THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, March 8, 1996 TAG: 9603080604
SECTION: LOCAL PAGE: B7 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: Medium: 54 lines
Harvard University law professor Alan M. Dershowitz told a federal appeals court Thursday that former United Way of America president William Aramony was unjustly convicted of defrauding the charity.
Dershowitz, whose long list of celebrity clients includes O.J. Simpson, Mike Tyson and Claus Von Bulow, told the 4th U.S. Circuit Court of Appeals that prosecutors prejudiced the jury by detailing Aramony's sexual affairs.
``That diverts attention from what the real issue in this case was, which was the diversion of funds,'' Dershowitz told the three-judge panel.
Lawyers for two former United Way aides convicted at the same trial with Aramony made similar arguments.
``They were convicted because of their association with Mr. Aramony and no one could get away from the sexual testimony that permeated that courtroom,'' said Richard D. Heideman, attorney for former United Way chief financial officer Thomas J. Merlo.
But Assistant U.S. Attorney Randy I. Bellows said the testimony was relevant because Aramony misused United Way funds to subsidize his sexual affairs.
He also disputed Dershowitz's contention that the prosecution unnecessarily pointed out that trial witness Lori Villasor was 17 when she began an affair with the then-married Aramony.
``Unless we had a bag over Ms. Villasor's head, the jury would have been able to observe what age she was,'' Bellows said.
Bellows said U.S. District Judge Claude M. Hilton, who presided over the trial last year in Alexandria, refused to allow detailed testimony on the affairs.
``Judge Hilton sanitized the testimony of these women,'' Bellows said. ``He kept out a lot of evidence that we thought was relevant and germane.''
The appeals court judges appeared skeptical of Dershowitz's argument that Hilton allowed too much testimony about the affairs.
``If anything it seems to be that the court bent over backwards not to allow graphic details,'' Judge Michael Luttig said. ``This is a case regrettably about the misuse of funds for personal, sexual purposes.''
Aramony, 68, is serving a seven-year term for conspiracy, tax and fraud convictions. Merlo, 65, is serving 55 months in prison and Stephen Paulachak, 51, who headed a United Way spinoff company, is imprisoned for 30 months.
Aramony and his two former aides were convicted of defrauding the charity out of about $600,000.
The appeals court usually rules a few months after hearing arguments.
KEYWORDS: UNITED WAY EMBEZZLEMENT by CNB