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By Andy Sullivan
WASHINGTON, Dec 21 (Reuters) - Former U.S. lobbyist Jack Abramoff is negotiating a guilty plea with the U.S. government in a corruption probe, two people familiar with the investigation said on Wednesday, in a move that could spell trouble for Republican lawmakers.
A deal by Abramoff could further ensnare Ohio Republican Rep. Bob Ney, former House Majority Leader Tom DeLay, and other lawmakers who are also being investigated by the Justice Department for their ties to the former lobbyist.
Abramoff has been charged with conspiracy and wire fraud for falsifying a loan in the purchase of a Florida casino cruise line.
Abramoff has pleaded not guilty, but his partner in the deal pleaded guilty last week and agreed to cooperate in the probe.
Abramoff's trial is set for Jan. 9. He faces up to 30 years in prison and could pay $60 million in restitution.
Abramoff's cooperation in the probe could give the Justice Department more ammunition as it seeks to link lawmakers' activities to favors provided by Abramoff clients.
Ney accepted trips from Abramoff clients to Scotland's St. Andrews golf course and the Marianas Islands and dined frequently for free at Abramoff's upscale restaurant, according to Justice Department charges. During that period, Ney inserted comments in the Congressional Record that criticized Abramoff's rival in the cruise-line deal.
Ney's lawyer was not immediately available for comment.
DeLay is not mentioned in Justice Department indictments, but his former press secretary, Michael Scanlon, has pleaded guilty to conspiracy charges for defrauding Indian tribes of millions of dollars in a partnership with Abramoff.
Abramoff has not been charged in that case, but at least three lawmakers who have dealings with Indian tribes have returned more than $200,000 in campaign contributions from tribes that were Abramoff clients.
Democratic Sens. Byron Dorgan of North Dakota and Max Baucus of Montana and Republican Sen. Conrad Burns of Montana have returned the contributions because they said they did not want to appear to be associated with Abramoff.
A lawyer for Scanlon said he had no firsthand knowledge of an impending deal but was not surprised by it.
Any plea deal won't happen this week, and probably not next week, said one source who insisted on anonymity.
Abramoff spokesman Andrew Blum declined comment, as did his lawyer in the cruise line case, Neal Sonnett.
A Justice Department spokesman declined to comment.
(Additional reporting by James Vicini)
(c) Reuters 2005.