TRAFICANT ON TRIAL J.J. Cafaro to discuss bribe

J.J. Cafaro lost $10 million in the laser-landing technology venture.
By PATRICIA MEADE
VINDICATOR CRIME REPORTER
CLEVELAND -- All eyes will be trained on the witness box in U.S. District Judge Lesley Brooks Wells' court when multimillionaire J.J. Cafaro tells how he "thanked" a congressman with $40,000 in cash and boat repairs.
The testimony could come very soon in U.S. Rep. James A. Traficant Jr.'s racketeering trial. Cafaro is the last key prosecution witness in the trial, which began Feb. 5.
At the end of court Wednesday, the government had called 49 witnesses.
In May 2001, Cafaro pleaded guilty to conspiracy to violate the federal bribery statute, admitting that he provided an illegal gratuity to Traficant.
Cafaro will testify according to provisions of a plea agreement that will result in him facing zero to six months' incarceration when sentenced. At that level, he is also eligible for probation.
As a prelude to Cafaro, the jury is hearing evidence from others who have knowledge about the transactions.
Back on the stand today was Dominic Rosselli Jr. of Poland, chief financial officer for the Cafaro Co. The mall development company is ranked 11th in real estate holdings in the U.S., with 33 million square feet.
Testimony: Rosselli testified Wednesday that the Cafaro Co. invested $26 million in J.J. Cafaro's Avanti sports car plant, which operated in Youngstown from 1986 to 1991. The entire investment was lost, and J.J. Cafaro covered the loss by selling his interest in real estate holdings.
Cafaro left the family business in 1989, returned as a consultant in 1992 and has been a full-time employee since 1995.
Cafaro's next investment, the now-defunct USAerospace Group, lost about $10 million, Rosselli testified. Cafaro had acquired the technology for laser-landing lights to be used at commercial airports and asked for Traficant's help in getting Federal Aviation Administration certification.
At the time, in 1998, Traficant served on the House Transportation and Infrastructure Subcommittee on Aviation.
J.J. Cafaro's brother, Anthony Cafaro, president of the Cafaro Co., had set a $5 million cap for USAG. Anthony Cafaro didn't want to let things get out of hand, like they did with Avanti, Rosselli testified.
USAG, which went bankrupt, was based in Manassas, Va.
In June 1998, shortly before the $5 million cap was reached, Traficant sent a memo to J.J. Cafaro and issued a press release that promoted USAG technology. The congressman told Cafaro that the stage was set for legislation the following year that would require the technology, Rosselli said.
When more money was needed for USAG, J.J. Cafaro borrowed $2.5 million from family trusts, obtained a $900,000 bank loan, $800,000 more from the family business then used his personal accounts, Rosselli said. The $800,000 was obtained when his daughter, Capri Cafaro, president of USAG, implored her uncle, Anthony Cafaro, to give USAG one last chance in early 2000.
The government said a conspiracy existed between J.J. Cafaro, Traficant and two employees of USAG -- Richard E. Detore and Albert Lange.
Detore is under indictment. Lange has not been charged.
Cash, boat repairs: Cafaro admits he gave Traficant $13,000 in cash and paid more than $26,000 for repairs to the congressman's houseboat in Washington, D.C.
Traficant asked Rosselli today if he was aware that the boat had been used for testing.
Rosselli said he questioned some expenses and was told the boat was to be used for a marine demonstration of the technology.
The government said that, from April 1998 through December 1999, USAG paid $3,219 for meals at the Taverna in Washington, D.C. for Traficant and Detore. Traficant, Cafaro, Detore and Lange agreed to conceal Cafaro's purchase of the congressman's houseboat by making it appear as though Lange bought the boat, the government said.
In the end, Traficant had the $13,000, the free repairs and the boat, the government said.
In September 1998, Rosselli said he questioned a $3,000 payment to Lange, wondering if it should be shown as income or a business expense. J.J. Cafaro had only instructed that it be paid but provided no receipts, Rosselli said.
The $3,000 was eventually paid as a business expense. Another $30,000 to Lange in 1999 was listed as a bonus, Rosselli said.
Cross-examination: Under cross-examination, Traficant asked if Rosselli had ever seen a demonstration of the USAG laser lights.
Rosselli said he had, adding that either Detore or Richard J. Goldberg piloted the plane. Both were seated at the controls, he said.
Goldberg, a former personal injury lawyer, is in prison, accused of bilking clients of more than $4 million.
"Do you have knowledge if I was aware of the $5 million deadline?" Traficant asked. Rosselli said he wasn't.
Rosselli also wasn't aware if Cafaro and Traficant had an agreement to bring jobs to the congressman's district.
As with Traficant, Cafaro is free on $50,000 unsecured bond.
Tracy Sloan, who served as a bookkeeper at USAG from 1999 to 2999, testified this morning. She recalled being asked to rent an exotic or luxury car and found a Corvette for Traficant. The rental car was charged to Detore's personal credit card.
Matthew B. Kall, assistant U.S. attorney, asked why the car was needed. Sloan said that they had to find a repair shop to fix the congressman's Avanti.
Sloan said she never met Traficant but was aware of faxes that passed between his office and USAG's.
Traficant's questions: Traficant asked if Detore ever bought meals for him and Detore on the USAG account. Sloan said yes.
Traficant asked several questions to determine who was the boss at USAG. Sloan said she couldn't speculate. He then asked her to describe Capri Cafaro's role. Sloan said that Capri Cafaro would review documents, sit in on meetings and occasionally sign checks. She said that Capri Cafaro was hardly there.
Leisel Bucheit of Virginia testified about her role in carpentry and electrical work done at Traficant's horse farm in Greenford in 1993 and paid for by her father Bernard J. Bucheit's company.
Leisel Bucheit said she had no idea about the scope of the work. She issued checks to the carpenter, David M. Manevich of Austintown, and Aey Electric.
She recalled sending a bill to Traficant but has no idea if it was paid. She left the company in 1996.
Indicted: Her father, of West Palm Beach, Fla., is under indictment, charged with conspiracy to violate the federal bribery statute, giving an unlawful gratuity to Traficant and perjury before a federal grand jury.
Bernard Bucheit is accused of paying about $27,000 for the work at Traficant's farm in Greenford. Included was a deck replacement, electrical work, elaborate railings and lattice work, a gazebo, enclosure of an addition, siding, windows, drywall and finishing work.
In return, the government said, Traficant engaged in numerous official acts to help Bucheit obtain an undisclosed settlement of the $11.5 million owed his company by a Saudi Arabian prince for construction work in the Middle East.
meade@vindy.com