Former Lt. Gov. Kottkamp testifies for the prosecution in VR Labs trial
Former Lt. Gov. Jeff Kottkamp spent much of Tuesday on the witness stand in U.S. District Court in Fort Myers, testifying that while he was enthusiastic about the products that VR Labs was developing, he finally quit his job because he was kept in the dark on too many aspects of company operations.
Kottkamp was called as witness in the federal prosecution of VR Labs principals Kay and Robert Gow and their longtime associate, John G. Williams Jr., who are accused of conspiracy and fraud in the use of $4.7 million in Lee County economic development funds.
A longtime political figure in Tallahassee, serving eight years as lieutenant governor after representing Cape Coral in the Legislature, Kottkamp's testimony was a stroll on a political tightrope.
His statements included expressions of belief that VR Labs health products were based on solid science and were a "game changer" in the health food industry and said he continues to believe in the science behind the products.
The general idea of the VR Labs products was offering remedies for different ailments, based on the properties of material extracted from a variety of plants.
Previous coverage:Contractor testifies about his troubles when VR Labs failed to produce promised jobs
Kottkamp's testimony about his interactions as an employee of the Gows was far less laudatory and optimistic.
The Gows never gave him information about finances, or how much employees were paid. The CEO title was in name only, he said.
"My primary job was to be the face of the company," Kottkamp said. "I didn't make any decisions in day-to-day operations."
During Kottkamp's 14 months on the job, VR Labs stopped paying contractor Robert Brown's GCM Contracting Solutions for work.
Brown pulled off the job and slapped a lien on VR Labs' plant, which would attach to any property, such as a bottling line, placed in the building. He also sued VR Labs for the money owed.
"The most glaring example of keeping me in the dark was not being told about the problems with the contract with GCM," Kottkamp said under questioning by a federal prosecutor. "I was not included in discussions on the bottling plant. I did not know about the problems with the construction contract."
After a News-Press story in 2012 raised questions about VR Labs and its handling of the county grant, Kottkamp joined the Gows in questioning the accuracy of the report.
"We had a dispute with a contractor, we did not need bad press," Kottkamp said. "I said 'this will be viewed as a speed bump.'"
In the first part of 2012, Kottkamp said, he was told to concentrate on finding more investors, a directive he said was confusing because he thought the county grant provided funds to build out the plant.
Under cross-examination by the Gows attorney, John Fitzgibbons of Tampa, Kottkamp detailed a series of $125,000 contributions from friends, totaling a half-million dollars.
The investments were through a financial company the Gows established in 1998 and called Chase Morgan, which reads like a reverse of the name of J.P. Morgan Chase, the New York financial giant.
Kottkamp testified that he did not know whether the Gows were being paid by VR Labs, and said that he assumed that they were putting money into the company from personal wealth.
There were efforts to meet with chain store executives to get shelf space at stores such as CVS, Trader Joe's and Rite Aid.
Kottkamp got the Gows and their science team a meeting at the University of Florida with an idea to create the next Gatorade.
UF had made hundreds of millions of dollars in licensing fees on Gatorade, the sports drink invented at the school. The licensing arrangement had run out, and Robert Gow thought a potential product he called "Greater Gator" would be a good substitute.
It would combine the hydration and electrolyte content of traditional Gatorade with an anti-inflammatory that was touted as a way for athletes to continue to play after suffering an injury.
The state university was not interested.
More:VR Labs trial: Former Lee commissioner Tammy Hall's intervention in scandal aired at trial
More:VR Labs scandal: Accused deny stealing 'millions' in Lee County incentive funds
Kottkamp said he stuck it out for more than a year before deciding to leave, continuing to work because he thought his own investment in the company, part of his original compensation deal, would pay off.
"The combination of things was too much, I was not being paid to be dealing with this aggravation," Kottkamp said. "I wanted to walk out, but I stayed and did everything I could."
When he left, the company had missed five out of six monthly payments due Kottkamp.
"I had deep concerns. My law firm had cut my pay in half ... because I spent all my time down here," he said.
Also testifying was former FBI agent John Kufta, who interviewed Williams three times about his work to install a bottling line for VR Labs.
Kufta said Williams admitted that he "had never been involved in the bottling business in his life."
He also recounted that Williams told him that the software program that drastically increased the payments to VR Labs from Lee County existed only in his son's head.
Under aggressive cross-examination by Williams' attorney, Kutfa admitted he had never traced bank records to see if payments he reported that Williams had told him about had ever been made.
Trial continues on Wednesday with the prosecution coming close to the end of its witness list.
Both defense lawyers will have to decide whether they need to put on a formal defense after hearing the prosecution's case or to rest and tell the jury the case just had not been made.
More:VR Labs trial to open in Fort Myers with jury selection
More:Prosecutors won't put convicted ex-commissioner on witness stand in VR Labs trial
More: Whistle-blower lobs charges at VR Labs
Connect with this reporter at bsmith@news-press.com