Three Indicted in Rowland Corruption Case

HARTFORD, Conn. — A one-time top aide to former Gov. John G. Rowland (search) was indicted Thursday along with a major construction contractor on charges they operated a criminal organization out of the governor's office. The 15-count indictment accuses former co-chief of staff Peter N. Ellef and contractor William Tomasso (search) of conspiring to steer state contracts from 1997 to 2003. The racketeering and several other charges each carry up to 20 years in prison. Tomasso is accused of giving Ellef more than $1 million worth of gold, cash, trips, meals and vacations. In return, Ellef allegedly helped steer tens of millions of dollars in contracts to Tomasso and his companies. The indictment does not name Rowland, but says the scheme included at least five people -- only four of whom are named. On one occasion "a former high level state official" received a nearly $300 bottle of champagne, according to the indictment. "It is important to read the caption. It lists all the individuals charged. My client's name is not listed in the caption, nor should it be," said Rowland's attorney, William F. Dow III. Many of the deals outlined in the indictment surfaced in the past year, forcing Rowland to admit he lied about gifts he received from state contractors, including Tomasso.

He resigned July 1 amid the investigation and a legislative impeachment inquiry. "The allegations in this indictment are extremely serious, as they involve alleged abuse within highest levels of the government of the state of Connecticut," said Deputy U.S. Attorney John H. Durham. Attorneys for the three men charged said their clients will plead not guilty when they are appear in federal court Friday. "The Tomasso parties emphatically deny those charges and they welcome a trial at which the other side of this story can finally be revealed," attorney Thomas Murphy said. Tomasso companies performed free work on Rowland's summer cottage, treated him to cut-rate vacations and received millions of dollars in state contracts, and investigators want to know whether those gifts amounted to bribes. Rowland has said he did nothing wrong. The indictment also said the governor's office was the site of an attempted extortion in which Ellef and Tomasso tried to shake down the CEO of an unidentified New Jersey company.

http://www.foxnews.com/story/0,2933,133368,00.html

Here are some of the key developments in the investigation of Gov. John G. Rowland's administration:

_ September 1997: Peter N. Ellef becomes co-chief of staff to Gov. John G. Rowland. Rowland buys cottage on Bantam Lake in Litchfield and some renovations begin.

_ Nov. 22-24, 1998: Ellef and his deputy, Lawrence Alibozek, travel to Ohio to tour a juvenile detention center expected to be the model for a Connecticut project. Construction contractor William Tomasso of the Tomasso group secretly comes along.

_ 1999: Tomasso's Ohio experience gives him a leg up on the $57 million Juvenile Training School contract. Days before a final vote, Ellef correctly predicts Tomasso will win the contract.

_ Aug. 9, 1999: Electric subcontractor Kurt Claywell, who has given Rowland gifts of Cuban cigars and Dom Perignon, asks Rowland to get him onto the training school contract. Claywell says Ellef gets him the job.

_ July 7, 1999: Alibozek forms a company, TREA LLC. His partners include Ellef and Tomasso. Investigators say the company was used to funnel payoffs to Alibozek and others in exchange for steering state contracts.

_ March 2002: Ellef resigns amid scandal related to state's failed energy deal with Enron.

_ March 2003: Alibozek pleads guilty to accepting payoffs from state contractors.

_ November: Rowland predicts the federal investigation will not reach him: "Not only am I confident they aren't going to touch me personally, but I would encourage everyone to cooperate."

_ Dec. 2: Rowland tells reporters he paid for improvements on Litchfield cottage.

_ Dec. 12: Rowland admits that state contractors and friends helped pay for some renovations.

_ Jan. 6, 2004: Investigators subpoena Rowland for documents regarding improvements at his Litchfield cottage, personal investments, tax returns and gifts.

_ Jan. 7: Rowland apologizes in speech carried statewide on radio and television.

_ Jan. 9: Rowland's status changes from "witness" to "subject" in federal probe.

_ Jan. 22: The 10-member House Select Committee of Inquiry is appointed to considering recommending Rowland's impeachment.

_ June 8: Impeachment hearings begin. Federal prosecutors that week notify Ellef to expect an indictment this summer.

_ June 21: Rowland announces his resignation in a news conference at the governor's residence.

_ Sept. 23: Federal prosecutors announce a 15-count indictment accusing Rowland's former co-chief of staff Peter N. Ellef, his son Peter N. Ellef II and contractor William Tomasso of operating a corrupt criminal organization out of the governor's office from 1997 to 2003. Prosecutors also targeted two Tomasso companies, Tomasso Brothers Inc. and Tunxis Management, and the younger Ellef's landscaping business, LF Design LLC. Rowland was not charged in the indictment.

A look at the charges outlined Thursday in an indictment against former Gov. John G. Rowland's co-chief of staff, Peter N. Ellef; contractor William A. Tomasso; Ellef's son, Peter N. Ellef II; and companies Tomasso Brothers Inc., Tunxis Management Co. and LF Design, LLC.

- COUNT 1: Racketeering conspiracy

As co-chief of staff to former Gov. John G. Rowland, Ellef entered into a racketeering conspiracy with Tomasso, Ellef II and the three companies. The conspiracy included bribery, extortion, money laundering and mail fraud.

- COUNT 2: Racketeering

The elder Ellef used his position in government to steer contracts toward Tomasso. The elder Ellef influenced several projects, including the construction of the Connecticut Juvenile Training School and the cleanup of the Connecticut Lottery headquarters after the shooting deaths of five workers. Ellef and Tomasso allegedly shook down a New Jersey chief executive officer in the governor's office.

- COUNT 3 Conspiracy to commit theft/bribery concerning programs receiving federal funds

Ellef, with help from his son and the companies, solicited and accepted bribes from Tomasso. Tomasso and his companies gave and offered those bribes in connection with the rewarding of state contracts.

- COUNTS 4-5: Mail Fraud/Theft of Honest Services

The parties used the mail to execute their scheme, mailing invoices for LF Design.

- COUNT 6: Mail Fraud/Theft of Honest Services

The parties used the mail to execute their scheme, causing the state comptroller's office to mail a $94,491 check to Tunxis.

- COUNTS 7-8: Mail Fraud/Theft of Honest Services

The parties used the mail to execute their scheme, causing the state Department of Public Works to mail more than $3.9 million to Tomasso Brothers Inc.

- COUNTS 9-11:Wire Fraud/Theft of Honest Services

The parties used fax machines to execute their scheme, faxing letters from Tomasso to other companies.

- COUNT 12: Attempted Extortion

The elder Ellef, Tomasso and TBI Inc. attempted to extort a New Jersey CEO in the governor's office.

- COUNT 13: Conspiracy to Commit Extortion

The elder Ellef, Tomasso and TBI Inc. entered into a conspiracy to commit the extortion in Count 12.

- COUNT 14: Conspiracy To Money Launder

The parties agreed to use business credit cards to disguise the money generated by the scheme.

- COUNT 15: Conspiracy to Defraud the IRS

The parties conspired to obstruct the Internal Revenue Service's ability to assess income taxes.

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