Federal government's witness accused of bribing defense team

By DEBORAH TEDFORD
Copyright 1997 Houston Chronicle

It was a classic case of checkbook justice gone awry.

The federal government's star witness in a money laundering
trial paid by Uncle Sam for his testimony allegedly tried
Friday to initiate a bidding war between two Houston defense
attorneys and the feds.

But the defense attorneys, Dan Cogdell and Kent Schaffer, said,
"No sale."

Jorge Arroyo, the main witness in a Drug Enforcement
Administration sting, was in jail Friday on state charges of
tampering with a witness after he allegedly told the defense
attorneys he would leave town without testifying if they would
match the government's offer.

Cogdell and Schaffer represent Dan De La Garza on charges he
agreed to launder $100,000 in cash for Arroyo.

The trial is scheduled to begin Monday in U.S. District Judge Lee
Rosenthal's court. No federal officials could be contacted Friday
night.

Cogdell and Schaffer were wired with recording devices, given
$50,000 in "flash money" and cast in the roles of snitches by
Harris County District Attorney John B. Holmes Jr. after Arroyo
allegedly told them he'd be on his way to Brazil by today if they
would match the government's cash offer.

Schaffer said the offer was made Thursday evening as he and
Cogdell interviewed Arroyo at Houston's restaurant.

Amid whines and groans, Arroyo expressed frustration the DEA was
threatening to prosecute him if he didn't testify against De La
Garza, nabbed in a 1993 sting operation initiated by Arroyo.

Arroyo was coy as the two attorneys tried to find out how much
the government had agreed to pay him. Taking a paper napkin from
the table, Arroyo wrote a dollar sign on the napkin, then handed
the pen to Cogdell and asked him how much he thought.

Cogdell penned $50,000.

"Then he says, `You can put it in the back of my car and I'll
disappear,'" said Schaffer.

The two attorneys were stunned. Cogdell, who handles a plethora
of white collar cases, was angry.

"The DEA stung our client and the first thing I think is now
they're making a run at us," Cogdell said. "Nothing like this had
ever happened to me or to anyone I know."

Arroyo allegedly tore the incriminating figures off the napkin,
put it in his mouth and swallowed it.

"We told him, `We can't pay you, but we need to talk,' " said
Schaffer. "`We'll get back to you tomorrow.'"

Out in the parking lot, the attorneys discussed the possibility
the offer could be a DEA sting or a bona fide attempt at getting
a payoff. Either way, it was illegal, said Schaffer.

As they pondered what to do, both immediately rejected the notion
of going to the U.S. attorney's office.

"We had to go to Johnny Holmes," said Schaffer. "If we had gone
to the U.S. attorney, they would have just made another deal with
them."

The two were on Holmes' doorstep by 8:30 a.m. Friday. "He
listened calmly and said we'll wire you and give you some money
and see what happens," Schaffer recalled.

At 3 p.m., Arroyo unexpectedly visited Schaffer's office, but two
tape recorders had already been planted there and both attorneys
were wearing wires.

After repeating his financial demand, Arroyo signed a statement
saying the DEA had threatened him to obtain his testimony and had
promised him a green card as a reward.

When Arroyo left Schaffer's office with the $50,000 cash, Holmes
directed the arrest.

Cogdell said it's a valuable lesson in the theory that you get
what you pay for.

"The government will take the sleaziest informants it can find
and pay them to testify," he said. "They should be out solving
crimes instead of creating them."