BY DAVID PORTER • ASSOCIATED PRESS WRITER • December 13, 2010

http://www.app.com/article/20101213/NEWS03/101213069/Former-NJ-pol-wraps-up-corruption-trial-testimony-

NEWARK — A former state Assemblyman concluded testimony at his federal corruption trial Monday by emphasizing that although he is charged with taking $15,000 from a

developer seeking behind-the-scenes influence, the money made him so uncomfortable that he returned some and planned to return the rest.

L. Harvey Smith's version of the events of mid-2009 contrasted sharply with the theory prosecutors laid out. They have portrayed him as eagerly trading his influence on the Assembly Transportation Committee for cash from government informant Solomon Dwek, who was posing as a developer.

Former Jersey City housing official Edward Cheatam testified earlier in the trial that he took $10,000 in cash from Dwek and handed it to Smith in a FedEx envelope as Smith sat in his car outside a Hoboken diner. Minutes earlier, the two had spoken to Dwek Dwek about a prospective building project in Smith's district.

According to Cheatam, Smith accepted the cash and said, "That's a good start.'' But Smith testified Monday that he was surprised by Cheatam's action and immediately became concerned.

"I didn't know what it was, I didn't know who it was from, what it was about,'' Smith

said.

Smith admitted under cross-examination that it was wrong for him to have the money, but reiterated that he didn't ask for it and would have returned it had he not previously planned to start a vacation the next day. His vacation was cut short when charges were filed against him and 43 others in late July.

Smith testified Monday that before he left, he called his pastor to see if he would

accompany him to return the money to Cheatam.

"I felt I needed someone to come with me to vouch for me,'' Smith said. "I wanted to have my reverend witness what I did.''

Rev. Joseph Jones testified Smith called him and mentioned someone "putting something in his car'' without offering details. Jones testified he was busy and unable to help.

Last week, Smith testified that he returned a separate $5,000 payment to Cheatam to give back to Dwek, telling Cheatam that it was his policy never to accept cash. Smith was heard on a secret recording made by Dwek saying words to that effect.

Prosecutors say Smith was simply laundering the cash for his Jersey City mayoral campaign by returning it to Cheatam, who testified that he got his niece and another man to divide the money into smaller amounts to avoid breaking campaign finance laws.

Smith faces extortion conspiracy, attempted extortion, bribery and money laundering counts. He is the fifth defendant to come to trial in the case dubbed Operation Bid Rig. Three were convicted including fellow former state Assemblyman Daniel Van Pelt. One, Ridgefield Mayor Anthony Suarez, was acquitted. About half the defendants have pleaded guilty.

The government is expected to call a rebuttal witness Tuesday morning, with jury

instructions and closing arguments to follow.