"Case against DiMasi grows; Secret tie alleged to real estate firm" by Andrea Estes and Matt Viser, Globe Staff | October 14, 2009
Federal prosecutors yesterday added a new charge and fresh allegations to the corruption case against former House speaker Salvatore F. DiMasi, alleging that he had a secret financial interest in a real estate firm that managed a signature state office building.
So sad that it takes the FEDS to come in here and CLEAN IT UP!
According to a 38-page superseding indictment, DiMasi had a hidden stake in Genesis Management LLC, a property management company formed in January 2006 by DiMasi’s friend and former accountant Richard Vitale and two other partners. The indictment alleges that the partners agreed to pay DiMasi a share of the profits because he “could help Genesis get business.’’
So HOW MUCH are TAXPAYERS OUT this time?
The new indictment, handed down by a grand jury and filed in US District Court in Boston, adds further intrigue to a political corruption saga that has gripped Beacon Hill for months. DiMasi, for years one of the most powerful politicians in Massachusetts, was reelected speaker in January before resigning from the Legislature weeks later....
DiMasi was initially accused of pocketing $57,000 a Burlington software firm funneled to him through an intermediary, a longtime law associate. The software firm,
Yeah, paying $13 million for a computer software system that could have cost less than $3 million is all right because the winner was a close friend of the House speaker. And should the state be appropriating money for a "multimillion-dollar reconstruction" of golf courses because Sal plays there?
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Newly disclosed e-mails between Vitale and one of his partners describe how Genesis was formed. According to the indictment, the alleged scheme was cooked up by one of the partners, who urged Vitale to call him, “since I have an idea about an arrangement which will benefit you, me, [another partner] and Sal.’’
"Another partner?"
Must be a (rhymes with you-know-who) because of the anonymity.
Another e-mail included in the indictment describes how the profits would be divided among the four partners.... Genesis was awarded a three-year, $1.4 million contract to run the Transportation Building just a few months after the company was formed.
Yup, a STATE CONTRACT that SAL got KICKBACKS on!
The firm had also bid on contracts to run other public buildings, including the federal courthouse where DiMasi was indicted earlier this year and where the new charge was filed yesterday.
How APPROPRIATE!
Vitale had materials relating to Genesis delivered by courier to DiMasi at his State House office in February 2006, prosecutors say. DiMasi assigned a top, unnamed staff member “to help Genesis in its effort to acquire building management contracts for state, local, and federal government buildings,’’ according to the indictment.
The indictment does not say explicitly how DiMasi helped the company win contracts, if at all. It also does not say if DiMasi shared in any Genesis profits. During the three-year management contract for the Transportation Building, which has since expired, Genesis received a management fee of $70,000 a year and nearly $400,000 to cover the salaries of Genesis’ on-site property management staff. The company also had the authority to put out bids and award maintenance, operations, and repair work using an annual budget of more than $7 million....
Nice pile of TAXPAYER MONEY to PLAY WITH, huh?
DiMasi, Vitale, and two others - lobbyist Richard McDonough and Joseph Lally, an independent sales agent for Cognos - were originally charged with conspiracy in allegedly orchestrating a scheme that allowed DiMasi to pocket tens of thousands of dollars from Cognos while he was using his office to make sure the company won state contracts....
Didn't that used to be called INFLUENCE-PEDDLING?
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Also see: The Perils of One-Party Politics: Massachusetts' Democracy
The Perils of One-Party Politics: Speaker's Shoes
The Perils of One-Party Politics: The Problem