March 31 (Bloomberg) -- Tony Rudy, former deputy chief of staff to Representative Tom DeLay, pleaded guilty in a case stemming from the corruption probe of lobbyist Jack Abramoff, bringing the scandal closer to the door of his one-time boss.

Rudy, 39, pleaded guilty to one count of conspiracy in federal court in Washington today. He admitted that he accepted payments arranged by Abramoff while serving in DeLay's office and as a lobbyist later worked with Abramoff and others to corrupt public officials and defraud clients.

Rudy's agreement to cooperate may give investigators a new window into misdeeds on Capitol Hill. A prominent Republican fundraiser, Abramoff, 47, had connections throughout Congress and the White House. Abramoff took both DeLay and Representative Bob Ney, an Ohio Republican, on golf trips and later employed their former aides. Both DeLay and Ney have denied wrongdoing.

``The next set of charges may be the most significant,'' said Greg Wallance, a former federal prosecutor who now works at the New York law firm Kaye Scholer LLP. If prosecutors can charge a lawmaker, they will, he said. ``You start with the outer circle and you work your way into the center.''

Rudy is the second former DeLay aide to plead guilty to crimes connected with Abramoff, who was sentenced March 29 to more than five years in prison by a Florida court. In November, former DeLay spokesman Michael Scanlon, Abramoff's business partner, pleaded guilty to conspiring to corrupt public officials. Both are cooperating with the Justice Department.

`Lobbyist B'

Supporting documents released with the plea agreement put a third former DeLay aide under scrutiny. While still working for DeLay, the documents said, Rudy received payments to a consulting firm he owned from Abramoff and ``Lobbyist B,'' described in the documents as a former DeLay aide who founded his own lobby firm, which Rudy subsequently joined.

That fits the description of former DeLay chief of staff Ed Buckham, founder of the now-defunct Alexander Strategy Group, which employed Rudy until earlier this year.

Laura Miller, a lawyer at Nixon Peabody LLP in Washington who represents Rudy, didn't return a phone call and e-mail seeking comment. Buckham didn't return a call and e-mail seeking comment.

``Although there are still no allegations that DeLay did anything wrong, the sharks are circling and it is becoming clear that he was surrounded by staffers who were deeply involved'' in lobbying, said Julian Zelizer, a Boston University professor who is an expert on political scandal and government ethics.

Nothing Wrong

DeLay's lawyer said his client has done nothing wrong.

``Tom DeLay has said for several months now that he has never taken an official position, never cast a vote, based on anything other than his strong, principled beliefs,'' said Richard Cullen, a partner at McGuireWoods LLP in Richmond, who said he's been told that DeLay is not a target. ``I have no indication that prosecutors are circling in on Mr. DeLay.''

Cullen told reporters on a conference call that he handed over ``maybe 100'' staff e-mails to prosecutors that he thought might aid their investigation. DeLay hasn't talked with investigators personally, he said.

While Rudy worked in DeLay's office, Abramoff arranged for at least $30,000 in payments to a company set up by Rudy, prosecutors said. After one $10,000 payment, Rudy told lawmakers they should vote against limits on Internet gambling, a move that helped a client of Abramoff's. DeLay was one of 44 Republicans who voted against the act, which failed to pass.

Rudy's Wife

In return for Rudy's help, his wife Lisa was paid $50,000 through the firm set up by Rudy, Liberty Consulting LLC, according to court papers. As part of the plea agreement, prosecutors said they don't plan to charge Lisa Rudy or prosecute for any irregularities in the couple's tax returns.

While working for DeLay, Rudy also accepted meals and tickets to sporting events, according to court papers.

The court filing by prosecutors said Rudy worked for ``Representative #2'' between 1995 and 2000, a time that corresponds with his service for DeLay. After leaving the government, Rudy worked with Abramoff in the Washington office of Greenberg Traurig LLP, then went to Alexander Strategy.

While at Greenberg Traurig, Rudy and Abramoff falsely claimed to two clients that ``Representative #2'' asked for $50,000 for a charitable foundation set up by Abramoff, the court papers said. They then used the funds to pay for a golf trip to Scotland for a congressman identified as ``Representative #1.'' Ney's lawyer has said Ney is ``Representative #1.''

St. Andrews Trip

Rudy extended the invitation to Ney and his chief of staff for the $160,000 trip to Scotland's St. Andrews course. The trip would involve ``drinking and smoking Cubans,'' Rudy told Ney's chief of staff in an e-mail, according to the court papers.

The golf trip came on top of other gifts offered by Abramoff and his team, the court papers said. ``In exchange for this stream of things of value, Representative #1 agreed to take favorable official action and render other assistance on behalf of the clients of Abramoff and defendant Rudy,'' prosecutors said in the criminal information agreed to by Rudy.

Ney spokesman Brian Walsh said the congressman ``remains absolutely confident that when the full facts of Abramoff's schemes are revealed, fiction will continue to be separated from fact and it will be made clear that he did absolutely nothing wrong.''

Rudy pleaded guilty to conspiracy to commit wire and mail fraud, as well as to violating lobbying rules by seeking to influence his former colleagues in DeLay's office within a year of leaving the government.

Though the conspiracy charge carries a maximum of five years in prison and a $250,000 fine, prosecutors agreed to seek a jail sentence of 24 to 30 months and $100,000 in restitution.

The case is USA v. Rudy, 06cr82, U.S. District Court for the District of Columbia.

To contact the reporters on this story: Kristin Jensen in Washington kjensen@bloomberg.net; Michael Forsythe in Washington mforsythe@bloomberg.net.

Last Updated: March 31, 2006 16:07 EST