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Veon and aide ordered to face trial
Saturday, September 05, 2009

HARRISBURG -- Former Democratic state Rep. Mike Veon and his former aide Annamarie Perretta-Rosepink will stand trial on charges they misused tax dollars given as grants to the nonprofit Beaver Initiative for Growth.

The charges were previously dismissed by Harrisburg District Judge Joseph Solomon, but prosecutors refiled them in May, saying Judge Solomon used an incorrect standard of law.

Yesterday afternoon, Harrisburg District Judge William Wenner ordered Mr. Veon and Ms. Perretta-Rosepink held for court on all charges filed against them. His decision came after hearing testimony from many of the same witnesses who appeared before Judge Solomon.

"I have always believed Mr. Veon was a very dedicated public servant to the people of Pennsylvania and he had a reputation of being a very, very hard worker," Judge Wenner said, "but with respect to the matters before us, I am going to hold the charges."

Defense attorneys said they were troubled by the fact that little new evidence was presented in the hearing.

"I don't think it's appropriate to have a different judge hearing the same evidence make a different decision. It's just wrong," said Daniel Raynak, who represents Mr. Veon. "I just find it crazy that [prosecutors] can present the same evidence and keep on presenting it until some judge has the guts or the gumption to say enough is enough."

Mr. Veon and Ms. Perretta-Rosepink are accused of using funds that were supposed to go to economic development projects for campaign work, for a no-bid contract that went to a company Mr. Veon's brother worked for and a private office on the South Side where Mr. Veon could freshen up before meetings in Pittsburgh. Prosecutors also say they distributed BIG funds to compensate people for working on Mr. Veon's political campaigns.

They may have made bad business decisions, but they committed no crimes, said Michael Palermo, attorney for Ms. Perretta-Rosepink, 46, of Beaver Falls. "We don't put people in jail or try them in criminal court for bad business decisions."

Prosecutors, meanwhile, say what they did constitutes theft and conspiracy for political gain.

Among those who testified yesterday were former state Rep. Terry Van Horne, the nonprofit's former executive director John Gallo and its finance director Cindy Vannoy.

Mr. Van Horne recanted a statement he made during testimony May 21 when he said he committed a crime by cashing a $5,000 check from BIG even though he never did any work for the nonprofit.

"I was very confused that day. I was more confused than I should have been," he said from the witness stand yesterday. "I don't think I committed a crime."

Mr. Van Horne, who represented Westmoreland County until 2000, testified under a grant of immunity. He said he had been working as a part-time consultant to the House Democratic caucus for months and had sent nine invoices but was never paid. When he later received a $5,000 check from BIG, he cashed it because he thought he earned it by attending meetings about projects the nonprofit was involved in.

Tony Krastek, lead prosecutor, addressed the payment during closing arguments.

"The fact that he may have been [at some meetings] is not his working for BIG," Mr. Krastek said. "He didn't work for BIG and he got paid from BIG. He didn't earn that money, and that was a crime."

The case is expected to go to trial next spring. Mr. Veon faces 19 counts and Ms. Perretta-Rosepink faces six.

Meanwhile, the two face another set of charges in connection with another government corruption case known as Bonusgate. They and 10 others associated with the House Democratic caucus are accused of using millions of state tax dollars to subsidize political campaigns. The case centers around an alleged scheme to give taxpayer-funded bonuses of up to $25,000 to caucus staffers who worked on political campaigns.

The Bonusgate trial is scheduled to begin Jan. 19.

Tracie Mauriello can be reached at tmauriello@post-gazette.com or 717-787-2141.
First published on September 5, 2009 at 12:00 am