March, 2004:

Tom DeLay is denying earlier reports that he has taken steps to deal with the possibility of being indicted by a Travis County grand jury in its investigation of TRM/TAB (see here).

“If the law is the standard in the state of Texas, then we have no problems and we don’t anticipate a problem,” DeLay, R-Sugar Land, said emphatically during a news conference in Washington.

“I have not been notified that I am being investigated; I have not been subpoenaed,” he said.

Targets of grand jury investigations aren’t always notified, however.

The Houston Chronicle reported last week that DeLay had told a group of Houston supporters March 8 that he may need to raise more money for a legal defense fund. There also have been reports in Washington that DeLay has discussed with some House Republicans a GOP conference rule that requires party leaders to step aside if they are indicted on a felony punishable by at least two years in prison. DeLay is the second-highest-ranking Republican in the House.

“All the reports are wrong. The reports in Washington are particularly wrong,” DeLay said. Speculation that he would consider stepping aside is “ridiculous,” he added.

DeLay acknowledged that during a recent meeting with financial supporters in Houston, he discussed what he called a political witch hunt by Travis County District Attorney Ronnie Earle, a Democrat. DeLay denied there were discussions about a legal defense fund for this case.

“None of that happened,” DeLay said. “I don’t have a transcript of everything that I said. Obviously, somebody sitting in that room — even though he gives me money, does not exactly support me — ran quickly to the Houston Chronicle. I don’t know what he said, and I really don’t care what he said.”

I’m not quite sure what he meant by that first sentence; as I understand it, the point of the earlier speculation was that Republican Party rules require a temporary abdication of leadership positions for someone who’s under indictment. That has nothing to do with Texas law. DeLay is clearly saying that he doesn’t expect to be indicted, and he may well be right, but that seems a bit tangential to the subject.

Anyway. New grand jury is in next week, and things ought to pick up from there.

Looks like Governor Perry’s Bahamian getaway was not appreciated by some Texans who weren’t afraid to tell him about it.

“With all due respect, have you LOST YOUR MIND?” asked a Lockhart woman in an e-mail to Perry. “This little trip to the Bahamas … has convinced a long-term, middle-aged conservative to vote you out of office.”

[…]

A San Angelo woman wrote that she was disappointed over the campaign fund use.

“My husband and I work hard for our money, and we don’t have time to take vacations, much less trips to the Bahamas,” she wrote. “I have contacted the Republican Party of Texas with instructions to remove us from their mailing/phone lists. We will no longer contribute to the Republican Party of Texas as long as you are in office.”

The possibility that publicly funded vouchers for private school tuition might have been discussed drew concern from a woman identified as a Dallas-area PTA leader. Perry, Leininger, the Texas Public Policy Foundation and Norquist have supported vouchers.

“Richardson Independent School District is broke, and you are being sweet talked into … diverting money to vouchers!” the woman wrote. “Wake up and smell the coffee, governor.”

A Richardson man said: “A select few seem to have your ear.”

A woman identifying herself as a Houston teacher wrote: “Thank you for humiliating the teachers of this city with such an extravagantly made-up way to spend money in the name of all underpaid educators. Oh, and just in case there are extra funds for the study of educational finance, I myself would be willing to go to the Bahamas and discuss reform with you.”

You can sign me up for that trip, too. I’ll even play shuffleboard with Grover Norquist if it’ll help.

News of the potential indictment and step-aside of Tom DeLay has hit the Chron, and it seems that DeLay has reacted to his situation the way he reacts to pretty much everything else: Cry “partisanship” and raise funds.

U.S. House Majority Leader Tom DeLay apparently is preparing for the possibility that a Travis County grand jury may indict him on charges of violating state campaign finance laws.

DeLay, R-Sugar Land, told a group of Houston supporters earlier this month he may need to raise more money for a legal defense fund.

[…]

DeLay and an aide in a March 8 private meeting at the Omni Houston Hotel talked to Houston supporters about the possible need to pay for a legal defense in connection with the grand jury investigation, according to two people who attended the meeting.

The meeting at the Omni was part of a regular event DeLay holds every three months for supporters called the “Congressional Quarterly Luncheon.” The two people interviewed by the Chronicle spoke on condition of anonymity.

DeLay talked about the grand jury investigation only after being asked about it by one of the 40 to 50 people in attendance, sources told the Chronicle.

DeLay talked briefly about a legal defense and then had an unidentified aide discuss the possible need for raising money for a legal defense fund.

One of those interviewed quoted DeLay as saying, “I fully anticipate being indicted.”

The other person did not remember hearing DeLay say anything like that, “but I gathered the money he might raise would be for him,” he said.

The Chronicle attempted to contact others who are known to have been at the meeting, but none responded.

Grella said neither DeLay nor the aide talked about setting up a new fund or of having any expectation of needing one.

Grella said the aide, whom he declined to name, explained to the crowd that a legal defense can be expensive. He said DeLay found that out when the Democratic Congressional Campaign Committee sued him for racketeering in 2000, a lawsuit that was later dropped.

“One staffer discussed the Democrats’ previous frivolous lawsuit that was thrown out of court, but didn’t discuss a new legal defense fund,” Grella said.

The Tom Delay Legal Expense Trust was set up in July 2000, according to the Capitol Hill newspaper Roll Call. Through November 2001 it had paid out $320,222 — about half the legal bill owed to the Houston law firm of Bracewell & Patterson to defend DeLay in the lawsuit.

Make of that what you will. Meanwhile, Roll Call is now reporting (via TAPPED) that DeLay may not step aside if he’s indicted after all.

