Steptoe & Johnson
The firm defended Richard Ireland in a case that involved 'pay-to-play' allegations accusing Ireland of bribing Pennsylvania's former state treasurer and Democratic gubernatorial candidate with campaign contributions in exchange for state asset management contracts.
May 28, 2018 at 09:00 PM
3 minute read
This profile is part of the NLJ's 2018 Litigation Department of the Year special package. Find a full list of winners and finalists here.
It might not be pretty, but it's not bribery. That was essentially the argument Brian Heberlig, co-head of Steptoe & Johnson's compliance, investigations, trade and enforcement department, advanced in defense of client Richard Ireland, who was accused of 79 counts of bribery and money laundering in a major political corruption case in Pennsylvania.
The case involved “pay-to-play” allegations accusing Ireland of bribing Pennsylvania's former state treasurer and Democratic gubernatorial candidate Rob McCord with campaign contributions in exchange for state asset management contracts.
It didn't help that McCord pleaded guilty to taking bribes, subsequently agreed to wear a wire in conversations with Ireland, and was the prosecution's key witness at trial.
“We had to embrace the defense that 'pay to play' is not bribery,” Heberlig explained. “Our defense was you may not like this, but there was no quid pro quo. Ireland may have made campaign contributions and received benefits, but they were not tied together.”
The high-profile case began March 9, 2017 in U.S. district court in Harrisburg, Pennsylvania. Heberlig's defense team anticipated having to discredit McCord. However, once on the witness stand, McCord defended his decisions to award contracts to Ireland-affiliated asset managers, praising Ireland's character. Heberlig and his team adapted quickly, and used his testimony to support their defense.
“I think McCord had some regrets, he was thinking about his legacy and how he would be remembered,” Heberlig said. “He said there wasn't a quid pro quo, didn't believe he was being bribed, and said he made his decisions on the merits. We were very surprised.”
On March 27, 2017, at the conclusion of the government's case, U.S. District Judge John Jones III of the Middle District of Pennsylvania stepped in and granted a Rule 29 judgment of acquittal for Ireland. A Rule 29 verdict is final and not appealable. Essentially, the judge ruled that no rational jury could have convicted Ireland based on the evidence presented, even if taken in the light most favorable to the government.
In his decision, Jones felt compelled to say he wasn't condoning the conduct that led to the trial.
“The scenarios that repeatedly played out in this case, I am moved to say, are a product of the commonwealth of Pennsylvania's highly deficient campaign finance laws. These are laws that allow unbridled and unlimited campaign contributions to office-seekers and officeholders from individuals desiring to do business with the commonwealth in one way or another.”
Heberlig said Jones' decision “confirms that the First Amendment requirement of an explicit quid pro quo is alive. Public corruption cases are difficult to win, especially when they are based on campaign contributions.”
|Firm Facts
Name: Steptoe & Johnson
Founded: Washington
Total number of attorneys: 480
Litigators as percentage of firm: 50 percent
Litigators as percentage in D.C.: 50 percent
Litigation partners firmwide: 101
Litigation associates firmwide: 106
D.C. white collar litigation partners: 9
D.C. white collar litigation associates: 12
Keys to Success
- Be flexible and use the unexpected to your advantage.
- Relentlessly prepare and treat everything you do as critically important.
- Savor acquittals but learn from your tough losses—they will stay with you longer and motivate you to win.—Brian Heberlig
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