Trial scheduled to go to jury today after closing statements
By WILLIAM F. AST III - H-P Staff Writer
Published: Thursday, July 15, 2010 9:31 AM EDT
GRAND RAPIDS - Former Stevensville village manager Todd Gardner's trial on wire fraud charges is scheduled to go to the jury today in U.S. District Court in Grand Rapids.
U.S. Assistant Attorney Matthew Borgula on Wednesday called six witnesses, including St. Joseph FBI agent Robert Sell IV, the chief investigator in the case. The defense rested without calling any witnesses, and Gardner won't be taking the stand.
"I have decided not to testify," Gardner told presiding U.S. District Court Judge Janet Neff.
One of Gardner's lawyers, Sean Tilton of the federal public defender's office in Grand Rapids, asked Neff to dismiss the charges.
"The government has not met its burden of proof" or shown that Gardner intended to defraud Stevensville, he said.
Neff denied the motion. Evidence presented by the government "clearly provides the jury with an adequate factual basis" for deciding whether Gardner had taken village funds for his own use, and there was "more than adequate circumstantial evidence" on the charge of defrauding the village, she said.
Borgula and Gardner's lawyers were scheduled to make closing statements this morning. Once they're done, Gardner's fate is in the hands of the jury.
The government is charging that Gardner embezzled $271,696 from village accounts. He did that by electronic transfers of funds, according to his indictment.
If the jury finds him guilty, he faces up to 20 years in prison and would have to make restitution for the missing money. If he can't pay, the government could make him forfeit property, the charges against him said.
Sell testified that Gardner had received two debit cards for the village's public works account and used them for personal payments. That included a $68 bill at Sanitary Cleaners in St. Joseph, bills from Michigan Gas Utilities for his house, and a $270 bill at Lane Automotive in Watervliet.
Witnesses who testified included Jeff Fetters, president and owner of Sanitary Cleaners, Dan Lenders of Lane Automotive and Joe Guzman of Maxton Motors.
There was also testimony that Gardner had used $10,627 in village funds to buy a 2004 Chevrolet TrailBlazer from Maxton Motors in Benton Township.
Sell showed the jury a picture of Gardner's house with the TrailBlazer parked outside.
Both Tilton and Gardner's other lawyer, David Kaczor, also of the federal public defender's office, asked witnesses if they had actually seen Gardner sign the papers or receipts presented during the trial. None of the witnesses had.
Earlier Wednesday, loan officials testified about the status of Gardner's mortgage on his house at 2027 Hidden Pines Trail in Lincoln Township. The original loan in 2004 was for $394,400, according to Scott Zeitz of GMAC Mortgage.
The mortgage is now owned by Bank of America, according to Scott Parker of Bank of America. Payments on the loan are delinquent, he said.
The government also charges that Gardner used village funds to make mortgage payments.
Gardner was village manager from April 2006 to May 2009, when the council did not renew his contract. Treasurer Jan Lausch-Zilke resigned in November 2006, after disagreements with Gardner, and the government charges the embezzlement started soon afterwards.
The village's funds were not audited during Gardner's tenure. St. Joseph certified public account Stephen Ross, who testified on Tuesday, reconstructed the financial books. A subsequent audit by the Michigan Department of Treasury confirmed the missing funds.
The original indictment against Gardner said he took $293,140 from the village. The government is now charging he took $271,696.
Outside the courtroom Borgula said the government decided not to include some of the missing funds.
The Stevensville Village Council has restricted itself to paying bills of no more than $35,000 a month until the arrearage is made up.
wast@TheH-P.com