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Lally pleads guilty and promises to help prosecution in DiMasi corruption case

Print | Comments () Posted by John Ellement March 8, 2011 02:05 PM

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By Andrea Estes and Scott Allen, Globe Staff

One of the codefendants in the corruption case against former House speaker Salvatore F. DiMasi pleaded guilty to conspiracy, extortion, and mail and wire fraud this afternoon, in a plea agreement that requires him to help the prosecution build their case against his three codefendants.

Joseph P. Lally Jr., the salesman who sold the state two separate multimillion-dollar software contracts at the center of the case, calmly answered, "Yes, your honor," when asked by US District Court Chief Judge Mark L. Wolf whether he was guilty of eight charges.

Under the agreement, prosecutors recommended Lally serve only two to three years in prison as long as he assists the prosecutors.

"Today, I accepted responsibility for my actions," said Lally, a North Reading resident, speaking to reporters outside the federal courtroom in Boston on his 50th birthday. "It's the first step toward moving forward and putting this whole matter behind me."

"I am very fortunate to have a very loving wife and a very supportive network of friends and family," said Lally.

Lally, DiMasi, and two DiMasi friends – Richard Vitale and Richard McDonough – are accused of colluding to steer $17.5 million in contracts to Cognos, a Burlington software firm, in exchange for cash, including $65,000 funneled to DiMasi through a former law associate.

DiMasi resigned as House speaker in January 2009 amid multiple state and federal investigations.

DiMasi attorney Thomas Kiley and William Cintolo were in the Boston courtroom this afternoon when Lally pleaded guilty, perhaps hoping to glean some insight into what Lally will say during the upcoming trial.

Lawyers for the remaining defendants say they will not change their not-guilty pleas as a result of Lally's reversal.

The trial against the remaining defendants is scheduled for April 27.

Read more about the investigation that led to the charges against DiMasi here.