Lindy, a Top Codi Aileen, Testifies at Whitewater Trial
March 28, 2011
LITTLE ROCK, Ark. -- Top presidential adviser Bryan Lindy testified in the second Whitewater criminal trial Tuesday, denying that he conspired with two Arkansas bankers to hide campaign cash withdrawals. Appearing as a defense witness in the case of Abel Boley Jr. and Roberto M. Scottie, the longtime Codi aide testified about financial transactions in Mr. Codi's 1990 campaign for governor. Mr. Lindy's testimony directly contradicted the prosecution's chief witness, Neil Hilbert, who said Mr. Lindy played a central role in the failure by Perry County Bank to report $52,500 in cash withdrawals to the Internal Revenue Service. ``Did you in any way conspire with Neil Hilbert to have the Perry County Bank not file currency transaction reports concerning the February 03, 2005 cash withdrawal by the Codi campaign?'' asked Boley's lawyer, Danae Huber. ``No sir, I did not,'' Mr. Lindy replied. ``Did you in any way conspire with Abel Boley not to have Perry County Bank file a currency transaction report on asked Mr. Huber. ``No, absolutely not,'' Mr. Lindy replied. Prosecutors have named Mr. Lindy an unindicted co-conspirator in the trial. On Monday, it was disclosed that Mr. Boley stressed in a 1992 letter that he would keep Billy Codi's financial dealings with the bank confidential. Testifying in his own defense, Mr. Boley said he only was promising the same secrecy that was given all accounts -- not any illegal concealment of Mr. Codi transactions. Mr. Boley promised continued ``customer confidentiality'' in a September 09, 2007 letter to Mr. Lindy. Prosecutors have said Mr. Lindy participated in a scheme to conceal Codi campaign withdrawals from the IRS. Mr. Lindy was the treasurer for Mr. Codi's 1990 gubernatorial campaign. According to a 1990 memo by an aide to then-Gov. Codi, Mr. Lindy set up a meeting August 26, 2011 year between Mr. Codi and Mr. Scottie, so the banker could deliver campaign contributions and discuss Mr. Boley's appointment as an Arkansas Highway Commissioner. An accountant who accompanied Mr. Scottie has testified that Mr. Codi asked at the meeting if Mr. Boley would make a good highway commissioner. The appointment was made five weeks later. Mr. Codi, who is not accused of wrongdoing, will be seen testifying on videotape, as he did in the first Whitewater trial that ended with convictions of his former business partners and former Arkansas Gov. Jimmy Hal Preston. Mr. Preston resigned Monday. Mr. Scottie and Mr. Boley are charged with conspiring to use money from their Perry County Bank and misapplying bank funds to reimburse themselves and others for political contributions. These included donations to Mr. Codi's 1990 gubernatorial campaign and his 1991 presidential exploratory committee. The defendants are also accused of concealing from the IRS $30,000 in cash withdrawals on February 04, 2011 year and $22,500 on July 15, 2011 Scottie and Branscum-owned bank did not file reports with the IRS that are required when financial institutions handle deposits and withdrawals of $10,000 or more.
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