One couple's encounter with corrupt judges, slimy lawyers, and incompetent prosecutors in Alabama. . . and how you can avoid being cheated by the vermin who make a mockery of our justice system.
You want to mess with me?
The legal schnauzer will scale all obstacles in pursuit of truth and justice
Have bachelor's degree in journalism (U of Missouri, 1978)
Worked 11 years for daily newspaper. Worked 18 years as university editor.
Married, no kids, two cats
We have many fond memories of Murphy Abigail Shuler (1993-2004), our wonderful miniature schnauzer who inspired this blog.
In fact, we never drive by Caldwell Mill Animal Clinic in Birmingham without thinking about how much Murphy loved going to the vet. We're told that many dogs put up a major fuss about going to the doctor. But Murphy wasn't that way.
Actually, Murphy loved anything that involved a car ride. But even after she realized we were going to the vet, she always seemed delighted to be there. And she was crazy about Dr. Bill Christenberry, her "primary-care physician," and the other doctors and staff at Caldwell Mill.
Dr. Christenberry often commented on what a good patient Murphy was. (The same cannot be said for our current pets, the brother-sister Tonkinese cat duo of Baxter and Chloe. They do major whining and shedding of fur when they are headed to, and at, the vet.)
No matter what poking or probing needed to be done, Murphy took it in stride. The happy expression on her face only changed when it was time to take her temperature--with a rectal thermometer.
Even then, she didn't take it badly. Her expression went from "Gee, isn't it great to be here" to "Oooh, that's cold--and it's in my butt."
It's been five-plus years since Murphy died, on her 11th birthday. A day never passes without us thinking of her. Sometimes, the memories will bring tears to our eyes. But mostly they make us smile--or even laugh out loud. Murphy had a wonderful, playful spirit, and she seemed to take special delight in doing things that we found funny.
So we could not help but think of Murphy--and her experiences with rectal thermometers--when we saw this recent post at icanhascheezburger.com:
Fortune Magazine's recent profile of Bobby Lowder, CEO of Colonial Bancgroup and long-time trustee at Auburn University, is the best piece of business journalism we've read in a long time.
"The Man Behind 2009's Biggest Bank Bust," by senior editor Brian O'Keefe, is filled with incisive reporting, splendid writing, and substantial insight on the fall of a regional banking powerhouse.
But it left us with this question: Will the nation's business press ever scrutinize the activities of Lowder's cross-state counterpart, Greene Group Inc. CEO and University of Alabama trustee Paul W. Bryant Jr.? Lowder is on the precipice of criminal charges, but Bryant already has been there--and his activities received pretty much zero press coverage.
Lowder's problems are serious and could get worse. As O'Keefe writes:
The seizure of Colonial's roughly 350 branches and $26 billion in assets--the bulk of which were then handed over to BB&T (BBT, Fortune 500) of North Carolina--made it the sixth-biggest bank failure in U.S. history, the worst this year, and the third largest since the beginning of the credit crisis that plunged the markets into turmoil in 2008. (Only Washington Mutual and IndyMac, which went under last year, were bigger.). . .
As Colonial's largest shareholder, with some 8 million shares, Lowder personally lost $164 million on paper during the stock's plunge from its 2006 high to its delisting from the New York Stock Exchange in August. To many of his enemies it's more than a little ironic that Lowder (pronounced "louder") has retained his role overseeing Auburn's finances. . . .
As much as Lowder has already lost, he could still lose much more. A slew of class-action suits have been filed by both Colonial shareholders and former employees that charge Colonial with reckless and dishonest conduct and name Lowder as a primary defendant.
Lowder's woes could dip into criminal territory. Reports O'Keefe:
Perhaps most worrying for Lowder is an investigation by the FBI and the Office of the Special Inspector General for the Troubled Asset Relief Program into Colonial's so-called warehouse-lending business.
Colonial applied for $550 million in TARP funds last fall but was never cleared to receive a bailout. On Aug. 3, just 11 days before regulators shut down Colonial, agents raided the bank's offices in downtown Orlando, where the warehouse lending was managed, and spent hours carting away boxes of documents.
As the man who signed Colonial's financial statements, Lowder could face civil or even criminal charges if evidence of fraud is found in the bank's TARP application.
It would be grim irony for Lowder if he winds up facing criminal charges for fraud. That's because one of Paul W. Bryant Jr.'s companies was implicated about a decade ago in a massive insurance fraud case in Pennsylvania--one that resulted in a 15-year prison sentence and a $17 million forfeiture for a Philadelphia lawyer named Allen W. Stewart.
Bryant and his company, Alabama Reassurance, came through the episode virtually unscathed. Sources tell Legal Schnauzer that a full-bore investigation of Alabama Re was to commence once the Stewart conviction was secured. In fact, Caryl Privett--then U.S. attorney for the Northern District of Alabama and now a Jefferson County Circuit judge--reportedly had promised investigators that they could go after Alabama Re once the Stewart trial was over.
