This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 ROME 001835 
 
SIPDIS 
 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL PGOV IT ITALIAN POLITICS
SUBJECT: PM BERLUSCONI'S FORMER LAWYER CONVICTED OF BRIBING 
JUDGES 
 
REF: REF 0355 
 
SENSITIVE BUT UNCLASSIFIED 
 
    ¶1. (SBU) SUMMARY.  FORMER BERLUSCONI LAWYER CESARE PREVITI 
WAS CONVICTED ON APRIL 29 OF BRIBING JUDGES IN TWO CORPORATE 
TAKEOVER BATTLES.  HE WILL APPEAL THE SENTENCE.  THE VERDICT 
IS EMBARRASSING FOR THE PM BECAUSE OF PREVITI,S 
LONG-STANDING ASSOCIATION WITH BERLUSCONI, BUT WILL NOT SHAKE 
THE GOVERNMENT,S STABILITY.  MORE SERIOUS IS AN ONGOING 
TRIAL THAT DIRECTLY INVOLVES BERLUSCONI, WHO HAS BEEN ACCUSED 
OF HAVING FUNNELED MONEY TO A JUDGE TO INFLUENCE HIS DECISION 
ON ANOTHER CORPORATE TAKEOVER MATTER.  THE VERDICT COULD BE 
ISSUED IN JULY WHEN ITALY WILL HOLD THE ROTATING EU 
PRESIDENCY.  END SUMMARY. 
 
¶2. FORMER DEFENSE MINISTER CESARE PREVITI, FORZA ITALIA 
PARLIAMENTARIAN AS WELL AS ONE OF PM SILVIO BERLUSCONI'S 
FORMER LAWYERS, WAS CONVICTED ON APRIL 29 IN A MILAN COURT 
FOR HAVING BRIBED JUDGES.  HE WAS SENTENCED TO 11 YEARS IN 
PRISON.  PREVITI SAID HE WOULD APPEAL THE SENTENCE, WHICH 
STEMS FROM HIS INVOLVEMENT IN TWO LONG-RUNNING TRIALS*DUBBED 
IMI-SIR AND LODO (AWARD) MONDADORI.  LAST JANUARY, THE MILAN 
TRIBUNAL DECIDED TO COMBINE THE TWO INTO A SINGLE TRIAL AS 
MANY OF THE ACCUSED WERE INVOLVED IN BOTH. 
 
¶3. IN THE IMI-SIR CASE, PREVITI WAS CHARGED WITH THE CRIME OF 
CORRUPTING (THROUGH BRIBERY) JUDGES TO FIX A COURT RULING IN 
FAVOR OF THE ROVELLI FAMILY.  THE ROVELLIS WERE DISPUTING THE 
TERMS OF A TAKEOVER BY THE PUBLICLY-OWNED ITALIAN REAL ESTATE 
INSTITUTE (IMI) OF THEIR FIRM, THE ITALIAN RESIN COMPANY 
(SIR). ACCORDING TO THE PROSECUTION, PREVITI AND TWO OTHER 
LAWYERS RECEIVED THE EQUIVALENT OF EUROS 33 MILLION IN THE 
EARLY 1990S FROM OILMAN NINO ROVELLI'S HEIRS IN ORDER TO 
BRIBE THREE JUDGES, WHO AWARDED THE HEIRS A LUCRATIVE 
    SETTLEMENT. 
 
¶4.  IN THE SECOND CASE, PREVITI WAS CHARGED WITH BRIBING A 
JUDGE IN 1991 SO THAT PM BERLUSCONI,S FININVEST HOLDING 
COMPANY COULD WIN CONTROL OF MONDADORI, ITALY'S LARGEST 
PUBLISHING COMPANY. AT THE TIME, PREVITI WAS WORKING AS A 
LAWYER FOR BERLUSCONI. THE OWNER OF MONDADORI HAD AGREED TO 
SELL THE FIRM TO INDUSTRIALIST, PUBLISHER, AND BERLUSCONI 
RIVAL CARLO DE BENEDETTI UNTIL FININVEST STEPPED IN WITH A 
BETTER OFFER.  DE BENEDETTI SUED IN COURT FOR BREACH OF 
CONTRACT, BUT THE DECIDING JUDGE--ACCUSED LATER OF ACCEPTING 
A BRIBE--RULED IN FAVOR OF FININVEST. BERLUSCONI IN 1997 WAS 
ALSO INDICTED FOR CORRUPTION IN THE MONDADORI CASE, BUT THE 
STATUTE OF LIMITATIONS FOR HIS ALLEGED LESSER CRIME RAN OUT 
DURING THE COURSE OF THE TRIAL. 
 
