Tom DeLay and Jack Abramoff

July 6th, 2005 1:59 pm
For Lobbyist, a Seat of Power Came With a Plate

An email message from the lobbist Jack Abramoff instructed the Signatures restaurant staff not to charge Tom DeLay and his guest for a meal.

Subject: Tom and Christine DeLay

Want to come in Thursday May 9, 7PM. Table of 6, put it where I sit and remove that other table. Their meal is to be comped. Thanks

By Glen Justice / New York Times

WASHINGTON, July 5 - The lobbyist Jack Abramoff mixed business with business at Signatures, the upscale restaurant he opened here three years ago. Playing host at his private corner spot, Table 40, he courted Republican lawmakers and talked strategy with subordinates while eating rolls of sushi and firing commands to the staff on his BlackBerry.

Signatures appeared to satisfy several ambitions for Mr. Abramoff, who is at the center of two widening fraud investigations. By most accounts, he reveled in the role of celebrity restaurant owner. His expense account restaurant, which offered a $74 steak and a $140 tasting menu, packed in Capitol Hill staffers and prominent politicians.

Mr. Abramoff could patronize his own business - his meals were sometimes prepared in a special kosher kitchen - while billing clients thousands of dollars. And he could generate good will by offering free food and drink to guests including Representative Tom DeLay of Texas, now the majority leader, and other members of Congress, according to restaurant records and interviews with former employees.

For example, Mr. Abramoff wrote an e-mail message to three restaurant managers in May 2002, instructing them not to charge Mr. DeLay, his wife, Christine, and four others when they came in a week later.

"Table of 6," Mr. Abramoff wrote, "put it where I sit and remove that other table. Their meal is to be comped."

In the restaurant's early months, a customer list noted who could dine for free, according to two former managers. A copy obtained by The New York Times shows handwritten notes next to 18 names - lawyers, lobbyists and eight current or former lawmakers - designating them as "FOO Comp," for friend of owner, or "A-Comp," for associate of owner.

Often, guests dined with Mr. Abramoff and did not receive a check, employees said, though Congressional rules prohibit lawmakers from receiving expensive gifts, including food.

"They would come in for lunch with Jack and they wouldn't get a bill," Laura Clifton, a former dining room manager at Signatures, said of Mr. Abramoff's guests. "It was a showplace and it was for business," Ms. Clifton added. "It was all business all the time."

Mr. Abramoff was in the restaurant almost daily, often treating a table full of guests to hundreds of dollars worth of food, wine and liquor, financial records show. Over a 17-month period in 2002 and 2003, the restaurant gave away about $180,000 in food and drink, with Mr. Abramoff's tab roughly $65,000 for himself and his guests, the records say. About a dozen former employees and managers, including three who provided records, described Mr. Abramoff's activities at Signatures. Most would speak only on condition of anonymity because of the investigations. Several acknowledged that they had left on poor terms, while most said they simply moved on.

Andrew Blum, a spokesman for Mr. Abramoff, disputed some of the employees' accounts, including one that a list was kept identifying customers eligible for free food.

"Every restaurant tries to avoid giving complimentary meals and drinks, but it does happen at virtually every restaurant," Mr. Blum wrote in response to written questions. "Nevertheless, there has never been a comp list at Signatures authorized by Mr. Abramoff."

Mr. Blum also disputes the accuracy of the financial records describing the amount of money attributed to free meals. "It is possible that information is being provided by unreliable sources," he said. He did not provide a number for the value of free meals.

Spokespeople for Mr. DeLay and the other lawmakers all said they had complied with ethics rules.

A Who's Who Spot

Mr. Abramoff, who was once a top lobbyist for the Greenberg Traurig law firm, is under investigation by a Congressional committee and a federal grand jury, which are looking into accusations that he defrauded four Indian tribes that paid him more than $80 million by inflating expenses, collecting kickbacks from consultants and diverting money intended for lobbying to pet projects.

His dealings at Signatures, it increasingly appears, are figuring in the inquiries.

A Congressional official who is monitoring the Justice Department's investigation of Mr. Abramoff said his use of Signatures in promoting his lobbying work was among the issues being examined by the grand jury. The official, speaking on condition of anonymity because of the investigation, said Mr. Abramoff was known to entertain lawmakers who might assist his lobbying clients.

Documents released by Congressional investigators show tribes got hefty bills for meetings at Signatures. The Mississippi Band of Choctaw Indians was billed more than $5,600 for Mr. Abramoff's meals with public officials and other lobbyists in 2002, records show.