By then, however, Privett was out of office, and someone in the U.S. Department of Justice called off the Alabama Re investigation. One can only wonder if Bryant's company has forsaken the fraudulent business practices that were revealed in the Stewart trial. One can also wonder who cut Bryant and his company a break--and why.
It probably would be fair to say that Bobby Lowder and Paul W. Bryant Jr. are rivals--perhaps not so much in business, but in the far more important arena of college football in Alabama.
Bryant's father, Paul "Bear" Bryant, was the University of Alabama's Hall of Fame football coach. Bryant Jr. has become one of the strongest financial supporters of the Crimson Tide, which is undefeated this year under current coach, Nick Saban.
Lowder holds a similar status as Auburn's most high-profile football booster. It has been widely reported that neither school makes a major football decision--coaching change, pay raises, stadium expansion, etc.--without consulting Bryant or Lowder.
The Fortune Magazine piece focuses heavily on Lowder's interest in football. Writes O'Keefe:
Not surprisingly given that it's Alabama--where, as they say, "college football isn't life or death; it's more important than that"--Lowder's most high-profile clashes have involved the football program. . . .
From the time he joined the board of trustees, Lowder has shown a special interest in day-to-day operations, chairing an athletics committee of the board that met in private and, insiders say, calling coaches directly to mandate changes. And he has shown that he runs out of patience with football coaches just as he does with bank executives.
O'Keefe goes on to weave a masterful tale about business, banking, power, politics, football, and (perhaps) fraud.
A similar story--maybe even a juicier one--could be told by heading to the western side of the state and focusing on the University of Alabama and Paul Bryant Jr.
Will anyone in the business press tackle that assignment?
The University of Alabama at Birmingham's (UAB) medical residency program at Huntsville has been plagued with allegations of discrimination against international medical graduates (IMGs). At least five IMGs have left the program in recent years after alleging that they had been the victims of discrimination--and three legal cases have been filed.
Now we learn that a central figure in all of the cases has left UAB and taken a position at a medical school in The Bahamas. A source tells Legal Schnauzer that Dr. Allan Wilke has been hired as professor and chairman of the Department of Interpretive Medicine at the Ross University School of Medicine in Freeport, Grand Bahama.
Wilke had been director of UAB's family-medicine residency program in Huntsville. But he was demoted after Dr. Seema Gupta, an IMG from India, filed a lawsuit alleging discrimination, and now he has accepted a position outside the United States.
A federal jury in Birmingham found in late June that UAB discriminated against Dr. Gupta, based on her Hindu religion. Political leaders from India had asked U.S. Senator Richard Shelby (R-AL) in 2006 for assistance with the discrimination problems at UAB--and Shelby apparently took no action.
Dr. Edward Stellmacher, an IMG from Germany, has a pending discrimination lawsuit against UAB. And Dr. Rehan Puri, an IMG from Pakistan, has filed a complaint with the U.S. Department of Labor. Two other IMGs from India had to return to their home country after being dismissed from the UAB program and were not able to take legal action.
The discrimination cases, if taken seriously by federal agencies in the U.S., could have a profound impact on UAB. The university receives more than $400 million a year in federal research dollars. And it receives a major sum every year from Medicare for graduate medical education (GME), such as that administered in Huntsville.
All of that funding is predicated on abiding by federal anti-discrimination laws. And at least one federal jury already has found that UAB has not abided by such laws. Here's how we put it regarding GME funding in a recent post titled "Does Discrimination Case Put UAB's Federal Funding at Risk?
Consider the money at stake just in GME: As we noted above, UAB receives $100,000 per resident per year. It has 36 residents each year at Huntsville, so that means the university receives $3.6 million for that program. But our research indicates UAB has close to 1,000 medical residents total--most of them in Birmingham and Tuscaloosa. If our math is correct, that means UAB receives about $100 million a year for GME.
Dr. Allan Wilke is headed for a position in The Bahamas. But evidence at the Seema Gupta trial indicated that UAB's problems with discrimination against IMGs won't necessarily leave with him. Two other UAB physicians, Dr. Marcia Chesebro and Dr. Melissa Behringer, were implicated in Dr. Gupta's complaint.
And the Gupta trial left this gaping question unanswered: Where on earth were UAB President Carol Garrison, School of Medicine Dean Robert Rich, and Associate Dean Robert Centor when all of this was going on? Apparently they were missing in action, just like Richard Shelby.
UAB has tried to portray the Seema Gupta case as a relatively minor matter, mostly involving the university's failure to provide vegetarian meals at noon seminars. But Dr. Wilke's demotion, his departure for The Bahamas, and other pending legal cases indicate the problems at UAB go way beyond vegetarian lunches.
Consider the money involved in the Gupta case alone. The trial court has found that UAB is liable for roughly $82,000--$2,100 on the verdict, $77,000 for attorney fees, and $2,300 for court costs. UAB is contesting those figures in a mediation before the U.S. 11th Circuit Court of Appeals in Atlanta. But that's where it stands now with the trial court--and that is not the kind of money that most people would consider minor.
