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Former Virginia Governor Bob McDonnell and Star Scientific
In 2014, a jury found former Virginia Governor Bob McDonnell (R) guilty of conspiring to take cash and gifts in exchange for promoting a dietary supplement.
Overview
Investigations into whether McDonnell and his family accepted gifts and cash from by Star Scientific in exchange for promoting a dietary supplement began in April 2013. McDonnell repaid several loans made to him by the company after several state officials called for his resignation in July 2013.
The former governor was indicted in January 2014 just days after the end of his final term. He was convicted on 11 counts related to charges of conspiracy in September of that year. His initial appeal to the Fourth Circuit Court of Appeals was unsuccessful; however, the Supreme Court agreed to hear the case in October 2015.
On June 27, 2016, the Supreme Court unanimously agreed with McDonnell's assertion that the jury was given incorrect instructions regarding what constituted an "official action," and accordingly vacated the charges against the former governor. The court further provided a definition for an "official act;" then remanded the case back to prosecutors to consider whether to dismiss the charges under the new definition, or send the case back to prosecutors for a possible re-trial. The Justice Department announced on September 8, 2016, that they would not re-try the case.
Background
FBI investigation
In April 2013, reports surfaced that the FBI was investigating whether then-Virginia Governor Bob McDonnell violated any laws by allowing Star Scientific to pay $15,000 for food and flowers at his daughter's 2011 wedding, which was held at the governor's mansion. When asked why he did not report the spending on his finance reports, McDonnell said the donation was a gift to his daughter, and per state law only gifts to officeholders have to be reported.[1]
The investigation of McDonnell was an offshoot of an investigation of securities transactions involving Star Scientific. The company, run by Jonnie R. Williams Sr., produced a dietary supplement called Anatabloc. Williams and Star Scientific donated over $120,000 to McDonnell and his political action committee and afforded McDonnell other perks such as getaways to Williams' lake house.[2]
Meanwhile, McDonnell and his wife promoted Anatabloc and other products made by the company. According to Todd Schneider, former chef to the governor, McDonnell "[promoted] Star Scientific products, including the introduction of Anatabloc (a food supplement) to MCV doctors at a lunch [he] cooked at the mansion on Aug. 30, 2012."[1] While the FBI was investigating McDonnell, Schneider was charged with stealing food from the governor's mansion. He pleaded no contest to two misdemeanor counts of embezzling food. Under Schneider’s plea deal, he served no jail time and was ordered to pay the state $2,300 in restitution.[3] Additionally, First Lady Maureen McDonnell spoke in support of Anatabloc at a seminar for scientists and investors in Florida three days before her daughter's wedding.[1]
Attorney general investigation
In May 2013, Attorney General Ken Cuccinelli (R), who also has ties to Williams, appointed the Richmond commonwealth's attorney, Mike Herring, to act as special prosecutor in the investigation.[4]
In late June 2013, reports surfaced that Williams had purchased a $6,500 Rolex watch for McDonnell, which the governor had not disclosed in his financial filings. Williams presented the gift in August 2011, just weeks after meeting with a state health official to discuss his company's products. The meeting was arranged by McDonnell's wife, Maureen, who suggested Williams purchase a Rolex for her to give to her husband.[5]
Shortly thereafter, sources speaking on condition of anonymity said that in 2012, Williams gave $70,000 to a corporation owned by McDonnell and his sister. That money went from a trust owned by Williams to MoBo Real Estate Parters, formed in 2005, and was not disclosed by McDonnell as a gift or loan. Additionally, Williams gave a $50,000 check to the governor's wife in 2011.[6]
In late August, more gifts from Williams to McDonnell became public, including winning a fashion tour of New York at a charity auction for the governor's wife, paying to fly the governor and his wife to Cape Cod over Labor Day weekend in 2012, and allowing McDonnell, his sons, and staff to play golf and purchase gear at exclusive Richmond-area country clubs. Those close to the investigation said McDonnell was aware of these activities, even though the governor's lawyers have argued he should not be charged with any crimes partially because he was unaware of these gifts.[7]
Calls for resignation
On July 2, 2013, state Sen. J. Chapman Petersen (D) called for McDonnell to explain and return the gifts in question or resign. In a letter to the governor, Petersen said, “In return, it appears you allowed this person to use the Governor’s Mansion and the Governor’s Office for the purpose of giving unique credibility to his company. That is unacceptable.” In response, McDonnell spokesman Tucker Martin called the letter "blatantly political" and "not unexpected."[8]
Sen. Barbara Favola (D) went further on July 10, demanding McDonnell's resignation. “I don’t see the purpose of the governor continuing in office when the trust between his office and Virginians has been so eroded. When you’ve broken that ethical bond, I don’t know to what purpose he can really execute the activities of his office effectively at this point,” she stated.[9]
Del. Scott Surovell (D) added his voice on July 14, saying, “The legislative branch has a sworn independent responsibility to address corruption and malfeasance when we see them independent of criminal investigations...If he has not resigned by the end of this week, then other measures should be on the table.”[10]
On August 20, McDonnell made it clear that he would not leave office early, stating, "I’m going to be governor of Virginia for another 4½ months."[11] McDonnell left office at the scheduled end of his term in January 2014.
