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May 13, 2008
CVS trial: Lobbyist tells of pivotal State House meeting
PROVIDENCE -- Joseph W. Walsh, a prominent State House lobbyist and a former mayor of Warwick, took the stand today in the federal corruption trial of two former CVS executives accused of bribing former Rhode Island Sen. John A. Celona.
Walsh testified about his years as a lobbyist for CVS, including a pivotal meeting at the State House that he arranged between Celona and the two defendants, John Kramer and Carlos Ortiz. The meeting, in the summer of 1999, came at a time when Celona was opposing CVS on critical pharmacy legislation –– and it led to further discussions culminating in Celona’s hiring in early 2000 as a $1,000-a-month consultant for the Woonsocket-based drugstore chain.
``On several occasions John –– Senator Celona –– mentioned that he wanted me to bring (CVS CEO Tom Ryan) to the State House,’’ testified Walsh. ``Several times he’d say, `Bring Ryan up here –– we want to talk to him.’ ‘’
Walsh said that he ignored Celona’s request, but then called either Kramer or Ortiz and asked them to meet with Celona.
``From my standpoint, it was just a meeting because someone requested a meeting,’’ said Walsh, who couldn’t recall many specifics. ``I looked at it as a meet-and-greet, where they could have a conversation.’’
Walsh said that he ``assumed’’ they discussed the hot bill that session, pharmacy choice, which Celona favored but CVS opposed. But he said that he didn’t recall. The legislation, which Walsh lobbied against and which failed to pass, would have forced Blue Cross & Blue Shield of Rhode Island and CVS to open up a restricted pharmacy network that they operated.
``I assume there would have been some give and take about that issue, and then CVS would make a case for who they are and what they’re doing in the community,’’ said Walsh.
Previous testimony has indicated that in 2000, after Celona went on the CVS payroll, he stopped supporting pharmacy choice, skipping a key committee vote.
-- Journal staff writer Mike Stanton
Asst. U.S. Atty. Stephen Dambruch asked Walsh if the subject of Celona possibly working for CVS came up at their 1999 meeting.
``Not to my knowledge, no,’’ replied Walsh.
Dambruch also introduced documents –– memos and e-mails –– charting communications among CVS lobbyists, including Walsh and Ortiz, regarding CVS’s legislative agenda.
In 2001, Celona sponsored a bill that would have required pharmaceutical manufacturers to take returns on unsold drugs from pharmacies, a measure that would have been a financial benefit to CVS. Later, a lobbyist who worked for Walsh at the law firm of Tillinghast Licht, Gayle Wolf, wrote him a memo indicating that CVS subsequently asked that the bill be held.
``Patrick and I discussed it with Senator Celona,’’ wrote Wolf, referring to Patrick Lynch, then another CVS lobbyist for Walsh and now the Rhode Island attorney general. ``He agreed at our request that the bill be held.’’
In 2003, Walsh testified, Ortiz e-mailed him that CVS wanted someone to introduce legislation allowing doctors to electronically file prescriptions, and that Ortiz had talked to Celona, who was willing to introduce the bill.
Lawyers for Kramer and Ortiz cross-examined Walsh for about 90 minutes after the morning break.
They elicited testimony from him that sometime in 2000 he learned that Celona was performing work for the CVS, but he said that neither Kramer nor Ortiz told him how much he was being paid or how he was being compensated.
U.S. Chief Judge Mary M. Lisi dismissed the jurors at 1:45 p.m. at the conclusion of Walsh’s testimony. The trial resumes tomorrow at 9 a.m.
-- Journal staff writer Mike Stanton, with reports from Journal staff writer W. Zachary Malinowski
See The Journal report on yesterday's opening statements.
For more on the investigation known as Operation Dollar Bill, go to projo.com' s continuing report.
Posted by Jack Perry
at 11:53 AM | Permalink
Leroy | May 13, 2008 5:39 PM link
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More nonsense Celona tries to bury people to get a shorter sentence