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May 12, 2008
Trial of former CVS executives opens in federal court

Journal illustration / Frank Gerardi
U. S. Attorney Stephen Dambruch questions Stop&Shop executive John Fegan, center, as former CVS executives Carlos Ortiz, left, and John R. Kramer, right, listen. Chief Judge Mary M. Lisi presides.
PROVIDENCE -- The trial of two former CVS executives got under way in U.S. District Court this morning with the prosecution and defense providing divergent views of the government’s key witness: ex-Sen. John A. Celona, one-time state lawmaker serving a 2 ½ year prison sentence for selling his office to the CVS drugstore chain.
Daniel Patelas, a trial attorney from the Justice Department’s public integrity unit in Washington, D.C, said that John R. "Jack’’ Kramer, 75, and Carlos Ortiz, 64, hired Celona as a consultant to draft and influence legislation that would help Woonsocket-based CVS.
For more than three years, beginning in the late 90s, CVS paid Celona $1,000-a-month to provide the company with consulting work.
"John Celona took actions and deferred from taking actions, in part, because he was being paid by CVS,’’ Patalas said. He said that the government would provide overwhelming evidence that Kramer and Ortiz are guilty of felony charges of bribery, conspiracy and fraud.
Kramer and Ortiz were named in a 23-count indictment that charges them with bribery, fraud and conspiring to deprive Rhode Islanders of the honest services of a public official: Celona. Patelas said that Kramer and Ortiz bribed Celona by providing him with choice tickets to Red Sox games at Fenway Park, as well as having CVS pick up the tab for golf trips to sunny resorts in Key Biscayne, Florida, and San Diego. They also are accused of scoring tickets for Celona and his wife to attend the taping of an Oprah Winfrey show in Chicago.
Kramer’s lawyer, David B. Fein, of Stamford, Conn., in addressing the jury, said that there was nothing untoward about Celona’s hiring and his relationship with CVS. He said that Celona was hired as a consultant and the professional relationship was above board.
"Mr. Kramer did not intend to deceive the public,’’ Fein said. "John Celona told Kramer and Ortiz that he had received approval from the (Rhode Island) Ethics Commission to work for CVS.’’
-- Journal staff writer W. Zachary Malinowski
Fein also said that Kramer, as senior vice president of corporate and community relations, knew what he was doing when he hired Celona to help promote the company.
"Mr. Kramer was not shy in seeking publicity for CVS,’’ Fein said. He said that Kramer directed the annual CVS Charity Golf Classic at Rhode Island Country Club in Barrington and the CVS 5K Classic Road Race, the state’s largest road race that attracts some of the world’s top runners each September.
Fein said that Celona decided to plead guilty to cooperate with the government and provide evidence against Kramer and Ortiz when he realized that it could shave 12 months off his prison sentence. He pointed out that it took Celona months to offer up the damaging information against the former CVS executives.
The trial began at 9 a.m. with Chief Judge Mary M. Lisi welcoming the jury for the criminal case that is expected to last at least three weeks. The third-floor courtroom was crowded with more than 50 lawyers, reporters and family and friends of Kramer and Ortiz.
Celona, who is being held at the Donald W. Wyatt Federal Detention Center in Central Falls, is expected to spend several days in the witness stand this week.
Posted by Jack Perry
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