State high court backs money laundering indictments in DeLay case

The Texas Court of Criminal Appeals today upheld the money laundering indictments against James Ellis and John Colyandro in a political ethics case tied to former U.S. House Majority Leader Tom DeLay, R-Sugar Land.

DeLay was not directly involved in the appeal, but his trial had been postponed while the indictments against Colyandro and Ellis were on appeal.All three men have been indicted on charges of illegally laundering corporate money through the Republican National Committee in exchange for individual contributions to help Republican state House candidates in the 2002 elections.

The men have maintained that they did nothing illegal.Colyandro and Ellis were indicted in the case before DeLay. They had already begun appeals of their indictments prior to the indictments being returned against DeLay.More specifically, they have maintained that the Texas money laundering statute did not apply in their case. The Texas Third Court of Appeals had agreed, but the state's high criminal court overturned that opinion today.

The opinion by Judge Sharon Keller said the lower appeals court had "Inappropriately" over-stepped its bounds in a habeus corpus hearing by determining the money laundering law violated Ellis and Colyandro's First Amendment rights of free speech. Keller, writing for the unanimous court, also said the state's election laws are not unconstitutional.

The ruling, barring the usual motion for a re-hearing, clears the way at the state level for a trial to begin for DeLay, Ellis and Colyandro. However, lawyers for the three have indicated in the past that if they lose at the state level they will raise constitutional issues in federal court.

The men are accused of raising $190,000 in corporate money through Texans for a Republican Majority and then sending the money to the Republican National Committee, which in turn sent $190,000 in money raised from individuals to seven Republican legislative candidates. Texas election law makes it illegal to donate corporate money to campaigns for elective office.

DeLay was indicted in the case in 2005. He stepped down as majority leader when the indictments occurred and then later resigned from Congress.

Posted by R.G. Ratcliffe at April 28, 2010 12:37 PM