Pubdate: Fri, 27 Oct 2000
Source: Inquirer (PA)
Copyright: 2000 Philadelphia Newspapers Inc.
Contact:  400 N. Broad Street, Philadelphia, PA 19101
Website: http://www.phillynews.com/inq/
Forum: http://interactive.phillynews.com/talk-show/
Author: Angela Couloumbis and Dwight Ott

DEALERS TO TESTIFY ABOUT MILAN

As Jury Selection Ended, Prosecutors Named 2 Key Witnesses Who Would
Talk About Camden's Mayor.

CAMDEN - Convicted drug lord Jose Luis "J.R." Rivera will take the stand in 
the federal corruption trial of Camden Mayor Milton Milan to testify that 
the $65,000 loan he gave Milan in 1994 came from proceeds of his 
multimillion-dollar cocaine ring, federal prosecutors said yesterday.

Confessed drug dealer Saul Febo will also testify at Milan's trial about a 
free car he helped Milan obtain in late 1996 from Camden businessman 
Domenic Monaco, whose company held the city's towing contract, prosecutors 
said.

Assistant U.S. Attorneys Renee M. Bumb, who will prosecute the case with 
Mary A. Futcher, told a federal judge yesterday that the government also 
wants to introduce evidence of Milan's relationship with both Rivera and 
Febo prior to the 1994 loan to establish that they were involved with 
drugs. U.S. District Court Judge Joel A. Pisano will rule on that issue 
before opening statements Nov. 6.

That evidence would include testimony about how Milan gave Febo his start 
in Camden's drug business in 1985 and taught him the trade; purchased a 
kilogram of cocaine from Febo in 1992; and told Febo in 1994, while the two 
were getting high on marijuana, that he intended to buy another kilogram of 
cocaine.

It would also include testimony from Rivera that he frequently gave Milan 
cash loans, including $2,500 in 1992, $1,000 in 1993, and $20,000 in the 
summer of 1994. At one point, according to a trial brief filed by 
prosecutors, Milan owed Rivera $26,500.

The stunning revelations came on the fourth and final day of jury selection 
in Milan's trial. The final jury pool consists of nine white and three 
African American members; eight women and four men. There are also four 
alternate jurors.

Milan is accused in a 19-count indictment of accepting cash and gifts from 
organized crime, soliciting free home renovations from city vendors, 
extorting a political appointee, and laundering drug money.

Milan, who was elected to City Council in 1995 and to the city's top job in 
1997, has denied all charges.

When asked about yesterday's developments, Milan, who appeared tense and 
angry, declined to comment on the specific charges, saying only: "It keeps 
going back to the source of what this whole thing stems from ... There is a 
lot of politics involved." He remained in the courtroom through all of 
yesterday's proceedings.

The mayor's defense attorneys, Carlos A. Martir Jr. and Franklyn Perez, 
argued before Pisano that such testimony is prejudicial and will only serve 
to "taint" Milan's reputation.

"This is not a drug indictment," Martir argued in court. "This is a 
political corruption indictment ... The taint is too great."

Bumb argued that such testimony was necessary to prove that Milan knew - or 
willfully ignored - that the $65,000 in cash Rivera gave him in November 
1994 came from drug proceeds. At the time, Milan was running a construction 
company called Atlas Contracting Inc., and needed the money as security to 
bid on a city contract.

According to the March indictment, Milan attempted to conceal the source of 
the $65,000 by breaking down the money into increments of less than $10,000 
to elude notifying the Internal Revenue Service.

His partner at the time, Joseph "Gholam" Darakhshan, is expected to testify 
that Milan told him at the time that Saul Febo was the "biggest drug dealer 
around." Febo, Bumb argued in court yesterday, frequented Rivera's East 
Camden auto-parts store, often on occasions when Milan was there in the 
presence of other known drug dealers.

That, Bumb said, would show the jury that Milan knew Rivera and Febo were 
involved in the drug trade.

"I think the testimony of Saul Febo and Jose Rivera is all wrapped up ... 
It presents a beginning and an end to the story," Bumb argued.

According to a trial brief filed by the government in support of its 
arguments, prosecutors said they may also introduce evidence of how Milan 
attempted to solicit a bribe from Camden businessman Mark Willis in 
exchange for Milan's help in solving Willis' tax arrears.

In an interview yesterday, Willis, owner of the old Sears Building on the 
Admiral Wilson Boulevard, said his attorneys wrote a letter to the city in 
March 1998 expressing a desire to settle his tax bill.

Soon after, Willis said, Milan called him and asked him to come to his 
mayoral office. During the meeting, Willis said Milan asked him for money - 
Willis would not say how much - in return for help on his tax bill. Two 
weeks later, Willis said, he told Milan he could not come up with the money.

About a year later, the city tried to foreclose on Willis' property. The 
dispute has yet to be settled.

"I was immediately orphaned," Willis said. "I was put on the doorstep next 
to the empty milk bottles."

Prosecutors said in the trial brief that they may also introduce evidence 
that Milan stole food during the city's 1997 Thanksgiving Drive and toys 
during the 1997 Christmas Toy Drive.

The Inquirer has reported that a source familiar with both charity drives 
told federal officials that shortly before Thanksgiving 1997, Milan showed 
up late one night at the building where the food was stored, along with 
several people who loaded food into their cars.

That source also told authorities that twice during the Christmas toy 
drive, Milan had arrived at night at the same building, again with several 
people who loaded toys into vehicles.

Milan has denied the allegations.

One of the people who donated turkeys for the Thanksgiving drive was 
reputed mob associate Daniel Daidone. Daidone, who has not been charged 
with any wrongdoing, is featured in a video about the Thanksgiving drive, 
saying: "It's a new era, and I think a lot could be done now in this city 
... I am pleased that I'm able to donate some stuff down here to take care 
of the needy." 
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