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Plea deal in Fiesta Bowl case

  Did you expect these crooked politicians to get anything more then a slap on the wrist???

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Plea deal in Fiesta Bowl case

Attorney: Junker to admit donation deal

by Craig Harris - Feb. 18, 2012 11:04 PM

The Republic | azcentral.com

John Junker, the Fiesta Bowl's former chief executive, is expected to plead guilty Tuesday to a felony for his role in a fraudulent political campaign-contribution scheme that cost him his job and rocked the post-season college football world.

Junker will agree to a plea bargain with the Arizona attorney general in which he will admit to soliciting campaign contributions from Fiesta Bowl employees who were later reimbursed with bowl funds, defense attorney Stephen Dichter told The Arizona Republic on Saturday.

Such reimbursements are illegal under state law.

Dichter also said Junker has negotiated a plea deal with the U.S. Attorney's Office and he expects to enter a guilty plea to a single federal felony charge that "arises from the same facts."

A judge must approve a plea bargain for it to take effect.

Junker has not been charged in U.S. District Court and a hearing in the federal case has not been scheduled.

The plea deals were struck before any formal indictments were issued, which is uncommon.

The plea agreements come more than two years after The Republic reported in December 2009 that five current and former employees said the bowl had reimbursed staff members since 2000 for making contributions to candidates friendly to the bowl. That news report ultimately led to criminal investigations by the state Attorney General's and U.S. Attorney's offices.

The contributions went to local and state politicians who helped the Fiesta Bowl obtain financial subsidies, and to members of Congress who supported the Bowl Championship Series, a fraternity of top bowl games including the Fiesta Bowl.

There is no indication any of the politicians who received the funds were aware the bowl was reimbursing contributors, and no politicians have been charged.

Dichter said the reimbursed contributions over a nine-year period totaled about $48,000, a figure close to previous reports.

Junker adamantly denied the newspaper's findings at the time.

His plea bargains could result in both fines and prison sentences.

Precise details of the plea bargains have not been disclosed, except that Dichter said Junker would plead guilty to a Class 4 felony in the state case. A conviction on that charge has a presumptive sentence of 2 ½ years, but there is a possibility of probation.

"Pursuant to plea agreements with the prosecuting agencies involved, Mr. Junker will continue his ongoing cooperation with them and their agents, as requested. No additional charges arising out of Mr. Junker's long tenure with the Fiesta Bowl will be brought against him by either the State of Arizona or the United States Attorney for the District of Arizona," Dichter said in a written statement to The Republic.

In addition to Junker, others with ties to the Fiesta Bowl will be the subject of a court hearing at 1:30 p.m. Tuesday before Maricopa County Superior Court Judge Douglas Rayes. The court issued notice late Friday of a hearing involving the filing of direct complaints in the Fiesta Bowl investigation.

The Attorney General's Office on Saturday confirmed Tuesday's hearing involving Junker and others associated with bowl. The identities of the other individuals and their roles, including whether they still worked at the bowl, were not disclosed.

Amy Rezzonico, a spokeswoman for Attorney General Tom Horne, said more details will be released Tuesday.

The U.S. Attorney's Office on Saturday would neither confirm nor deny it had reached a separate deal with Junker.

Fiesta Bowl Chairman Duane Woods said Saturday the bowl would not comment on Junker. He said he was unaware if any current or former employees had reached plea deals.

In November, a federal grand jury indicted Natalie Wisneski, the bowl's former chief operating officer. She was accused of making campaign contributions in the name of another, causing false statements to be made to the Federal Election Commission, filing false tax returns and conspiracy. Seven of the charges are felonies. Her trial in U.S. District Court is scheduled for March 6, but her attorneys have asked that it be postponed to give them more time to prepare a defense.

In that indictment, prosecutors identified an "Officer A" of the Fiesta Bowl and a "Lobbyist C" as being involved with Wisneski in many of the conspiracy acts. The actions of the officer and lobbyist closely match actions taken by Junker and Gary Husk, the bowl's former lobbyist, in an earlier report released by the Fiesta Bowl. Sources close to the matter have told The Republic they believe Junker is the officer and Husk is the lobbyist.

The state and FBI also are investigating Husk's role. Current and former employees, and an independent investigation commissioned by the Fiesta Bowl, have said Husk participated in and coordinated the reimbursement scheme. Husk, a former prosecutor, has denied any wrongdoing and has not been charged with any crimes.

Plea agreements typically include a requirement that the defendant assist the investigation of related cases.

"There is one constant that exists with John Junker: He has always looked out for John Junker," said former Maricopa County Attorney Rick Romley, who now represents Husk. "He is so self-serving and he financially benefited himself. Now it looks like he will blame others to minimize his role. He was the president and CEO of the Fiesta Bowl."

On Jan. 27, the Attorney General's Office and FBI raided Husk's central Phoenix office.

The Republic sought the search warrant through a public records request, but it was sealed at the behest of the Attorney General's Office. The Attorney General's Office told the newspaper the records were not available, citing a grand jury investigation.

Junker, board members and Husk initially disputed The Republic's 2009 story, which also detailed large payments the bowl made to Husk's lobbying firm. Despite those public denials, the bowl hired Grant Woods, a former attorney general and friend of Husk's, to investigate the claims.

After less than a week of work, the bowl said Woods found "no credible evidence that the bowl's management engaged in any type of illegal or unethical conduct." Grant Woods, who was paid $55,000 and gave $20,000 of his fee to Husk, has since said publicly that he "failed to get the job done at the Fiesta Bowl."

Husk from 1991 to 1994 was chief counsel to Grant Woods, who was attorney general at the time. Husk also was a deputy Pinal County attorney and an assistant U.S. Attorney.

Husk and Woods are subjects of a state Bar investigation as a result of their Fiesta Bowl activities. There is no indication Grant Woods, who is no relation to the Fiesta Bowl chairman, is under criminal investigation.

The Republic's 2009 story initially spurred the Secretary of State's Office, which enforces campaign-finance laws, to investigate the bowl. The case was turned over to the state attorney general in July 2010.

In September 2010, Junker's former assistant told Duane Woods, the Fiesta Bowl board chairman, that the newspaper's findings were true and that a cover-up had occurred. The bowl then hired Minnesota-based Robins, Kaplan, Miller & Ciresi to conduct a new investigation.

The investigators identified 11 individuals who said the bowl repaid them and seven of their spouses for political contributions, with most going to Republican candidates.

The new investigation also found numerous instances of financial mismanagement, including the bowl paying for Junker and two other former officers to visit strip clubs. The report raised questions about a lack of board oversight.

The law firm detailed the problems in a 276-page public report, which was turned over to state and federal prosecutors last spring, along with supporting documents not made public.

The Fiesta Bowl's report resulted in the firing of Junker, who was paid $673,888 a year, and forced the resignations of Wisneski and Jay Fields, the bowl's former vice president of marketing.

Despite accusations in the report that Junker used bowl funds for questionable spending, he will not be charged with any crimes related to spending at the Fiesta Bowl under the plea agreement, according to Dichter.

Since the release of the report, the bowl has implemented new ethical standards and financial controls, and no longer employs lobbyists.

John Zidich, CEO and publisher of The Arizona Republic, is a former member of the Fiesta Bowl's board of directors and was on the bowl's five-member executive committee from January 2010 to April 2011. The Republic is a Fiesta Bowl advertising sponsor.

 

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