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: 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.

 

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?