AUSTIN BUREAU

Nov. 10, 2010, 3:52PM

http://www.chron.com/disp/story.mpl/metropolitan/7288529.html

2005 statements seem to indicate former House leader knew of plans for alleged money swap

AUSTIN – Statements that former U.S. Rep. Tom DeLay, R-Sugar Land, made to prosecutors in August 2005 indicate he knew of an alleged political money laundering swap before it occurred.

DeLay now disputes having prior knowledge and says he was told of the exchange of $190,000 between Texans for a Republican Majority and the Republican National Committee after it happened.

In a transcript of an interview with prosecutors, DeLay talks in future tense when he relates a meeting he had with political aide Jim Ellis about the money.

"He (Ellis) brought it up on his own initiative to tell me that's what they were going to do," DeLay said in a tape-recorded interview played for jurors at his money laundering trial.

Prosecutor Rick Reed: "Do you recall anything specific about that?"

DeLay: "No, the fact that he was going to take $190,000 and take it to the RNC and exchange it for hard money."

DeLay said he asked Ellis if the exchange was legal and that Ellis told him it was.

Later in the interview, DeLay also talked in the future tense about Ellis telling him of the plan to exchange corporate money raised by TRMPAC for individual donor money from the RNC.

DeLay said, "Best I know, remember, is that it was $190,000 from TRMPAC and he (Ellis) was going to get an X amount of money out of the RNC to give to state candidates, hard dollars."

Ellis met with RNC officials on Sept. 13, 2002, to make the money exchange. DeLay now says Ellis told him about it on Oct. 2, 2002.

DeLay is accused of conspiracy and money laundering in an alleged scheme to exchange $190,000 in corporate money that cannot legally be used in candidate races in Texas for $190,000 in donations from the RNC out of an account of money raised from individuals.