Renzi's corruption trial set

Several years after his congressional career ended amid an FBI corruption probe, former U.S. Rep. Rick Renzi is expected to get his day in court with a trial that opens on Tuesday in Tucson.

Timeline

2001

Republican Rick Renzi runs for Congress. Authorities later allege that he funneled money from insurance clients into his campaign treasury.

2002

Renzi wins election over Democrat George Cordova.

Federal Election Commission orders audit of Renzi campaign finances.

2004

FEC audit says Renzi made $369,000 in "impermissible" loans to his campaign.

Renzi is re-elected, defeating Paul Babbitt.

2005

Resolution Copper begins trying to orchestrate a real-estate swap to obtain copper-rich federal land near Superior.

Authorities allege that Renzi told Resolution that there will be no deal unless property owned by business associate James Sandlin is included. Resolution reportedly balks.

2006

Citizens for Responsibility and Ethics in Washington names Renzi among 20 "most corrupt" members of Congress.

Department of Justice secretly approves FBI wiretaps and search warrants targeting Renzi.

News leaks of possible indictment.

Renzi is elected to a third term, defeating Ellen Simon.

2007

FBI raids Renzi's business.

Renzi resigns from House Intelligence Committee, then announces he will not seek a fourth term.

2008

Renzi is indicted on 35 counts.

A superseding indictment lists 49 felonies.

2010

All wiretap evidence is suppressed from Renzi's future trial due to FBI misconduct.

Judge refuses to disqualify Justice Department team for prosecutorial misconduct.

2011

9th U.S. Circuit Court of Appeals refuses to throw out case based on claims of congressional immunity.

2012

After failure of 11 land-swap bills, Resolution Copper shuts down planned operations near Superior.

2013

Members of Arizona delegation introduce new land-exchange measure.

May7: Renzi trial scheduled to begin.

Source: U.S. District Court records and Arizona Republic archives

The three-term Republican House member, who pleaded not guilty, is accused of extortion, fraud, racketeering, money laundering and other crimes involving his insurance business and his conduct as a legislator.

The U.S. District Court case file reveals a web of political intrigue amid a tangle of legal complications. So far, three dozen attorneys have taken part in litigation, which has produced more than 1,145 motions, briefs, responses, judicial rulings and appeals.

Among the mysteries as the trial convenes: Who tipped off federal investigators? Why? What will Renzi's defense strategy be? And will he take the witness stand?

The defense team declined comment, but it is clear from legal papers that the trial will involve contrasting depictions of the 54-year-old businessman turned politician.

Prosecutors are poised to describe Renzi as a manipulator who embezzled money from business customers, funneled the cash into his election treasury and used his legislative power to profit from an extortion conspiracy.

The defense is geared to present Renzi as a pragmatist whose private and public dealings overlapped but were not criminal; or, perhaps, as the victim of political enemies who dragged him down with help from overzealous federal agents.

Spelling out narratives likely will require more than a month of the trial, dozens of witnesses and tens of thousands of pages of evidence.

"This is just going to be fascinating," said Mike Black, a Phoenix attorney who briefly represented one of Renzi's co-defendants. "I might even go down there just to watch."

Winding through appeals

Renzi was first indicted in February 2008 and eventually faced 49 felony counts.

The charges arise from two sets of allegations that, if true, would constitute a betrayal of the public trust and corruption of the U.S. political system: First, Renzi is accused of defrauding clients at his Patriot Insurance Agency by taking funds that were intended as premiums and using the money to win his first House race in 2002. Second, Renzi is charged with orchestrating a land-swap deal after taking office to benefit a real-estate investor who owed him money.

While it is not unusual for white-collar cases to defy the speedy-trial model of justice, Renzi's litigation has been particularly glacial due to rare constitutional issues that come with prosecution of a former member of Congress.

Delays included two appeals handled by the 9th U.S. Circuit Court of Appeals and numerous hearings to resolve disputes.

Defense attorneys partially succeeded in efforts to get charges thrown out and evidence suppressed but failed in a bid to disqualify the Justice Department team based on claims of prosecutorial misconduct. Among the pretrial issues that had to be sorted out by U.S. District Judge David Bury:

FBI agents who monitored wiretaps improperly listened to phone calls between Renzi and his attorneys, destroyed their notes and misled a judge about the conversations. Bury found the government's conduct egregious and suppressed all evidence from electronic surveillance.

Defense attorneys contended that charges of embezzlement were bogus because, as Renzi's companies were structured, he merely borrowed money. The Appeals Court agreed.

Perhaps most significantly, defense lawyers contended that all charges related to the land-swap deal should be dropped because a clause in the U.S. Constitution prohibits the criminal investigation of a federal lawmaker for legislative acts.

Under the so-called Speech or Debate Clause, Renzi's attorneys argued, the Justice Department violated U.S. law not just by wiretapping the congressman, but by interviewing his staffers and obtaining his records.

The constitutional provision was drafted to prevent the executive branch from using its law-enforcement authority as a political weapon against opponents in Congress. Members of the House and Senate are generally immune to criminal prosecution for their legislative conduct.

