Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, November 20, 1993 TAG: 9311200189
SECTION: VIRGINIA PAGE: C-2 EDITION: METRO
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
Russell, testifying on the second day of his embezzlement trial in Chesterfield County Circuit Court, said he never tried to hide the expenditures and never intended to rob other young cyclists of money raised by the group.
Special prosecutor Paul Ebert said Russell used the tax-exempt Richmond Velo Sports for personal fund raising. The group was formed in 1990 to raise money to help amateur bicycle racers compete.
"You needed a vehicle to get money you wouldn't otherwise get to help your family," Ebert said.
Russell said that as treasurer of Richmond Velo Sports, he had the right to raise and spend money for whatever need arose.
"The corporate purpose was there, and that was what my son needed. I had a bona fide need, darn right," Russell said.
Because Thomas Russell was the most advanced rider affiliated with the club, he deserved the money, Russell said.
"My son was the team member who was fulfilling what was the corporate purpose to the fullest degree. My son had the greatest need," Russell said.
Russell said he saw nothing wrong with making fund-raising appeals on Senate stationery. Russell also said it was not improper to assure the head of the state Blue Cross and Blue Shield in one fund-raising letter that he would help the executive "tell your side of the story" to lawmakers looking at a new health plan for state employees.
Russell is accused of taking $13,000, which he said he applied to his son's expenses in Colorado Springs, Colo., site of the U.S. Olympic cycling training center.
Russell was indicted in July, seven months after the club fired him as treasurer. Russell helped form the club in 1990.
Russell faces up to 20 years in prison if convicted. His trial is expected to conclude Monday.
On Thursday, a state police investigator testified that Russell raised more than $20,000 from February 1991 to December 1992 for Richmond Velo Sports.
The investigator said about one-third of the money was spent on cyclists while about two-thirds of the money ended up in Russell's personal checking account.
It is unclear how much money went to Thomas Russell, who moved to Colorado in January 1992. Russell testified Friday he spent more than $22,000 for rent, groceries, equipment and other expenses for his son in 1992.
Thomas Russell is training to become a member of the U.S. cycling team at the 1996 Olympics.
by CNB