Judge Warner’s fall from the bench could be major milestone

Last week, the Alabama Judicial Inquiry Commission filed a complaint against Montgomery County Family Court Judge Patricia Warner, who had suddenly resigned just months into her second term. The complaint alleges 74 instances of judicial misconduct in a broad array of cases, including at least one involving people that casino owner Milton McGregor would like to keep quiet.

McGregor, along with his team of lobbyists and legislators, are currently standing trial in US Federal District Court on charges of conspiracy, bribery, money laundering and fraud. The trial enters its third week of testimony tomorrow and is expected to last throughout the summer.

What’s notable about Warner’s resignation and indictment by the Judicial Inquiry Commission is that as McGregor’s political influence wanes, he is becoming increasingly unable to wield his power and keep people silent. You may want to note that June 22—the date the Warner story became public—as a potential turning point in the cause of ridding this state of influences that have corrupted its political processes, its financial institutions and possibly even one of its great institutions of higher learning.

Alabamians got a windfall victory earlier this year when long-standing Auburn University Board of Trustees member Bobby Lowder decided not to seek another term on the school’s governing body. The controversial, polarizing control freak had been accused of micromanaging affairs at Auburn, leading the Southern Association of Colleges and Schools (SACS) to place the university on Academic probation—one step away from yanking the school’s accreditation and throwing the state and the higher education system into economic, political and educational turmoil. Two years ago, Lowder saw his financial empire collapse when the once-mighty Colonial BancGroup was thrown into receivership by banking regulators. With the end of his term on the AU Board, the Shakespearean figure’s fall from grace will be nearly complete. Lowder can harm this state’s financial industry no more, and no longer will he operate the levers of power at Auburn University.

McGregor’s case continues to move forward, with the best outcome for all Alabamians becoming all the more likely—his conviction on charges of attempting to corrupt the political process and deny Alabamians the governmental integrity they deserve and expect. Goat Hill will never be completely rid of sleaze and corruption, but having it rid of McGregor’s influence is in the interest of all Alabamians.

Regular readers of this blog will recall that during the legal wrangling over the defense attorneys attempts to compel the government to release certain evidence they planned to use at trial, it became obvious that the Department of Justice had expanded its probe beyond the scope of the original October 2010 indictments in the bingo case. To this day, we still have no idea who or what was the target of that probe, but it was important enough for the government and the Court to keep bookshelves of legal filings, motions and arguments under seal. However, since it was McGregor’s side of the alleged conspiracy that made the most noise over the release of the evidence, it’s no stretch to conclude that he was involved in the expanded probe.

As his and others’ influence wanes, those with knowledge of further shady dealings should feel empowered to speak out; to tell their stories of control, greed and corruption. Regardless of where you fall on the political spectrum; regardless of where you live; regardless of which school carries your allegiance, the need has never been greater to clean this place up and leave our descendants with a better place. One of the most enduring qualities of a free society is that we believe in the rule of law, not the rule of men. When the system is corrupted and too much power is wielded by too few people, we have an innate desire to speak out; to do something about it. To tell the truth.

Removing Warner from the bench has removed yet another means of influence from a once too powerful man. He can’t keep people quiet anymore, and his ability to retaliate against those who do speak out wanes by the day.

As the story of this struggle unfolds, we may one day point to Warner’s resignation and indictment as a key milestone.

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BingoGate: “Let the show begin!”

One of the biggest trials in the history of the state of Alabama is set to begin today, as jury selection kicks off what is expected to be many weeks of testimony, evidence, cross examination, daring aerial acrobatics, amazing animal stunts and of course, the clowns.

Nine defendants, including casino owner, political powerbroker and Auburn booster Milton McGregor, mega-lobbyist and Auburn graduate Robert Geddie and a host of legislators will stand trial on charges of conspiracy, bribery, money laundering and fraud. The prosecution team is led by Justin Shur, one of the Department of Justice’s rising star litigators. Shur’s fingerprints are all over several of the US Attorney’s office’s most prized convictions, including a bribery conviction against former New Orleans Congressman “Dollar” Bill Jefferson and fraud conviction against an Army noncommissioned officer.

It is going to be a circus, but it’s going to have its moments of tense courtroom drama as well.  Here’s a short look at the expected strategies of the “offense” and “defense.”

What the Offense Must Do:

Prove that Milton McGregor and his band of merry lobbyists bribed legislators in a “quid pro quo” arrangement, offering them campaign cash, campaign appearances by country music stars, jobs, polling assistance and other things of value. In exchange, the legislators would support a bill that would place a constitutional amendment on the November 2010 ballot legalizing electronic bingo gambling.

Show, through hours of recorded telephone conversations, that the legislators willingly took the bribes and agreed to the quid pro quo arrangement. The FBI recorded more than 12,000 telephone conversations over approximately one month’s time. They have McGregor, Geddie, Tom Coker, Ronnie Gilley, Jarrod Massey and Jennifer Pouncy all talking to each other and the legislators they’re accused of bribing. The prosecution must show that the accused committed numerous illegal acts in furtherance of the conspiracy, and that in doing so, deprived the people of the state of Alabama of their “honest services” as public officials.

What the Defense Must Do:

Prove that this was “business as usual” in the halls of the State House in Montgomery. Basically, the defense wants the jury to believe that no quid pro quo existed at all. McGregor, Gilley and other politically powerful people and organizations regularly support candidates who support their legislative proposals and overall political goals. Yes, it’s a lot of money. Yes, it looks dirty. But it’s not illegal and it’s been going on since, well, since like forever.

Prove that the recorded phone conversations are nothing more than “business as usual” behind the scenes. The defense believes that many of the transcripts of recordings are exculpatory, meaning that some of the stuff the accused talk about shows there was no criminal intent; that the players were conscious of overstepping the legal boundaries and crossing over to the Dark Side.

