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Celona next up in as CVS trial resumes

01:00 AM EDT on Sunday, May 18, 2008

BY MIKE STANTON

Journal Staff Writer

PROVIDENCE –– After hearing testimony for a week about the two faces of John Celona, jurors in the CVS corruption trial of former executives John R. “Jack” Kramer and Carlos Ortiz will get a firsthand glimpse this week.

The imprisoned ex-senator from North Providence is expected to take the stand tomorrow, as the anticipated four-week trial enters its second week. Kramer and Ortiz face 23 counts of bribery, conspiracy and mail fraud.

The government’s star witness will offer his firsthand view of how he came to work as a $1,000-a-month consultant for CVS in 2000, and allegedly influenced legislation on the drugstore chain’s behalf after becoming chairman of the Senate Corporations Committee a year later.

Jurors won’t see the familiar senator who craved the public eye, in his suits and his trademark toupee, but instead a federal prison inmate in khaki prison garb and a shaved head. Celona, who is serving a 2½-year term after pleading guilty to selling his office, is cooperating with the State House corruption probe known as Operation Dollar Bill.

The trial before Chief U.S. District Judge Mary M. Lisi began with opening arguments last Monday.

Daniel Petalas, a prosecutor with the U.S. Department of Justice’s Public Integrity Section in Washington, D.C., told jurors that CVS paid Celona $45,000 from early 2000 to the fall of 2003 to change his position on controversial pharmacy-choice legislation, and also to win his support as a powerful committee chairman for their legislative positions.

Besides the money, Celona received golf trips to Florida and California, choice seats for Boston Red Sox games at Fenway Park and help obtaining tickets to The Oprah Winfrey Show, in Chicago.

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

The defense countered that Celona had no political power when CVS hired him, and that the drugstore chain paid him not for his political clout once he became a committee chairman, but for his efforts promoting CVS charitable events though his cable-access television show and his network of senior citizens.

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

Here’s a recap of last week’s testimony:

MONDAY

John J. Fegan, vice president for Stop & Shop, testified that Celona supported pharmacy choice legislation favored by Stop & Shop in 1998 and 1999, but then disappeared when a key committee vote took place on the measure in 2000, a month or so after Celona became a CVS consultant.

TUESDAY

Paul DeRoche, vice president of the Greater Providence Chamber of Commerce, testified about his dealings with Celona, Kramer and Ortiz on pharmacy issues of mutual interest to the Chamber and CVS. He also testified about golf outings and a drugstore association conference in Key Biscayne, Fla., which he attended with Celona, Kramer and Ortiz. But DeRoche said nobody ever told him that Celona was a paid consultant for CVS.

Joseph W. Walsh, a prominent State House lobbyist who represented CVS from 1998 to 2004, testified about lobbying, legislation and Celona. He described a key State House meeting that he arranged with Kramer, Ortiz and Celona in 1999, but said he did not recall any mention of a CVS consulting job for Celona. He also testified that Kramer told him the following year, after Celona had gone on the CVS payroll, that “we are doing something with Celona.”

WEDNESDAY

Mary Jane McCusker, administrative assistant to defendant Kramer, testified to her efforts to help Celona obtain tickets to The Oprah Winfrey Show.

Clark Curtis, a lobbyist who worked for Walsh, testified about his work on behalf of CVS in 2002 and 2003. He said that while he lobbied Celona on legislation of interest to CVS, nobody ever told him that Celona was being paid as a CVS consultant.

THURSDAY

Mary Jane McCusker, Kramer’s administrative assistant, testified in her second day on the stand about her boss’s meetings with Celona and other politicians and dignitaries.

Betty Bibeault, Ortiz’s administrative assistant, testified that Celona was paid out of CVS’ Political Contributions account, at Ortiz’s direction.

FRIDAY

Betty Bibeault testified that she asked Ortiz whether she should pay Celona, and he told her yes, that Celona was going to work as CVS’ “eyes and ears” among senior citizens. Ortiz said that Celona’s hiring was Kramer’s idea, and that Celona had reassured Ortiz that he had received clearance from the Rhode Island Ethics Commission. Ortiz, however, confided that he was not thrilled with the idea.

David Rickard, CVS’ chief financial officer, testified that although he began overseeing government relations in 2001, and supervising Kramer and Ortiz, nobody told him that Celona was working for CVS as a $1,000-a-month consultant.

mstanton@projo.com