Posted: 10/20/04
by Howard Lestrud
ECM Online Managing Editor
Former longtime Minnesota state legislator Loren Jennings, 53, of Chisago County was indicted on Tuesday by a federal grand jury on charges of mail fraud and money laundering.
Jennings, of Harris, was a nine-term (18 years) member of the Minnesota House of Representatives. Jennings was a former chairman of the House Regulated Industries Committee, which oversaw regulation of utility companies.
The grand jury charged Jennings with four counts of mail fraud, one count of conspiracy and two counts of money laundering.
The indictment accuses Jennings of using the power of his legislative office to steer $650,000 in state grant money to a telephone pole recycling business in which he was reported to have had a financial interest.
The government alleges that Jennings used his influence to enact legislation that would include recycling of telephone poles to be funded by the state Conservation Improvement Program. After legislation was passed, the indictment says that Jennings "used his position and influence" to persuade utility companies to provide conservation funds to Northern Pole, a company owned by a friend of his, George Vitalis.
The indictment says that Jennings loaned about $670,000 to Northern Pole and he also had an equity interest in the company. It is also alleged that $273,000 in loans the company paid to Jennings came from the $650,000 in conservation funds paid to Vitalis and Northern Pole by utility companies. The indictment says Jennings concealed his interest in Northern Pole through businesses he owned and the Town and Country Bank of Almelund. The bank, in his district, later failed.
Jennings is represented by Douglas A. Kelley.
Jennings told ECM Publishers that he is making all comments through his attorney. "When the thing is over, I would love to sit down and talk," he said. "I've had better months but I will get through it and we will survive it," he added.
Kelley says Jennings categorically denies the charges against him. "He looks forward to having his day in court and when the dust settles he is confident it will be found that he did nothing wrong," Kelley said.
Attorney Kelley said there was nothing unexpected in the indictment and insists that Jennings did not have an ownership or equity position in Northern Pole or Poletech as mentioned in the indictment. Kelley says he believes Jennings was a victim of the Town & Country bank.
First appearance by Jennings before a U.S. Magistrate is expected in St. Paul sometime next week. At that time Jennings will plead not guilty, says Kelley.
Investigation of the case has been done by the Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation and the Federal Deposit Insurance Corp. Assistant United States Attorney Joe Dixon is prosecuting the case.
Jennings was defeated in a re-election bid in 2002. He always ran as a DFLer and on more than one occasion was denied the DFL endorsement by his party. During his final term in the House he served on these committees: Regulated Industries; Environment & Natural Resources Finance and Environment & Natural Resources Policy.
Jennings is still a part owner of a garbage hauling business in Chisago County.
©ECM Post Review
6448 Main Street
North Branch, MN 55056
Telephone: 651-674-7025
Fax: 651-674-7026
E-mail: editor.postreview@ecm-inc.com