The Muckraker's Reference Section
GrassRoots Interactive
GrassRoots Interactive, nominally a lobbying firm, was a front company Jack Abramoff used to funnel money. It was founded in May 2003 by Edward B. Miller, who is now the chief-of-staff to Robert. L Ehrlich Jr. (R-Md.).
When Miller left to work for Ehrlich in the fall of 2003, he sold GrassRoots to Samuel Hook, who was then Abramoff's partner at his well-known firm Greenberg Traurig. Hook's lawyer told the New York Times in a November 10, 2005 article, "Mr. Abramoff solely controlled G.R.I."
Key Points:
Abramoff urged that Tyco hire GrassRoots Interactive, then made off with the fees.
Abramoff and his firm persuaded Tyco to hire Grassroots for a $1.8 million lobbying effort to protect tax breaks the company received as an offshore corporation based in Bermuda. Former Tyco official Timothy E. Flanigan testified that Tyco only did so after assurances that Abramoff had no ties to GrassRoots. After they paid, Flanigan testified, Tyco lost track of the money.
Prosecutors have said that $1.7 million of the $1.8 million went to Abramoff or entities that he controlled.
GrassRoots Interactive had contracts set up with the president of Gabon to funnel $9 million to Abramoff.
On August 7, 2003, a contract between GrassRoots Interactive and the government of the West African nation Gabon was drafted, but never signed. The contract called for GrassRoots to arrange a meeting between Gabon's President Omar Bongo and President Bush. In exchange, $9 million was to be wired to GrassRoots Interactive in three installments of $3 million each. A second contract drawn up on the same day, also never signed, called for $1 million to be paid to Greenberg Traurig, Abramoff's better-known firm, for the same services.
Bongo eventually did meet with Bush 10 months later on May 26, 2004, but the White House claims the meeting was arranged through regular scheduling, and that they did not know that Abramoff was involved in making the arrangements.
Released Abramoff emails show that he had tried to recruit Gabon as a client previously, offering to visit the nation along with several senators and representatives following their annual August golf trip to Scottland. In one message, Abramoff told Bongo's office that he would only make the trip if it was "on the basis by which I travel anywhere, being in a private aircraft, which bears a substantial cost unfortunately." Lobbyists for foreign governments are required to register with the Justice Department, but it appears Gabon never became an official client of GrassRoots or Greenberg Traurig.
Millions of dollars from GrassRoots Interactive found their way into Abramoff's family's companies.
Documents from GrassRoots show millions flowing through the firm in 2003, including $2.3 million to a California consulting firm with same address as the law firm of Abramoffs brother, Robert. Also, $400,000 was paid to Kay Gold, another Abramoff family company.
Research by Amram Migdal
return to the homepage
