Agents want to question beverage agency head

Federal agents working on a bribery investigation involving liquor licenses went last week to deliver a subpoena to the state Alcoholic Beverages Control Commission and speak with its chairman, Eddie J. Jenkins. But Jenkins was not in the office.

He had already been put on administrative leave by his boss, state Treasurer Timothy P. Cahill, over the possible diversion of state reimbursement money.

Jenkins confirmed in an interview that he was placed on paid leave over the handling of $10,000 that was placed in his bank account by the state, funds he was supposed to use to pay the law firm of Holland & Knight after it defended him, in his capacity as chairman, in an unrelated ethics case.

Jenkins denied he diverted the money and said the law firm has been paid.

Jenkins said the problem arose when the treasury deposited the $10,000 directly into his personal account, rather than paying the law firm, as he had expected.

"When I discovered it, the amount was paid immediately and directly by me to the law firm," he said. "We could have resolved this the next day, but after five years of chairman this is the type of respect you get."

Cahill, who oversees the commission, declined to comment on Jenkins's leave. According to two state officials, Cahill has been unhappy with his performance for several years. Cahill appointed him to the post in 2003.

The ABCC said Jenkins' leave had nothing to do with the broadening investigation that resulted in the arrest on bribery charges last week of state Senator Dianne Wilkerson.

Jenkins has been ensnared in that probe because the ABCC approved a liquor license for a nightclub operator who was allegedly paying bribes to Wilkerson to help with the application. An FBI affidavit filed in the case says Wilkerson told the nightclub operator in a tape-recorded conversation that she had spoken with Jenkins, among a host of other officials, about securing the approval.

Ralph Sacramone, ABCC's executive director, issued the following statement: "The chairman is on administrative leave on a personnel matter unrelated to the events that transpired this week. Beyond that, we have no comment."

The Treasury is undertaking an internal inquiry, officials said.

"This conflict between the treasurer and myself precedes the Wilkerson investigation and by no means will it impede or obstruct my full cooperation with federal authorities," Jenkins said.

A state official said Jenkins's leave from his $108,000 a year post began about two weeks ago, after questions surfaced about the legal payment the agency had made to him.

Jenkins said he sought the counsel of Holland & Knight a year ago when the state Ethics Commission was investigating allegations that Jenkins had allowed political considerations to affect his appointments of ABCC investigators. He was cleared in November, he said. Of $52,000 he owed Holland & Knight, the Treasury agreed to pay $10,000, he said.

According to the state official, Jenkins asked the Treasury to reimburse him for the expense and the Treasury issued him a check. But about two weeks ago, the official said, a lawyer with the firm called the Treasury looking for payment.

FBI agents visited ABCC's downtown offices on Tuesday seeking all phone records and e-mails between the ABCC and Senate President Therese Murray, City Council president Maureen Feeney, and city councilors Chuck Turner and Felix Arroyo. Agents also sought to talk to Jenkins, who was not there, the official said.

Jenkins, one of the highest ranking African-Americans in state government, was named amid fanfare. A popular lawyer who lives in Roxbury, Jenkins ran for district attorney and City Council in Boston. A former professional football player, he has worked as a prosecutor, mediator, and arbitrator.

The ABCC approves all liquor licenses in the state after local cities and towns give their own approval. Its investigators also enforce all laws related to alcohol sale and consumption.

A press release issued when Jenkins was appointed described the ABCC chairman as the official "responsible for setting the general policy of the agency, for providing direction to the senior staff regarding overall operation and management, and for observing hearings."

He is chairman of a three-member board. One, Suzanne Iannella, has been appointed to the Boston Licensing Board and will step down from her post at ABCC. Her successor has not been chosen, officials said.