Prosecutors introduce e-mails in Geddings case

Federal prosecutors in the fraud trial of former lottery commissioner Kevin L. Geddings this afternoon introduced evidence and witnesses to illustrate what they have said was an effort by Geddings to determine who would run North Carolina’s lottery and what company would get the contract to operate the games.

Prosecutors introduced a series of e-mails that Geddings sent to Charles Sanders, chairman of the state lottery commission. Two of those e-mails included news reports that cast GTECH, a business rival to lottery vendor Scientific Games, in a negative light.

“The press everywhere loves these stories,” Geddings wrote in one of the e-mail messages.

Geddings, 41, is charged with eight counts of fraud. Prosecutors say he participated in a scheme to deprive the public of his honest services by hiding his financial ties to Scientific Games as he gained a seat on the commission.

Geddings has maintained he complied with the state’s financial disclosure laws and did not take part in a scheme to win a seat on the commission.

In another e-mail, Geddings suggested to Sanders that he bring in former South Carolina Gov. Jim Hodges to talk about setting up a lottery. The South Carolina lottery contracted with Scientific Games to run its games.

Geddings also submitted at least two articles to Sanders that showed how Scientific Games had successfully helped launch a lottery in Oklahoma.

Bryan Beatty, a lottery commissioner, testified that Geddings took part in a private subcommittee meeting to pick finalists for the executive director position. Beatty said he suggested five finalists - a list agreed to by Sanders and Geddings. Beatty said that Geddings then suggested an additional name - that of the director of South Carolina’s lottery.

Earlier in the day, a federal judge ruled against an attempt by prosecutors to use a chronology of events prepared Geddings as evidence against Geddings.

Attorneys for Geddings argued that Geddings put the document together at the request of his attorneys to help them understand the potential case against Geddings, and therefore was protected as privileged communication between a client and his attorney.

Judge James C. Dever III ruled in favor of the defense, and ordered the document sealed.

A Charlotte attorney testified this morning that he introduced a potential lottery vendor to Geddings shortly after Geddings was appointed to the commission, but before he actually took his seat on the commission.

Charlotte attorney Joe Lucas testified that he also sought a similar introductory meeting for his friend, who repaired instant ticket machines, to another lottery commission appointee, Gordon Myers. Myers declined to meet with him.

Myers “indicated that he would be uncomfortable meeting with vendors since he was on the lottery commission and could be in a position to select vendors,” Lucas said.

But Lucas said they met with Geddings in Geddings’ office in Charlotte on Sept. 27, 2005.

One of Geddings attorneys, Thomas Manning, asked Lucas if Geddings had offered to do anything on behalf of the lottery vendor. Lucas said he had not.