by Howard Lestrud
ECM Online Managing Editor

ìI think we should have won and didnít think the government proved its case,î said Douglas A. Kelley, attorney for former State Rep. Loren Jennings who was convicted Tuesday of two counts of mail fraud and one count of money laundering.

Kelley said within seven days he will file a Judgment Not withstanding the Verdict, asking U.S. district Court Judge Richard Kyle to reverse the verdict. Kelley said that if that motion is not recognized, he will then begin the appeal process. An appeal process will not begin until Jenningsí sentencing, Kelley said. Kelley speculates sentencing not to be for two to three months, pending a pre-sentencing investigation.

Jennings was acquitted on four other counts including conspiracy charges to commit mail fraud and to commit money laundering.

Jennings, a state lawmaker for 18 years, was was accused of using his office to financially benefit a firm in which he had a financial investment. Jennings, 54, of Harris, was defeated in a re-election bid in 2002. He ran as a Democrat each of his nine terms and several times, ran successfully in a primary after losing his partyís endorsement.

The burly Jennings was a businessman in the Chisago County and Isanti County area, holding interest in a sanitation business and at one time, owning a supermarket. His political career started with the Rush City Council as a council member. He was then elected to the Chisago County Board of Commissioners and followed that by entering the Minnesota Legslature.

All attempts to obtain comment from Jennings were directed to attorney Kelley.

Following the reading of the verdict, Kelley said Jennings didnít ìreally show any emotional highs and lows.î Jennings was nervous and disappointed, said Kelley, but very gracious in telling Kelley he wouldnít have done anything different in respect to his defense. Jennings did not testify during the nine-day trial. ìThe jury (seven men and five women) heard Loren enoughî during the trial, said Kelley, referring to recordings that were submitted as evidence. Kelley said Jennings reiterated often to him and to others that he told the truth.

In discussion with the prosecution team, Kelley said he has learned that it will seek a sentence of six years in prison for Jennings. Jennings faces a maximum sentence of five years in prison, a $250,000 fine or both on each count of mail fraud, and up to 10 years in prison, a $250,000 fine or both for money laundering.

U.S. Attorney Thomas Hefelfinger said he was pleased with the decision of the jury and thought it was the proper decision considering the facts of law in the matter.

What happens in the ensuing days with Jennings? Kelley said Jennings will cooperate with probation officers during the pre-sentence investigation, he will get his affairs together, ìand, I suppose, pray,î said Kelley. ìI am sure we will talk often in the days before sentencing and the lawyers on both sides with argue about sentencing guidelines,î said Kelley. Kelley said Jenningsí acquittal on the two conspiracy charges should have a salutary effect for Jennings during setting of sentencing guidelines.

During his time as a legislator, Jennings served as chairman of the House Regulated Industries Committee, which deals with utility issues. He became known for advocating expanded nuclear waste storage at the Prairie Island nuclear power plant. He and the then senator from his district, the late Sen. Janet Johnson, were at opposite sides of the spectrum on this issue.

Jennings was accused of using his position in the House to pass legislation that made it possible for ratepayersí conservation funds to be spent on a utility pole recycling company, Northern Pole Inc. Jenningsí companies loaned about $670,000 to Northern Pole. Jenningsí lobbying of Minnesota Power and Northern States Power Co. (now Xcel Energy) resulted in payments of $650,000 to Northern Pole from conservation funds. More than $284,000 was said to have made payments on Jenningsí loans.

In his closing arguments on Monday, Kelley indicated that the Jennings companiesí loans in Northern Pole were ìbridge loansî to help his friend, banker John C. James of Almelund. Kelley explained that 33 people were John Jamesí ìmarksî at the Town & Country bank. He said only one of these people paid money back and only one person was prosecuted. That person was Loren Jennings.

Kelley told ECM Publishers that the FBI believed there was ìrampant corruptionî in the Minnesota Legislature and this is one of the cases they chose to pursue. Kelley said there were accusations that there were brown bags of cash being passed around the Legislature to influence votes on the Prairie Island issue. Kelley said Jennings consistently said he never saw this happen.

The heart of the case in the federal indictment, said Kelley, was that Jennings violated Minnesota law by not disclosing his involvement with Northern Pole on his economic disclosure forms and that he did not recuse himself from a vote by declaring a conflict of interest. Kelley said that Jeanne Olson, executive director of the Minnesota Campaign, Finance and Public Disclosure Board, testified that Jennings did not need to disclose his interest, nor did he need to recuse himself from the vote. Kelley said Olson has logged 23 years of government service and was well verse in administering the statute regulating this matter. ìGame over,î we thought, said Kelley.

A bit of irony, attorney Kelley was chairman of the Minnesota Campaign, Finance & Public Disclosure board during the time Gov. Tim Pawlenty ran for governor in 2002.

Kelley said there are many cases in the Legislature where conflicts of interest have been charged and not to be found. He listed as an example where Rep. Jim Abeler, Anoka, received $400,000 in income from charter schools for property rent. Kelley said Abeler still voted on education issues controlling charter schools and was said to not have been in conflict with his interest.

If an appeal is filed, it could take nine months or longer to hear the appeal, said Kelley.

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