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MLGW turmoil getting personal - Board member accuses Lee of trying to blackmail him
Memphis Commercial Appeal ^ | 5/3/7 | Michael Erskine

Posted on 05/03/2007 7:46:12 AM PDT by SmithL

Memphis Light, Gas and Water Division board member Nick Clark walked into the grand opening reception Tuesday evening at the Westin Memphis Beale Street Hotel. He was looking for Mayor Willie Herenton.

Clark had something on his mind: the $61,698.50 in personal legal fees MLGW president and CEO Joseph Lee III wanted the public utility to pay.

But instead of Herenton, Clark said he ran into Lee. The MLGW board member said Lee asked him to talk privately ... and then issued what Clark considered to be a threat.

In an interview Wednesday, Clark said he's reported the incident to the FBI, U.S. Atty. David Kustoff and Shelby County Dist. Atty. Gen. Bill Gibbons. He plans to bring it up today at an MLGW board meeting.

At the reception, Clark said, Lee told him: "I know a little secret about you from Ole Miss that you might not want to get out."

"What do you mean?" Clark asked.

Said Lee: "It's about your behavior at Ole Miss."

Clark, who attended Vanderbilt, said he responded by saying his only connection to Ole Miss is that his foster son attended the school years ago.

"This doesn't have any power over me. I don't know what secret you are talking about," Clark said.

"You might just want to keep this in mind in regards to the billing matter," Lee responded, according to Clark.

Clark left the reception, drove a few blocks and began to write up notes in an attempt to reconstruct the conversation.

Lee did not respond to two messages left on his cell phone Wednesday, and an MLGW spokeswoman said she was not aware of the allegations.

Clark, a Memphis real estate investor, said he has no idea what Lee was trying to insinuate. When he visited his foster son at college 15 years ago, he never even got a parking ticket.

"I'm an open book, and I look forward to learning about my past from Joseph," Clark said.

In a letter to Herenton, Clark alleged Wednesday that Lee tried to "blackmail" him and asked the mayor to remove Lee from office.

"While you consider this matter, it is my intent at the 1:30 p.m. board meeting on Thursday (today), to offer to the board different options for their consideration," Clark wrote.

Clark and Lee are both appointees of Herenton.

Herenton could not be reached Wednesday, but has scheduled a press conference at City Hall this morning "to discuss important MLGW issues," said spokesman Toni Holmon-Turner.

Lee has been under intense public criticism for the past three months for his involvement in the handling of City Councilman Edmund Ford's utility bills, which is under federal investigation.

Robert Spence, a former city attorney, billed MLGW for his representation of Lee. MLGW's vice president and general counsel Odell Horton Jr. decided in March that the utility should pay for Lee's personal legal bills regarding the Ford matter. On Wednesday, utility officials said Horton will review the bill and the utility will pay what is deemed appropriate.

MLGW board chairman Rick Masson, Herenton's longtime supporter and former city chief administrative officer, said publicly for the first time Wednesday night he thinks it's best for Lee to step aside.

"This just seems to be a pattern now, and there just seems to be a need for a change at the top," Masson said, quickly adding the board has no authority to remove Lee from office.

"This is a new low and a very unfortunate affair," Masson said. "... To threaten a board member, there's just no excuse for it."

Gibbons confirmed Wednesday he's received a letter from Clark, but said he's "just not at liberty to comment on it."

FBI spokesman George Bolds said he could not confirm whether Clark submitted a statement. "That's not to say he didn't do it," Bolds said.

Kustoff could not be reached.


TOPICS: Crime/Corruption; Extended News; Government; US: Tennessee
KEYWORDS: cultureofcorruption; ford; memphis; mlgw
Lee's been taking lessons from his mentors in the Ford Family.
1 posted on 05/03/2007 7:46:17 AM PDT by SmithL
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To: SmithL

Clark, himself said that he had contacted the FBI.

My guess, that since Clark is a Hereton appointee, as well as Lee, Lee will stay, Clark will have to go!

King Willie


2 posted on 05/03/2007 7:50:57 AM PDT by Coldwater Creek
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To: SmithL
I was wrong Lee has just resigned,
3 posted on 05/03/2007 8:09:44 AM PDT by Coldwater Creek
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To: Coldwater Creek

No kidding?


4 posted on 05/03/2007 8:15:06 AM PDT by SmithL (si vis pacem, para bellum)
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To: Coldwater Creek

Who lives in Mephis anymore? I’ll confess to only having seen the area via “The first 48 hrs” - a show that would lead you to believe that area of Tenn is worse that Compton CA.

Had a former co worker just quit here and more to Tenn.....


5 posted on 05/03/2007 8:18:57 AM PDT by ASOC (Yeah, well, maybe - but can you *prove* it?)
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To: ASOC

It is! Except we have the Fords not Maxine Waters.


6 posted on 05/03/2007 8:37:17 AM PDT by Coldwater Creek
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To: Coldwater Creek
Thanks for the heads-up. I just found the story: MLGW's Lee, Horton resign; Herenton accepts
7 posted on 05/03/2007 9:06:32 AM PDT by SmithL (si vis pacem, para bellum)
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