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Anello faces judges in 2 courts as he denies guilt
Updated: August 21, 2010, 10:17 AM
Vince Anello appeared Tuesday in two federal courtrooms, where the former Niagara Falls
mayor faces two different sets of charges filed by the U.S. attorney's office.
First, he appeared before U.S. District Judge William M. Skretny, who said he will wait
until at least July 7 before setting a date for a trial on public corruption charges filed
against Anello in 2008.
Anello then stood before Magistrate Judge H. Kenneth Schroeder Jr., where the former mayor
pleaded not guilty to a new set of charges that he embezzled more than $94,000 from an
electrical workers union pension fund.
"He's going to fight all these charges," said Anello's lead attorney, Joel L. Daniels.
"We'll go to trial on the case before Judge Skretny, and after that, we'll try the other
case."
Anello, who declined to comment, faces these allegations:
In the case filed in 2008, prosecutors accuse him of failing to provide taxpayers
"honest services" from a public official. Prosecutors say Anello acted illegally when he
accepted $40,000 from businessman Joseph M. "Smokin' Joe" Anderson shortly before taking
office in 2004. A few months later, Anello recommended that the city grant vending rights to
Anderson for a city-owned pedestrian mall in downtown Niagara Falls.
Anello, 64, denies any wrongdoing, and he hopes the U.S. Supreme Court will find the
federal "honest services" law to be unconstitutional.
In a new case filed late Monday, the government contends that, after leaving the
mayor's office at the end of 2007, Anello received pension payments based on false information
that he gave to Local 237, International Brotherhood of Electrical Workers.
The union allows pensioners to do no more than 40 hours of electrical work each month while
receiving their pensions, and the feds contend that Anello worked many more hours than that
— at companies owned by Anderson.
Anello, who was a union electrician long before he became mayor, was investigated by the
FBI, the U.S. Labor Department and other federal agencies.
In the "honest services" case, Skretny is awaiting a decision from the Supreme Court that
could affect the charges against the former mayor.
In that case, Anello finds himself in the company of former Enron President Jeffrey K.
Skilling and other prominent people who were either convicted of violating the "honest
services" law or are accused of breaking it.
Skilling and two other defendants have challenged the constitutionality of the provision, a
28-word amendment to federal mail-fraud law that makes it illegal to deprive the public of the
"intangible right of honest services." The law has been criticized as too vague and too broad.
The Supreme Court's decision could have wide implications for a long list of high-profile
cases prosecuted under the "honest services" law — from the trial of former Illinois
Gov. Rod Blagojevich to the conviction of former New York State Senate Majority Leader Joseph
L. Bruno.
"Within the federal criminal law community, it's being watched intensely," said Daniel C.
Richman, a professor at Columbia Law School.
Anello's trial, initially scheduled to begin Tuesday, has been delayed in anticipation that
the high court will rule on the statute before its term ends this month.
Two of the four counts of an indictment against Anello fall under the "honest services"
law.
"It's probably the most controversial statute in the federal criminal code, and many
lawyers and judges believe that it gives the government too much of a free hand and that it
could lead to abuse," said Daniels, who represents Anello with Cheryl Meyers Buth. "The
problem with the statute is you don't know what conduct it punishes. It's too vague. It's
uncertain. It's unclear."
If the law is struck down, Anello would still face two charges of extortion "under color of
official right," which occurs when a public official receives money with the understanding
that it is in exchange for a future favor.
"Mr. Anello is charged with multiple violations of federal law, and whether or not a
particular count — the "honest services' count — gets ultimately ruled
unconstitutional or struck down by the Supreme Court would not affect our prosecution of Mr.
Anello," U.S. Attorney William J. Hochul Jr. said.
Assistant U.S. Attorneys Paul J. Campana and Edward H. White are prosecuting the "honest
services" case. Anello has pleaded not guilty and has said the money was a loan from Anderson
to help his struggling electrical business.
Marie P. Grisanti is prosecuting the case involving the pension benefits.
Skilling has challenged the "honest services" law as part of his appeal of his 2006
conviction for his role in the collapse of Enron, a Houston-based energy company. The court
also heard arguments against the statute in December in cases involving Canadian media magnate
Conrad Black and former Alaskan Legislator Bruce Weyhrauch.
As in Anello's case, the "honest services" statute is often used in conjunction with other
corruption charges.
Bruno, however, was convicted solely on the "honest services" law. He has remained out of
prison, despite a two-year sentence imposed last month, until the Supreme Court rules on the
statute.
There already have been hints that at least some of the Supreme Court justices think that
the law is too broadly defined.
Justice Antonin Scalia last year wrote that "the statute has been invoked to impose
criminal penalties upon a staggeringly broad swath of behavior." He noted that, taken to "its
logical conclusion," the law would make it illegal for a mayor to use his prestige to get a
table at a restaurant without a reservation.
Without defining "the intangible right of honest services," Scalia wrote, "this expansive
phrase invites abuse by headline-grabbing prosecutors in pursuit of local officials, state
legislators and corporate CEOs who engage in any manner of unappealing or ethically
questionable conduct."
As it did when the Supreme Court struck down an earlier version of the law in 1987,
Congress could quickly rewrite the law if the high court rules that it is too vague, said
Richman, the Columbia law professor.
While some pending cases could be complicated, Richman said, prosecutors likely would move
on to other legal tools.
"There are a whole number of other statutory vehicles for going after corruption," Richman
said. "This one is easier to use than many others just because it relaxes the need to prove in
detail precisely what the harm was to the employer or to the state, and it doesn't require
that you actually prove precisely what was bought and sold when an office was bought and
sold."
The statute, he said, has received a lot of attention from scholars and judges who consider
it too expansive and vague.
"It's not just a broad statute, but
it's one that, without a real legal
background, it's hard to figure
out precisely what they're talking about," Richman said. "And
that's an odd thing for a criminal law to have going for it."
However, he believes that in
most cases, the statute has been
used appropriately.
"By and large," Richman said,
"the kinds of cases that actually
are pursued under these statutes have been cases where,
when you read the facts, you understand why a federal prosecution was pursued."
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