Home > Blog > Archives > 2006 > March > 03
Friday, March 3, 2006
Campaign treasurer: I never knowingly violated law
The Atlanta Journal-Constitution
Steven Labovitz, Bill Campbell’s longtime friend, said he never knowingly violated any campaign laws while working as campaign treasurer in the 1997 mayoral election.
He laid discrepancies and illegal campaign contributions at the feet of deceased Campbell friend Rickey Rowe. Asked by defense attorney Billy Martin if he ever authorized any illegal contributions, Labovitz responded. “Absolutely not. My integrity is incredibly important to me. I would never do anything like that.�
Labovitz said he “loved� Campbell but would not lie for him.
Labovitz’s testimony was in response to previous government testimony from businessman Ronnie Thornton who said he gave the campaign $126,000 in illegal campaign contributions in 1997 after being told by the mayor he needed to give at least $100,000 in donations or he would not be able to get a huge construction contract at the airport.
The campaign was in a run-off in 1997 with Marvin Arrington, then city council president, and was scrambling to get money. After quickly getting the money orders, Thornton testified he told the mayor he had to provide a list of straw donors.
On Friday, Labovitz, Campbell’s former law partner and first chief of staff, testified that Rowe came to him with numerous money orders, which Labovitz found unusual.
“I looked at Mr. Rowe and asked if these all are valid, he said they were,� recalled Labovitz.
Many of the money orders had no addresses or occupations to go along with the names. Labovitz said he asked Rowe to provide these, which he did. Labovitz said he then took the information provided by Rowe and wrote it down, deposited the checks and then disclosed them as required by law.
He said he never recalled meeting Thornton and “I never talked to Ronnie Thornton about these campaign contributions.�
Asked if he reconciled the names, addresses and business professions of campaign contributors for disclosure purposes, as required by law, Labovitz answered he did not.
He said he expected accountant Norman Ross, the brother of campaign manager Kevin Ross “to fill it out completely and make sure we were in compliance with all aspects of the law.�
“I was very proud with the kind of bookkeeping job we did,� Labovitz testified.
Labovitz said he worked full time with Campbell’s 1993 campaign even though he was a “novice� in politics. He said he was “pretty meticulous� in documenting every campaign donation and expenditure.
However, by the 1997 re-election campaign, Labovitz had gone back into private practice and did not have the same amount of time to devote to the campaign, even though he was the treasurer. “I was rarely in the campaign headquarters,� he said.
Labovitz said he was “very conservative� with the campaign money. He said they raised $3 million in 1993 and nearly $4 million in 1997.
He said that Campbell did not have a close knowledge of the contributions coming in or the campaign’s expenses.
Labovitz also testified about raising money after Campbell was re-elected in 1997 to pay off debts and to have a fund that allowed the mayor to have “money in the furtherance off (his) office.�
Prosecutors have alleged that this was a slush fund where Campbell used campaign contributions for personal use. Labovitz said Campbell sometimes used the money for political purposes, such as tickets for the Super Bowl or making contributions to other campaigns and charities.
“That makes him a more effective politician,� Labovitz said.
Labovitz said that paying for cell phone bills for Campbell family members was a legitimate expense. He said that he went over the allowable expenditures of that fund with Troutman Sanders, a prominent law firm.
Labovitz also name-dropped in his testimony, saying former mayor Maynard Jackson was a supporter and developer Mack Taylor was an early fund-raiser.
Permalink | | Categories: Bill Campbell trial
Former city attorney struggles on witness stand
The Atlanta Journal-Constitution
Former Atlanta City Attorney Susan Langford returned to the stand Friday morning in the federal corruption trial of former Atlanta mayor Bill Campbell, and her memory continued to fail her.
She answered “I don’t recallâ€? more than 50 times during about 45 minutes of contentious cross-examination by Assistant U. S. Attorney Sally Yates about her handling of the city’s legal matters.
Langford was asked about her involvement in giving and revoking liquor licenses to Atlanta strip club owner Michael Childs, who the prosecution alleges paid Campbell about $50,000 in bribes to get licenses.
Langford, who remained calm on the stand as Yates peppered her with questions, said she didn’t recall whether she overruled the license board’s decision to revoke the license for Club Nikki’s, owned by Childs, because of a series of shootings, fights and other ordinance violations at the club.
