Ralph Reed's Gamble
by JACK NEWFIELD
The Nation
[from the July 12, 2004 issue]
When Ralph Reed was the boyish director of the Christian Coalition, he made opposition to gambling a major plank in his "family values" agenda, calling gambling "a cancer on the American body politic" that was "stealing food from the mouths of children." But now, a broad federal investigation into lobbying abuses connected to gambling on Indian reservations has unearthed evidence that Reed has been surreptitiously working for an Indian tribe with a large casino it sought to protect--and that Reed was paid with funds laundered through two firms to try to keep his lucrative involvement secret. Reed has always operated behind the scenes, and apparently he didn't want to risk becoming a humbled hypocrite like his right-wing cohorts William Bennett and Rush Limbaugh.
News accounts of the emerging scandal have focused on the two main figures under investigation: lawyer/lobbyist Jack Abramoff and Mike Scanlon, House GOP majority leader Tom DeLay's former spokesman and head of two campaign and public relations companies. But Reed has managed to slither below the media's radar--until now.
Neither he, Abramoff or Scanlon returned phone calls.
In early 2002 the Coushatta tribe of Louisiana was desperately trying to kill a planned competing casino that the rival Jena Band wanted to build in southwestern Louisiana. This new casino would have broken the Coushattas' geographical monopoly and cost the tribe--whose casino was grossing $300 million a year-- an estimated $1 billion in gambling revenue over five years. The Jena Band had hired former GOP national chairman Haley Barbour to make sure its casino compact was approved by the heavily politicized Bureau of Indian Affairs. So the Coushatta tribe, which already was in the process of paying Abramoff and Scanlon some $32 million over three years, also hired Reed, according to three witnesses and documents obtained by The Nation. This was not a crime, just furtive hypocrisy.
Two casino industry lobbyists--Philip Thompson and Bill Grimes--say they were in a meeting in Baton Rouge early in 2002 and heard William Worfel, vice chair of the Coushatta tribe, say he was hiring Reed to lobby for the tribe with the BIA to neutralize the influence Barbour had with the Bush Administration. According to Thompson, Worfel, who also did not return phone calls, "said he was putting Reed on his payroll. He said, 'If they have Barbour, we need Reed.'" A third casino lobbyist at the meeting, who requested anonymity, says Reed helped "mobilize Christian radio and ministers against the casino." But, he says, "He wanted to be able to deny it. Or if it came out, he wanted to be able to claim he was against the Jena casino, without anybody knowing he was getting paid by a bigger tribe with a bigger gambling operation."
The documents obtained by The Nation show that Reed sent bills to Abramoff and Scanlon and that one of his consulting companies, Century Strategies of Duluth, Georgia, received $250,000 from one of Scanlon's companies, Capitol Campaign Strategies. An invoice to Abramoff from another Reed company, Capitol Media, for $100,000, states only that the payment is for "Louisiana Project Mgmt. Fee." (The main thrust of the Justice Department investigation involves money laundering among Scanlon, Abramoff and Republican campaigns. Abramoff was fired by his firm for not disclosing $10 million in payments from Scanlon.)....
