Aide to Norman indicted

Benjamin Kelly, a longtime aide and friend to State Sen. Jim Norman, has been charged with failure to file federal income tax reports over five years.

Kelly, 56, failed to file income tax returns for 2006 to 2010, according to an indictment unsealed Wednesday. During that time, when Norman was a Hillsborough County commissioner and Kelly was his aide, his gross income was $88,758 to $90,704 a year, the indictment says.

If convicted on the five counts, Kelly faces a maximum penalty of five years in federal prison.

Although the charges are misdemeanors, the case is being handled by U.S. Attorney Robert O'Neill. In November, O'Neill announced that federal investigators had failed to find evidence Norman broke the law when his wife accepted a $500,000 loan from conservative activist Ralph Hughes.

It was during the yearlong investigation that federal investigators found evidence that Kelly had failed to pay about $45,000 in taxes, O'Neill said.

O'Neill would not comment on whether Kelly has knowledge federal prosecutors can use to reopen the Norman investigation.

"I'm sure the question in everyone's mind is, 'What does Mr. Kelly know that might be of interest to the feds?' " said John Fitzgibbons, a defense lawyer and former federal prosecutor. "He might know something or he might not know anything, but I do think he will be given an opportunity to talk."

Another former federal prosecutor, Latour "L.T." Lafferty, said it is unusual for the U.S. attorney to prosecute misdemeanors unless they are part of a larger criminal investigation.

"It could be possible this investigation is something that they can't let go, and they may be hoping Mr. Kelly will cooperate and provide incriminating information about some other people he may know," Lafferty said.

Norman could not be reached for comment.

Kelly, who lives in Lutz, made an initial appearance Wednesday afternoon before U.S. District Judge Thomas B. McCoun III. He wore a light green suit, no tie and leg irons. Kelly did not have an attorney present.

"Will you continue to work for Sen. Norman?" McCoun asked.

"I hope so, your honor," Kelly replied.

The judge, acting on O'Neill's recommendation, released Kelly on a $25,000 signature bond. Kelly will be allowed to travel within Florida but must turn in his passport.

Kelly worked as Norman's aide at the county from 1996 until 2010. His yearly salary rose from $25,001 to $71,926 during that time.

Norman paid Kelly and his wife, Heather, a total of $31,490 for working on the Tampa Republican's state Senate campaign, according to documents filed with the Florida Division of Elections.

In May, federal grand jurors issued a subpoena to the state Senate seeking Kelly's employment records, according to news reports. County officials would not disclose whether they got a similar subpoena.

Federal investigators spent more than a year looking into the $500,000 loan Hughes made to Norman's wife, Mearline. The money was used to buy and refurbish a lakefront home in Arkansas. Norman did not disclose the money on ethics forms.

Norman faces a hearing Friday before the Florida Commission on Ethics related to the Hughes loan. If the commission finds probable cause Norman violated state ethics laws, he could either admit guilt and pay a fine or appeal to an administrative law court.