A CHRISTMAS GIFT
May 12, 2005

U.S. DISTRICT JUDGE Bruce Kauffman yesterday dismissed the two counts of lying to the FBI and the grand jury against ex-mayoral aide John Christmas, at the request of the government.

Christmas, former special assistant to Mayor Street's chief of staff, still faces four counts of mail fraud, conspiracy and one count of perjury.Assistant U.S. Attorney Frank Labor III, who initiated the request, declined to comment.

Attorney Brian McMonagle, who represents Christmas, said, "Our goal is to be exonerated on all charges and I won't be satisfied until I accomplish that."

Christmas told FBI agents and later a federal grand jury that he could not recall having told Muslim cleric Shamsud-din Ali that he had been given "broad discretion to help" Ali's firm "any way he could."

The remark was contained in an Oct. 29, 2001, wiretapped conversation between Christmas and Ali about Ali's firm, Keystone Information and Financial Services.

Ali, 67, Christmas, 40, and John Johnson, 58, are on trial in a racketeering conspiracy in federal court.

Ali and Christmas are charged with defrauding the city regarding the Bowman Properties delinquent tax settlement. And Ali and Johnson are charged in an extortion scheme of waste-haulers.

In his opening argument, McMonagle had told jurors that Christmas had been asked by agents and the grand jury about the statement two years after making it.

Christmas also told the grand jury he helped Keystone and other tax collectors, a transcript revealed.

Yesterday, McMonagle cross-examined FBI agent Jesse Coleman about the Oct. 29, 2001, conversation.

But the defense attorney directed the agent to remarks more favorable to his client, such as how he followed procedures to get Ali's tax-collection contract and sought approval from his bosses.

McMonagle read a long section of transcript of the taped conversation before quizzing Coleman:

Christmas said that he had spoken with George Burrell, the mayor's secretary of external affairs, about Ali's contract and a Bowman Properties delinquent-tax settlement.

Christmas told Ali that Burrell "didn't react like I was doing anything wrong."

Saying he had gone through channels in the city Law Department and had obtained approval from the Finance Department, Christmas added: "Everybody necessary to make a contract happen.

"They got back to me with new terms and conditions. I mean this was all transparent," he said on the tape.

Christmas told Ali that he even had given Burrell an out if the mayor's top political guru did not approve.

"I'm not trying to marry you to these ideas," Christmas said he had told Burrell. "If you don't feel that this is appropriate or, that we can do this, then that's fine. I'll tell Keystone, I'll tell Steve."

Christmas was referring to Steven Vaughn, then-chief of staff for Councilwoman Donna Reed Miller. Vaughn recently pleaded guilty to withholding 22 Bowman checks from the tax settlement until Ali could get his tax-collection contract.

"No, it's cool," Christmas said Burrell had replied. "I just need to talk to Ken [Trujillo, then-city solicitor] and lean on him a little more."

"Isn't that what happened? McMonagle asked the agent. "Isn't that what your documents later revealed?

"Yes, I believe so," the agent replied.

"It's always kosher," Christmas said on the tape. "It's always with the benefits of knowing what the laws are."

McMonagle said to the agent: "Now where is he saying he is trying to get money for nothing. He's trying to say he's doing it legal here."

"That's what he's saying," replied the agent.

Labor, the prosecutor, then asked Coleman: Did Christmas ever tell Burrell or Trujillo that Vaughn had Bowman's money since March?

"No," the agent replied. *