The show will go on before a “sold out” audience. National, regional and local media will almost certainly jam every seat in District Judge Myron Thompson’s courtroom. With defense teams representing nine defendants plus the prosecution team, sidebars are going to be courtroom GOLD.  It’s unlikely that there will be room for even a handful of ordinary public citizens, but the perp walks this morning and on the mornings to come over the next several weeks should also be something of a spectator sport.

I won’t be live-blogging the trial. I’ll be relying on media reports and court documents just like everyone else. But if I see something unusual or noteworthy from any of my resources, I’ll be sure and pass it along.

Getcha some popcorn folks, and Let The Show Begin!

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BingoGate: Hearing held on wiretap dismissal appeal

During a May 4, 2011 hearing before US District Judge Myron Thompson, defense lawyers complained that investigators listened to too many calls—some of which had nothing to do with the case at hand. As a result, they say all of the wiretap evidence should be thrown out.

Milton McGregor—casino owner, Colonial Bank board member and prominent Auburn booster—and eleven others were indicted last October on charges of conspiracy, money laundering, bribery and fraud in connection with a failed plan to get a constitutional amendment on the 2010 ballot. The plan, according to investigators, was to bribe legislators with cash and other “things of value” in order to secure their votes.

The bulk of the evidence against the alleged conspirators consists of between 12,000 and 13,000 recorded conversations that the FBI listened to as part of a court-ordered wiretapping. Last month, US Magistrate Judge Wallace Capel recommended that the wiretap evidence be presented at trial.

Defense attorneys filed briefs arguing that Capel’s Report and Recommendations be set aside and yesterday’s hearing was to allow both sides to present oral arguments.

Thompson gave no indication for when he might rule.

Since Capel’s recommendation, fellow casino owner Ronnie Gilley has pleaded guilty and is now cooperating with federal investigators. His testimony could be another key element of the government’s prosecution. He joins lobbyists Jennifer Pouncy and Jarrod Massey as the only three to agree to plea deals in exchange for their cooperation.

The complicated, historic trial is scheduled to begin June 6.

Exit question: Legal analysts tell IBCR that the chances are better than even that one or more additional plea deals will be made before a jury is seated next month. Who’s the first to blink?

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BingoGate: McGilley draws a bead on McGregor

There are many targets of opportunity in the unfolding Alabama bingo corruption case set to go to trial on June 6. But none were bigger than Milton McGregor and Ronald Gilley, the two casino owners and developers who are alleged to have assembled a network of lobbyists and set out to bribe legislators in order to get a constitutional amendment on the 2010 ballot that would have allowed electronic gambling in establishments owned, operated and/or planned by the two.

Now one of the two, Ronald Gilley, has elected to plead guilty to 11 charges in connection with the case and in the “factual basis” for his plea agreement, it’s clear that the two allies are now enemies.

A key statement in that factual basis is the following: “[This factual basis] is a summary, made for the purpose of providing the Court with a factual basis for the defendant's guilty plea to the charges against him. It does not include all of the facts known to the defendant concerning activity in which he engaged.”

In other words, when he takes the stand, Gilley will provide testimony not laid out in public court filings. The defense will have access to his proffers [information he provides to investigators and which the prosecution intends to present at trial], but a great deal of the documentation in this case has gone onto the docket under seal, preventing public access and publication by this site and the news media.

There will be high drama in the courtroom in June.

Milton McGregor is man with a long reputation for influence-peddling when it comes to gambling in the state of Alabama. In fact, he’s known for peddling influence in a host of other money-making opportunities in the state.

He once sat on the board of directors for Colonial BancGroup and served on that board’s Compensation Committee. That’s right, ladies and gentlemen. A man who will stand trial about a month from now—on charges of money laundering, conspiracy and bribery—deliberated on how the employees and executives of the sixth largest bank to fail in American history would be paid. He is also known as a big time contributor to one of the two largest athletic programs in the state—Auburn University.

Gambling. Mortgage and bank fraud. College athletics. If there was money to be made in this state, Milton McGregor probably had a finger in the pie, and all three are currently under investigation. McGregor has been a busy fellow, hasn’t he?

But now, his one-time protégé has apparently turned against him, and the protégé appears to be aiming his testimony squarely at the man who helped finance his Casino Crossings “entertainment extravaganza” and put him on the map of power players in the state. But in an ancillary development, Gilley’s testimony also puts a great deal of pressure on those who worked the “McGregor side” of the two-legged conspiracy. Mssrs. Coker and Geddie are now on the clock. Do they roll on the big guy too, or do they go down with him under the blazing testimony of Gilley, Jarrod Massey and Jennifer Pouncy?

Exit question: Mr. McGregor surely has knowledge of a case or cases unrelated to the bingo case. Perhaps one or more of these represent a bigger prize for a highly politicized Department of Justice, eager to gain convictions on the banking crisis’ old white guys that nearly wrecked our economy from Fall 2007 through Summer 2009.

Wonder who that could be.

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BingoGate: Nice Try, Mr. Espy

You may have seen this news report from earlier today, where Milton McGregor’s lead attorney claims that the government took advantage of defendant Ronald Gilley’s financial status in order to coax a guilty plea out of him.

Clearly, McGregor himself is digging in and preparing for the long haul. He’s got one of the best defense teams in the Southeastern US and to date, they’ve fought tooth and nail at every turn. In fact, most of the other defense attorneys in the case have followed the McGregor team’s lead in filing motions, requesting hearings and making the government’s life difficult.

But this has the scent of desperation on it.

