Arthur Winn, Prominent Boston Developer, Charged in Illegal Campaign Donation Scheme

Arthur Winn, prominent Boston developer, charged in illegal campaign donation scheme

10/28/2011 1:47 PM

A major Boston developer was charged today with using “strawmen and conduits” to donate tens of thousands of dollars in campaign contributions to federal, state, and municipal candidates from both parties to gain support for the now-failed Columbus Center project over the Massachusetts Turnpike.

Arthur Winn, 72, of Brookline faces up to one year behind bars if convicted, according to US Attorney Carmen Ortiz’s office. Winn allegedly funneled $150,000 in illegal donations through the scheme, prosecutors allege.

In a statement announcing the charges, Ortiz said that one of Winn’s companies, Winn Columbus Center Limited Partnership, has offered to pay $1.5 million in fines to settle criminal charges against that entity.

“Using strawmen and conduits to conceal the true source of campaign funds erodes the public’s confidence in our electoral system,’’ Ortiz said in a statement. “The conduct alleged today, which includes conduit contributions that were ultimately reimbursed using funds from publically-subsidized [sic] housing communities, demonstrates the importance of open and honest campaign funding and record keeping.”

Winn allegedly convinced employees and business contacts to make the donations, and then would secretly reimburse them in violation of federal campaign finance laws, prosecutors said.

In a criminal information filed in court, prosecutors alleged that Winn operated the scheme from at least 2002 until 2009. One major Winn benefactor was former Democratic state senator Dianne Wilkerson who was convicted this year for accepting bribes from a cooperating witness for the FBI.

He is also accused of directing former employee Martin Raffol to carry out the plans. Raffol has pleaded guilty to the scheme to conceal the true source of the campaign donations and to witness tampering. His sentencing has twice been delayed.

In addition to Wilkerson, Democrats receiving contributions included US Senator John F. Kerry’s presidential campaign, and US Representatives Stephen Lynch, Michael Capuano, Barney Frank, and Edward Markey. New York Senator Charles Schumer also was sent donations.

Other Democratic candidates getting donations were: Governor Deval Patrick, Lieutenant Governor Timothy P. Murray, Boston Mayor Thomas Menino, Secretary of State William Galvin, now-US Rep. William R. Keating when he was the Norfolk district attorney, former attorney general Thomas Reilly, and State Senator Brian Joyce.

Republicans receiving donations included former Lieutenant Governor Kerry Healey, the Massachusetts Republican Party, the Massachusetts State Republican Congressional Committee and former US Senator Robert Smith and former US Representative Jeb Bradley, both of New Hampshire.

John R. Ellement can be reached at .

UPDATED Story;

Arthur Winn, prominent Boston developer, to plead guilty to illegal campaign donation scheme

10/28/2011 4:19 PM

A major Boston developer is facing a $200,000 fine as part of a plea deal with federal prosecutors to bring an end to an investigation into illegal campaign donations he and one of his companies made to major Massachusetts political figures, according to court records.

Arthur Winn, 72, of Brookline is expected in US District Court in the near future to formally admit his guilt to charges that he secretly funneled thousands of dollars in donations to the campaigns of US Representatives Michael Capuano and Stephen Lynch, according to a plea agreement filed in court. There is no allegation of wrongdoing by Capuano and Lynch.

Court documents indicate he also improperly funneled thousands more to other political candidates. One of Winn’s real estate companies is also pleading guilty to campaign finance violations and offered to pay $1.5 million in penalties. Prosecutors said Winn tried to use the donations to win public funding for his massive Columbus Center development project in Boston

Although Winn has agreed to plead guilty, federal prosecutors and Winn’s s attorneys have not agreed on the ultimate disposition. Winn’s sentence will ultimately be decided by the judge who is assigned to hear the case, according to records.

Under the agreement, Winn will admit that he personally steered $3,500 to Lynch and $500 to Capuano in 2006 and 2007 in violation of federal campaign finance laws. Both are misdemeanors.

However, the court papers also said that Winn will also acknowledge illegally reimbursing people who made an additional set of donations, worth tens of thousands of dollars, to state candidates.

According to US Attorney Carmen Ortiz’s office, Winn and his company in total allegedly funneled $150,000 in illegal donations through the scheme that began in 2002 and lasted into 2009.

