Jury convicts associate of ex-Ariz. Rep. Rick Renzi, acquits 2nd in case with corruption ties

By Bob Christie, AP
Thursday, July 8, 2010

Associate of ex-Rep. Renzi guilty, 2nd acquitted

PHOENIX — A federal jury in Tucson convicted an associate of former U.S. Rep. Rick Renzi of conspiracy and embezzlement charges, but acquitted a second man of insurance fraud and conspiracy Thursday.

The case is tied to allegations that the former Arizona congressman looted his family insurance business to fund his campaigns and personal expenses.

Andrew Beardall, 39, was acquitted of conspiracy and two counts of insurance fraud, said his attorney, Pete White of Washington. Beardall, of Rockville, Md., was the Arizona insurance firm’s president and lawyer from late 2002 through 2003.

Former company accountant Dwayne Lequire, 51, was convicted of conspiracy and eight of 10 counts of embezzlement, White said. The jury acquitted him on the other two counts.

Lequire’s lawyer, Skip Donau of Tucson, didn’t immediately return a message Thursday seeking comment.

“The real story with the case was this was a political prosecution. They were seeking to convict Mr. Beardall based not on what he had done, but based on what Mr. Renzi had done,” White said. “We’re gratified that the jury could see that Mr. Beardall was innocent, and he looks forward to moving on with his life.”

A U.S. Justice Department spokeswoman said prosecutors would not comment until Friday.

Renzi faces charges in the insurance case but will be tried later.

He also is accused with a business partner of engineering a swap of federally owned land to benefit himself and the partner. Renzi has pleaded not guilty.

Beardall was accused of helping cover up Renzi’s alleged siphoning of $400,000 from the family insurance company to run his congressional campaign. Specifically, he was accused of making false statements and reports to two state insurance regulators.

Lequire was accused of helping Renzi cover up the looting of premiums paid by insurance customers.

Renzi is appealing rulings made by trial court Judge David C. Bury denying a constitutional challenge to his 47-count indictment. That appeal has put the former three-term Republican lawmaker’s case on hold.

Last month, the judge blocked prosecutors from using wiretaps collected by federal investigators from being used at Renzi’s trial. Bury ruled that FBI agents and federal prosecutors “conducted an unreasonable wholesale interception of calls they knew to be attorney-client communications.”

The initial indictment against Renzi was unsealed in February 2008.

Renzi represented Arizona’s sprawling 1st Congressional District before declining to seek re-election in 2008.

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