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MONTGOMERY, Ala. (AP) -

An attorney for Milton McGregor, Joe Espy, says he believes the federal government took advantage of Country Crossing developer Ronnie Gilley because he was out of money, in jail and dealing with a sick family member. Espy says McGregor is innocent and looks forward to demonstrating that in a trial beginning June 6.

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While defense counsel’s comments might play well to the press, they don’t hold much water in the real world of the Federal Judiciary, and certainly not in the Middle District of Alabama.

When an attorney agrees to represent a client before that Court and files the documentation of his role as a defense attorney, he is promptly notified by the Court in language that is crystal clear:

Retained criminal defense attorneys are expected to make financial arrangements satisfactory to themselves and sufficient to provide for representation of each defendant until the conclusion of the defendant’s case. Unless this court, within fourteen (14) days after arraignment, is notified in writing of counsel’s withdrawal because of the defendant’s failure to make satisfactory financial arrangements, this court will expect counsel to represent the defendant until the conclusion of the case. Failure of a defendant to pay sums owed for attorney’s fees or failure of counsel to collect a sum sufficient to compensate for all the services usually required of defense counsel will not constitute good cause for withdrawal after said ten-day period has expired.

Every defendant has a right to appeal from any conviction; a convicted defendant’s case is therefore not concluded until his direct appeal is decided. Thus, the further expectation of this court and the United States Court of Appeals for the Eleventh Circuit is that retained counsel, in making satisfactory financial arrangements, will contemplate services to be rendered upon appeal.

If a defendant moves the court to proceed on appeal in forma pauperis and/or for appointment of Criminal Justice Act appellate counsel, retained counsel will be required to disclose in camera (1) the total amount of fees and costs paid, (2) by whom fees and costs were paid, and (3) the costs actually incurred and services actually rendered. Note that matters involving the receipt of fees from a client are not generally privileged, United States v. Sims, 845 F.2d 1564 (11th Cir. 1988); In Re Slaughter, 694 F.2d 1258 (11th Cir. 1982); In Re Grand Jury Proceedings: United States  v. Jones, 517 F.2d 666 (5th Cir. 1975). All information submitted will, of course, be viewed in camera by the court for the purpose of deciding the defendant’s in forma pauperis motion. 

Except in extraordinary, unforeseen circumstances, this policy will be strictly adhered to; such circumstances may be brought to the court’s attention by motion to be relieved of the duty to represent the defendant upon appeal.

Gilley may well be out of money. He may also be under emotional and mental duress, and perhaps those circumstances did indeed lead to him to consider caving and entering a guilty plea. But his attorneys were, have been and still will be duty bound to represent him to the fullest extent of their abilities, and God help any lawyer who shirks that responsibility in business before this Court.

Gilley’s pleading guilty because he doesn’t think he stands a chance of acquittal, he has knowledge of the other defendants’ alleged crimes and the government offered him a deal for his testimony.

It’s not good for McGregor, and his lawyers know it.

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BingoGate: Gilley cops a plea, rolling up one side of the conspiracy

News broke late yesterday afternoon that Country Crossings owner and developer Ronnie Gilley has decided to flip on the remaining defendants in USA vs. McGregor et al. He will appear in a rare, dramatic Good Friday hearing this morning before US Magistrate Judge Wallace Capel and formally enter his guilty plea.

With the agreement, the Department of Justice swiftly moved to have Gilley released from jail and into the custody of the FBI. Gilley is expected to provide Agents with evidence against the remaining defendants and will remain in their custody up to the scheduled trial date of June 6, 2011.

It is a major development in the case and it represents a potentially devastating blow to the nine defendants still remaining.

 

Gilley, along with fellow casino owner Milton McGregor, several lobbyists and lawmakers, had been charged in a multicount indictment last October, alleging fraud, bribery and conspiracy in connection with a gambling bill making its way through the 2010 Alabama legislative session.

In the original indictment and accompanying court filings, the Department of Justice alleged that Gilley, working in close concert with McGregor, conspired to bribe legislators to secure their votes on the bill. Two lobbyists working for Gilley—Jennifer Pouncey and Jarrod Massey—have already pled guilty to their roles in the conspiracy. Gilley’s flip effectively rolls up the Gilley leg of the two-sided conspiracy.

This leaves McGregor and his lobbyists—Tom Coker and Robert Geddie—at the top of the food chain in the case.

With the Court prepared to make its final ruling dismissing the motions to suppress the wiretap evidence, and with Gilley reportedly suffering miserable conditions in the local lockup, a plea deal from him isn’t shocking. In fact, the Court is most likely to dismiss every pretrial motion made by defendants, and it is becoming clear that the prosecution—which nearly bungled this case beyond repair—has seen its greatest moment of peril pass.

This is typically the point where the white flag of surrender goes up.

Exit Question:  The only side of the conspiracy holding fast is the McGregor side. Do we see one or the other of McGregor’s lobbyists blink now? One whole side of the conspiracy has been rolled up and the wiretap evidence will be heard by a jury. If there’s a deal to be had—assuming one has even been offered—who’s the first to take it?

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BingoGate: Gilley to plead guilty?

Via a Tweet from Valorie Lawson, Anchor and reporter for WSFA 12 News in Montgomery, Country Crossings owner Ronald Gilley has decided to plead guilty to charges of bribery and conspiracy.

On air news reports from other media outlets have confirmed that Gilley’s attorneys filed court documents late this afternoon, stating that he will plead guilty and cooperate with federal prosecutors.

Gilley, along with fellow casino owner Milton McGregor, several lobbyists and lawmakers, had been charged in a multicount indictment last October, alleging fraud, bribery and conspiracy in connection with a gambling bill making its way through the 2010 Alabama legislative session.

I’ll have the court documents and more details in a later post.

