Showing posts with label las vegas. Show all posts
Showing posts with label las vegas. Show all posts

Wednesday, April 30, 2014

Close call on Jimmy Dimora's appeal, upheld 2-1



Two appeals court judges dismissed Jimmy Dimora as a cliched, corrupt crook today. But a dissenting judge cited Supreme Court decisions about money in politics to suggest Dimora should get a new trial.

Dimora, who charmed countless Democrats during his backslapping reign over Cleveland politics, left Judge Jeffrey Sutton less impressed.

The judge upheld Dimora's conviction while weaving in pithy summaries of Dimora's Vegas romp, hooker dalliances, backyard resort and cheesy affairs.

"Hotel rooms, a public official, sexual favors, help finding a government job: If there is anything to criticize here, it is not that the evidence fails to support the jury’s verdict; it is that the saga is so cliché," Sutton writes.

The big debate in Dimora's appeal is, Dimora wanted to introduce his state ethics disclosure forms as evidence. The trial judge said no. Was that an error that harmed his defense?

Sutton says no -- it was a harmless error.

"The government produced overwhelming evidence against Dimora," he says -- recorded phone calls, testimony from bribers and co-conspirators such as Frank Russo, and evidence about Dimora covering his tracks. "This case had it all," Sutton marvels. The ethics forms didn't prove that the listed gift-givers weren't bribing Dimora, he argues. Besides, Dimora didn't list all his "gifts," which shows he was trying to hide many things.

Judge Gilbert Merritt disagrees.  His peevish dissent seems as critical of the Supreme Court as it is of Dimora's trial judge.

"The influence of money in politics is growing by leaps and bounds, and the subjective intent of the public official receiving the money is perhaps the last and only distinguishing feature between criminal 'quid pro quo bribery' and permissible 'ingratiation,'" Merritt writes.

He cites two big Supreme Court cases about money in politics. The 1976 Buckley decision says buying votes attacks the foundation of democracy, but this year's McCutcheon decision says exchanging money for "ingratiation and access is not corruption," he notes.

The only way to navigate those two decisions, he says, is to look at the public official's intent, including his disclosures.

"The prosecutor promised the jury that she would show a culture of secrecy and nondisclosure shielding Dimora’s corruption," Merritt notes. The judge "said in open court before the jury that 'it’s very important to the government’s case to be able to indicate there wasn’t any disclosure' of Dimora’s political patronage."

This might not be the end of Dimora's legal battle. His lawyers can ask the entire federal appeals court, not just a three-judge panel, to review the case.

Merritt's dissent may be overly clever. Criminal law and campaign finance law aren't the same thing. Still, he has a point. Even as criminal law makes it easier and easier to prove that a gift became a bribe, the Supreme Court is allowing cozy financial relationships between donors and officials to escalate.

To read the full opinion, click here.

Sunday, April 25, 2010

The Vegas trip, the prostitute, and the $38 million contract


Plenty of good stuff in the feds’ latest charge (pdf) against a Jimmy Dimora crony. First, 21 months after the FBI hauled it out of his house, we finally learn the significance of Dimora’s refrigerator:

Shortly before November 29, 2006, Dimora asked Kleem to purchase a refrigerator valued at approximately $1,150 and to have it delivered to the Dimora residence. … Kleem, through one of his companies, purchased the refrigerator and arranged for Blaze employees to deliver it.

(The blue quotes are from the prosecutors’ filing, with “Dimora” substituted for “PO1,” because we all know the feds’ code name for the un-charged Dimora by now. Kleem is contractor Ferris Kleem, charged with bribery conspiracy in federal court on Thursday. Around the same time as the fridge delivery, Dimora allegedly called a county employee and tried to get a grant to the city of Berea expedited at Kleem’s request.)

Next, our story takes the pulp-novel turn we all anticipated and feared. Keep reading if you dare.

On or about April 8, 2008, and during the Las Vegas trip, Dimora asked Kleem to hire a prostitute for Dimora. In response, Kleem paid a prostitute approximately $1,000 in cash and escorted the prostitute to Dimora’s suite at the Mirage for the purposes of providing services to Dimora. …

Dimora called back and asked, “I just said, she gives me a massage. Is that how we’re going to start her out?” …

At approximately 12:44 a.m., Dimora called Kleem and thanked him. Kleem asked Dimora, “Was that the best or what?” Dimora said, “Yeah, she’s good but a little chatty.” Dimora thanked Kleem, who said, “No problem, buddy.”

Dimora and Kleem then agreed to meet at 1:00 a.m. at the Chinese restaurant in the Mirage.

This is where Dimora’s defense gets really good. "If it was anything at all, it was exactly what he said it was it was: a massage, and that's not illegal," Dimora’s lawyer, Richard Lillie, told the Plain Dealer.

A $1,000 massage! Could this be what Dimora meant by, “I’m no angel, but I’m no crook”?

