Geddings guilty on five counts

The former lottery commissioner is convicted of mail fraud; acquitted on 1 charge

A federal jury Thursday found that corruption stained the start North Carolina's lottery, convicting Kevin L. Geddings for hiding dealings with a lottery vendor when he joined the commission in charge of the games.

The jury deliberated nearly a day before convicting Geddings, a former Charlotte public relations executive, of five counts of mail fraud as part of a scheme to deprive the public of his honest services. The jury acquitted him of a sixth count of wire fraud.

Geddings, 42, appeared stunned as the verdict was read. He clasped hands with his wife, Kristine, at the defense table moments later. They and his lawyers left the courthouse from a side door, avoiding reporters seeking comment.

Geddings faces as much as 20 years in prison and a $250,000 fine on each count, though he will likely serve far less time under sentencing guidelines.

U.S. District Court Judge James C. Dever III scheduled sentencing for Feb. 5, and allowed Geddings to remain free until then.

U.S. Attorney George Holding said Geddings' conviction after a three-week trial showed that the government is serious about prosecuting public officials who seek to benefit themselves, friends or special interests. "Today's verdict sends a very, very clear message that public servants in North Carolina may not lie to the people, they may not hide the truth from the people and they may not profit on the backs of the people," he said. "If they do so, they violate the law of honest services."

Jurors needed little debate to reach their verdict, said juror James Dicke, a retired meteorologist who lives in Raleigh. He said in a telephone interview that the jury deliberated over each count and decided them with secret ballots. It was unanimous on each mail fraud count from the first votes, he said.

The trial stemmed from a long-running federal investigation into the legislative and campaign activities of House Speaker Jim Black. Holding said the investigation continues.

The case already has been the impetus for the creation of a new state ethics law and an overhaul of lobbying and campaign finance rules that the legislature passed this year. The ethics reforms established criminal penalties for not disclosing potential conflicts of interest.

Black, a Mecklenburg County Democrat, appointed Geddings to the N.C. State Lottery Commission on Sept. 22, 2005, after Black's initial pick couldn't serve.

Much of the trial focused on the behind-the-scenes activities of Black, Geddings and two lobbyists for lottery vendor Scientific Games -- Alan Middleton, then a Scientific Games vice president; and Meredith Norris, a former legislative aide who became Black's unpaid political director.

Among those called to testify in the trial were several top North Carolina political figures, including Gov. Mike Easley; Senate Majority Leader Tony Rand, a Fayetteville Democrat; and two Republican state senators who opposed the lottery legislation. The absence of the senators when the Senate cast the final vote cleared the way for the lottery's passage.

Geddings told jurors that he had disclosed his ties with Scientific Games to Black the night before Geddings was named to the lottery commission. Black testified that Geddings did not tell him of his dealings with Scientific Games.

Prosecutors said those ties included roughly $250,000 in payments by Scientific Games and a related company to Geddings over the past five years for radio and TV ads, focus groups, media strategies and other work.

Black said in a prepared statement after the verdict that he regrets appointing Geddings.