ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, November 23, 1993                   TAG: 9311230057
SECTION: VIRGINIA                    PAGE: A-1   EDITION: METRO 
SOURCE: GREG SCHNEIDER STAFF WRITER
DATELINE: CHESTERFIELD                                LENGTH: Medium


EMBEZZLING CONVICTION FOR RUSSELL

State Sen. Robert E. Russell was convicted of embezzlement Monday, becoming the first member of the General Assembly since the 1920s to face the prospect of losing his seat because of a felony.

A jury recommended that Russell serve five years in prison for taking $13,650 from a bicycle racing club while he served as its treasurer.

The 51-year-old Republican waited about three hours for the verdict, listened to it without flinching and was allowed to leave on a personal recognizance bond.

"I am physically and mentally very tired. My wife is physically and mentally very tired, and we just want to go home. Now I'm going to leave it at that," he told reporters.

Russell did not say whether he would appeal the decision, and his lawyer did not return a phone call.

State law bars a felon from serving in the General Assembly. The last time a legislator became subject to that rule apparently was in 1926, when Sen. Alfred C. Smith, D-Norfolk, was expelled after it was discovered that he had twice been convicted of forgery under different names.

The last legislator to find himself in somewhat similar straits was another Norfolk Democrat, the late Sen. Peter K. Babalas. In 1987, Babalas was censured, but not expelled, by the Senate after being acquitted on charges of accepting a bribe.

Russell's troubles began in January. The senator, who represents the affluent Richmond suburbs of Chesterfield County, was booted out as treasurer of Richmond Velo Sports. The group was formed in 1990 to support teen-agers who compete in bicycle racing.

During 18 months as its treasurer, Russell helped raise about $22,000. Most of it ended up in his personal checking account. Russell said he used some of the money to cover expenses for his son, Tom, who has been training in Colorado to try out for the 1996 U.S. Olympic cycling team.

Once the club's board discovered that its accounts were virtually dry, it fired Russell and called state police. Soon after, Russell repaid almost $7,000 he claimed he had borrowed from the club.

During closing arguments Monday for the three-day trial, Russell's lawyer said the senator had full authority to borrow or disburse the money and had never intended to hide anything.

"Do you think Mr. Russell - Senator Russell - would've taken the risk of losing everything he has for $13,650?" asked defense attorney Dennis Dohnal.

Russell's son was the proper recipient for the money, Dohnal said, because he was the most advanced of the area cyclists.

But deputy special prosecutor James A. Willett - called in from Prince William County because local officials who know Russell excused themselves - argued that Russell used the money out of arrogance.

Russell showed "a pattern of lies, of subterfuge, of threats and cover-ups," Willett said. "This pattern of abuse and misuse of power was something that he used as a sword throughout this entire episode."

Richmond Velo was the best way for Russell to get money for his son's training, Willett said, because it was tax-exempt, and donors could write off their contributions. Several donors testified they had no idea their money was going to Tom Russell instead of to Richmond Velo Sports.

Willett added that it was ridiculous for Russell to claim he was unsure of financial details; Russell is a mortgage broker and real estate consultant and one of only three Republicans on the Senate Finance Committee.

Russell was elected to the House of Delegates in 1981. He was elected to the Senate in 1983, 1987 and 1991. He will be sentenced Jan. 25, about two weeks after the General Assembly begins its 1994 session.

State law apparently allows Russell to stay in office until his appeals are exhausted. However, Senate rules permit a vote at any time to expel him. It would take a two-thirds majority to remove him from office.



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