Posted: 7/19/05
From ECM Post Review staff reports
The trial for former DFL state Rep. Loren Jennings is underway.
Jennings, 54, is on trial in U.S. District Court in St. Paul for mail fraud, conspiracy and money laundering. The Harris
man 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.
Federal prosecutors accuse Jennings of using the power of his legislative office to steer $650,000 in state grant money to Northern Pole, a telephone pole recycling business in which he was reported to have had a $670,000 stake.
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 ěused his position and influenceî 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 has categorically denied the charges.
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