Ex-judge exposes the dirty details

One or both defendants had the option of taking the witness stand today.
By PATRICIA MEADE
VINDICATOR CRIME REPORTER
CLEVELAND -- The James A. Vitullo-Russell J. Saadey Jr. trial has had it all: Illicit sex. Intrigue. Bribery. Blackmail. Treachery. Deceit.
Fred H. Bailey fell into most of the categories Thursday in U.S. District Court.
The retired Mahoning County judge testified in the racketeering case against Vitullo, 45, of North Jackson, and Saadey, 46, of Austintown, who is known as "Champ."
The government contends Vitullo took bribes to fix cases when he served as an assistant county prosecutor in the mid-1990s, and that Saadey, in his role as prosecutor's investigator, was an opportunist who served as a case-fix middleman. Saadey also faces tax evasion charges.
The government followed Bailey's testimony with investigative background given by IRS Special Agent Patricia A. Reese and FBI Special Agent Mark Nowak. Prosecutors then rested their case after six trial days.
Vitullo planned to take the witness stand today, but not Saadey.
Thursday's testimony: It took Bailey less than 90 minutes Thursday to expose sordid details of his life that he had hoped would remain private.
Although Bailey reached a plea agreement with the government in September 1999 and admitted taking bribes from Vitullo and four lawyers, few details became public -- until Thursday.
The exposure began slowly for the 73-year-old Boardman man who served 26 years on the county bench, mostly in Austintown.
"Is it OK if I call you Mr. Bailey?" asked E. Scott Shaw, Vitullo's Columbus lawyer. Shaw said he didn't want to use the title "judge" because Bailey had disgraced the office.
"That's fine," Bailey said, slumping in his chair.
Shaw then proceeded to uncover Bailey's hidden past. The past included more bribes and an illicit love affair that led to hush payments for 17 years.
"You said you were bribed by Larry Seidita, Jack Campbell, Stu Banks and Jimmy Vitullo," Shaw said. "Do you know [attorney] Jim Wise ... he gave you a bribe."
"That's what I read. I don't recall it," Bailey said. "I read it last week in the Youngstown Vindicator."
Shaw asked if Bailey, who admitted taking $8,000 to $10,000 in bribes, reported the earnings to the IRS. Bailey said he didn't.
"Tax evasion?" Shaw asked.
"Yes, sir," Bailey answered.
"You're not going to be indicted for tax evasion, are you?" the lawyer probed.
Bailey said he believed he wouldn't.
Defense: Shaw demonstrated that Bailey, had he not supplied the names of co-conspirators to the FBI, would be looking at a lengthy prison term when sentenced. He faces 18 to 24 months, based on his cooperation.
The thrust of the Vitullo-Saadey defense teams has been that government witnesses implicated both men in a case-fixing enterprise to get reduced sentences.
"You'd like to get a deal like Jack Campbell," Shaw said. "You'd like to walk around with a little ankle bracelet."
Bailey said he would.
Campbell, the first corrupt Mahoning County lawyer to cooperate with the government in 1997, received four years' probation instead of prison, with the first 16 months on electronically monitored house arrest.
"You wanted to keep all this quiet," Shaw asked of Bailey's past.
"If possible," Bailey answered.
Shaw asked about Bailey's telling the FBI that he took bribes to pay his mistress.
"Not a mistress, but I was paying her," Bailey said. He admitted the payments lasted for 17 years, roughly 1982 until mid-1999.
"You had a child by her," Shaw accused.
"That's false," Bailey shot back, showing anger for the first time.
"You claimed [to the FBI] that you were being shaken down by a old flame," Shaw said, leaning over the podium and pointing at Bailey.
The government objected. Judge Kathleen M. O'Malley overruled and let the questioning continue.
The 10-woman, two-man jury paid rapt attention. One juror used a yellow marker to highlight what he'd written.
What was paid for: Shaw asked if some of the money Bailey paid the woman was listed under office expenses. Bailey said it wasn't.
She "picked up money at the court?" Shaw asked.
"Once in a while," Bailey replied.
Shaw then asked several questions about what expenses Bailey paid for the woman in 17 years.
Bailey paid her rent, $800 per month. He paid her car payment each month and all utilities and bought her a laptop computer. He paid about $3,000 for a trip she took to Maryland.