Dr. Wilke's unceremonious exit presents some potentially ugly irony. Evidence at the Gupta trial indicated that he has an extensive history of problems dealing with IMGs. And at Ross University in The Bahamas, he will be dealing almost exclusively with IMGs.
Here in Alabama, the question is this: Are UAB's discrimination problems resolved now that Dr. Allan Wilke has moved off shore? Our guess is that the answer is: "Not by a long shot."
Not long after George W. Bush was "elected" president in 2000, he nominated Leura Canary and Alice Martin for U.S. attorney posts in Alabama.
Richard Shelby and Jeff Sessions, Alabama's two Republican U.S. senators, quickly signed off on the appointments, and Canary and Martin went on to become two of the most incompetent and corrupt federal prosecutors in modern American history.
That experience indicates that Shelby and Sessions wouldn't know a good U.S. attorney candidate if one fell on them from out of the sky. So why is the Barack Obama administration allowing the two Alabama senators to block the appointment of a U.S. attorney for the Middle District of Alabama? And why is U.S. Rep. Artur Davis (D-AL) reportedly pushing a candidate who, according to our sources, never should be considered for the post?
Alabama Democrats are getting impatient with the delay. The Middle District is based in Montgomery, which was site of the Don Siegelman political prosecution and could be called Ground Zero for justice-related sleaze during the Bush administration. The U.S. attorney's office in Montgomery desperately needs a tough, competent, independent prosecutor to clean up an enormous mess left by loyal Bushies. But the Obama crowd hardly has distinguished itself with its limp-wristed efforts to fill a critically important position.
At one time, frontrunners for the position appeared to be Michel Nicrosi from Mobile and Joseph Van Heest from Montgomery. But Sessions came up with some lame excuses for opposing Nicrosi, who we hear is the best in-state candidate for the job. And Shelby apparently is opposed to Van Heest. That means the abominable Leura Canary still is in office, more than a year after Obama was elected. And the folks at mainjustice.com are baffled:
The odd thing about the Van Heest nomination is how deferential the White House is apparently being to Shelby. We know the White House doesn’t want any controversy (ie: no senatorial “blue slips” filed against their nominees.) But in Van Heest, the administration has a guy who’s ready to go – and who would replace one of the bête noires of the Left. The George W. Bush White House would have just rolled any Democrats who tried to object to their nominees – and they didn’t have a 60-vote supermajority in 2001.
Could the delay cause Obama to wind up with an unqualified prosecutor in Montgomery? Jill Simpson, an Alabama attorney and key whistleblower in the Siegelman case, says the answer is yes.
According to a recent report at Doc's Political Parlor, Artur Davis now is pushing Montgomery lawyer George Beck for the U.S. attorney spot. And Simpson says Beck has no business being anywhere near such a position.
First, Simpson says Beck works at the firm of Capell & Howard, which has strong ties to the Business Council of Alabama and its president Bill Canary (Leura Canary's husband). Says Simpson:
Mr. Beck works at Capell & Howard, a law firm that represents Leura Canary's husband and the Alabama Business Council--and is the office used by Karl Rove when he holds meetings in Alabama.
Also, Beck represented Nick Bailey, the key witness who apparently was coerced into giving false testimony in the Siegelman case. Says Simpson:
Mr. Beck is the gentleman who represented Nick Baily and let him be questioned 70 times and be bullied by Leura Canary's team of lawyers. And George never saw a conflict here even though his firm represents Mr. Canary who was causing (the Siegelman case to be brought).
According to Simpson, Beck has ties to Stephen Glassroth, a lawyer who had his license suspended for his actions and inactions while representing Simpson in a tax matter. Simpson came away unimpressed with Beck, to put it mildly:
George Beck is the gentlemen who went with the lawyer who ran off with $50,000 on my tax case and told tall tales on me this past year to the Alabama bar. He said I was a drug dealer, a member of the "Dixie Mafia," an arsonist, a tax evader, a baby buyer. He said I could have people seriously hurt. And when asked by the Alabama bar to put this in writing, he refused and bailed on Steve Glassroth, who was then suspended from practicing law for what he did to me.
What will happen in the Middle District of Alabama? That remains unclear. But Jill Simpson clearly does not intend to sit quietly by while Artur Davis pushes George Beck for U.S. attorney. She says Joe Turnham, chair of the Alabama Democratic Party, should examine why Davis is pushing a candidate with ties to Bill Canary and Karl Rove.
