public Integrity Section, which is headed by Acting Chief Andrew C.
Lourie; and Guy D. Singer and Nathaniel B. Edmonds of the Fraud Section, which
is headed by Acting Chief Paul E. Pelletier. The case is being investigated special
agents of the Federal Bureau of Investigation, the General Services Administration
Office of Inspector General, the Department of the Interior Office of the Inspector
General, and Internal Revenue Service Criminal Investigation.

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