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Thursday, September 30, 2004

Prosecution witness testifies 'more for the defense'

Terry Dobyns and Clif Coleman, both called to testify by the prosecution, had good things to say on the stand about Richard Burrow.

CHARLOTTESVILLE - Called as a witness for the prosecution here Wednesday in the federal fraud trial of former National D-Day Memorial Foundation president Richard Burrow, Terry Dobyns said after he left the courtroom that his testimony was "more for the defense."

Dobyns, a contractor from Lynchburg whose company handled land grading and other work for the first phase of the memorial's construction, was one of several witnesses as the prosecution wrapped up its case. Both on the stand and outside the courtroom, Dobyns made his support for Burrow clear.

"Fifty-six miles per hour, that's what this case is about," Dobyns told The Roanoke Times outside the courtroom after he testified. "Doing one mile over the speed limit. That's the way most people feel."

And during a charged exchange with a prosecutor, the foundation's main contractor, Clif Coleman, would not testify that his opinion of Burrow had changed based on the prosecution's allegations.

Burrow is charged with fraud in connection with how he raised money for the $25 million Bedford memorial.

Prosecutors Tom Bondurant and Patrick Hogeboom have presented witnesses and evidence they say show Burrow misrepresented facts to secure millions in loans from banks, private donors, and the commonwealth of Virginia for the project. They have also argued that his financial mismanagement left the foundation at least $5 million in debt.

Dobyns testified that before he signed onto the project, Burrow told him payment could be a drawn-out process.

"It was understandable that this was a fund-raiser, and I had no problem waiting for my money," said Dobyns, who added that he was honored to be part of the project.

Though not asked to do so by the prosecutor, Dobyns recounted for the jury that on June 6, 2001, when the memorial was dedicated, Burrow helped elderly veterans from buses and made sure there were golf carts to take them to the site and portable toilets to take care of their needs.

"Richard was out front, not behind," Dobyns testified. And he said he thinks the foundation no longer owes him money.

As Dobyns left the courtroom after his testimony, he stopped to shake hands with Burrow's father, John Burrow.

Earlier Wednesday morning, the president of construction company Coleman Adams, Clif Coleman, testified that the foundation still owes his company $1.5 million of the $8.9 million it billed for the project.

Coleman confirmed to Bondurant that he almost stopped construction and pulled his company off the project in the months leading up to the dedication because of unpaid bills. He stayed on in part because Burrow told him the foundation was expecting money from the commonwealth. Coleman also confirmed that Burrow made representations to him about when bills would be paid that were not fulfilled.

After Burrow's resignation in late June 2001, Coleman's Lynchburg-based company filed a lien against the memorial and asked if board members would guarantee legally that they would get paid, Coleman confirmed. He also confirmed that the lack of payment has not been easy on his company.

But Coleman also pointed out that in the spring of 2001, Burrow dispensed about $2.2 million to repay his company as soon as the foundation received a donation and a bank loan. Before the financial problems in early 2001, the foundation had sometimes even paid the company early, Coleman testified.

Coleman also spoke highly of Burrow. He described working with Burrow as part of a team effort, and said they all had the same goal in mind - to get the project finished in time for the dedication date of June 6, 2001, and the visit of President Bush.

"Like everyone else, we had faith that it wouldn't sink because of what it was," Coleman testified.

When Coleman learned of Burrow's resignation, he sent him a letter in which he said he was disappointed to learn of Burrow's departure, but understood that he had health problems. Coleman went on in the letter, which was admitted into evidence in court, to talk about the good things he and Burrow had accomplished.

Bondurant then asked Coleman if he would have as high an opinion of Burrow if he knew he was putting off the Cold Springs Granite company, a creditor the foundation owed more than $267,000 to when Burrow resigned.

Coleman resisted replying a few times, then said, "I don't see where this is going, really."

Bondurant pressed him on whether his opinion of Burrow would change if he knew he committed fraud. Coleman responded that those allegations had not been proved. Finally, he said, "I don't know."

As Coleman left the stand, he nodded to Burrow, who nodded back. Most prosecution witnesses have not appeared to acknowledge Burrow as they have left the stand.

Richard Ress, a case agent from the Federal Bureau of Investigation, testified as the prosecution's last witness. He referenced the foundation's bank accounts and noted that the balance of the account earmarked for restricted gifts for the education center never went above $104,000.

One of the allegations against Burrow is that he illegally used restricted funds for the education center to pay off other costs, in violation of donor wishes.

But on cross-examination, defense attorney John Fishwick pointed out that Ress had sent an e-mail to someone associated with the foundation that said using restricted gifts for other purposes is not illegal.

Ress did not deny that he wrote the e-mail, but said that his explanation was narrow because of the ongoing investigation. He said that using restricted funds for another purpose would not in and of itself be illegal, but would be as part of a larger scheme.

After federal Judge James Turk sent the jury home, he decided to dismiss one of the mail fraud charges, ruling that the allegation was redundant to allegations in other count. He took under advisement a request to drop a second mail fraud charge.

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