Money scandal to make a Newt out of Gingrich?

The man who once was the most powerful lobbyist on Capitol Hill – interacting with then-House Speaker Newt Gingrich, R-Ga., among others at the top levels of government – says the influential former congressman and current candidate for the GOP nomination for president is "in a mess."

The comment came today from Jack Abramoff, whose "Capitol Punishment: The Hard Truth About Washington Corruption From America’s Most Notorious Lobbyist" talks about the very type of scandal that arose today for Gingrich.

WND reported that Gingrich was caught up in the public outrage over the millions of dollars paid top executives in the government-sponsored mortgage giants Fannie Mae and Freddie Mac. Gingrich reportedly was paid between $1.6 million and $1.8 million in consulting fees from two contracts with Freddie Mac over the past eight years.

Get "Capitol Punishment (Autographed)" and read the story about the ultimate Washington player.

TRENDING: They got away with cheating in November – now what?

During the CNBC-sponsored debate for GOP candidates last week, Gingrich admitted to receiving some $300,000.

Bloomberg reported that the fees went to The Gingrich Group, his consulting firm, not directly to the former congressman.

His first contract with Freddie Mac began in 1999, five months after he resigned from Congress. Bloomberg further reported Gingrich was paid a self-renewing, monthly retainer of $25,000 to $30,000 between May 1999 and 2002.

Abramoff fell from Washington's grace when, by his own admission, he stepped over the line in his efforts to influence members of Congress.

Newt Gingrich

After years of congressmen lining up to do his bidding, executives heeding his every word and heads of government giving him attention, he ended up in prison and his name became synonymous with government corruption.

But he took the fall as a wake-up call, and he now admits he did wrong. He lost sight of the "line," and he had plenty of time to reflect during his 43-month prison sentence. He has paid the price, and now he is ready and willing to discuss details – as well as his unique insight into the systemic reforms needed to prevent others from falling into "disgrace."

Now a free man, "Capitol Punishment: The Hard Truth about Washington Corruption from America's Most Notorious Lobbyist," is Abramoff's autobiographical exposé unveiling the mysterious and corrupt world of federal politics.

In his book, Abramoff "outs" senators and members of Congress and sets out the details of insider deals previously unknown to most.

But he also sets forth a Capitol Hill reform plan that would rock the fraternal inside-the-Beltway culture.

He said Gingrich's present circumstances "seem to mean that Newt cashed in on his government service and provided services that were lucrative in a way that may or may not be appropriate."

He said his earlier encounters with Gingrich are, in fact, detailed in his book.

"This [type of circumstance] is exactly what I'm talking about in my book," he said.

"It's disingenuous for Gingrich to say they hired him as a historian. Historians probably aren't that expensive," Abramoff told WND.

As a result, Gingrich has erected a "high hurdle" to overcome as he pursues the GOP nomination for president, he said.

"He's landed himself right in the Washington mess," Abramoff said.

"Quite frankly, my running for president would be of equal difficulty."

Abramoff said he saw the "seeds of arrogance" that appear in evidence under these circumstances when he saw Gingrich in Congress.

Politico also reported that Abramoff was equally emphatic during an interview with David Gregory for a "PRESS Pass" webshow.

There, Abramoff said of Gingrich: "This is exactly what I'm talking about. People who come to Washington who have public service and they cash in on it. And they use their public service and their access to make money, and unfortunately Newt Gingrich is one of them…"

He said it is a "very big thing" because "he is doing, and engaging in the exact kind of corruption that America disdains. The very things that anger the tea party movement and the Occupy Wall Street movement and everybody who is not in a movement and watches Washington and says why are these guys getting all this money, why do they all become so rich, why do they have these advantages? "

Former Freddie Mac officials told Bloomberg Gingrich was asked "to build bridges to Capitol Hill Republicans and develop an argument on behalf of the company's public-private structure that would resonate with conservatives seeking to dismantle it."

Freddie Mac spokesman Doug Duvall confirmed Gingrich was a consultant, not a lobbyist, but declined to elaborate on the nature of Gingrich's work.

The issue of high executive pay has been a focal point of congressional investigators recently. Among their targets are the seven-figure compensation totals to government workers running Freddie Mac and Fannie Mae.

In 2006, the Federal Housing Enterprise Oversight office reported Democratic Party operatives James Johnson and Franklin Raines earned millions – Johnson earning roughly $100 million as Fannie Mae CEO from 1991-1998 and Raines earning more than $90 million as Fannie Mae CEO from 1999-2005 – after manipulating accounting to bolster their pay.

Yesterday, three top housing agency officials, Edwardo J. DeMarco, acting director of the Federal Housing Finance Agency; Michael J. Williams, president and CEO of Fannie Mae; and Charles E. "Ed" Haldeman, Jr., president and CEO of Freddie Mac; admitted under tough questioning from Republican and Democratic members alike of the House Committee on Oversight and Government Reform that the nearly $170 billion in federal government bailouts that Freddie and Fannie have received since 2008 may never be repaid taxpayers.

See the exchange:

Rep. Darrell Issa, R-Calif., chairman of the House Oversight and Government Reform Committee, also has posted a video on YouTube that displayed clips highlighting Obama's repeated rhetoric attacking private bankers and Wall Street executives for excessive compensation, while during the same years, 2009-2010, Fannie and Freddie paid $35 million in executive bonuses:

"While taxpayers are saddled with billions in losses, executives at Fannie Mae and Freddie Mac are being rewarded with millions for their efforts to pursue public policy goals of this administration," Issa said, releasing a 13-page committee staff report on the issue.

"This report examines and explains fundamental criticisms of executive compensation decisions for Fannie Mae and Freddie Mac – decisions made under an administration that excoriates private companies for big bonuses on the backs of taxpayers but looks the other way when our own federal entities heap cash on their executives for a job undone."