Subject:  Lawyer: Feds tried to coerce information |
Author:
Chris
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Date Posted: 04/28/08 6:51pm
In reply to:
Chris
's message, "Lawyer at testifies he was not promised reimbursement" on 04/28/08 6:49pm
Lawyer at Fieger's law firm: Feds tried to coerce information
By David Ashenfelter • Free Press Staff Writer • April 28, 2008
A lawyer in Geoffrey Fieger’s law firm testified today that federal agents accused him of committing a felony and used heavy-handed tactics when they showed up on his doorstep in November 2005 looking for information about reimbursements the firm paid him for contributing to John Edwards’ 2004 presidential campaign.
Paul Broschay, a former Detroit and Trenton cop, said agents came to his home under the guise of serving a grand jury subpoena, but proceeded to play “good cop/bad cop” with him in hopes of getting him to say something damaging about Fieger and law partner Vernon (Ven) Johnson. Both men are on trial in U.S. District Court in Detroit for illegally reimbursing 64 employees, friends, family members and vendors to contribute $127,000 to Edwards’ ill-fated campaign.
Broschay said he tried to cooperate at first, but asked the agents to leave after his daughter, then a Michigan State University student, called home hysterical after agents confronted her in her apartment.
“It kinda pissed me off,” Broschay testified, adding that agents had used a subpoena “to come in and work me over.”
“I could have slammed the door shut that night or later, but felt it was in the best interests of my wife and kids to cooperate,” said Broschay, who testified under a grant of immunity from federal prosecutors. He said he didn’t want his wife of children to be called before a grand jury.
Under questioning from Justice Department trial lawyer Kendall Day, Broschay admitted contributing $2,000 for himself, $2,000 on behalf of his wife, and $2,000 on behalf of each of his two children, to the Edwards’ campaign in 2003 – not because he was forced to do so, but he identified with Edwards, a former plaintiffs’ lawyer. He also acknowledged that the law firm reimbursed him.
Broschay said he signed his wife’s name to her contribution – with her approval – and belatedly told his children that he had contributed on their behalf. He said both children were “ecstatic” about giving.
He said didn’t know he would be reimbursed and had no idea it might be illegal.
Under cross-examination by defense lawyers Steve Fishman and Gerry Spence, Broschay complained about the amount of resources the government devoted to the probe – 80 agents swarmed Fieger’s office and the homes of employees in the darkness of Nov. 30, 2005 – and the havoc it wreaked on the law firm’s operations.
He said Fieger never asked him to do anything illegal.
Earlier today, an independent bookkeeper who processed payroll for the firm testified that it kept “transparent” records about the reimbursements. Had the firm tried to conceal the reimbursements, Kathleen Pfeiffer of Paychex, Inc., testified, it could have reimbursed employees with cash paid under the table.
She also testified that the firm paid $27,480 in state and federal taxes and Social Security and Medicare withholding on the $127,000 worth of reimbursements, which were paid in the form of bonuses.
After jurors retired for the day, Assistant U.S. Attorney Lynn Helland complained to Borman – to little avail – that Fishman and Spence are putting the government on trial for its conduct in the case.
Although Borman has ruled that reimbursing employees for contributions is illegal under federal law, he has said prosecutors must prove that Fieger and Johnson “knowingly and willfully” broke the law. Their lawyers say they didn’t know they were doing anything illegal.
Testimony resumes Tuesday.
Contact DAVID ASHENFELTER at dashenfelter@freepress.com.
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