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October 12, 2006 What each side in the Geddings trial wants jurors to focus on Jurors will begin deliberating this morning in the federal fraud trial of former state lottery commissioner Kevin L. Geddings. In closing arguments Wednesday, lawyers pointed jurors to key points they want them to keep in mind: PROSECUTION ARGUMENTS GEDDINGS DID NOT DISCLOSE. After winning a seat on the commission, Geddings repeatedly failed to disclose payments he had received from a lottery company, Scientific Games, that was seeking lottery contracts. Geddings deliberately hid the information from state ethics watchdogs, the lottery's chairman, a senior adviser to Gov. Mike Easley and the news media. GEDDINGS HID TIES. When questions surfaced about possible ties between Geddings and Scientific Games, Geddings sent an e-mail message to his assistant: "Pls never acknowledge by phone that sci games is a client" SCIENTIFIC GAMES HELPED WITH APPOINTMENT. Geddings was in contact with two Scientific Games employees on the dates his appointment was solidified, including his longtime friend and company vice president, Alan Middleton. Middleton called him and gave him a heads up on Sept. 21, 2005, then Meredith Norris, an aide to House Speaker Jim Black and a lobbyist for Scientific Games, e-mailed him. The next day, Geddings was appointed and sent a thank-you message to Norris. GEDDINGS KNEW THE RAMIFICATIONS OF DISCLOSURE. On Oct. 27, 2005, Geddings was told by two Scientific Games executives that the company was set to disclose payments it had made to him in 2005. Geddings argued with them not to do it; he said that he would be finished as a commissioner and that if he had revealed the information, he would have not secured his seat on the lottery board. GEDDINGS WASN'T CREDIBLE. Geddings was caught in what prosecutors called "falsehoods" throughout the trial. Prosecutors showed, for example, how Geddings publicly said he did not want commissioners meeting one-on-one with lottery vendors, but then was talking regularly with Middleton of Scientific Games. GEDDINGS' ARGUMENTS GEDDINGS REMOVED HIMSELF. Geddings recused himself on the commission from decisions involving Scientific Games and spoke openly about his ties to Middleton, which included a past business relationship. Geddings said he did not think he needed to reveal more information about his past work with the company since he had taken himself out of vendor decisions. THERE WAS NO SCHEME. There was no five-year scheme by Geddings to win a spot on the commission to then try to steer business to Scientific Games, which is how the defense portrayed the government's indictment. Lawyer Thomas Manning said the lottery was not "even a twinkle in anybody's eye or anybody's daddy's eye" five years ago. GEDDINGS WASN'T IN THE LOOP. E-mail traffic shows that Geddings was not in concert with Norris and Middleton about obtaining the seat -- at least not until very late in the process. Again, he argued, it's evidence of his appointment being an "accident" made at the last minute and not a devious effort to benefit Scientific Games. SCIENTIFIC GAMES CUT HIM LOOSE. After Geddings won the appointment, Scientific Games immediately took steps to sever any contractual or other business relationship. GEDDINGS FILLED OUT DISCLOSURE FORMS PROPERLY. Geddings tried to follow the instructions as best he could when disclosing his past ties -- and took a literal reading of the verb tense in each question. Since his work for Scientific Games was in the past, Geddings did not disclose it. THE CHARGES Geddings is charged with depriving the public of his "honest services," which prosecutors say includes an obligation to conduct his efforts to secure the lottery appointment "openly and free from fraud and dishonesty." It's the same law that prosecutors have used in headline-grabbing public corruption cases across the country. The six charges relate to the use of mail and wire communications to advance the alleged fraud. Geddings has pleaded not guilty, and three other charges have been dropped or dismissed. The six remaining counts involve: * Geddings' appointment letter and oath of office mailed to him. * A financial disclosure form he mailed to the state ethics board. * A