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BingoGate: Busy week on the docket; much more to come

It’s no real surprise, but darned near every defendant in the upcoming bingo corruption trial are filing objections to Magistrate Judge Wallace Capel’s recommendations that their various pretrial motions be denied, along with appeals to US District Judge Myron Thompson to set aside Capel’s recommendation and rule their way.

The chief target of those motions is of course the wiretaps evidence, which form the foundation of the government’s case against Milton McGregor, Ronnie Gilley, their lobbyists and a handful of legislators they are accused of bribing to support a 2010 constitutional amendment legalizing electronic gambling in the state of Alabama.

This is going to be a long and complex trial. There are ten remaining defendants. Assuming Thompson allows the wiretap evidence to be presented, there are nearly 13,000 recorded conversations. There will be mountains of documentary evidence as well, including emails, tax and bank records, campaign disclosure forms, ad infinitum.

A great number of documents have been filed with the Court under seal, meaning no one but the attorneys and the Court knows their contents. But at some point, most—if not all—of this information will become part of the public record.

And boy, will there be an army of lawyers in the courtroom.

It is by far the biggest trial in the modern history of the state, likely overshadowing the Richard Scrushy trials of a couple of years ago. With November’s historic Republican sweep of the Legislature and every important statewide office, combined with equally historic passage of tougher ethics laws in last year’s legislative special session, this trial will close an ugly chapter in the state’s history.

Alabama residents have long suffered the ill effects of a legislative process so toxically ridden with corruption that it would make a billy goat puke. Those cheering for the prosecution in this case are cheering for some of the highest profile players in that chapter to pay the price for their alleged crimes. Those cheering for the defendants are cheering for a return to days gone by, in which powerful individuals with no accountability unduly influence legislation benefitting them and only them. Whether the verdicts come back guilty or not guilty, that door is closed forever.

There are still some viper pits in Montgomery that are in serious need of cleaning out, and those battles are certainly going to be waged in the months and years ahead. But for now, getcha some popcorn and settle in.  This trial is gonna be doozy.

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BingoGate: Geddie files a motion to compel – what could go wrong?

This can’t be good if you’re cheering for the prosecution team. Bingo defendant Robert Geddie has filed a motion to compel, and unfortunately we don’t know what he’s seeking from the government because—like so many other documents in this case—Geddie’s motion was filed under seal and is not accessible by the public.

Geddie, along with his client Milton McGregor and nine other defendants were indicted last October on charges of conspiracy, bribery, money laundering and fraud in connection with an alleged scheme to bribe Alabama legislators into supporting a proposed constitutional amendment allowing voters to approve gambling in the state.

The feds got wind of the scheme, approached an Alexandria, VA Federal Judge and received permission to tap the phones of some of the players. The bill failed in the Alabama 2010 legislative session and the Bingo 11 were rounded up months later.

Recall that back in December, there were motions filed by defendants Tom Coker, Geddie and Milton McGregor to compel the prosecution to turn over the wiretap binders and other evidence associated with the government’s electronic surveillance last spring.   Those motions led to a flurry of filings, responses and a series of hearings that only concluded earlier this month with US Magistrate Judge verbally lashing the government’s “ridiculous” handling of evidence in the case.

Recall also that the prosecution team also includes Brenda Morris, the career prosecutor who was part of the team that famously botched the Alaska Senator Ted Stevens case. That case turned on guess what? The prosecution’s mishandling of evidence.

Here we are about eight weeks away from jury selection, and the defense is filing another motion to compel. Gee… What could go wrong?

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BingoGate: Judge recommends motions to dismiss be DENIED

This is not the ruling on the wiretap admissibility, so let’s get too excited yet.

In early February, Milton McGregor and Tom Coker both filed motions to dismiss some of the charges against them. Coker wanted Count Ten dismissed, while McGregor wanted both Five and Ten dismissed. Attorneys argued that these charges—related to bribery of public officials—were duplicitous in that they lumped one or more charges of wrongdoing into a single count.

The government, in its response, concurred that the counts were duplicitous and that the proper remedy could be applied during jury instruction. The government also argued that dismissal of the charges was not supported by existing case law and urged the Court to deny the motions.

US Magistrate Judge Wallace Capel sided with the prosecution, and recommended to the District Judge that the counts should stand. District Judges rarely go against such recommendations.

McGregor, Coker and eight other defendants are scheduled to stand trial in June on charges of conspiracy, bribery, money laundering and fraud in an attempt to get legislators’ approval of a bill that would put a constitutional amendment on the ballot legalizing some forms of electronic gaming.

The Court is also expected to rule on defendants’ motion to throw out the wiretaps the prosecution is basing its case on. That’s the big one…

UPDATE: Capel issued a number of recommendations today, as reported by Lance Griffin at the Dothan Eagle.

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BingoGate: Dept of Justice calling in a Big Gun

In USA vs. McGregor et al, the Department of Justice is calling in one of its star prosecutors. Justin V. Shur, Deputy Chief of the DOJ’s Public Integrity Section, has won convictions in a number of very high profile cases, including the case of an Army contracting officer who accepted bribes and other items of value in exchange for awarding lucrative contracts in Iraq, Afghanistan and Kuwait.

Shur filed his notice of appearance with the Court today, and should he take the lead role he will replace Peter Ainsworth, another one of Justice’s big guns. Ainsworth has drawn the ire of the Court on several occasions.

There is still no decision yet from US Magistrate Judge Wallace Capel on the admissibility of the wiretap evidence. Capel concluded hearings on the matter last week. Over the weekend, he advised the parties in the case that he was seeking an order from another District Judge to open certain case files that the parties had cited in their motions and arguments. Those documents—the contents of which no one outside of the Court, the prosecution or the defendants—are being held under seal and an order is needed for Capel to review them. It is not known when that order might be granted or denied.

