Cash-in-freezer congressman is indicted

WASHINGTON — Rep. William J. Jefferson, D-La., was indicted Monday for allegedly using his congressional office to enrich himself and his family through a pattern of fraud, bribery and corruption that spanned five years and two continents.

The charges, the first against a Democratic member of Congress in the wake of the Justice Department's recent crackdown on public corruption, follow a two-year investigation that gained attention when FBI agents raided Jefferson's home and found $90,000 in cash stuffed in his freezer.

The 16-count, 94-page indictment, handed up Monday by a federal grand jury in Alexandria, Va., contains the first charges brought against a U.S. official for violating the Foreign Corrupt Practices Act, enacted 30 years ago to combat bribery of foreign officials by U.S. corporations.

The allegations of money laundering, bribery and racketeering accuse Jefferson of soliciting millions of dollars in fees and company stock in exchange for using his office to promote wide-ranging business interests in West Africa, including a telecommunications start-up, an oil-exploration company and a waste-recycling company.

He allegedly negotiated one deal in a congressional dining room on Capitol Hill and took official trips abroad to promote ventures in which he or his family had a financial stake, without disclosing the true intention of the travel on congressional disclosure forms.

Jefferson, 60, a member of Congress since 1990, is expected to be arraigned and enter a plea of not guilty Friday in U.S. District Court in Alexandria. If convicted on all charges, he could be sentenced to up to 235 years in prison.

Addressing the media outside his Los Angeles office, Jefferson attorney Robert Trout said that "Congressman Jefferson is innocent," and that "he plans to fight this indictment and clear his name."

Trout told reporters that the Justice Department had inspected every aspect of Jefferson's public and private life, and he accused federal agents of contriving to "trap" Jefferson in a government sting.

"But even after they had turned over every rock, they did not allege in this indictment that [Jefferson had] promised anybody any legislation," Trout said. "There is no suggestion that he promised anyone any appropriations. There were not earmarks. There were no government contracts.

"None of the things that congressmen do is in this indictment," Trout said.

Jefferson is charged with soliciting bribes from 11 companies for himself and his family, as well as bribing a Nigerian government official. The alleged scheme covered five years, from August 2000 to August 2005, and included a front company that Jefferson allegedly set up to hide the money.

"But the essence of the charges are really very simple," said Chuck Rosenberg, the U.S. attorney in Alexandria. "Mr. Jefferson corruptly traded on his good office and on the Congress."

The indictment alleges that Jefferson and his family attempted to extract millions in fees in exchange for various favors, although Rosenberg conceded the amount they actually pocketed appeared to be far less, perhaps no more than $500,000.

House Speaker Rep. Nancy Pelosi, D-Calif., said Monday that the charges contained in the indictment were "extremely serious" and would constitute "an egregious and unacceptable abuse of public trust and power," if proved true.

Pelosi led an effort to strip Jefferson of his seat on the House Ways and Means Committee last year even though he had not yet been charged with a crime.

"As we have demonstrated in implementing tough ethics reforms and passing tough lobbying reforms already this year, Democrats are committed to upholding a high ethical standard and eliminating corruption and unethical behavior from the Congress," Pelosi said.

Republicans countered by introducing a resolution to refer the matter to the House Ethics Committee and challenged the new Democratic majority to take swift action against their indicted colleague.

"If the charges against Congressman Jefferson are true, he should be expelled from the House of Representatives, or he should resign to spare his constituents and colleagues any further indignity," said House Republican Leader John Boehner, R-Ohio.

In recent high-profile cases involving Republicans, former Rep. Bob Ney of Ohio was sentenced in January to 2 ½ years in federal prison for trading political favors for gifts and campaign donations from lobbyist Jack Abramoff.

Former Rep. Randy "Duke" Cunningham of California was sentenced in 2006 to eight years and four months in prison. He collected $2.4 million in homes, yachts, antique furnishings and other bribes in a corruption scheme.

Former Rep. Tom DeLay of Texas was charged Oct. 3, 2005, with felony money laundering and conspiracy in connection with Republican fundraising efforts in 2002. The case is still in the courts.

Jefferson first attracted the interest of federal investigators in 2005 in connection with his role in promoting a fledgling Louisville, Ky., digital-technology company, iGate, which was looking to gain a foothold in Africa. An investor in the venture became concerned and contacted the FBI, and agreed to wear a listening device for federal authorities.

According to the indictment, Jefferson told the investor during a meeting in July 2005 that he would need $500,000 to bribe a Nigerian official to ensure "that the little hook is in there." The investor delivered $100,000 in cash — marked bills from the FBI — that was intended as a first installment on the bribe. Jefferson later assured the investor that he had delivered the "African art" to the official.

The FBI eventually found $90,000 of the marked bills in Jefferson's freezer, "wrapped in aluminum foil, and concealed inside various frozen food containers," according to the indictment.