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Sep. 21, 2006 By J. Andrew Curliss and Dan Kane, Staff Writers Geddings pleads not guilty Long-awaited trial of former lottery commissioner may feature testimony of top state leaders as well as former S.C. governor Former lottery commissioner Kevin L. Geddings pleaded not guilty to mail and wire fraud charges Wednesday as a federal trial opened in Raleigh that could include testimony from Gov. Mike Easley, House Speaker Jim Black and former South Carolina Gov. Jim Hodges. As the trial began, the government dropped one of nine charges it had brought against Geddings, 41, of St. Augustine, Fla. Prosecutors allege in eight remaining counts of mail and wire fraud that Geddings developed a scheme to deprive the state of his "honest services" by hiding financial ties to lottery company Scientific Games when he took a seat last year on the newly formed state lottery commission. Opening statements are set for today. In choosing a jury of six men and six women, lawyers offered glimpses of what is expected to be a three-week trial that features big names as possible witnesses and a look behind the scenes at the political maneuvering around the start of the lottery. Judge James C. Dever III repeatedly reminded potential jurors that the case was not a referendum on the lottery -- "however you might feel about that." A handful told the judge they were opposed to the lottery on religious grounds but said it would not affect their decision making. Two of them were selected to serve. A majority of the jury pool indicated they had played the lottery since it began in March. The judge also ruled that witnesses can't stay in the courtroom to hear others' testimony, which prohibits Geddings' wife and business partner, Kristine, from remaining with him for the trial. Geddings is charged with violating the same law that prosecutors have used in headline-grabbing public corruption cases across the country. It's a little-known but increasingly used part of federal fraud laws -- in this case, that Geddings, as a government official, owed "a duty of honest services to the State of North Carolina and its citizens." The "honest services" statute was first established as case law, then later enacted by Congress in 1988. It is coupled with mail and wire fraud laws. Its use has given defense attorneys fits, including those working for Geddings. Geddings' attorney, Thomas C. Manning, argued in court documents that the case and the law are "so vague, so speculative, that, if the government had alleged that [Geddings] engaged in crystal ball or tea leaf reading or even time travel, it would not seem out of place." Douglas McNabb, a Houston defense lawyer who has handled cases involving the law, said prosecutors are pursuing violations of the "honest services" law instead of trying to establish a more defined instance of corruption. "This is easier to prove -- so much easier than public corruption, which gets into whether someone received a benefit in exchange for an action," McNabb said. "Prosecutors are using it fairly frequently now because it's so broadly written." Each count has a maximum penalty of 20 years in prison, though prosecutors say any conviction of Geddings would lead to far less time. Recent cases that included elements of the law involved Washington lobbyist Jack Abramoff; U.S. Rep. Randy "Duke" Cunningham of California and former governors in Connecticut and Illinois. Former state Rep. Michael Decker pleaded guilty last month to a conspiracy charge of depriving the public of his honest services when he struck a deal -- and took money in exchange for it -- to keep Black in power. Decker is to be sentenced Nov. 1. Easley was one of several North Carolina political figures, most of them Democrats, named Wednesday by either prosecutors or Geddings' defense team as potential witnesses. Easley's name was a surprise given that the governor a day earlier had told reporters he had not been subpoenaed to appear at the trial. Sherri Johnson, a spokeswoman for Easley, said Wednesday that the governor had not been subpoenaed but would testify if called. Johnson declined to say whether the governor had been asked to testify. One of Easley's top aides, Dan Gerlach, is also listed as a potential witness. Jay Reiff, an associate of Geddings and Easley's former campaign manager, also could be called. Other possible witnesses include Black, who appointed Geddings to the lottery commission; lobbyist Meredith Norris, a former aide to Black; and state Sens. Harry Brown and John Garwood, who were absent when the lottery narrowly passed that chamber. A handful of South Carolina officials also were named as potential witnesses. Before coming to North Carolina, Geddings was chief of staff to Hodges, who was then governor. Geddings left Hodges' staff to lead a successful push to bring a lottery to South Carolina. Among those named as potential witnesses were Hodges and the director of the South Carolina lottery. | |