In this case, House lawyers filed briefs supporting Renzi's legal position while the watchdog group Citizens for Responsibility and Ethics in Washington argued on behalf of the government.

The Speech or Debate question went to the 9th Circuit, which ruled that Renzi's conduct was not protected.

Still, the issue is likely to resurface during the trial, and House lawyers have asked to remain as players in future courtroom disputes.

Setbacks for prosecutors

The government has suffered a number of setbacks leading up to the trial.

Sixteen counts against Renzi have been dismissed so far, including a tax charge that was thrown out a few weeks ago. Andrew Beardall, Renzi's lawyer in the insurance case, was acquitted. Dwayne Lequire, the insurance-company accountant, was found guilty but the Appeals Court overturned his verdict and issued an acquittal.

The investigation and prosecution have cost U.S. taxpayers and defendants untold millions. Lequire is now seeking more than $400,000 from the government as compensation for his legal expenses. His attorney, Mark Willimann, said the Justice Department keeps losing in Renzi's case because prosecutors went "well beyond the realm of decency" in filing charges.

Although the case was launched under the administration of Republican President George W. Bush and former U.S. Attorney Paul Charlton, also a Republican, Willimann said he believes it was orchestrated by Democrats to oust a GOP incumbent.

"This is purely political," he said. "Renzi did nothing wrong here. … I think the government is in (cover-up) mode. They've got a tiger by the tail, and they didn't realize the tail was long enough for Mr. Renzi to turn around and bite them."

A Justice Department spokesman declined comment.

Controversial mine plan

Richard George Renzi, an insurance and real-estate entrepreneur who also owned a southern Arizona vineyard, was elected to Arizona's 1st Congressional District in 2002, the year he got his law degree. He was viewed as a conservative Catholic with 12 kids and a wide-open political future.

In 2005, Resolution Copper Mining was seeking to trade about 5,000acres of private property for 2,400acres of government land near Superior -- a parcel containing one of America's richest remaining copper deposits. Mining plans call for excavation up to 7,000feet underground to exploit an estimated $61billion in ore, providing 3,700 jobs.

Such real-estate swaps require congressional approval.

According to prosecutors, Renzi vowed to block legislation unless Resolution purchased and included a 480-acre alfalfa field from business associate James Sandlin, who owed him money. On the other hand, if Sandlin's property was part of the deal, Renzi ensured approval, according to prosecutors.

Sandlin, convicted by a Texas jury in 2008 on related charges of filing false financial information, is going to trial on Tuesday with Renzi to face additional charges. His attorney did not respond to an interview request.

The indictment says Resolution balked at Renzi's extortion attempt. A group of other speculators, including former Arizona governor and ex-Secretary of the Interior Bruce Babbitt, then bought Sandlin's land and agreed to make it part of the exchange, according to the indictment, and Renzi introduced legislation to authorize the deal.

That bill died after FBI agents raided Renzi's home and news leaked of a possible indictment. It is impossible to say whether the scandal damaged future prospects for the controversial land swap. However, 11 bills have failed in Congress so far, opposed by some conservation groups, the Apache tribe and Rep. Raul Grijalva, D-Ariz..

In December, Resolution announced that it was dismissing 400 workers and essentially abandoning the project.

Two months later, Arizona's congressional delegation offered a 12th version of the land-exchange bill. That, too, appears to be stalled.

Grijalva said he has repeatedly voted against the project because Resolution and its congressional sponsors will not agree to an environmental review and a more careful valuation of the copper reserves before the deal is struck. He said the Superior mine could have severe ecological impacts but would be nearly impossible to stop if land is transferred into private ownership.

Grijalva said Renzi's trial may bring out more information about the land-exchange deal and the mining company's role.

"It puts Resolution Copper front and center," he said. "I think there's some exposure that's going to happen. … And I believe the asset in the ground -- the copper -- is worth much, much more than the trade we're getting."

Grijalva and others said Resolution officials have been portrayed as "white hats" -- good guys who blew the whistle on corruption -- but Renzi's defense attorneys likely will challenge their motives and credibility.

"This trial is as much a difficult situation for the company as it is for Renzi," he said. "The defense is going to be vigorous, and it has to be against the company."

Resolution Copper has been represented by lobbyist Ron Ober, a longtime Democratic Party operative who once served as chief of staff for former Sen. Dennis DeConcini, D-Ariz. Ober works with public-relations specialist Troy Corder, a former staffer for Sen. John McCain, R-Ariz., and former Arizona Govs. Fife Symington and Jane Dee Hull.

Neither Ober nor Corder would comment on the Renzi trial or its impact on the planned copper project in Superior.

Jennifer Russo, director of communications at Resolution's parent company, Rio Tinto Copper Group, said the land-swap bill was affected by Renzi's controversy while he was in office, but today's legislation is moving forward with bipartisan support. She emphasized that, in the criminal case, Resolution "did nothing wrong and is a cooperating government witness."

If a land swap is approved, Russo said, a full environmental report will be completed before mining gets under way.

"We are pleased with the progress being made in the 113th Congress," she added, "and we are working through all issues and concerns that have been raised."

Reach the reporter at dennis .wagner@arizonarepublic.com.

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