Abscam

THE ABSCAM scandal involved a Federal Bureau of Investigation (FBI) sting operation conducted during the late 1970s in which members of Congress and other prominent political figures were videotaped accepting financial bribes from agents posing as Arabian sheiks. In all, seven legislators including a senator and six Congressional representatives from five different states were convicted, fined and/or imprisoned for accepting cash or stock bribes in return for political favors.

The ABSCAM (which is short for Abdul Scam and named after the bogus Abdul Enterprise company) operation began in 1978 when FBI agents working with a convicted swindler, Melvin Weinberg, created a fraudulent Arabian company, Abdul Enterprises Limited, on Long Island, New York. The fictitious company was set up to represent imaginary and wealthy Arabs, Kambir Abdul Rahman and Yassir Habib, who were interested in investing in the United States.

Weinberg was designated the chairman of the company. Once established, agents quickly spread word about the two wealthy Arab businessmen and their intentions to engage in shrewd business transactions. As part of the operation, the FBI deposited $1 million at the Chase Manhattan Bank in the name of Abdul Enterprises to give the false company instant credibility. Originally, the operation was established to focus on business officials accepting bribes or engaging in other fraudulent practices. For instance, the fictitious Arabs engaged in several scrupulous deals with individuals selling stolen securities, art, and forgers of certificates of deposit. However, by the fall of 1978, the ABSCAM operation ventured into the political arena that involved bribes of federal and state officials.

A group that had sold Abdul Enterprises phony certificates of deposit suggested that the wealthy Arabs should establish a casino in New Jersey. This forger group offered to introduce the fictitious Arabs to a New Jersey politician who could guarantee a state gambling license. The politician was Angelo Errichetti who was the mayor of Camden, New Jersey. Shortly after their initial meeting with Errichetti, Abdul Enterprises was able to bribe the vice-chairman of the New Jersey Casino Commission, Kenneth MacDonald, concerning the approval of the gambling license. By the spring of 1979, Errichetti provided undercover FBI agents with a written list of federal and state politicians in New Jersey and the surrounding areas who were willing to engage in similar corrupt relationships. Errichetti indicated that these politicians were open to bribes concerning construction related issues, such as zoning waivers and building permits. In other instances, Errichetti arranged meetings between two Philadelphia lawyers, Howard Criden and Ellis Cook, and the Arab sheiks who expressed interest in gaining political asylum.

The Congressional bribery stage of ABSCAM operation occurred in July 1979 when Errichetti arranged a meeting between associates of Kambir Abdul Rahman, one of the fictitious Arab businessmen, and two Democratic representatives from Pennsylvania, Ozzie Myers and Raymond Lederer. In particular, the two representatives were given $50,000 in cash to provide assistance in immigration issues and other political favors. Errichetti also introduced the Arab businessmen to Frank Thompson, Jr., a well-established Democratic New Jersey legislator. Thompson was the chairman of the House Committee on Administration and the Subcommittee on Labor-Management Relations.

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