Witness, Burgess both claim they were helping FBI

Thursday, July 26, 2001 | 10:40 a.m.

The dilemma for the jury in the Jerald Burgess federal firearms trial: Which ex-con do you believe?

Burgess, 64, the central figure in the disappearance of a Las Vegas boy 23 years ago and a convicted felon on sexual assault and tax evasion charges in the late 1970s and early '80s, is on trial on charges of being a felon in possession of a handgun, semi-automatic rifle and several cartons of ammunition.

Franklyn Perry, 61, the central figure in a pending trial for a pyramid scheme that allegedly bilked hundreds of investors out of millions of dollars, was a key witness for the defense, although it appeared he did more Wednesday to help the prosecution's case.

Both claimed they were helping the FBI nail the other on potential criminal charges.

Burgess said he went so far after the two were arrested nine months ago to give an incriminating signed statement after an FBI agent said, "We need to make this look good for Frank (Perry)," who Burgess said he thought was the agents' target at that time.

Burgess' attorney Bob Glennen has been building a defense in the courtroom of U.S. District Judge Kent Dawson that alleges "outrageous government conduct." Both he and Assistant U.S. Attorney Peter Ko were expected to make closing arguments this afternoon.

On Wednesday the jury heard both Perry and Burgess deliver convincing yet sharply contrasting testimony -- Burgess in a business suit and Perry in blue Clark County Detention Center fatigues and leg shackles.

Perry testified he was an FBI informant who stuck to limited guidelines and engaged in no illegal acts to get Burgess to sell weapons to undercover agents.

Burgess testified he was "no snitch" but decided to help the FBI after agents -- the same ones who were working with Perry, it turns out -- contacted him and asked him to help them locate what they allegedly said was a missing FBI agent who they thought had been in recent contact with Perry.

Burgess made headlines in the late 1970s as a suspect in the disappearance of 6-year-old Cary Sayegh, son of wealthy local business owners. He was acquitted by a Clark County District Court jury of kidnapping in 1981, but was never charged with murder in the case.

The Las Vegas Sun, under late publisher Hank Greenspun, had launched an investigative crusade to discover Sayegh's fate.

The FBI reopened that case two years ago to find evidence that would lead authorities to Sayegh's body and potential murder charges against his accused killer. Burgess in the early 1980s led authorities to where he thought Sayegh was buried, but only a shoe was found. Burgess has remained an apparent target of authorities for nearly 20 years. There is no statute of limitations for murder.

"I was trying to get information on behalf of the FBI ... to penetrate Mr. Burgess," Perry testified. "It resulted in Mr. Burgess being arrested and charged with a felony ... Yeah, I think I helped the community out."

Repeated questions by Glennen and Ko about Perry being authorized by the FBI to break laws in his information-gathering assignment brought responses of "absolutely not" from Perry, who testified he received $11,000 from the FBI for his work that led to Burgess' Oct. 12 arrest.

The jury also heard that since 1963, Perry has been arrested on numerous charges, including passing bad checks, fraud, grand theft, possession of stolen property and tax evasion. He was on parole after serving 12 years of a 25-year sentence at the time of his recent arrest.

Perry testified that Burgess on several occasions over a period of 30 to 45 days brought up the subject of guns, saying he could provide him everything from handguns to rockets. Burgess testified it was Perry who constantly was bugging him to get him an Uzi, M-16 or submachine gun.

"Jerald Burgess (said he could) provide any type of weaponry I wanted," Perry said, noting he was posing as a businessman who would purchase a range of products, including watches and jewelry, and market them to retail outlets. Burgess, a jeweler by trade, testified he was in the process of starting a handmade jewelry business out of his home and initially thought Perry was a good contact.

Burgess said Perry "fabricated" the weapons testimony, saying it was ridiculous because there was no way he could get his hands on such military weapons.

"I do not own a gun, I do not possess a gun," Burgess testified, saying he got the pistol for Perry after Perry said he needed it to give to his daughter for protection, and threatened to break off business dealings with Burgess if he did not get the gun.

Burgess also testified he had given Perry an expensive ring and watch to sell through a local jewelry store that Perry claimed he co-owned, then was ordered by Perry to get him the high-powered rifle or "you can kiss your watch and ring good-bye," Burgess said, quoting Perry.

When Burgess allegedly first brought up the subject of guns, Perry testified, he called the FBI. When Perry allegedly first brought up the subject of guns, Burgess testified, he called the FBI.