On a good day, Signatures, on Pennsylvania Avenue between the White House and the Capitol, was thick with well-known figures. The White House strategist Karl Rove, House speaker J. Dennis Hastert and Gov. Arnold Schwarzenegger have all dined there.

"It was a who's who, and that's the way they wanted it," Michael Rosen, who worked as chef at Signatures when the restaurant opened, said. "Jack loved the attention of everybody being there."

Mr. Abramoff usually entertained at Table 40, former employees said. He had a preferred chair, a few favorite servers and his own set of hand-washed pots, dishes and silverware. Other times he ate in one of the restaurant's two private rooms, which have a rear entrance that allows guests to come and go in privacy.

Though some former employees described Mr. Abramoff as detached when it came to the details of restaurant operation, many others said he was engaged in the matters that concerned him. He instructed the staff about who could sit within earshot of him, for example, one former employee said.

And when the restaurant was opening, some workers said, he and his family were involved in everything from the menu to the décor. The walls were lined with signed historic documents - hence the restaurant's name - including a copy of former President Richard Nixon's pardon that later sold for almost $5,000.

The tables were set with Christofle flatware, custom Villeroy & Boch chargers, even special lint-free napkins. Guests could rent a wine locker to store their favorite vintages and buy cigars from the in-house humidor. The restaurant had a van for a while to chauffeur guests.

Mr. Abramoff's ownership in Signatures lifted him into an exclusive group of wealthy Washington lobbyists and consultants who owned a piece of their favorite hangout. He eventually had an interest in three Washington restaurants, though the two others, Stacks and Archives, closed. Signatures was his first, opening in February 2002.

Food critics delivered mixed reviews, dubbing it a place for those on an expense account, and the current menu shows why. A $36 beef filet tops the dinner entrees. A lunchtime hamburger served on brioche with the chef's own ketchup sells for $12 (goat cheese optional for an extra $2).

Still, Signatures, which advertised that it provided "Liberal portions in a conservative setting," became a favorite among Republicans. Dozens of lawmakers took advantage of its location to hold fund-raisers, parties and meetings. A few Democrats even became regulars, including the late Senator Daniel Patrick Moynihan of New York, who lived nearby and was honored with a plaque proclaiming his favorite table "Moynihan's Corner."

As Mr. Abramoff's legal troubles escalated in the past year, some lawmakers have scrambled to avoid any ethical questions that could result from their association with him or his restaurant. Earlier this year, for example, Mr. Hastert, the House speaker, and Senator David Vitter, a Louisiana Republican, paid the restaurant for fund-raisers held in 2003.

While Congressional ethics rules allow gifts from personal friends, lawmakers are generally limited to less than $100 in gifts from a single source each year, and any gift must be worth less than $50. Former employees say several lawmakers dined regularly at Mr. Abramoff's private table and at his expense. While some often insisted on paying, others made no such requests, they said.

Regular Visitors

Representative Dana Rohrabacher, a California Republican who said he had been friends with Mr. Abramoff for two decades and did not shy away from his hospitality.

Mr. Rohrabacher, whose name bears the "FOO Comp" designation on the customer list, said he ate at Signatures at Mr. Abramoff's expense once or twice a month and that the meals fell under the friendship exemption in House rules. He also said he tried to take Mr. Abramoff out regularly, paying for the lobbyist's meals in return.

"Just because you are a member of Congress doesn't mean you have to give up your friendships," Mr. Rohrabacher said, adding that "it was dinner with a friend and I didn't think of it as a gift."

Another regular visitor was Representative Bob Ney, an Ohio Republican who is chairman of the Committee on House Administration. Campaign finance records show Mr. Ney's campaign and his political action committee paid Signatures about $1,900 for meals and events between 2002 and 2004, according to PoliticalMoneyLine, which tracks political spending.

Former Signatures employees, however, say Mr. Ney also frequently ate and drank without paying as he spent evenings talking with lobbyists and Congressional staffers.

"There were times when meals and/or drinks were bought by him or for him by other members, lobbyists, or other persons, all within the limits of the gift rules," Brian Walsh, Mr. Ney's spokesman, wrote in an e-mail message in response to questions.

Restaurant records show a dinner for 18 was planned for Mr. Ney in April 2002. It was organized by Neil Volz, Mr. Ney's former chief of staff who was working with Mr. Abramoff at Greenberg Traurig at the time.

