3 DeLay associates indicted
Updated: 9/21/2004 7:10 PM
By: Staff and wire reports
http://www.news8austin.com/content/top_stories/default.asp?ArID=120090
32 COUNT INDICTMENTS HANDED DOWN BY A TEXAS GRAND JURY
Ronnie Earle secured indictments against three of U.S. Rep. Tom DeLay's
associates and eight companies that donated money to a PAC.
A grand jury in Austin has indicted several people and companies linked
to a political action committee formed by U.S. House Majority Leader
Tom DeLay
But DeLay, a Republican from Sugar Land, has not been charged
The Travis County grand jury indicted some associated with the PAC called Texans for a Republican Majority. The list includes John Colyandro, James Ellis and Warren RoBold
Indicted on 16 counts, John Colyandro was director of the Texans for a Republican Majority Political Action Committee. The indictments include charges of money laundering and unlawful acceptance of political contributions from a corporation.
PACs raise and spend money to influence elections. Texas law prohibits the use of corporate money by associations or PACS to pay for any direct political activity, which is why Texans for a Republican Majority was under scrutiny. Much of the PAC's money came from major corporations.
James Ellis, one of DeLay's top aides was indicted on one count of money laundering.
Warren RoBold was indicted on 18 counts of making unlawful political contributions by a corporation.
Also indicted were several companies including Sears Roebuck and Cracker Barrel Old Country Store, which made contributions to the PAC. Other companies includes The Williams Companies, Questerra, West Star Energy, Diversified Collection Services, Bacardi and Alliance for Quality Nursing Care.
Several of the companies have responded to their indictments. Sears Roebuck says it's surprised and that its contribution followed all applicable laws.
The Alliance for Quality Nursing Home Care says the group believed it was acting lawfully when it made a donation.
Westar says there's no basis for the company to be held accountable for how others spent the money it donated.
The grand jury was investigating whether corporate funds were illegally used to help Republican candidates win elections in 2002.
The victories gave the GOP a majority in the Texas House for the first time since Reconstruction.
The grand jury's last meeting had been scheduled for Tuesday.
The indictments wrapped up a 20-month long investigation that began with a complaint being filed with the Travis County district attorney's office.
"We continue to receive additional information and it ends it in terms of the information available to use at the time," District Attorney Ronnie Earle said.
The grand jury was empaneled until the end of the month.
Earle said the investigation continues, but he did not say whether there would be any new indictments to come out. Two more grand juries could be called weigh additional evidence, Earle said.
This report includes material from the Associated Press.