Prosecutors have alleged that Lipscomb, who briefly had a personal relationship with Dixon, gave her lavish gifts that included Jimmy Choo shoes and a gift certificate at a local furrier and paid for travel to Chicago and New York. Though Dixon, then City Council president, voted to give Lipscomb's project tax breaks, she never declared the gifts from him on her financial-disclosure forms, an omission that prosecutors used when charging her with perjury.
But Circuit Judge Dennis M. Sweeney, the retired Howard County judge who is presiding over the City Hall cases, dismissed those perjury charges, ruling that prosecutors violated Dixon's "legislative immunity" by using her votes as evidence.
Prosecutors presented Dixon's votes to the grand jury as evidence that she knew Lipscomb was doing business with the city, which would trigger the need for her to disclose gifts from him.
Now, some observers believe, if prosecutors try to re-indict Dixon, they could use Lipscomb's testimony rather than her votes.
"My guess is the prosecutor has figured out that there are other ways to get an indictment unrelated to the problem," said Byron Warnken, a University of Baltimore law professor.
Sweeney also ruled that legislative immunity protected Holton's votes favoring Lipscomb's project, and he dismissed the bribery charge against the councilwoman.
The plea deal protects from prosecution Lipscomb, his employees at Doracon Contracting Inc., and 23 business entities that he runs. Those include limited liability corporations he created to develop Baltimore properties that have benefited from public financing, including those in the Frankford Estates housing complex, Uplands and Inner Harbor East.
Lipscomb is to be sentenced Oct. 22 for the campaign finance violation, and prosecutors recommend a one-year suspended prison term, a $25,000 fine and 100 hours of community service.
The bribery charge that was dropped is punishable with a two- to 12-year prison sentence and a fine between $100 and $5,000.
Although the agreement was announced Monday, Lipscomb signed the deal on June 11 and Rohrbaugh signed it on June 16.
The court proceedings Monday were supposed to start with jury selection and then opening statements and testimony from witnesses, possibly including several major figures from Baltimore's development community. M.J. "Jay" Brodie, president of Baltimore Development Corp., arrived about 9 a.m. expecting to testify.
