First charge filed in probe

SALT LAKE CITY, AUG 4: In the first criminal case in the Federal probe of whether bribery swayed the choice of a 2002 Winter Olympics sit...

SALT LAKE CITY, AUG 4: In the first criminal case in the Federal probe of whether bribery swayed the choice of a 2002 Winter Olympics site, a businessman pleaded guilty yesterday. David E Simmons, the former chairman and CEO of Keystone Communications, admitted to a misdemeanor tax violation involving a job for the son of a powerful International Olympic Committee IOC official.

Simmons appeared before US Magistrate Ronald N Boyce who asked him a series of questions to ensure the plea was not coerced, and then asked Simmons to explain what he did wrong.

8220;I included in a tax return for Keystone Communications salary for an IOC relative and I knew it false. The purported salary was not genuine,8221; Simmons said in voice barely above a whisper.

Simmons, 41, admitted in a statement to helping John Kim, whose father, Kim un-Yong of South Korea is one of the most influential IOC members, obtain lawful permanent resident status by offering him a fraudulent job at his company.

In the court documents,Simmons admitted entering into a series of sham contracts and using phony invoices to conceal the fact that the son8217;s salary was actually being paid by the Salt Lake City Olympic bid committee. The goal was to curry support for Salt Lake8217;s 2002 Winter Olympic bid.

8220;In our efforts to assist Kim and to receive reimbursement for his salary costs, we complied with the requests of Kim, his attorneys and former Salt Lake Olympics leader Tom Welch that resulted in incorrect and misleading statements and agreements,8221; Simmons said in a statement.

Howard Graff, an attorney for the Kim family, did not immediately return calls. In June, he said an IOC investigator tried to strong-arm a man into signing a false statement saying he funneled 20,000 from Salt Lake bid officials to a company employing John Kim.

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Tom Schaffer, Welch8217;s attorney, said Simmons8217; testimony was likely to be used against his client.

8220;If Simmons has an interest in getting the Olympics and does this on his own, that8217;s his business,8221;Schaffer said. 8220;It8217;s the way the Feds work. Start at the bottom and work your way up.8221;

Justice department spokesman Myron Marlin called today8217;s charge, 8220;the first arising out of an ongoing investigation.8221;

The investigation began last December and now includes investigators from the justice department, the FBI, the internal revenue service and the US Customs Service.

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The criminal information filed with the charge against Simmons alleges that he caused keystone to submit a 1992 tax return that falsely deducted the salary of this 8220;employee8221; as a business expense. The tax charge carries a maximum penalty of one year in prison and 10,000 fine.

Simmons agreed to cooperate fully with the investigation.

A statement from the Salt Lake Organizing Committee distanced itself from the questionable actions used to win the Games.