Tuesday, March 13, 2012

Expense, Risk of Trial Led Rosty to Bargain

Former U.S. Rep. Dan Rostenkowski decided to plead guilty tofederal corruption charges after analyzing the risks - andconsiderable expense - of going to trial before a District ofColumbia jury and a tough judge, friends said.

The prison sentence that Rostenkowski reportedly has agreed toaccept - up to 17 months - is longer than the six months he wouldhave received under a plea bargain considered before his indictmenttwo years ago.

But it's also much shorter than the four years he could havereceived if convicted at trial of all 13 counts against him.Rostenkowski's guilty plea is expected sometime this week -possibly today - if the former House Ways and Means chairman doesn'tchange his mind, sources said. He was scheduled to go on trial nextmonth.Asked how Rostenkowski was feeling about his decision, onefriend said: "It's pretty rough. On the other hand, it's alsoover."Rostenkowski could not be reached for comment. A spokesman forthe U.S. attorney's office declined comment, as did Rostenkowski'slawyer, Dan K. Webb, through his secretary.A guilty plea by Rostenkowski would end a four-year ordeal inwhich he will have lost his reputation, his powerful office and, now,his freedom.He has spent at least $2.7 million on lawyer bills - some of itfrom campaign funds and the rest from a legal defense fund.Rostenkowski's campaign coffers are now empty. Because he isout of office, he no longer has to report anything about his legaldefense fund. But associates said all the money in the defense fundhas either been spent or committed to Rostenkowski's lawyers - led byWebb, a formerU.S. attorney now at Winston & Strawn.The additional $1 million that it would have cost to go to trialwas said to be a key factor in Rostenkowski's decision. Friends saidhe was tired of asking for money. It also is believed thatRostenkowski was loath to deplete his family fortune.Rostenkowski also was thought to be concerned about how he wouldbe perceived by a District of Columbia jury and how he would betreated by U.S. District Judge Norma Holloway Johnson.Earlier this year, a D.C. jury convicted Robert Russo, a formerRostenkowski employee who has Parkinson's disease, of lying to agrand jury about being a ghost payroller for the congressman.Johnson sentenced Russo to 10 months in prison and said from thebench: "You know, having lived in Chicago, what can happen to acommunity and a state if our justice system is not working."Johnson will have to approve any plea arrangement.Under the tentative deal, Rostenkowski would plead guilty to twoof the 13 counts. In addition to the 17-month prison sentence,Rostenkowski would pay a $100,000 fine.Federal law would require Rostenkowski to serve at least 85percent of his 17-month sentence - or more than 14 months.Before his indictment in 1994, Rostenkowski's lawyers, then ledby Robert S. Bennett, were close to a deal in which he would havereceived six months in prison and paid a $38,000 fine. He also wouldhave had to resign. That's no longer an issue, since Rostenkowskilost to Republican Michael P. Flanagan in 1994.It is not known what specific admissions Rostenkowski plans tomake, although he apparently will not concede all the accusationsmade against him in the indictment, which alleged that he stolenearly $700,000 in federal and campaign funds.Rostenkowski was accused of embezzling money from the House PostOffice, charging the government for gifts purchased from the Housestationery store, buying personal cars with public and campaign fundsand loading his payroll with ghost workers who conducted personalbusiness for him.Admitting guilt in the House Post Office allegations was knownto be a particular sticking point with Rostenkowski in earlier pleanegotiations.Newsweek magazine reported that Rostenkowski will admit topayroll and stationery store abuses.

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