Feds win cold cash case after Stevens fiasco

Published Thursday, August 6, 2009

ALEXANDRIA, Va. - A jury handed U.S. federal prosecutors a victory in finding an ex-congressman guilty of bribery, racketeering and other charges, four months after a corruption conviction against former Alaska Sen. Ted Stevens was tossed aside in an embarrassing blow to the Justice Department.

William Jefferson, a Democrat who represented parts of New Orleans for almost 20 years, was convicted Wednesday on 11 corruption counts including money laundering after a two-month trial in Virginia that included evidence of $90,000 in cash from an FBI sting found stashed in the freezer of Jefferson's home.

Jefferson was stoic as the verdict was read. Asked how he was doing, he said, "I'm holding up." His attorney said he plans an appeal.

Prosecutors pursued an aggressive indictment, charging Jefferson on 16 counts that were far more serious than those levied against Stevens, who was convicted in October of lying on Senate forms about home renovations and gifts he received from wealthy friends.

Five months later, the Justice Department asked an angry judge to drop all charges against the longtime senator, admitting that prosecutors withheld important evidence from the defense.

In Jefferson's case, the government alleged that he took more than $400,000 in bribes and sought millions more in exchange for using his influence to broker business deals in Africa.

Defense lawyers argued that federal bribery laws are narrowly written and were never intended to ensnare the conduct alleged against Jefferson, and some legal experts agreed. The defense said Jefferson was acting as a private business consultant in brokering the deals.

Interestingly, the charge most closely associated with the most famous evidence - the freezer money wrapped in foil and hidden in boxes of frozen pie crust - was one of five counts on which Jefferson was acquitted.

Still, the guilty verdicts represent a clear victory for the Justice Department, who said Jefferson hid the bribes by funneling money disguised as consulting fees through sham companies controlled by his wife and brother.

U.S. Attorney Dana Boente commented afterward that "no person, not even a congressman, is above the law. Ninety-thousand dollars in a freezer is not a gray area. It's a violation."

And U.S. District Judge T.S. Ellis rejected the defense's efforts to get the case tossed out.

The charges Jefferson originally faced could have landed him in jail for 235 years. Prosecutor Mark Lytle said Jefferson could be sentenced on Oct. 30 to more than 20 years in prison under federal sentencing guidelines. The 62-year-old technically faces up to 150 years.

Jefferson rose from the poverty of the Louisiana Delta parishes to prominence as a street-savvy political tactician.

Known for a sharp ability to work the vote, he held his congressional seat for nearly two decades with strong backing of black voters in New Orleans, where neighborhood political organizations were the backbone of politics, especially before Hurricane Katrina in 2005. Even after was accused of taking bribes, those well-cultivated voters still re-elected him in 2006.

Some remain on his side.

The Rev. Aubrey Wallace, a Baptist church assistant pastor in suburban Jefferson Parish, said the verdict doesn't erode his belief in the ex-congressman's innocence or his view that the prosecution was politically motivated.

"We're going to rally around him," he said. "I'll be a supporter until the last breath in my mouth."

Like Stevens, who lost the seat he held for 40 years because of his case, the bribery scandal cost Jefferson his spot.

Louisiana's first African-American congressman since Reconstruction lost in December to Republican attorney Anh "Joseph" Cao, a year after a grand jury indicted him.

"This is a difficult day for the people of New Orleans and Louisiana, but now we can turn the page on a negative past to focus on a positive future. My thoughts and prayers go out to Mr. Jefferson and his family during this time," Cao said Wednesday.

Had Jefferson been acquitted, he might have considered a run for his former congressional seat.

Pollster Silas Lee, who has studied black politics in New Orleans for many years, thinks Jefferson's loss, coupled with the convictions, have ended his political career.

"Once he lost, it automatically moved the city on, a changing of the guard," Lee said.

Jefferson had been under investigation since March 2005, and in August that year, FBI agents searched his Washington home and found the freezer stash. Prosecutors said he had planned to use the money to pay a bribe to the then-vice president of Nigeria to secure a multimillion dollar telecommunications deal there, an accusation Jefferson denied.

The money ended up there after a disgruntled businesswoman, Lori Mody, agreed to wear a wire after telling the FBI she had been cheated out of $3.5 million in deals brokered by Jefferson. The jury saw videotape of Mody handing over a suitcase filled with $100,000 cash outside an Arlington hotel. Most of that money was recovered in the freezer.

Jefferson will remain free on bond until sentencing. Jurors must return to the courthouse Thursday to consider whether Jefferson has to forfeit more than $450,000 in alleged bribe receipts now that he has been convicted.

Daniel Ritter, a Gretna, La., business owner, said he thinks jurors got it right.

"I don't know how he was going to deny $90,000 in his freezer," he said. "You can't explain that. I think there would have been mass hysteria if he was not found guilty."

Community Discussion

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  1. Bob
    8/6/2009, 9:05 a.m.
    Suggest removal

    What? No comments from the left today? If this guy was a Republican there would plenty...

  2. sloughrunner
    8/6/2009, 9:14 a.m.

    (This comment was removed by the Newsminer.com staff. Please see our User Agreement for further information.)

  3. sloughrunner
    8/6/2009, 9:18 a.m.
    Suggest removal

    And you thought they were popular HAHA!!!

  4. whynot
    8/6/2009, 9:30 a.m.
    Suggest removal

    What is there to say, Bob? The guy's a crook. He was caught red-handed. Pretty cut and dry. "Pollster Silas Lee, who has studied black politics in New Orleans for many years, thinks Jefferson's loss, coupled with the convictions, have ended his political career," is the biggest over-statement of the article.