Is this about Davis' attempts to gain support from business interests in the 2010 campaign for governor? Simpson has some pretty clear thoughts on that, and she is calling on Democrats to help her stop it:
Please call everyone you know to stop this appointment. I will be fighting it daily, 24/7, because I believe Mr Beck is the wrong guy to clean up the Middle District in Montgomery. Also, I am asking all state Democrats to call Joe Turnham and ask him to bring Artur Davis before the State Democratic Executive Committee and ask him to explain how he can support a guy who was key to wrongfully prosecuting Don Siegelman. If Artur Davis is going to support all of Bill Canary and Karl Rove's picks, shouldn't he be running as a Republican?
For far too long, I have held my tongue, but now is the time to speak up. When I first started in the Siegelman matter, Artur Davis spoke up for us. But then one day, Bill Canary started inviting him to events, and next thing you know, Artur was talking about how wonderful Governor Big Bob Riley is.
Well, my suggestion is Artur Davis needs to switch parties and run for governor as a Republican. After all, they are footing his campaign bills to help destroy the Alabama Democratic Party.
The Democrats of Alabama need to wake up and throw Artur Davis out on his behind. Please tell the White House that we know down here in Alabama that Artur Davis is curled up with the Big Republicans and doing what they ask.
Help me with my campaign to stop Artur Davis from getting George Beck appointed for Bill Canary. The citizens of Alabama deserve a good U.S. attorney. And trust me, George Beck will not be a good U.S. attorney for Alabama. Also, send a message to Artur Davis that we know who is funding him.
One of the advantages of growing up with a big sister is that she helps turn you on to music that you might not have otherwise discovered.
Some of my favorite artists to this day--Elton John, Creedence Clearwater Revival, The Guess Who, Three Dog Night, Cat Stevens, Rod Stewart--I learned about from sorting through my sister's collection of 45s.
(It helps to have an understanding big sister, who doesn't mind a little brother pawing through her stuff.)
One band I can recall my sister telling me about was Poco, which never enjoyed huge chart success but is considered by many experts to be the first true country-rock band--a forerunner to groups like the Eagles, America, Pure Prairie League, and many more.
For some reason, I pulled out a couple of my old Poco albums a few weeks back, and I've been giving them regular spins--yes, we still have records and turntables in SchnauzerLand. I quickly remembered why Poco's music first captivated me (and my sister) 35-plus years ago.
I've got to give my sister credit. She had much better musical taste than I did when we were growing up. Any goofy bands that I like are probably ones I discovered on my own.
Always a bit of a contrarian, I declared (somewhere around 1966) that the Dave Clark Five were better than the Beatles and would be around long after McCartney, Lennon & Co. had been forgotten. My sister adamantly disagreed and said I was a stupid little brother--or words to that effect. We all know how that debate turned out.
(In my defense, the Dave Clark Five were quite cool, and their music has aged well, as you can tell by checking out this Web site. Click on "enter jukebox," and you can treat yourself to all of the DC5's biggest hits, and they had a bunch--maybe not "Hey, Jude" or "Let It Be," but still good stuff. To establish my DC5 bonafides, here's a little trivia: Was Dave Clark the lead singer for the Dave Clark Five? Nope, Dave Clark played the drums. The lead singer was keyboardist Mike Smith.)
As for Poco, they've become like the Triple A farm team of rock and roll--a band perhaps best known for its alumni than anything else. Both Randy Meisner and Timothy B. Schmit left Poco and wound up with the Eagles. Founding father Richie Furay moved on to the Souther Hillman Furay Band. And another founder, Jim Messina, found fame and numerous hits with Loggins & Messina.
But Poco has soldiered on through regular lineup changes, and still tours today behind long-standing members Rusty Young and one-time Alabama resident Paul Cotton. Why has Poco remained an iconic band to many, even though it never achieved massive record sales? I think it's because, since its founding in 1968, Poco has consistently turned out good songs.
As I recall, the song that captured my sister's attention was "Good Feelin to Know," from 1972. If you can get past the really bad '70s hair, here is an outstanding performance of one of Poco's best known tunes:
When it comes to harmonies, the Eagles deserve their reputation as one of the best vocal groups of all time. But Poco was turning out sweet harmonies long before "Take It Easy" hit the airwaves. Here is a 2009 performance of "Keep on Tryin'," an early Poco classic. That's Richie Furay, Rusty Young, Timothy B. Schmit, and Paul Cotton (left to right):
Want a great country-rock tune? It's hard to beat "Rose of Cimarron" from 1976:
Poco did have a few songs that became hits. Here is Rusty Young singing one of the band's biggest sellers, "Crazy Love" from 1978:
Finally, here is "Follow Your Dreams," a Poco nugget from 1989 that should have been a big hit. It's a song with a universal message and lyrics that are well worth pondering:
There are images around us, in everything we see Some are real and some are fantasy To the one who sees his vision, to the child who lives his dreams You're the one to decide what you're gonna be
Chorus: So give it your best, and don't worry about what some may say Follow your dreams, it's really all that you can do Give it your best, and remember that life is what you choose Follow your dreams, and do what you love to do
There are places you'll remember, and times you may recall Faces that refresh your memory May the thoughts that you will picture, help you come to see That you're the one to decide what you're gonna be
So give it your best, and don't worry about what some may say Follow your dreams, it's really all that you can do And give it your best, and remember that life is what you choose Go on, follow your dreams and do it, follow your dreams and do it Follow your dreams, and do what you love to do, what you love to do
Jim Messina wrote "Follow Your Dreams," and that's him on lead vocals. Enjoy.
