invenice.net - Fumo Strikes First

HARRISBURG - In a preemptive strike on the eve of his likely indictment, a defiant State Sen. Vincent J. Fumo took the fight to federal prosecutors yesterday, vowing to contest charges he called "falsities and half-truths."

"I know in my heart that I have not done anything illegal," the Philadelphia Democrat said during a 12-minute speech on the Senate floor, his voice at times somber, at times bitter.

"Sometimes in life the only choice we have when we face blatant injustice is to have the courage to stand up and fight. That is what I will do."

Fumo made the extraordinary remarks as lawyers close to the case said fraud, conspiracy, and obstruction-of-justice charges appeared imminent. An indictment could come as early as today.

Fumo stepped down from a powerful committee post yesterday - a day before the presentation of the annual state budget - but will remain in the Senate.

It was "a stunning development for the preeminent politico," said Fumo's longtime friend and fellow Democrat, House Majority Leader Bill DeWeese.

"There certainly has been only one Vince Fumo, and the long arm of the senator has exhibited unparalleled muscularity," he said.

After four years of near-silence on the investigation, Fumo, 63, a Philadelphia political baron and a Harrisburg fixture for three decades, said he expected the indictment to be voluminous - and misguided.

He predicted the indictment would focus on two basic allegations: that he exploited a South Philadelphia charity and misused his Senate staff for personal and political purposes.

It will not allege, Fumo said, that he ever cast a vote in his own interest or extorted money from businesses.

"The indictment will not allege that I ever accepted a bribe," Fumo said. "And, as the government knows, I never did."

For nearly four years, the FBI and IRS have been investigating the finances of the multimillion-dollar charity Citizens' Alliance for Better Neighborhoods.

The organization, founded and run by Fumo allies, is funded mainly with public money and donations from Peco Energy Co. and the Delaware River Port Authority - money obtained through Fumo's influence or help.

The Inquirer has reported that the charity paid for political polls and secretly funded a lawsuit against a Fumo political rival. It is illegal for charities to participate in political activities and the IRS has been scrutinizing Citizens' Alliance tax returns to determine whether they were falsified.

Sources say the FBI is also investigating whether the charity bought Fumo household items and provided its SUVs - a Ford Expedition and a Lincoln Navigator - for Fumo to use on vacation.

"Make no mistake, I am proud of Citizens' Alliance," he said, ticking off a list of the nonprofit's accomplishments, from funding a charter school to cleaning up blighted neighborhoods.

The charity's lawyer, William J. Winning, declined last night to comment on the speech or the investigation.

In his speech, Fumo also defended his relationship with Harrisburg and Philadelphia staff. He said they work long hours serving constituents well.

"The suggestion that my staff members are political operatives or personal assistants reflects an amazing ignorance of both the legislative process and the facts," he said with a group of aides standing behind him on the Senate floor.

Fumo made no reference to possible obstruction-of-justice charges. Last year, two of his Senate computer technicians were accused of purging e-mails from government computers. In court papers, prosecutors said they believed the aides - Leonard Luchko and Mark Eister - deleted computer documents at Fumo's direction to thwart the federal probe. They have pleaded not guilty.

Several lawyers involved in the case said they expected the current charges against Luchko and Eister to be merged with the Fumo indictment.

Luchko's lawyer, James C. Schwartzman, said yesterday the government was overreaching.

"I'm looking forward to reading the novel the government is going to come out with," Schwartzman said. "If I were a betting man, I think we're looking at a couple of hundred pages."

Another person who may face charges is Ruth Arnao, a former Fumo Senate aide and Citizens' Alliance executive director. Sources say prosecutors have also sent her a so-called target letter, warning that charges were likely. Her lawyer did not return a call yesterday.

Fumo has been indicted twice before - in 1973 over vote fraud, and in 1980 over putting ghost employees on the state payroll. Charges in the first case were quickly dropped; he was convicted in the second, but a judge later threw out the conviction.

This time, he is represented by the firm of Sprague & Sprague, among the most prominent in Philadelphia. One of his lawyers, Mark Sheppard, declined to comment yesterday.

Fumo or members of his inner circle serve on a web of government and quasi-government agencies - from the Delaware River Port Authority to the Pennsylvania Higher Education Assistance Agency - that control much of the city and state infrastructure, cultural institutions, and political innards.

Fumo will remain on the DRPA, higher education and other boards, spokesman Gary Tuma said.

Fumo took to the floor about 2 p.m. He called it "the most difficult speech I have ever had to deliver."

He ripped federal prosecutors for what he called a "years-long, one-sided campaign of scurrilous leaks to the media designed to undermine my office and attack my reputation."

"I am not happy about this, but in one sense I am relieved," Fumo said. "These years have not been easy on me or my family, my staff and my friends... . I will be able to meet the allegations head-on, instead of trying to answer the countless rumors that have attended this process."

In a move that caused a buzz in Harrisburg, both for its timing and its political impact, Fumo also announced he was stepping aside as the ranking Democrat on the Appropriations Committee, a powerful post he has held since 1985. State Sen. Gerald LaValle (D., Beaver) will take his place.

The news comes on the eve of Gov. Rendell's budget presentation - the traditional start of the busy season for the committee as it crafts the state's spending blueprint for the coming fiscal year.

Through a spokeswoman, Rendell called Fumo's decision to step down a "blow to Philadelphia and the surrounding region."

"Sen. Fumo has sharp knowledge of the budget process and the inner workings of the budget documents. His expertise will be missed," said Kate Philips, the governor's spokeswoman.

Under Senate rules, members indicted for a crime related to their office must temporarily relinquish leadership posts pending the outcome of the case.

Fumo presumably would also lose all the perks of the leadership post, including his large staff and huge discretionary account, which he has spent liberally on, among other things, a stable of consultants.

If acquitted, Fumo would get the position back. If convicted, he could be removed from office.

Anticipating being indicted by a federal grand jury, State Sen. Vincent J. Fumo yesterday announced on the Senate floor in Harrisburg that he is relinquishing his powerful position on the Senate Appropriations Committee as well as the extra salary and staff that go with it.

Tuesday, 02 December 2008

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