Jim Walsh guilty of 2 of 3 charges

A provincial court judge in St. John's ruled Monday that former politician Jim Walsh is guilty of two of three fraud-related charges against him.

The former cabinet ministerfrom Newfoundland and Labrador, who was a high-profile Liberalmember of the legislature from 1989 to 2003, was tried on three charges in connection with the spending scandal uncovered by the province's auditor general: fraud over $5,000, breach of trust, and fraud on the government.

Walsh, who overspent his expenseaccounts by nearly $160,000,pleaded not guilty. He claimed during the trial that mistakes, not crimes, led to the overpayments.

Judge David Orr told the court Monday morning that he couldn't accept Walsh's evidence on the fraud charge because it didn't constitute reasonable doubt.

"I cannot accept that Mr. Walsh was unaware that he was exceeding his spending limits," Orr told the court.

On the breach of trust charge, Orr said of Walsh, "His behaviour was criminal and it was a marked departure from the conduct expected of him."

However, the judge found Walsh not guiltyon a charge of fraud on the government, a charge formerly known as influence peddling.

That charge relied on evidence from Bill Murray, a former financial administrator in the province's house of assembly who also faces criminal charges linked to the spending scandal.

Orr said the evidence on that charge wasn't enough to register a conviction.

He said it would be "dangerous" to accept Murray's testimony as credible without corroboration.

The trial of Walsh wrapped up two weeks ago after 27 days of testimony.

Crown prosecutor Frances Knickle told reporters after the convictions were registeredthat she was pleasedwith the decision.

"It's never the role of the Crown to get a conviction. It's our job to see that justice is done, and we presented the evidence as best we thought, and Judge Orr assessed it ashe thought. So, I'm not surprised,it's a sound verdict."

Knickle wouldn't say what kind of a sentence the Crown willrecommend when Walsh appears Jan. 6fora hearing.

"We will take a close look on how Judge Orr found the facts. That will have a bearing on the kind of sentence we'll be seeking."

Walsh was named in a political spending scandal uncovered by the province's auditor general that led to charges against four former politicians, a civil servant and a St. John's businessman.

Three of those politicians have pleaded guilty to fraud-related charges. Ed Byrne, a former cabinet minister in the Progressive Conservative government, was sentenced to two years in jail.

Wally Anderson, a member of the Liberal opposition, received 15 months, while a decision on the charges against Randy Collins, who represented the New Democratic Party in the legislature, is expected on Friday.

Fraud-related charges against Murray and John Hand, a city businessman, are still before the courts.

Walsh sat in Newfoundland and Labrador's house of assembly from 1989 until his defeat in 2003, serving as the province's tourism minister and minister of works, services and transportation.