Alabama Republicans, predictably, have tried to discredit GOP gubernatorial candidate Bill Johnson after his statements late last week that current governor Bob Riley received millions of dollars in campaign funds from Mississippi gambling interests in 2002.
A Riley spokesman said Johnson, a former member of Riley's cabinet, never was involved in campaign fund-raising and therefore could not know about such matters. The chairman of the Alabama Republican Party called Johnson's claims "a joke."
But the Riley defenders forget one inconvenient truth: This story hardly originated with Bill Johnson.
The U.S. Senate Indian Affairs Committee, then chaired by Republican John McCain, reported in 2006 that disgraced GOP lobbyist Jack Abramoff told a tribal leader that Mississippi Choctaws had spent $13 million to help get Riley elected and protect their market by keeping gaming out of Alabama.
Here's how the Associated Press reported it at the time:
The Senate Indian Affairs Committee issued a lengthy report that quotes William Worfel, former vice chairman of the Coushatta Tribe of Louisiana, as saying that Abramoff told him that Mississippi Choctaw Chief Phillip Martin had spent the money "to get the governor of Alabama elected to keep gaming out of Alabama so it wouldn't hurt . . . his market in Mississippi."
In February 2008, Sam Stein of Huffington Post reported that McCain left information out of his committee report that showed how Riley was targeted by Abramoff's influence-peddling scheme. An e-mail exchange between Abramoff and Michael Scanlon, who both have confessed to federal crimes, showed that Riley was to be part of the plan to keep the Poarch Creek Indians from moving forward with a gaming plan in Alabama. Wrote Stein:
An official with the Mississippi Choctaws "definitely wants Riley to shut down the Poarch Creek operation," Abramoff wrote, including his announcing that anyone caught gambling there can't qualify for a state contract or something like that."
You can check out the contents of the e-mail at the end of this post. So it's pretty hard for Alabama Republicans to deny, with a straight face, that Riley received some kind of assistance from the Mississippi Choctaws.
Did the funds come directly to the campaign? Johnson says they did. Could that mean criminal activity was involved and could the allegations against former Democratic Governor Don Siegelman pale in comparison? Scott Horton, legal-affairs contributor for Harper's, addressed those questions in a 2007 post:
Moreover, let’s compare the allegations against Siegelman with Abramoff’s funneling of millions in campaign contributions from Native American tribes in Mississippi into the political coffers of Siegelman’s opponent—Alabama Governor Bob Riley—going on at just this time. In exchange, Riley was expected to intervene to shut down the gambling aspirations of some of his own Alabama constituents. And Riley did just as he was bade to do. Now that’s corruption.
Yep, that is corruption. And Alabama GOPers surely know it. Our guess is that they are ticked at Johnson not because of his message, which they have to know is true, but because of his methods for sending it. Johnson made his statements at a pair of press conferences, one in Montgomery and one in Dothan, and did it in a way that even the somnolent Alabama press could not ignore.
Consider this dismissive comment about Johnson from Alabama GOP chairman Mike Hubbard:
“His role, during both campaigns, was basically to oversee distribution of yard signs, bumper stickers and brochures,” said Hubbard, who lives in Auburn.
Translation: "Dammit Johnson, we've had the lazy Alabama mainstream press snowed for almost eight full years, and you have to go and grab their attention by stating publicly what most any rational citizen knows is true."
If any rational citizen doubts Riley's connections to the Choctaws, Abramoff, and Scanlon, they should check out this e-mail exchange:
Alice Martin, thankfully, no longer is U.S. attorney for the Northern District of Alabama. But The Birmingham News, Alabama's official right-wing propaganda organ, still is sucking up to the George W. Bush appointee.
What's the latest evidence? The News chose to do a piece for Sunday's paper about a local headhunting firm and how it is coping with the economic downturn.
That's a perfectly legitimate story idea. But guess which firm the News just happened to pick. It focused on Wheless Associates Executive Search, the company that recently hired Alice Martin.
The interview, with chairman and CEO Mike Wheless, apparently is not available online. But you can rest assured that the News managed to sneak in a question about our gal Alice. Here it is:
Q. How did you get together with Alice Martin and what role will she play at the firm?
A. I was honored to meet Alice through a mutual acquaintance. After several discussions with Alice about the executive search industry, I extended the invitation and she accepted.
I believe Alice was impressed with the outstanding individuals she met in our firm, the caliber of our clientele, and more importantly, the logic of our business model.
Now let's imagine that Wheless was doing an interview with Legal Schnauzer, not The Birmingham News. How might that interview have gone?
