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May 19, 2008
CVS trial: Celona: I 'took a walk' on pharmacy choice

Journal illustration / Frank Gerardi
A slimmer and bald John A. Celona, left, answer questions from prosecutor Stephen Dambruch, center, today, as he takes the stand for the first time in the CVS trial as its star witness. Co-defendant and former CVS executive John R. Kramer listens, and U.S. District Chief Judge Mary M. Lisi presides.
PROVIDENCE -- John Celona testified today that he "took a walk’’ on pharmacy choice legislation within weeks of becoming a CVS consultant, and that he concealed his financial ties to the drugstore chain "because I wanted to give myself some cover.’’
The former North Providence senator was explaining why he skipped a committee vote on pharmacy choice legislation in 2000 after actively supporting it the previous two years. CVS opposed the legislation. And once Celona became a $1,000-a-month consultant in February 2000, he stopped supporting it.
"I didn’t want to publicly change my position because I had been so adamant against it,’’ Celona told jurors as he continued his testimony today in the federal corruption trial of two former CVS executives.
This morning, Celona began by testifying about his plea agreement with prosecutors in 2005 to admit to corruption charges and cooperate with the investigation. In return, he received a 12-month sentence reduction.
Contrary to expectations that he would appear in his prison garb, Celona strode into the courtroom in a black suit and red pattern tie. His head was shaved, his trademark dark toupee absent.
He looked about 30 pounds lighter than at his last public appreance, when he was sentenced Jan. 31, 2007, to 2 1/2 years in federal prison for selling his office to CVS, Blue Cross and Roger Williams Medical Center.
In his words, Celona said this morning, his crime was "getting paid in exchange for votes." His obligation to the government now, he testified, is to provide "total cooperation and truthfulness."
Later today, Celona testified that he was asked to "take a walk’’ by then-Sen. William V. Irons, the chairman of the committee.
Irons, an insurance broker, had his own financial ties to Woonsocket-based CVS, collecting commissions on health insurance for CVS employees in Rhode Island. Irons is also good friends with CVS CEO Tom Ryan. Those matters remain under investigation by federal authorities as part of Operation Dollar Bill, the wide-ranging State House corruption probe.
The prosecution did not follow up on Celona’s recollection of his conversation with Irons.
Celona also testified that he never did anything he was supposed to do under his consulting agreement with CVS, such as educating senior citizens about health care issues.
And after his first year, he testified, co-defendants John Kramer and Carlos Ortiz agreed to extend his consulting job, which was initially for one year –– at the same time that Celona became chairman of the powerful Senate Corporations Committee, which oversaw legislation of interest to CVS.
-- Journal staff writer Mike Stanton
Around the same time that CVS extended his consulting agreement, Celona testified, he also had discussions with Ortiz and CVS’s then-public relations person, Todd Andrews, about his job description.
"Now that I was chairman of the committee, I needed to have a title in case anything came up,’’ said Celona.
Asst. U.S. Atty. Stephen G. Dambruch produced an e-mail exchange between Ortiz and Celona in January 2001.
"If anyone asks what you do for CVS,’’ wrote Ortiz, "you should identify yourself as a Community Service Consultant. How does that sound to you?’’
The defense argues that CVS hired Celona not for any political favors but for help promoting the drugstore chain’s charitable endeavors, including the CVS Charity Golf Classic, on his cable-access television show. But Celona testified that that was never discussed when he was hired, and Dambruch pointed to his consulting agreement, which made no mention of that.
Instead, Celona testified, he took the initiative to have Kramer on his show twice in 2000 to talk about the CVS golf tournament and also its Downtown 5K road race in Providence. Celona said that he did so to justify the $1,000 a month he was being paid –– "because I wasn’t doing anything else.’’
Celona testified that Kramer first broached the possibility of the senator working for CVS at a political fundraiser for Sen. Michael McCaffrey, D-Warwick, at a Knights of Columbus in Warwick, in the spring of 2000.
"`We sat down and started talking,’’ said Celona.
"We discussed CVS and how I was active in the community with seniors and that CVS could use another consultant,’’ testified Celona.
That led to a meeting at CVS headquarters on July 8, 2000, with Kramer and Ortiz, during which the two CVS executives talked about him becoming a consultant. Ortiz mentioned Celona’s work among senior citizens and said "that I could be an asset to CVS,’’ testified Celona.
Celona followed up with a written proposal, which he said Kramer requested, and that led to another meeting at CVS headquarters on Jan. 7, 2001, at which Kramer said, "We’d like to have you on board,’’ according to Celona’s testimony.
Celona said that Ortiz asked him whether he had received an opinion from the Rhode Island Ethics Commission regarding the propriety of the senator working for CVS. As a result, Celona said that he contacted someone at the commission –– he didn’t remember who –– and received a verbal okay. But he added that he didn’t identify CVS as his prospective employer.
"I didn’t want to publicize my change in position (on pharmacy choice) so quickly from being an adamant opponent to supporting it overnight,’’ said Celona. ``I thought it would hurt my credibility. The public might feel that it was because I was being paid.’’
Celona also testified about a luncheon he attended at CVS with about eight other senators in March 2000, shortly after becoming a CVS consultant. The government introduced the senator’s calendar to show the noontime meeting. The Senate normally meets later in the afternoon, but not on Mondays.
Instead, Celona had another appointment written in after the CVS lunch –– a stress test.
The trial has wrapped up for the day. Celona, considered the prosecution's star witness, will return to the stand tomorrow and is likely to continuing testifying for several days.
-- Journal staff writer Mike Stanton
Posted by Andrea Panciera
at 2:31 PM | Permalink
Kevin | May 19, 2008 3:00 PM link
jeff | May 19, 2008 4:45 PM link
J.P. | May 19, 2008 6:01 PM link
As Johnny Cash said, "I walk the line" | May 19, 2008 6:11 PM link
Tom Schumpert | May 19, 2008 6:15 PM link
michael | May 19, 2008 6:22 PM link
Paul | May 19, 2008 6:49 PM link
Billy L | May 19, 2008 8:00 PM link
Jack | May 19, 2008 9:00 PM link
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The Senator is at the very least coming clean. In this day and age people get rewards and accolades for merely doing what is "right". Mr Celona appears to seek neither of those, he appears understanding of what he did and in the process is paying a large price for it. Some may say not enough, but I believe he is. Of course all the corporate giants are lined up with their attorneys in tow saying it just isn't so, 'they did nothing wrong', "we hired him for charity"...yeah right. The two Roger Williams execs have gone down (retrial scheduled but found guilty on trial #1), BCBS bought their way out of it, and now CVS can try to weasel away their guilt. Irons is next, but where I wonder is the outcry for our esteemed Atty Gen Lynch? Appears he's got a little dirt under his nails from this one too. At least ex-Senator Celona is doing what is right and trying to undo the years of corruption that corporations and the well connected have exacted from the taxpayers. For that we should be thankful.