Watching developments…

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BingoGate: Capel to rule on admissibility of wiretap evidence

A friend of this blog attended the afternoon session of yesterday’s hearing on the admissibility of the wiretap evidence in USA vs. McGregor et al. US Magistrate Judge Wallace Capel presided. The hearing was a continuation of hearings held February 28 through March 3, also before Capel.

Defendants in the case want the wiretap evidence suppressed, arguing that the government exceeded its authority, ignored its own protocols and violated the defendants Constitutional rights. They make an interesting argument that since some of the conversations involved were  privileged and should not have been recorded, all of the evidence is tainted and should not be used at trial. I noted very early in this process that this was the moment of greatest peril in the government's case. I also noted that the prosecution team had a bad apple on board in Brenda Morris, who was part of the team that botched the Ted Stevens prosecution in Alaska, in part by mishandling evidence.

Throughout the process of discovery—in which the prosecution shares the evidence it will use at trial—the defense has complained that the government has not been forthcoming or complete in providing the defense with key materials, chiefly the wiretap evidence.

FBI Agent Doug Carr was the headline of yesterday’s event, undergoing rigorous questioning by defense attorneys regarding procedures and protocols governing how investigators chose which calls to listen to and record, and which calls were deemed privileged and “muted.”

At the end of the hearing, Assistant US Attorney Steve Feaga gave the government's summation, told Judge Capel that the technology used to perform the wiretapping was new, and that some mistakes were made, both in how the conversations were tapped in in the discovery process. However, he vigorously denied that this issues “rise to the level of prejudice” and require suppression.

Our friend at the hearing made note of one key exchange between Judge Capel and Milton McGregor’s attorney, Ben Espy. Capel asked Espy if there were any cases he could cite that would allow him to suppress all the wiretaps because of discovery issues. Espy answered that there were not. This is important because as a Magistrate Judge, Capel is less likely to render a precedent-setting decision. Thus, I’m pretty confident now that Capel will deny the motions to suppress the evidence, citing a lack of precedent for doing so, while also noting the problems related to the new technology and discovery issues and chastising the government for its less than stellar performance in complying with his rulings.

Capel’s ruling could come at anytime, perhaps this afternoon or early next week. But note well that I thought the ruling would have been rendered weeks ago, so there’s that…

The defense is almost certain to appeal, and District Judge Myron Thompson will render his decision before the trial date of June 6.

One thing that shouldn’t have to be cleared up, but needs to be anyway: There is a wacko blogger out there claiming that Magistrate Judge Wallace Capel is not eligible to serve as a Magistrate because he isn’t licensed by the Alabama State Bar.

A US Magistrate Judge is a judicial officer of the District Court and, upon the recommendation of a merit selection committee is appointed by majority vote of the active District Judges of the Court to exercise jurisdiction over matters assigned by statute as well as those delegated by the District Judges.  To suggest that Chief District Judge Mark Fuller or Chief Magistrate Judge Susan Walker would allow an unqualified individual to serve as a Magistrate Judge is laughable. To suggest that District Judge Myron Thompson would allow an ineligible Magistrate to handle important pretrial matters in one of the largest cases before his Court is equally ridiculous.

Exit Question: Don’t the people making this claim have something else to do, like tracking down the Russian mob trying to infiltrate Alabama’s political system, or something?

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BingoGate: Supplemental hearing on motions to suppress wiretaps is under way UPDATE: Halted, UPDATE: Rescheduled. Capel PISSED.

At 9:00 am this morning, US Magistrate Judge Wallace Capel is holding a supplemental hearing on the various motions to suppress the wiretap evidence in USA vs. McGregor et al.

At a hearing last Friday, an exasperated Judge admonished the prosecution over its failure to produce evidence regarding the protocols used by federal agents during the conduct of the electronic surveillance phase of the investigation. The agents tapped the phones of Milton McGregor, Ronald Gilley and others  approximately one year ago.

Those wiretaps produced nearly 13,000 recordings of conversations between McGregor, Gilley, their lobbyists and the legislators they are accused of bribing in a wide ranging conspiracy to gain passage of a constitutional amendment legalizing electronic gambling.

In their motions to suppress the wiretap evidence, the defendants in the case allege that the government exceeded its authority, broke its own rules and violated the constitutional rights of the defendants. As relief, the defendants seek to have all of the wiretaps thrown out.

Should they succeed and should they prevail on appeal, the wiretap recordings and transcripts go into one of those cavernous warehouses, never to be seen or heard ever again. The government’s case will almost certainly disintegrate and the defendants will walk away. Should the Court allow the evidence, the trial will proceed as scheduled on June 6.

Legal analysts providing advice to IBCR expected Capel’s ruling weeks ago, and have expressed the opinion that Capel is carefully considering both the facts and the law.

Updates as they become available.

UPDATE: Capel has halted the hearing because—believe it or not—the government still hasn’t turned over some of the FBI records of wiretaps on the phones of McGregor and Gilley.  Capel indicated the hearing will reconvene later today.

UPDATE II: Capel has rescheduled the hearing until Thursday, angrily chastising the prosecution for failing to comply with his orders. “Those documents better be turned over by the end of the day,” said Capel.

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BingoGate: Sources: Geddie will not plead

The prosecution has failed to persuade BingoGate defendant Robert Geddie to accept a deal for his testimony, according to two independent sources with knowledge of the discussions. It is not known whether a formal offer was made to Geddie, but it is widely believed that the prosecution was keenly interested in getting Geddie or co-defendant Tom Coker to strike a deal.