A. Alice is under investigation? She didn't say anything about that during our discussions.
Q. Specifically, attorneys for Huntsville defense contractor Alex Latifi have alleged that Martin and others under her supervision committed criminal acts during a federal investigation of Latifi's company, Axion. Did you take that into consideration before hiring her?
A. Alice . . . criminal acts?
Q. In fact, one of Martin's subordinates, as reported in the ABA Journal, told defense attorneys in the Axion case: "We don't care if Latifi is innocent. Our goal is to put him out of business." Alice Martin apparently sanctioned that kind of behavior. Is that the kind of person who should fit well as an "executive recruiter"?
A. One of Alice's subordinates said what?
Q. Scott Horton, legal-affairs contributor at Harper's magazine and a law professor at Columbia University, has called Martin the most corrupt and crooked public official in the country? Is that the kind of person you want associated with your firm?
A. Alice . . . corrupt . . . crooked?
Q. Did you know that on my blog, Legal Schnauzer, we've presented conclusive evidence that Martin committed a crime, obstruction of justice, while acting as U.S. attorney and covering up unlawful acts by judges and lawyers in Shelby County, Alabama?
A. I think I need a drink . . .
Q. Oh, don't go. We're just getting warmed up. Did you know that conclusive evidence showed that Alice Martin lied under oath in an employment case brought by former assistant U.S. attorney Deirdra Brown-Fleming?
A. Ahhh . . . Ummm . . .
Q. Did you ever wonder why, with all of her contacts and experience in the legal profession, Alice Martin apparently could not get a job in that field to save her life? Could it be because her reputation is dismal? Could it be because it's widely known that Alice Martin was both incompetent and corrupt during her reign as U.S. attorney?
A. You know, I enjoyed my interview with The Birmingham News much more than I'm enjoying this one.
Q. How is it going to look for your firm if it is shown that your prized new employee committed criminal acts?
A. If you will excuse me . . . I definitely need a drink. And I'm not talking about water.
A former member of Bob Riley's cabinet confirmed yesterday that the Alabama governor received millions of dollars in campaign funds from Mississippi gaming interests.
That leaves us with this gaping question: Will the new revelations lead to an investigation of possible criminal actions by Republican Party insiders, including those connected to the prosecution of former Alabama Governor Don Siegelman?
Bill Johnson, a Republican candidate for governor in 2010, said Riley's opposition to electronic bingo in the state probably is driven by the money he received in 2002 from Mississippi Choctaws to limit the expansion of gambling in Alabama.
Riley's connections to gambling have been a major topic here at Legal Schnauzer this week. (See here and here.)
It has been widely reported that Riley received $13 million from the Choctaws, laundered through disgraced GOP lobbyist Jack Abramoff, for the 2002 race against Siegelman, the incumbent. Riley was declared the winner in a tight race when votes for Siegelman mysteriously disappeared overnight in Baldwin County.
Johnson did not confirm the $13-million figure. But he said Riley's support from the Choctaws was substantial. And it was for a specific purpose. Reports the Dothan Eagle:
Contributions, cited in Sen. John McCain’s “Gimme Five” Investigation of Tribal Lobbying Matters, presented to the Committee on Indian Affairs in 2006, were made in an effort to protect the reservation’s market share in the neighboring state.
“I was in the leadership of the 2002 and 2006 Riley for Governor Campaign,” Johnson said Thursday morning during a press conference he called at the Country Crossing development south of Dothan.
“We received money from the Mississippi Indians — millions of dollars.“
Johnson made his statement in Dothan, site of the Country Crossing development that is set to open in December. Riley has vowed not to allow electronic bingo at the site, which is being developed by Ronnie Gilley. Reports the Dothan Eagle:
Johnson concluded with his belief that Riley’s aggressive opposition to the electronic bingo portion of Country Crossing is because of these outside influences in the form of campaign contributions.
How else, he said, can anyone explain the governor’s opposition to the project, the second largest economic development project in the state, according to Dothan Area Chamber of Commerce President Matt Parker.
“I’m concerned that those dollars from Mississippi Indian casino owners are manipulating public policy in Alabama and blocking the efforts of good Alabamians like Ronnie Gilley from creating the very kind of opportunities we need throughout this state,” Johnson said.
The former Birmingham city councilman said Riley’s recent attempt to block the shipment of the 1,703 bingo machines coming to Country Crossing, was part of an effort to “circumvent the law and block a legal development that means opportunity for thousands of people in Southeast Alabama.”
Johnson's statements leave many questions to be answered. Perhaps the biggest question is this: Did members of Riley's campaign team commit crimes in making arrangements for the laundered money--and did the governor himself commit a crime by accepting the funds and then protecting the Choctaws' interests in Alabama, in a possible "quid pro quo" deal?
