Feds bring new charge against former speaker DiMasi

He is accused of pocketing $57,000 that a Burlington software firm funneled to him through an intermediary, a longtime law associate. The software firm, Cognos, won $17.5 million in state contracts while DiMasi and three associates were being paid generously by the company or its sales agent.

The new indictment adds a new count of extortion to the previous charges, which include conspiracy and honest services fraud. Extortion carries a penalty of up to 20 years in federal prison.

Newly disclosed emails between Vitale and one of his partners describe how Genesis was formed. The scheme was cooked up by one of the partners, who urged Vitale to call "since I have an idea about an arrangement which will benefit you, me, (another partner) and Sal." The two other partners were Thomas Neve and Paul Grant.

Another email describes how the profits would be divvied up among the four partners, who put up $15,000 apiece. Vitale put in $30,000 -- $15,000 of which was meant to cover DiMasi's share.

Genesis was awarded a three year-$1.4 million contract to run the state Transportation Building in 2006, just a few months after the company was formed. The firm had also bid on contracts to run other public buildings, including the federal courthouse where DiMasi was indicted earlier this year and where the charges were filed today.

Vitale had materials relating to Genesis delivered by courier to DiMasi at his State House office in February 2006. DiMasi assigned a top, unnamed staffer "to help Genesis in its effort to acquire building management contracts for state, local and federal government buildings," the indictment said.

The charges do not say explicitly how DiMasi helped the company win contracts, if at all.

The Globe reported in March that federal investigators had broadened their probe into the business dealings of DiMasi and his associates to see if DiMasi played a role in securing contracts for Genesis.

At the time, state officials denied ever being contacted by DiMasi or his staff in connection with the state Transportation Building contract.

When it was awarded the contract, Genesis knocked out a company that had held the contract since 1992.

DiMasi, Vitale and two other men-- lobbyist Richard McDonough and Cognos independent sales agent Joseph Lally -- were originally charged with conspiracy for allegedly orchestrating a scheme that allowed DiMasi to pocket tens of thousands of dollars from Cognos while he was using his powerful office to make sure the company won state contracts.

Cognos and Lally allegedly paid more than $1.8 million in undisclosed fees to Vitale and McDonough as the company was seeking millions of dollars in state contracts.

DiMasi's lawyer, Thomas Kiley, said today the new allegations were “not a surprise” because the judge had been urging federal prosecutors to file additional charges soon, if they had them.

“It advances additional theories,” Kiley said. “We will plead not guilty to them and prove our innocence in the court.”

Vitale's lawyer, Martin Weinberg, today repeated his assertion that Vitale did nothing wrong. He has said there was nothing irregular in the awarding of the Transportation Building contract, handed out by the state's Division of Capital Asset Management.

"The government is wrong about its factual allegations and its legal theory, and Vitale vigorously asserts the evidence will demonstrate he's innocent," said Weinberg, adding that it was "ironic" that the government filed charges on the same day the US Supreme Court agreed to review a case against the former chief financial officer of Enron.

Both cases rely on the same law -- the federal honest services fraud statute -- which allows prosecutors to charge officials who they claim have deprived the public of their right to honest government.

During the three-year management agreement, which has since expired, Genesis received a management fee of $70,000 a year and nearly $400,000 to cover the salaries of Genesis on-site property management staff. The company also had the authority to put out bids and award maintenance, operations, and repair work using an annual budget of more than $7 million.

The building, encompassing 900,000 square feet at the corner of Charles and Stuart streets, houses the Executive Office of Transportation, the Massachusetts Turnpike Authority, the Massachusetts Bay Transportation Authority, the Massachusetts Highway Department, a retail and restaurant complex known as CityPlace and a two-level parking garage.

The Globe reported that investigators were also reviewing a 2007 bid by Genesis to operate the Moakley federal courthouse in Boston, where one of the partners had previously worked, the official said. That bid was not successful.