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May 20, 2008

CVS trial: Celona tells of becoming point man for CVS

celona_0520.jpg
Journal photo / Frank Gerardi
Former state senator John A. Celona, left, answers questions from prosecutor Stephen G. Dambruch, right. Below, lawyers for former CVS executive and co-defendant Carlos Ortiz, left, view a check made out to Celona. Co-defendant John R. Kramer, far right, looks on as Judge Mary M. Lisi presides.


PROVIDENCE -- John A. Celona, the government's star witness in the CVS corruption trial, returned to court this morning and testified that he became the point man for legislation beneficial to the Woonsocket-based giant drugstore chain.

Celona, a corrupt ex-senator from North Providence serving a federal prison sentence, said he followed directions from CVS executives to submit or kill bills at the State House. At the time, Celona was earning $1,000 a month as a paid consultant for CVS.

Celona had also been appointed to the Rhode Island Student Loan Authority and he promoted an effort to allow University of Rhode Island pharmacy students to get a break on their student loans. The proposal would address a shortage of pharmacists in the state, New England and nationwide, and would also be beneficial to CVS.

Celona also testified that he attended an event at the Narragansett home of Tom Ryan, who is CVS's chief executive officer and a URI pharmacy graduate. At the event, Celona said that Ryan spoke to his guests and thanked him for pushing the loan reduction plan for pharmacy students.

Celona's consulting arrangement with CVS came to an end in August 2003 on a golf course in Norton, Mass. He was sharing a golf cart with John R. "Jack" Kramer, a then-CVS executive who is the other defendant on trial, and, Celona said, Kramer told him a flap at the time involving House Majority Leader Gordon Fox and his legal work for GTECH had caused CVS great concerns.

Still, Celona said, Kramer arranged and paid for him to attend a lavish American Airlines golf tournament in Newport Beach, Calif., the following month.

Celona admitted today -- after this all became public and he resigned from the Senate in March 2004 -- that he had lied to the news media and to federal investigators.

At 10:30 a.m. today, prosecutor Stephen G. Dambruch finished his questioning of Celona. He was followed by Scott Corrigan, one of Kramer's lawyers, who began questioning Celona about his grand jury testimony involving his consulting agreement with CVS.

Corrigan spent the final two hours of the day trying to trip up Celona on discrepancies he had from yesterday’s testimony and past grand jury testimony.

He also spent more than an hour reviewing Senate Corporations Committee votes on pharmacy choice legislation. In 1998 and 1999, Celona was a leading proponent of the legislation that CVS opposed. After Celona became a company consultant, he was absent on days that the committee voted on the legislation.

Corrigan continues his cross examination of Celona at 9 a.m. tomorrow.

Read Journal coverage of yesterday's testimony.

Special Report: Continuing coverage of the bribery trial of two former CVS executives.

Click below for a look at exhibits submitted in court today:

-- Journal staff writer W. Zachary Malinowski

Exhibit F19: Read John Celona’s memo swearing loyalty to new Senate leader Bill Irons and taking credit for helping Irons oust Paul Kelly.

Exhibits 16, 352, 17, 353 and 328: Read e-mails and meeting minutes documenting Celona’s efforts to promote a loan forgiveness program for pharmacy students on CVS’s behalf.

Exhibit 358: Read a fax from Jack Kramer to John Celona with "talking points" for opposing a Canadian drug-imports bill.

Exhibit 109: Read a job description that Celona testified was drafted by Carlos Ortiz and Todd Andrews at CVS a year after his consulting job began.

Posted by Mike McKinney  at 2:50 PM | Permalink

Comments

He is not to be trusted. His testimony is tained, he betrayed the trust of all of us. He should be sent back to his jail cell where he belongs R.R.H

R.R.H | May 20, 2008 3:11 PM link

Does the prosecution have anything solid? Everything looks circumstantial. On one hand we have the defendants who appear to have been hard working and rose to the level of officers at one of RI’s top companies. On the other hand we have the prosecution’s star witness who has demonstrated that he is of low character and will do anything if there is something in it for him. A more lenient sentence in return for testifying against the defendants, it appears there is something in it for him. A rose by another name still SMELLS the same. I might see it differently if he didn’t receive anything in return for his testimony

pg | May 20, 2008 7:34 PM link

I would love to see the people of RI start a boycott of CVS store throught Rhode Island. It would not only hurt their bottom line, it would provide a national spotlight on a company that I feel has engaged in the worst type of corporate behavior possible.. bribing our elected officials for thier own gain. Please tell me why this coroporation, like that of GTech (another company that has bought and paid for legislators) is concidered good for our State. I say put Ryan on the stand and let the country see what he has become.

JJB | May 21, 2008 6:20 AM link

I would LOVE to boycott CVS, but as a result of their vote-buying, I cannot, unless I choose to ignore my prescription plan and pay full price. (I did check into Wal-Mart, but my prescriptions are not in their $4.00 catagory, unfortunately.) As to the 'hard working' execs who worked their way up the corporate ladder, I think it's obvious they would do anything to get haead, whether it is morally or legally right.

Tom | May 21, 2008 10:20 AM link

RRH and PG clearly understand this case for what it is... a circumstantial witch hunt!
Kramer and Ortiz have unblemished careers that are being tainted by Celona and the state.

Celona has repeated tripped up on the facts of this case, and the judge is so annoyed that she has every right to dismiss the case if there are any more lies from Celona.

It appears that others are far more involved than Kramer and Ortiz.

PWC | May 22, 2008 12:20 PM link

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