DeBartolo associate heard about alleged shakedown

Natalie Gott

Friday, March 24, 2000 | 2:01 a.m.

BATON ROUGE, La. - A business associate of former San Francisco 49ers owner Eddie DeBartolo Jr. said he went "ballistic" when he heard former Gov. Edwin Edwards tried to shake down DeBartolo one week before the state's 15th river boat casino license was awarded.

Ed Muransky, a former pro football player, testified today in Edwards' federal racketeering trial that he learned of the alleged shakedown on March 5, 1997, the day before DeBartolo was to attend a hearing before the state Gaming Board.

Muransky's testimony today will lay the groundwork for prosecutors' questioning of DeBartolo, which is expected next week.

Edwards, his son Stephen, and five others have been on trial since Jan. 10, accused in a series of schemes to manipulate the way the state awarded riverboat casino licenses. The schemes allegedly began before Edwards took his fourth and final term in office in 1992 and continued after he left office in 1996.

Muransky discussed his relationship with DeBartolo, who became his business partner in the mid-1990s after the death of DeBartolo's father, shopping magnate Eddie DeBartolo Sr.

Muransky and DeBartolo Jr. set up a company called DeBartolo Entertainment Corp. to develop shopping and entertainment centers. One of their first projects was to build a casino in Bossier City, La.

Muransky testified that DeBartolo maintained telephone contact with Edwards throughout the application process, despite warnings from Muransky and a business partner at Hollywood Entertainment, which would help DeBartolo build the casino.

On the night before the final hearing, Muransky said he left DeBartolo in a bar alone with Edwards. After the meeting, DeBartolo told Muransky that Edwards demanded $400,000 immediately or they would have problems getting a riverboat casino license.

"There was going to be a problem with the boat or the license if it wasn't paid immediately," Muransky said.

While prosecutors call the $400,000 payment a bribe, defense lawyers have called it a legitimate consulting fee, pointing out that DeBartolo filed a tax form reporting to the IRS that he paid the money.

Dan Small, Edwards' attorney, showed jurors in Edwards' racketeering trial Thursday that DeBartolo had filed the 1099 form to report the payment for tax purposes.

Word that DeBartolo had filed tax forms about the payment came during cross-examination of FBI agent Geoffrey Santini. It was not clear when the IRS tax form was submitted.

DeBartolo has said the payment was a bribe and pleaded guilty to not reporting a felony to the government.

FBI agents raided Edwards' office and home on April 28, 1997. The payment to Edwards was allegedly made in March 1997.

During cross examination, Small pointed out that Edwards originally said the $400,000 in cash seized from his safe came from timber and cattle sales, gambling winnings and earned income.

Prosecutors have noted that Edwards changed his statement later to say it came from DeBartolo. Small noted that the earned income could have been from DeBartolo, even though Edwards did not mention his name.

That was when he showed jurors the tax form.

Also Thursday, a judge ruled that the trial could continue even though defendant Bobby Johnson was at home resting for heart bypass surgery scheduled for Tuesday.

Johnson's attorney, Patrick Fanning, asked U.S. District Judge Frank Polozola to recess court until he at least knew Johnson's full medical report.

"He has been experiencing high blood pressure to put it mildly," Fanning told Polozola.

Polozola refused, saying court will proceed because Johnson is not involved in the part of the government's case being presented, which concerns the $400,000.

Johnson left court early last week and has been missing portions of the trial since then. He has complained that his blood pressure is high from the stress of the trial, and has been taking medicine in an attempt to avoid surgery.

Federal prosecutors opposed Fanning's request to stop the trial, even temporarily.

Polozola said he will reconsider the situation when the current part of the trial is over and then will decide whether to continue the trial, delay it or remove Johnson from the trial altogether and try his case separately.

He noted that if any witness is asked about Johnson, Fanning has the right to wait to question the witness until Johnson is back in the courtroom.

Johnson's name quickly came up once testimony resumed Thursday, when Small questioned Santini about fingerprints on the $468,000 seized from Edwards' home and safe deposit box.

Santini said he did not recall that Johnson's fingerprints were found on any of the cash.

FBI agents did not find the fingerprints of Edwin or Stephen Edwards, or of DeBartolo or government witnesses Bobby Guidry or Richard Shetler, Santini told Small.

Santini said investigators found only 66 fingerprints and seven palm prints on more than 4,500 pieces of money taken from Edwards' house and safe deposit box.