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May 16, 2008

CVS trial: CFO says he was in the dark about Celona

Journal illustration / Frank Gerardi
David Rickard, CVS's executive vice president and chief financial officer, answers questions from prosecutor Stephen Dambruch, center. In foreground are John R. Kramer, center, and his lawyers. Chief Judge Mary M. Lisi presides.

PROVIDENCE -- After the morning break in the federal bribery case against former CVS executives John R. "Jack" Kramer and Carlos Ortiz, attorneys continued questioning Betty Bibeault, Carlos Ortiz's former assistant.

She testified that no one at CVS ever asked her to "hide or destroy" any documents that detailed former state Sen. John Celona’s employment with the Woonsocket-based drugstore giant.

But, during redirect questioning by prosecutor Daniel Petalas, of the Justice Department’s public integrity unit, Bibeault conceded that Ortiz was uncomfortable with the senator’s role as a CVS consultant.

"He didn’t like the appearance of it," she said.

During her testimony this morning, Bibeault questioned the first invoice submitted by Celona. She said she hadn't been expecting it, and she asked her boss if she should pay it. He told her he should, because Celona was going to be working for CVS as the "eyes and ears of CVS" among the senior population.

Ortiz and Kramer are accused of bribing Celona for favorable treatment at the State House.

Bibeault's testimony was followed by David Rickard, CVS’s executive vice president and chief financial officer. He spent an hour on the witness stand and answered questions about the company’s budgetary process and chain-of-command.

In November 2001, Rickard said that he was charged with an additional responsibility: overseeing governmental relations, which included supervising Kramer and Ortiz. Under questioning by prosecutor Stephen G. Dambruch, Rickard said that neither Kramer nor Ortiz ever told him that Celona was working for CVS as a $1,000-a-month consultant.

Scott Corrigan, one of Kramer’s lawyers, elicited testimony from Rickard that Kramer was free to hire paid consultants without his approval. Rickard concluded his testimony and the jurors were released for the weekend. The trial resumes on Monday at 9 a.m.

Extra: Continuing coverage of this and other cases involved in Operation Dollar Bill

-- Journal staff writer W. Zachary Malinowski

Posted by Brandie Jefferson  at 1:37 PM | Permalink

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