Lawyer blames former boyfriend for ex-school chief's financial woes

<p>Lawyers for Linda Schrenko, a conservative Republican who in 1994 became Georgia's first woman elected to a statewide political post, say her trust in a deputy with whom she was having an affair led to charges she stole hundreds of thousands of dollars in taxpayer money.</p><p>Prosecutors in Schrenko's federal theft and money laundering trial said in opening statements Monday that Schrenko committed "an outrageous abuse of trust" by stealing hundreds of thousands of dollars in federal education money to pay for a failed political campaign and plastic surgery.</p><p>But her lawyer said Schrenko's marriage was no more than a sham propped up for political purposes and that she wrongly trusted the finances of her department and her failed bid for governor to Merle Temple.</p><p>Temple is expected to testify against her in the trial, which is expected to last at least two weeks.</p><p>Federal prosecutor Russell Vineyard said during opening statements that the case against Schrenko and two others was "about a scheme to steal public funds from schoolchildren and steer them into a failing political campaign."</p><p>Schrenko, 56, is accused of taking more than $600,000 in federal education money to pay for her failed 2002 campaign for governor, a face lift and other extras, including a television, a computer and a down-payment on a car. Vineyard called the case "an outrageous abuse of trust by a public official."</p><p>On trial with Schrenko are computer executive Stephan Botes and businessman Peter Steyn, the chief financial officer for Botes' company. The three have pleaded not guilty to dozens of counts of money laundering and conspiracy to commit fraud.</p><p>Temple, Schrenko's former deputy superintendent, pleaded guilty last year and is expected to testify for the prosecution. Vineyard described Temple to the jurors as a "close friend, intimate adviser and confidant" who was acting as Schrenko's shadow campaign manager.</p><p>Brian Steel, attorney for Botes, told jurors that Schrenko and Temple were having a sexual relationship.</p><p>Schrenko's defense attorney, Pete Theodocion, acknowledged that the married Schrenko and Temple had a romantic relationship but said any financial wrongdoing was done by Temple and other political operatives without Schrenko's knowledge.</p><p>"She placed her trust in the wrong man," he said. "We could put up a chart and all arrows lead into the side pocket of Merle Temple."</p><p>When it became clear federal investigators were looking into Schrenko's finances, "Merle gave up Linda's head on a silver platter," Theodocion said.</p><p>Theodocion said Schrenko had long been estranged from her husband, Frank, whom he referred to as alcoholic and abusive, but said she waited until her political career was over to file for divorce because she feared a backlash from political supporters. He added that she has now filed for divorce.</p><p>A Republican, Schrenko ran as a religious conservative throughout her career. As superintendent, she pushed for Bible classes in public schools and for teaching alternatives to the theory of evolution.</p><p>Prosecutors say Schrenko funneled $614,000 in federal Department of Education money to companies owned by Botes, who provided no services. Some of those funds had been intended for state schools for the deaf.</p><p>Instead, the government says, about half of that money was steered to Schrenko's failed campaign for the Republican nomination for governor in 2002.</p><p>Some of the illegal money was funneled into Schrenko's campaign by making payments to family members and friends, who in turn wrote checks to the campaign. Vineyard said state Rep. Sue Burmeister, R-Augusta, a Schrenko ally who announced this month she will not see re-election, was one of the people who wrote such a check.</p><p>Burmeister is expected to testify in the case.</p><p>The three defendants face up to 20 years in prison on each count, although it is rare for judges to sentence defendants to the maximum in such cases. Schrenko, the first woman in Georgia history elected to a statewide political office, headed the state education department from 1995 to 2002.</p><p>Steel, representing Botes, said Botes never knew money was being funneled from his companies into Schrenko's campaign. Steel said politically ambitious employees of Botes and the Department of Education were responsible.</p><p>Steyn's lawyer, Andrew Ekonomou, said his client was merely an employee of Botes who made no decisions about how money was spent at Computer Consulting Services Corporation, Botes's company.</p><p>The trial, in U.S. District Court, is expected to last about two weeks.</p>

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