Saturday, August 23, 2014

Slow Saturday Special: McDonnell is a Star Witness

Related: McDonnell Speaks in His Own Defense

"Former governor of Va. testifies on loans from CEO" by Alan Suderman | Associated Press   August 23, 2014

RICHMOND — Former Virginia governor Bob McDonnell said Friday that there was nothing inappropriate about accepting gifts and loans from a wealthy vitamin entrepreneur who had asked nothing of him other than routine political courtesies and calling his father on his 80th birthday.

However, McDonnell acknowledged during his third day on the witness stand that he should have disclosed some of the gifts he received from former Star Scientific Inc. chief executive Jonnie Williams.

McDonnell detailed some of the money he received from Williams, saying he was initially unaware that Williams sent a $50,000 check after a potential deal involving a loan of stock failed to materialize.

But the cash loan was what he really wanted to plug an operating shortfall at two Virginia Beach vacation rental homes he owns with his sister, he said.

In May 2012, McDonnell texted Williams to ask for an additional $20,000 loan because the properties were still in the red. He said Williams had told him if he needed more money, he should just ask.

‘‘I considered him to be a friend at that point,’’ McDonnell said, explaining why he thought it was appropriate to ask for the loan.

McDonnell and his wife, Maureen, are charged with accepting more than $165,000 in gifts, trips, and loans from Williams in exchange for promoting his firm’s products, particularly the tobacco-derived anti-inflammatory Anatabloc.

Williams, testifying under immunity, said earlier in the trial that he was not friends with the McDonnells and that he spent lavishly on them and their children solely to buy their influence as he sought state-backed research for Anatabloc.

‘‘I liked the guy,’’ McDonnell said, adding that he wanted Star Scientific to prosper just like any other business.

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