BRIEF DEFENSE PRESENTED IN PR FRAUD TRIAL.

Byline: BETH BARRETT Staff Writer

The defense case of two former Fleishman-Hillard executives charged with overbilling the city DWP and other clients ended abruptly Tuesday after less than three hours, with neither defendant taking the stand.

Lawyers for Doug Dowie, former head of the public relations firm's Los Angeles office, called no witnesses as attorney Tom Holliday said the defense rested "based on the evidence" in the monthlong trial.

John Stodder's attorneys called two witnesses in testimony that lasted only a couple of hours: Matt Middlebrook, a former Fleishman-Hillard executive who served as a spokesman for former Mayor James Hahn; and Jennifer Laird-Manfre, a former company accountant executive.

Stodder's attorney, Jan Handzlik, said no other witnesses would be called - including Hahn and former Deputy Mayor Troy Edwards, who were previously issued subpoenas.

"We feel the government's proof is inadequate," Handzlik said.

Middlebrook testified he didn't recall a meeting on Oct. 10, 2003, which prosecutors said followed a staff meeting in which it was announced that executive Fred Muir had resigned.

In earlier prosecution testimony, Monique Moret, a former vice president testifying under immunity, said that after the staff meeting, Dowie called her, Stodder and Middlebrook into a private meeting and inquired into allegations Muir had made about fraudulent DWP billings.

Stodder told Dowie the Department of Water and Power account was being inflated, and Dowie then inquired whether Muir had any evidence, Moret testified. In a deposition for a civil case, Dowie said he launched an inquiry but didn't notify his superiors in writing of the allegations.

Asked by Handzlik whether he recalled meeting with Dowie, Stodder and Moret, Middlebrook responded, "I do not."

Laird-Manfre testified she inflated bills for the Worldwide Church of God at Stodder's direction for hours not worked by other Fleishman-Hillard executives in September 2003, saying it was for billings she had worked but for which she had not been credited.

On cross-examination by Assistant U.S. Attorney Adam Kamenstein, Laird-Manfre acknowledged she made false statements in writing the accounts of other employees.

But on questioning by Michael Resch, one of Stodder's attorneys, she said the time added was time she had worked in the past, and that her boss, Hilary Norton Orozco, hadn't allowed her to bill for it.

Laird-Manfre also said she thought Orozco's billings to the church "were light."

Orozco previously testified that the church wasn't being billed for administrative or travel costs because it wouldn't pay for those charges, but disputed that it constituted underbilling.

In late September 2003, Dowie held a staff meeting at which he said there was a $30,000 revenue shortfall, and asked them to go through accounts to address it, Orozco testified. She said she left the meeting with a "feeling of dread."

Later, Orozco said Laird-Manfre told her Stodder had asked her to inflate the church's account for the month, and that she told her not to do it. She said Laird-Manfre broke down in tears, saying she was the sole support for her family.

Laird-Manfre testified she told Stodder there was "significant time" she hadn't billed in the previous months, and that Orozco appeared to have worked more time than was billed.

Laird-Manfre said she cried only after Orozco berated her in public.

"I needed to get out of that place, and so I let it all out," she said.

Prosecutors spent weeks building their case on witness testimony, a series of e-mails and billing documents in alleging Dowie and Stodder overbilled the DWP by more than $300,000, as well as the Port of Los Angeles, the church and architect Frank Gehry's firm.

Closing arguments for both sides are scheduled for Thursday.

beth.barrett(at)dailynews.com

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