Judge refuses to overturn jury verdict in DiBella case
In a decision, Senior U.S. District Judge Ellen Bree Burns rejected DiBella's motions to throw out the verdict and grant him a new trial.
The federal Securities and Exchange Commission filed a lawsuit against DiBella accusing him of breaking the law by taking a so-called "finder's fee" of $374,500, in a scheme with former state Treasurer Paul Silvester involving a state pension fund investment.
SEC lawyers said DiBella did nothing more for the money than ask Silvester over the phone to increase the investment. The finder's fee came from a $75 million investment in state pension funds Silvester made with a private equity fund run by Thayer Capital Partners in Washington in 1998.
Silvester was later convicted on corruption charges and served four years in prison for taking bribes and kickbacks.
DiBella defended himself against the SEC lawsuit by saying the deal with Thayer was sound investment for the pension fund and he deserved the fee because he worked hard on the transaction.
SEC lawyer Luke T. Cadigan said Wednesday that he likely will seek to have DiBella forfeit the $374,500 fee plus interest that has been earned since he received the money in 1999. Cadigan also wants DiBella to pay a fine equal to the fee and interest.
The forfeiture, interest and fine could total about $900,000.
DiBella had said that he would "more than likely" resign as chairman of the Metropolitan District Commission, a regional water and sewer agency based in Hartford, if his motion to overturn the verdict was rejected.
DiBella, however, said Wednesday that he has no intention to resign from the post, but he added he had not decided whether to run for re-election when the chairman's term ends in three months. He said his work at the agency has never been affected by the SEC lawsuit.
Several MDC commissioners called for DiBella to resign from the chairmanship after the guilty verdict. A proposal to express no confidence in DiBella's leadership was rejected after a 16-11 vote.
MDC board member Jeff Wright said he intends to call DiBella and ask him to resign.
DiBella was considering challenging Burn's decision.
"One of the options, a strong option, is an appeal," DiBella said.
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