Subject:  Testimony starts in U.S. jury probe of Fieger |
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Date Posted: 01/26/06 6:49pm
Link to a photo from news article
Wednesday, January 25, 2006
Testimony starts in U.S. jury probe of Fieger
Feds are investigating whether lawyer secretly reimbursed employees for 2004 campaign gifts.
David Shepardson / The Detroit News original story page
DETROIT -- A federal grand jury will hear testimony this morning in the campaign finance probe into whether Southfield lawyer Geoffrey Fieger secretly reimbursed employees and associates for donations made to John Edwards' 2004 presidential campaign.
The broadly worded subpoenas, which called Fieger's employees, business associates and relatives to testify, seek records of all campaign donations made since Jan. 1, 1993, and copies of personal checks used to make the donations.
They further seek records of any bonuses received from Fieger since 1993.
The FBI is investigating more than $50,000 in donations made to Edwards, the former Democratic U.S. Senator and one-time presidential candidate. Many of those donations were made on the same day. FBI and IRS agents seized corporate records from Fieger's law firm during a Nov. 30 search.
On Jan. 12, The News reported that a federal grand jury has subpoenaed more than 20 lawyers, employees, relatives and associates of Fieger. The grand jury even subpoenaed a college student, who was the daughter of an associate in Fieger's law firm. She donated $2,000.
Prosecutors are investigating whether Fieger essentially funneled donations to Edwards by having his employees or associates donate and later repaying them.
Federal law caps individual donations to presidential candidates at $2,000 and bars employers from reimbursing employees for donations. They are further investigating whether Fieger took improper tax deductions.
Fieger said he gave "civic-minded" employees bonuses and predicted his actions will lead the grand jury to ultimately indict him, saying federal prosecutors are politically motivated.
The number of people subpoenaed is now believed to have grown to at least 30, although the U.S. Attorney's office has canceled some subpoenas, saying it needs further time to investigate.
Prosecutors have had little success persuading those subpoenaed to agree to debriefing sessions with the FBI.
Attorney Lawrence Donaldson of Mount Clemens said Tuesday the grand jury had subpoenaed Fieger's accountant. "We are working to cooperate," Donaldson said.
A lawyer for Fieger, Christopher Andreoff, declined to comment.
The acting U.S. attorney, Alan Gershel, who is overseeing the investigation, didn't return a phone call seeking comment.
U.S. Attorney Stephen J. Murphy has been recused from the case by the Justice Department.
You can reach David Shepardson at (313) 222-2028 or dshepardson@detnews.com.
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