Tuesday, April 3, 2012

Cahill, Staffers Indicted On Fraud, Corruption Charges

BOSTON – Former State Treasurer Timothy P. Cahill has been indicted on public corruption charges for his alleged role in orchestrating an advertising campaign for the State Lottery, funded with taxpayer dollars, that was intended to assist his 2010 campaign for governor, Attorney General Martha Coakley announced Monday.
Timothy P. Cahill, age 53, of Quincy, was indicted this morning by a Suffolk County Grand Jury on one count of violating the State Ethics Law, specifically use of official position to obtain unwarranted privilege, and conspiracy to violate the State Ethics Law, Coakley said in a prepared statement released Monday, April 2.
Cahill was also indicted on one count of procurement fraud and one count of conspiracy to commit procurement fraud.
Scott Campbell, age 41, of Quincy, Cahill’s former chief of staff at the Treasury and former campaign manager, was also indicted on similar charges.
Campbell was indicted on one count each of conspiracy to violate the State Ethics Law and procurement fraud, and conspiracy to commit procurement fraud.
In addition, Alfred J. Grazioso, Jr., age 57, of Quincy, the Lottery’s former chief of staff, was also indicted today on two counts of obstruction of justice.
“We allege that Treasurer Cahill abused his position to launch a television advertising campaign at the Lottery that was carefully coordinated to promote his own campaign for governor,” Coakley said.
“This was more than a million dollars in taxpayer money that was intended to benefit the public and the Lottery. We allege that the timing, amount budgeted, and coordinated messages of the Lottery ads all point to a decision made by Treasurer Cahill to abuse his position of trust and put his own political ambitions over the best interests of the taxpayers he was elected to represent,” Coakley said.
The indictments follow a comprehensive investigation by the AG’s Office that examined the timing and reason for Lottery TV and radio ads that began airing in September 2010. When the AG’s office began its investigation in October 2010, it requested, and the Lottery agreed, to immediately take down the ads pending the completion of the investigation.
Dozens of witnesses were interviewed and thousands of electronic communications examined to determine the purpose behind the $1.5 million ad campaign.
As a result of that investigation, the AG’s office alleges that a series of advertisements were procured by Cahill, with Campbell’s assistance, for the purpose of aiding Cahill’s struggling campaign for governor, rather than to simply boost the Lottery’s image and sales.
The AG’s Office alleges that a series of Lottery “permission” ads were approved at Cahill’s direction and with Campbell’s assistance, even though sales at the Lottery were already on the way up after a brief slow period in July 2010.

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