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May 22, 2008

CVS Trial: Celona consulted for many, filed few taxes

The government’s star witness in the CVS corruption trial admitted this morning that he lied to federal investigators and cheated on his taxes during the years he worked as a paid consultant for the Woonsocket-based drug-store giant.

Celona

In two hours of cross examination, Scott Corrigan, a defense lawyer, introduced evidence that former state Sen. John H. Celona was paid $12,000 or more annually from several businesses.

Celona consulted for New England Ambulance Service Inc.; Certified cleaning and Restoration; Intercity Maintenance; and Healthlink. The consulting agreements called for representatives from the four businesses to appear on Celona’s cable television program at least once a year.

Corrigan produced documents that showed Healthlink paid Celona $17,000 in 2001 that he did not declare on his income taxes.

Celona also admitted that he used money from his campaign fund for personal use and failed to disclose it on his tax returns.

At one point during cross examination, Corrigan showed a copy of a letter from Celona to his accountant on a video screen.

“May I ask how you got those?” Celona asked.

Judge Mary M. Lisi snapped back –– “No, you may not.”

-- Journal staff writer W. Zachary Malinowski

Extra: More on this trial and Operation Dollar Bill

In 2005 Celona pleaded guilty to charges that he sold his public office to CVS, Blue Cross & Blue Shield of Rhode Island, and Roger Williams Medical Center. As part of the agreement in which Celona agreet to cooperate with the authorities, he was promised that he would not be prosecuted for tax evasion.

Celona’s cooperation resulted in a 12-month reduction in his prison sentence. He is serving a 2½ year term in a federal prison in Pennsylvania.

Today is his fourth day of testimony in the trial of two CVS executives -- Carlos Ortiz and John R. "Jack" Kramer -- accused of bribing Celona and buying influence in the State House.

Celona is expected to return to the witness stand after a short break.

Posted by Brandie Jefferson  at 11:53 AM | Permalink

Comments

What a BUM

Bill | May 22, 2008 12:36 PM link

How can they not prosecute this crook for tax evasion??? What happend to all the money he stole from RI Taxpayers???? Who made that stupid deal..........

Kim | May 22, 2008 1:59 PM link

Not a penny in restitution in either the state or federal prosecutions. When he walks he walks with his cash gains.

doughboys | May 31, 2008 8:00 PM link

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