The two “big fish” in this case are casino owner and political powerbroker Milton McGregor and fellow casino owner Ronald Gilley.  Legal analysts are convinced that Gilley’s defense took a crushing blow when Jarrod Massey decided to cooperate with the government and testify against the Country Crossings owner and developer. Rolling up the other side of the two-sided conspiracy with a deal from Geddie—or Coker—would likely have delivered a similarly damaging blow to McGregor.

As another indication that Geddie will not cooperate with prosecutors in a deal to convict McGregor, Geddie has filed a motion to either sever his case from the other defendants, or in the alternative, join his trial with that of his client, Milton McGregor. If he was considering a plea deal, he wouldn’t be interested in going to trial joined at the hip with the man he could send to federal prison.

It should be noted that Geddie’s lack of cooperation in US vs McGregor et al does not preclude cooperation with prosecutors in any other matters currently under investigation. As is their policy, the FBI will neither confirm nor deny the existence of investigations (unless it’s in their interests to do so).

In other news regarding the case, both Geddie and Coker have filed motions to strike surplusage from the indictment. In plain English, “surplusage” is a term that refers to useless, nonsensical or prejudicial language in a legal document. In this case, the term they are objecting to is “pro-gambling legislation” in reference to the Sweet Home Alabama Act (SB 380). The defendants argue that the indictment’s characterization of the legislation as “pro-gambling” is both inaccurate and prejudicial, and could result in problems seating an impartial jury.

It will be interesting to see the prosecution’s response.

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BingoGate: Coker seeks the identity of… a snitch?

Sure looks like things are moving in the BingoGate case today. A flurry of court filings (eight already, and more likely coming) has kept the clerk’s office busy. One of the more interesting filings comes from Tom Coker, one of the two lobbyists said to be working for Milton McGregor. Coker was the defendant who filed the first motions to compel access to wiretap binders and FD-302 forms documenting witness interviews. Coker and the other defendants obtained the binders on January 18 and the FD-302's were to be delivered today (or earlier).

At some point in the last two weeks or so, Coker filed a motion seeking to compel the government to reveal the identity of someone connected to the case. The government has opposed that request, and today Coker is filing a response to the government’s opposition—all under seal:

 

That this motion has come after the government began producing the wiretap and/or documentary evidence Coker had requested strongly suggests that someone outside the original 11 defendants is on tape, Coker’s defense is concerned about what is being said, and they want to know who that individual is.

So now we have a new question to ponder. Who the hell is it, and what has one of Milton McGregor’s lobbyists so worried?

BingoGate: Court GRANTS McGregor’s request to remove electronic monitoring device UPDATED: False alarm

My sincerest apologies to readers of I Bleed Crimson Red.

Earlier in this space, I reported that the Court had granted McGregor’s request to remove the electronic monitoring device.

That report was in error. Today’s ruling affects Ronald Gilley, not Milton McGregor. I got the document numbers mixed up didn’t realize my error until the blog had been updated.

I regret the SNAFU and will do a better job of Reading for Comprehension.

For the time being, McGregor remains under electronic monitoring and is confined to his residence. Should the Court grant or deny his request to remove the device, I will carefully examine the record and make sure I get it right, next time.

 

 

Five bona fide reasons why BingoGate and AUBurgeddon are probably connected

I’m sure you’ve seen or heard about the MEGATHREAD at www.tidefans.com (link fixed).

Maybe you’ve also seen and heard about the ATPB thread at www.tigerdroppings.com. (UPDATE: Thread restored)

Together, these two forums have combined for thousands of pages, tens of thousands of posts and quite literally millions of page views. If there is ever going to be an entry in Websters for “Going Viral,” right next to the definition would be links to these two URL’s.

It’s also worth noting that loony conspiracy sites like Alex Jones’ Infowars and Dylan Avery’s Loose Change have also generated tons of traffic for their owners by hyping the black helicopterism of global plots to take down the US of A, or something.

One of the things that allows Jones and Avery to perpetuate their loony theories is the narrative that they are “just asking questions.” That sounds legitimate enough, until you realize that as soon as they’re given real answers (by reputable scientists and writers at Popular Mechanics), they dismiss the answers and come up with a whole new set of questions. Much like a video game villain or monster comes back after you mash the RESET button.

So what’s the difference between the black helicopterists at Jones’ and Avery’s sites and the theories spun by the denizens of the MEGATHREAD and ATPB? Aren’t they both wildly speculative and don’t they all describe a plot that’s just too crazy to be true?

There is some stuff out there that stretches the limits of credibility, and some folks have taken speculative reasoning as Gospel truth. That doesn’t mean that there isn’t factual information there, nor does it mean that because it all can’t be true, none of it is.

In truth, some of it is certainly true and it can be documented by court filings, media reports and other credible sources.  Here are five reasons showing that the Auburn recruiting scandal surrounding Cam Newton, the pay-for-play allegations and political corruption in Alabama are all part of the same monster:

