Jun 2, 2009 11:31 pm US/Eastern
Former House Speaker Sal DiMasi Indicted
BOSTON (WBZ) ―
-
-
Former Massachusetts House Speaker Sal DiMasi and three associates were indicted by a federal grand jury in Boston on Tuesday.
WBZ
-
-
Richard Vitale in Suffolk Superior Court Jan. 12
WBZ
Former Massachusetts House Speaker Sal DiMasi and three associates were indicted by a federal grand jury in Boston on Tuesday.
Officials accuse DiMasi, Joseph Lally, a sales agent for the computer software company Cognos LLC, Richard McDonogh, a lobbyist for Cognos, and Richard Vitale, a close associate and advisor to DiMasi, of engaging in a wire and mail fraud scheme to award a $15 million state contract to a software company.
All four are charged with conspiracy, mail fraud and wire fraud. Lally is also charged with money laundering.
Read: Charges against DiMasi
Officials allege that Vitale was hired by Cognos because of his close association with DiMasi, and promised large payments if deals with the Commonwealth were closed.
"These charges relate to two legislative events, both of which were supposed to benefit the company Cognos," said acting US Attorney Michael Loucks. "One was an appropriation in 2006 or $5.2 million to the Department of Education, which included the requirement that the department spend no less than $4.5 million on software."
The second was a provision that allotted $15 million for software purchasing.
The indictment alleges that the company paid Lally $2.8 million, and he in turn paid McDonough $200,000 and Vitale $500,000 when the contract was awarded. According to officials, the payments were not reported to regulators.
The indictment also said DiMasi received proceeds from $5,000 monthly payments Cognos made to a fellow attorney. "Then began in March 2005, a regular flow of money from Cognos, to the attorney, to DiMasi," explained Loucks. "Cognos carried the attorney on its books as a lobbyist, even though the attorney never performed any lobbying or legal services for Cognos."
Despite the charges, DiMasi maintains his innocence. "Every decision I have ever made, either as the speaker or a representative was always made in the best interest of my constituents and the people of the Commonwealth of Massachusetts."
Vitale also issued a statement regarding the charges against him through his attorney Martin Weinberg. "Dick Vitale is not a criminal. He is an ethical and principled businessperson. I am confident he will be acquitted of these charges."
The allegations against DiMasi have prompted Gov. Deval Patrick to again declare that the public needs confidence restored. "It alleged a very serious breach of the public trust and I think it means we have even more to do to rebuild that trust."
DiMasi resigned from one of the most powerful positions in state government in January amid allegations that close friends used their relationship with him to push legislation and gain favor in awarding state contracts.
If found guilty of all the charges against him, DiMasi could face up to 25 years behind bars and $2.5 million in fines.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
Click to enlarge
Click to enlarge
Stumble It!
Comments