Jerry Allegood, Staff Writer
The final three defendants charged in the investigation of former state Agriculture Commissioner Meg Scott Phipps received fines and probation Tuesday, closing what a federal prosecutor called a case of "greed and power."
Norman Y. Chambliss III of Rocky Mount, Morris Vivona Jr. of Verona, N.J., and Weldon B. Denny of Raleigh avoided prison,walking out of federal court after being sentenced on charges of making false statements to investigators.
Phipps and three former associates already have been sentenced to prison terms on charges stemming from a 27-month probe of illegal campaign financing in her 2000 run for office.
State and federal agencies investigated payments from carnival operators who wanted a contract to run the State Fair.
Phipps, a daughter and granddaughter of governors, resigned in June 2003 and admitted taking tens of thousands of dollars in illegal contributions. She is serving a four-year term in federal prison for her guilty plea to charges of extortion, mail fraud and conspiracy.
Prosecutors said after court that the case involved corruption and attempts to obstruct an investigation of it.
"It was greed and power," said Assistant U.S. Attorney Dennis M. Duffy. "It's about greed. It's about money. And it's about people who were not following the rules and thought they would never get caught."
Chambliss and Vivona pleaded guilty this year to obstruction of justice. Both were charged with providing false statements to law enforcement agents.
Vivona, 46, general manager of Amusements of America carnival company, was sentenced by federal Judge Malcolm J. Howard to two years of probation, five months of house arrest and a $3,000 fine.
Chambliss, 53, owner of the Rocky Mount Fair, received two years of probation, six months of house arrest and a $25,000 fine.
Denny, 78, a former deputy agriculture commissioner, was sentenced to one year of probation and a $2,000 fine. He pleaded guilty in May to making false statements to the Federal Bureau of Investigation, telling agents he was unaware of illegal cash payments made by a carnival owner to Phipps when he knew of three payments.
"I made a terrible mistake, and I've spent many sleepless nights over this," Denny told the judge.
Attorneys for Chambliss and Vivona told the judge that their clients were good men who made bad decisions.
Chambliss' attorney, Richard T. Gammon of Raleigh, said Chambliss was a popular Little League baseball coach in Rocky Mount who now had to face children and explain that he had done something wrong. He also said Chambliss had cooperated with state and federal investigators and was a key witness against Phipps.
During Phipps' trial, Chambliss admitted that he made at least three illegal loans to the Phipps campaign. He was involved in persuading Phipps to give Vivona's company the contract to run the midway at the State Fair.
Chambliss, who was accompanied by a large group of family members and friends, apologized before Howard.
"I have hurt the people who love me most," Chambliss said. "I have no idea why I used the level of judgment I did."
Duffy, the prosecutor, said Chambliss lied "over and over again."
"His lack of judgment was about money," Duffy said. "He's a greedy man."
In a brief statement, Vivona told the judge that he had been devoted to the family business and had embarrassed his family with his actions.
"I made the wrong decision, and I am deeply sorry for that," Vivona said.
Duffy said Vivona wanted the fair contract and did what was necessary to get it.
Prosecutors said at a hearing in June that Vivona told Chambliss his company would give Chambliss $50,000 and a vacation for help in obtaining the fair contract. Chambliss did not receive the payments.
During the 2000 election, Amusements of America paid Phipps' way to the the Ohio State Fair, gave her an illegal $6,000 contribution and $10,500 in legal contributions, prosecutors said.
The Phipps campaign was struggling to pay its debts, prosecutors said, and campaign treasurer Linda Saunders solicited an illegal $6,500 payment from Chambliss.
Prosecutors said Chambliss falsely said that Vivona's company had not offered to compensate him until after the contract was awarded in 2002 and that Vivona had agreed only after the fact to fund the $6,500 payment to Saunders.
Chambliss and Vivona were accused of comparing notes about their interviews with investigators. Vivona backed up Chambliss' false answers in a sworn statement, prosecutors said.
Amusements of America signed an agreement with the U.S. Attorney's Office to be monitored for 18 months for compliance with laws and ethical standards. Under the agreement, if there are no violations, there will be no criminal charges against the company. The company also agreed to pay the government $25,000.
Less time for McLambIn another development in the case, Howard agreed Tuesday to reduce the sentence of Bobby McLamb, former assistant commissioner of agriculture, from 16 months to 12 months. McLamb had pleaded guilty to a charge of conspiracy to commit mail or wire fraud and one count of extortion.
His attorney, David Long, told the judge that McLamb had continued to assist investigators after his conviction.
With the reduction in sentence, McLamb could be released from federal prison in January.