In a statement announcing the charges, Ortiz said that one of Winn’s companies, Winn Columbus Center Limited Partnership, has agreed to pay $1.5 million in fines to settle criminal charges against that entity.

An attorney for Winn, Robert Popeo, portrayed Winn as ignorant of campaign finance laws that would have allowed him to legally give much more money to his favored politicians.

“It emphasizes the hypocrisy of our system when individuals can legally give $4 million to $5 million or more and Arthur Winn gets charged with criminal violations – one for $2,000, one for $2,500 – for giving reimbursements to his family member and close friends,” Popeo said. “That’s hypocrisy.”

He added: “Arthur did not know the severity (of his actions) or the fact that what he was doing could have just as easily been accomplished legally had he known someone who knew how to navigate the system.”

Winn allegedly convinced employees and business contacts to make the donations, and then would secretly reimburse them in violation of federal campaign finance laws, prosecutors said.

He is also accused of directing former employee Martin Raffol to solicit donations. Raffol has pleaded guilty to the scheme to conceal the true source of the campaign donations and to witness tampering. His sentencing has twice been delayed.

In addition to Wilkerson, Lynch and Capuano, Democrats receiving contributions included US Senator John F. Kerry during his presidential campaign, and US Representatives Barney Frank and Edward Markey. Senator Charles Schumer of New York also was sent donations.

Other Democratic candidates getting donations were: Governor Deval Patrick, Lieutenant Governor Timothy P. Murray, Boston Mayor Thomas Menino, Secretary of State William Galvin, now-US Representative William R. Keating when he was the Norfolk district attorney, former attorney general Thomas Reilly, and state Senator Brian Joyce.

Republicans receiving donations included former lieutenant governor Kerry Healey, the Massachusetts Republican Party, the Massachusetts State Republican Congressional Committee and former US senator Robert Smith and former US representative Jeb Bradley, both of New Hampshire.

John R. Ellement can be reached at .

/ vladjr wrote:
Not surprising. Wilkerson was a "partner" at the law firm Roche, Carens & DiGiacomo who Winn used for his development. Winn bailed out Wilkerson for tens of thousands in back taxes and penalties. His friends kicked in plenty too.
10/28/2011 1:34 PM EDT
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/ Bathroom_Bill wrote:
Kerry, Democrat
Menino, Democrat
Lynch, Democrat
Capuano, Democrat
Frank Democrat
Markey, Democrat
Any pattern here?
10/28/2011 1:35 PM EDT
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/ PhoenixSeven3 wrote:
We have the best government money can buy! For all of you folks sipping the FOX New$ kool aid- this is what Occupy is fighting against...
10/28/2011 1:52 PM EDT
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/ TotoroSan wrote:
@Bathroom_Bill
Healey, Republican
MRP, Republican
MSRCC, Republican
Smith, Republican
Bradley, Republican
And your point is what, exactly? To be fair, there is no evidence that any of these politicians either Democrat or Republican knew the contributions violated laws.
What I think this situation proves is how much money from the wealthy pollutes politics in this country, and prevents sound government. Hm. What do you know? There happens to be a whole bunch of folks staying out in the cold saying THE EXACT SAME THING.
10/28/2011 2:02 PM EDT
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/ zebraa wrote:
Using strawmen and conduits to conceal the true source ?? Sounds like using Shell Companies and off shore Intermediates to funnel money undetected for bribes AKA known as the off shore shadow economy. Seeing that it was a LTD partnership why couldn't the takers have been listed as partners (off shore of course).
Oh and By the way and just for a laugh what is his claim to PROMINANCE ???
10/28/2011 2:08 PM EDT
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I being kept from posting!

/ agingcynic wrote:
Let's hope Mr. Winn's health holds up. Another local developer who did the same thing went to meet his maker recently without being held to account.
10/28/2011 2:11 PM EDT
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/ nospamsam wrote:
To go to such extraordinary lengths to make a campaign donation, he definitely got something in return from each and every one of them. Will there an investigation into what these pols promised or gave in return? Winn didn't throw money their way out of the goodness of his heart. He had an expectation.
10/28/2011 2:16 PM EDT
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/ clambelly wrote:
The list of names look VERY FAMILIAR. Even Senator Schumer (My NY Senator.) Funny how they're all in bed together. Former MA 10th Delehunt was roomates with Chuck Schumer in DC, as well as taking contributions from former MA AG Bellotti, who was the 12 year boss of the former MA Asst. AG Christopher Worthington from "LAW Enforcement" MURDER & Government CORRUPTION FAME. Even Ms. Ortiz has roots in the same CORRUPT Boston Fed. Pros. Office. I'm surprised Senator Leahy didn't get in on this cash cow. He's heavily supported being the Chairman of the Senate's Judiciary Oversight & Reform Committee. Just maybe the Senate & House, which are now looking into this, will do something before "Occupy" DOES.

