Update: Retrial of ex-Roger Williams executives begins
5:03 PM Tue, Sep 09, 2008 | Permalink
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W. ZACHARY MALINOWSKI Robert Palazzo, a Democrat who represented the Silver Lake and Olneyville neighborhoods in Providence from 1994-1998, testified that he voted in June 1997 Palazzo, who frequently smirked while on the witness stand, told the court that, if you wanted to get things done, that you had "to be on the team,'' meaning a supporter of Senate Majority Leader Paul Kelly. The bill passed, but was vetoed by then-Gov. Lincoln Almond, a Republican, setting up another battle in the legislature over whether to override the governor's veto. Palazzo said that Providence city officials, led by Mayor Vincent A. Cianci Jr., met with the delegation of nine senators from Providence and urged them to side with Almond. At the time, there was grave concern that for-profit hospitals could adversely affect the quality of health care in Rhode Island. Palazzo testified that Celona, who had supported Urciuoli and opposed the legislation, badgered Palazzo to meet with Urciuoli at Roger Williams Hospital. They met and Urciuoli told him that the hospital was opposed to the legislation. He said that Celona told Urciuoli that they were on his side. ``Whatever, you need,'' he said. ``Whatever we can do for you.'' Palazzo said that he went along with Celona as part of his opposition to Senate boss Kelly. But Kelly prevailed, and the Senate overrode Almond's veto, effectively killing the Roger Williams merger. After the vote, Palazzo and Celona found all of the furniture removed from their Senate offices and placed in the hallway. ``We were evacuated from our office,'' Palazzo said. A few months later, Palazzo lost in his bid to get relected to the Senate. This morning, as the trial started, the jury listened to opening statements that provided very different portrayals of Urciuoli, the hospital's former president and CEO, and of Driscoll, the hospital's former vice president. Dulce Donovan, an assistant U.S. attorney, said Urciuoli and Drisoll hired then-state senator Celona as a consulant to influence legislation at the State House that directly affected the hospital. She said they "funnelled" more than $260,000 to Celona over a five-year period beginning in February 1998. She said the bribery scheme was more sophisticated than the traditional "bag of cash" exchanged in a back alley. Donovan also said Urciuoli and Driscoll frequently met with Celona to develop strategies that would be beneficial to the hospital. Celona is serving a 2 1/2-year federal prison sentence on corruption charges stemming from his dealings with the hospital, CVS and Blue Cross and Blue Shield of Rhode Island. Celona is not expected to testify. Michael Connolly, Urciuoli's lawyer, countered Donovan's opening statement. He said there was nothing untoward about the hospital's consulting arrangement with Celona. He said it was all done above board and that Celona worked hard visiting senior centers, hosting a cable television show and promoting the interests of the hospital. "We believe there will be no evidence of a bribery deal whatsoever," Connolly said. John Celona was given a real job. He was given real work, and he performed that work. Urciuoli and Driscoll were convicted after a trial in 2006, but that verdict was overturned because of flawed jury instructions. Judge Mary M. Lisi adjourned court today at 1 p.m. The trial resumes tomorrow at 9 a.m. in U.S. District Court. 
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