Apologizes, repays loans
On July 23, 2013, McDonnell announced that he had repaid more than $120,000 in loans to Williams, offering an apology via Twitter: “I am deeply sorry for the embarrassment certain members of my family and I brought upon my beloved Virginia and her citizens. I want you to know that I broke no laws and that I am committed to regaining your sacred trust and confidence. I hope today’s action is another step toward that end.” The repayment was for the $50,000 loan made to McDonnell’s wife and the $70,000 loan to the company McDonnell co-owns.[12] McDonnell’s statement did not address any of the gifts from Williams and did not silence his critics, who continue to argue he should step down.
Indictment, trial, and appeals
On January 21, 2014, McDonnell and his wife, Maureen McDonnell, were indicted on 14 counts of fraud and conspiracy related to the Star Scientific controversies.[13][14]
"I deeply regret accepting legal gifts and loans from Mr. Williams, all of which have been repaid with interest, and I have apologized for my poor judgment for which I take full responsibility. However, I repeat emphatically that I did nothing illegal for Mr. Williams in exchange for what I believed was his personal generosity and friendship," McDonnell said in a statement to The Washington Post.[14]
The federal indictment described the gifts received from Williams and accused the McDonnells of using their position of power for their own gain. “The defendants participated in a scheme to use Robert McDonnell’s official position as the governor of Virginia to enrich the defendants and their family members by soliciting and obtaining payments, loans, gifts, and other things of value from [Williams] and Star Scientific,” the prosecutors claimed. According to the indictment, the governor's office was also allegedly “performing official actions on an as-needed basis, as opportunities arose, to legitimize, promote, and obtain research studies for Star Scientific’s products, including Anatabloc."[13]
Bob and Maureen McDonnell were charged with:
- One count of conspiracy to commit honest-services wire fraud
- Three counts of honest-services wire fraud
- One count of conspiracy to obtain property under color of official right
- Six counts of obtaining property under color of official right
- One count of making false statements to a federal credit union
Bob McDonnell was also charged with making a false statement to a financial institution while Maureen was also charged with one count of obstruction of an official proceeding.[15]
The full text of the 43-page indictment can be found here.[16]
Course of the trial
The McDonnells' trial began on July 29, 2014. In the defense's opening statement, they indicated that their strategy was to show that Bob and Maureen had drifted apart in their marriage and that they could not have conspired as the prosecution charged.[17] The first witness called by the prosecution was the head of Star Scientific, Jonnie R. Williams Sr., who had allegedly provided $165,000 worth of goods and cash to the McDonnells to promote Star Scientific's interests. These transactions were the basis for the indictments against the McDonnells and Williams' testimony was very important to the prosecution's case.[18][19] Williams' testimony, which centered around his descriptions of transactions with the McDonnells, was followed up by supporting testimony from his assistant, Jerri Fulkerson.[19]
On August 20, 2014, Bob McDonnell himself took the stand. His testimony supported the defense's claims that Bob and Maureen McDonnell's marriage was "a mess."[20] He testified that, as early as the night he won the governorship, Maureen was not happy with her role as first lady. With the prosecution trying to connect Bob McDonnell with Star Scientific, McDonnell rejected their claims, testifying that he had done less for Star Scientific than for other Virginia companies and that all his support had been a routine part of supporting Virginia businesses in general.
