Analysis: Cooperation likely in Teamsters probe

Monday, July 14, 1997
By Bernard J. Wolfson
Boston Herald

It appears highly likely that Martin Davis, a political fund-raiser at the center of a growing Teamster campaign finance scandal, is ready to cooperate with federal prosecutors, according to legal sources.

Last week's decision by U.S. Attorneys in New York to hold off on indicting Davis and to postpone his hearing for 30 days is strong evidence that a deal is in the works, in the view of former federal prosecutors, who spoke on the condition of anonymity.

Although they have no inside knowledge of the case, these former Justice Department officials said recent court action in the case fits the pattern of cooperation.

That could mean the probe into Teamster election financing improprieties, which broke into the open in Boston, has broadened to target officials within the nation's biggest union and to examine its links to the Democratic National Committee. Davis has strong ties to the DNC.

Herald sources said if Davis had brushed them off, the feds would have gained more leverage by indicting him. If he later decided to cooperate, the indictment could be voided and replaced with a plea agreement.

Davis also waived his right to a hearing within 30 days of his initial court appearance -- another sign he is in a cooperative mood, sources said.

``If I were a betting man and had to put down $100, my bet would be that the decision has been made to cooperate, and they're trying to nail down the details of what the plea and cooperation agreement will look like,'' said one former federal prosecutor.

Davis failed to return numerous phone calls, and his lawyer, Dave Schertler declined to comment on the case.

Davis was named in an FBI warrant on June 5 as the ringleader of an alleged scheme to embezzle money from the Teamsters' general fund and channel it into last fall's re-election campaign of Teamster President Ron Carey. Davis turned himself in to a federal judge in New York on June 6 and was released on bail.

If Davis is indeed cooperating, it most likely means the feds do not believe the buck stops with him. It would also mean they expect Davis to provide evidence that could implicate co-conspirators.

Sources close to the investigation said it is still in its early stages. Other sources said investigators may be looking at officials within the Teamsters national headquarters in Washington. It is not clear whether Carey is a target.

But another former federal prosecutor said it is likely the feds are investigating individuals above Davis rather than those who worked under him.

"Almost inevitably they are going to go after higher-up people,'' this former prosecutor said. "It doesn't make a hell of a lot of sense for the government to give a deal to somebody bigger in order to get somebody smaller.''

But he said it is also possible the prosecutors simply hope Davis will give up a lot of people, rather than any particular big prizes. "They either want quantity or quality,'' he said.

Nancy Stella, a Teamsters spokeswoman, said: "I can only tell you that Ron Carey has denied repeatedly having any knowledge or having in any way participated in any of the things that have been alleged.''

The feds allege a scheme by which some $95,000 of Teamster money was funneled into Carey's campaign using Michael Ansara, a Somerville telemarketer and his wife, Barbara Arnold, to disguise it.

Ansara has pleaded guilty as a co-conspirator, and served up testimony that led to Davis' arrest.

According to a federal complaint, Davis instructed Ansara to overbill the Teamsters for telemarketing work, then used the proceeds to repay his wife for $95,000 she gave to Carey's campaign.

Ansara had similar deals with a printing company and with Citizen Action, a nonprofit activist organization, according to the complaint.

Davis did direct mailing for the Carey campaign, and the money that was allegedly embezzled ended up with his company, the November Group, which was dissolved last month following the charges against him.

More recently, the FBI has been investigating an additional $94,000 Davis received from New York-based Axis Enterprises, a souvenir manufacturer, in connection with work Axis did for the Teamsters.