U.S. District Judge Ernest Torres told jurors they could consider any work that Celona performed on the hospital's behalf either behind the scenes or "under the cloak of his office." But the defense lawyers said those instructions were overly broad and permitted jurors to convict their clients for conduct that was not illegal and for "activities entirely unrelated to the legislative duties which the public elected (Celona) to perform."

In addition, Driscoll's attorney argued that conflicts of interest are almost inevitable in states like Rhode Island, which has a part-time legislature. Certain conflicts are tolerated under state law, and the onus is on legislators to know when they must recuse themselves from voting, wrote defense attorney John "Terry" MacFadyen.

"This case is about the difficulties which may ensue when non-legislators, not covered by the ethics code, enter business relations with a politician who is, and when that politician proves to have moral blinders, an oversized ego and feet of clay," MacFadyen wrote.

The appeals court has allowed both defendants to remain free on bail pending their appeal, saying they were raising important questions about the jury instructions.

Urciuoli, who was convicted of conspiracy and 35 counts of mail fraud, was sentenced to three years in prison. Driscoll, found guilty of a single mail fraud charge, was sentenced to eight months in prison followed by eight months home confinement.

Celona, a once-powerful lawmaker who chaired a Senate committee that dealt with health care legislation and resigned from the General Assembly in March 2004, was hired as a consultant for an assisted-living home that was affiliated with Roger Williams.

In reality, prosecutors said, he was being paid by the hospital executives to promote their legislative agenda and perform other favors. Defense lawyers argued that Celona and Driscoll were upfront about Celona's job with the medical center and that the relationship was always above board.

"Taken in the light most favorable to the defense, as required when instructions are at stake, the evidence showed that Celona was hired for his contacts with the senior community and not as an under-the-table lobbyist," MacFadyen wrote.

Celona earned more than $250,000 for his Roger Williams work between 1998 and 2004. He pleaded guilty in 2005 to having improper business dealings with Roger Williams, CVS Corp. and Blue Cross and Blue Shield. He is serving a two and a half year federal prison sentence. Two former CVS vice presidents were indicted last January and have pleaded not guilty.

Federal prosecutors say their investigation is continuing.

A spokesman for U.S. Attorney Robert Clark Corrente declined to comment on the defendants' arguments. The government will have an opportunity to file reply briefs.