No deal. Former state budget deputy rejects plea agreement at last minute
Kosta Diamantis was expected to plead guilty in his second bribery and extortion case Monday afternoon. His attorney said he was not prepared to make “difficult, life-changing decisions” today.
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There will be no plea deal for Kosta Diamantis after all.
At the last minute, during a change-of-plea hearing, Gov. Ned Lamont’s former budget deputy decided not to plead guilty in his second bribery and extortion case.
The stunning turn of events is the latest dramatic development in a years-long corruption case.
NO DEAL
Bridgeport’s federal courthouse was packed with reporters expecting Diamantis to accept a plea agreement.
Instead, after 20 minutes of closed-door discussions between Judge Stephan Underhill, prosecutors and Diamantis’ attorney, he simply walked out.
Outside court, Diamantis would not say why he rejected the deal – or what the terms were.
Reporter: "Kosta, what would you like to say?"
Kosta Diamantis: "Norm is the mouthpiece for today."
Reporter: "Were you considering a plea?"
Diamantis: "Whatever Norm said."
Diamantis’ attorney, the typically talkative Norm Pattis, would only say he will now ask Underhill to delay the trial until at least Sept. 1. On Monday afternoon, Underhill canceled the start of Diamantis trial, which was set to begin next Tuesday.
“Federal criminal court is a heartbreaking place with difficult, life-changing decisions,” Pattis said. “Today was not a day that we were prepared to make one of those decisions.”
U.S. David Attorney Novick had no comment.
BRIBERY & EXTORTION CASE
Diamantis was once of the most powerful people in Connecticut. The former Democratic state representative was a top budget deputy in the governor’s office. He was also in charge of doling out money for school construction projects.
The case involves a Medicaid fraud investigation where Diamantis allegedly intervened on behalf of a Bristol eye doctor.
As News 12 Connecticut has reported, former Democratic state Rep. Christopher Ziogas, who was accused of bribing Diamantis, pleaded guilty to extortion, bank fraud and lying to the FBI in November.
The two men allegedly accepted $95,000 from Helen Zervas. Prosecutors say Diamantis pressured the state to cancel an audit into questionable Medicaid billing by Zervas.
Zervas and Ziogas are expected to testify against Diamantis. Some of Lamont’s former inner circle, including then-Department of Social Services Commissioner Deirdre Gifford and former budget director Melissa McCaw, could be called to the stand – during Lamont’s reelection campaign.
Lamont has repeatedly said he had no knowledge of Diamantis' activities, and removed him when the FBI began investigating.
PREVIOUS CONVICTION
This is Diamantis' second corruption trial.
In October, a jury convicted him of 21 counts of extortion and bribery. Contractors testified that Diamantis, who was in charge of the state Office of School Construction Grants and Review, demanded bribes in exchange for multimillion dollar school construction contracts.
Diamantis still awaiting sentencing in that case. After the conviction, he gave up his law license.