The former judge acknowledged that the expense caused him to be short of cash and was one of the reasons he accepted bribes. He admitted that he didn't want the affair to become public.
"You were very concerned about the public embarrassment," Shaw said.
"Of course," Bailey answered.
Shaw switched gears and, looking down at FBI documents that contain Bailey's statements, asked him about "feeling dirty" for taking $2,500 from Seidita to fix an assault case for Frank Susany, a known jewel thief.
"That $2,500 stayed in your pocket, didn't it," Shaw said.
"Yes," Bailey answered, noticeably uncomfortable.
When questioned by Bernard A. Smith, an assistant U.S. attorney, Bailey said he took three to four bribes from Vitullo, usually $500 each time. The payoffs took place in the parking lot at the Austintown court, he said.
Bailey said Vitullo would slip the money to him as they shook hands.
The former judge, sounding a bit confused, said he didn't ask where the cash came from but assumed it was because he acquiesced to the fixes by signing the DUI decisions Vitullo wrote on case files.
Bailey wasn't able to recall the names of any defendants whose cases he fixed -- "not a one" -- for Vitullo, Campbell, Banks or Seidita.
Bailey said he took two to three bribes from Campbell and the same number from Seidita and Banks.
Allegations: So far, testimony and pretrial statements made to the FBI have alleged:
UBanks paid to fix a drive-by shooting case in which a 15-year-old girl died. Banks kept on the sunny side of common pleas Judges R. Scott Krichbaum and Jack Durkin by giving them Ashton cigars worth $200 each Christmas. Atty. Michael Morley paid Banks $20,000 for calling two Ohio Supreme Court justices about a case Morley didn't want the court to hear. Morley denies the payment.
UDennis C. Johnson, the Columbiana County Democratic Party chairman, was wined and dined for free at The Upstairs Lounge in Austintown (owned by a Saadey) and called law enforcement officials about a robbery case Russell Saadey wanted fixed. Johnson said he did nothing wrong.
UBruce Zoldan, owner of B.J. Alan Fireworks, is alleged to have bribed a code enforcer with the state fire marshal's office, according to witness Jack Campbell, who added that Zoldan funneled $10,000 through him (Campbell) for Joel Hyatt's U.S. Senate campaign. Zoldan countered that whatever Campbell says "is an exaggeration, sensationalized and twisting what the real truth is. & quot;
UWhen Seidita needed a phony polygraph test for a client, he paid Youngstown attorney Peter J. Bozanich $400 to $600 to give the lie-detector test and write up the false results.
UJames A. Philomena, the ex-Mahoning County prosecutor now in prison, took bribes on his boat at Lake Milton, while walking around the courthouse or in its hallways. He abused drugs but not on the days he met with the FBI to tell all he knew. In eight years, he took 14 bribes from lawyers -- Banks, Lynn Sfara Bruno [now under indictment], Seidita, Campbell, Don L. Hanni Jr. -- and others. Hanni says Philomena is lying.
UTo pay to fix his friend's DUI, Martin DePerro of Hudson left $10,000 on the bar at the Upstairs Lounge and covered it with a newspaper. He dropped off $6,000 there when another friend needed a DUI fixed.
UBribes -- always in cash -- got stuffed into coat pockets, left in desk drawers, jammed under seats in a Mercedes (or in its trunk), passed in handshakes, concealed in brown paper bags, exchanged in men's rooms, hidden in a plane's nose cone or handed over on a boat in the middle of Lake Milton.
U dealers Phillip Courtney and Robert E. Harvey Jr. paid $200,000 to fix an odometer rollback case. The scheme included Russell Saadey's uncle, Anthony Saadey, owner of Mr. Anthony's and Anthony's on the River, and Frank Amedia, a retired Youngstown businessman who received immunity before testifying. Philomena said he got $34,000, a third of what he believed was a $100,000 bribe.
UDennis P. Orr of Canfield, convicted of illegally dispensing diet pills when a North Jackson doctor, met Russell Saadey at The Upstairs Lounge seeking help. Saadey steered him to Banks, who wanted $100,000, of which $40,000 would go to Philomena. Orr declined. His case was eventually transferred to federal court and he was convicted.
UAndrew Polovischak Jr., when elected Youngstown municipal judge, told Banks, "We are going to make some money," and Banks paid for favorable decisions.
meade@vindy.com