Welch & Johnson Indicted
July 20, 2000
The U.S. Justice Department Thursday indicted former Salt Lake Olympic Committee President Tom Welch and SLOC Vice-President David Johnson on 15 counts of bribery and fraud.
The bid executives were accused of using phony contracts and falsifying bid committee books to disguise $1 million in illicit payments to members of the International Olympic Committee, which awarded Salt Lake the 2002 Winter Games.
A day after a federal grand jury handed up the charges, Johnson responded to allegations that he helped pay $1 million to win the 2002 Games by saying, "I didn't bribe anyone."
Johnson, who was vice president of the Salt Lake Olympic bid committee, spoke publicly late Friday for the first time since shortly after the international vote-buying scandal broke in November 1988. His brief statement came a day after bid President Tom Welch defended himself from charges handed up by a federal grand jury Thursday.
Their arraignment on a 15-count indictment has been scheduled for Aug. 1 in federal court.
Johnson, 41, appeared outside his lawyers' office to deliver a statement timed for Salt Lake's late TV news broadcasts. He avoided questions from reporters.
"I did not do anything illegal," said Johnson, who was flanked by one of his lawyers. "Our efforts to win the Winter Olympics were consistent with the goals and mission of the bid committee. We operated in a culture that others created. There was never, ever any intention to deceive anyone. I have always told the truth. I didn't bribe anyone, and I didn't defraud anyone."
The indictment also accuses Welch and Johnson of pocketing $130,000 in contributions meant for the bid committee. Their lawyers say the donations were spent on bid activities, not for personal use. The money was collected at airports and hotels in 1994 and 1995 from a company that later became an Olympic sponsor, New York-based Jet Set Sports, a corporate ticket and travel broker.
Johnson said the U.S. Justice Department's 19-month investigation and indictment had taken a toll on his family. He is married with four children.
"To be accused of criminal conduct in the course of my efforts is devastating," he said.
Welch, 55, on Thursday called the charges preposterous and said he was confident the pair would be acquitted after going through "the agony of a trial."
"Dave and I stand alone in this nightmare," Welch said from his home in Huntington Beach, Calif.
(The Associated Press contributed to this story.)
