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Friday, March 10, 2006

CAMPBELL GUILTY ON TAX CHARGES

Former Atlanta Mayor Bill Campbell was convicted today on three counts of tax evasion but was found not guilty of the more serious charges of federal corruption.

A jury of seven blacks and five whites deliberated two days before voting to convict Campbell on charges that he had $147,000 of unreported income in 1997, 1998 and 1999.

“Obviously it’s a difficult day for me and my family,” Campbell said outside the courthouse with his wife, Sharon, at his side. He was surrounded by family and supporters.. ” I was proven innocent of the substantial charges. We’ll deal with the tax charges.”

The former mayor called it “a fair trial. The jury gave me the opportunity to present my case. The judge was fair. Obviously, I have great regret the jury found me guilty of anything.”

He added, “It was a fairly quick decision to reject all the RICO charges.”

Campbell said that if he could do anything differently, he would “ have an accountant who paid more attention to filing my taxes,” Campbell said. “It is difficult as mayor, as a husband and as a father to do all of that. I was a sloppy record keeper.”

Prosecutors had pushed for guilty verdicts on racketeering, bribery and tax evasion, claiming that Campbell ran City Hall as a criminal enterprise. The government’s case, built from a six-year investigation, was largely circumstantial and produced 1,200 exhibits and more than 70 witnesses.

Asked if he was disappointed that Campbell was only convicted on the three tax counts, U. S. Attorney David Nahmias said, “He’s a convicted felon; he’s going to jail.”

U.S. District Judge Richard Story could sentence Campbell to prison, fine the former mayor or give him probation. The judge said a sentencing date will be set after a pre-sentencing report is conducted. That report will include a range of information on Campbell. The report often takes three months to compile.

During the sentencing hearing the defendant will likely call character witnesses to speak in his behalf.

Michael Langford, who worked in City Hall when Campbell was in office and is a diehard Campbell loyalist, said, “I feel very good about the verdict. The charge we were most concerned about was the corrupt payments. The jury confirmed the early lie detector test the mayor took showed that he was innocent of taking any payments.”

In trying to build its corruption case, prosecutors produced just three witnesses who put money in Campbell’s hands. Personal assistant Dewey Clark and Dan DeBardelaben, a longtime friend and golfing buddy, said they passed cash bribes directly to Campbell. Joseph Reid, former deputy chief operating officer, said he raised illegal donations and gave them, some in cash, to the former mayor.

Prosecutors continully hammered away at Campbell’s voracious cash-spending habits that continually grew during his tenure as mayor. But his cash withdrawls shrank each year as prosecutors said he was increasingly on the take. He withdrew just $69 from his checking account in all of 1999 even though he took many trips with family and female acquaintances both inside and outside the country, prosecutors said.

Prosecutors said Campbell used city contractors as “human ATMs,” dispensing thousands of dollars of cash for him to spend gambling, travel and chasing women.

The prosecution’s final witness was an IRS agent, who detailed Campbell proliferate use of cash.

“Even if every single government witness is lying, Bill Campbell is still guilty of tax fraud, and they can’t wiggle out of that,” assistant U.S. attorney Sally Yates said.

Campbell’s attorneys argued others in his administration — including friends and close confidants, were corrupt and had taken advantage of him.

Defense attorneys frequently argued that prosecutors “bought” testimony by giving immunity to witnesses like Greene and Clark, who had their own legal problems.

The defense derided the government’s six-year investigation.

“When’s the last time the IRS went through your grocery bill and gas bill?” Martin asked. “An army of people with unlimited resources and that’s the best they could do?”

“What the government did in this case was outrageous,” he said. “They’ve examined every piece of paper in the life of Bill Campbell.”

Consumer advocate and radio talk show host Clark Howard said he was “thrilled” with the verdict.

“Obviously, its a compromise verdict. But the jury said there was not just smoke, there was fire. I just hope he ends up where he belongs — prison. I said years ago on my show that the only thing missing from his shirt was a prison number. Now, hopefully, he’ll get it.”

“The reason I was so vehement with this guy is because he is a human tragedy. He had such great capability and he threw it away in the search for power, for arrogance and the desire for money. He harmed our city and harmed himself. He was a very charming bright man who blew it.”

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Jury reaches verdict in Campbell trial

The jury in the federal corruption trial of former Atlanta Mayor Bill Campbell has reached a verdict.

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Deputy to jurors: Lights switch off at 7 p.m.

Jurors now deliberating in the federal corruption trial of former Atlanta Mayor Bill Campbell had the option of going home at 5 p.m. today and returning Monday, but they have opted to stay and continue their discussions.

Rick Goss, the courtroom deputy for U.S. District Judge Richard Story, told the 12 jurors that it’s up to them to continue deliberations.

But Goss also reminded the group that the heating and air-conditioning system at the Richard B. Russell Federal Building in downtown Atlanta is programmed to switch off at 6 p.m.

Lignts, the deputy said, automatically cut off at 7 p.m.

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Jury asks judge about speaking fees

Jurors in the federal corruption trial of former Atlanta Mayor Bill Campbell opened their second day of deliberation by sending a note to the judge.

U.S. District Judge Richard Story was asked if it’s illegal for the mayor to accept a speaking fee from a vendor doing business with the city.

Though the note did not indicate what allegation the jury was referring to, city vendor George Green allegedly gave Campbell $5,000 to give a speech to employees of his company, Sable Communications.

Story called attorneys for the defense and the prosecution into his courtroom about 10:30 to wrangle over the wording of his answer to the jury.

The jury was not called into the courtroom.

Story sent a written response back telling the jury that accepting a speaking fee is not “in and of itself illegal,” and it would violate the law only if it’s a bribe or exceeds $101 and directly relates to the recipient’s official duties.

The speech reference is included in the No. 7 act in the racketeering count.

If the jury is going in order, it is almost half way through the 17 alleged crimes it must vote guilty or not guilty on.

During the session between the judge and the attorneys, Assistant U.S. Attorney Sally Yates motioned toward a stack of eight boxes in the corner of the courtroom.

“I noticed there are boxes of bank records in the courtroom,” she said, asking if the jury could get to them. The judge said he would move the boxes to the hall outside the jury room. “It’s already a pretty tight fit in there,” he said.

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Campbell jury to resume deliberations

Jurors will continue deliberations in U. S. District Court today in the trial of former Atlanta Mayor Bill Campbell.

On Thursday morning, Judge Richard Story interrupted the trial when FBI agents arrived with what appeared to be a letter. Story called attorneys for both sides to the bench. During the conversation, one defense attorney, Jerry Froelich, was overheard saying, "This is a serious matter."

After spending about an hour discussing the letter, the judge reappeared. "We had a potential juror issue," Story said. "It has been determined all is well. We’re fine with the jury at this point." The judge would not elaborate.

The jury deliberated for several hours Thursday, winding up at 5:15 p.m. They are scheduled to continue their work at 9 a.m. today.

Campbell is charged with racketeering, accepting bribes and evading taxes during his term in office from 1994 to 2002.

Campbell verdict

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