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Prosecutors Follow Paper Trail

A federal prosecutor yesterday guided jurors further along the paper trail the government has reconstructed to show that a Phoenix-based demolition company’s bonuses to employees were really reimbursements covering illegal campaign contributions.Yesterday the court heard testimony from Dorothy Shipley, a Controlled Demolitions Inc. bookkeeper, on the company’s bookkeeping practices, the payment of bonuses and other benefits to several selected CDI employees. After reviewing the pay, benefit, and bonus records of CDI employees Robert Kulinski, James Santoro, Stacey Loizeaux (company co-owner J. Mark Loizeaux’s daughter) and project manager Raymond D. Zuchowski, Assistant U.S. Attorney Kathleen O. Gavin produced a series of $1,000 payroll checks each had received.Gavin noted that one of the checks in the series, made out to Kulinski in the amount of $764.41 but voided, represented what a straight $1,000 bonus would net after deductions. Shipley explained that the $1,000 checks in the series that were cashed by Kulinski, Santoro, Stacey Loizeaux and Zuchowski were most likely “grossed up” so that they would net the payees $1,000.CDI, Douglas K. Loizeaux and brother J. Mark Loizeaux allegedly reimbursed four CDI employees for making contributions that totaled $4,000. The two men face up to five years’ imprisonment on each of the two counts and fines up to $500,000. The company could be facing up to $1 million in fines, according to court documents.Gavin told the court that the government expects to rest its case by Tuesday. The trial is set to resume Monday at 10 a.m.The defendants are charged in U.S. District Court in Baltimore with two counts each of willfully causing the treasurer of Elijah E. Cummings’ 1996 congressional campaign to file false statements with the Federal Election Commission.Cummings, who was running in a special primary to fill the 7th Congressional District seat vacated by Rep. Kweisi Mfume, who retired to head the NAACP, supported replacing outdated federal high-rise housing projects with new, affordable housing. CDI specializes in demolishing high-rise structures. More from The Daily Record Online

Check Stops Here (Sept. 14, 2000)FEC Violation an Honest Mistake? (Sept. 13, 2000)Loizeaux Brothers Go on Trial (Sept. 12, 2000)

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