Home > Blog > Archives > 2006 > May > 09 > Entry
Schrenko witness: ‘The money was diverted’
The Atlanta Journal-Constitution
Another government witness testified Tuesday about illegally funneling money into then-Georgia School Superintendent Linda Schrenko’s 2002 campaign for governor.
Richard Leonard, part of Schrenko’s campaign staff, said he followed orders of campaign manager Merle Temple to find friends and relatives to sign over a batch of $590 checks.
“The money was diverted back into the campaign,” Leonard told jurors today.
This is the second week of Schrenko’s federal public corruption trial on charges of embezzling and money laundering of more than $600,000 in federal education funds. Prosecutors allege about half of the money, meant for deaf and honors students, was funneled back into Schrenko’s failed bid for governor.
Leonard said he took the checks and approached his family and friends and asked them to accept a $590 check as payment for being part of a political focus group, even though they hadn’t participated in one. Then, they were to endorse the check and donate it to Schrenko’s campaign.
The focus group checks actually were from four companies owned by or affiliated with co-defendant A. Stephan Botes, who was seeking a $2.5 million state Department of Education contract and had agreed to help Schrenko’s campaign.
Prosecutors allege Botes and his chief operating officer, co-defendant Peter Steyn, went further, helping funnel the federal education money into Schrenko’s campaign. Steyn’s attorney blamed Botes and said his client was following his boss’ orders.
Botes blames his underlings for committing crimes without his knowledge while he was away on other business. Schrenko maintains her innocence and blames Temple for abusing her trust, breaking the law and then turning on her to save himself from a lengthy prison sentence.
On Monday, witness Shawn Neal, who worked in the Augusta office of Schrenko’s daughter, testified that the former superintendent personally asked her to sign over to the campaign $3,540 in checks made out to Neal and her husband. Again, the checks were from companies owned by or affiliated with Botes and were for focus groups that never occurred.
Temple, Leonard and two others have pleaded guilty to participating in the scheme. All are expected to testify, which could help win them a lighter sentence.
Permalink | |