1. Milton McGregor’s ties to Auburn University, Colonial Bank and politics in Alabama. It is no secret, nor is it speculation, that the one-time statewide political powerbroker has connections to all three sides of the AUBurgeddon triangle. McGregor and former Colonial CEO Bobby Lowder are tight. Or, they were tight. McGregor sat on Colonial’s Board of Directors. McGregor has given millions to Auburn. McGregor will stand trial for attempting to corrupt the legislative process by conspiring with lobbyists and bribing politicians. He is of course, innocent until proven guilty but the prosecution is confident.
2. The FBI’s interview with John Bond. The FBI does not go on fishing expeditions. They did not just wake up one chilly morning in November and decide to go hassle a former Mississippi State quarterback about possible violation of NCAA recruiting regulations. The FBI doesn’t do NCAA investigations. They do criminal investigations, and during the conduct of those investigations, they only interview witnesses that they believe have legitimate, useful information in developing a criminal case against one or more defendants. Each and every interview with such persons of interest is documented on federal form FD-302.
3. Business relationship between AU Athletic Director Jay Jacobs and indicted co-defendant Robert Geddie. Again, no speculation, no secrets. Auburn graduate Robert Geddie used to head up the lobbying firm Fine-Geddie (along with an Alabama graduate, Joe Fine). As documented by his seminal piece in the Tuskegee News, Paul Davis outlines the relationship between Geddie’s firm and Auburn’s Tigers Unlimited Foundation. TUF paid millions to Geddie’s firm over several years. Current AU Athletic Director Jay Jacobs was TUF’s first president and resigned that post when he was selected as AU’s AD. For the naysayers and skeptics out there, let me lay it out for you: The current athletic director of a major college sports program has a demonstrated business relationship with a man indicted on charges of conspiracy, money laundering and bribery. Like McGregor, Geddie is innocent until proven guilty and deserves his day in court.
4. Bobby Lowder. Duh! If you’re running a improper benefits scam, where’s the money gonna come from? How about the former CEO of the once mighty Colonial BancGroup, who also happens to be a sitting Auburn Board of Trustees member, who chairs the BOT’s finance committee, who has poured millions into the school, who has been fingered by the Southern Association of Colleges and Schools as a micromanager of both academic and athletic affairs at Auburn, who cements alliances with other BOT members through loans and other business relationships, who provided the aircraft in the infamous JetGate scandal? Like I’m telling you something new here, right?
5. Sam Franklin is the Golden Thread, tying it all together. Sam Franklin is a senior partner in the Alabama Powerhouse law firm of Lightfoot Frankin White. Sam Franklin represents Bobby Lowder in the class action lawsuit filed by former Colonial employees. Sam Franklin represents Auburn University in the Cam Newton case, and has represented the school in all NCAA compliance matters, dating back to AU’s most notorious run-in with the NCAA, the Ramsay Tapes Scandal. But on November 30, 2010, Franklin got a new client—Robert Geddie. But Franklin doesn’t practice criminal law, so his hiring as Geddie’s lead counsel in a criminal proceeding is an eyebrow raiser at worst and at best, slam dunk evidence that the cases are all tied together.

We also know that federal investigators are wrapping up an expanded probe that goes beyond the scope of the original documents and, judging from the language in the prosecution’s court filings and statements from BingoGate defense attorneys, there is a likelihood that a new round of indictments is forthcoming. DOJ is notoriously tight-lipped about ongoing investigations and only disclosed the expanded probe’s existence because they had to in order to avoid compromising it and protect the evidence. But going back to the FBI’s interview of John Bond and media reports that the FBI was also exploring ties between McGregor and the Newton recruitment, it is not black helicopterism to suggest that investigators are making their way up I-85.

In their court filings, the prosecution indicated that the picture would become clearer on January 31, 2011. That date is now less than a week away and by this time next week, we should have a much better idea of who, and what comes next.

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BingoGate: Milton McGregor is not “all in,” seeks separate trial

Looks like the east Alabama fambly is breaking up.

Milton McGregor, the casino owner, political powerbroker, former Colonial BancGroup board member and prominent Auburn booster, is seeking to sever his trial with the trials of the other defendants in Alabama’s BingoGate corruption case.

It was all about team unity when the indictments were handed down by a federal grand jury  last October. Everybody was professing innocence and sticking together. In January 2011, not so much. McGregor is not “all in,” so to speak.

Via the Associated Press on The Wire blog at al.com:

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McGregor's lawyers filed court papers Saturday in Montgomery saying he deserves a separate trial because he's ready for trial on the scheduled date of April 4, but most other defendants want a delay.

McGregor's attorney, Joe Espy, also argued that it will be extremely difficult to try 10 people at once and that such a large trial could result in McGregor being unfairly judged based on evidence of what others did.

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Uh huh. That’s a good story, Uncle Miltie, and I’d stick to it.

As regular followers of this story know, the team of federal investigators are nearing the end of an expanded probe that “goes beyond the scope” of the original indictments. You will also recall that two of the original 12 conspirators—Jennifer Pouncey and Jarrod Massey—have both agreed to plead guilty and cooperate with investigators. Pouncey and Massey worked for Country Crossings casino owner Ronnie Gilley, while McGregor employed his own team of lobbyists led by Tom Coker and Robert Geddie.

Recent court filings from Coker to compel the government to disclose the contents of wiretaps and interviews with other defendants and witnesses—especially the interviews with Massey—indicate that there’s some nervousness on the McGregor side of the conspiracy. They want to know exactly  who Massey is fingering and what he’s squealing about.

The longer this plays out, the more the pressure increases for someone on McGregor’s lobbyist team to flip and work out a deal. McGregor’s not pushing for severance and against continuance just because he thinks he has a strong defense. He’s trying to run out the clock before somebody rolls on him.

At any rate, the wiretap binders have already been provided by the prosecution (they were due January 18, scroll down to the update), and the FD-302’s (records of agent interviews with witnesses and other defendants in the case) are due on January 31. This is the approximate date on which the federal government says releasing the materials will no longer jeopardize the expanded probe. Statements like this indicate that a new round of indictments are likely, and absolutely no one but the government knows who or what be ensnared a week or so from now.

As the old saying goes, “the price of poker keeps going up.”

Getcha some popcorn and settle in.  This should be fun.

REMINDER: Don’t forget to keep up with the Timeline.

 

Auburgeddon and BingoGate: Feds closing in on new targets?

About two weeks from today, defense lawyers in the US v. McGregor et al case will get their first look at the unredacted wiretap binders and federal form FD-302’s. The prosecution alleges that these materials comprise compelling evidence that prominent casino owner, Auburn booster and state powerbroker Milton McGregor conspired with business partner Ronnie Gilley to bribe legislators into voting for an electronic gambling bill during the 2010 session of the Alabama Legislature.

