Posted on Thu, Sep. 24, 2009
MARYCLAIRE DALE
The Associated Press
http://www.philly.com/philly/wires/ap/news/state/pennsylvania/20090924_ap_palawyeronstandin500klaunderingtrial.html
PHILADELPHIA - High-profile Allentown attorney John Karoly (KA'-rol-ee) Jr. is testifying about a $500,000 donation he moved through several charities as he fights money-laundering charges.
Prosecutors say Karoly got most of the money back and used it on personal and law firm expenses. They are expected to cross-examine him Thursday.
The 59-year-old Karoly is well-known in the Lehigh Valley for winning big settlements in police-abuse cases.He already faces prison time after pleading guilty to tax evasion involving $5 million in income. But Karoly denies he laundered money.He says he relied on financial advisers in donating $500,000 to the Lehigh Valley Community Foundation and in routing it to a private wilderness foundation he was starting.