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By Jim Drinkard, USA TODAY
WASHINGTON — Two top Washington lobbyists funneled millions of dollars through non-profit groups to disguise a scheme to cheat Indian tribes out of much of the money, according to documents released Wednesday and testimony from tribal officials.

David Grosh, former director of American International Center, testified about lobbying practices involving Indian tribes.

In e-mails, Jack Abramoff and Michael Scanlon even used a code word to describe their clandestine partnership: "Gimme five."

Some of the diverted money went to pay off an old debt Abramoff owed from his days as a B-movie producer, to a friend who conducted sniper training for members of the Israeli military and to pay for private dinners and club dues, the e-mails show.

Sen. John McCain, R-Ariz., chairman of the Senate Indian Affairs Committee, said the hearing with the Mississippi Band of Choctaw Indians was "simply and sadly, a tale of betrayal."

An April 12, 2001, message from Abramoff directs that $10,000 in Choctaw funds be sent to Ralph Reed's campaign for chairman of the Georgia Republican Party. Choctaw money also helped pay for a trip in 2000 for Abramoff, House Majority Leader Tom DeLay and others to the United Kingdom, where they played golf at the storied St. Andrews course.

Wednesday's hearing detailed how millions more went into the two men's pockets or to non-profit groups in their network. Tax-exempt groups are attracting growing attention because they often sponsor travel for lawmakers or take on other lobbying-related tasks but have minimal requirements for public disclosure of their funding.

The non-profits in this case were a "buddy system to move money around, to obscure its identity," said Sen. Byron Dorgan, D-N.D. "If you dyed that money purple, there'd be a lot of purple pants pockets around this town."

Abramoff and Scanlon got the Mississippi Choctaws to pay $15 million to Scanlon, of which Abramoff siphoned off $5 million, and $2 million to charities associated with Abramoff, McCain said. He said Abramoff falsified bills by inflating the number of hours he and his lobbying team at the Greenberg Traurig firm had worked. In April 2001, Abramoff e-mailed an aide to "add 60 hours for me," even though he had worked only two hours on tribal business.

Donald Kilgore, attorney general for the Choctaws, said the tribe is in "very sensitive settlement negotiations" with Greenberg Traurig to recover losses. The tribe also is in talks with the law firm of Preston Gates, which previously employed Abramoff, he said.

The Mississippi Choctaws were one of six tribes that paid at least $82 million to Scanlon, Abramoff and their network. The panel looked at other payments from tribes in earlier hearings that revealed what McCain called the lobbyists' "utter contempt" for their clients and their "insatiable greed."

Andrew Blum, an Abramoff spokesman, said his client was in an "impossible position," unable to publicly defend himself while the Justice Department and the Senate investigate whether or not these activities violate the law. Blum said the fees that Abramoff and his law firms charged "were more than justified" by his lobbying successes for the tribes. Scanlon's lawyer, Stephen Braga, did not immediately return telephone calls.

Two former Abramoff aides called as witnesses on Wednesday, Kevin Ring and Shawn Vasell, invoked their Fifth Amendment right against self-incrimination in declining to answer questions.

David Grosh of Rehoboth Beach, Del., who has worked as a lifeguard, bartender and construction worker, recounted how his friend Scanlon offered to make him director of a new group, the American International Center. "He wanted me to head an international corporation. Hard one to turn down," Grosh said.

The center was one of several non-profits Abramoff and Scanlon used to move money. In some cases, the Choctaws sent money to tax-exempt groups expecting it would be passed through to other entities to help them with their lobbying goals. Kilgore declined to answer a reporter's question about why the Choctaws agreed to send money to charities, knowing it would not be used for a charitable purpose.