¶5.  (SBU) THE APRIL 29 VERDICT, ALTHOUGH EMBARRASSING FOR 
BERLUSCONI DUE TO HIS CLOSE AFFILIATION WITH PREVITI, WILL 
HAVE NO DIRECT IMPACT ON THE GOI,S STABILITY. BERLUSCONI, 
WHO HAS BEEN OUTSPOKEN IN HIS CRITICISM OF THE RULING MILAN 
COURT FOR ITS ALLEGED POLITICIZATION, IMMEDIATELY ISSUED A 
COMMUNIQUE EXPRESSING HIS PERSONAL SOLIDARITY AND THAT OF HIS 
PARTY, FORZA ITALIA, WITH PREVITI.  HE SAID THE VERDICT 
CONFIRMED HIS SUSPICIONS OF A &POLITICAL PROSECUTION.8  THE 
CENTER-LEFT OPPOSITION, WHICH MIGHT HAVE BEEN EXPECTED TO 
UNLEASH A BARRAGE OF CRITICISM AT THE PM IN THE WAKE OF THE 
VERDICT, HAS INSTEAD DECIDED TO TAKE A LOW KEY APPROACH.  IT 
IS PROBABLY CALCULATING THAT THE PRESS HAS DONE A SUFFICIENT 
JOB OF DRAWING OUT THE PREVITI-BERLUSCONI CONNECTION FOR THE 
PUBLIC.  MOREOVER, THE DEEPLY DIVIDED AND LEADERLESS 
OPPOSITION HAS NO INTEREST IN PROVOKING A GOVERNMENT CRISIS 
    THAT COULD POTENTIALLY LEAD TO NEW ELECTIONS. 
 
¶6.  (SBU) BERLUSCONI, WE WANT TO UNDERSCORE, IS NOT OUT OF 
THE JUDICIAL WOODS.  HE IS ON TRIAL IN YET ANOTHER JUDGE 
BRIBERY CASE FOR ALLEGEDLY DELIVERING CASH PAYMENTS IN ORDER 
TO INFLUENCE A RULING ON THE PRIVATIZATION OF A FORMERLY 
STATE-OWNED FOOD CONGLOMERATE (SME).  DE BENEDETTI, ALSO A 
PROTAGONIST IN THE SME CASE, HAD IN 1985 BEEN GIVEN THE 
RIGHTS TO PURCHASE THE COMPANY.  HOWEVER,  FORMER PREMIER 
BETTINO CRAXI--WHO HAD CLOSE TIES TO BERLUSCONI--INTERVENED 
TO BLOCK THE SALE IN FAVOR OF A RIVAL FININVEST BID. DE 
BENEDETTI RESORTED TO THE COURTS, BUT LOST, AND BRIBERY 
CHARGES WERE SUBSEQUENTLY BROUGHT AGAINST BERLUSCONI BY 
INVESTIGATING MAGISTRATES. BERLUSCONI MAY MAKE A STATEMENT IN 
MILAN AT THE SME TRIAL ON MAY 2. 
 
¶7.  (SBU) PRESS REPORTS INDICATE THAT A RULING IN THE SME 
CASE COULD BE HANDED DOWN IN JULY, JUST AS ITALY IS BEGINNING 
ITS SIX-MONTH EU PRESIDENCY TERM.  ITALIAN MAGISTRATES CLAIM 
THAT THEIR RULINGS ARE COMPLETELY DEVOID OF POLITICS, AND THE 
OVERWHELMING MAJORITY OF THEM MAY WELL BE.  HOWEVER, THERE IS 
A CURIOUS HISTORY OF RENDERING DECISIONS THAT AFFECT 
BERLUSCONI AT MOMENTS THAT ARE PARTICULARLY INOPPORTUNE FOR 
HIM.  SEPTEL WILL ANALYZE THE POLITICAL IMPLICATIONS OF A 
CONVICTION AND EFFORTS BY THE GOI TO AMELIORATE THE 
 