letter from the ethics board mailed to House Speaker Jim Black finding that Geddings had no actual conflict of interest. * A similar letter from the ethics board mailed to Geddings. * The oath of office taken by Geddings and mailed to the governor's office. * An e-mail message he sent to members of the state lottery commission regarding the Oklahoma lottery. THE LEGAL STRATEGY The "honest services" statute was first established as case law, then enacted by Congress in 1988. It is coupled with mail and wire fraud laws. Prosecutors often pursue violations of it 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," said Douglas McNabb, a Houston defense lawyer who has handled such cases. THE PENALTIES Each count has a maximum of 20 years in prison, though prosecutors say Geddings would serve far less time. OTHER CASES Recent cases have involved Washington lobbyist Jack Abramoff, former U.S. Rep. Randy "Duke" Cunningham of California and former governors in Connecticut and Illinois. Former state Rep. Michael Decker pleaded guilty in August to a conspiracy charge of depriving the public of his honest services when he struck a deal -- and took money -- to keep Black in power. Decker is to be sentenced Nov. 1. CHRONOLOGY Mid-2002: Democratic political consultant Kevin L. Geddings begins working with lottery company Scientific Games to promote a North Carolina lottery. March 30, 2005: Scientific Games contracts with Meredith Norris, a lobbyist and Democratic House Speaker Jim Black's unpaid political director. April 6, 2005: The House votes 61-59 to pass a lottery bill. May 26, 2005: Geddings and Alan Middleton, a Scientific Games vice president, help Sen. Tony Rand, prepare for a debate with a lottery opponent. May 31, 2005: Geddings and Middleton agree on a $5,000-a-month consulting contract for Geddings. Aug. 30, 2005: The Senate votes on a lottery. Lt. Gov. Beverly Perdue breaks a 24-24 tie to give final approval. Sept. 6, 2005: Geddings sends an e-mail message to Norris: "I know you are having to beg to get folks to serve on the Lottery Board ... :) However, if you want a foot soldier to serve who will be loyal to the Speaker, keep me in mind." Sept. 21, 2005: Norris and Middleton have dinner with Black at a North Raleigh restaurant. The $241 tab is expensed to Scientific Games. Prosecutors say the decision to name Geddings to the commission was made at that dinner. Black testified otherwise. Sept. 22, 2005: Black announces Geddings' appointment to the commission. Sept. 26, 2005: Geddings sends an e-mail message to his executive assistant: "Pls never acknowledge by phone that sci games is a client ..." Oct. 7, 2005: Geddings files an economic interest statement with the N.C. Board of Ethics that makes no mention of past work for Scientific Games. Oct. 10, 2005: The ethics board tells Geddings to modify his statement to include his friendship and previous business relationship with Middleton. Geddings does so but adds, "I currently have no business relationship with [Middleton], although he remains a friend." Nov. 1, 2005: Geddings resigns from the commission. Less than two hours later, Scientific Games discloses it employed Geddings during the year and paid him at least $24,500. May 18, 2006: Geddings is indicted on nine counts of fraud. Sept. 20, 2006: The trial begins. KEY WITNESSES Gov. Mike Easley, who testified Oct. 3, told jurors that Geddings was an alternate choice, that Jim Black wanted Charlotte lawyer Bob Cordle. House Speaker Jim Black, a witness for Geddings, spent nearly three hours on the stand Oct. 4 answering questions. WHO WILL DECIDE? The question of Kevin L. Geddings' guilt or innocence now rests with 12 jurors. Here's a snapshot of who they are: Juror #1Male, Republican, Wake County resident Juror #2Female, party unknown, Wake County Juror #3Male, Republican, Nash County Juror #4Female, unaffiliated, Wake County Juror #5Female, Republican, Wake County Juror #6Male, Democrat, Wake County Juror #7Male, party unknown, Wake County Juror #8Male, Democrat, Franklin County Juror #9Female, Republican, Johnston County Juror #10Female, Republican, Warren County Juror #11Female, Democrat, Vance County Juror #12Male, Republican, Wilson County Said in jury selection that they were opposed to the lottery: 2 | |