{Update, 5/1: Dimora tells Duane Pohlman he got a massage, not sex, and paid the woman himself. See this new post.}

Despite the ick factor, Dimora’s alleged Mirage encounter is (of course) the runaway hit from the Kleem charge, attracting airplay from PD cartoonist Jeff Darcy and less reputable news sources alike.

But sex can distract us from other, homelier sins. Let’s step back a page in the Kleem charges to see what’s happening in Cleveland while Kleem and Dimora are partying on the Strip: Kleem’s $38 million bid for a contract at the new juvenile justice center gets beaten out. As the feds tell it, when the bad news reaches the VIPs at the Mirage, Dimora hits the phones, looking for ways to disqualify the bidder who beat Kleem’s Blaze Building, putting in his last call in about 10 hours before the prostitute arrives.

If Dimora did try to nudge the contract to Blaze, it didn’t work: Blaze competitor Panzica, the low bidder, got the job. So when Dimora’s lawyer tells the PD, "Kleem received absolutely nothing from Mr. Dimora," that could well be true.

But Lillie’s job just got tougher. Looks like this is the story prosecutors want to tell a jury: Dimora tried to steer a $38 million contract to his friend the same day the guy bought him a hooker in Vegas.

(You can read the prosecutors' press release here and their charging document here.)

Friday, June 12, 2009

What do corruption charges add up to?

What do today's charges against J. Kevin Kelley mean for those higher up?

If "Public Official 1" and "Public Official 2" in the prosecutor's filing are Jimmy Dimora and Frank Russo, then the feds are likely eyeing at least three possible charges against the county commissioner and four against the county auditor.

The prosecutor's filing suggests that Public Officials 1 and 2 went to Las Vegas in April 2008 and had parts of their trip paid for by officials with the halfway house Alternatives Agency and the contractors Blaze Building and Phoenix Cement -- businesses with county contracts that had recently been approved by the county commissioners or were pending before them. The feds allege that Officials 1 and 2 used their influence to benefit the companies, or tried to.

Official 1 allegedly got to use a condo in the Stonebridge development and use a limo 22 times in connection with the Stonebridge owner's purported efforts to hold onto the county engineer's office as a tenant.

Official 2 allegedly gave J. Kevin Kelley a raise and reduced hours to reward him for not running for mayor of Parma. Also, it's alleged that Official 2 got cash in exchange for helping a company acquire a subcontract on the county's geospatial information systems project.

I've added comment from Alternatives Agency and a lawyer for K&D to previous posts here and here. I've put calls in to lawyers for Dimora, Russo, Kelley, and Blaze and Phoenix. If I hear from any of them, I'll post about it.

The trip to Vegas

The prosecutors believe that a county commissioner and another elected official received a trip to Las Vegas in exchange for getting a contract for Alternatives Agency.

Here's another excerpt from the charging document. The section 1951 mentioned at the end is the Hobbs Act, the federal bribery and extortion statute.
--
KELLEY used the additional funds he received from Business 1 to purchase first class airfare aboard Continental Airlines for P02, P02's travel companion, and PO 1, at a cost of $1,268.50 per ticket. PO1 and P02 each gave KELLEY a check to cover the cost of the airline ticket to make it appear as if PO1 and P02 each paid for his own ticket. P02's check did not include payment for his travel companion's ticket. Upon receiving the checks from P02 and PO 1, KELLEY gave them back cash in the approximate amount of the check each had given to KELLEY. Business 1, through increasing KELLEY's monthly consulting fee, intended to pay for P02's and PO 1's hotel rooms in Las Vegas. Despite KELLEY receiving an increase in payment from Business 1 for this purpose, the hotel rooms were paid through another means.
34.
On or about April 6, 2008, KELLEY telephoned SCHUMAN and said, "Hey, we're heading out now [on the Las Vegas trip]. The guys [PO1 and P02] wanted me to call and thank you." SCHUMAN replied, "Oh, I hope everybody has a good time."
35.
On or about April 6,2008, KELLEY, POI, P02, and P02's travel companion boarded a Continental Airlines flight from Cleveland to Las Vegas.
36.
On or about April 9, 2008, SCHUMAN asked KELLEY if he was back in town. KELLEY confirmed he flew from Las Vegas on "the red eye" the previous night. SCHUMAN then said, "Come on down to the Agency tomorrow. I got the rest of your money." KELLEY replied, "Oh beautiful. I appreciate it sir."
37.
On or about April 14, 2008, KELLEY and SCHUMAN discussed the Las Vegas trip. SCHUMAN then confirmed that KELLEY had picked up his check from Business I and inquired, "We're all square right?" KELLEY explained that one month remained at the increased rate before returning to the regular rate.

On or about April 17, 2008, the County Commissioners approved a $250,000 contract with Business 1 for residential facilities for the work release program, PO 1 having performed official acts to secure this contract for Business 1.

All in violation of Title 18, United States Code, Section 1951.