Conviction, sentencing and appeals
On September 4, 2014, the McDonnells were convicted on conspiracy charges after three days of deliberations by the jury. Bob McDonnell was convicted on 11 counts related to charges of conspiracy, while Maureen McDonnell was convicted on eight conspiracy charges and a charge of obstruction of official proceeding. Defense attorney Henry Asbil stated in a press conference following the jury's decision that the couple would appeal the verdict.[21][22] The appeal focused on the definition of an "official act" and the judge's "instructions to the jury on what constitutes an official act."[23] The defense argued that Bob McDonnell's support for Star Scientific was routine and that the verdict resulted from an overly broad conception of "official acts."
McDonnell was sentenced to 24 months in federal prison by federal judge James Spencer on January 6, 2015. Spencer also ordered 24 months of court-administered supervision. McDonnell argued that while his time in the governor's mansion was "unbalanced," he would recommit his life to public service after the completion of his sentence. Spencer noted that a flood of sympathetic letters and testimony during sentencing lessened the length of the sentence, though he also said that "a price must be paid." McDonnell was ordered to turn himself into custody by February 9, 2015.[24] On February 20, Maureen McDonnell was sentenced to one year and one day in federal prison by Judge Spencer.[25]
Appeal to the Fourth Circuit Court of Appeals
McDonnell subsequently appealed his conviction, and a three-judge panel from the United States Court of Appeals for the 4th Circuit upheld his convictions unanimously in July 2015. The panel's decision was appealed; but on August 11, 2015, the full court declined to review the case. Eight of the full 15-member court voted against a rehearing of the case, while the remaining seven did not participate after disqualifying themselves. McDonnell's appeal contended that he was convicted under a definition of bribery that was overly broad and that his lawyers were not given adequate time to question potential jurors about the influence the media coverage of the case had on their opinions. The final avenue left open to McDonnell would be an appeal to the U.S. Supreme Court.[26]
Supreme Court appeal and trial
On October 13, 2015, McDonnell asked the U.S. Supreme Court to review his conviction on corruption charges. In the 36-page filing, McDonnell's defense team argued that none of the former governor's actions constituted "official action" and that McDonnell was only guilty of granting access to a donor, which is not prohibited. McDonnell's attorneys also argued that jurors were given incorrect instructions on the definition of "official action". McDonnell has remained free while appealing his conviction.[27] Eleven groups, including state attorneys general, governors and other high-profile officials, filed amicus briefs supporting McConnell's request for Supreme Court review.[28]
On April 27, 2016, the U.S. Supreme Court heard oral arguments in McDonnell v. United States. The court considered whether “official action” is limited to the actual exercise, the threatened exercise, pressuring others to exercise governmental power, or some combination of the three for the purposes of prosecution under federal bribery and fraud statutes and, if “official action” is not limited in this manner, whether the statutes under review are unconstitutional. The case came on a writ of certiorari to the United States Court of Appeals for the 4th Circuit.[29]
Supreme Court decision
On June 27, 2016, the Supreme Court unanimously agreed with McDonnell's assertion that the jury was given incorrect instructions regarding what constituted an "official action," and accordingly vacated the charges against the former governor. Writing for a unanimous court, Chief Justice John Roberts noted that the court granted certiorari in the case "to clarify the meaning of 'official act'" under federal bribery statutes. Following an extensive review of the factual background of the case, Chief Justice Roberts rejected the government's definition of official act under 18 U.S.C. § 201(a)(3), opting for a "more bounded interpretation of official act".[30] Roberts defined an official act thusly:[30]
