By JAY CONLEY
THE ROANOKE TIMES

Archives Reprint

A federal judge declared a mistrial Monday in the fraud trial of former National D-Day Memorial Foundation president Richard Burrow after the jury became deadlocked on a verdict.

Just over three hours after the seven-woman, five-man jury began deliberating, senior U.S. Judge James Turk made the announcement after jury foreman James Lee said the jury was unable to reach a unanimous verdict.

"The way it looks right now, it's going to be impossible," Lee said about 5:40 p.m.

Lee had notified Turk an hour earlier that the jury was having problems reaching a decision, but Turk urged them to keep trying.

The mistrial came after a six-day trial in which prosecutors portrayed Burrow as a gifted con man who drove the memorial's nonprofit foundation into financial ruin.

Burrow, 55, of Roanoke, testified Friday that he was trying to get the memorial built so as many D-Day veterans as possible could see it and that his banking transactions were approved by the foundation's attorney and board of directors.

He had been charged with mail, wire, bank and loan application fraud in connection with more than $7.5 million he raised to build the $25 million memorial. Burrow pleaded not guilty to the charges, and was not accused of taking any of the money involved.

From his home in Forest on Monday night, Lee said the jury deadlocked 7-5 in favor of acquittal as soon as deliberations began.

"It was clear from then that nobody was going to change their mind," said Lee, 44, who works as a cabinetmaker. "Those in favor of Burrow thought he was just doing what the board told him to do."

Lee was one of the five who thought Burrow was guilty.

"For me, what did it was his testimony," Lee said. Under cross-examination from U.S. Assistant Attorney Patrick Hogeboom, Lee said Burrow "never could give a direct answer to a direct question."

Lee, who has served as a juror five previous times, said that initially jurors were nervous but by the end of the week, they seemed confident in making their decisions.

Lee said he believed the prosecution's case that Burrow improperly acquired $3.3 million in matching funds from the commonwealth of Virginia.

But he said he understood if other jurors voted the way they did.

"They had their opinions, and they stuck to them," Lee said. "I think if they try the case again, any other jury will be deadlocked, too."

U.S. Attorney John Brownlee said he still believes that laws were broken, but wouldn't say if the federal government would seek a new trial against Burrow.

"We're just going to go back and re-evaluate the case and try to make a decision as to where to go," he said.

Burrow, who looked confident and alert while testifying for hours in his own defense Friday, appeared tired and worn following the verdict as he was surrounded by about a dozen family members.

"I'm not guilty, and they [prosecutors] came at me with their best case," he said outside the courtroom.

Burrow wouldn't say how he felt about possibly facing another trial, only that he needed time with his family to sort things out.

Assistant U.S. Attorneys Hogeboom and Morgan Scott described Burrow during the final day of the trial as a capable con man who "never met a fact he couldn't twist" in his dealings with a bank, the commonwealth of Virginia and the D-Day foundation's board of directors.

"The evidence is clear and uncontroverted that he was cooking the books," Scott told the jury.

Prosecutors built their case around an undocumented $2 million pledge from a Richmond millionaire that Burrow used as security for a $1.2 million loan from the Bank of the James last year. The supposed pledge occurred during a fund-raising dinner in Richmond in March 2001, when E.C. Robins urged other people at the dinner to contribute and said he would match their donations up to $2 million if they were made by the end of May 2001.

Prosecutors said the donations never materialized. Robins testified Monday that he'd never formally pledged anything.

Hogeboom said Burrow fraudulently listed the challenge pledge on the foundation's donor list as collateral for the loan, stating that the pledge would be paid off in $500,000 increments in July and September of 2001 and 2002.

Burrow testified that he truly believed that pledges he used as collateral for the loan were going to transpire.

"If you believe that he believed in his heart this was going to come in, then this isn't fraud," defense attorney John Lichtenstein told the jury during his closing argument.

In 2000, Burrow used a 30-day, $3.3 million loan from National Cooperative Bank in California to provide a required match to get a $3.3 million state grant from the Virginia General Assembly. Burrow also used the state grant as security for the NCB loan. Prosecutors called this fraudulent because Burrow never informed the commonwealth he was using the two sources of funds as collateral for each other.

Burrow testified the foundation's attorney approved the NCB loan as being a legal transaction.

Former state delegate Richard Cranwell and former state finance secretary Ron Tillett testified that the state's guidelines on what funds can qualify for a state matching grant are vague.

Burrow did say during the trial that his one regret was not informing the board sooner of the foundation's mounting debt in spring 2001.

The foundation, now $3.8 million in debt, filed for Chapter 11 reorganization in October, and has until February to develop a plan to repay its creditors.

Brownlee wouldn't say if he thought the banking transactions and hundreds of pages of bank statements, spreadsheets and loan applications presented were too complicated for the jury to determine Burrow's guilt or innocence.

"I think that the problems the jurors had with the case can be read either way," he said.

News researcher Belinda Harris contributed to this report.

Jay Conley can be reached at 981-3114 or jay.conley@roanoke.com.

TIMELINE

January 1996: Richard Burrow begins his job as executive director of the National D-Day Memorial Foundation. He'd previously worked as Explore Park's engineer, and on high-profile Roanoke projects such as the revitalization of the City Market, Center in the Square and the renewal of Elmwood Park.

June 6, 2001: The National D-Day Memorial officially opens. President Bush speaks to more than 20,000 onlookers.

June 25, 2001: Burrow unexpectedly resigns his job, citing overwhelming stress from his job overseeing the foundation's fund raising and the memorial's construction. Burrow is succeeded by memorial education director William McIntosh.

Oct. 10, 2001: McIntosh announces that the foundation is $5 million in debt and requests an investigation into the foundation's finances.

June 21, 2002: A federal grand jury charges Burrow with mail, wire, bank and loan application fraud relating to the financing of the D-Day Memorial. He pleads not guilty to all charges.

Nov. 8: The D-Day foundation files for bankruptcy.

Dec. 9: Burrow's trial begins in U.S. District Court in Lynchburg.

Dec. 16: The judge declares a mistrial.

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