John R. Kramer, accompanied by family members and lawyers, arrives at U.S. District Court for opening arguments yesterday in his federal corruption trial and that of fellow former CVS executive Carlos Ortiz. The Providence Journal / Mary Murphy

PROVIDENCE

The dueling personas of John Celona –– political fixer versus public-relations consultant — were on display in federal court yesterday as lawyers for the prosecution and the defense made their opening statements to jurors in the corruption trial of two former CVS executives charged with bribing the one-time state senator.

Afterward, the government’s first witness, an executive for CVS rival Stop & Shop, testified how Celona, who had been a steadfast supporter of pharmacy-choice legislation that CVS opposed, later disappeared before a crucial vote on the matter.

Unbeknown to the executive, prosecutors say, Celona had joined CVS’ payroll the month before, as a $1,000-a-month consultant.

The trial of John R. Kramer, 75, and Carlos Ortiz, 64, on 23 counts of conspiracy, bribery and honest-services mail fraud opened with different perspectives on CVS’ hiring of Celona –– was he hired to help promote the drugstore chain’s image in the Rhode Island community or to take care of the Woonsocket-based drugstore chain’s financial interests at the Rhode Island State House?

In a trial that could take four weeks, the jury will have to decide whether to believe the defendants or Celona, the government’s star witness. The former senator from North Providence admitted selling his office and is serving a 2½-year prison term as part of his cooperation agreement in a wide-ranging corruption probe known as Operation Dollar Bill.

Daniel Petalas, a prosecutor with the U.S. Department of Justice’s Public Integrity Section in Washington, told jurors that CVS paid Celona $45,000 from early 2000 to the fall of 2003 to change his position on the controversial pharmacy-choice legislation, and also to win his support on other legislation that CVS cared about, including banning Canadian drug imports, allowing the filing of electronic prescriptions and supporting a state-backed student-loan program for pharmacy students.

Besides the money, Petalas revealed, Celona received golf trips to San Diego and Key Biscayne, Fla., tickets to the Oprah Winfrey television show and tickets near the dugout at Fenway Park for Boston Red Sox baseball games. Celona described the San Diego trip, during which he golfed at the exclusive Pelican Hills Golf Club and stayed at the posh Four Seasons hotel, as a “consolation bribe” from Kramer when CVS ended the consulting arrangement, said Petalas.

“We will prove beyond a reasonable doubt that their intent was to influence John Celona with these payments,” said Petalas.

Blocking pharmacy-choice legislation was a big deal at CVS, argued Petalas –– “These two defendants valued it at millions of dollars for CVS.”

David B. Fein, a Stamford, Conn., lawyer who represents Kramer, countered that Celona lacked political power when CVS hired him, and that his opposition to pharmacy choice was meaningless because the measure had consistently failed and actually lost support.

“Mr. Kramer and Mr. Ortiz acted without criminal intent in engaging John Celona to do consulting work, for $12,000 a year,” said Fein.

Thomas R. Kiley, a Boston lawyer who represents Ortiz, told jurors that there is no evidence that Ortiz ever lobbied Celona on pharmacy choice. Kiley described Ortiz’s e-mails with Celona on other legislative matters, after Celona became a powerful committee chairman in 2001, as “permissible communications” with a lawmaker, unrelated to the senator’s public-relations duties for CVS.

Besides, Kiley argued, Ortiz wasn’t enthused about hiring Celona, raised the question of ethics and ultimately made the decision to terminate him.

Petalas said that Kramer and Ortiz concealed Celona’s consulting agreement from others within CVS and from the company’s State House lobbyists. The defense countered that Celona’s hiring went through proper channels and was not a secret.

The prosecutor criticized Kramer and Ortiz for relying on Celona’s verbal assurances that the Rhode Island Ethics Commission had given him a verbal opinion that the senator could work for CVS. The defense countered that there was nothing wrong with the two CVS executives believing Celona, especially since Ortiz first raised the question of ethics.

The prosecution portrayed Celona as a State House “asset” for CVS, while the defense said his value was promoting CVS charitable events by having Kramer as a guest on his cable-access television show, and among his extensive network of elderly constituents.

Kramer may have been vain in liking his appearances on Celona’s TV show, said Kiley –– “but vanity is not a crime.”

Following the opening statements, Assistant U.S. Attorney Stephen G. Dambruch called the government’s first witness, John J. Fegan, a vice president for Stop & Shop.

Fegan testified that Stop & Shop had been shut out of a restricted Blue Cross & Blue Shield of Rhode Island network that included CVS drugstores in Rhode Island. So in 1998, “we put on a full-court press” to lobby lawmakers to pass legislation that had failed since the mid-1990s, passing the House but dying in the Senate Corporations Committee.

Fegan testified that he met regularly with Celona, one of four sympathetic lawmakers on the critical Corporations Committee –– someone who “provided counsel on how to maneuver through the maze” of the legislative process.

Celona voted for pharmacy choice in 1998 and 1999. But when the bill came up again in 2000, shortly after Celona had become a CVS consultant, the senator disappeared, even though he had been present at the start of the hearing.

“What happened?” asked Dambruch.

“It came time to vote, his papers were at his space, but he wasn’t there,” said Fegan.

On cross-examination, another lawyer for Kramer, Peter DiBiase, argued that by the time Celona skipped the 2000 vote, Stop & Shop had given up on a legislative solution and taken CVS to court instead.

After the failed vote in 1998, Fegan wrote Celona to thank him for his support.

“I think we have caught the attention of the Rhode Island residents, many of whom are your constituents,” wrote Fegan.

Celona responded a month later informing Fegan that he was up for reelection, and requesting a campaign contribution “to maintain my voice for progressive government at the State House.”

Fegan sent Celona a check, and wrote, “Your positive responsiveness to the issues which impact your constituents is greatly appreciated.”

DiBiase asked Fegan, “When you sent that check, you certainly weren’t doing anything wrong? … You weren’t trying to improperly influence the system?”

No, Fegan replied.

“That’s the way our system works –– you support people who support you?” asked DiBiase.

Fegan agreed.The principals

John A. Celona, the former state senator from North Providence, will be the government’s star witness in the trial of ex-CVS executives John “Jack” Kramer and Carlos Ortiz. Celona, who is serving a 2 1/2-year sentence in federal prison after pleading guilty to selling his public office, is cooperating with the prosecution in exchange for a sentence reduction.

John R. “Jack” Kramer, former senior vice president of corporate relations and community relations at CVS, is on trial for bribery, conspiracy and mail fraud.

Carlos Ortiz, former vice president of government affairs at CVS, also is on trial for bribery, conspiracy and mail fraud. Ortiz and Kramer are charged with conspiring to deprive Rhode Islanders of the honest services of a public official — Celona.

mstanton@projo.com