Republican Conference rules state that a member of the elected leadership who has been indicted on a felony carrying a penalty of at least two years in prison must temporarily step down from the post. He or she may return to the job if found not guilty or if the charges are reduced below a felony or dismissed.

Texas Rep. John Carter (R), a former Williamson County district judge, said an indictment “is not intended to be a declaration of guilt” and that it would be “pretty rough” if DeLay had to relinquish the Majority Leader post without having been convicted of anything.

Repeating a well-known legal adage, Carter said, “A DA can indict a ham sandwich given the opportunity.”

It’s way too early to say what could happen – this is all speculation on top of speculation. As a new grand jury get empanelled, things ought to pick up shortly. So stay tuned.

UPDATE: Missed this story in The Hill, which suggests DeLay may have another Democratic prosecutor sniffing around him, in this case because of his sham charity, Celebrations for Children.

[Common Cause] recently made inquiries with Eliot Spitzer, New York attorney general, to determine whether the charity was properly registered. That may lead to a formal request for an investigation.

[They] allege that DeLay plans to use the charity improperly to fund political activities in New York City during the 2004 Republican National Convention.

[…]

Common Cause has made inquiries about DeLay’s charity with Spitzer (D) that may lead to a formal request by the group for his office investigate the charity.

An official at Common Cause said: “We’ve had contact with the office, and they are aware of the situation. The New York attorney general is one of the most aggressive enforcers of charities in the country.”

Spitzer, who would arguably have jurisdiction over the matter because DeLay’s charity would raise money in New York during the convention, which begins Aug. 29, could imperil the majority leader’s plans.

Spitzer has made a reputation by aggressively pursuing allegations of corporate crime when other government enforcement agencies have tread carefully. And many political observers believe he wants to run for governor some day.

More fun to look forward to. Via New Democrats Online.

Byron points to this WaPo article in which watchdog groups call for a House ethics investigation of another Tom DeLay moneymaking machine, in this case one masquerading as a charitable organization.

Democracy 21 contends that the charity, Celebrations for Children Inc., is a political scheme established to let DeLay raise huge sums from interest groups and supporters to host lavish parties at this summer’s Republican National Convention.

DeLay spokesman Jonathan Grella said at least three-fourths of the charity’s income will go to needy children, with the remainder paying for dinners, a golf tournament, a rock concert, Broadway tickets and the other fundraising events DeLay plans to host at the convention in New York City.

House ethics committee rules prohibit investigations based solely on an outside group’s complaint. But a complaint is deemed to be lodged if any House member forwards an outsider’s allegations with a letter saying the information is filed in good faith and warrants a review.

Democracy 21’s action is meant to put each House member on the spot — either challenge DeLay’s operation or silently condone it — said the group’s president, veteran open-government advocate Fred Wertheimer.

Wertheimer’s group had complained about Celebrations for Children in a Jan. 28 letter to the ethics panel, formally called the Committee on Standards of Official Conduct. “There is no public information, however, indicating that the Ethics Committee is pursuing this matter,” says Wertheimer’s latest letter to the panel.

Yesterday, he sent a copy to all 434 House members (one seat is vacant), saying, in part, “If just one House member is willing to act to defend the institutional integrity of the House, the Ethics Committee will be forced to proceed with an inquiry.”

House rules prohibit behavior by members or staffers that fails to “reflect creditably” on the House. Federal laws governing tax-exempt charities allow no more than an insubstantial portion of a group’s revenue to be spent on activities other than the charity’s main stated purpose.

Celebrations for Children fails both tests, alleges Wertheimer’s complaint.

“Tax-exempt charitable organizations are not supposed to be used as political playthings by Members of Congress,” his letter says. “The DeLay scheme will allow House members to attend, free of charge, such events as Broadway shows, golfing tournaments, yacht cruises, dinners, parties and other events, with the events being paid for by a ‘charitable’ organization and funded by big donors to the ‘charity,’ many of whom are likely to have important interests pending in Congress.”

Here is Democracy 21’s press release, which appears to be a followup to this statement decrying the lack of such an investigation as yet. The formal complaint is here (PDF). I’ve blogged on Celebrations for Children and the complaints surrounding it before (see here and here).

Shockingly, there are straws in the wind that DeLay might step down from his leadership position, as reported by Roll Call:

House Majority Leader Tom DeLay (R-Texas) has begun quiet discussions with a handful of colleagues about the possibility that he will have to step down from his leadership post temporarily if he is indicted by a Texas grand jury investigating alleged campaign finance abuses.

…Republican Conference rules state that a member of the elected leadership who has been indicted on a felony carrying a penalty of at least two years in prison must temporarily step down from the post.

Could it be that DeLay really fears the TAB/TRM investigations in Austin? The ferocious response from the GOP here, ranging from a blizzard of open record requests to a petition to move the Public Integrity Unit to the Attorney General’s office, suggest they feel the need to be vigilant. I still never thought DeLay would blink, though. On the other hand, he’s smart enough to know that grand juries often deliver for prosecutors, and he ought to have a Plan B in hand. So this is probably just pragmatism and not trepidation.

The possible implications are staggering. For sure, a big cog in the GOP’s fundraising machine would be gummed up. DeLay might even find himself in some electoral trouble, though it’d probably take a conviction to really do him in. Of course, if he’s forced to drop out of the race, would the GOP be able to field a backup candidate? I can’t quite figure out what the state law has to say. Whatever the case, you can of course give a hand to Richard Morrison, who will hopefully get a boost from all this.

Wow. Stay tuned.