WorthingtonGate ... Where all non-partisan CORRUPTION LURKS.

10/28/2011 2:25 PM EDT
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/ victimnation wrote:
Arthur,looking back was risking jail worth it ? Say hello to Sal,Diane and thousand buck Chuck.
10/28/2011 2:26 PM EDT
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/ Topdog5281 wrote:
Thank GOD for the FEDS...... Please start arresting these criminals. MARTHA COAKLEY HAS DONE NOTHING FOR THE TAXPAYERS in this country.
Other Democratic candidates getting donations were: Governor Deval Patrick, Lieutenant Governor Timothy P. Murray, Boston Mayor Thomas Menino, Secretary of State William Galvin, now-US Rep. William R. Keating when he was the Norfolk district attorney, former attorney general Thomas Reilly, and State Senator Brian Joyce.
Nothing more than cess pool of $%u*...... I hope Arthur Wynn takes them all down.
10/28/2011 2:37 PM EDT
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/ Topdog5281 wrote:
They should also looked into private Developer Joe Fallon Fan Pier project. Who in their right mind would give a private developer 71 Million in taxdollars to help relocate a company that was already based in Massachusetts.
MENINO AND DEVAL PATRICK. Stealing taxpayer money to enrich their friends.
10/28/2011 2:39 PM EDT
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/ beantown01 wrote:
And yet if he was a black 18 year old who sold a bag of weed...he'd...go to jail for how long?
10/28/2011 2:55 PM EDT
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/ Topdog5281 wrote:
This list below is the reason why this country is BANKRUPT. These traitors have sold out America. They have gamed the system against the Middle Class & Poor by regulating laws and stealing the taxpayers money to enrich their friends.
How are those 100K Pensions, Unlimted Healthcare costs, and they still collect Social Security. It's all one Big Scam against the people that actually make America run.
Occupy Boston or Wall Street needs to hold our Govt Officials accountable. It's time to start arresting these people. Menino, Kerry, Capuano, Frank are all political LIFERS. It's time to get REAL JOBS. These people would sell their soul for Greed and Power. Instead they sold the American people out for DEBT SLAVES. This also includes Republican Candiates. Reps or Dems are the same. DIRT
Other Democratic candidates getting donations were: Governor Deval Patrick, Lieutenant Governor Timothy P. Murray, Boston Mayor Thomas Menino, Secretary of State William Galvin, now-US Rep. William R. Keating when he was the Norfolk district attorney, former attorney general Thomas Reilly, and State Senator Brian Joyce.
10/28/2011 2:59 PM EDT
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/ zebraa wrote:
Would everyone in MA. politics who is on the take please raise there right hand.
10/28/2011 3:00 PM EDT
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/ Emetib2010 wrote:
The politicians did not know? I call B.S.
10/28/2011 3:10 PM EDT
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/ icecreed wrote:
PhoenixSeven3 wrote:
We have the best government money can buy! For all of you folks sipping the FOX New$ kool aid- this is what Occupy is fighting against
_____
How do you blame FOX news for this one?? it's all the Demo-rats who are on this payroll??
10/28/2011 3:12 PM EDT
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/ clambelly wrote:
beantown ... didn't you know who took over the drug running in America once they took down the "Organized Crime" aka the Mafia during Iran-Contra days? You know when the Justice Dept. and FBI and "Law Enforcement" were proven to have gone to bed with the "Whitey's" across America. Director Mueller (who was the head of the Boston CRIME task force and Fed. Prosecutor from 1982-1987) was just one of the many in this non-partisan continuity to GOVERNMENT RUN "Organized Crime." There is "NO PUBLIC OVERSIGHT" - Police themselves?
They lie, cheat, steal, murder and even eat their youngin's for themselves in self-service. This is the lowest common denominator in the human species.
WorthingtonGate ... "Where all the self-servers worship with their horned mentor"