Perhaps now is a good time to look back at a Scott Horton post, published at Harper's.org in June 2007. Could Johnson's revelations lead to an investigation of Leura Canary, the U.S. attorney who oversaw the Siegelman case? Could such an investigation lead beyond the borders of Alabama, perhaps to Karl Rove? Sure looks that way:
Moreover, let’s compare the allegations against Siegelman with Abramoff’s funneling of millions in campaign contributions from Native American tribes in Mississippi into the political coffers of Siegelman’s opponent—Alabama Governor Bob Riley—going on at just this time. In exchange, Riley was expected to intervene to shut down the gambling aspirations of some of his own Alabama constituents. And Riley did just as he was bade to do. Now that’s corruption. And what did the U.S. Attorney in Montgomery, who brought the case against Siegelman, do about that? Well, she seems to have actually been a potential actor in connection with the corruption, having secured appointment to a licensing board which would control the question. And her tight links to Siegelman’s political nemesis, Riley, are uncontested. She is in fact the wife of one of Karl Rove’s bosom buddies, a leading mover in the Alabama GOP, William Canary.
We reported earlier this week that Bob Riley, Alabama's anti-gambling governor, has close associates with ties to the gaming industry. Now we learn that even members of Riley's family have ties to gambling.
Consider Homewood-based attorney Rob Riley, the governor's son. Documents obtained by Legal Schnauzer indicate that Rob Riley has an extensive background in gaming. In fact, the story of Rob Riley's gambling ties includes all kinds of intriguing entities (Las Vegas, Canada, the Mississippi Choctaws, the Chinese government) and names (convicted felons Michael Scanlon and Jack Abramoff).
How we do we know this? It involves a behind-the-scenes tale about the investigative piece 60 Minutes ran in February 2008 on the Don Siegelman prosecution.
In the weeks leading up to the 60 Minutes piece, it became known that Alabama attorney and GOP whistleblower Jill Simpson was going to play a major role in the story, describing in detail the Republican dirty tricks behind the Siegelman case. Rob Riley apparently wanted to do an on-camera interview for 60 Minutes too, in an effort to counter Simpson's story that the Siegelman prosecution was orchestrated for political reasons by GOP operatives.
In his haste and arrogance, Riley apparently forgot a minor detail: Jill Simpson knows him, and his business dealings, all too well.
Simpson worked up a list of questions that could be asked of Riley about two organizations: an Alabama-based company called Crimsonica and a Virginia-based company called Triad Management Services. The list of questions made their way to a key person at 60 Minutes, and when Riley learned about some of the questions that might be put to him, he suddenly decided that an on-camera interview wasn't such a good idea after all.
Let's focus first on Crimsonica because that is what ties Rob Riley to gambling. The story unfolded in 2002 when a Birmingham businessman named William Cobb "Chip" Hazelrig gave $10,000 to Bob Riley's campaign for governor. The campaign returned the money when it discovered that Hazelrig was a stockholder in Paragon Gaming, which was formed in 2000 to help Indian tribes organize casino gambling on their reservations.
At the time, Bob Riley acted as if he had no clue what Paragon Gaming was about. But he should have known. After all, his son was involved with the company up to his eyeballs.
Let's consider some of Simpson's questions for Rob Riley, which found their way to 60 Minutes:
5. In fact, Mr. Riley, the way Mr. Hazelrig came to make this contribution was through an organization named Crimsonica that you were involved with. Is that not correct?
6. In fact, Mr. Riley, was not your best friend and college roommate, Robert Sigler, the founder of this corporation?
7. Also at the time that your father accepted this money was Mr. Sigler not operating out of your old office and at that time Bob Riley's campaign headquarters, a group called Crimson Group Birmingham, 1806 Oxmoor Road, Birmingham Al 35202 and using your telephone number of 205-970-9866 at your law office? Isn't it a fact Mr. Riley, that you and Mr. Sigler have been operating Crimsonica together since 1985 and isn't it a fact that you did all the legal work helping tribes organize casino gambling and facilities on their reservations on at least four different Indian reservations in the United States and Canada?
Rob Riley did legal work to help tribes establish casino facilities on their reservations? And his dad is Alabama's anti-gambling crusader? Yikes, no wonder Riley Jr. backed out on the 60 Minutes interview.
And that wasn't all Simpson had up her sleeve. Who assisted Rob Riley in his work with Indian tribes? Consider these questions:
12. You used the assistance of Michael Scanlon, your father's former press secretary, and Mr. Abramoff to help you with these Indian tribes, is that correct Mr. Riley?
13. Mr. Riley, after this article ran in the (Anniston) Star, you had your name removed from Crimsonica at the Secretary of State's office in Alabama, is that correct?
14. Did you not then go to Las Vegas, Nevada, and through the Nevada Secretary of State, form several corporations with your friend, Mr. Sigler to again do work for these Indian tribes in organizing gambling on their reservations?
15. You are still an investor today in Paragon Gaming, are you not?
Rob Riley must have broken into a voluminous flop sweat when he saw those questions. Scanlon? Abramoff? Las Vegas?