At that point, Yates showed Langford a document detailing the hearing in which, claimed Yates, Langford ignored the wishes of the board and issued a renewal of Nikki’s license anyway.
“Does that refresh your recollection of what happened?� asked Yates.
“It really does not,� said Langford. “I just do not recall.�
Langford also testified that she did not know that Michael Coleman was Campbell’s personal attorney. Then Yates showed her documents, which Langford had seen while she was city attorney, indicating that Coleman represented Campbell.
Langford said: “Perhaps I misspoke.�
Prosecutors have tried to show that Campbell took bribes from Childs and, in exchange, promised to give the club owner liquor licenses, but bowed to political pressure and reneged on his deal. They claim Langford was a close ally of Campbell’s and did his bidding, although City Council members frequently questioned her actions and judgment as city attorney.
On direct examination Thursday, Langford said she reported rumors that Childs had bribed Campbell to Fulton County District Attorney Paul Howard.
Yates asked her about the timing of her report to Howard. Didn’t she wait until after Campbell revoked Child’s liquor license before she reported the alleged bribe to the district attorney?
“Yes,” said Langford.
“Do you recall Mr. Howard saying it would have been an entirely different matter if Mr. Campbell had not revoked the liquor license?� asked Yates.
“I don’t recall,” the former city attorney said.
Permalink | | Categories: Bill Campbell trial
Campbell’s campaign money man to testify today
The Atlanta Journal-Constitution
Key figures in former Atlanta Mayor Bill Campbell’s political life are expected to testify as defense witnesses today as the federal corruption trial closes its sixth week.
Former campaign treasurer and City Hall chief of staff Steve Labovitz and Campbell’s personal attorney, Michael Coleman, are slated to testify.
The prosecution contends Labovitz, who has not been charged with any criminal offense, processed thousands of dollars in phony campaign contributions for Campbell’s 1997 re-election campaign and created a slush fund for Campbell’s personal use.
Part of the federal indictment against Campbell claims he knowingly accepted illegal campaign contributions while he was mayor, but he consistently has denied any knowledge of illegal contributions.
Previously, Kevin Ross, an attorney who chaired Campbell’s political campaigns, testified for the prosecution about Campbell’s inner circle and the key players, including Labovitz, involved in raising more than $3 million for the mayor’s successful re-election bid.
Ross said there were several questionable donations totaling more than $100,000. The donations, in the form of cashier’s checks and money orders, used various donors’ names but all appeared to be in the handwriting of Labovitz, Ross said.
There were also five cashier’s checks totaling $5,000 with the names of five of Campbell’s family members, Ross said. Defense attorneys have agreed that the mayor’s family members’ names were used but they weren’t the true contributors.
The mayor’s personal attorney, Coleman, hasn’t said much publicly since the trial began but has put up a website recapping testimony on most days. He has maintained from the start of the federal investigation that Campbell “was not aware of, didn’t participate in, didn’t condone any illegal activity.”
The website carried this recap of Thursday’s testimony from defense witness Eunice Lockhart-Moss, Campbell’s appointment secretary when he was mayor:
“The Campbell defense team enjoyed another strong day on Wednesday in mounting its defense against the government charges, and further eroded the government’s case.”
Prosecutors this morning were finishing their cross examination of former City Attorney Susan Langford.
Campbell is charged with racketeering, taking bribes, and tax evasion.
Permalink | | Categories: Bill Campbell trial
Former city attorney’s testimony to resume
The Atlanta Journal-Constitution
Former City Attorney Susan Langford will be back on the witness stand today as the federal corruption trial of former Atlanta Mayor Bill Campbell closes out its sixth week.
On Thursday, Langford was being vigorously cross-examined by Assistant U.S. Attorney Sally Yates when U.S. District Judge Richard Story stopped trial because testimony was running late, past 5 p.m.
The last thing Yates said to Langford was: “Well, Ms. Langford, that’s really not accurate, is it?â€?
Langford responded: “I think it is.�
Then Yates asked her to read a document in question.
Langford testified about the access city contractors had to Campbell while in City Hall. Yates questioned Langford about what the government alleges were Langford’s attempt to thwart the federal investigation of alleged corruption in the Campbell administration.
Campbell is charged with racketeering, taking bribes, and tax evasion. Story said Thursday that the trial is on track to end testimony by the middle of next week.
Permalink | | Categories: Bill Campbell trial
