Affair played role in fraud

ATLANTA - An extramarital affair, cosmetic surgery and an allegedly fraudulent attempt to gain political power took center stage in a federal courtroom Monday as attorneys presented their opening statements and testimony began in the long-awaited trial of former state school Superintendent Linda Schrenko.

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A set of surprising twists upstaged some of the more substantive moments of the trial, which involves a 48-count indictment alleging that Ms. Schrenko and two co-defendants siphoned off nearly $600,000 in federal education funds to bankroll her failed gubernatorial bid and personal expenses.

Ms. Schrenko's attorney admitted that she had an intimate relationship with Merle Temple, her former deputy and a central figure in the case, while attorneys on both sides said influential Rep. Sue Burmeister, R-Augusta, apparently had unwittingly become part of a scheme to launder money into the 2002 gubernatorial campaign.

The revelation of an affair between Mr. Temple and Ms. Schrenko, both of whom were married at the time, came as an attorney for Stephan Botes, a South African businessman and Ms. Schrenko co-defendant, slammed Mr. Temple in his opening statement.

Mr. Temple, who struck a plea deal with the government last year, is expected to be a critical witness in the prosecution's case. The prosecution says Mr. Temple was a "shadow campaign manager" who was intimately involved in the scheme.

"Merle Temple had a sexual relationship with Linda Schrenko," attorney Brian Steel said. "He's married to another woman."

Mr. Steel also labeled Mr. Temple "diabolical" and said the former deputy superintendent had twisted the truth to get a better plea deal from the government.

Pete Theodocion, the attorney representing Ms. Schrenko, conceded that the two had been romantically involved.

"Merle Temple was the closest adviser to Mrs. Schrenko," he said. "They were having a relationship, and we don't apologize for that."

Mr. Theodocion said, however, that Ms. Schrenko was trapped in a broken marriage that she stayed in only to avoid the political damage a divorce might cause; that made her vulnerable to Mr. Temple's manipulation.

"When Merle came along, he was a perfect replacement. She placed trust in the wrong man," Mr. Theodocion said.

Mr. Theodocion's argument was part of an ongoing theme of the opening presentations, as the defendants tried to paint themselves as the victims of Mr. Temple, political enemies and one another.

Mr. Theodocion, who called the government's case "fantasy," used his statement to place the blame squarely on Mr. Temple and opponents at the state Board of Education bent on destroying Ms. Schrenko.

Mr. Botes' attorney, Mr. Steel, tried to deflect blame for the involvement of the South African's companies onto lower-level officials at the corporations. Mr. Botes is accused of taking the federal grant money from the Education Department and laundering it through his companies in a variety of complex financial transactions. The money ended up in an account that funded the gubernatorial bid and expenses for Ms. Schrenko, from a face-lift to the down payment on a car.

For Mr. Botes, it was a way to give his computer products an edge at the State Department of Education, said prosecutor Richard Vineyard. For Ms. Schrenko and Mr. Temple, he said, it was simply about winning.

Some of the illegal money was funneled into Ms. Schrenko's campaign by making payments to family members and friends, who in turn wrote checks to the campaign. Mr. Vineyard said Ms. Burmeister, a Schrenko ally who announced last week she would not see re-election, was one of the people who wrote such a check.

Ms. Burmeister, contacted Monday, said she could not comment because she is expected to testify in the case. She said she faced no legal jeopardy.

The three defendants face up to 20 years in prison on each count, although maximum terms are rare in such cases.

Associated Press reports were used in this article.