10/28/2011 3:36 PM EDT
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/ Charles2008 wrote:
@ icecreed,
You are so witty with your snide remark. No it is not only the dems. Also the republicans. People like him are interested in buying influence, regardless of political affiliations.
PhoenixSeven can rightfully blame Fox news, and their ideological bent that is enabling this kind of behavior. They have been on a constant campaign against the Occupy WITHOUT ever discussing any of the merits of what these people are protesting.
You may not like them, not like what they stand for, not like how they look, not like how they behave, not like what they say; but, you must be dumb and blind not see that the core of their message is sound. To the detriment of everybody's future, the last 30 years saw most people's wealth/income/any other measure not keep up with inflation; while the overall wealth of the country has risen. If you can't see that, you must go back to school and learn how to interpret basic charts. Our current income distribution resembles more 1970's South American countries, than it does what the US used to be during one of our greatest middle class expansion period in our history. If this trend continues, there will not be a middle class, and the biggest culprit is big money corrupting our politics, regardless of who it is, whether rep or dem. It just happens that Fox News is Ok with it, as long as it is the republicans that are being corrupted.
10/28/2011 4:19 PM EDT
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/ CaptainMugford wrote:
Wow, only "up to a year" in prison? For that level of behavior? Our criminal justice system sure is unfair. Oh well, in the post-Citizens United era, he probably could find a perfectly legal way to secretly bribe whoever he wanted.
On another note...is it actually technologically impossible for the Globe to ban some of these habitual trolls?
10/28/2011 4:20 PM EDT
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/ RufusTeaFirefly wrote:
Now, where's that paragon of virtue, that lecturer of moral standards, that "I know what's better for you than you do" purveyor of egotistical fraud named Luther Harshbarger on this issue?
Oh, that's right, Luther was a recipient of Winn's donations when he was a candidate for district attorney, a candidate for attorney general and a candidate for governor.
Gee, Luther, I guess by your standards of always judging others' motives, it appears that YOU have been bought and sold.
Luther's silence, and that of Dave Guarino, his current spokesman whose singular claim to fame was doing his best Raplh Kramden impersonation as Sal DiMasi's spokesman --- hummanna-hummanna-hummanna --- for convicted crook Sal DiMasi, speaks volumes about your own honesty and integrity, now doesn't it --- Luther?
Go away, you fraud!
10/28/2011 4:26 PM EDT
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/ Topdog5281 wrote:
Charles2008,
It comes down to Laws. Wynn should go to jail with the rest of the political hacks. People like Martha Coakley our Attorney General should be investigating corruption in this state but instead she just looks the other way as our political hacks loot the taxpayers.
For Example
Deval Patrick gave 55 Million dollars to Evergreen in taxpayer funds. I wonder how much the executives looted in bonus's. This is not job creation this is nothing more than stealing from the taxpayers and investing their money with your friends.
Don't forget the 46.5 Million in Tax breaks that Deval and Menino gave to Liberty Mutual Insurance company. Who in their right mind would give an Billion dollar insurance company tax breaks to build in the Backbay?
The laws don't apply to our politicans or Elite businessmen like they apply to the average joe. The banks and investment houses should have filed bankruptcy and been wiped out. Instead our politicans bailed them out instead of following the natural economic process. That is why the system is tainted.
Blame the politicans. The taxpayers pay for Govt Organizations to uphold the laws against Wall Street but the FBI and the SEC have let us down.
10/28/2011 4:37 PM EDT
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/ Slow-Learner wrote:
The Massachusetts DEMOCRAT party seems to be over-represented here. And I'm POSITIVE that Chuck Turner and Diane Wilkerson were greased by this liberal democrat criminal in the past.
10/28/2011 4:38 PM EDT
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/ freelance7 wrote:
Winn has a lot more money than DiMasi, Wilkerson or Turner. One benefit of that is his attorney; there's no more powerful attorney in Boston than Popeo, chairman of Mintz Levin. One of the country's biggies.
10/28/2011 5:11 PM EDT
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/ TellTruth wrote:
How do you/Arthur Winn make illegal contributions from a HOUSING COMMUNITY - a publically-subsidized one too? And which hsing communities had their funds illegally $$$siphoned?
10/28/2011 5:42 PM EDT
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