DEMOCRAT DIRTY LAUNDRY: Tierney and Wife Dined “In Full View” of Illegal Betting Ring

SPIN CYCLE: Then-Speaker Pelosi Promised that Democrats Would “Demand the Highest Ethics from Every Public Servant”:

“Our goal is to restore accountability, honesty and openness at all levels of government. To do so, we will create and enforce rules that demand the highest ethics from every public servant, sever unethical ties between lawmakers and lobbyists, and establish clear standards that prevent the trading of official business for gifts.” (Nancy Pelosi’s “A New Direction for America,” Page 21)

RINSE CYCLE: Tierney and His Wife Visited the Office of His Brother-in-Law’s Illegal Caribbean Gambling Ring, and Dined “In Full View” of the Ring’s Phones and Computers:

“U.S. Rep. John Tierney’s wife, Patrice, stood by her man yesterday during a heated grilling in the trial of her accused gambling kingpin brother Daniel Eremian, but Republicans and Democrats agree her words could be used against him when the 6th District congressman runs for re-election next year.

“’The facts place Congressman Tierney and his wife both physically and financially at the heart of this illegal betting ring. Continuing to claim ignorance to the entire scheme is absurd. Congressman Tierney is either clueless or is withholding information from the public. Neither is acceptable for a sitting congressman,’ said Tim Buckley, spokesman for the state Republican Committee.

“Eight-term incumbent John Tierney already faces GOP challenges from former state Sen. Richard Tisei of Wakefield and attorney Bill Hudak, who tried to unseat him last year. A sure sign of vulnerability will be if John Tierney’s own party puts forward a candidate, said Democratic political analyst Louis DiNatale: ‘People have jumped in and said this (trial) is a silver bullet and he’s dead in this era of anti-incumbency, but it’s not. Is it a serious problem? Yes. Can he handle it? Let’s see how good he is.’

“Testifying for about three hours under a grant of immunity, Patrice Tierney, 60, admitted yesterday she could have paid herself as much as $223,047 from a multimillion-dollar bank account she managed for her fugitive brother Robert Eremian that prosecutors claim was flush with millions in illegal gambling proceeds — and that she never reported any of it as income.

“Tierney testified she and her husband visited Sports Off Shore’s headquarters in Antigua twice — most recently in 2009. But she said dining in full view of offices where phone and computer bets were being taken didn’t raise any red flags with her. The judge granted her spousal privilege from testifying when a prosecutor asked if she ever sought advice from her husband on the legality of the operation.

“An admittedly nervous and at times argumentative Patrice Tierney, a wedding and banquet planner at Salem’s historic Hawthorne Hotel, appeared blindsided when U.S. Attorney Fred Wyshak Jr. showed her an exhibit purporting that between 2004 and 2010 she cut herself $173,047 in checks and wrote another $50,000 in checks to her late mother, which were then signed over to her.

“Tierney’s lawyer, former U.S. Attorney Donald K. Stern, told reporters his client faced no tax liability because, ‘whatever she got’ were ‘gifts’ from a family member. (Laurel J. Sweet, “Pundits: Spouse’s Testimony Harms Rep,” Boston Herald, 11/22/2011)

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“After his wife pleaded guilty to aiding and abetting the filing of false tax returns last fall, Congressman John Tierney said she had been ‘deceived’ by her brother about the true nature of his work on the island of Antigua, where prosecutors say he ran an illegal, offshore betting operation.

“But yesterday, Patrice Tierney appeared to contradict that assertion, as she faced three hours of questioning about her handling of $5 million that passed through bank accounts held jointly by her and her brother, Robert Eremian.

“’Are you telling this jury, under oath, that your brother is still a gambling consultant?’ prosecutor Fred Wyshak asked.

“’Yes,’ Tierney responded.

“Her lawyer, citing spousal privilege, cut off a line of questioning from a federal prosecutor about whether she had discussed with her congressman husband what, if anything, he had noticed during two visits to Robert Eremian’s home.

“It’s her other brother, Daniel Eremian, and Todd Lyons, a Beverly man who allegedly worked for Sports Off Shore, who are on trial in U.S. District Court in Boston, where Patrice Tierney, 60, took the stand yesterday as a witness for the prosecution.

“But most of the questions yesterday concerned Robert Eremian, currently a fugitive believed to be living in Antigua, which won’t extradite him to the United States to face charges.

“Tierney was accompanied to court by her lawyer, Donald Stern; her spokeswoman, Jennifer Flagg; and a family friend who was not identified. John Tierney, a Salem Democrat, was not in court.

“Tierney, who spent a month in jail and is now on probation, acknowledged yesterday that between 2004 and last year she took approximately $223,000 in what she described as ‘gifts’ from Robert Eremian and her mother, Mary, who lived off money Robert Eremian supplied to her.”

….

“But she insisted yesterday, despite her plea last fall to being ‘willfully blind’ as to the true source of the money her brother was sending, that she had no reason to doubt his claim to authorities that he was working as a ‘software consultant.’

“’He’s very good with software,’ she testified.

“’You reported his income was commissions from his consulting,’ Wyshak said.

“’It’s my belief it was true, that he was a consultant,’ Tierney said during testimony that quickly took an adversarial tone, even though she was the government’s witness, testifying under an immunity agreement.

“’I don’t know who the owner (of the off-shore betting company) is,’ Tierney continued.

“’You understand you’re under oath and your immunity agreement doesn’t protect you if you lie,’ Wyshak responded.

“Tierney insisted that even though her brother owned the home where she had seen people on computers and using phones, in a room where there were also television sets tuned to various sporting events, that she had no reason to question the arrangement.

“Nor did she question the amount of money coming into the United States from someone who claimed to be a software consultant.

“Later in the morning, she conceded that she had some concerns about the nature of the business, concerns that were eased by a 2002 memo detailing an agreement between federal prosecutors, Robert Eremian’s lawyer and a probation officer that he could return to Antigua to work as a ‘consultant.’”

….

“Tierney made five trips to her brother’s home, twice with her husband.

“’And he was present and he observed the operations?’ the prosecutor asked.

“’He dined there,’ Tierney said.

“Later, Stern and Flagg questioned the relevance of questions about the congressman.” (Julie Manganis, “Tierney’s Wife Says She Still Believes Brother is a ‘Consultant,’” Newburyport News, 11/22/2011)

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