| “ | In sum, an 'official act' is a decision or action on a 'question, matter, cause, suit, proceeding or controversy.' The 'question, matter, cause, suit, proceeding or controversy' must involve a formal exercise of governmental power that is similar in nature to a lawsuit before a court, a determination before an agency, or a hearing before a committee. It must also be something specific and focused that is 'pending' or 'may by law be brought' before a public official. To qualify as an 'official act,' the public official must make a decision or take an action on that 'question, matter, cause, suit, proceeding or controversy,' or agree to do so. That decision or action may include using his official position to exert pressure on another official to perform an 'official act,' or to advise another official, knowing or intending that such advice will form the basis for an 'official act' by another official. Setting up a meeting, talking to another official, or organizing an event (or agreeing to do so)—without more—does not fit that definition of 'official act.'[31] | ” |
The case was remanded to the Fourth Circuit Court of Appeals to consider McDonnell's conviction in light of the Supreme Court's definition of an "official act." The court had the option to dismiss the case or allow prosecutors to re-try the case under the new, narrower definition.[32]
The U.S. Justice Department announced on September 8, 2016, that prosecutors would not re-try the case. "After carefully considering the Supreme Court’s recent decision and the principles of federal prosecution, we have made the decision not to pursue the case further," said a statement from the department.[33]
See also
Additional reading
External links
Footnotes
- ↑ 1.0 1.1 1.2 The Atlantic Wire, "The Governor, His Wife, Their Cook, and the FBI," April 30, 2013
- ↑ The Washington Post, "FBI looking into relationship between McDonnells, donor," April 29, 2013
- ↑ The Washington Post, “Former chef pleads no contest to stealing food from Va. governor’s mansion,” September 18, 2013
- ↑ The New York Times, "Special Prosecutor Appointed in Investigation of Virginia Governor," May 22, 2013
- ↑ The Washington Post, "Donor bought Rolex watch for Virginia Gov. McDonnell, people familiar with gift say," June 25, 2013
- ↑ The Washington Post, "McDonnell’s corporation, wife allegedly benefited from $120,000 more from donor," July 9, 2013
- ↑ The Washington Post, "Gov. McDonnell described as aware of gifts from Virginia businessman," August 31, 2013
- ↑ The Washington Post, "Virginia Democrat to Gov. McDonnell: Explain gifts or resign," July 2, 2013
- ↑ The Washington Post, "State Sen. Barbara Favola calls for Gov. McDonnell’s resignation," July 10, 2013
- ↑ The Washington Post, "Del. Scott Surovell says Virginia Gov. McDonnell should resign, or be forced out," July 14, 2013
- ↑ The Washington Post, "McDonnell says he will serve out term as Virginia governor," August 20, 2013
- ↑ ‘’The Washington Post,’’ “McDonnell apologizes, repays loans,” July 23, 2013
- ↑ 13.0 13.1 Politico, Bob McDonnell and wife indicted in gift scandal, January 21, 2014
- ↑ 14.0 14.1 NBC Politics, Former Virginia governor, wife charged in gift scandal, January 21, 2014
- ↑ Times Dispatch, McDonnell, former first lady indicted on multiple counts, January 21, 2014
- ↑ Washington Post, Robert F McDonnell Indictment, January 21, 2014
- ↑ WJLA ABC7, "McDonnell trial exposes former first lady's 'sex' text, among 1,200 messages to star witness," August 1, 2014
- ↑ The Washington Post, "Businessman who gave gifts takes stand in McDonnell trial," July 31, 2014
- ↑ 19.0 19.1 NBC29, "McDonnell Corruption Trial Day 3: Williams, Assistant Testify," July 30, 2014
- ↑ Politico, "Bob McDonnell testifies on marriage woes," August 20, 2014
- ↑ CBS News, "Former Gov. Bob McDonnell found guilty in corruption trial," September 4, 2014
- ↑ ABC News, "Ex-Virginia Gov. Bob McDonnell, Wife Guilty of Corruption," September 4, 2014
- ↑ Los Angeles Times, "Former Virginia Gov. Bob McDonnell found guilty in corruption trial," September 4, 2014
- ↑ The New York Times, "Bob McDonnell, Ex-Governor of Virginia, Sentenced to 2 Years for Corruption," January 6, 2015
- ↑ The New York Times, "Former First Lady of Virginia Is Sentenced to Prison for Graft," February 20, 2015
- ↑ Larry O'Dell, The Huffington Post, "Appeals Court Won't Reconsider Bob McDonnell's Case," August 11, 2015
- ↑ Matt Zapotosky, The Washington Post, "McDonnell formally asks Supreme Court to take up his case," October 13, 2015
- ↑ Matt Zapotosky, The Washington Post, "Bob McDonnell’s high-profile supporters urge Supreme Court to take case," November 16, 2015
- ↑ Washington Post, "Supreme Court justices seem skeptical of McDonnell’s conviction," April 28, 2016
- ↑ 30.0 30.1 Supreme Court of the United States, McDonnell v. United States, decided June 27, 2016
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ VirginiaBusiness.com, "Supreme Court reverses federal corruption convictions of former Gov. Bob McDonnell," June 27, 2016
- ↑ Politico, "Justice Department dropping corruption case against Bob McDonnell," September 8, 2016