Attorneys for Tom Coker, one of two lobbyists employed by McGregor, had asked the court for the unredacted materials late last year. The government didn’t strenuously object to rcomplying, but with one caveat—they could not release the materials until on or about January 31. 

The reason? Since the October 4 indictments and arrests of the McGregor Eleven, the feds had expanded their probe beyond the original scope of the gambling conspiracy indictments, and the contents of the binders and 302s could compromise the expanded investigation, according to court documents filed in the case. The prosecution indicated that the expanded probe would no longer be compromised if release of the wiretap binders and 302s were delayed until January 31.

A lot happened between the October 4 round up and Coker’s December 20 motion to compel access. From the standalone Timeline Page:

November 4, 2010

The ESPN Story breaks. Reporters Pat Forde, Chris Low and Mark Schlabach allege that Cecil Newton approached Mississippi State in a pay for play scheme involving his son, then Blinn Junior College Quarterback Cam Newton.

November 9, 2010

ESPN.com’s Joe Schad files a report, claiming that Mississippi State recruiters confirmed that a pay-for-play plan was discussed during two separate phone conversations. In one, Cam Newton told a MSU representative that he chose Auburn because the “money was too much.”

Sources: FBI becomes involved in the case.

November 11, 2010

In a wide ranging radio interview, Kenny Rogers fingers Cecil Newton as the originator of the pay-for-play scheme.

November 13, 2010

Cecil Newton admits to talking money, per a WSBTV report, but denies that Auburn, Cam or Cam’s mother were aware of his negotiations.

November 16, 2010

John Bond is interviewed by the FBI.

Sources say the FBI is also interested in links between McGregor and pay-for-play at Auburn. McGregor, through his attorney, denied involvement in the pay for play scheme.

On December 17, this blog explored links between defendants in the Alabama corruption scandal and the ongoing investigation into Auburn’s recruitment of Cam Newton. One of the defendants in the corruption trial—Robert Geddie—is a graduate of Auburn University and partner in the lobbying firm of Fine-Geddie. Fine-Geddie has a multimillion dollar relationship with the Auburn University Athletics fundraising organization, Tigers Unlimited Foundation.

Geddie is the other lobbyist hired by McGregor.

  It is also worth noting that current Auburn University Athletic Director Jay Jacobs was President of Tigers Unlimited, and that the foundation has flourished in part due to the financial support of former Colonial BancGroup CEO Bobby Lowder, the mega-Trustee and prominent Auburn booster.

As shown in the viral December 17 post, Sam Franklin—a prominent attorney in the state of Alabama and a partner of the law firm Lightfoot Franklin White—appears on the chop list of court documents filed in motions by the defense in the corruption probe. Franklin is also the chief counsel for Auburn in the NCAA probe, and represents Bobby Lowder in the multimillion dollar class action lawsuit filed by Colonial Bank employees.

This begs the question: Who, or what, is the target of the expanded criminal investigation that according to the prosecution, goes beyond the scope of the original October 4 indictments?

Is the federal government closing in on new criminal conspiracy?

DOJ is famously tight-lipped when it comes to discussing matters currently (or not) under investigation, so it is anybody’s guess as to what they may have uncovered and who the new players may (or may not) be. But isn’t it interesting that three parties to three separate matters—Auburn in the NCAA probe, Geddie in the BingoGate case and Lowder in the class action lawsuit—have all hired the same lawyer?

A lot of these questions could be answered in the next two weeks. But just as dramatically, a lot more questions may be asked.

Getcha some popcorn, sports fans. This one might be headed to over time.

Update: The wiretap binders are due today, January 18. The unredacted 302s are due on January 31.

 

BingoGate: Court orders the release of wiretap binders

In what could be a significant development (jackpot?) in the US v McGregor et al case, aka, “BingoGate,” US Magistrate Judge Wallace Cappel has GRANTED Thomas Coker’s motion to compel the government to produce unredacted wiretap binders and unredacted versions of the 302s. Wiretap binders contain information about the contents of recordings made during authorized and voluntary telephone surveillance. FD-302s are forms used by federal agents during witness interviews. They consist of information provided by the subject in the form of notes taken by agents.

Cappel gave the government until January 31, 2011 to produce the material. If two of the defendants—Massey and his former boss Ronnie Gilley—wish to assert privilege and redact portions of the binders, they will have to do so by tomorrow, January 14, 2011. If they fail to assert privilege, the binders will be released to the remaining defendants for their review.

The defendants moving the court to compel the release of the materials have complained that not having access to unredacted records hampers their ability to mount an effective defense in the case.

Tom Coker, the defendant whose motion the court granted yesterday, was one of the two lobbyists employed by Milton McGregor. Robert Geddie also worked for McGregor. McGregor’s connections to Auburn University and Auburn Trustee Bobby Lowder have led many to believe that some of the wiretapped conversations may have included discussions of alleged shady dealings at AU.  That belief gained momentum by the revelation last week that federal investigators had expanded their probe beyond the scope of the original US v McGregor et al indictments. It was further strengthened when it was learned that Sam Franklin of Lightfoot, Franklin and White, who represents Auburn in all NCAA compliance matters, is also representing Robert Geddie in the criminal trial and representing Bobby Lowder in ongoing federal bank fraud investigations.

The government has told the court and defense counsel that its expanded probe may be compromised if it released the unredacted materials that Coker requested. However, the government also told the court that this would no longer be the case on or about January 31, 2011.

In other words, between now and January 31, we can expect other significant developments in this case. If investigators are close to concluding their expanded investigation, we might also have some significant developments in brand new criminal cases.

You will stay tuned, won’t you?