The cost of the planned event was listed at roughly $70 per person with a $1,500 minimum. Campaign finance records show no payment from Mr. Ney's campaign or his political action committee, according to PoliticalMoneyLine. Mr. Volz did not return calls seeking comment.

"We continue to search our records but are unable to confirm at this time whether there was an event that evening," Mr. Walsh wrote. "The congressman's schedule indicates that he may have stopped by Signatures that night, among other locations listed on his calendar. Absent additional information, we cannot provide further details."

Former employees also say Representative John T. Doolittle, a California Republican whose name appears on the list with the FOO Comp designation, was given free meals at the restaurant. But his spokeswoman, Laura Blackann, said Mr. Doolittle did nothing wrong.

"To his recollection, any meal the congressman had at Signatures was either paid for personally or paid for in compliance with House rules by someone with whom the congressman was dining," Ms. Blackann said.

Mr. DeLay was also a regular visitor to the restaurant. His longtime ties to Mr. Abramoff have come under scrutiny this year, and he could face an inquiry by the House ethics committee into whether an expensive overseas trip arranged by Mr. Abramoff violated House rules. Former Signatures employees say the Texas lawmaker, whose name appears on the list with the FOO Comp designation, usually made brief appearances for fund-raisers and other events but rarely lingered to eat. Restaurant records, though, show a reception and dinner for 16 - at $75 a person and a $1,500 minimum - were scheduled for Mr. DeLay's political action committee in a private room in April 2002.

The dinner was organized by Tony Rudy, a former DeLay aide who was working with Mr. Abramoff at Greenberg Traurig at the time, and Tom Hammond, a fund-raising consultant. Campaign finance records show no payment for the event.

Richard Cullen, Mr. DeLay's lawyer, declined to comment directly on the events at Signatures involving the majority leader, except to say Mr. DeLay could find no record that the May 2002 meal referenced in Mr. Abramoff's e-mail message took place. The e-mail and some other information about free meals at Signatures was first reported by Time magazine.

Plans to Cooperate

"Mr. DeLay has stated repeatedly that he believes he has at all times conformed with House rules and that he will cooperate fully at the appropriate time with those whose responsibility it is to review these matters," Mr. Cullen said. "But he will not engage the press each time a political opponent feeds reporters often incomplete, irresponsible or inconsistent information. To do so would legitimize these political attacks and would be inappropriate."

Other lawmakers whose names carried the "FOO" notation include Republican Representatives Roy Blunt of Missouri and Frank A. LoBiondo of New Jersey, as well as former Senators John G. Breaux, Don Nickles and Tim Hutchinson. But the Signatures employees did not describe them as having regularly eaten with Mr. Abramoff or as often receiving free meals.

Spokespeople for Mr. Blunt and Mr. LoBiondo said the lawmakers never received free meals at Signatures. Mr. Nickles and Mr. Hutchinson did not return telephone calls seeking comment. Mr. Breaux, a former Democratic senator who now works for a law firm, said: "I never got a comped meal there in my life. And I'm certainly not a friend of Abramoff."

While Signatures was popular, it struggled to make money, according to employees and documents.

Mr. Abramoff and his companies invested more than $3 million in Signatures from January 2002 to May 2003, records show. At the same time, he and his employees gave away tens of thousands of dollars in food, wine and liquor, the records show. That includes menu prices for Mr. Abramoff's own food and drink, as well as employee discounts and free meals given by restaurant managers and staff, according to the records. Nationwide, the median expense for marketing, including free meals and drinks, was about 3.5 percent of sales for expensive restaurants like Signatures that spend the most on such promotions, according to the National Restaurant Association. One national restaurant consultant, Clark Wolf, said the figure can go as high as 5 percent.

At Signatures, free meals and drinks for managers and guests alone were about 7 percent of revenues for the restaurant's first 17 months, according to former employees and financial records. Mr. Blum, the spokesman for Mr. Abramoff, disputed that percentage.

Though still busy, Signatures is no longer the power hangout that it once was. Mr. Abramoff is negotiating to sell his interest, said Bronwyn Jacoby, a restaurant spokeswoman. Many of the lavish features have been cut back. Signatures is no longer open for breakfast. It no longer operates the van. And the $74 steak has disappeared from the menu.

By the end of the lunch hour Tuesday, the restaurant was deserted. While patrons lingered at outdoor tables two blocks away at the fashionable restaurant Ten Penh, none were seated on the patio outside Signatures - or, for that matter, at the dozens of empty indoor tables. As usual, one of the upstairs tables had a "reserved" sign on it.