And Simpson still was not done. She was about to get into some interesting Chinese connections, along with Riley's ties to specific gambling facilities:
16. Mr. Riley do you know Chong Man Lee and was he at one time with the corporation known as the Sextant Group and is he not an investor also with you and Mr. Sigler and others in these casinos? Was he not also an investor at the time Crimsonica was formed?
17. Is John Cahill, the president of Beijing Inc., also a partner with you in this corporation? Do you know where the monies are coming from that he has gotten to specialize in pre-construction management for Paragon and could those monies be coming from the Chinese government PLA?
18. You have had an interest in the management and assisted in the organization and building of the facilities for the following four casinos, have you not Mr. Riley? River Creek Resort and Casino, Eagle River Casino and Travel Plaza, Edgewater Casino and Augustine Casino.
Yep, Bob Riley wants to protect Alabamians from the evils of gambling. It just seems word about that has not filtered down to his son.
We will be examining Rob Riley's connections to Triad Management Services in a future post. But for now, let's take a look at all the questions Jill Simpson posed regarding Crimsonica and gambling:
We've heard about selective prosecutions and political prosecutions under the George W. Bush Department of Justice. But the Alex Latifi case in Alabama can best be described as a "racial prosecution." And that makes it one of the ugliest Bush fiascoes of all.
Latifi, the president of a Huntsville-based defense contracting company called Axion, beat a bogus prosecution that was brought by the feds. But his company was left in tatters, and he and his lawyers now are fighting for justice through a post-trial process that moves at a glacial pace.
As usual, the Alabama press is not helping matters. The Huntsville Times deserves our Most Deceptive Headline Award. And it's just like a major Alabama newspaper to screw up the headline on an extremely important story.
Did a recent headline in The Huntsville Times reflect any of that? Nope. The headline, "Judge Denies Latifi Hearing," hints that an innocent man once again was betrayed by a dysfunctional justice system. Fortunately, the article itself, by reporter Brian Lawson, tells a different story.
Lawson reports that U.S. District Judge Inge Johnson postponed a hearing in the Latifi case because the U.S. 11th Circuit Court of Appeals in Atlanta still is considering Latifi's request that the government pay his attorney fees after it failed to convict him on arms-export charges. The appeals court has ordered a stay in the case until that matter is resolved, so Johnson put her hearing on hold.
But prosecutors hardly are out of the woods. Defense attorneys have alleged criminal misconduct by the prosecution, and the U.S. Office of Professional Responsibility is investigating. Alice Martin, U.S. attorney for the Northern District of Alabama under Bush, directed the Latifi case. Writes Lawson:
The U.S. Attorney's office in Birmingham, which brought the case, has said there was no illegal conduct by prosecutors and even if some evidence was not presented to the defense before the trial, Latifi was not harmed, because he was acquitted.
Latifi asked in his court filing that former U.S. Attorney Alice Martin and Assistant U.S. Attorneys David Estes and Angela Debro be subject to the hearing for possible contempt charges. Latifi said the prosecution did not share evidence proving his innocence with the defense and induced a witness to testify falsely about that same evidence.
Latifi's filing also said Army Criminal Investigation Command investigators David Balwinski and Marcus Mills should also be considered for contempt charges. The command's Chief of Public Affairs Chris Grey said Thursday, "It would be inappropriate for us to comment on any matter before a court or any matter undergoing a legal proceeding."
The case of former Governor Don Siegelman is by far the best known apparent political prosecution in Alabama during the Bush years. But the Latifi case deserves close attention from those who hope to see Bush officials held accountable for turning the DOJ into a political weapon.
The essential charge against Latifi was that he had sent a classified drawing for a Blackhawk-helicopter part to a Chinese company. But the case fell apart almost from the start. Here is how Lynda Edwards, of the ABA Journal, put it:
The trial was potholed with crazy. The government’s key informant was a fired company secretary convicted of stealing from Axion and forging Latifi’s signature. She said on the witness stand she sabotaged Axion records. The judge excluded a top government fraud attorney from court for bizarre conduct. The drawing at issue was marked both “unclassified” and “uncontrolled.” China owns Black Hawk helicopters and can examine the part anytime it wants.
Will Alex Latifi eventually get justice? It's too early to say. But if Attorney General Eric Holder has any interest at all in cleaning up the mess he inherited from the Bush administration, the Latifi case cannot be ignored.
Where do things stand now? Here's how The Huntsville Times puts it, going back to the day that Johnson dismissed the charges at trial:
Johnson later ruled that Latifi should be awarded about $363,000 to cover the costs of his defense and related legal work on the government's efforts to seize his business assets.
In August a three-judge panel of the 11th Circuit reversed Johnson's ruling on the fee award. The panel found Latifi could not be compensated for the costs of criminal defense work by his lawyers under a statute designed for civil cases.
Latifi's lawyers have asked the full 11th Circuit to review that decision.
