Categories: Courtroom Buzz
      Date: November 06, 2008
     Title: Former Fumo Political Consultant Details Fraud

The daily update from the Vince Fumo political corruption trial



 

 

 

 

 

 

 

 

By Ralph Cipriano

The happiest guy at the Vince Fumo political corruption trial today was a private investigator dismissed as a witness after the defense ran out of questions on cross-examination. Stephen Coulahan, who had testified for the prosecution about political surveillance done on behalf of Fumo, cheerfully announced "Have a great day" as he strolled out of court, drawing laughs from jurors and spectators.

 

 

Coulahan had briefly testified about two hours he spent in 2002, videotaping people who attended a political fundraiser at a bar owned by John "Johnny Doc" Dougherty, business manager of the International Brotherhood of Electrical Workers, Local 98, and a bitter enemy of Fumo’s.

Despite Coulahan’s good wishes, however, the defense table looked grim when the prosecution called its next witness. Howard J. Cain, a former political consultant and longtime Fumo confidante, has already pleaded guilty for failing to report $1.6 million earned under a contract with the state Senate Appropriations Committee that ran between 1997 and 2006, while Fumo was committee chairman.

As part of his plea agreement with the government, Cain, facing up to three years in jail, stipulated that he conspired with Fumo to bilk the state Senate by submitting bogus invoices to cover up political campaign work that Cain was doing on behalf of Fumo and his political allies, in violation of state law. Cain, who is testifying against his former patron in hopes of getting a reduced sentence, has also agreed to pay the IRS $411,303 plus interest.

Fumo, a state senator for three decades, is charged in a 139-count federal indictment with using state employees and contractors such as Cain as personal and political servants, allowing Fumo to lead a lavish lifestyle and enrich himself to the tune of $3.5 million. Fumo has pleaded not guilty to charges of fraud, conspiracy to obstruct justice and filing false tax returns.

"I met the senator for the first time probably in the fall of 1982," Cain told the jury. "I was the first non-South Philadelphian to work in the senator’s office."

Cain detailed how he worked on more than 60 campaigns for Fumo and political allies such as City Councilman Jim Kenney. The government displayed as exhibits monthly invoices for an annual salary that earned Cain as much as $88,000.

The contracts detailed various services, but never mentioned campaign work. When the prosecutor asked why, Cain replied, "because you couldn’t have the state pay for political campaigns."

Cain told the jury that the political work he did on behalf of the senator and his allies gave Fumo "political currency," allowing the senator to increase his power base and pile up political IOUs.

"I was the mint for the capital," Cain explained to the jury. He then gave lengthy explanations of the political campaigns he ran that were so technical, one juror dozed off.

Cain told the jury he tried to write his campaign materials as succinctly as possible.

"You don’t want to make people read too much," Cain said, prompting laughs.

Cain also told the jury that printing photos of the candidate posing with family members, kids, and senior citizens was often more useful than attempting to explain the candidate’s policies.

"Everyone’s got a special story," Cain said with a smirk.

The trial resumes Monday.