 
NOTE: PLS SERVICE FOR INVALID REF 
 
ROME 00001835  001.2 OF 002 
 
BING JUDGES IN TWO CORPORATE 
TAKEOVER BATTLES.  HE WILL APPEAL THE SENTENCE.  THE VERDICT 
IS EMBARRASSING FOR THE PM BECAUSE OF PREVITI,S 
LONG-STANDING ASSOCIATION WITH BERLUSCONI, BUT WILL NOT SHAKE 
THE GOVERNMENT,S STABILITY.  MORE SERIOUS IS AN ONGOING 
TRIAL THAT DIRECTLY INVOLVES BERLUSCONI, WHO HAS BEEN ACCUSED 
OF HAVING FUNNELED MONEY TO A JUDGE TO INFLUENCE HIS DECISION 
ON ANOTHER CORPORATE TAKEOVER MATTER.  THE VERDICT COULD BE 
ISSUED IN JULY WHEN ITALY WILL HOLD THE ROTATING EU 
PRESIDENCY.  END SUMMARY. 
 
¶2. (U) FORMER DEFENSE MINISTER CESARE PREVITI, FORZA ITALIA 
PARLIAMENTARIAN AS WELL AS ONE OF PM SILVIO BERLUSCONI'S 
FORMER LAWYERS, WAS CONVICTED ON APRIL 29 IN A MILAN COURT 
FOR HAVING BRIBED JUDGES.  HE WAS SENTENCED TO 11 YEARS IN 
PRISON.  PREVITI SAID HE WOULD APPEAL THE SENTENCE, WHICH 
STEMS FROM HIS INVOLVEMENT IN TWO LONG-RUNNING TRIALS*DUBBED 
IMI-SIR AND LODO (AWARD) MONDADORI.  LAST JANUARY, THE MILAN 
TRIBUNAL DECIDED TO COMBINE THE TWO INTO A SINGLE TRIAL AS 
MANY OF THE ACCUSED WERE INVOLVED IN BOTH. 
 
¶3. (U) IN THE IMI-SIR CASE, PREVITI WAS CHARGED WITH THE CRIME OF 
CORRUPTING (THROUGH BRIBERY) JUDGES TO FIX A COURT RULING IN 
FAVOR OF THE ROVELLI FAMILY.  THE ROVELLIS WERE DISPUTING THE 
TERMS OF A TAKEOVER BY THE PUBLICLY-OWNED ITALIAN REAL ESTATE 
INSTITUTE (IMI) OF THEIR FIRM, THE ITALIAN RESIN COMPANY 
(SIR). ACCORDING TO THE PROSECUTION, PREVITI AND TWO OTHER 
LAWYERS RECEIVED THE EQUIVALENT OF EUROS 33 MILLION IN THE 
    EARLY 1990S FROM OILMAN NINO ROVELLI'S HEIRS IN ORDER TO 
BRIBE THREE JUDGES, WHO AWARDED THE HEIRS A LUCRATIVE 
SETTLEMENT. 
 
¶4. (U) IN THE SECOND CASE, PREVITI WAS CHARGED WITH BRIBING A 
JUDGE IN 1991 SO THAT PM BERLUSCONI,S FININVEST HOLDING 
COMPANY COULD WIN CONTROL OF MONDADORI, ITALY'S LARGEST 
PUBLISHING COMPANY. AT THE TIME, PREVITI WAS WORKING AS A 
LAWYER FOR BERLUSCONI. THE OWNER OF MONDADORI HAD AGREED TO 
SELL THE FIRM TO INDUSTRIALIST, PUBLISHER, AND BERLUSCONI 
RIVAL CARLO DE BENEDETTI UNTIL FININVEST STEPPED IN WITH A 
BETTER OFFER.  DE BENEDETTI SUED IN COURT FOR BREACH OF 
CONTRACT, BUT THE DECIDING JUDGE--ACCUSED LATER OF ACCEPTING 
A BRIBE--RULED IN FAVOR OF FININVEST. BERLUSCONI IN 1997 WAS 
ALSO INDICTED FOR CORRUPTION IN THE MONDADORI CASE, BUT THE 
STATUTE OF LIMITATIONS FOR HIS ALLEGED LESSER CRIME RAN OUT 
DURING THE COURSE OF THE TRIAL. 
 
