Ex-treasurer Cahill indicted on public corruption charges

BOSTON (WHDH) -- Former state treasurer Timothy Cahill was indicted on public corruption and fraud charges Monday.

The indictment goes back to his run in the 2010 governor’s race and centers around advertisements featuring the Massachusetts Lottery. The ads were paid for with taxpayer dollars and were meant to promote the state lottery, but Attorney General Martha Coakley says the spots were a well orchestrated ad campaign meant to help Cahill’s run for governor.

“One that was actually carefully coordinated primarily to promote his own campaign for governor instead of promoting the interests of the lottery and taxpayers and cities and towns that benefit from funds from the lottery,” said Coakley in a press conference on Monday.

Scott Campbell, his former chief of staff, was indicted on Monday. Former lottery chief of staff Alfred Grazioso was indicted on two counts of obstruction of justice.

Coakley alleges Cahill and his staff wanted to run a campaign touting his great management of the state lottery. She also alleges that Cahill helped coordinate the lottery ads to send the same message. Coakley says $1.5 million of taxpayer money was spent in lottery advertising in just an eight-week period -- right as Cahill’s campaign contributions were dipping.

“We allege that Treasurer Cahill made a decision with others to abuse his position of trust and put his own political ambition before the best interest of the taxpayers,” said Coakley.

Current treasurer Steven Grossman says his office has been cooperating with the investigation from the beginning.

“I think these indictments reflect a gross violation of public trust and a profound violation of once public office,” said Grossman.

Coakley says Cahill abused his position of trust and put his political ambitions ahead of taxpayers' interests. Cahill faces charges of violating state ethics laws and procurement fraud, and conspiracy to violate those laws.

Cahill’s attorney, E. Peter Parker, released a statement on Monday after noon saying, “I have seen no evidence of criminal conduct by anybody, which does not surprise me because the truth is that nobody did anything wrong…Treasurer Cahill had an obligation to maximize lottery revenues. He and the lottery made the right choice to run the ads. We are confident that a jury will agree and in the end, the Attorney General will have wasted an enormous amount of time, energy and scarce resources to bring criminal charges that never should have been brought.”

If convicted, Cahill could face more than 10 years in jail.

(Copyright (c) 2012 Sunbeam Television Corp. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)