  5. plainview
    8/6/2009, 10:14 a.m.
    Suggest removal

    Now ,that's what you call cold hard cash.

  6. Stakeholder
    8/6/2009, 11:22 a.m.
    Suggest removal

    Who is our new Gov. Sean Parnell?

    "Before serving in the Murkowski administration, Mr. Parnell was Director, State Government Relations, at ConocoPhillips Alaska, Inc."

    ===========================

    Press Releases

    Patton Boggs Hires Former State of Alaska Oil & Gas Official Sean R. Parnell

    June 13, 2005

    http://www.pattonboggs.com/media/detail....

    Patton Boggs LLP is pleased to announce that Sean R. Parnell has joined the firm as a partner in the Anchorage office. Mr. Parnell, who until recently served as Deputy Director of the State of Alaska’s Division of Oil & Gas, will focus his practice in the areas of administrative and regulatory law, with a particular emphasis on resources issues, Drawing on his extensive Legislative and Executive Branch experience, he will also advise clients on the development of large projects and navigating the regulatory environment in Alaska and Washington, D.C.

    “We welcome Sean’s decision to join Patton Boggs. His energy policy expertise and his commercial litigation background coupled with Sean’s years of political and regulatory experience in Alaska will be great assets to the firm. His addition reflects the continued strengthening of our energy practice,” said Anchorage Managing Partner Douglas Serdahely.

    Mr. Parnell joins Patton Boggs after being appointed in 2003 by Governor Murkowski to the position of Deputy Director of the State of Alaska’s Division of Oil & Gas. As Deputy, Parnell was a member of the State of Alaska’s gas pipeline negotiating team where he provided advice and counsel to the governor and senior staff on commercial and policy issues related to commercializing Alaska North Slope gas.

    Before serving in the Murkowski administration, Mr. Parnell was Director, State Government Relations, at ConocoPhillips Alaska, Inc. His state political career included a term as a State Senator from 1996-2000, where he served as Co-Chair of the Senate Finance Committee, as a Member of the Senate Majority Leadership and was a Member of the Resource Committee. Parnell also was a State Representative 1992-1996 where he was a Member of the House Finance Committee. From 1987-2000 Parnell maintained an active commercial litigation law practice.

    -------------------------------

    [PS: Didn't Patton Boggs represent the interests of Exxon in the Exxon Valdez Oil spill litagation?]

  7. wildsteelhead
    8/6/2009, 11:41 a.m.
    Suggest removal

    So, another politician gets caught being corrupt, and this time it is a democrat. Next time, and there will be a next time, it could be either. Some things never change. What else is worth saying?

    During the 2008 campaigns Nancy Pelosi promised us the most ethical congress ever, pointing at those corrupt republicans with people under indictment but serving on committees. Then she appointed Jefferson to homeland security after his indictment.

    What was she thinking?

    http://i400.photobucket.com/albums/pp85/...

  8. wildsteelhead
    8/6/2009, 12:01 p.m.
    Suggest removal

    oops: that promise was made during an earlier campaign

  9. Stakeholder
    8/6/2009, 12:10 p.m.
    Suggest removal

    Sean Parnell

    "Before serving in the [Frank] Murkowski administration, Mr. Parnell was Director, State Government Relations, at ConocoPhillips Alaska, Inc."

    http://www.pattonboggs.com/media/detail....

    And it's all legal folks, go figure!

    Where was the Alaska media before he got elected?

    We don't need no stinking VECO anymore do we?

    .

  10. Pearl
    8/6/2009, 1:07 p.m.
    Suggest removal

    Stakeholder - thanks for sharing the info, and a very good question about the media.
    Advertising pays the media's bills. To what degree do major advertisers actually 'buy' the media's other functions as well? No aspersions on reporters, it's a management question.

  11. Pearl
    8/6/2009, 1:16 p.m.
    Suggest removal

    Greed, corruption, and the betrayal of the public's trust - not a party issue.
    Some members of almost all parties will become 'bent' if offered the opportunity and the right motivator [money, sex, privilege, etc] - from the rightous religious far-right all the way through the 'moderate range', to rightous card-toting far-left. It's the person, not the party.

  12. JETorres
    8/6/2009, 2:07 p.m.
    Suggest removal

    Meanwhile, Congress is spending hundreds of millions on private jets:

    http://politicalticker.blogs.cnn.com/200...

    Isn't the Congress majority now Democrats? hmmmm

    The party of hypocrites....

  13. JETorres
    8/6/2009, 2:19 p.m.
    Suggest removal

    And I noticed the anti-Parnell movement is already kicking in....

    "Stakeholder", That's not news. Politicians and even regular people involved in the oil industry. Pffft!

    That's like talking about Chicago politics and corruption, too obvious.....

  14. EuMesmo
    8/6/2009, 2:37 p.m.
    Suggest removal

    To me, consulting fees by a politician always means a bribe.

  15. jlscott
    8/6/2009, 7:10 p.m.
    Suggest removal

    "I'm holding up."

  16. Tugboat
    8/6/2009, 9:34 p.m.
    Suggest removal

    Obama won't be far behind, when they nab him with his skinny little hand in the cookie jar,..then the conservatives will rule for many years to come so as to fix this mess. Notice I didn't say Republican,..this bunch of yah-hoos are too liberal as well.

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