By Howard Lestrud
ECM Online editor

An appeal of a conviction on two counts of mail fraud and one count of money laundering was was lost this week by former Minnesota State Rep. Loren Jennings, Harris.

The U.S. 8th Circuit Court of Appeals rejected Jennings' claims of insufficient evidence to convict him, alleging that mistakes were made during the trial and in saying that Jennings should forfeit his personal gain from the scheme.

Jennings reportedly is currently incarcerated in Leavenworth, Kan. He initially was sent to serve his four-year sentence at a facility near Madison, WI.

Jennings was convicted July 26, 2005 and sentenced March 20, 2006 to four years in prison and ordered to make restitution and forfeiture of funds totaling nearly $569,000. He was acquitted on four other counts including conspiracy charges to commit mail fraud and to commit money laundering.

Jennings was convicted July 26, 2005 and sentenced March 20, 2006 to four years in prison and ordered to make restitution and forfeiture of funds totaling nearly $569,000. He was acquitted on four other counts including conspiracy charges to commit mail fraud and to commit money laundering.

Jennings was accused of using his position in the House of Representatives to pass legislation that made it possible for ratepayers' conservation funds to be spent on a utility pole recycling company, Northern Pole Inc. Jennings' companies loaned about $670,000 to Northern Pole. Jennings' 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 Jennings' loans.

Following his sentencing, Jennings issued a statement through his attorneys Douglas A. Kelley and Steve Wolter in which he said: ". . .I'm disappointed with the outcome, of course. I just want to move through this and get back to my family, my work and my community."

Jennings, 55, served 18 years as a legislator for Chisago and Isanti counties and part of Pine County. He was defeated in 2002 in his last attempt for election. He carried the DFL banner during each of his terms.

Attorney Kelley said he is now doing a significant analysis in considering a possible appeal to the United States Supreme Court. As of late last week, he had not discussed this option with client Jennings.

In its case against Jennings, the federal government said Jennings had violated state law in not disclosing a potential conflict of interest.

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.

"If you comply with state law, what do you have to do to satisfy federal law?" Kelley asks.

No statement from Jennings was given. Kelley said Jennings has not shown a willingness to talk publicly on the matter, wants to do his time, look forward and not back.