Judge dismisses remaining charges in Olympic corruption case

Associated Press Writer

SALT LAKE CITY (AP) -- Less than three months before the games begin, a judge dismissed all remaining charges Thursday in the 2-year-old bribery scandal that tainted Salt Lake City's Winter Olympics.

U.S. District Judge David Sam tossed out 10 fraud counts and a conspiracy charge that federal prosecutors had filed against Salt Lake City bid leaders Tom Welch and Dave Johnson.

The two were charged in July 2000 with using $1 million to sway International Olympic Committee officials toward support of Salt Lake's bid for the 2002 Winter Games. The alleged enticements included college scholarships for IOC members' relatives, guns, medical care, travel and other perks.

The judge had dismissed four bribery counts in July, and prosecutors elected to pursue the remaining charges.

But Sam said without the bribery charges, the rest of the case falls apart. Prosecutors had argued the indictment could be salvaged simply by changing a few words, but the judge said that would change the substance of the entire indictment.

The federal bribery counts were based entirely on a state bribery misdemeanor. In the July ruling, Sam said Utah's commercial bribery law doesn't apply to foreign groups such as the IOC.

The government still tried to assert that Welch and Johnson deprived their board of money, property, honest services and its right to control the winning bid for February's Winter Games.

"The remaining conspiracy, wire and mail fraud charges are based on the presumption that defendants bribed IOC members unlawfully," Sam wrote.

Although the ruling appears to indicate there was nothing illegal about Salt Lake City's Olympic bid, an internal IOC probe led to the purge of 10 IOC members. Businessman David Simmons and U.S. Olympic Committee official Alfredo La Mont had previously pleaded guilty to tax violations related to the bid effort.

IOC President Jacques Rogge said he takes no particular satisfaction from the ruling.

"The IOC contributed its own errors and problems and took corrective action. After that it was up to American justice. It's not affecting my feelings in any way. I knew this was a possibility. End of story," Rogge told The Associated Press.

Johnson's attorney, Max Wheeler, said the ruling lifts a burden from his client's shoulders.

"Even though the government appears to intend an appeal, it's good to have the federal court agree with us on the lack of criminality in his conduct," Wheeler said. "We're confident we'll be able to uphold the court's order" on appeal.

Welch's attorneys said their client feels vindicated.

"We hope that the federal government will not prolong this misguided prosecution," a statement from attorneys William Taylor and Blair Brown said.

Salt Lake Organizing President Mitt Romney said he didn't expect a trial before the games.

"My conclusion is that there was unethical conduct which occurred in the bid process but apparently not illegal conduct," Romney said. "I don't think this will have a significant effect on our games. The games have never been about men in suits."

Lloyd Ward, the new CEO of the USOC, said he hoped Thursday's dismissal "brings resolution to an issue that has overshadowed preparations and anticipation of the 2002 Olympic Winter Games for almost three years. ...

"Important change and reform, nonetheless, has taken place in the Olympic movement because of these issues, and that is both positive and meaningful for the future."

Prosecutors did not immediately return messages seeking comment.