DiMasi Faces New Extortion Charge
Former Massachusetts House Speaker Eyed In Bid-Rigging Scheme
POSTED: 6:00 pm EDT October 13, 2009
UPDATED: 7:39 am EDT October 14, 2009
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BOSTON -- Former Massachusetts House Speaker Salvatore DiMasi is facing another extortion charge in connection with an alleged bid-rigging scheme. 
Earlier this year, DiMasi, who resigned in January, faced conspiracy and fraud charges in federal court.DiMasi's attorney said he was not surprised by the additional charges because a federal judge recently told federal prosecutors to file any new charges they had.They are now claiming that the former Massachusetts Speaker of the House had a secret involvement in the Genesis real estate firm which managed state office buildings.They said DiMasi used his position to win lucrative contracts for the company, including a $1.4 million deal to run the state's transportation building. A co-defendants attorney said the new charges are similar to what's been filed before."The allegations appear to read very ... identical to what they read before. Our position is the same, that, you know, he's not guilty and we look forward to our day in court," attorney Tom Drechsler said.DiMasi's attorney said his client will plead not guilty to the additional charges.DiMasi and his three associates were accused last June of securing two deals with software company Cognos. The contracts allegedly netted DiMasi's three friends $1.3 million in fees.The new extortion charge was unveiled in an indictment Tuesday and claims DiMasi accepted payments from Cognos knowing the payments were in exchange for his official actions helping the company.Software broker Joseph Lally, DiMasi's former accountant Richard Vitale and lobbyist Richard McDonough also face charges.According to the indictment, in return for pushing through the two contracts worth $20 million, the company funneled $57,000 to DiMasi.The government claims DiMasi arranged for the payments to go through a law associate. The attorney, who was a cooperating witness, would receive $5,000 a month from Cognos for so-called legal work for the company in Massachusetts, the indictment charges. He would then pass on $4,000, it was claimed, to DiMasi as a referral fee.
Earlier this year, DiMasi, who resigned in January, faced conspiracy and fraud charges in federal court.DiMasi's attorney said he was not surprised by the additional charges because a federal judge recently told federal prosecutors to file any new charges they had.They are now claiming that the former Massachusetts Speaker of the House had a secret involvement in the Genesis real estate firm which managed state office buildings.They said DiMasi used his position to win lucrative contracts for the company, including a $1.4 million deal to run the state's transportation building. A co-defendants attorney said the new charges are similar to what's been filed before."The allegations appear to read very ... identical to what they read before. Our position is the same, that, you know, he's not guilty and we look forward to our day in court," attorney Tom Drechsler said.DiMasi's attorney said his client will plead not guilty to the additional charges.DiMasi and his three associates were accused last June of securing two deals with software company Cognos. The contracts allegedly netted DiMasi's three friends $1.3 million in fees.The new extortion charge was unveiled in an indictment Tuesday and claims DiMasi accepted payments from Cognos knowing the payments were in exchange for his official actions helping the company.Software broker Joseph Lally, DiMasi's former accountant Richard Vitale and lobbyist Richard McDonough also face charges.According to the indictment, in return for pushing through the two contracts worth $20 million, the company funneled $57,000 to DiMasi.The government claims DiMasi arranged for the payments to go through a law associate. The attorney, who was a cooperating witness, would receive $5,000 a month from Cognos for so-called legal work for the company in Massachusetts, the indictment charges. He would then pass on $4,000, it was claimed, to DiMasi as a referral fee.
Previous Stories:
- June 8, 2009: DiMasi Faces Conspiracy, Fraud Charges
- June 3, 2009: DiMasi: I Never Violated Constituents' Trust
- June 3, 2009: Beacon Hill Shocked By DiMasi Charges
- June 2, 2009: Ex-Speaker Maintains Innocence After Arraignment
- January 27, 2009: DiMasi: I Am Retiring, Not Resigning
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