By Richard Weizel
NEW HAVEN, Conn. (Reuters) - Former Connecticut Governor John Rowland, who was sentenced to two and a half years in prison for violating U.S. campaign laws in 2012, will be allowed to remain free on a $250,000 bond while he appeals his conviction, a federal judge ruled on Thursday.
Rowland, a Republican, was convicted last September for election fraud, conspiracy and obstruction of justice for taking payments from a business owned by the husband of a candidate he advised.
U.S. District Judge Janet Bond Arterton, who presided over Rowland's trial, had ordered him to report to a federal New York prison in June, but ruled on Thursday that he can remain free while appealing.
She said Rowland's appeal lawyers had raised a "substantial" appellate issue that could cause his indictment to be reversed or require a new trial.
"While not all of Defendant's arguments present substantial issues on appeal, some issues he advances are 'fairly debatable'," Arterton said in the ruling.
The U.S. Attorney's Office objected to Rowland's bail motion, arguing he "failed to satisfy the high standard" to qualify for an appellate bond.
Prosecutors convinced a jury that Rowland's employment as a consultant for nursing homes owned by failed congressional candidate Lisa Wilson-Foley husband, Brian Foley, was a sham. They argued he was actually directing her campaign, not just volunteering as he claimed.
Rowland's attorneys argued in their appeal that prosecutors suppressed key evidence involving the contract between Rowland and Brian Foley, which they say was for legitimate work at the Apple (NASDAQ:AAPL) Rehab nursing home chain.
His sentencing came exactly 10 years after he was sentenced to roughly a year in prison for accepting illegal gifts while he was governor, charges that led to his resignation during his third term in office in 2004.