RUN, LOREN, RUN!
The "Forest Gump" defense didn't work for Jennings.
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Former Rep. Jennings convicted of fraud
Former state Rep. Loren Jennings, accused of using his office to financially benefit a firm in which he had a financial stake, was convicted Tuesday of two counts of mail fraud and one count of money laundering.
A federal court jury in St. Paul acquitted him of four other charges following a nine-day trial.
Jennings, 54, a Harris DFLer, represented the Chisago County area for 18 years before losing a reelection bid in 2002. He declined to comment as he left court after the verdicts Tuesday afternoon.
Defense attorney Doug Kelley said the convictions will be appealed.
"Obviously, we're disappointed. We thought we had demonstrated that Loren Jennings had complied with all the requirements of state law," Kelley said.
U.S. Attorney Tom Heffelfinger called the verdicts "a just decision under the law."
"Any public official who violates a public trust is subject to consideration by us for possible prosecution," he said.
No date has been set for Jennings' sentencing by U.S. District Judge Richard Kyle. Kelley said he expects prosecutors to seek a six- to seven-year prison term, which he would oppose.
Prosecutors alleged that Jennings used his influence as a one-time chairman of the House Regulated Industries Committee to push for a law change in the late 1990s that benefited Northern Pole Inc. Jennings and some business partners had lent the company hundreds of thousands of dollars.
Jennings then used his political clout to pressure power companies to give money to the power pole recycling firm, prosecutors charged.
Northern Pole collected $650,000 in state-mandated conservation money from energy companies. About $284,000 of that money was used to pay off loans that Jennings and his business partners had given to the company.
A federal grand jury indictment accused Jennings of purposely not disclosing that he had a $670,000 interest in a power pole recycling company.
In closing arguments Monday, Kelley told jurors that what prosecutors claimed were Jennings' investments in Northern Pole were simply "bridge loans" intended to help his friend, banker John C. James.
But James deceived Jennings and his business associates in an elaborate financial scheme intended to cover up irregularities at James' bank, Kelley said.
After pleading guilty to bank fraud charges, James became a government witness against Jennings, trying to avoid a federal prison sentence, Kelley charged.
Changes in state law pushed by Jennings that mandated large power companies to spend money on conservation programs were "wide open" and afforded business opportunities to many companies, not just Northern Pole, Kelley said. He said that Jennings also did not believe that he had a business interest in Northern Pole that state law required him to disclose.
"There was no fraud. He followed the only law that he knew," Kelley told jurors. "He acted in good faith and therefore you should find him not guilty."
But Republican House Speaker Steve Sviggum, called as a prosecution witness, testified that most legislators disclose a possible conflict or ask to be excused from a vote "even if there is a remote question."
Assistant U.S. Attorney Joe Dixon asked jurors why Jennings would lie to officials of Northern States Power (now Xcel Energy) about having a financial stake in Northern Pole if he believed he had complied with state disclosure laws.
"There's no explanation other than the intention to deceive," Dixon said. "This is a case where a legislator used his office for personal benefit by making false statements." Source: Star Tribune, July 27, 2005
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Former Rep. Jennings convicted of fraud
Former state Rep. Loren Jennings, accused of using his office to financially benefit a firm in which he had a financial stake, was convicted Tuesday of two counts of mail fraud and one count of money laundering.
A federal court jury in St. Paul acquitted him of four other charges following a nine-day trial.
Jennings, 54, a Harris DFLer, represented the Chisago County area for 18 years before losing a reelection bid in 2002. He declined to comment as he left court after the verdicts Tuesday afternoon.
Defense attorney Doug Kelley said the convictions will be appealed.
"Obviously, we're disappointed. We thought we had demonstrated that Loren Jennings had complied with all the requirements of state law," Kelley said.
U.S. Attorney Tom Heffelfinger called the verdicts "a just decision under the law."
"Any public official who violates a public trust is subject to consideration by us for possible prosecution," he said.
No date has been set for Jennings' sentencing by U.S. District Judge Richard Kyle. Kelley said he expects prosecutors to seek a six- to seven-year prison term, which he would oppose.
Prosecutors alleged that Jennings used his influence as a one-time chairman of the House Regulated Industries Committee to push for a law change in the late 1990s that benefited Northern Pole Inc. Jennings and some business partners had lent the company hundreds of thousands of dollars.
Jennings then used his political clout to pressure power companies to give money to the power pole recycling firm, prosecutors charged.
Northern Pole collected $650,000 in state-mandated conservation money from energy companies. About $284,000 of that money was used to pay off loans that Jennings and his business partners had given to the company.
A federal grand jury indictment accused Jennings of purposely not disclosing that he had a $670,000 interest in a power pole recycling company.
In closing arguments Monday, Kelley told jurors that what prosecutors claimed were Jennings' investments in Northern Pole were simply "bridge loans" intended to help his friend, banker John C. James.
But James deceived Jennings and his business associates in an elaborate financial scheme intended to cover up irregularities at James' bank, Kelley said.
After pleading guilty to bank fraud charges, James became a government witness against Jennings, trying to avoid a federal prison sentence, Kelley charged.
Changes in state law pushed by Jennings that mandated large power companies to spend money on conservation programs were "wide open" and afforded business opportunities to many companies, not just Northern Pole, Kelley said. He said that Jennings also did not believe that he had a business interest in Northern Pole that state law required him to disclose.
"There was no fraud. He followed the only law that he knew," Kelley told jurors. "He acted in good faith and therefore you should find him not guilty."
But Republican House Speaker Steve Sviggum, called as a prosecution witness, testified that most legislators disclose a possible conflict or ask to be excused from a vote "even if there is a remote question."
Assistant U.S. Attorney Joe Dixon asked jurors why Jennings would lie to officials of Northern States Power (now Xcel Energy) about having a financial stake in Northern Pole if he believed he had complied with state disclosure laws.
"There's no explanation other than the intention to deceive," Dixon said. "This is a case where a legislator used his office for personal benefit by making false statements." Source: Star Tribune, July 27, 2005
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