¶5.  (SBU) THE APRIL 29 VERDICT, ALTHOUGH EMBARRASSING FOR 
BERLUSCONI DUE TO HIS CLOSE AFFILIATION WITH PREVITI, WILL 
HAVE NO DIRECT IMPACT ON THE GOI,S STABILITY. BERLUSCONI, 
WHO HAS BEEN OUTSPOKEN IN HIS CRITICISM OF THE RULING MILAN 
COURT FOR ITS ALLEGED POLITICIZATION, IMMEDIATELY ISSUED A 
COMMUNIQUE EXPRESSING HIS PERSONAL SOLIDARITY AND THAT OF HIS 
PARTY, FORZA ITALIA, WITH PREVITI.  HE SAID THE VERDICT 
CONFIRMED HIS SUSPICIONS OF A &POLITICAL PROSECUTION.8  THE 
CENTER-LEFT OPPOSITION, WHICH MIGHT HAVE BEEN EXPECTED TO 
UNLEASH A BARRAGE OF CRITICISM AT THE PM IN THE WAKE OF THE 
VERDICT, HAS INSTEAD DECIDED TO TAKE A LOW KEY APPROACH.  IT 
IS PROBABLY CALCULATING THAT THE PRESS HAS DONE A SUFFICIENT 
JOB OF DRAWING OUT THE PREVITI-BERLUSCONI CONNECTION FOR THE 
    PUBLIC.  MOREOVER, THE DEEPLY DIVIDED AND LEADERLESS 
OPPOSITION HAS NO INTEREST IN PROVOKING A GOVERNMENT CRISIS 
THAT COULD POTENTIALLY LEAD TO NEW ELECTIONS. 
 
¶6.  (SBU) BERLUSCONI, WE WANT TO UNDERSCORE, IS NOT OUT OF 
THE JUDICIAL WOODS.  HE IS ON TRIAL IN YET ANOTHER JUDGE 
BRIBERY CASE FOR ALLEGEDLY DELIVERING CASH PAYMENTS IN ORDER 
TO INFLUENCE A RULING ON THE PRIVATIZATION OF A FORMERLY 
STATE-OWNED FOOD CONGLOMERATE (SME).  DE BENEDETTI, ALSO A 
PROTAGONIST IN THE SME CASE, HAD IN 1985 BEEN GIVEN THE 
RIGHTS TO PURCHASE THE COMPANY.  HOWEVER,  FORMER PREMIER 
BETTINO CRAXI--WHO HAD CLOSE TIES TO BERLUSCONI--INTERVENED 
TO BLOCK THE SALE IN FAVOR OF A RIVAL FININVEST BID. DE 
BENEDETTI RESORTED TO THE COURTS, BUT LOST, AND BRIBERY 
CHARGES WERE SUBSEQUENTLY BROUGHT AGAINST BERLUSCONI BY 
INVESTIGATING MAGISTRATES. BERLUSCONI MAY MAKE A STATEMENT IN 
MILAN AT THE SME TRIAL ON MAY 2. 
 
¶7.  (SBU) PRESS REPORTS INDICATE THAT A RULING IN THE SME 
CASE COULD BE HANDED DOWN IN JULY, JUST AS ITALY IS BEGINNING 
ITS SIX-MONTH EU PRESIDENCY TERM.  ITALIAN MAGISTRATES CLAIM 
THAT THEIR RULINGS ARE COMPLETELY DEVOID OF POLITICS, AND THE 
OVERWHELMING MAJORITY OF THEM MAY WELL BE.  HOWEVER, THERE IS 
A CURIOUS HISTORY OF RENDERING DECISIONS THAT AFFECT 
BERLUSCONI AT MOMENTS THAT ARE PARTICULARLY INOPPORTUNE FOR 
HIM.  SEPTEL WILL ANALYZE THE POLITICAL IMPLICATIONS OF A 
CONVICTION AND EFFORTS BY THE GOI TO AMELIORATE THE 
 
 
EUR TAKE AS ACTION 
 
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ALID REF 
 
 
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 2003ROME01835 - Classification: UNCLASSIFIED